Familia Católica: Fe Viva. Colecta Anual Católica del 2010. P/R Del Obispo.

Q. What is the importance of this Year’s Annual Catholic Appeal?
Every year the success of the Annual Catholic Appeal is essential to the well-being of the local Church. This year is no exception. The ACA is not an optional fund-raiser. It provides funding for critical aspects of our mission as a Catholic community throughout our Diocese.

The urgency remains that we have a successful ACA. The financial welfare of the Diocese is challenged by the pervasive economic pressures of our times as well as by the financial obligations resulting from the settlement of the Diocese’s bankruptcy case.

Just as parish ministries are funded according to a projected budget, so, too, are the services and ministries of our Diocese. Specific diocese-wide ministries and elements of administration exceed the responsibility or capability of individual parishes. As a community of Catholics, however, every parish shares the responsibility for helping to finance those ministries and administrative services. The Church is us. It is our Faith Tradition.

This past fiscal year (ending June 30) the concerted effort by pastors and the Catholic faithful in the 82 parishes of our Diocese nearly satisfied the 2009 ACA goal of $2,220,700. Thirty-nine (39) parishes achieved or exceeded their goals! And 40.9% of the Catholic households in our Diocese participated in the Appeal. These results are the best since I became your Bishop. And I am most grateful! These funds have provided a much-needed measure of financial stability for our diocesan services and ministries in these complex and challenging economic times.

Q. Do the “Future Claims” related to the Diocese’s bankruptcy settlement threaten the financial stability of our Diocese and its parishes?
In May 2007, all the parties engaged in the Diocese’s bankruptcy case reached mutual agreement about the manner in which financial compensation would be made for accepted cases of sexual abuse of minors by priests and other Church ministers (Plan of Reorganization). One of the elements of that Plan was provision for incidents of abuse which occurred prior to March 10, 2006, but which, for a variety of reasons, were reported later. The Plan refers to them as “Future Claims.” $1M was placed in reserve to handle them. The Diocese recognizes and accepts its obligation to satisfy the Plan, but recently has raised serious concerns about the process by which the Tort Claims Reviewer has made awards in some cases. In order to defend the integrity of the Plan in relation to potential “Future Claims,” the Diocese has presented its concerns to the bankruptcy court. The processing of those concerns may take some time, certainly well into this new year.

At the moment, there is no way of knowing the ultimate determination of the court in this regard, or the potential amount of additional money which may be needed for any eventual compensation. Should the $1M fund be depleted below $200,000 I will address the matter in direct consultation with all the pastors in the Diocese. For the moment, I urge continued compassion for survivors of abuse, attentiveness on our part to the execution of the Plan, and prayerful concern on the part of the faithful.

Q. How well is the Diocese meeting its financial responsibility to repay the loans satisfying our bankruptcy obligations?
It is important to remember that the financial pressures on our diocesan budget began well before the Diocese filed for bankruptcy. The post 9/11 disruption of our national economy had a significant impact on our Diocese’s ability to fund its ministries and services. In other words, our pressures result from more than the tragic results of sexual abuse by priests and other Church ministers.

In order to gain the support of parishes to help settle our bankruptcy case, two years ago I promised to not increase the pro-rata formula for determining the ACA goals for individual parishes. The faithful of our Diocese have been most generous in paying $10M of the total bankruptcy settlement sum! I have been faithful to my promise but, at the same time, know that my decision has placed extreme pressure on the diocesan administrative budget. Thus far we have managed on the proverbial “shoe string” and are being careful not to over-extend ourselves. Again this year the annual budget makes provision for the payment of interest on loans incurred to satisfy our bankruptcy obligations. As funds become available, we are committed to “chip away” at the actual body (principal) of the loan. Identified below is the schedule of projected loan payments for the next several years. The larger sums reflect negotiated “balloon payments.” Obviously, the financial burden is heavy, but already we are seeing evidence of our ability to manage it. That effort is contingent on a successful ACA campaign again this year - as well as in the next several years.
2010= $694,000 ~ 2011= $366,000 ~ 2012 = $439,000 ~ 2013 = $758,000 ~ 2014 = $307,000 ~ 2015 = $307,000

Q. What is the status of the present administrative structure of the Diocese?
It is not an understatement to say that the budget for diocesan ministries and services has been cut to the bare bones. Funds provided by the 2010 Annual Catholic Appeal will support a minimal mission. Diocesan administration has experienced a significant number of reductions, totaling $800,000 over the past several years.

♦ Diocesan assets (including the Bishop’s home and the Catholic Pastoral Center and endowment properties) have been sold.
♦ The 2010 diocesan budget reflects housing and living expenses for our new Bishop.
♦ Salaries for the Vicar General and the head of the Marriage Tribunal continue to be covered by their respective parishes.
♦ Fourteen of thirty-five positions at the Catholic Pastoral Center have been eliminated.
♦ The Parish Services Office (PSO) has been closed. Expenses related to diocesan evangelization efforts continue to be covered by the Cathedral Parish.
♦ Support services for religious education, catechetical formation, deacon formation, and youth ministry are provided largely by volunteers.
These reductions reflect financial “savings,” but they result from the elimination of much-needed services/resources available to foster the mission of the local Catholic

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Please address any questions about the Annual Catholic Appeal to your pastor;
or contact the Diocesan Development Office (358-4280) or Chris Smith