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Finally a breath of sanity.
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"SC adopts budget proposal
A special message from President Mark Schroeder
The Synodical Council (SC) met last Friday and Saturday to adopt a proposed budget that will be recommended to the synod convention in July.
The WELS constitution requires the SC to submit a budget proposal that is balanced and in line with the anticipated financial support from all sources. A budget that would call for spending greater than anticipated support is not an option. The projected support for the next two years made it necessary for the SC to reduce the synod's ministry program by more than $8 million (from $38.4 million to just under $30 million). As it considered this situation, the SC was very much aware of the painful and difficult choices confronting us. It was clear that significant budgetary reductions in all areas of ministry will be necessary. Recognizing that, the SC made every effort to find ways to limit the size and scope of the reductions that will need to be made.
Some of these reductions will involve the loss of called and hired positions in our mission fields, at our schools, and at the Synod Administration Building. Since the boards and groups that oversee these ministries will be responsible for communicating with the called workers, congregations, and mission fields that will potentially be affected, the budget information in this communication is in summary form only; details will be released in the coming weeks. This will give those responsible the time to speak personally to those that will be affected. Complete financial information will be included in the Book of Reports and Memorials and will also be posted online.
Some of the features of the proposed budget include:
A salary freeze for all synodical workers in the first year of the biennium and a one percent increase on the base salary in the second year.
A re-amortization of the synod's debt (projected by the end of June to be reduced from $22.4 million to $15 million by Year of Jubilee offerings and by budgetary payments toward the debt). Re-amortizing in this way will reduce annual debt payments from $2.7 million per year to $1.6 million per year, making $1.1 million per year immediately available for the support of gospel ministry. The re-amortization payments would begin in the second year of the biennium (2010-11).
Increasing the portion of health care costs paid by workers by changing the plan deductible from $500 to $1,000, resulting in an annual savings of approximately $400,000.
As the budget was constructed, the SC was keenly aware that there are clear differences of opinion in the synod as to which ministry programs should be given priority. As it weighed the many different scenarios, the SC decided to present a budget that offers two options or alternatives. This approach reflects the SC's recognition of the priority preferences expressed by recent conventions, as well as the current economic conditions and other factors which may have changed since then. The SC is also convinced that presenting two options will help to create an atmosphere in which brotherly discussion and debate will be conducted based on the factual information and a careful consideration of the long-term ramifications of any decision.
There is really only one significant difference between the two proposed options. Both options require significant reductions in all areas of ministry. The difference: in Option A, Ministerial Education receives a synodical subsidy allocation of $9.1 million; in Option B it receives $8.1 million. In Option A, World Missions receives $5.9 million and Home Missions receives $5.2 million. In Option B, each mission area is allocated an additional $500,000 in subsidy.
This chart is a comparison of synodical subsidy allocations under the two options. Please note that these figures represent synodical subsidy only and do not include funding from special funds, gifts, or fees.
*Ministry Support includes the President's Office, Conference of Presidents, district ministries, Synodical Council, special called worker support, Ministry of Christian Giving, Finance, Technology, Human Resources, Communications, and facilities.
The specific impact of these allocations under both options will be described more fully in the coming days after the areas of ministry have had an opportunity to revisit their plans and priorities. Regardless of the specific decisions they make, under both options above significant numbers of missionary positions, mission locations, faculty and staff positions at schools, and administrative positions will no longer be able to be funded.
Because of the size and scope of the reductions in ministry programs, steps to reduce ministry will need to be taken immediately. In fact, some have been taken already, as vacant positions have not been filled and various programs have been scaled back. In cases where reductions cannot be made until after the new fiscal year begins in July, transition funding has been included in the 2009-10 budget proposal.
As the picture becomes clearer and as the time approaches for final decisions to be made at the synod convention, we recognize the need for continued faith and trust in God's promises. We will need to maintain our trust that even in these painful and difficult decisions God will graciously work to bless his church. And we will want to conduct our discussion and debate with the prayer that God will use this situation to unify us in our common mission for the good of his kingdom.
Serving in Christ,
Mark Schroeder"
