News Release FOR IMMEDIATE RELEASE March 11, 2009 SEMINARY REGENTS ADDRESS FINANCIAL CHALLENGES ST. LOUIS-The Board of Regents of Concordia Seminary has received reports on how the current economic situation is affecting the Seminary's finances, and it has responded. Meeting February 13, 2009, and again in a special telephone conference call February 26, the Board passed several resolutions to help the Seminary cope with the situation. Faced with an expected $4 million operating deficit for the fiscal year ending June 30, 2009, and a significant decrease in expected income for the following fiscal year, the Board has authorized trimming payroll expenditures by some 20%. Initially, the Seminary will offer regular full-time faculty and staff who are at least 55 years of age and who have served the Seminary for at least five years a voluntary early retirement incentive offer. "While those who choose this option will no longer be full-time employees of the Seminary, some will continue their service to the Seminary in a limited capacity through adjunct teaching and other activities," said Dr. Dale A. Meyer, Seminary President. "Because those who retire can continue to teach, we are confident that the Seminary will retain its reputation for having an exceptional faculty and staff." In a previous action, in January, the Board froze salaries for Seminary employees, accepted voluntary salary reductions from the President and Vice Presidents, and placed some maintenance work on hold. Mr. James Ralls, Chairman of the Regents, indicated that the Board "worked hard and long to address the current financial challenges." Among the options cited by Mr. Ralls were "increased tuition charges, deficit spending, and cutting further into the value of the Seminary's endowment." The Board determined that these options would not be wise at this time and could jeopardize the Seminary's ability to follow through on important elements of its strategic plan for the future. The individuals offered the early retirement incentive will have time to consider the offer, which also includes some Seminary assistance for health insurance for those individuals and their covered dependents. To help them in their decision-making process, Concordia Plans will have benefit advisors on-site to answer their questions. "We want to take the best care of our people that we can under the circumstances," said President Meyer. "We regret that cuts are necessary, but we remain confident that God can bring good from this situation. When we come out of the recession, we'll see that Concordia Seminary seized the present economic downturn to take giant steps into delivering 21st century theological education. When that future comes, our ‘refined' Concordia Seminary will be fulfilling its mission in the ‘new normal,' not lost in the new realities. For now, however, the Lord is allowing us to be painfully refined." The early retirement offer is the first step in reducing the personnel expenses of the Seminary, but other personnel reductions will most likely be necessary. Expense cuts are also being made in other areas of the Seminary's operations. Delaying some maintenance projects, freezing salaries, and tightening program budgets will contribute cost savings to help offset the anticipated deficit. Dr. Meyer met with faculty and staff members on March 11 to explain the actions of the Regents. "I am not happy with this unexpected situation," he said, "but by taking these actions at this time, the Regents are seeking to avoid accumulating debt and other consequences down the road that could jeopardize the Seminary's mission."
$4,000,000 Benidt Challenge Grant
If you haven’t been reading Concordia Blog Cabin, you’ve been missing out on all the latest happenings in St. Louis and at the Seminary. Did you know that St. Louis’ 4th of July celebration included a world record-setting kazoo performance? Have you seen the ESPN article that features our basketball team? It’s all on the blog! Video features will also be added shortly. Pastor Donates Kidney To Congregation Member
HOW WILL THEY HEAR? CAMPAIGN: ALUMNI PHASE BEGINS Concordia Seminary’s How Will They Hear? Campaign is kicking off and no group of people deserves to hear the details more than you, Concordia’s treasured alumni. This is the first in a series of news releases designed to acquaint you with the Campaign, update you on its progress, and let you know how you can be involved. Take a few moments to check out your website and watch for more information to come. We pray that you will feel led to learn, interact, and participate in this historic effort. CAMPUS COMMUNITY PHASE KICKS OFF Concordia faculty and staff received their first formal introduction to the How Will They Hear? Campaign at a Presidential Forum held on February 12. In his remarks, President Meyer expanded on his vision for future years and how the Campaign will impact the Seminary going forward. He also explained how the Place component will provide funds for an improved working environment on campus. Dr. Meyer also placed special emphasis on the importance of significantly increasing the Endowment Fund by way of the Campaign’s Promise component. To implement and conduct the Campus Community Phase of the Campaign, President Meyer recruited two co-chairs: Dr. Timothy E. Saleska from the faculty and Mr. Chad J. Cattoor from the staff. They, in turn, have recruited additional representatives, thus forming the Campus Community Phase Committee. Both presented remarks at the Forum regarding their personal involvement, emphasizing the importance of prayerful support from all within the campus community. WARTBURG AND KOBURG HALL RENOVATIONS PROGRESS With the blessings of the How Will They Hear? Campaign through gifts designated for the Place component, work was recently completed on the first phase of renovating Koburg and Wartburg Halls. In addition to the faculty lounge area in Stoeckhardt, a new Wartburg commons area provides a central place for the Seminary community to gather. Students, faculty, and staff can now come together to eat, study, and enjoy fellowship with one another. Many have already commented on how the renovations are forming and strengthening relationships within the campus community. The renovation project is budgeted at approximately $3 million, which includes a hoped for endowment of $300,000 to provide long term care and maintenance. The project’s timeframe is contingent upon securing funding. Work will begin when 80 percent of funding is in place and will be done during the summer term break. Banquet facilities, space for special events, public and overflow student dining areas, and kitchen efficiency and safety projects will all be accomplished during Phase II.
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