Florida Catholic | Hard Financial Times Also Affecting Archdiocese

Hard financial times also affecting archdiocese

Published: 06.06.08

My dear friends,

The U.S. economy is not doing well. Gas prices have reached new heights. Home prices are dropping. Food costs are rising. Every sector of our society is feeling the pinch, from the state legislature to county governments to local school boards. All have announced drastic cutbacks in their budgets.

The Archdiocese of Miami is feeling the pinch as well. Even though our collection revenue has increased – the ArchBishop’s Charities and Development appeal raised nearly $10 million last year compared to $6.7 million in 1998, and the assessments we collect from parishes increased from $2 million to $5 million over the same period – our expenses have risen at a much higher rate.

The subsidies we provide to needy parishes and schools have increased from $2 million a year a few years ago to $5 million this year. Ten years ago, our archdiocesan investments were earning about $19 million a year – that figure is now down to $3.5 million.

For the past few years, our Pastoral Center offices – which are financed by the assessments (similar to taxes) levied annually on our parishes and the proceeds of the ABCD collection – have functioned at an annual operating deficit of between $4 and $5 million. Each year, we have borrowed money to pay off that debt. We can no longer continue to do that.

While the archdiocese remains financially sound overall, it would be irresponsible to continue spending more than we take in. That is why I have had to make some difficult decisions, as I announced in a press release published in the April 14 edition of the Florida Catholic.

To be more specific: As of July 1, the 2008-2009 Pastoral Center budget has been cut by $4 million. In order to do that, we have reduced the number of employees in our central offices, laying off 49 of our 182 staff members. We also are reducing by 10 percent the subsidies we provide to our inner-city schools.

While no ministries have been eliminated, most will function with far fewer employees. Where the Pastoral Center once provided services to the parishes, the current financial situation has forced us to reconsider which services we can afford.

Rather than providing direct services, our ministries in the Pastoral Center will serve more as a resource to help parishes themselves provide those services. I have asked the pastors to pool their efforts in their deaneries, or geographic regions, and also to rely more on volunteers.

None of this is pleasant or good news. These are not decisions I wanted to make – and neither have I been forced to make them by the settlements we have paid out to victims of clergy sexual abuse. Our insurances cover those expenses.

The fact is the economy is not doing well. The stock market is not doing well. Some economists are predicting that even more difficult times lie ahead. Just as families are being forced to cut back on their spending, the church is being forced to cut back on its spending.

This is doubly difficult because the church is often the first place people turn to when they are in need. But the sad reality is that we do not have a choice. We all must sacrifice and try to do more with less.

Be assured that I am praying for you and your families as you try to stay financially afloat during these trying economic times. I ask that you pray for me as well, for all those who have lost their jobs in the Pastoral Center and for all those who are losing their jobs and their homes throughout south Florida.

Our only hope lies in the Lord and his promise: God will provide – perhaps not all we want, but certainly all we need. In him we trust.

Hard financial times also affecting archdiocese

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