The number of parishes in the Roman Catholic Archdiocese of Chicago that are running budget deficits is higher now than at any other time in history, according to financial statements released Thursday.
Fifty-four percent of the 378 parishes in Lake and Cook Counties either operated in the red or received an operating grant from the archdiocese last year, said Jim Rojek, acting director of finance for the archdiocese.
In fact, the number of parishes running deficits has jumped 20 percent since 1996.
Such news could spell trouble for the system’s 283 elementary and high schools, which rely, for the most part, on funding from the individual parishes.
“A major factor of the deficits is the archdiocese’s commitment to Catholic education,” Rojek said. “Rising costs and enrollments that have decreased over the past three decades have placed financial stress on that commitment.”
The news is not completely bleak: The archdiocese as a whole brought in $18.6 million more than it spent in fiscal year 1997, marking its third straight year in the black. Parishes and the archdiocese brought in $470.3 million–a 7.3 percent increase over last year.
Still, those increases may not be enough to offset rumored school closings.
A task force formed by the archdiocese two years ago already is mulling proposals to close or merge some schools in the nation’s second largest Catholic school system.
Officials have indicated that some schools, especially in the city of Chicago, will have to close or combine. A few new schools will be built, specifically in Lake County and in the southwestern suburbs of Cook County.
The task force’s final report is scheduled to be submitted to Archbishop Francis George in the spring.
Regardless of the financial picture, Rojek said officials are committed to ensuring the availability of Catholic education in all areas of the archdiocese.
That is a tall order, though, considering the recent financial report.
Even the parishes that are operating in the black are on a downward trend financially, Rojek said. While total collections are up 2.1 percent, collections did not keep pace with inflation. And the 2.1 percent increase is lower than it has been in the last three years.
“It’s not cause for alarm, but we have to be concerned about the future and where the funds will come from,” Rojek said. “If nothing is done and things continue as they are, we will be looking down the road to a point where these parishes use up their savings and then become dependent on the archdiocese.”
Rojek said the financially troubled parishes are spread throughout the archdiocese.
Also, for the first time in several years, the percentage of school operating costs covered by tuition and fees is down–reversing a six-year trend. In other words, schools had to draw more from parish reserves or from the archdiocese to help meet the rising costs.
Under church law, surpluses from one parish may not be directly used to offset financial problems of another.
“We recognize what these numbers mean, and we do have offices in place to see what we can do to bring these parishes back into the black,” Rojek said.
The archdiocese’s Pastoral Center, which covers ministerial and administrative operations, also experienced a slight deficit. For fiscal year 1997, the center collected $146.3 million in revenue but spent nearly $147 million. But the center’s investments showed gains and appreciation of $18.3 million.
