April 3, 2009

The question series: Why can’t the CPC be run like a parish?

Editor’s note: Following is the third in a series of articles on questions asked — and answers given — at a series of Bishop’s Town Hall Meetings during the fall of 2008.

By PAUL R. LEINGANG (Message editor)

Three questions about diocesan finances

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? A response was published March 6.
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? A response was published March 13.
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 reviewed and changed.

The current process

All parishes of the diocese are assessed a portion of the cost of operating “the diocese.” Costs include the various diocesan offices that were established to provide the ministries and services that a parish or even a group of parishes could not provide on their own. Costs also include a share of the funds needed for the lay employee pension plan, which covers eligible employees at parishes, schools and other diocesan entities.

The portion assessed from each parish is based on a formula that uses the total number of parishioners who contribute $50 or more annually.

The Catholic Parishes Cam-paign is a mechanism set up for parishes to raise the money to pay the diocesan assessment. Without the CPC, or some other mechanism, the parish would pay the assessment from its Sunday offerings, or come up with an alternate way of raising the funds.

St. Benedict Cathedral parish in Evansville has taken such an alternate route, by establishing a campaign that is intended to provide for the diocesan as-sessment as well as specific parish improvements. There is no CPC at St. Ben’s.

Other parishes have urged parishioners to use a form of tithing, making an effort to end special collections and annual campaigns.

The assessment, in the words of Bishop Gerald A. Gettelfin-ger, “is nothing more than a tax” to pay for what is needed. Other sources of revenue for the diocese include fees (such as the Message subscription fee) and investment income (which has been reduced for the 2009-2010 fiscal year to $500,000).

The CPC goal for 2009-2010 is $5,162,869, an amount 1.77 percent lower than the previous year. The reduction was achieved through staff retirements and reductions and other cost-cutting measures.

Different than parishes

Parish income is largely drawn from the Sunday offerings. Diocesan income is drawn from fees, parish assessments and investment income.

The question posed for the Town Hall Meetings asks why “the diocese” could not be run the way a parish is run.

“I believe there are two reasons that the funding for the central functions of the Diocese cannot be funded in a manner similar to that of parish offerings,” said Bob Cox, diocesan treasurer.

“First, the parishioners of the diocese are members of a par-ish,” Cox said. “The parishes and parishioners are certainly part of the larger diocese. How-ever, a parishioner’s primary relationship is with the parish. CPC is an assessment to the par-ish. The parishioners, through their generosity, assist the par-ishes in meeting their parish assessment.”

The second reason given by the treasure relates to certain legal requirements, “that there are functions performed at the diocesan level that are required by both Canon and civil law.”

Additionally, Cox said, there are functions that can only be accomplished if the tasks are coordinated for all parishes. He cited as an example the diocesan Deposit and Loan Fund.

“This fund enables parishes with excess monies to deposit them, while making funds available for parishes with building or other emergency financing needs. These functions, while not having the appeal of direct outreach, are just as necessary and vital to the health of the diocese.”

Tim McGuire, chief operating officer of the diocese, pointed out that the budget for the coming fiscal year (2009-2010) had been revised because of the concern for the changing economy.