Tuition Reduction Proposal - Task Team Report 

Motivated by a Vision element in the Voter-approved  Vision 2020 Mission and Ministry Plan, the Board of the Christian Day School was charged to develop an operational plan to make the Day School Tuition-free by the year 2020. ( Tuition rates are currently ~$1000 per year per member student; ~$3000 per year per non-member student.  The annual cost per student is ~$4000 annually.   Tuition rates have been in place at Immanuel for the past 10 years.  Approximately 60 of the 80 Lutheran schools in Michigan currently charge tuition for member and non-member students).

The Day School Board presented such a plan to the Voters in May.  The plan was to reduce the tuition $100 per year per member-student for each of 10 years.  Non-member tuition would remain the same.

Even though 35% of the Voters approved that plan, 60% voted to form a study team to develop and evaluate additional proposals and to make a recommendation to the September Voters' Assembly.

A Tuition Reduction Proposal Task Team was formed and met weekly for several weeks.  Four proposals were developed and evaluated.  These proposals were:

Eliminate all Tuition for both member and non-member students over 10 years

Reduce member Tuition to “0” in 10 years

Eliminate 50% of Tuition costs for both member students over 10 years, no change for non-members

Continue with current practice of 75% and 25% subsidies and supplement with significant Tuition Support programs

After evaluating the cost impact and feasibility of each of the proposals, the Task Team decided that only proposal D could be recommended to the Voters.  To do otherwise would place a financial burden on the congregation that it is unlikely to be able to carry and would likely result in further structural cost reductions in staff salaries, benefits and developing ministries.

In addition to maintaining the current subsidies of 75% support for member students and 25% for non-member students, the Task Team will recommend to the Congregational President that a Tuition Support Fund Raising Committee be formed and empowered to develop a broad range of Tuition Support Programs which might include:

Individual member(s) sponsoring a student ($500-$1000/year)

Establish a Tuition Reduction Endowment Fund (this was done at the June Voters' meeting)

Estate planning with emphasis on Tuition Reduction

Business partnering with School

Grants for Tuition Reduction

Contact with LCMS Michigan District School Superintendent's Office

Solicit non-members for Student support

Solicit other schools and churches in the Alpena area

It will continue to be the Congregation's intent that no student, member or non-member, will be denied a Christ-centered education at Immanuel Lutheran School because of a lack of ability to pay.

The Voters will be asked to support these two proposals at the September 25^th Voters' Assembly.

Oral presentations on this issue will be given following the 6:30 PM Saturday and 8 AM and 10:30 AM Sunday worship services in August.  These presentations will be followed by a Q&A with members of the Task Team in the Fellowship Room.