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	February 13, 2004 .................... LCMSNews -- No. 12

	Council of Presidents, Board of Directors
	discuss issues of mutual concern

	By David L. Mahsman

	The Synod's Board of Directors and Council of Presidents (COP)
had plenty to talk about when they met in St. Louis Feb. 6 and 7.

	Each group had asked independently to meet with the other. The
agenda included such high-profile issues as the Synod's finances,
including proposals for funding national and international work;
synodical higher education; Board resolutions that said eight opinions
of the Commission on Constitutional Matters (CCM) are "of no effect";
and outside legal opinions on the Board's authority obtained last year
by the Board.

	By the time the meeting ended, the Synod's chief financial
officer, Thomas Kuchta, said he would gather more financial information
from the Synod's 35 districts before the Board proceeds with work on a
funding plan. And the chairmen of the Board and CCM each agreed to ask
their respective panels to reconsider some of their actions.

	Financial issues

	The first day of the meeting was largely given over to financial
issues. Board of Directors Chairman Robert Kuhn introduced the topic,
saying that there is "a crisis in the Synod as far as funding the
national body and ... the work we do together."

	Kuhn and COP Chairman C. William Hoesman co-chaired the meeting.

	Thomas Kuchta, the Synod's vice president-finance/treasurer,
presented a paper on financial issues, including five proposals that
have been made for funding national Synod ministries such as missions
and higher education.

	"The church must decide whether it should continue to administer
national ministries in a centralized manner under the control and
direction of Synod," Kuchta said in his paper. "If it is decided to
continue with the present structure, it will be necessary for the church
to determine the method for funding these ministries."

	Kuchta said that since 1971, district contributions to the
national budget have declined slightly, but inflation exceeded 345
percent. He noted that LCMS World Mission has had to reduce its budget
from $32 million to $26 million in recent years, cutting the number of
career missionaries from 100 to 68 and staff in St. Louis from 68 to 34.
He added that direct subsidies for the Synod's colleges and seminaries
have dropped from $10 million to zero between 1992 and 2001.

	(The meeting's agenda included a separate discussion of
higher-education issues. During that discussion, Dr. William Meyer,
executive director of the Board for Higher Education and president of
the Concordia University System, said some of the Synod's colleges and
universities have been facing difficult fiscal challenges in recent
years. He added, though, that the situation has improved markedly.)

	A number of district presidents told Kuchta that focusing only
on unrestricted income -- funds that flow largely from congregations
through the districts to the national budget -- presents an inaccurate
picture of congregation and district support for national ministries.

	Ohio District President Ronald Bergen, for example, indicated
that the $367,290 in unrestricted giving to the national Synod for
fiscal year 2002 is only part of the story. He said that direct cash
gifts from district congregations, organizations and individuals to
national ministries totaled $467,535; that expenses "transferred" to the
district from the Synod cost $161,636; and that deferred gifts that year
were $497,497. The actual total raised by the Ohio District for national
ministries, Bergen said, was $1,493,958.

	Later in the meeting, Kuchta said he will contact each district
for more complete financial information. He said that he will present
the Board of Directors a revised analysis, which he said "will show that
the districts give a significant amount to the Synod."

	Kuhn told the gathering that "nothing is set in concrete," as
far as plans for funding national ministries are concerned. He said the
Board may not be able to develop an acceptable funding plan in time for
consideration at this summer's Synod convention.

	Several district presidents indicated their support for national
ministries and urged that more attention be paid to stewardship
education. Kuhn later told Reporter, "Because stewardship education is
carried out in the congregation, it's not something that the national
Synod can determine."

	North Dakota District President Larry Harvala said the
discussion showed that $1.2 billion was given to LCMS congregations in
fiscal 2002 for mission and ministry, "but only $23 million had to go
through the Board of Directors." He made a similar comment about giving
to higher education -- $217 million was given for that purpose, but only
$8.2 million of that went through the national budget.

	But because those amounts weren't enough, Harvala said, "we need
to raise both of those numbers," the total given and the amount
available to the Board of Directors as it sets the national budget.

	"I give thanks to God for the generous financial gifts of the
people, congregations and districts of the Synod, designated and
undesignated, given to the glory of God for the building of His kingdom
through The Lutheran Church--Missouri Synod," Synod President Gerald
Kieschnick said after the meeting.

	"I recognize the challenges faced by national Synod,
particularly in providing the fiscal resources required for faithful
Gospel witness in world mission, training of pastors and teachers, and
human care," Kieschnick continued. "I pray for God's blessings upon our
efforts as leaders of the Synod to address the issues and challenges
ahead, mindful of our imperfection and thankful for his mercy and
forgiveness."

	CCM and Board authority

	The second day of the meeting focused on two issues regarding
the authority of the Board of Directors: two resolutions adopted by the
Board in November that say eight opinions of the CCM are "of no effect,"
and outside legal opinions that the Board obtained last year that deal
with the Board's authority under Missouri law.

	At the end of the day, Kuhn said that the Board will reconsider
its two resolutions regarding the CCM opinions. At the same time, CCM
Chairman Walter Tesch said that the CCM would "take another look" at the
eight opinions -- five define limits to the authority of the Board of
Directors, three deal with "ecclesiastical supervision," all of which
Board spokesmen have said create legal liability issues for the Synod.

	The announcements from Kuhn and Tesch were greeted with
applause.

	After the meeting, Kuhn and Tesch issued a joint statement
regarding their intentions:

	"The chairman of the Commission on Constitutional Matters (CCM)
attended the second day of the meeting, during which discussion took
place regarding decisions of the CCM which the Board of Directors (BOD)
believes to be contrary to the laws of the State of Missouri," they
wrote. "The BOD will review its recent actions which declared such
opinions of no effect. The CCM will again revisit those opinions
questioned by the BOD, taking into consideration the material presented
at the meeting by the BOD as well as any actions coming from the next
meeting of the BOD."

	The Board next meets Feb. 18-21.

	Board member Christian Preus earlier presented a paper outlining
the Board's rationale for its resolutions on the eight CCM opinions,
which Board spokesmen have said create legal liability issues for the
Synod.

	Preus said the opinions do not simply interpret the Synod's
Constitution and Bylaws but "establish new rules or limitations." He
added that they also conflict with Missouri law concerning the authority
of a corporate board of directors. As a result, the eight opinions are
of no effect, he said.

	Preus also presented a paper explaining the background
surrounding the legal opinions obtained by the Board last year regarding
its authority under Missouri law. He outlined two primary reasons for
obtaining the opinions: "(1) To determine what authority the BOD does
and does not have so that the financial problems facing the Synod can be
addressed in the proper fashion and any plan implemented to address and
correct the financial problems can be adopted properly; and (2) to
ensure that the BOD is acting within its authority in those situations
where others are challenging the authority of the BOD."

	"It is important that the Synod and all its entities recognize
the importance of complying with civil law," Preus said. "The BOD has a
fiduciary duty to understand and honor civil law in order to protect the
interests of the Synod."

	The topics covered by the two papers generated considerable
discussion.

	Tesch told the gathering that the CCM interprets the
Constitution, Bylaws and resolutions of the Synod, not Missouri law or
the Synod's Articles of Incorporation. He said that if the Synod
disagrees with any of the CCM's opinions, it can say so at convention.
He said that there is no conflict between the Board of Directors and
CCM, "but between the Board of Directors and the Constitution and Bylaws
of the Synod."

	Vice President Kuchta, who is serving as interim chief
administrative officer for the Synod, said that issues related to
conflicts between the CCM opinions and the legal opinions on the Board's
authority have been given to the Commission on Structure for study and
possible recommendations to this summer's Synod convention. He said that
the Bryan Cave law firm of St. Louis, which provided the first opinion
on the Board's authority, has advised the structure commission "how to
fix the problem."

	President Kieschnick told Reporter after the meeting that he
understands the Board's concerns for protecting the Synod's assets and
its members from legal liability, but he said that he also is concerned
about Board resolutions that appear to be in conflict with the Synod's
Constitution and Bylaws.

	"I will continue to work pastorally and evangelically to resolve
this apparent conflict," Kieschnick said, "while carrying out my duty to
see to it that all officers, including the Board of Directors, 'act in
accordance with the Synod's Constitution, to admonish all who in any way
depart from it, and, if such admonition is not heeded, to report such
cases to the Synod,' as the Constitution says."

	****************************************

	If you have questions or comments about this LCMSNews release,
contact Joe Isenhower Jr. at joe.isenhower@lcms.org or (314) 996-1231,
or Paula Schlueter Ross at paula.ross@lcms.org or (314) 996-1230.

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