2015-2016 – Planning Overview September 2015 1. New Planning Committee established – 2013 New Planning Committee established – 2013 – 6 Pastors, 1 Finance.

2015-2016 – Planning Overview2015-2016 – Planning Overview

September 2015September 2015

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• New Planning Committee established – 2013New Planning Committee established – 2013– 6 Pastors, 1 Finance Council, 8 Chancery

• Strategic Plan adopted 2014Strategic Plan adopted 2014– In year 2

• Kick off meeting – February 5, 2015Kick off meeting – February 5, 2015• Assumptions approved February 2015 Assumptions approved February 2015

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• Budget Process – May 2015Budget Process – May 2015– Department Executive presentations – Planning Committee debate and discussion

• Review with Audit Committee – June 2015Review with Audit Committee – June 2015• Review with Finance Council – June 2015Review with Finance Council – June 2015• Bishop’s Approval Bishop’s Approval

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• Declining households participating in parish lifeDeclining households participating in parish life• Declining Number of Active PriestsDeclining Number of Active Priests• Facility Structures in need of repairFacility Structures in need of repair• Parish Reconfiguration ProcessParish Reconfiguration Process• Parish and Diocese Financial positions need to be Parish and Diocese Financial positions need to be

managedmanaged

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• Households in the DioceseHouseholds in the Diocese 81,000 81,000• Average number in a familyAverage number in a family 2.72.7• Estimated Catholics In the DioceseEstimated Catholics In the Diocese 218,700 218,700

• Catholic Attending Mass – October 2014 Catholic Attending Mass – October 2014 77,000 - Retain 77,000 - Retain Not active in parish life Not active in parish life 141,700 - Renew141,700 - Renew

% at Mass - 2014% at Mass - 2014 35% 35% - 2013- 2013 36.5% 36.5%

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• BaptismBaptism– Minor 2,802– Adult 344

• First Communion 2,671First Communion 2,671• Confirmation - 2,739Confirmation - 2,739• Marriages - Marriages - 865 865• Funerals – Funerals – 3,901 3,901

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• How do we retain the current 77,000 active How do we retain the current 77,000 active practicing parishioners?practicing parishioners?

• How do we reengage the 142,000 who are no How do we reengage the 142,000 who are no longer active?longer active?

• How do we retain the young adults after How do we retain the young adults after confirmation?confirmation?

• How we support Family life programs?How we support Family life programs?

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Total Active Priests = 123Total Active Priests = 12365 and over = 5665 and over = 56

Over 75 – 15Over 75 – 1565 to 75 – 4165 to 75 – 4155-64 – 4055-64 – 40 67 below 6567 below 6545-55 – 1145-55 – 1135-45 - 1135-45 - 11 27 below 55 27 below 5525-35 – 525-35 – 5

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Deacons Ordained -- 75 Deacons Ordained -- 75 Deacons In Formation - 25 Deacons In Formation - 25

Class of 2016 - 7Class of 2016 - 7Class of 2018 - 13Class of 2018 - 13Class of 2020 - 5 – still accepting applicantsClass of 2020 - 5 – still accepting applicants

Recruitment is workingRecruitment is workingTraining and education has been successfulTraining and education has been successfulOnce ordained - programs are developing to create Once ordained - programs are developing to create teamworkteamwork

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Move from Reactive to Pro-active mission drivenMove from Reactive to Pro-active mission drivenWelcoming and open for BusinessWelcoming and open for Business

•Cathedral - $ 10 millionCathedral - $ 10 million•Christ the King Retreat - $ 750,000Christ the King Retreat - $ 750,000•Parishes & Diocesan SchoolsParishes & Diocesan Schools

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• With 123 priests ( # is declining) and 75 With 123 priests ( # is declining) and 75 Deacons (# is growing) how do we continue Deacons (# is growing) how do we continue EvangelizationEvangelization as well as as well as investinvest in our in our facilities and at the same time facilities and at the same time managemanage the the operational side of the parish ?operational side of the parish ?

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So what is the plan?So what is the plan?

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You have heard it numerous times beforeYou have heard it numerous times before

The plans have not changed- It is getting closer The plans have not changed- It is getting closer

It will be successful if we work together and It will be successful if we work together and address issues logically and with common senseaddress issues logically and with common sense

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• From 134 parishes into 27 Pastoral Care Areas (PCA)From 134 parishes into 27 Pastoral Care Areas (PCA)– No planned closing of parishes• Will require adjustments to Mass schedule• Will require revenue and expense management

– Deacons assisting Priests – the Ministry– Lay personnel- parish operations- The Administration– Shared services and outsource clerical tasks to experts

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• Key – Focus on EvangelizationKey – Focus on Evangelization• Key – Good Communication & TeamworkKey – Good Communication & Teamwork• Key – Good & logical operational decisionsKey – Good & logical operational decisions• Key - Reduce the Parish Administration work loadKey - Reduce the Parish Administration work load

Goal - Reduce Risk of Change

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Coming In November Coming In November Danielle CummingsDanielle Cummings

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• Start with the current situation and make Start with the current situation and make incremental improvementsincremental improvements– Hedgehog Strategy

• Implement Best PracticesImplement Best Practices• Correct mistakes quickly when they take placeCorrect mistakes quickly when they take place

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6/30/11 6/30/2014Total Income

52,704,487 55,833,099 Payroll & Benefits

25,639,044 26,477,024

Other Operating Expenses 26,620,789 25,127,994

Program Related Expenses

4,964,486 7,088,133 Total Expenses

57,224,318 58,693,151 Operating Deficit

(4,519,831) (2,860,052)

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• Operating IncomeOperating Income– 60 parishes had positive operating income = 42.9%– 80 parishes had operating loss = 57.1%

• Net IncomeNet Income– 77 parishes had positive net income = 55%– 63 had net losses = 45%

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• We are making good progressWe are making good progress• Reporting is getting better and more timelyReporting is getting better and more timely• Parish cash flow and profitability need to be closely managedParish cash flow and profitability need to be closely managed

– Make the right decisions for the future

• Address the main risk - Changes to the mass scheduleAddress the main risk - Changes to the mass schedule• Parish Services Department focus is onParish Services Department focus is on

– Providing consulting/ guidance on financial and operational issues/concerns

– Operational control environment in this time of change

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• Develop and implement a business planDevelop and implement a business plan• Reduce administration within the parish PCAReduce administration within the parish PCA– Payroll processing• Move the Diocesan Payroll services department

– Bookkeeping• Move to a third party bookkeeper

– Information Technologies• Use Diocesan expertise for oversight

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• Manage the balance sheetManage the balance sheet– Property and related assets

• Increase revenueIncrease revenue– Evangelization !!!!!– Increased offering program – Renewed– Planned giving programs- Implemented

• Reduce expenseReduce expense– Shared Services – works!!!– Payroll to the Diocese; Bookkeeping to third party– Reduce facility expenses where possible

PCA Process should ensure system stays financially healthy

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• In the Chancery, our job is to support you, as In the Chancery, our job is to support you, as you go through the PCA process and address you go through the PCA process and address the critical issues.the critical issues.

• Operationally, together, we implement best Operationally, together, we implement best practices to meet the needs of your parish to practices to meet the needs of your parish to allow the priests and deacons focus on allow the priests and deacons focus on ministry programs ministry programs

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• Keep the people in the pews – in the pews – 77,000Keep the people in the pews – in the pews – 77,000• Increase participation in Catholic faith – 142,000Increase participation in Catholic faith – 142,000

– Bring adults who left – back– Re-engage youth and young adults– Family life and the need for their Catholic Faith

• Manage the Diocese finances Manage the Diocese finances in this time of significant changein this time of significant change– Business plan for all entities with strong Board of Trustees– Financial control and discipline– Focus on funding the future - stop funding the past

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• Execute the strategic planExecute the strategic plan– Focus – few objectives and achieve them- Hedgehog

• Successfully implement the PCA process Successfully implement the PCA process – Over the next 10 years– Let it happen naturally- bottoms up

• Mentor and monitor the new trustees at each entityMentor and monitor the new trustees at each entity• Monitor the Parish Financial stabilityMonitor the Parish Financial stability

– Implement parish administration program

• Successfully implement the Catholic school strategySuccessfully implement the Catholic school strategy

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• Need to create Need to create ChangeChange– If we do not change – someone will change it for us

• We We must create positivesmust create positives– Do the hard changes now – A positive implemented too late = reaction/defensive– A Positive implemented early = proactive

• It will not be easyIt will not be easy– Communication– Everyone pulling together– Patience

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