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After priest scandal, Catholic Diocese’s financial rebound is heavenly
November 13th, 2008, 6:30 am · 6 Comments · posted by Teri Sforza, Register staff writer
When the Roman Catholic Diocese of Orange paid $100 million to victims of priest sexual abuse in 2005, it was the largest such settlement in history.
Only half of the settlement was covered by insurance; the other half had to come from the Diocese itself.
Backed into similar financial corners, other dioceses declared bankruptcy or sold church property to fulfill their obligations. Here in Orange County, there was talk about selling the Diocese’s offices. “Those settlements left the Administrative Offices with a $50 million debt, depleted reserves and a deficit in undesignated net assets of $23 million,” a Diocese statement said.
About a dozen people lost their jobs. Belts were cinched tighter. The Di
ocese took out a loan - and less than one year later, paid off the entire $50 million. How? By liquidating part of its $200 million investment portfolio and dipping into profits from its cemetery and other businesses.
A turn-around year, Bishop Tod Brown said at the time. And that turn-around continued.
The Diocese’s audited financial statements for the fiscal year ending June 30, 2007 show that:
- Its assets climbed nearly 17 percent between 2006 and 2007 - to $291 million from $248.6 million.
- It nearly doubled its cash on hand, to $23.3 million from $12.3 million.
- Long-term investments grew about 14 percent, to $209.9 million from $184.4 million.
- The checking accounts for its parishes and schools grew more than 10 percent, to $136.5 million from $123.6 million.
What is it they say about confession being good for the soul? Perhaps it’s good for the bank account as well.
(When The Watchdog showed off the Diocese’s audit to a colleague who shares our passion for poking through financial documents, his eyes widened. “Who did you have to kill to get that?” he gasped. When we told him the diocese’s audits and budgets were posted online, he was shocked. Churches are not required to disclose their finances. We commend the Diocese for this startling bit of financial transparency.)
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the catholic church is still corrupt as of today.
nothing much has changed.
so much for non-profit organizations. what do they do with all that money? give it to the needy, the sick,feed and clothe the children of third world countries? this sunday we’ll have three collections. how do they get insurance to pay $50 million dollars for sexual predators.
No more of our family’s money - ever. Check out the movie “Deliver Us From Evil”.
As long as there are idiots who will hand over their money to the pedophile enabling dioceses the church will bask in riches. You have to remember. The large majority of their parishioners are either peasants or brainwashed sychophants who are either unaware or completely oblivious to the reported illegal activities promoted by their clergy. Human brainwashing is an extremely profitable venture.
I’m glad that the diocese has been able to bounce back. It shows the viability of a living church of 2000 years. The faith and its practices have not changed. Justice was served by paying those who were wronged and the Church has been humbled. However, I will continue to give money to my Catholic parish every month because I know that while a few bad priests may have scandalized the entire country, there are still so many who are tirelessly serving us, offering Mass every day, saying funerals, baptizing babies, annointing the sick, hearing long lines of confessions, teaching in schools and marrying couples. Then there are the priests I know that do even more than a wordly person could ever imagine. Give priests the credit they deserve and recognize the difference they make in every community in every corner of the world. Who can say they do the same?
The church needs to recognize that the the position of parish priest conveys; a position of honor, trust and worship; a perfect place for a pedifile to stalk. A priest is not necessarily a gay or pedifile, but it’s the perfect place for one to hide and prowl. Priest should be allowed to marry, so many potential pastors and qualified people can not lead a church because they are married. Let married people lead the church and the Catholic church will prosper.