Diocese of Scranton reports $3.1M deficit

BY ERIN MOODY (Times-Shamrock Writer)
Published: February 20, 2010

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The Diocese of Scranton reported a growing financial deficit in 2009.

The deficit for fiscal 2009 totals $3.1 million, increasing from a $502,460 deficit reported in 2008. Financial statements published Thursday in The Catholic Light, the newspaper of the diocese, show the financial health of the 11-county diocese continues to decline.

The diocese also saw a $15.4 million decline in the net value of its assets. Of that, $7.1 million is attributed to bad debts, from parishes that borrowed money to fund Catholic schools. Last week, the diocese said it had $15.2 million in school-related loans that are not being repaid, and $6 million in delinquent parish assessments.

Another $3.6 million of the 2009 asset decline is related to changes to the pension system, according to the financial statements. An additional $1.5 million is from unrealized losses on investments, an effect of the struggling economy and financial markets.

Improved market performance this current fiscal year could help the diocese recover some value of its investments, according to a letter from interim leader of the diocese Cardinal Justin Rigali that was published in the newspaper

"While the diocesan finances are deeply troubling and present formidable challenges, with God's help we will find creative ways to meet the challenges and reverse the significant losses that are evident in the published financial statement. I ask for your prayers for our Diocese," Cardinal Rigali wrote.

In an effort to improve the diocese's financial outlook, officials and parishes are working together to set up schedules for repaying loans, a wage freeze is in effect and the defined-benefit pension plan was frozen in at the end of June and replaced with a defined contribution plan, according to Cardinal Rigali.

During 2009, the diocese had a $3.1 million operating deficit, as compared to a $502,460 deficit in 2008.

In a bright note, donations and bequests jumped from $28,000 in 2008 to $1.4 million in 2009. The reason was not clear from the report.

In January, the diocese reported the current annual appeal has raised $4.48 million, about 85 percent of the $5.3 million goal.

The audit was prepared by McGrail, Merkel, Quinn & Associates, of Scranton, and reflects finances from July 1, 2008 through June 30, 2009.

Contact the writer: emoody@citizensvoice.com

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1 posted comments

This does not surprise me at all. Given the fact that Catholics in Scranton suffered under the leadership of Bishop Joseph Martino (and his iron-fisted tactics) for these years---I'm happy to learn that they do not have a deeper deficit than they do.

The Vatican needs to learn that, if they are not going to let the people select their own bishops (as was customary in the early Christian churches), then the least that it can do is appoint PASTORAL bishops who really care about ALL the people---who get out and visit and talk to their people.

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Little Bear,  02/20/10 5:03