MINNESOTA
Star Tribune
Article by: AMY FORLITI , Associated Press Updated: November 20, 2014-
MINNEAPOLIS — The Archdiocese of St. Paul and Minneapolis reported a $9.1 million operating deficit for fiscal year 2014 and said Thursday that it is considering filing for bankruptcy as its financial condition has become more uncertain due to the growing potential for more lawsuits by victims of clergy sexual abuse.
The archdiocese released its financial information in its newspaper, The Catholic Spirit, more than a week after it announced it was cutting its budget by 20 percent and making unspecified staff cuts. Archbishop John Nienstedt called the situation “disheartening,” but assured the faithful that the finances won’t directly affect parishes or other Catholic institutions.
“I am determined to see that the ministries and essential services provided by the Chancery Corporation will continue and that we will strive to minimize the impact of cutbacks on our Catholic people and the larger community,” he wrote.
The archdiocese said the operating deficit can be partly attributed to $4.1 million spent to address allegations of clergy sexual abuse since May 2013, when a three-year window opened up for abuse victims to file claims that were otherwise barred under the statute of limitations.
Chief Financial Officer Thomas Mertens said outside professionals were brought in to provide legal, investigative and financial expertise, and the majority of expenses were related to a review of priest files, investigation of insurance coverage and analyzing financial options.
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