2024-25 Diocesan Finance Council Approved Budget Highlights

What is the Diocesan Finance Council?
  The Diocesan Finance Council is a consultative body that provides advice to the Bishop in areas of finance and business, as well as certain acts of extraordinary administration, in ways similar to how a parish finance council advises a pastor.  While advisory in nature, there are certain matters in financial administration that require actual consent of the Finance Council, for example, certain types of property transactions and changes to the Diocesan assessment formula.  As mandated in Canon Law, members of the Council are skilled in civil law, business and financial affairs, as well as possessing an understanding of and dedication to the Mission of the Church.
  Two major responsibilities of the Finance Council are (1) to review and approve the annual operating budget, and (2) to review and approve the annual Diocesan Audit.
  Our Finance Council is currently comprised of the following members:
Most Reverend James V. Johnston, Jr. – Bishop, Catholic Diocese of Kansas City-St. Joseph
David Brain – CEO, Brown Cow Capital, LLC
John Crowe – self-employed
Christine DeMarea – Partner, Husch Blackwell, LLP
John DeStefano – Retired Senior Vice President of Finance and Treasurer, Great Plains Power, Inc.
Eileen Hutchinson – Retired Vice President of Finance/CFO, Government Employees Health Assoc., Inc.
Alan Lankford – President, Lankford and Associates
Thomas McCullough – Retired Executive Vice President; DST Systems, Inc.
Reverence Michael Roach – Pastor, St. James Parish in Liberty
Margo Shepard – Founder, Managing Partner, Shepard Wealth Advisors
Jim VanDyke – Retired Partner; BKD, LLP CPA’s and Advisors
  The Diocese has had a Diocesan Investment Committee since 1995.  Tracey Lewis chairs this committee, and is joined by Katheigh Degen, Kevin Emmendorfer, Ray Evans, Joseph Massman, Joseph Nastasi and Margo Shepard.  The Investment Committee continually reviews the investment policies, objectives and performance of the Priest Retirement Trust, the Lay Employee Retirement Trust, the Charitable Gift Annuity Trust, the Deposit and Loan Fund and certain other Diocesan investments/trusts.
  Angela Laville, as Diocesan Finance Officer, and Monica Adams as Internal Auditor/Risk Manager, staff both the Finance Council and the Investment Committee.

Highlights of the 2024/2025 Diocesan Chancery Operation Budget

By Angela Laville, Diocesan Finance Officer

The Diocesan Finance Council, at its meeting on June 24, 2024, recommended approval of the operating budget of the Diocesan Chancery Operation for the 2024/2025 fiscal year, which began July 1, 2024.  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 2024/2025 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 separate entities that managed individual budgets such as Catholic Charities, Catholic Cemeteries, the Diocesan Insurance Program, the Deposit and Loan Trust, parishes and schools. 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 2024/2025 is $15.80 Million, which is an 8.87% increase from 2023/2024.  The budget, as it has been for at least the last 32 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 2024/2025 is $7.2 million, which is an increase of $465,463 from 2023/2024.

A second important source of income is the Annual Catholic Appeal, which raises funds for several of our important programs and ministries.  For 2024/2025, 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 $4.7 million.

Another primary source of funding is “net” interest income, budgeted in 2024/2025 at $300,000. 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 ($200,000), 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 ($100,000).

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, the St. Joseph Catholic Academy 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 and the subsidy for the Ministry to the Disabled.

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 parishes, schools and other operations of the Diocese.


As in prior years, the creation of a balanced budget for 2024/2025 was challenging; however, there is always an effort to fund operations plus investing in the future for the faithful of the Diocese.

Included in the 2024/2025 Diocesan Chancery Operation Budget are several efforts directly related to our completed Diocesan Shared Mutual Vision and Pastoral Plan. While this plan began a few years ago, implementation continues, and the focus has not changed.  One area of continuation is the Comprehensive Resource Study to assist the Diocesan administration in determining how to advance in the future.  For this $55,000 was included in the budget..  Second, $50,000 has been allocated for the continued feasibility study related to possible efforts for a retreat center/camp facility within our Diocese.  A third area of focus is the future of both City on a Hill and Journey to Bethany.  The Diocese has allocated $65,000 to support these programs.  Both of these efforts began within the Diocese and have separated into unique legal entities; however, continued support is needed to assist with communication costs, website development and personnel costs.

The seminarian education budget is estimated at $1,208,068 with the number of seminarians projected at 23.  This year the Chancery Operation will use approximately $300,000 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 $538,000.  The support for Bishop LeBlond will be $180,000, the support for St. Pius X will be $108,000 and the support for the St. Michael the Archangel will be $250,000.

The fiscal year 2024/2025 represents the third 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 multiple ways including a direct contribution of funds in the amount of approximately $250,000.

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 $351,809.

The Chancery Operation continues its support of the Bright Futures Fund at a level identical to last year -$455,000.   It represents an ongoing commitment to enabling Catholic education in the urban core.

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 laville@diocesekcsj.org.

Angela E. Laville
Diocesan Finance Officer

 

Budget by Cost Category

 

2022/2023 Allocation Other Income Total Budget
School Office
Office 450,088 162,275 612,363
Parochial League 269,692 269,692
Subtotal 450,088 431,967 882,055 5.58%
Direct School Allocations
Bright Futures Fund 455,000 0 455,000
Saint Joseph Catholic Academy 250,000 0 250,000
High Schools 538,000 0 538,000
Subtotal 1,243,000 0 1,243,000 7.87%
Social Ministry
CCEAC Collection  75,000 0 75,000
Charities Allocation 222,500 0 222,500
Mental Health Ministry 7,000 0 7,000
Life & Justice 211,948 3,300 215,248
Ministry to Disabled & Housing 29,000 18,309 47,309
Restorative Justice 21,000 0 21,000
Subtotal 566,448 21,609 588,057 3.72%
Ministries 
Campus Ministry, NWMSU 142,370 117,000 259,370
Campus Ministry, St. Joseph 52,125 3,000 55,125
Campus Ministry, UMKC 9,960 0 9,960
Campus Ministry, Warrensburg 100,881 16,500 117,381
Campus Ministry Office 14,424 0 14,424
Youth Camps – Savio/Bosco 0 133,900 133,900
Diaconate Office 114,716 10,000 124,716
Family Life Office 203,252 65,000 268,252
Hispanic Ministry 157,439 1,300 158,739
Journey to Bethany 15,000 0 15,000
Office of Catechesis & Faith Formation 211,101 72,217 283,318
Office of Divine Worship 236,619 10,000 246,619
Parish Based Ministry 135,000 0 135,000
Pastoral Care Committee 2,000 1,392 3,392
Priestly Life/Ministry 71,050 14,000 85,050
Retreat Center/Camp Feasibility/Master Plan 50,000 0 50,000
Tribunal 503,305 0 503,305
Young Adult Ministry 50,000 0 50,000
Youth Office 96,528 15,000 111,528
Subtotal 2,165,770 459,309 2,625,079 16.61%
Support of Priests & Seminarians
Bishop’s Residence 69,331 0 69,331
Major/Minor Seminarians 908,068 300,000 1,208,68
Priests on Special Assignment 344,000 16,000 360,000
Reserve Plan 145,000 0 145,000
Retired Priests’ Health Insurance & LTC 160,000 400,000 560,000
Consecrated Life 30,703 0 30,703
Vocation Office 0 240,397 240,397
Subtotal 1,657,102 956,397 2,613,499 16.54%
External Allocations
Catholic University 8,250 0 8,250
Holy See Support 23,000 0 23,000
MO Catholic Conference 89,000 0 89,000
USCCB 69,600 0 69,600
Subtotal 189,850 0 189,850 1.20%
Diocesan Administration
Archives 235,335 0 235,335
Bishop’s General Administration 232,740 1,000 233,740
Bishop’s Office 244,376 0 244,376
Bishop’s Presbyteral Council 1,250 1,100 2,350
Bishop Emeritus 31,800 0 31,800
Bright Futures School Fund (Dev.) 0 600,590 600,590
Chancellor’s Office/VG for Administration 178,153 0 178,153
Chancery/Catholic Center 363,913 1,148,300 1,512,213
Communications/Catholic Key 499,372 91,000 590,372
Comprehensive Resource Study 55,000 0 55,000
Doubtful Accounts Allowance 60,000 0 60,000
Finance Office 528,432 167,000 695,432
Human Resources 631,402 115,000 746,402
Information Systems 165,455 163,020 328,475
Office of Catholic Health Care 0 100,000 100,000
Office of the General Counsel 293,066 90,000 383,066
Other-SFX Cell Tower Reimbursement 0 0 0
Printing/Mailroom 40,602 109,500 150,102
Professional Services 148,500 15,000 163,500
Property Management 337,287 0 337,287
Religious on Parish Assignment 47,374 47,374 94,748
Reserve Plan 0 0 0
Stewardship & Development/Annual Appeal 638,030 115,000 753,030
Vicar General for Pastoral Affairs 98,030 66,302 164,332
Subtotal 4,830,117 2,830,186 7,660,303 48.48%
GRAND TOTAL 11,102,375 4,699,468 15,801,843

 

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