March 6, 2009

Bishop Gettelfinger: ‘Everything is on the table’

By PAUL R. LEINGANG (Message editor)

Editor’s note: Following is the first in a series of articles on questions asked — and answers given — at a series of “Bishop’s Town Hall Meetings” last fall. Bishop Gettelfinger has stated that strategic planning will be based on the principle that “everything is on the table.”

Among the questions submitted to Bishop Gerald A. Gettelfinger in the fall of 2008 were many questions and comments related to financial matters. Tim McGuire, the chief operating officer of the diocese, sorted them into the following group of three questions.

Questions

Our parish had to cut staff due to insufficient funds to support the positions. Is the diocesan office reviewing their headcounts to determine which positions can be financially supported, rather than just continuing to increase CPC?
Does the diocese rely heavily upon investment income for its operating budget? If so, in light of the current economic situation, is the diocese prepared to make spending cuts or will the revenue be replaced in the form of higher CPC assessments on the parishes?
Why can’t the CPC be run like a parish budget. You monitor your spending and only spend what you take in? The CPC is planned from a budget, and the dollars are guaranteed from each parish. I think the CPC process needs to be re-viewed and changed.

Response to Question #1

This question (and all others) were asked prior to the recent announcement by Bishop Gettelfinger that staffing cuts and a budget reduction were being made at the Catholic Center.

A recap of budget-reducing actions includes the following steps that were detailed in the Message Feb. 13:

The CPC goal is cut back to $5,162,869, an amount 1.77 percent lower than the previous year.
There will be no cost of living increase for the fiscal year 2009-2010 for the bishop, priests, diocesan directors and staff members. (In previous years, the increase had averaged approximately three percent.)
Director positions will not be filled in three diocesan offices: Steward and Develop-ment, Catholic Schools, and Ac-tivities and Facilities.
The subsidy to Catholic Charities is reduced by $100,000; the agency will draw from a “rainy day fund” to continue services.
The print shop at the Catholic Center will close, with the loss of a job for the print shop operator.
Work hours are being re-duced for three employees.
Department directors have been instructed to reduce their budgets by 10 percent.
Holiday gatherings at Christmas time are cancelled.

Timeline

The fiscal year for the diocese begins Sept. 1 and continues through Aug. 31. The recent steps to reduce expenses will have their full impact in the fiscal year 2009-2010, which begins Sept. 1, 2009.

The budget for the fiscal year 2009-2010 was prepared in a pro-cess that began in September of 2008, at a time when the depth of the recession was not foreseen.

Tim McGuire, chief operating officer for the diocese, laid out the budget preparation steps at the town hall meetings.

Following the establishment of budget guidelines in September 2008, department directors prepared their proposed budgets in October and November. They were reviewed by COO Tim McGuire, the diocesan treasurer, Bob Cox and by Bishop Gettelfinger in December.

In January 2009, as the economy worsened, a committee of priests and lay persons examined the proposals and recommended steps to reduce expenditures.

Following revisions to the earlier proposals, the revised budget was presented for consultation with the Priests Council, the Diocesan Finance Coun-cil and the Diocesan Pastoral Council — and the resulting budget-reduction efforts were announced in mid-February.

‘Painful steps’

In a letter to the Catholics of the diocese, also published Feb. 13 in the Message, Bishop Get-telfinger said the “painful steps” were being taken “in recognition of the existing burdens facing you and all our parish communities.”

He asked “parish and institutional leaders” to follow his leadership “in recognition of the stresses placed on all families and parishes at this time.” And he urged parishioners “to continue your generous support of your respective parishes and a like response to your parish portion of the Catholic Parishes Campaign.”

He concluded, “These tough times call each of us all to share our best of time, talent and treasure.”

Next week: Response to Question #2, in regard to what portion of the diocesan budget relies on investment income. New questsions may be submitted to message@evansville-diocese.org.