VP Wayne Mueller Explains the WELS Meltdown

Wayne Mueller, Voted Out of Office Two Years Ago, Then Voted Back In

Information assembled by Vice-President Mueller as of March 2007 COP



Financial Management of Synod Ministry Since 2001

What precipitated the synod’s crisis in ministry support in 2001?

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Sudden loss of $8M per year in foundation support
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9-11 and the subsequent recession
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Much lower than projected bequest gifts for five years
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Drop in enrollment sharply reduced schools’ income
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Below cost of living averages in congregation mission support
Efforts to balance budgets and maintain schools with lowered income

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Three million removed from Home Missions annual budgets
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Lower budgets and enrollments force schools to vacate thirty professorships
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Parish Services annual budgets trimmed in half by $1.5M
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Over twenty World Missionaries returned home ($2M)
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Cost-cutting measures implemented across all areas of ministry
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President’s office staff cut in half; 11 administrative positions eliminated
Measures put in place to set our financial house in order

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Special audit showed no illegal activity in regard to internal borrowing
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New Chief Financial Officer hired
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Independent accounting oversight committee put in place
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New software and processes for gift and budget tracking
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Additional staff hired for finance department
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More detailed special funds reports; new transparency in financial reporting
Conference of Presidents efforts at maintaining offering support for our ministries

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Annual Congregation Mission Offering encouragements
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Stewardship programs through Ministry of Christian Giving/Adult Discipleship
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Advancement offices opened at all schools
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Annual “Walking Together” Sunday started
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Focus of WELS Connection directed to synod budget ministries
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Endowments started for schools and missions
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Faith-Focused Finance seminars on the road
Current proposals to contain costs and effect savings

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Limit cost of living and tenure raises to cost of living
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Higher deductibles, co-pay and contributions for worker health care
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Use unrestricted special funds to pay back internal borrowing loan
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Look at forgiving or delaying loan repayments to ourselves
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Use of replenishable restricted special funds for operating budgets
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Proposal to synod convention to close Michigan Lutheran Seminary
Remaining financial challenges

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All ministries operating at minimum levels
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Lower enrollment has cut deeply into school funding
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Synod support forecast for 07-08 lowered by $1.1M to reflect 1.4% CMO increase
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Synodical Council is proposing closing MLS to meet rising deficits
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A deficit of $2.3M faces 07-08 ministry budgets
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Offerings are not meeting the increased costs of ministry
How may God bless us to maintain our ministries?

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With honest repentance and renewed faith in Jesus
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With thankful hearts that pledge support of congregation and synod
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With specific goals for our personal and congregational offerings