Catholic Archdiocese Projects Shortfall

The Roman Catholic Archdiocese of Los Angeles expects to end the current fiscal year with a $1.8-million operating deficit, causing officials to maintain a hiring freeze and consider more cutbacks.

That expected deficit would be the second in as many years for the central headquarters of the nation’s largest Roman Catholic archdiocese, according to a financial statement made public this week.

The projected $1.8-million deficit represents 2% of the $90.3-million operating budget for the fiscal year, which ends June 30. Last year’s operating deficit was $6.2 million. The report does not cover local parishes and independent units such as schools and seminaries.

Last year, the archdiocese laid off 60 central office workers and closed down or drastically reduced at least eight central office ministries. The latest report said that another 10 workers more recently had been given early retirement packages, bringing the total number of jobs cut to 70 over the two years.

“We’re looking for ways to continue to reduce administrative costs and run the administrative office as efficiently as possible. We owe that to the people of the archdiocese,” spokesman Tod Tamberg said. He said it was too soon to say whether more layoffs would be necessary.

Even if the stock market continues to rebound in 2004, as many financial analysts expect, any gains in the archdiocese’s investment portfolio would first be used to build up the reserves it has used to cover shortfalls rather than to fund operations, the report said.

Among other costs in the 2003 fiscal year, the report said, was $5.4 million in legal fees connected with the sexual abuse scandal. Insurance is covering an unspecified portion of those costs.

Looking ahead, the document said: “The administrative office expects it will incur substantial future charges related to the defense of such matters, but cannot reasonably estimate the future reimbursement of the potential costs that it may incur.”

Raymond P. Boucher, who acts as court-appointed liaison for sexual abuse cases filed in Southern California against the church, has estimated that as many as 500 people have sued the Los Angeles archdiocese.

Despite the sexual abuse scandal, Cardinal Roger M. Mahony said that giving was on the increase in local parishes and to an archdiocesan fund to subsidize poor parishes and schools, known as Together in Mission. Donations to that fund rose to $13.9 million last year from $13.4 million the year before.

“Even in these times of stress in the church, your contributions