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	Local Catholic Finances 'Stretched' By David Briggs Plain Dealer [Cleveland OH] February 6, 2007 http://www.cleveland.com/religion/plaindealer/index.ssf?/base/living/1170754990259170.xml&coll=2 Nearly half of the 231 parishes in the Cleveland Catholic Diocese operated in the red last year. Overall, the diocese is in the black, with revenues increasing $6.4 million to $269.2 million in 2006, according to a financial report released Monday. Area Catholics placed a record $106.1 million in collection baskets, the highest since 2002 when the church first began to feel the impact of the clergy sex abuse scandal on parish giving. But a $26 million deficit in parochial school budgets forced many parishes to dip into their savings or put off capital expenses in 2006. The diocesan report said expenses exceeded revenues in 45 percent of parishes last year, up from 37 percent in 2005. Unlike some other dioceses that have been forced into or on the verge of bankruptcy, the finances of the diocese and most parishes are not in a crisis, Chief Financial Officer John R. Maimone said. "But they are often stretched, and there are plenty of indicators that there is financial stress in many parts of the diocese," Maimone said in the report. "Our basic financial reality is that we are called to prepare for the future with a sense of urgency." In particular, Maimone said, parochial grade schools are draining the savings of some parishes, and more congregations may want to consider merging their schools, as three parishes in Lakewood recently did to form Lakewood Catholic Academy. "This [deficit spending] can only continue for so long before the school must close," he said. "If we are going to keep Catholic education available and reasonably affordable for our children, we must have more collaboration between parishes." What is the financial state of the Cleveland diocese? "The answer is a little bit complicated," Maimone said. The central diocesan offices had a slight surplus, with revenues of $15.9 million in the fiscal year that ended June 30, 2006. In some other dioceses, costs related to the sexual abuse crisis prompted mass school and parish closings or bankruptcy filings. But the Cleveland diocese has been able to pay its abuse-related expenses, including $2.4 million in 2006, from emergency reserve funds, the report said. And offertory giving, what Catholics give when the collection plate is passed, increased 2 percent to $106.1 million, the first time it has risen beyond pre-scandal levels. Catholic giving, however, has not kept pace with rising costs. In his report, Maimone said, parish expenses increased 3.8 percent from 2005 to 2006, while revenues rose only 2.4 percent. The more than 20 percent jump in parishes operating in the red also shows the wealth was not evenly shared. Many parishes in cities or inner-ring suburbs trying to hold on to their elementary schools face a particularly difficult financial road. The mixed financial results come as the diocese is going through an extensive process of helping parishes consider their future through the Vibrant Parish Life program. This month the diocese will present a plan in which all parishes will be placed in a cluster with up to five other churches. The clusters will work on plans for shared ministry. The changes could range from staggered Mass times to the closing or mergers of some parishes and schools. Several issues, including demographics, vitality of mission and the pastoral and social needs of the area, will be part of the decision-making, Sister Rita Mary Harwood, secretary for parish life and development, said Monday. But finances certainly are "an important component of planning for the future," she said. Maimone said in an interview that he hopes the region's 800,000 Catholics will become more aware that a lot of parishes are financially struggling and will be encouraged to learn more about their own church's finances. "As one pastor said recently, at least we are a few steps ahead of the steamroller," Maimone wrote toward the end of his report. "The challenge is to keep running!" To reach this Plain Dealer reporter: dbriggs@plaind.com, 216-999-4812
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