NOTES $7 MILLION SUBSIDY

FOR PARISH SCHOOLS    

In response to the plight of parish elementary schools whose tuition and other revenues fell short of expenses last year, the Diocese of Brooklyn subsidized them with more than $7 million in direct assistance, according to the Vicar for Education of the Diocese of Brooklyn.

            Msgr. Michael J. Hardiman said Nov. 30 that the funds represented “a substantial commitment” by the Diocese, causing “a heavy strain” on the diocesan budget, a factor that “weighs heavily on future planning as we work toward maintaining quality Catholic elementary education for our young people.”

            The fiscal issue and the loss of close to 7,000 students in the last two years have created a two-pronged dilemma for the Diocese, he said. The enrollment crisis was made public in a statement he released at the end of October.

            In outlining the financial aspects of the problem, Msgr. Hardiman said that in the 2003/2004 school year, the Diocese assisted some two dozen schools that were $5,039,168 in arrears on medical insurance and pension plan payments. “This put a serious crimp into diocesan resources,” he observed.

As an emergency measure, at the end of the fiscal year on Aug. 31, Bishop Nicholas DiMarzio gave approval for the Diocese to cover the cost of those bills. The pastors of the affected parishes signed promissory notes providing for reimbursement to the Diocese when resources allow, Msgr. Hardiman said.

“Happily, some parish schools have begun a repayment plan,” he noted, while acknowledging that retiring the obligation will take those parishes many years to accomplish.

Msgr. Hardiman also said that last year 14 DEAN schools---an acronym for Diocesan Educational Advancement Network, those schools traditionally benefiting from assistance by the Diocese---received $1,558,000 from the Diocese.

In the 2004/2005 school year, the number of schools receiving assistance increased to 27, requiring at lease $2.8 million in assistance, he said. “Based on the current information I have seen, the total needed could be as much as $7 million.”

An additional draw on financial resources came about toward the end of the last school year when the Diocese committed $734,000 to 13 schools that did not have resources to meet their payrolls in the late Spring and early Summer and to two schools that encountered unanticipated fiscal shortfalls.

Msgr. Hardiman pointed to the efforts made by the diocesan Futures in Education Foundation to provide scholarship help to students and to fund technology and other programs in the schools. Last year, it amounted to $1,515,000, benefiting 2,549 students and 40 schools.

“It’s important to note that, unlike many other foundations and fund-raising entities, every dollar contributed to Futures in Education goes directly to assist a child in need or to fund a unique educational initiative,” he said. The Diocese underwrites the Futures in Education administrative budget of $250,000, he added.

Msgr. Hardiman said that another financial contributor to the educational mission of the Diocese is the Alive in Hope Foundation, which distributes funds drawn from the Alive in Hope campaign to assist various diocesan responsibilities.

Last year, the foundation gave a  $150,000 grant to help fund the offices of the Vicar for Education and the Superintendent of Catholic School Support Services, as well as  $250,000 in grants for technology and other school projects.

 “How grateful we are for the help our schoolchildren receive because of the generous and even heroic contributions made by the people who support Futures in Education and supported the Alive in Hope campaign,” Msgr. Hardiman said.

 “Those funds are especially important as we view the educational needs for this school year in light of the downturn in school enrollment,” he said. “The Diocese has budgeted slightly more than $3.7 million to cover unbudgeted shortfalls in schools adversely affected by the severe drop in enrollment.                                                                               

“Based on the current information I have seen,” he added, “the total needed could be as much as $7 million, $3.3 million more than was budgeted. The extraordinary diocesan commitment to Catholic elementary schools over the past two years totals just under $14 million.”

Given the limited resources of the Diocese, he said, “this would not be able to continue, making this the year that hard decisions will have to be made to put the schools on a more secure course into the future.”

Stating that Bishop DiMarzio has made “a wonderful commitment” to Catholic elementary education, Msgr. Hardiman said the bishop “remains confident that we will continue to provide Catholic elementary schools in as many areas of the Diocese as possible.”

He said this will require “tremendous support from all Catholics, even those who do not have children in the elementary schools, and from all parishes---those with schools and those not fortunate enough to have a school.”

The drop in student population will require some parishes to “step up and assist the school at an even greater level than had been budgeted,” he said. “Roughly 65 parishes have already budgeted nearly $4 million in assistance to their schools.”

Using St. Sebastian’s School in Woodside, where he is the pastor, as an example, Msgr. Hardiman said the loss of 31 students from last year has caused a $143,742 budget shortfall, which he said he hopes to supply from a variety of sources.