June 19, 2005

Diocesan Downsizing

COVINGTON (KY)
The Sunday Challenger

By Amanda Van Benschoten
The Sunday Challenger
avanbenschoten@challengernky.com

COVINGTON - Financial woes have prompted the Diocese of Covington to move its headquarters from the Catholic Center in unincorporated Boone County to new offices in Covington. The move will take place in August, just a month after the diocese plans to lay off 15 of its 65 employees.

In a press release, Bishop Roger Foys said the diocese could no longer afford the maintenance cost of the 50-acre Catholic Center on Donaldson Road near Erlanger. He hopes the move to Covington will save the diocese $300,000 annually.

The diocese has spent more than $4 million since 2003 to settle claims of sexual abuse by its priests. It is now negotiating a settlement for a class-action lawsuit filed on behalf of alleged victims of sexual abuse. The $120 million lawsuit, if approved, could cost the diocese $40 million out-of-pocket. Insurers are expected to pay the remainder, although the settlement has yet to be approved. It will go before a visiting Boone County judge for the second time on June 23.

The new diocesan headquarters will be located on the third floor of St. Elizabeth Medical Center North. The 17 diocesan offices will be moved in phases during a six-week period beginning in mid-August.

Posted by kshaw at June 19, 2005 08:04 AM