Elementary Parish and School Financial Update. Secretariat for Education Department for Catholic Schools 2005-2006. Background Information. Why the Policies for Financing Elementary Schools were needed. Consolidated Operating (Deficit)/Surplus Parishes with Schools Millions of Dollars.
Secretariat for Education
Department for Catholic Schools
Why the Policies for Financing Elementary Schools were needed.
The following positive trends have occurred since the new policies were promulgated in May of 1995.
Gas is expected to increase about 50% and electric at least 15%.
A large portion of this decline is in the City of Pittsburgh. City public schools have experienced similar or greater declines than city Catholic schools.
Decline between 1999-2000 and 2003-04 was 6,300 students or 2.3%. Projected decline to 2013-204 is over 39,000 or 14.5%.
Decline between 1999-2000 and 2003-04 was 5,300 students or 3.0%. Projected decline to 2013-204 is over 26,000 or 16%.
1. Individual meetings will be held with diocesan staff to thoroughly review operations and budget assumptions
2. School and parish budgets must be balanced and include a reasonable amount of debt service for re-paying accumulated debt
3. Parish subsidy may need to be significantly reduced or even temporarily eliminated in order to balance the parish budget
4. No borrowing of funds for operations will be permitted
5. All bills need to be paid including employee benefits/insurance. Any residual debt will be included as an expense in the following year’s operating budget with tuition increased accordingly.
6. Expense reductions, including staff and programs, need to implemented
7. Tuition will be set at the rates needed and may require significant increases.
8. Viable enrollment goals with registration deadlines will be set
9. Elementary school grant funds will decrease necessitating a reduction in grants
1. Establish a balanced school budget:
a. Project a reasonable enrollment
b. Include only the amount of subsidy the parish can afford
c. Determine a reasonable amount of fund raising based on history
d. Include your (reduced) elementary grant
e. Add any liabilities from previous school year (e.g. unpaid bills, advanced tuition used)
f. Include accurate expense amounts for utilities, benefits and insurance.
g. Critically examine staffing levels each year in relation to enrollment and adjust.
h. Reduce expense, including staff, where possible.
i. Increase tuition in order to balance.
2. Pay all insurance bills (primarily employee benefits) on time and in full.
3. Encourage parents to apply for aid.
4. Do not re-enroll families with unpaid tuition balances unless funding is secured to pay the balance in full.
5. Share financial information with parents via letters and meetings.
6. Call diocesan staff for assistance and support.