2022-23 Diocesan Finance Council Approved Budget Highlights
Highlights of the 2022/2023 Diocesan Chancery Operation Budget
By Angela Laville, Diocesan Finance Officer
The Diocesan Finance Council, at its meeting on June 10, 2022, recommended approval of the operating budget of the Diocesan Chancery Operation for the 2022/2023 fiscal year, which began July 1, 2022. Bishop James V. Johnston, Jr. subsequently accepted the recommendation. The review and approval of this ‘balanced’ budget by the Diocesan Finance Council is one of the two primary responsibilities of a Diocesan Finance Council which are stipulated in Canon Law, the other being the review of the annual audit. Thus, it is a significant and extremely important responsibility. Equally important is the responsibility of Bishop Johnston, his advisors and staff to present to the Faithful of our Diocese the content of the annual budget in that it is funded largely from your direct contributions through the Annual Catholic Appeal (ACA) and, indirectly, through an assessment of contributions (the “Cathedraticum” assessment) made at the parish level. Bishop Johnston and I have a responsibility to be clear in describing for you where the money comes from and how it is allocated. It is in this spirit of disclosure and financial accountability that we present here information regarding the 2022/2023 Operating Budget of the Diocesan Chancery Operation.
The operating budget of the Diocesan Chancery Operation reflects the functions and ministries coordinated at the Chancery Offices/Catholic Center and the three campus ministry locations. It is sometimes informally referred to as the Diocesan Budget or the budget of the Diocesan Administrative Offices. It does not include Catholic Charities, Catholic Cemeteries, the Diocesan Insurance Program, and the Deposit and Loan Trust, as well as our parishes and schools, all of which are separate entities that have their own budgets. Bishop Johnston’s Administrative Cabinet functions as the “budget committee” and I, as the Finance Officer, chair the budget process, which started in January with discussions regarding the significant topics and issues. These discussions of the “macro” issues led to the development of specific budget directives which were used by office and program directors to complete line-item budgets. The resulting balanced budget was, and is always, a true collaborative effort.
The total Diocesan Chancery Operation Budget for 2022/2023 is $13.94 Million, which is a 4.9% increase from 2021/2022. The budget, as it has been for at least the last 30 years, is a balanced budget and, in fact, could be considered a surplus budget, with a small surplus going to enhance certain key reserve areas relating to seminarian education, priests on special assignment and the care and upkeep of certain properties.
There are five primary sources of income which fund the operational budget (see pie chart).The largest source of income is the Diocesan Cathedraticum Assessment, which is an assessment on parish income based on a defined formula approved by the local bishop after consulting with the Presbyteral Council and the Diocesan Finance Council. The Diocesan Cathedraticum Assessment amount for 2022/2023 is $6.4 million, which is a decrease of $189,000 from 2021/2022. It represents 66% of our total income.
A second important source of income is the Annual Catholic Appeal, which raises funds for several of our important programs and ministries. For 2022/2023, the Annual Catholic Appeal is budgeted at $2.0 million. These funds go entirely toward our programs for education, catechesis and faith formation, vocations and seminarian education, various areas of pastoral ministry and social services/outreach. The total cost of these areas alone exceeds $3.0 million.
Another primary source of funding is “net” interest income, budgeted in 2022/2023 at $212,000. This income source is a net combination of three components and is calculated as follows: 1) the “net” interest income amount approved by the Board of Trustees of the separate Deposit and Loan Trust to be transferred to the Diocesan Chancery Operation ($400,000), PLUS 2) total interest and investment income of the Diocesan Chancery Operation less interest paid on deposits and internal endowments associated with the Diocesan Chancery Operation ($12,000), MINUS 3) an allocation to the Property and Casualty Operation as directed by the Diocesan Finance Council ($200,000).
The chart shows the operating budget by eight (8) major cost categories.
School Office Operation – income and expense associated with the office that oversees the administration of the elementary schools, the high schools, and the early childhood centers.
Direct School Allocation – direct payments to the Bright Futures Fund and the three Diocesan high schools.
Social Ministry – primarily a direct subsidy payment to Catholic Charities, as well as certain aspects of the Life & Justice Office, our Restorative Justice Program subsidy, the subsidy for the Ministry to the Disabled and certain housing initiatives.
Pastoral Ministries – operation of those offices that train and support pastoral ministers as well as offer many formational opportunities to the people and parishes of the Diocese. These offices include Worship, Family Life, Youth, Campus Ministry, Permanent Diaconate, some aspects of the Life & Justice Office, Hispanic Ministry and Evangelization/ Faith Formation.
Support of Priests/Seminarians – costs relating to (1) the canonical mandates of care and support of priests, (2) support and education of seminarians, (3) vocation awareness and development, (4) Bishop’s residence.
External Allocations – direct payments to support entities of the broader Church outside the Diocese. These entities range from the Missouri Catholic Conference to the U. S. Conference of Catholic Bishops to the Holy See.
Diocesan Administration – those administrative and systems costs that allow the Bishop to effectively oversee the 100-plus parishes, schools and other operations of the Diocese.
As in prior years, the creation of a balanced budget for 2022/2023 was challenging.
Included in the 2022/2023 Diocesan Chancery Operation Budget are several efforts directly related to our completed Diocesan Shared Mutual Vision and Pastoral Plan. First is $55,000 to fund the continuation of the Comprehensive Resource Study to help the Diocese ascertain how it can best equip itself for its Mission long term. Restricted contributions are to be used to partially offset this cost. Second is $220,000 to fund the next steps in the planning for ‘Journey to Bethany’, a healing center/function in the Diocese to respond to both the abuse scandal in the Church as a well as other challenges people confront which might require healing and pastoral care. The cost represents communication, website development, branding, and personnel costs. This overall cost is partially offset by $80,000 of outside funding. A third area is $50,000 for the continued feasibility study efforts related to a possible future retreat center/camp facility within our Diocese.
The seminarian education budget increased by $16,000 to approximately $953,000 with the number of seminarians projected at 19. This year the Chancery Operation will use approximately $457,000 of seminarian reserves to assist in funding the overall seminarian education budget.
The Chancery Operation continues its support of Catholic high school education and our three separately incorporated Diocesan high schools in the amount of $488,000. The support for Bishop LeBlond will be $130,000, the support for St. Pius X will be $58,000 and the support for the St. Michael the Archangel will be $300,000.
The fiscal year 2022/2023 represents the inaugural year of St. Joseph Catholic Academy. This will enable the three elementary schools, LeBlond High School and the early childhood centers located in St. Joseph, Missouri to operate in a more effective and efficient manner. The Chancery Operation is supporting this endeavor in the amount of approximately $242,000.
The Chancery Operation continues its support of parish ministry as well as support of our sister organization – Catholic Charities. The Diocesan subsidy to Catholic Charities is set at $358,500.
The Chancery Operation continues its support of the Bright Futures Fund at a level identical to last year -$455,000. It represents a continued strong Fund commitment to Catholic Education at Holy Cross School and Our Lady of Hope School.
Allocations will continue for several important ministries which are reflective of our commitment to supporting our various efforts of faith formation and discipleship, evangelization involving youth and adults, as well as serving the needs of the poor. These include the areas of Youth Ministry, Campus Ministry (three campus locations), the Office of Catechesis and Faith Formation, Family Life, Hispanic Ministry, Life & Justice, as well as our support of Catholic Charities, the Bright Futures Fund and our Diocesan High Schools. The budget also continues to fund at appropriate levels those offices, cost centers and programs which are canonically required or necessary to administer an organization like ours.
If you have any questions about this budget or other aspects of the financial operation/condition of the Diocesan Chancery Operation, please contact me at 816-756-1850 or firstname.lastname@example.org.
Angela E. Laville, Diocesan Finance Officer
Budget by Cost Category
|2022/2023 Allocation||Other Income||Total Budget|
|Direct School Allocations|
|Bright Futures Fund||455,000||0||455,000|
|Saint Joseph Catholic Academy||241,803||0||241,803|
|Housing & Community Services||6,000||15,000||21,000|
|Ministry to Disabled||30,000||10,000||40,000|
|Campus Ministry, NWMSU||161,334||82,500||243,834|
|Campus Ministry, St. Joseph||65,158||19,000||84,158|
|Campus Ministry, UMKC||38,942||0||38,942|
|Campus Ministry, Warrensburg||121,475||5,500||126,975|
|Campus Ministry Office||99,140||0||99,140|
|Criminal Justice Committee||2,000||250||2,250|
|Family Life Office||232,967||46,000||278,967|
|Journey to Bethany -Planning||50,442||170,000||220,442|
|Office of Catechesis & Faith Formation||195,516||68,613||264,129|
|Office of Divine Worship||222,742||5,000||227,742|
|Parish Based Ministry||135,000||10,000||145,000|
|Pastoral Care Committee||2,000||1,500||3,500|
|Permanent Diaconate Office||28,083||2,500||30,583|
|Retreat Center/Camp Feasibility||50,000||0||50,000|
|Young Adult Ministry||101,000||0||101,000|
|Support of Priests & Seminarians|
|Priests on Special Assignment||233,800||11,200||245,000|
|Retired Priests’ Health Insurance & LTC||160,000||400,000||560,000|
|Seminarian Support Event||0||20,650||20,650|
|Holy See Support||23,000||0||23,000|
|MO Catholic Conference||89,000||0||89,000|
|Bishop’s General Administration||69,150||1,000||70,150|
|Bishop’s Presbyteral Council||1,670||1,330||3,000|
|Bright Futures School Fund (Dev.)||0||478,379||478,379|
|Chancellor’s Office/VG for Administration||152,564||3,500||156,064|
|Comprehensive Resource Study||55,000||0||55,000|
|Doubtful Accounts Allowance||60,000||0||60,000|
|Office of Catholic Health Care||0||100,191||100,191|
|Office of Consecrated Life||31,064||0||31,064|
|Office of the General Counsel||191,106||105,000||296,106|
|Other-SFX Cell Tower Reimbursement||14,000||0||14,000|
|Religious on Parish Assignment||32,857||32,857||65,714|
|Stewardship & Development/Annual Appeal||532,380||36,100||568,480|