Archdiocese Announces Budget Cuts Affecting Employees, Programs

By Megan Stewart
KSTP
November 9, 2014

http://kstp.com/news/stories/S3614221.shtml?cat=1

The Archdiocese of Saint Paul and Minneapolis this weekend announced 20 percent in spending cuts, which is about $5 million worth of reductions in jobs and programs.

Archdiocese officials say these cuts don't directly affect the budgets of parishes, Catholic schools and other local Catholic groups because they operate independently.

"Even without including unanticipated legal and other outside professional fees, our current operational budget is unsustainable," the Reverend Charles Lackowitzer of the Archdiocese said in a statement.

The archdiocese, along with the Diocese of Winona, says they're considering all options to help pay for a historic settlement.

Although the exact amount of the settlement is confidential, experts say it will likely cost the Archdiocese tens of millions of dollars - perhaps more money than the Catholic church can afford.

A Minnesota judge signed off on the settlement Monday in a groundbreaking case that accused Catholic church leaders in Minnesota of creating a public nuisance by failing to warn parishioners about an abusive priest.

Michael Tierney is especially interested in the financial fallout. He's one of the faithful: 825,000 strong in the Twin Cities, a member of the Catholic Choir, a husband and father.

"I just want to make sure the church does the right thing and sticks to the mission," he said.

While announcing the budget cuts, the Archdiocese stopped short of explaining exactly where those cuts would come from, and that's noteworthy to Catholic Legal Scholar Dr. Charles Reid.

"It would be nice to know what the mission includes," Reid said. "Does it include Catholic schools or charitable outreach, directly or indirectly?"

In a statement, the Archdiocese insists the reductions don't have a direct effect but didn't elaborate on subsidies.

In a report released this year, the Archdiocese showed $39.4 million in expenses and $35.5 million in revenue. That's a shortfall of nearly $4 million dollars. It also revealed a $5 million increase in legal expenses in one year.

Jennifer Haselberger is the whistleblower who resigned from the church alleging the mishandling of clergy sex abuse cases. In an email, she said the belt-tightening is about donors who are no longer willing to contribute, years of mismanagement by the Archdiocese and the failed effort to pass a constitutional amendment prohibiting same sex marriage.

The archbishop needs to approve the cuts, which could happen later this month.