Over that period, total income increased less than 1%. Weekly collections increased 5%.
While tuition income decreased 2.5%, school expenses decreased 10%. Last year's school expense was $1,269,169, while tuition was $1,040,692. I interpret that as a parish subsidy of $228,477 or 18%. The subsidy in 2001-2002 looks like 24%. (When I was on the parish council, the goal was 40% tuition, 40% subsidy, 20% other, e.g., endowment. If that's still a goal, it's getting further away.)
The summary says,
As of June 30th, the outstanding balance on our building/renovation loan totaled $3.2 million. The projection calls for debt to be repaid at the rate of $32,500 per month.
Oddly enough, the summary doesn't provide the annual figure, $390,000. It also lacks the history of prior payments on this debt, and does not project contributions toward this debt in the current fiscal year. Even if a projected operating budget surplus of $47,659 is available for mortgage payments, the parish needs an additional amount equal to 15% of the projected operating income to pay the mortgage. This seems to me to be a potentially serious problem, and the parish seems to be avoiding spelling it out. Today's bulletin [2.5mb PDF p. 4] does show weekly contributions to date have fallen 4.6% below budget.
The parish financial problem, then, has two causes. On the income side, giving is flat. Nothing is done to address this, I suspect because it can't be done with the usual brush-off, run-around, stonewall, blow-up, or co-opt. On the expense side, the parish couldn't afford the building/renovation project. Discussing this is also avoided, I suspect because of all the parishioners who can say "I told you so." Rather than deal with these real problems, I anticipate a push to close the parish school.
The "school as a financial drain on the parish" argument has been made for years by certain elements of the parish - an argument which seems to have been implicitly accepted by our former parish priest. Those same elements in the parish also coincidentally advanced an extravagant, unnecessary, and ultimately unaffordable building project.
ReplyDeleteThe only reason the school became a financial problem was because of the retention of a principal who was not found acceptable by a large number of school families, yet who was kept on board by our parish priest for reasons that still elude the understanding of anyone who has served on the school committee for the past 8 years or so. This one factor led to a signficant decline in enrollment - of course this was disputed by our former parish priest who claimed it was related to changes in local demographics - a claim devoid of statistical support.
Fortunately, things have changed dramatically with a new priest, a new principal, and a new enthusiasm amongst school families. You can expect any "push" to close the school will be met with vigorous opposition - and may have severe and direct impact on revenue.
Revenue by the way will be enhanced more than anything by an effective homilist - which we now seem to have for once in more than 16 years.