CNS STORY: Bishops vote down increase in diocesan assessments

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CNS Story:

BISHOPS-ASSESS Jun-20-2005 (400 words) xxxn

Bishops vote down increase in diocesan assessments

By Jerry Filteau
Catholic News Service

CHICAGO (CNS) -- The U.S. diocesan bishops June 17 voted down a proposed 4 percent increase in 2006 diocesan assessments to help fund that year's budget of the U.S. Conference of Catholic Bishops.

As a result, the 2006 assessments will remain at the same level as those in 2005.

Eighty diocesan bishops rejected the proposed increase. Many dioceses are facing financial difficulties and cutbacks at home because of poor investment returns for the past several years across the nation and in some cases because of sexual abuse settlements and other issues.

While there are 274 active bishops in the country, only the 193 who head dioceses can vote on diocesan assessments, and any change must be approved by two-thirds of them. Of the 166 heads of dioceses present and voting, 86 approved the increase but 80 rejected it.

The 80 negative votes assured the proposal's defeat since even a unanimous yes vote by the 27 remaining heads of dioceses could not bring the affirmative vote up to the two-thirds needed for passage.

Bishop Dennis M. Schnurr of Duluth, Minn., USCCB treasurer and chairman of the Committee on Budget and Finance, warned the bishops that even with a 4 percent increase, meeting the 2006 budget would involve drawing nearly $1.6 million from a $20 million reserve fund known as their "quasi-endowment fund."

Without the increase, which would have added about $480,000 to the conference's 2006 income, the projected withdrawal from the reserve fund is more than $2 million.

Each time the reserves are depleted, the conference earns less income from investments and becomes more dependent on diocesan assessments or other revenue sources to meet its budget, according to financial data the committee provided to the bishops.

In a separate action, by an apparently unanimous voice vote the bishops approved a commitment of up to $1 million from the quasi-endowment fund to help fund a major study on the causes and context of clergy sexual abuse of minors over the past half-century.

Bishop Schnurr said by initial estimates the study could cost from $2 million to as much as $5 million.

"Such a study is likely to receive substantial outside funding from foundations or others if the conference itself makes a significant financial commitment," he said in a report to the bishops.

The bishops committed themselves to such a study in 2002 as part of their "Charter for the Protection of Children and Young People."

END

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