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	September 2, 2003 ................. LCMSNews -- No. 97

	Boards seek solutions
	for universities' woes

	Two Synod boards -- the Board of Directors and the Board for
Higher Education/Concordia University System (BHE/CUS) -- have agreed to
explore remedies and solutions for financial difficulties that Synod
colleges and universities are facing.

	At the end of a joint meeting Aug. 13-14 in St. Louis, the two
boards unanimously adopted a statement that says those trends "require
immediate remedy as well as long-term and collaborative solutions ... so
that the Synod can continue to recruit, train and educate pastors and
other church workers, as well as those seeking a Lutheran Christian
education."

	The statement notes that the Synod's 10 colleges and
universities and the CUS national office owe about $203 million in
long-term debt, of which the Synod has guaranteed $133 million.

	As a result, "many of the Synod's institutions struggle to meet
the required payments, and some have been unable to maintain minimum
financial ratios required by BHE/CUS, lenders or loan guarantors. This
is resulting in lenders notifying the Synod and the affected
institutions that loans are in violation of loan covenants, potentially
leading to being in default."

	The Concordia Universities at River Forest, Ill., and Ann Arbor,
Mich., have faced such difficulties.

	"In many ways," the statement says, "our Synod has been blessed
with more assets and income (mostly for designated purposes) than it
ever has before. However, the current financial difficulties of our
Concordia University System require significant changes to address
short-term and long-term needs."

	The statement acknowledges that the two boards "cannot by
themselves resolve all of the difficulties nor reverse the trends.
Nevertheless, these two boards bear the responsibility to lead the Synod
in developing and implementing short- and long-term solutions."

	Speakers throughout the two half-days of the joint meeting
traced the history of funding in the Synod and of its colleges and
seminaries.

	Brad Hewitt, the Synod's chief administrative officer, spoke of
the changing nature of funding in the Synod, from the 1850s, when
virtually all activity was voluntary; through the 1950s, when "people
looked to the national office for funding in the Synod"; and the 1970s,
when fund raising became common and districts were deciding how much of
their income to send to the Synod, and individuals started giving
outside the Synod.

	"We've had a significant increase in giving to congregations
over the years," he said, "but giving to districts has fallen
significantly in the last 20 years."

	"The institutions of the LCMS, including the colleges and
universities, are the envy of most other mainline denominations," Hewitt
said.

	Dr. William F. Meyer, BHE executive director and CUS president,
explained that the $203 million higher-education debt "includes 30 years
of operations and the costs of closing the colleges at Winfield, Kan.,
and Concordia, Mo."

	Meyer spoke of a think tank for higher education in the Synod
that has made a number of recommendations, including one overall board
for colleges and universities and one for the seminaries, instead of the
present arrangement of one BHE/CUS board for both.

	When a speaker suggested developing a 10-year financial plan for
the colleges, Meyer answered, "We don't have the luxury of 10 years, but
probably of two or three."

	"These two boards coming together is a momentous event," said
Dr. Beverly Yahnke, a BHE/CUS board member from Brookfield, Wis. "If
these two boards would speak as one, the church would be relieved.... It
is time for us to move beyond conversation to the best we can do to
ensure that mission and education can continue."

	The two boards set another joint meeting for Feb. 19-21 in St.
Louis.

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

	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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