PHILADELPHIA (PA)
Roman Catholic Archdiocese of Philadelphia
These potential actions follow the recent release of the Archdiocesan financial report and seek to rebuild a solid financial foundation for the Church of Philadelphia
Contextual Background
This July, the Archdiocese of Philadelphia published audited financial statements for the fiscal year ended June 30, 2012. The financial statements disclosed a $39.2 million operating deficit for that period as well as several very significant and ongoing balance sheet issues that measure in the hundreds of millions of dollars.
Since his arrival in Philadelphia nearly two years ago, Archbishop Chaput has repeatedly expressed his commitment to financial transparency and prudent stewardship of the resources of the Archdiocese. Beginning last summer, a series of steps were taken to begin to remedy Archdiocesan fiscal challenges. The Archbishop’s residence along with a property in Ventnor, New Jersey, were both sold to provide necessary immediate cash flow. Many other actions followed including a reduction of 25% of the workforce at the Archdiocesan Pastoral Center in order to stem the operating deficit. Additionally, an evaluation of various Archdiocesan real estate assets and operating entities was undertaken. This evaluation focused on assets that could potentially be used to remedy the balance sheet issues. None of those measures were taken lightly, but all were essential to maintaining the presence of the Catholic Church in the Philadelphia region and the good works accomplished through its various ministries.
Background Regarding Today’s Announcement
Among the operating entities evaluated were Catholic Health Care Services and the Office of Catholic Cemeteries, which have both been well managed for many years. As a result, Archbishop Chaput has decided to market the six nursing homes and one assisted living facility operated by Catholic Health Care Services for potential sale. He has also decided to pursue a possible outsourced management and leasing agreement for the 11 active Archdiocesan cemeteries and two sites designated for future cemetery development.
In making this announcement, Archbishop Chaput said, “Our difficult financial situation must be addressed and the actions that we need to take may be painful ones. I understand this fact fully, but it is of critical importance that we rebuild our financial foundation so that we can continue our collective good works.
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