An Update on Our Financial Situation from Bishop Stephen Blaire

Diocese of Stockton June 17, 2013

An update on our financial situation from Bishop Stephen Blaire

As you know, our Diocese announced recently that it is facing a very serious financial situation. And, not surprisingly, this announcement has led to numerous questions from our parishioners, our community partners, and from the news media.

In each case, we have tried to answer the questions as honestly and as thoroughly as possible. At this stage, however, there are many questions to which we do not have answers. We are looking carefully at our financial situation and trying to understand just what our options are.

The “Stockton Record”, the “Modesto Bee” and the “Lodi News-Sentinel” each have asked if we are going to declare bankruptcy, and what such a filing would mean for our parishes and others. I have told each of them the same thing: it is too early to say exactly just what course of action we will follow.

The newspaper stories also have included input from those who are critical of the diocese and doubtful of our motives. While I do not think I will change their minds, I would like you to know what we have said in response to some of the claims.

Our Diocese has an annual budget of about $5 million, out of which it pays salaries, provides benefits, and runs a number of ministry and training programs that serve communities throughout the Diocese. These funds come primarily from the Bishop’s Ministry Appeal and from the“service fee” assessed to the parishes.

Other funds do not belong to the Diocese, but to the separate corporations. These include the funds of our 35 separate parish corporations, which belong to the people of each parish. Also included in these non-diocesan funds are those belonging to St. Mary’s High School, Central Catholic High School, Catholic Cemeteries, Catholic Charities and others.

It would not be fair if our parishes or these separate entities were to suffer financially because of the action or inaction of the Diocese in decades past. Parish funds are not the Diocese’s to distribute or to surrender. It is only the corporation of the Diocese itself that faces financial obligations it will not be able to meet due to the depletion of its reserves.

Throughout this challenging time, I want each of us to remember that we do have a financial and moral obligation to those who have suffered abuse at the hands of the clergy. The evil of sexual abuse has inflicted deep wounds, and we must always keep the victims in our prayers. As we consider our financial future, it is essential that we find a way to meet all our obligations, including to those victims who have not yet had their day in court.

Likewise we have an obligation to continue to serve the 250,000 people of our Diocese, as well as the poor and the vulnerable in our community. Please continue to pray for our Diocese as we discern a path forward that enables us to meet our responsibilities as a Diocese.