wfn.org | LCMS - Concordia University River Forest cuts staff faculty

[Worldwide Faith News <wfn@igc.org>]

The Lutheran Church--Missouri Synod
Board for Communication Services

LCMSNews -- No. 18  March 4, 2003

Concordia, River Forest, cuts staff, faculty

By Joe Isenhower Jr.

In efforts to bring expenses in line with revenue, Concordia University, 
River Forest, Ill. (CURF), is making cuts that include reductions this 
academic year of 36 staff and 21 of its 92 full-time faculty positions.

University President George C. Heider said that the latest cuts -- of four 
faculty positions -- came when the university's Board of Regents met in 
mid-February.  Those reductions will be effective Aug. 17.

"We hope that is the extent of faculty and staff reductions for the 
foreseeable future," Heider said, "although we certainly will be looking 
for ways to keeps costs low in the future."

He said that the faculty and staff cuts, from "a combination of early 
retirement offers, resignations, non-renewals and [from CURF's] 
reduction-in-force [policy]," will save Concordia, River Forest, about $2.4 
million in the 2004 fiscal/academic year.

Dr. Alan Klaas, senior vice president for university advancement at River 
Forest, said that the university has about $43 million in debts.  He said 
that includes $25 million in low-interest tax-exempt bonds, $1 million of 
debt for dormitory construction since 1970, and about $17 million in 
short-term funding from the Lutheran Church Extension Fund and the LCMS 
Concordia University System (CUS).

Heider said that other cuts the university is making include:

* $500,000 per year in health-insurance premiums, by shifting the cost of 
health insurance for spouses with the Concordia Health Plan to the workers 
themselves;

* $800,000 per year in part-time staff, student labor and staff benefits; and

* $550,000 annually in operating budget (not counting increases in 
depreciation, insurance premiums and debt payments).

Heider said that total savings from the reductions are $2.36 million for 
fiscal year 2003 and $4.36 million for 2004.

Klaas said that one factor in the debt is that "over the last several 
years, CURF provided about $16 million of unfunded scholarships to church 
worker-preparation students."

Heider said that reduction of synodical subsidy over the years and "excess 
capacity (in terms of both faculty-staff and campus) for the number of 
students" are other factors in the university's financial situation.

"We have very nearly the same number of full-time faculty now with 1,800 
students as we did some years ago with 2,400 students," Heider noted in a 
Jan. 22 letter to the parents of a CURF student.

"We believe that we need to grow by 500-600 students over the next few 
years to be healthy, to make fuller use of the existing campus," Heider said.

He said that the university also "needs to broaden and deepen our base of 
support [and] has been aggressive in our efforts to increase revenues."

Heider said that among efforts toward meeting those needs are:

* a new master of arts program added in January "to allow adults to dig 
into a subject they've always wanted to pursue via a largely self-designed 
master's program";

* undergraduate courses in one- to three-week formats beginning in May, 
"with a focus on mission-based courses";

* a recently-formed "Ambassador Program" with representatives in
congregations;

* a new "Community Campaign" the university has started;

* a new gift-match program made possible by a donor's recent $1 million 
gift; and

* a grant writer funded by CURF foundation-board members "who is putting 
out numerous proposals in the corporate and foundation world."

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LCMSNews is published by the News and Information Division, Board for 
Communication Services, of The Lutheran Church--Missouri Synod.  If you 
have questions or comments about this LCMSNews release, contact Joe 
Isenhower Jr. at joe.isenhower@lcms.org; (314) 996-1231 or Paula Schlueter 
Ross at paula.ross@lcms.org; (314) 996-1230.

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