Is the funding model of WELS Lutheran elementary schools sustainable?

Sustaining and advancing the Christ-centered mission of WELS schools is a critical issue…perhaps today more than ever, regardless of the level – elementary, high school, or college. The recent recession, rising health care costs, struggling church finances, and a host of other economic realities impact our ability to fund what we hold so dear – a CHRISTian education. There are no easy answers, but engaging in dialogue is critical. Certainly this 700-word blog won’t do it justice.

A few years ago I had the opportunity to study the funding model of WELS elementary schools as compared to other Christian elementary school systems – Catholic, LCMS, and Association of Christian Schools International. While the other school systems had a tuition-driven model, the typical WELS funding model and philosophy goes something like this:

  • The church and school are viewed as one ministry. Therefore, our accounting and cost structure reflects this understanding.
  • The lowest possible tuition is the most compassionate and ministry-minded approach because more lower-income families will be served.
  • The church subsidizes school costs that tuition/fees do not cover.

Did this approach work? I believe it was a very effective funding model for Lutheran elementary schools for a good share of the 20th century. Is it working today? If your school’s funding model is sustainable – excellent . . . and you can stop reading.

However, if you are struggling to adequately fund your Lutheran elementary school, I would ask that you consider the following:

If it costs $4500 per student to run your school and you charge $1500 per student, then:

  • The church is subsidizing $3000 per student regardless of family income, family need, etc.
  • Subsequently, those families in greatest need are not getting as much financial aid as they could, because we are subsidizing all families equally, including those families with financial means. What is intended to be a compassionate and ministry-minded approach in reality can hurt the ones we want to help the most.
  • Since the church is subsidizing tuition regardless of need, then:
    • The church oftentimes struggles financially and is not able to carry out other ministry due to financial restraints.
    • The school struggles financially because the church endures tough financial times. Subsequently, the school is challenged to deliver excellence in Christian education.
  • Since the church is subsidizing tuition regardless of need, then:

Our current approach hopes school families make up the difference in the offering plate. Is this happening?

Some families “join” the church for cheaper tuition. Is this proper motivation for active and thriving church membership?

Perhaps we have created generations of Lutherans with an entitlement mentality – church membership equals greatly reduced tuition.

In addition, as schools desire to reach out into the community, oftentimes interested parents will not consider our schools because tuition is so low. They don’t believe their child will receive an excellent education with such a low tuition. (I’ve experienced this phenomenon.)

So, what are we to do? School leaders could consider the following:

  • Know the true cost of education per student and communicate this clearly with parents.
  • Consider a model that includes parents taking more of a responsibility in bearing the true cost of Christian education while still having complete unity of church and school in mission. (Admittedly, this is a tough financial time to introduce the practice, although it is commonplace in other Christian school systems.)
  • Provide a robust scholarship program within the church to help those in greatest need.
  • Continue to celebrate the value of a CHRISTian education.

Most parents today expect our Lutheran schools to be highly effective. Research-based features of effective schools are a topic for another time. However, in order for WELS elementary schools to deliver academic excellence and provide an outstanding student experience, the funding model must support parents’ growing expectations. Greater reliance on tuition income is one consideration, in addition to focusing on recruitment and retention, looking at alternative sources of income, considering the feasibility of combining several close WELS schools for enhanced efficiency (in light of changing demographics), etc.

Honestly, I wish we could turn back the clock and enjoy a fully church-supported education system. However, I fear that most churches with schools are struggling mightily, and economic realities are creating a new normal. In order for us to preserve (by God’s guidance and his doing) the legacy of WELS Lutheran elementary schools, I believe we need to think differently in terms of sustainability. I’ve just scratched the surface. May God bless our efforts during these very challenging and promising times.

Written by Dr. Daniel Johnson. 

Dr. Johnson is the president of Wisconsin Lutheran College. He has also served as as a principal in WELS elementary and area Lutheran high schools.

8 thoughts on “Is the funding model of WELS Lutheran elementary schools sustainable?

  1. I appreciate Dr. Johnson’s insights. I can agree with many of the points raised. However, we need to be careful to avoid the temptation of believing that there is ONE answer to any problem. Human nature and economics did not suddenly change with the turn of the century. While there surely are cultural shifts, some things remain the same–no matter what system one comes up with, the Old Adam in each of us will always be working to game that system in some way. Each congregation needs to carefully and prayerfully examine the alternatives available, select one that works at present, and be willing to change as their situation changes. There is no one-size-fits-all solution for every LES and there is no one solution that will work perpetually for any congregation. Stewardship is always difficult and there is always the temptation to think that if we just find the right formula, everyone will participate and share the load equally. If the Stewardship solution looks too easy, it likely won’t work. A question to examine if the school is not adequately funded, is how would the congregation be using those funds if the school were to close tomorrow. If there are detailed plans and eager, available volunteers to do LOCAL mission work that exceeds the mission potential of the school and all that is lacking is funding, then perhaps it is time for the congregation to move onto another mission field. However, if no local mission work is being conducted outside the school, perhaps the lack of funding is merely a symptom of another problem that needs to be addressed.

  2. I would be curious to find out how many associations in the WELS have considered the “Middle School” concept for 7th and 8th graders, where students attend their local congregation’s grade school until 6th grade, and then the 7th and 8th graders might move to the campus of the local Area Lutheran High School. The idea has been thrown out there by one congregation here in Southeast Michigan whose school is outgrowing its space and lacks a gym. However, it is strongly opposed by the other schools in the area so it couldn’t work without their cooperation. Interestingly, some of the other schools are the ones who might benefit most financially. My own congregation is a perfect example, where the 7th & 8th grade teacher is now teaching something like five students, and the school as a whole has dropped to only 31 students in K – 8 with five full-time teachers. However, change is a terrible word in this area and the majority of the pastors do not support the area Lutheran High School and would not want their 7th & 8th graders going there. Financially the Middle School concept would make sense, but I fear many students would simply transfer into the public systems after 6th grade to save money rather than waiting until high school.

    On another topic, I just want to point out to Perry Lund and others who may or may not realize it that we offer online courses taught by our own WELS high school teachers. We are in our second year of operation and it is growing rapidly. I myself am on the Board of Directors and I teach several online courses. The WEB site is ALHSO.org We hope to offer our first Religion class next year, and all of our courses are taught in light of God’s Word. Check it out!

  3. I deeply appreciate folks’ thoughts with regard to the Lutheran school system.

    Living in a community with no LES (closest one at over 100 miles away), we experienced the public school system through 6th grade with our son. The degradation of public school policy and quality of education grew in those year. We talked with our pastor and chose to place our son in a local Jr. High Christian school (Reformed). We saw an immediate improvement in those 2 years, while still being able to discern any doctrinal issues.

    Our congregation was blessed to have a family whom sent their children to WELS synodical schools join our local church. We learned about WELS prep school system and were blessed to be able to send our son to Luther Prep. I am not sure we would have known about Luther Prep otherwise.

    That said, I can not pretend to know the whole set of issues regarding LES systems. I have finished WELS Teacher Certification and spent 5 weeks at Nebraska Lutheran, so have that experience to draw upon. There are some very good comments on the blog already. Piggybacking on those ideas, a few thoughts spring to mind.

    Federated high schools with and without dorms work to some extent. While not immediately palatable for parents with younger children, could a model adapted to LES work for some areas of the country? Being here in Oskaloosa, Iowa, the closest LES is in Cedar Rapids. If we could have arranged week stays for our son in Cedar Rapids, with him home on weekends, we believe we would have taken up that pursuit. The question is whether WELS families would open their homes on weekdays and what would the gratuity structure look like for the hospitality?

    In Iowa, we have home schooling with the accessibility to some courses at the local public schools as needed. As someone alluded to on the blog, could a teacher from an LES (say our case in Cedar Rapids) add home schooled WELS kids into a Skype or other online video session for some instruction? Also, the WELS certified teacher could be a valuable resource for the Lutheran home school parents.

    5 years ago when Julie (wife) and I were trying to figure out our son’s schooling options, we did not know about the WELS school system. Communications in the form of WELS Connection and Together have opened up remote and rural (to Wisconsin) congregation’s eyes to what synod does. That is a fine start. People attending WELS churches still are blinded or unaware of the value of WELS schools and education when compared to public schools.

    I have had conversations with some of our synod folks including Paul Prange and Nate Scharf, who are making strides in their respective areas of ministerial education. I want to help and stay engaged in the dynamics of Lutheran education. Of course, I would pray my passion continues beyond my son’s awesome experiences in the WELS school system.

    WELS parents look at earthly matters and use them as crutches to justify keeping their kids in public schools. Sports and extra curricular “opportunities” are better for getting into college is an example. You know the stories from your own experience. Or Lutheran education is too expensive. Sure public education is relatively free, but do we proclaim loudly enough the value of a paid Lutheran education. There are no freebies in this world. Public education has deleterious effects for our children.

    Luther is attributed the quote, “I am afraid that the schools will prove the very gates of hell, unless they diligently labor in explaining the Holy Scriptures and engraving them in the heart of the youth. I would advise no one to send his child where the Holy Scriptures are not supreme. Every institution in which men and women are not unceasingly occupied with the Word of God must be corrupt.” Most parents would think that harsh today. However is it loving to not provide our children with an education rooted and informed by Holy Scripture?

    Humbly submitted in Christ…

  4. I honestly fear for the future of our schools, because there are so many things that can ultimately lead to the death of a school, and often along with it, the destruction or at least fracturing of the church that operates it.

    Following the “good ol’ days” model, where the church subsidizes nearly the entire cost of education, puts a tremendous strain on a church’s budget, with 70-80% of the budget going toward this one ministry. Eventually, everything else suffers, because only one ministry is being supported, and after years of climbing deficits, cuts need to be made. One position is eliminated, and a few families leave because of it, and now more positions need to be eliminated, causing a death spiral.

    Following a more contemporary model, where more of the cost of education is provided by tuition, opens a school up to the situation Rev. Pieper mentioned. One teacher who might not be up to snuff, or an aging facility, or out-of-date materials, or the inability to provide all the extras that the deep-pocketed public schools can offer, or simply an influential “soccer mom” who sees greener grass elsewhere – any one of the above can pull away enough families to produce the same death spiral.

    Schools can survive as long as teachers, materials, facilities, extra-curriculars, policies, security, and quality of education are all top-notch. But all of those cost money, and in increasing amounts. And if *any one* of those things falters, fringe families jump ship, leaving the rest to pick up the financial slack, putting both the school and the church in very difficult positions.

    Will we ever be able to compete with the bottomless pocketbook of the public schools? Certainly we have the pearl of great price in the priceless Word of God, but what if the people we serve (or are trying to serve) don’t appreciate it, or don’t value it the same as we do?

    While I am a strong supporter of our Lutheran schools, I wonder if we need to open our eyes a little to realize that “Christian education” does not need to be synonymous with “Lutheran elementary school.” An LES is one way to provide Christian education, but it is not the only way. I wonder if we need to be looking for not a new funding model, but a whole new paradigm for Christian education. Is “one church-one school” still the best model, or is an “area” grade school a more viable idea (in places where that is even an option)? Maybe we need to begin thinking about how to encourage parents to lead the way in the Christian education of their children, rather than teaching them that they should leave it to the professionals at the church/school. That way the state could teach math and reading, and the church could be focused on proclaiming the gospel to every generation.

    • Your comments turn the conversation in a new direction. Dr. Johnson approached the topic of school financing from the direction of saving our invaluable schools. You questioned his assumption that WELS schools are worth saving. Essentially you stated that WELS schools are not worth the cost.

      Before we abandon our Lutheran schools, we should be realistic about what the next generation will face without them.

      1. Without Lutheran schools, our children will attend schools promoting human philosophies rather than God’s wisdom.

      2. The hectic schedules of modern life will continue to prevent meaningful dialogue between parents and children.

      3. The devil and the world will wage a relentless attack on our children’s souls.

      The Lutheran school is one way this generation (congregation members and parents) can plant the word of God deeply into the next generation’s hearts so that by God’s grace, it grows.

      I would like to think that our conservative Lutheran parents will seize their responsibility as the primary teachers of God’s truth to their children, but I think back to the Israelite parents and it makes me wonder. When Israel took possession of the promised land under Joshua, they witnessed God’s miraculous power and tremendous blessings. But what happened? The Bible records, “After that whole generation had been gathered to their fathers, another generation grew up, who knew neither the Lord nor what he had done for Israel.” (Joshua 2:10) Why didn’t that blessed generation share their awesome God with their children?

      Are today’s Lutheran parents better than those of ancient Israel? Is the faith of today’s parents stronger, is their zeal greater? Are the temptations our children face today less than those of ancient Israel?

      With the wickedness of today’s world, our parents need all the help they can get. I agree with Dr. Johnson. Our schools are a blessing, not a burden. The question is how can we best ensure that we pass the blessing of Lutheran schools on to the next generation of parents to assist them in teaching their children?

      John Meyer

    • a well-run, well-maintained LES can wipe the public schools, even without considering the Lutheran religious instruction. If we go the primarily tuition funded route, we will have to remember we need to attract those who initially will ONLY look skin deep at our schools. Here in Nevada the public schools do not have bottomless pockets and the private sector competes amazingly well with them if they on the surface match up fairly well.

  5. When schools are primarily tuition funded they become vulnerable to wide swings in funding. Often outside sources of revenue (non-member children) are looked to as the solution, but this opens the school funding picture to even wilder swings in funding, beyond economic cycles. The school may flourish if it is trendy. But trends fade. The school may languish if it has a bad reputation–and that bad reputation can come from just a few “carriers.”.
    If the school is to be primarily funded by tuition, it has to be top-notch, not only in teachers–we are blessed with this already with our MLC grads–but also in our facilities. Quite frankly, they have to match up favorably with what the public school systems and other private schools offer. Single room schools or multi-grade classrooms will not be understood by the outsiders a tuition funded school needs to attract. If churches choose to go the primarily tuition funded route, they have to take a cold, hard look at the physical facilities they are housing their schools in and be ready to make sizable infrastructure and capital expenditures..
    And then there’s the question of the right mix of member/non-member students to preserve not only the Christian, but the Evangelical Lutheran culture of the school.
    Bad facilities + great teachers + tuition funded=closure.

    • The best thing about pursing an elementary education degree are the number of courses you have to take to master instruction of basic subjects, like math, science, English, and reading. It is literally going back in time and experiencing your grade school classes all over again, because you remember all the science projects, math formulas, and awe-inspiring books that captivated your mind and imagination

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