ELCA Assembly Receives Financial Status of The Church

ORLANDO, Fla. (ELCA) -- If members of the Evangelical
Lutheran Church in America (ELCA) seek to maintain balanced
budgets, they must continue to increase revenue and identify new
opportunities for "cost containment," Christina Jackson-Skelton,
treasurer of the ELCA, told voting members of the 2005 ELCA
Churchwide Assembly.
The churchwide assembly, the chief legislative authority of
the ELCA, is meeting here Aug. 8-14 at the World Center Marriott
and Convention Center. About 2,300 people are participating,
including 1,018 ELCA voting members. The theme for the biennial
assembly is "Marked with the Cross of Christ Forever."
In her report to the assembly, Jackson-Skelton said revenue
available for current operations in the church is $81.3 million -
- a $500,000 increase from the previous fiscal year.
"Operating expenses of approximately $76.8 million in 2004
reflect a decrease of $3.5 million from 2003. These expenses
were favorable to the operating budget in both years," she said.
"Revenue minus expense before non-budgeted items resulted in
a surplus of approximately $500,000 in 2003 and $4.5 million in
2004. Net revenue in excess of expense -- the bottom line -- is
important to us financially because it builds cash reserves and
gives us the flexibility to support new mission opportunities and
to meet needs not anticipated or included in the normal operating
budget, as well as encouraging careful budget planning and
spending," Jackson-Skelton said.
Favorable operating results in 2004 allowed the Church
Council -- the ELCA's board of directors and legislative
authority of the church between churchwide assemblies -- earlier
this year to approve core mission proposals from the Rev. Mark S.
Hanson, presiding bishop of the ELCA. Over a two-year period, a
total of $4.5 million will support leadership development; the
introduction of new primary worship resources; new congregational
development and renewal; ministry among people living in poverty;
and a churchwide strategy for engagement in Israel and Palestine.
Taking a closer look at revenue, Jackson-Skelton said
mission support -- unrestricted income from congregations through
the 65 synods of the ELCA to the churchwide organization --
declined from $66.4 million in 2003 to $65.6 million in 2004, a
decrease of $800,000. She said declining mission support is a
"growing concern" for the ELCA churchwide organization.
"This was the fourth consecutive year of flat or decreased
mission support dollars, following six consecutive years of
increases," Jackson-Skelton said.
"At the same time, operating costs will continue to
increase, and further significant reductions in infrastructure
will be more difficult to identify, resulting in the need to cut
churchwide programs and support, and reduce operations, including
staff. Rising health costs continue to have a significant impact
on the budgets of congregations, synods and the churchwide
organization," she said.
Mission support represents about 81 percent of current
revenue available for current expenses in 2004, she said. Other
sources of major revenue include missionary sponsorship; bequest
and trust income; endowment income; the Mission Investment Fund;
the Vision for Mission appeal; and fraternal grants.
Not part of the ELCA's current operating revenue and expense
are contributions to the ELCA World Hunger Appeal. Contributions
to the 2004 appeal totaled $16.2 million, a slight decline from
contributions to the 2003 World Hunger Appeal which earned $16.5
million. Another $2.2 million was collected for the Stand With
Africa campaign.
In 2004 members of the ELCA contributed $10.5 million to
support disaster response efforts of the church.
"So, how are we doing in fiscal year 2005?" said Jackson-
Skelton. "Expenses are well within budget, resulting in a modest
seasonal deficit that is favorable to budget expectations," she
said.

ELCA Mission Investment Fund
"The Mission Investment Fund has experienced significant
growth in the past 17 years," reported the Rev. Arnold O.
Pierson, vice president for church relations and communication,
Mission Investment Fund (MIF). Total investments in the fund as
of June 2005 totaled $498 million, he said.
The MIF's primary mission is to provide low-interest loans
to mission congregations to purchase land and construct church
buildings and to established ELCA congregations for renovation,
expansion and relocation projects.
The MIF continues to offer low interest rate loans to all
congregations and ELCA-related ministries with exceptional rates
for new mission congregations, Pierson said.

Information about the ELCA Churchwide Assembly
is at http://www.elca.org/assembly/05 on the Web.

For more information contact:
John Brooks, Director (773) 380-2958 or news@elca.org
http://www.elca.org/news