CHICAGO (December 16, 2004) The financial report for its fiscal year ending June 30, 2004, indicates that the Catholic Archdiocese of Chicago has once again increased its net assets. However, some parishes and the ministries operating out of the Pastoral Center continue to experience unacceptably high operating deficits.

These financial figures reflect the success of the parish capital campaigns but still are not demonstrating the effect of the short-term and long-term plans that were implemented by the leadership of the Archdiocese in recent years to reduce and even eliminate these operating deficits.

“The mission of the Catholic Church is to spread the Gospel of Jesus Christ and ensure that Catholics connect to each other and their communities by sharing the gifts that Christ gives us for the salvation of the world,” said Francis Cardinal George, O.M.I., Archbishop of Chicago. "Archdiocesan leadership understands the challenges to successfully continuing this mission, and is pursuing innovative ways to manage our revenues and expenses. Despite the difficulties of the present financial situation, we will meet those challenges.”

The 374 parishes, 235 elementary schools and the 6 high schools that are supported by parishes and/or the Archdiocese went from an operating deficit of $36 million in fiscal year 2003 to a deficit of $49.5 million in fiscal year 2004. The parishes increased their net assets over 2003 by $10.9 million to $946 million, an increase of 1.2 percent. The improvement was primarily the result of the continuing Millennium fund-raising campaign.

“Ordinary contributions, such as those received on Sundays, Holy Days, Christmas and Easter, represent the largest source of parish contributions and grew by 3.6 percent on a per person basis,” notes Thomas Brennan, director of finance for the Archdiocese. “Unfortunately, there was a 2.8 percent decline in the number of people attending Mass on a regular basis, resulting in a minimal .3 percent overall increase in donations.”

On the whole, the parish trend declined further in the past fiscal year with a number of parishes facing significant financial challenges. Given the age of many relatively large parish complexes, it can be difficult to maintain them while still having smaller than average congregations that continue to cope with complicated socioeconomic situations.

“In the last fiscal year, 14 percent of the parishes reported surplus or breakeven operating results,” Brennan said. “This is down from four out of ten just a few years ago.”

School revenue increased 1.6 percent to $257 million while school expenses increased 2.2 percent to $314.5 million. School revenue also includes support from The Big Shoulders Fund, an independent organization that provides scholarship funding for some students attending Catholic schools in the neediest parts of Chicago. The difference was made up by subsidies provided to schools by parishes and by grants given to the schools from the Pastoral Center.

The Archdiocese’s Pastoral Center provides a broad range of services and support to the parishes and schools and the Catholic population of Cook and Lake counties. For the year ending June 30, 2004, the Pastoral Center had a deficit from operations of roughly $8 million, which is significantly better than the $88.5 million deficit experienced in fiscal year 2003. The continuing deficit was the result of the high level of grant support to parishes and high expenses related to the Archdiocesan insurance program.

“The Archdiocese continues to resolve claims that have been filed for past instances of clerical sexual misconduct of minors,” Brennan pointed out. “During the past fiscal year, the Archdiocese spent $18.2 million to settle various claims. However, no contributions made to parishes, schools, or the Pastoral Center are used to fund misconduct settlements.”

In the past fiscal year, the Pastoral Center received $1.3 million in general contributions and bequests and another $4.5 million after expenses from the Archdiocesan Annual Appeal. These figures are down from last year, but still represent an important source of income to fund grant support to parishes and key ministries and programs offered by the Pastoral Center.

A few years ago, the Archdiocese implemented measures to reduce spending at the Pastoral Center. This year marked the first time in four years that spending at the Pastoral Center increased, but that increase was due primarily to special circumstances.

“A major contributor to the increased spending was the Pastoral Center support in 2003 of the Festival of Faith, a first-time event that brought together Catholics from around the Archdiocese for a weekend of liturgies, programs and fellowship,” Brennan explained. “Other factors were the start-up costs for the “Covenant to Protect Children” initiative (a safe haven program), and the increase in costs for health and pensions benefits that all organizations are facing.”

Archdiocesan investments showed gains of $18.9 million, more than double the $8 million last year. The investment gains have been a significant boost to the long-term financial health of the Archdiocese.

“Our prudent investment policies have enabled us to gain a return that is higher than the market benchmark,” Brennan noted.

The complete Annual Report of the Archdiocese of Chicago will be an insert in the December 19 edition of The Catholic New World and can also be accessed through the official web site of the Archdiocese of Chicago at www.archchicago.org.

The Archdiocese of Chicago serves approximately 2.4 million baptized Catholics who live in Cook and Lake counties in northeastern Illinois. The Archdiocese is headed by Francis Cardinal George, O.M.I., Archbishop of Chicago. It employs approximately 15,495 people in its parishes, schools, charities, seminaries, cemeteries and administrative offices.