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Article Category: 2007 February
Description: Nearly half of the 231 parishes in the Cleveland Catholic Diocese operated in the red last year.
Article originally prepared on : 08 February 2007
Nearly half of the 231 parishes in the Cleveland CatholicDiocese operated in the red last year.
Overall, the diocese is in the black, with revenuesincreasing $6.4 million to $269.2 million in 2006, accordingto a financial report released Monday.
But a $26 million deficit in parochial school budgetsforced many parishes to dip into their savings or put offcapital expenses in 2006. The diocesan report said expensesexceeded revenues in 45 percent of parishes last year, upfrom 37 percent in 2005.
Unlike some other dioceses that have been forced into oron the verge of bankruptcy, the finances of the diocese andmost parishes are not in a crisis, Chief Financial OfficerJohn R. Maimone said.
"But they are often stretched, and there are plentyof indicators that there is financial stress in many partsof the diocese," Maimone said in the report. "Ourbasic financial reality is that we are called to prepare forthe future with a sense of urgency."
In particular, Maimone said, parochial grade schools aredraining the savings of some parishes, and morecongregations may want to consider merging their schools, asthree parishes in Lakewood recently did to form LakewoodCatholic Academy.
"This [deficit spending] can only continue for solong before the school must close," he said.
"If we are going to keep Catholic educationavailable and reasonably affordable for our children, wemust have more collaboration between parishes."
"The answer is a little bit complicated,"Maimone said.
The central diocesan offices had a slight surplus, withrevenues of $15.9 million in the fiscal year that ended June30, 2006.
And offertory giving, what Catholics give when thecollection plate is passed, increased 2 percent to $106.1million, the first time it has risen beyond pre-scandallevels.
Catholic giving, however, has not kept pace with risingcosts.
In his report, Maimone said, parish expenses increased 3.8percent from 2005 to 2006, while revenues rose only 2.4percent.
The more than 20 percent jump in parishes operating in thered also shows the wealth was not evenly shared. Manyparishes in cities or inner-ring suburbs trying to hold onto their elementary schools face a particularly difficultfinancial road.
The mixed financial results come as the diocese is goingthrough an extensive process of helping parishes considertheir future through the Vibrant Parish Life program. Thismonth the diocese will present a plan in which all parisheswill be placed in a cluster with up to five other churches.
The clusters will work on plans for shared ministry. Thechanges could range from staggered Mass times to the closingor mergers of some parishes and schools.
Several issues, including demographics, vitality ofmission and the pastoral and social needs of the area, willbe part of the decision-making, Sister Rita Mary Harwood,secretary for parish life and development, said Monday.
But finances certainly are "an important component ofplanning for the future," she said.
Maimone said in an interview that he hopes theregion's 800,000 Catholics will become more aware thata lot of parishes are financially struggling and will beencouraged to learn more about their own church'sfinances.
"As one pastor said recently, at least we are a fewsteps ahead of the steamroller," Maimone wrote towardthe end of his report. "The challenge is to keeprunning!"
To reach this Plain Dealer reporter:
dbriggs@plaind.com, 216-999-4812
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