wfn.org | ELCA Bishops Told Expenses Exceed Income Through Mid-Year

[News News <NEWS@ELCA.ORG>]

ELCA NEWS SERVICE

October 15, 2002

ELCA BISHOPS TOLD EXPENSES EXCEED INCOME THROUGH MID-YEAR
02-242-JB

     CHICAGO (ELCA) -- Expenses exceeded income by $5.3 million in
current operating funds for the churchwide organization of the
Evangelical Lutheran Church in America (ELCA) for the first seven months
of the 2002 fiscal year.  Drops in bequest and trust income, investment
income and unit designated gifts are the reasons for the decline in
projected income, said Christina Jackson-Skelton, ELCA treasurer, in a
report to the ELCA Conference of Bishops Oct. 7.
     The ELCA is organized into 65 synods, each headed by a bishop.
The Conference of Bishops is an advisory body to the church, consisting
of the 65 synod bishops, the ELCA presiding bishop and the ELCA
secretary.  The conference met here Oct. 3-8.
     As a result of reductions in income projections, leaders of the
ELCA churchwide organization announced July 17 they would reduce
spending by slightly more than $2.4 million for the remainder of the
fiscal year.  The spending reduction did not result in layoffs, Jackson-
Skelton said.
     For 2002, receipts totaled $43.2 million for Feb. 1 through Aug.
31 compared with $46.5 million for the same period in the previous year,
a decrease of 6.9 percent, Jackson-Skelton said.  Expenses amounted to
$48.6 million, a decrease of $800,000, or 1.8 percent from the same
period last year, she said.
     Through August, Jackson-Skelton said receipts were below budget by
$1.1 million and expenses were below budget by $3.2 million.
     The most significant decrease in income was in bequest and trust
income, down $3.2 million for the first seven months of 2002, compared
to a "very favorable" seven-month period in 2001, Jackson-Skelton said.
     The Rev. Michael J. Neils, bishop of the ELCA Grand Canyon Synod,
Phoenix, asked Jackson-Skelton why bequest and trust income was included
in the church's operating funds.
     Jackson-Skelton explained that the category had been included in
the churchwide budget since the beginning of the ELCA in 1988, and she
said churchwide staff is "looking at what to do in the future" with the
funds.
     Despite declines in other income categories, mission support --
income from congregations through synods to the churchwide organization
-- was $37.4 million, up $300,000 from the previous year, Jackson-
Skelton said.
     Contributions to the ELCA World Hunger Appeal were $6.5 million
through Aug. 31, down slightly from one year ago.  The projected income
for the hunger appeal is $16.5 million for the 2002 fiscal year.
     "It does not seem plausible that we're going to reach $16.5
million this year," Jackson-Skelton said.  For the year hunger appeal
income may be down as much as $500,000, most likely leading to a
reduction in grants from appeal funds, she reported.
     The ELCA Church Council, which meets here Nov. 15-18, is expected
to act on spending authorization proposals for fiscal year 2003.   Unit
spending reductions of about 2.4 percent are expected to be proposed for
2003, due mostly to increases in expenses and not a drop in income,
Jackson-Skelton said.  Spending will increase in 2003 for categories
such as medical, staff, legal  and insurance costs, as well as medical
benefits for retirees, she said.

For information contact:
John Brooks, Director (773) 380-2958 or NEWS@ELCA.ORG
http://listserv.elca.org/archives/elcanews.html