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	Archdiocese Cutbacks $1 Million in Wake of Bankruptcy Case By Ed Langlois Catholic Online May 3, 2006 http://www.catholic.org/national/national_story.php?id=19693 PORTLAND, Ore. – In a letter to western Oregon's 390,000 Catholics, Archbishop John G. Vlazny pointed to positive developments in the church as a "larger context" for understanding the Archdiocese of Portland's bankruptcy case. The letter, released at Masses April 30, also announced a $1 million budget cutback at the Archdiocesan Pastoral Center. The archbishop cited the hundreds of Oregonians who entered the church at Easter, the high number of seminarians, the strength of Catholic schools, church assistance to vulnerable people and the continued preaching of the gospel as reasons "for the hope and the faith that I see in the faithful of this archdiocese." "Regardless of what may happen in the bankruptcy case," Archbishop Vlazny said, "we face serious cash flow problems." He said $1 million "in services to the parishes and schools" will be trimmed for the next fiscal year, beginning July 1. "I am concerned about the effect of these cuts, not only on those whose jobs will be affected, but also on all those who depend on services and programs that may no longer be available," he wrote. Where the cuts will come has yet to be decided, he said. Parishes may need to provide some of the services now offered by the pastoral center. Approaching the close of its second year, the bankruptcy case now has many facets. Lawyers for victims have argued that parish and school real estate and assets should be used to pay abuse settlements. Canon law prohibits that, since parish property belongs to the parishes, not the archdiocese. But in December, the bankruptcy court ruled that the parishes are not separate from the archdiocese and that bankruptcy law allows the elimination of parish and school interest in their real estate. The archdiocese, parishes, parishioners and schools have appealed the decision and arguments are expected in the fall. Still in the air is the question of whether using parish property for settlements would violate the rights of parishioners or charitable trust law. "The court did not rule that any specific assets are available to pay claims; only that certain real property is potentially available," the archbishop wrote. The bankruptcy court later suggested that the court arguments would need to run their course before parish and school property would be considered available to pay claims. The archdiocese is also trying to protect an endowment fund started in 1981. A court ruling is expected in the next few months. The archbishop assured Catholics that mediation is continuing on the property case and said the support of parishes and parishioners will be crucial in the effort to reach a mutually acceptable settlement.
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