wfn.org | ELCA Bishops Hear Mixed Financial Forecast; More Reductions

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Expected
ELCA NEWS SERVICE

October 9, 2003

ELCA Bishops Hear Mixed Financial Forecast; More Reductions Expected
03-180-JB

     CHICAGO (ELCA) -- Because of lower than expected income for
the first seven months of the church's fiscal year (Feb. 1 to
Aug. 31), overall financial results for the churchwide
organization of the Evangelical Lutheran Church in America (ELCA)
were "disappointing," said the Rev. Charles S. Miller, executive
for administration and executive assistant to the presiding
bishop, ELCA Office of the Presiding Bishop.  Miller made the
comment in a financial report to the ELCA Conference of Bishops,
which met here Oct. 2-6.
     Miller reported on behalf of Christina Jackson-Skelton, ELCA
treasurer, who is on maternity leave.  The ELCA is organized into
65 synods, each headed by a bishop. The ELCA Conference of
Bishops is an advisory body to the church consisting of the
church's 65 synod bishops, ELCA presiding bishop and ELCA
secretary.
      Income from mission support -- contributions from
congregations through synods -- was down $1.6 million and
investment income was off $600,000 compared to the same seven-
month period in 2002.  For the first seven months of this fiscal
year, the ELCA churchwide organization spent $4.8 million more in
current operating funds than it received, Miller reported.
     On the plus side, income from bequests and trusts was up
$900,000 and a grant from Thrivent Financial for Lutherans for
mission congregations added $350,000.
     "While bequest and trust income was favorable to the prior
year, mission support and investment income continue to perform
significantly unfavorable to last year," Miller said, quoting
from Jackson-Skelton's report.	Reductions in income projections
and planned spending are needed, he said.
     This year units of the churchwide organization agreed to
underspend their budgets by $1 million, he said.  Because of the
present financial situation, Miller said an additional $1.5
million in underspending for this fiscal year is needed.  For the
next fiscal year beginning Feb. 1, ELCA leaders must plan for a
$2.8 million reduction in income, compared to an earlier income
projection of $1.8 million less, he said.
     The report comes as the church considers a significant
reorganization plan for the churchwide organization, which, if
enacted, will realign many units and result in a net loss of 22
positions.  Declines in income are also a factor in the
reorganization proposal.  The ELCA Church Council will consider
the reorganization proposal when it meets Nov. 13-16 in
Charlotte, N.C.
     A bright spot in the ELCA's financial situation was
contributions to the ELCA World Hunger Appeal, Miller said.  For
the first seven months of the fiscal year, gifts totaled $6.8
million, including nearly $329,000 in quarters collected at the
ELCA Youth Gathering in Atlanta.  The total is $400,000 ahead of
the 2002 giving for the same period.  ELCA Disaster Response
income was $1.7 million, the report said.

Bishops Air Stewardship Concerns

     Following the treasurer's report, the bishops discussed what
may be driving the income declines.  The Rev. Mark R. Moller-
Gunderson, executive director and coordinator for mission
support, ELCA Division for Congregational Ministries, began by
saying that the church is experiencing "what appears to be an
extraordinary erosion" in mission support funds not seen before
in the ELCA's 15-year history.	 Moller-Gunderson met recently
with stewardship leaders in other U.S. denominations, and all
report similar financial downturns in giving to church
judicatories, he said.
     Several bishops offered opinions on the income declines.
They cited uncertainty and lack of trust in the church, conflict
in congregations, concerns about the outcomes of the ELCA Studies
on Sexuality, more congregational funds being directed to other
ministries outside the ELCA, general organizational mistrust, and
a 30- to 40-year downward trend in giving to institutions such as
churches.
     Some bishops said they are working on the income problem.
"We don't have a money problem," said the Rev. Stephen P. Bouman,
bishop of the ELCA Metropolitan New York Synod.  "We have a
relational problem."  In response, Bouman said he has scheduled
10 lunch meetings with pastors throughout the synod to talk about
stewardship "and to affirm our vision."

For information contact:
John Brooks, Director (773) 380-2958 or news@elca.org
http://www.elca.org/news