The Catholic Archdiocese of Denver is changing the way it financially supports schools so that all parishes, even those without their own schools, contribute more to parochial education.
Archbishop Charles Chaput calls it a big boost for Catholic schools.
Each of the archdiocese’s 120 parishes contributes a set portion of its income to the archdiocese. The bishop’s share, called the cathedraticum, funds various diocesan activities, including grants for schools — typically about $1.2 million a year.
The archdiocese previously dedicated 1.5 percent of parish contributions to education, but will increase it July 1 to 3.79 percent.
“Catholic schools are important for the handing on of our faith,” Chaput said. “I’m thankful the priests and advisory committees have endorsed this new way of investing in our Catholic schools.”
The new funding mechanism doesn’t necessarily mean a significant increase in funds for schools, Catholic schools Superintendent Richard Thompson said, but it represents a more equitable and reliable way of doing so.
“We’re expanding the stakeholder base,” Thompson said. “It’s a cultural shift and strong testimony to the perceived value of our Catholic schools.”
However, the archdiocese will eliminate another education-funding source called Inter-Parish School Assistance, in which parishes that had families attending other parish’s schools would provide a subsidy of $1,000 per student.
“Some poorer parishes couldn’t afford the subsidies,” Thompson said. “We have 70 parishes sending 2,000 kids to schools outside their own parishes.”
Financial challenges
In the churning wake of economic downturn, and with enrollments declining (down about 2 percent over last year), Catholic schools are facing stiffer financial challenges than ever, Thompson said. Yet only one school has closed in the archdiocese in the last 10 years.
Archdiocese enrollment stands at about 10,000 in 37 elementary and two high schools. It is the largest private school system in the state.
Catholic school tuition averages $3,800 a year for K-8 students and $8,500 a year for 9th- through 12th-graders. Catholic schools also get revenue through fundraising, parish support, outside donations and grants from the archdiocese.
Without these grants, 22 of the 37 parish elementary schools would have had operating budget deficits this year, according to archdiocese reports. There was an overall projected shortfall of $3 million to $5 million for 2009-10.
The new financial mechanism spreads out the responsibility.
“It’s fairer,” said Tracy Alarcon, principal of St. Rose of Lima Catholic School. “We’re all going to contribute and share. It’s a team effort.”
Long-term plans
The archdiocese has spent five years developing long- term strategic plans for improving schools’ self-sustainability. Part of the strategy is teaching schools and parishes how to better brand and promote the schools to attract more students and more philanthropy, Thompson said.
And the archdiocese is cutting costs. It froze the salaries of faculty and staff this school year. It is also looking at increasing average class size from 17 to 22.
“Everybody is working in earnest to address the huge financial challenges,” Thompson said.
Electa Draper: 303-954-1276 or edraper@denverpost.com