After a year of positive synod financial reports, WELS received news in mid-November that because of the country’s current economic situation, two major donors will have to suspend or reduce contributions to support synod operations by an estimated $4 million. Although exact numbers will not be available until the end of January, WELS leadership is examining how this decrease will affect current and future ministry.

According to Todd Poppe, WELS chief financial officer, a buffer fund that was created by a surplus in 2007-08 should be able to cover shortages in the current fiscal year (July 1, 2008 to June 30, 2009); beyond that, there may be significant shortfalls.

Factors that will impact the synod in the short- and long-term include the performance of the economy and results of the Year of Jubilee, a special debt-elimination offering held in November and December 2008. By the end of January, WELS will also have numbers tallied from the 2008 Congregation Mission Offerings, as well as mission offering commitments for 2009.

WELS president Mark Schroeder says that faced with these new challenges, we as a synod need to continue to trust in our unfailing God. “As we look back over the last year and a half, we just saw one blessing after another from God,” he says. “Nothing has really changed. God is still blessing us but now in a different way. Instead of a surplus, we are faced with a real financial challenge. This is serious, but God is giving us time to prepare, respond, and to make contingency plans—all the while, confident in God’s promises.”

The Synodical Council—WELS’ leadership group charged with maintaining ministry direction, overseeing the work of the synod, and balancing the synod budget—is currently looking at ways to reduce expenditures. In the remaining months of this fiscal year, every area of ministry is being asked to review all activities, including existing ministry programs, travel, and meetings, and to carry out only absolutely necessary functions. With only a few vital exceptions, current vacancies in called and hired positions will not be filled, and no new positions will be added.

Schroeder says the areas of ministry have also been asked to review the budget estimates they submitted in October and consider reducing or eliminating programs and positions, keeping in mind the priorities established by the last convention. They will also be asked to consider a greater use of the special funds that they have on hand to maintain or transition ministry programs.