Post by captaincoconut on Mar 31, 2010 22:52:50 GMT -5
We will be accountable upon approach of the pearly gates, shame on you all.
The poor economy has led to lagging donations; no church closings are planned.
By Derek Gentile
03/31/2010
Wednesday March 31, 2010
SPRINGFIELD -- Faced with what its leadership is calling a "perfect storm" of negative economic factors, the Roman Catholic Diocese of Springfield says it will be cutting its budget by about 40 percent in the fiscal year that begins July 1.
No church closings are foreseen, according to church spokesman Mark Dupont.
"These budget cuts will be seen in our central office and in diocesan services," he said.
The sluggish economy is the principal culprit, said Dupont. Donations have been lagging for several years, and are down 40 percent this year.
In addition, since 2000, the amount of money individual parishes owe the diocese has grown annually because the parishes themselves are struggling financially. This sum of unpaid parish bills is about $9 million, according to a letter from Bishop Timothy A. McDonnell to the diocesan staff. Meanwhile, the diocese has been subsidizing a number of the churches and its schools and depleting its own reserves as a result.
With so many Western Massachusetts parishes operating at a deficit, there is "little likelihood" these payments will be made, he wrote. Just 11 parishes haven't run a deficit in the past 10 years.
The economic downturn has also taken a toll on its investments: The market value of the Springfield diocese's foundation dropped from $31.5 million to $23.1 million, resulting in less money to allocate to the programs it supports.
The diocese used a portion of
its cash reserves to pay the individual parishes' insurance costs to keep them all current, according to McDonnell.
In addition, since 2000, the diocese has subsidized education in Catholic elementary and high schools at a cost of more than $48 million, according to McDonnell's letter.
The cash reserves used by the diocese to subsidize the churches and its educational programs are "near depletion," wrote McDonnell.
"Despite what many think, diocesan resources are not limitless. In fact, we are approaching the limit," the bishop wrote. "For example, although the diocese has assets in the foundation and designated funds, such funds cannot be accessed legally for general operating expenses."
The diocese's preliminary plan will be to merge central offices in Springfield, eliminate some church programs with a concordant downsizing of personnel, and recalculate the diocesan work schedule, with a potentially drastic reduction in hours for some staff, according to McDonnell.
Dupont said on Tuesday that the recent settlements by the diocese for clergy sexual abuse cases "have not been a huge factor compared to" the lack of money coming from parishes and the diocese's subsidies for its schools. Settlement payments were covered in large part by the diocesan insurance companies, wrote McDonnell.
Dupont added that the funds generated by the sale of recent parish properties are also not available to the diocese.
"We cannot access those funds," he said. "The money raised by the sale of assets went to the communities in which those churches were located."
Thus, money will not be siphoned off from the sale of assets in Pittsfield or other Western Massachusetts communities to offset some of the deficit.
Dupont said details of how the diocesan central office will be downsized, which programs will be eliminated or reduced in scope, and how this will affect diocese personnel has not yet been worked out. The church will announce those final plans when they are completed.
The poor economy has led to lagging donations; no church closings are planned.
By Derek Gentile
03/31/2010
Wednesday March 31, 2010
SPRINGFIELD -- Faced with what its leadership is calling a "perfect storm" of negative economic factors, the Roman Catholic Diocese of Springfield says it will be cutting its budget by about 40 percent in the fiscal year that begins July 1.
No church closings are foreseen, according to church spokesman Mark Dupont.
"These budget cuts will be seen in our central office and in diocesan services," he said.
The sluggish economy is the principal culprit, said Dupont. Donations have been lagging for several years, and are down 40 percent this year.
In addition, since 2000, the amount of money individual parishes owe the diocese has grown annually because the parishes themselves are struggling financially. This sum of unpaid parish bills is about $9 million, according to a letter from Bishop Timothy A. McDonnell to the diocesan staff. Meanwhile, the diocese has been subsidizing a number of the churches and its schools and depleting its own reserves as a result.
With so many Western Massachusetts parishes operating at a deficit, there is "little likelihood" these payments will be made, he wrote. Just 11 parishes haven't run a deficit in the past 10 years.
The economic downturn has also taken a toll on its investments: The market value of the Springfield diocese's foundation dropped from $31.5 million to $23.1 million, resulting in less money to allocate to the programs it supports.
The diocese used a portion of
its cash reserves to pay the individual parishes' insurance costs to keep them all current, according to McDonnell.
In addition, since 2000, the diocese has subsidized education in Catholic elementary and high schools at a cost of more than $48 million, according to McDonnell's letter.
The cash reserves used by the diocese to subsidize the churches and its educational programs are "near depletion," wrote McDonnell.
"Despite what many think, diocesan resources are not limitless. In fact, we are approaching the limit," the bishop wrote. "For example, although the diocese has assets in the foundation and designated funds, such funds cannot be accessed legally for general operating expenses."
The diocese's preliminary plan will be to merge central offices in Springfield, eliminate some church programs with a concordant downsizing of personnel, and recalculate the diocesan work schedule, with a potentially drastic reduction in hours for some staff, according to McDonnell.
Dupont said on Tuesday that the recent settlements by the diocese for clergy sexual abuse cases "have not been a huge factor compared to" the lack of money coming from parishes and the diocese's subsidies for its schools. Settlement payments were covered in large part by the diocesan insurance companies, wrote McDonnell.
Dupont added that the funds generated by the sale of recent parish properties are also not available to the diocese.
"We cannot access those funds," he said. "The money raised by the sale of assets went to the communities in which those churches were located."
Thus, money will not be siphoned off from the sale of assets in Pittsfield or other Western Massachusetts communities to offset some of the deficit.
Dupont said details of how the diocesan central office will be downsized, which programs will be eliminated or reduced in scope, and how this will affect diocese personnel has not yet been worked out. The church will announce those final plans when they are completed.