The Protestant regional church is clearly feeling the consequences of the corona pandemic. Church tax revenues have slumped by around twelve percent this year, says senior church councilor Nikolaus Blum. That is around 100 million euros in church tax funds that the church lacks.
Corona tears a large gap in the church budget
“This is a mortgage for the next few years, we do not imagine that we can now compensate for this major cut in the short term,” said Blum on the first day of the state synod, which is taking place digitally due to Corona. In the next few years, according to the public tax estimate, he expects the situation to improve, but of course the gap that has opened in 2020 will not be able to be filled immediately.
So savings have to be made, and not just because of the corona-related loss of income. The decline in membership also plays a role in the projections. The church wants to save 19 percent by 2030. That is up to 250 million euros, says Blum. He sees potential for savings in real estate projects, among other things.
Evangelical regional church agrees on rigid austerity course
It is still open where the red pencil should be applied in the long term. First of all, the focus of the church’s activities must be determined. Which activities will play a role in the future and which will be canceled? “We are discussing where we can save, what we can combine, what we can do better,” said Blum.
The regional church prepares parishes, members and project partners for a rigid austerity course. What does not fit into the picture, however: the synod is supposed to decide on a construction project worth millions in Nuremberg during its video session.
Is the multi-million dollar construction project in Nuremberg still appropriate?
In 2017 the regional church bought the building of the former Oberpostdirektion as an income property for 49 million euros. There are now plans to convert the property into a Protestant campus. The Protestant university is to move in there, and other church offices and associations. Cost point: Almost 180 million euros.
The chairman of the finance committee, Joachim Pietzcker, explains this as follows: “At the moment the interest rate situation is such that money invested in securities offers little income. Money invested in real estate yields more.” It is therefore not a contradiction in terms if money that was previously invested in securities is invested in real estate for the future. The money comes from the existing assets and is merely being reallocated.
Whether the Protestant campus can be realized is in the hands of the church parliamentarians, who will decide on this major financial project on Thursday.
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