We recently closed the books on our 2015-16 fiscal year. The final results were not what the Synod Council and staff had hoped for. While a full report is available here, let me share a few specific observations with you:

 

* Unrestricted mission support giving by congregations was once again the major funding source for synodical ministries. During the past year, 94 percent of expenditures under the synod's Ministry Funding Plan were paid by mission support contributions.

 

* Regular mission support gifts totaled $2,124,997 last year. This amount was supplemented by an additional $41,314 in undesignated receipts from congregations and individuals through the "Together We Can" appeal. The total received for mission support ($2,166,311) was a slight increase over the prior year, though 2.3% less than what had been expected by the Synod Assembly when it approved the mission funding plan.

 

* Although we underspent the authorized budget by 1% overall, the shortfall in mission support giving caused us to finish the year with expenses exceeding actual income by $32,593. That deficit compares to the small $7,516 surplus we experienced the year before.

 

* About 40% of the deficit can be attributed to the timing of some transition expenses as we begin to use the ELCA Mission Investment Fund to process synod financial transactions. While this change will reduce expenses and increase efficiency in the long run, the short-run impact on our year-end financial results was significant. Without these expenses, we would have finished last year with a deficit of approximately $19,000, still deficit, but smaller than the actual $32,593 deficit.

 

* Although mission support giving was less than expected, the synod did faithfully remit 50% of all mission support gifts to the ELCA churchwide organization for the support of churchwide ministries. One-half of 1% was remitted to Region 9 as our support of regional ministries, and 3% was set aside in our Planting New Congregations Fund, to be used in the current year to support new and developing congregations. I am happy to report that we also fully met all financial commitments made to our seminaries, campus ministry programs, camps, and colleges.

 

* In looking at other spending last year, we were fortunate to have underspent in a few major expense categories. Careful planning resulted in lower-than-expected expenses for the Synod Office ($10,527 under budget), Staff/Dean/Officer Travel ($6,994 under budget), and the Synod Council ($2,038 under budget). But there were also some major categories in which we had to spend more than originally planned. Details are included on pages 2 and 3 of the January financial report.  Links to year-end and monthly financial reports are always available on the synod's website.  Click here to view that page. 

 

The percent of giving from congregations to mission support has declined for at least the past three decades. Over the past seven years, we have addressed the decline with severe cuts in our synodical programming budget and in support of committees and task forces. We have significantly cut our support of our synod's agencies and institutions, and we have cut salaries and staff positions in the synod office. While we have hoped that there would be a turn-around in mission support giving, your Synod Council and staff are committed to do the best we can with the resources we are given.

 

Thank you for your partnership and your support of the ministry we are given to do together in this synod. Your prayers and your efforts to increase mission support giving are very much needed and appreciated.

 

In Christ's service,

Bishop