MINNESOTA
Minnesota Public Radio
[with video]
Molly Bloom, Meg Martin, Madeleine Baran
Nov 20
The Archdiocese of St. Paul and Minneapolis said it is considering bankruptcy after releasing financial reports showing a roughly $9.1 million operating deficit for fiscal year 2014. The archdiocese blamed its uncertain financial situation on the costs of clergy sex abuse litigation and the growing potential for more lawsuits by victims.
Archbishop John Nienstedt called the situation “disheartening,” but assured parishioners that the finances won’t directly affect parishes or other Catholic institutions.
Since the bulk of the money that sustains the archdiocese and its programs is housed in legally separate entities, it can attempt to protect its assets and fundraising.
How common is it for dioceses to file for bankruptcy?
At least 11 dioceses in the U.S. have filed for bankruptcy in the past ten years. It’s becoming more common, especially as dioceses are hit with a large number of clergy sex abuse lawsuits at once.
Not every bankruptcy is the same, however. In Milwaukee, for instance, the process has been slow, and victims haven’t seen any compensation. The process in Portland, Ore., lasted 33 months. But in other places, such as San Diego, the process has been much faster.
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