PHILADELPHIA (PA)
Roman Catholic Archdiocese of Philadelphia
Plan will stabilize central office operation, ensure long-term financial stability and position the Archdiocese for future growth
Today, the Archdiocese of Philadelphia announced steps aimed at cutting a projected deficit exceeding $17 million for the fiscal year beginning July 1, 2012. The Archdiocesan Pastoral Center, comprised of the Office for Financial Services and including more than 40 ministry programs and offices, has operated with significant deficits for many years. The restructuring – approved by Archbishop Chaput after a comprehensive review of operations — includes a staff reduction involving 45 positions, the merging and consolidation of 19 offices and/or ministries, the ceasing of The Catholic Standard & Times and the suspension of Phaith Magazine. The Archdiocese is also planning no raises for remaining staff in the next fiscal year. These steps will sharply reduce the expected deficit, provide better stewardship for operations, and help ensure improved financial health.
The extraordinary legal and professional costs of the past 16 months, while burdensome, played little role in the current budget decisions, according to the Archbishop. The financial and organizational difficulties facing the Archdiocese are structural and have been building for many years. They can no longer be sustained, and all of the Church’s works must return to a spirit of careful stewardship.
All employees released in the staff reduction will receive 60 days of pay in lieu of notice and full-time employees will be eligible for one week of severance pay for each year of completed service. All affected employees will also be paid for accrued and unused vacation time. In addition to severance, the Archdiocese will also provide medical coverage through September 30 and departing employees will be eligible for a COBRA-like benefit for the six months following. The Archdiocese of Philadelphia will also contract with a third party firm to provide job counseling and career services, and protocols are in place to match displaced employees’ skills with openings in other offices, including Catholic Social Services and Catholic Healthcare Services, which were not impacted by this restructuring and maintain separate budgets.
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