SEPA Passes First Balanced Budget in Two Decades

At the recent Assembly of the Southeastern Pennsylvania Synod of the Evangelical Lutheran Church in America, Bishop Claire Burkat announced with pride that SEPA was adopting its first balanced budget in more than 20 years. It was formed in 1988. That’s almost its entire history.

The practice of budgeting and spending far more than they had any hope of bringing in through voluntary contributions from member churches was a very bad practice that 2×2 believes led to coveting the assets of smaller congregations. Large churches had the benefits of services from staffs they could afford only by relying on small churches giving up everything. This led to neglecting the needs of small congregations. Part time, revolving-door ministries wore down the lay people until they gave in. Several churches were forced into closure with assets going to the synod.

This is presented as good stewardship. We think it is squandering the lay people’s legacy and investments in their neighborhoods.

Constitutionally, there is no requirement that any member church contribute to Synod. There is also no constitutional requirement that congregations must designate assets to the Synod upon closing. Congregations may sell their property at any time and determine how the proceeds are to be spent. This is historic Lutheran polity. There are many stories of congregations voting to close and leaving nothing to their denomination. There is an expectation that remaining assets be used for some charitable purpose in keeping with the congregation’s mission and with the approval of the congregation, but Synods are not to be the determiners. The congregations are.

Bishops and Synod Councils are not given constitutional powers to vote congregations out of the ELCA without serious negotiation. This requires a vote of the congregation. Of course, in SEPA, if the congregation doesn’t vote SEPA’s way — you can always just declare things to be the way you want them to be. Let the people eat cake.

But thinking changed in SEPA. They were passing six-figure deficit budgets and relying on the sale of closed church properties to save the day. They placed the assets in what they called The Mission Fund. They dipped into this fund whenever their deficit budget hit the wall. Declining membership and giving in even the largest churches made this a regular occurrence.

Things have changed. SEPA’s finance committee objected to the practice of including projected sales of properties in their proposed budget. Kudos.

We like to think that Redeemer’s insistence on Lutheran polity helped turn the tide. It is very unfortunate that this new-found wisdom was at the expense of the East Falls faith community (and about six others).