LCMS Convention Workbook St. Louis, Missouri — 1998, Page 75

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SYNODICAL REPORTS 75

In one of the Districts of our Synod approximately 10% of
the pastors have debt that could be considered insurmount-
able, meaning individual total indebtedness that surpasses
$50,000 (inclusive of student loans, consumer loans, and
credit card debt).

* As seen from a survey of one of our Synod's colleges, in the
recent graduating class, 15% had debt between $20-$30,000
and 50% had debt between $10-$20,000.

7. That according to a survey responded to by 20 of the Synod’s
35 District Presidents there are, as a best guess, at least 150 of
our Synod’s Pastors who have significant, unmanageable debt.
It must be emphasized that this figure is more than likely a
minimum number.

8. That professional church workers with large debt, themselves,
are concerned that this debt is negatively affecting their min-
istry.

9. That the salaries offered to starting pastors, teachers, and other
professional church workers, as new graduates within our
Synod, do not provide such new entrants with an adequate in-
come to service this debt.

10. That there is within our Synod a shortage of professional
church workers (for example, pastors’ and male elementary
principals to mention but a few) and that this shortage will be
compounded if the issue of debt service is not addressed.

11. Finally, that if not corrected, unresolved debt could lead pro-
fessional church workers to declare bankruptcy or seek em-
ployment outside the church, notwithstanding their individual
desire to remain as servants within the church.

Suggested Solutions

With respect to the issue of debt, we looked at this issue from
the perspective of a continuum. That is, when the debt was first in-
curred, i.e., at the time of the individual’s education and the fact
that such debt naturally includes both educational and living debt;
and, second, the fact that such debt can become compounded, and
remain unmanaged during the individual’s service within the
Synod, due to both inadequate salary levels and our Synod’s failure
to provide both resources and programs to manage the debt. Hence,
it becomes imperative that the Synod not only address the debt
problem at the time when the student first enters our synodical ed-
ucational system, but also while the student is within that system
and, thereafter, i.e., during the service life of that full-time profes-
sional church worker.

Before we list proposals for the President and the Board of Di-
rectors’ consideration we must emphasize that any debt, educa-
tional or otherwise, incurred by our Synod’s professional church
workers must remain the specific responsibility of the individual
who incurred that debt. Also, we should point out that during our
consideration of church worker indebtedness we did not believe it
necessary to inquire into nor distinguish as between the reasons for
the underlying debt. The debt exists. It is a growing concern and
problem. The issue is the establishment of a system for the Chris-
tian management and ultimate resolution of the growing indebted-
ness problem. Finally—and while the obligation to search for
means toward the proper resolution of the growing debt problem
of professional church workers rests with our Synod, its organiz-
tions and individual congregations—it is our Synod as a whole that
must accept the responsibility to assume the overall resolution of
the problem. Accordingly, some suggested solutions, both preven-
tative (or proactive) and remedial follow:

1. That the President of the Synod send to all synodical congre-
gations a pastoral letter that brings to the attention of the
Synod both the problem identified and the necessary steps
that must be taken to address the permanent resolution of this
problem.

2. That the Lutheran Church Extension Fund (““LCEF’”) should
make available loan programs to Districts and congregations
through which professional church workers would be able to
consolidate high interest debt to a more reasonable interest
level. And, that congregations be made aware of such
programs. In addition, such direct loans could be made

available to students, at the time of placement, through a
sponsoring District or congregation. However, the provision
of such low interest loans must be accompanied with debt
awareness and management programs.

. That the Stewardship Department of our Synod be

encouraged to continue with its current effort to both develop
and then implement personal, financial management
workshops for all of our Synod’s professional church
workers. An outline of the pilot program (for the South
Wisconsin District) was shared with the Financial Aid Task
Force. The proposed program looks comprehensive. Those
involved in this pilot project are to be commended. Such
programs should be aggressively promoted throughout the
Synod.

In addition the Stewardship Department is to be encouraged
to seek assistance and direction from agencies and individu-
als, both within and without our synodical system, who have
developed a recognized expertise in the area of managing fi-
nancial resources.

. That the Concordia University System (“CUS”), its

individual colleges and universities, and our Synod’s two
seminaries accept as their responsibility the task of both
identifying and then assisting students who are likely to face
financial problems while in attendance at their individual
institutions.

. That CUS also develop, or incorporate the work coordinated

by the Stewardship Department, and provide financial
planning workshops as a mandatory offering during the first
quarter/semester of the freshman year at the Synod’s colleges
or universities.

. That our two synodical seminaries develop, or incorporate

the work undertaken by the Stewardship Department, and
provide financial planning workshops as a mandatory
offering during the first quarter/semester of the first year of
seminary education.

. That the Synod’s CUS and its individual seminaries make

available continuing resources throughout the academic years
of its students in the area of financial counseling. Suggestions
would be in the areas of financial goal setting, how to handle
debt and manage income and expenses (distinguishing
between fixed and variable expenses) and being a wise
consumer of financial products and services.

. That The Lutheran Church—Missouri Synod Foundation

(“LCMSF’”) establish, seek contributions, and administer a
fund the purpose of which is to work with synodical Districts
and congregations to assist professional church workers
under their jurisdiction in both addressing and resolving the
individual indebtedness of such church workers. That such
financial assistance, through funding sources, also be
provided to our synodical schools and seminaries for their
use in developing and implementing financial resource
management programs and counseling.

. That the LCEF should establish a program whereby

individual investors in the LCEF will have the opportunity to
contribute interest income from investments to such fund(s)
under the LCMSF, as above suggested, or, where such
designated interest could be used for the specific purpose of
debt reduction for professional church workers or to assist in
the underwriting of the retirement needs of church workers,
as discussed later in this report.

. That the Synod’s District Presidents take a proactive approach

in identifying those professional church workers under their
ecclesiastical supervision with significant or unresolved debt
problems. That the District Presidents understand it is their re-
sponsibility to both set up procedures for the implementation
of preventive programs and to propose remedial action to re-
solve the problem of unresolved debt of the individual church
workers under their ecclesiastical supervision.

. That the LCMSF, in conjunction with other appropriate entities

within the Synod, provide the means to support a network of
financial planning consultants to meet with all those profes-