NY diocese faces 'financial hardships' after $100 million payment to survivors fund: bankruptcy court

29 April

Crowds in the Vatican Museum in Vatican City in 2011 (Michal Osmenda/Flickr)

In Update New York, the Roman Catholic Diocese of Syracuse is paying into a $100 million fund for sex abuse survivors. And according to the diocese's chief financial officer, Stephen Breen, it will face "financial hardships" as a result.

Syracuse.com's Jon Moss reports that on Monday, April 28, Breen testified, in bankruptcy court, that in order to withstand these "hardships," the diocese will have to sell property it owns, engage in aggressive fundraising, and look for ways to cut costs.

Breen, however, vowed to do "everything we can to regain our financial strength," telling the court, "We can make it through this."

"Breen was one of three witnesses who testified at a confirmation hearing Monday on the diocese's plan to exit bankruptcy," Moss explains. "The diocese originally filed for bankruptcy nearly five years ago in June 2020 as it faced a growing number of sex abuse lawsuits. About 400 sex abuse claims have been filed. The centerpiece of the plan is the creation of a $100 million fund to pay abuse survivors if they end their lawsuits against the church."

Moss continues, "Breen provided new details Monday about the fund. Half will be paid for by parishes, schools, missions and Catholic Charities. That $50 million is ready to go and is sitting in the bank, Breen said. The diocese will cover the other half."

The Syracuse.com reporter points out that "it has become common around the country for Catholic dioceses to declare bankruptcy as a way to get more control over a mountain of abuse claims."

"Thousands of priests nationwide have been credibly accused of abuse, a scandal that has rocked the church for decades," Moss notes. "Headquartered in Syracuse, the diocese covers seven counties with nearly 200,000 members across 116 parishes, 10 missions and seven oratories. It employs about 3000 people. Other dioceses have downsized their operations when emerging from bankruptcy, while also dealing with a decline in church attendance."

Read the full Syracuse.com article at this link (subscription required).

From Your Site Articles