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	Downturn Leaves One-third of Boston's Catholic Parishes in the Red By Lisa Wangsness Boston Globe June 10, 2010 http://www.boston.com/news/local/breaking_news/2010/06/downturn_leaves.html [archdiocesan financial report] One-third of parishes in the Archdiocese of Boston were operating at a deficit at the end of the last fiscal year, and the economic downturn in 2008 hit its pension funds for both priests and lay employees hard, according to the archdiocese's annual financial report for the fiscal year that ended June 30, 2009. The report, released this afternoon, said the priest pension fund is currently $104 million underfunded, and the lay pension fund, which was fully funded in 2007, was only 75 percent funded as of last June. The fund has recovered somewhat and was 82 percent funded as of March 31, the report said. But archdiocesan financial officers say the church's long-term financial situation has improved dramatically since Cardinal Sean P. O'Malley arrived in 2003 and the church was staring down a $15 million operating deficit. Plans are being developed to address the pension fund gaps -- the lay pension fund should be fully funded by 2014, officials said -- and the archdiocese is on track to achieving a balanced budget in the fiscal year ending June 30 for the first time since O'Malley arrived, church officials said.Still total operating revenue and support decreased $8.9 million last year compared with the year before, and collections from weekly contributions to parishes were down 2 percent, reflecting a 2 percent decrease in Mass attendance. Meanwhile, costs were up because of increased need and employee salaries. The total amount expended to settle claims arising from sexual abuse in fiscal 2009 was $3.6 million, which included attorney costs and payments for 27 victims. "The challenges are substantial," Chancellor Jim McDonough isaid in a statement. "The parishes have to increase revenues to fund staffing, in order to provide adequate services for parishioners. Our schools must raise tuitions to cover operating expenses and also seek additional financial support to subsidize students from low income families. Central ministries must achieve a balanced budget and also increase financial support for Cardinal Sean's mission and vision."
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