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	Catholic Diocese Sees Financial Gain By Chris Dettro State Journal-Review February 18, 2008 http://www.sj-r.com/News/stories/25444.asp A year can make a lot of difference financially, as the Springfield Catholic Diocese can attest. About this time last year, the diocese reported its general operating fund had lost $2.3 million during the fiscal year ended June 30, 2006. In the fiscal year that ended June 30, 2007, however, the fund showed net income of $5.7 million. And although an upturn in the stock market contributed to last year's improvement, the market's dismal showing so far this year hasn't erased all the positive gains, according to the diocesan annual financial report, which was issued in January. "A quick review of the diocesan statements shows that we are holding our own or that we are having a normal year," John Maxwell, director of finance for the diocese, said recently. "Our expenses are running about $60,000 greater than revenue through December 31, 2007," he said. "But many of our year-end donations come in the first week of January, and our contributions are running higher than last year, so the generosity of our people has been good." Parish collections for the 131 parishes in the 2006-07 period were $2 million higher than during the previous year, he said. In the annual report, Maxwell said three major factors contributed to the turnaround: * The diocese's return on investment was $4 million more than the prior year, although most of that income from investments exists only on paper. The diocese won't receive the income until the investments are sold, and the end-of-year report reflects only what those investments would have brought if sold on June 30, 2007. "This is a snapshot of what things looked like on June 30," said Kathie Sass, spokeswoman for the diocese. "The same snapshot now would reflect the downturn in the market." The stock market's performance in the last two quarters of 2007 and so far this year has reduced some of that unrealized gain, Maxwell said, but the picture isn't as bad as one might surmise. "The investments for the diocese the last six months have been a rollercoaster, much a reflection of the stock market, but yet through Dec. 31 we are up $70,000," Maxwell said. * The second factor in the fiscal 2007 increase was a sale of property at Iles Avenue and Koke Mill Road. The site was sold for development of a Walgreens store at a gain of $2 million. That money has been set aside by the Diocesan Finance Council for future renovation of the Cathedral of the Immaculate Conception complex at Sixth Street and Lawrence Avenue. * Finally, the diocese also reduced its operating expenses by $715,000 in fiscal 2007. That included the layoffs of at least four people and the loss of some other positions through attrition, said Kathie Sass, spokeswoman for the diocese. Travel expenses also were cut back. Maxwell also said health insurance claims in the diocese were down for the second straight year. If the trend continues, he hopes increases in renewal premiums also will start to drop below industry averages. The diocese paid out $381,716 to its parishes in fiscal 2007, representing the final installment of a capital campaign begun in 2003, the diocese's sesquicentennial year. The pledge periods extended to this year, Sass said. Over the life of the campaign, a total of $3.02 million was returned to the parishes — $2.8 million returned from the "Harvest of Thanks, Springtime of Hope" campaign directly and the remainder from parishes that had building campaigns combined with it. The campaign raised $12 million for endowments and $6 million for the diocese's high schools and the pending Cathedral renovation, Maxwell reported. Sass said the diocese doesn't anticipate any future liability from any sexual abuse cases involving members of the clergy. "Right now, unless someone comes forward with something we don't know about, we don't think there's anything on the horizon," Sass said. "The bishop has tried to reach as many people as possible." Chris Dettro can be reached at 788-1510 or by e-mail:chris.dettro@sj-r.com
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