# LCMS Convention Proceedings_St. Louis Missouri_1956_S256
# Machine transcription, uncorrected — CHI Digital Archive (demonstration)

SEMINARIES AND COLLEGES 255

Under a new and general synodical policy, such auxiliary services
to students might be expected to produce income more nearly
sufficient to carry their true economic costs. The true economic
costs to students would include the current operating costs of the
service, interest on the invested capital for the ordinary lifetime
of the facility, and some provision for depreciation of the plant.

In order to derive income adequate to maintain acceptable
auxiliary services, the institutions are necessarily held to charge
rates that are realistic.

Since most indirect costs are operational and involve such
items as utility costs, it is possible to allocate such indirect charges
on recommended and established standard bases.

The Board for Higher Education recommends:

1. That Synod affirm its acceptance of the basic principles
regarding institutional current income and expense as outlined
above;

2. That Synod instruct the Board for Higher Education to
hold the synodical institutions to make the current operations
of auxiliary enterprises and services a self-financing venture and
increasingly to give effect to the true economic costs of such
auxiliary services.

In order to give initial effect to this basic policy, the Board
for Higher Education further recommends:

1. That every student in residence in a synodical institution
be assessed a charge of $25 per semester (or equivalent, where the
institution is organized on the quarter system);

2. That the annual accumulation of such fees be remitted to,
and accounted for, by the synodical Fiscal Office in impounded
replacement funds;

3. That such revenue be used exclusively for major repairs
of auxiliary plants and equipment of colleges and seminaries.
Capital investments and capital improvements or major remodeling
are to continue to be paid by Synod;

4. That proposals for expenditures from this account be
included in the annual budgets and be processed in accordance
with the provisions of Sections 6.145 and 6.146 of the Handbook;

5. That this use levy be made effective by the institutions for
and after the 1957—1958 school year;

6. That the Board for Higher Education be authorized and
directed to suspend or modify any or all of these special fees at
a given institution if their application within the next triennium
affects enrollment adversely or if other local circumstances and