# LCMS Convention Proceedings_St. Louis Missouri_1956_S255
# Machine transcription, uncorrected — CHI Digital Archive (demonstration)

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254 SEMINARIES AND COLLEGES

Current Income and Expense

For both Synod and its Boards of Control, the financial test
of the school is the effectiveness with which it spends its current
funds for synodically approved programs and services, and the
way it uses the site and plant in the performance of its assigned
functions.

The educational program is the central and key portion of
the organized activity of the institution directed toward its objec-
tives. For this it needs an irreducible minimum of plant facilites
known as educational and general plant. However, since not all
education takes place in the educational facilities, Synod has, in
general, held that all needed auxiliary services are to be provided
under the direct auspices of the institution. The auxiliary services
are to serve the educational program and its objectives and to
make it possible for students to learn and instructors to teach in
the most favored circumstances.

The recent budgetary developments put into effect in Synod’s
colleges and seminaries make it possible, through budget control,
for the schools’ current income and current expense for the educa-
tional program, as well as for the current income and current
expense for its auxiliary services, to be in balance.

The customary sources of student income for Synod’s colleges
and seminaries are these: general and special student educational
fees; endowment funds; synodical grants; gifts from Districts, local
congregations, supporting organizations, and miscellaneous indi-
vidual gifts, consisting of outright gifts of cash or securities,
possible gifts on the annuity basis, proceeds from life-insurance
policies, and undesignated legacies and bequests.

The major source of current income for the educational pro-
gram as defined above is the annual synodical grant derived from
the synodical budget.

Until recently the same source was often the major source
of current income for the auxiliary services. In recent years,
culminating in the action of the Houston Convention, it has been
possible for your Board for Higher Education to direct any or
all colleges and seminaries to conduct their auxiliary services
increasingly on a self-supporting basis. In effect, this means that
the major source of current income for these auxiliary services as
defined above is student fees and charges for these services. This
policy assumes that the student who is benefited is to pay the
current operating cost, and the services are expected to be increas-
ingly self-supporting.

Until recently it was the general practice not to expect that
the income produced by the auxiliary services at synodical insti-
tutions would meet all expenditures occasioned by their operation.

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