St. Bede Parish, Ingleside, IL

All Parish Meeting Regarding the Future of the School

June 1, 2015

Relevant Facts for Parents and Parishioners

I.Background of the Archbishop’s Decision to Reduce School Subsidies.

  • For a number of years, the Archdiocese ran deficits of around $50 Million per year; these deficits arose mostly because parishes were unable to fund the whole cost of their parochial schools.
  • These budget deficits were largely funded by a pool of money collected as excess revenue from Catholic Cemeteries and other Archdiocesan operations, also over a number of years.
  • That large pool of money is basically gone.
  • The Archdiocese is committed to running its operations “in the black” beginning July 1, 2016.
  • Cardinal George, with the advice of the Archdiocesan finance council, agreed to a plan to reduce the amount of Archdiocesan operating subsidy to schools to $10 Million per year.
  • In order to achieve that goal, the Archbishop has approved a plan to fund schools only when that funding is necessary to make up for the inability of families who have demonstrated financial need to pay full tuition. A family demonstrates financial need, at least in part, by applying for and qualifying for the free/reduced lunch program.
  • Even a school that suffers from only the problem of tuition affordability is not guaranteed to be subsidized by the Archdiocese.

II.History and Present State of St. Bede Enrollment and Financial Subsidies.

A.Enrollment History at St. Bede:

46% decrease over ten years and a 31% decline in enrollment since 2011

B.Current Enrollment by Grade: 185 Students (225 needed for financial sustainability)

C.Actual Archdiocesan Operating Aid to the Parish (Church and School):

2014-2015 / 2013-2014 / 2012-2013 / 2011-2012 / 2010-2011 / 2009-2010 / 2008-2009 / Total
School / 150,000 / 40,000 / 95,000 / 160,576 / 160,000 / 209,124 / 216,632 / 881,331
Church / 166,000 / 135,418 / 65,000 / 121,530 / 56,066 / 132,054 / 156,914 / 666,982
Total Parish / 316,000 / 175,418 / 160,000 / 282,106 / 216,066 / 341,178 / 373,546 / 1,546,313
Effective School
Aid** / >200,000 / 175,418 / 160,000 / ~200,000 / ~160,000 / ~209,000 / ~216,000 / ~1,120,418

**Estimated, based on St. Bede Parish annual reports.

III.Archdiocesan Conditions for Ongoing Viability of St. Bede School.

  • The Archbishop, at the recommendation of the Archdiocesan finance council, the Archdiocesan school board, and the Office of Catholics Schools have identified St. Bede as a school that will no longer receive subsidies beginning with the 2016-2017 school year.
  • In order to operate for a proposed school year, St. Bede must demonstrate the following:
  • By December 1 of the previous year, possession of cash in a restricted account equal to the sum of (1) the conservatively projected budget deficit for the coming year and (2) donated income for that year.
  • Actual operation of the school such that no school-related operating subsidy is required, beginning July 1, 2016.
  • Maximum 2015-2016 Archdiocesan subsidy for school-related operating costs of $75,000.
  • For financial sustainability, the Archdiocese recommends increasing enrollment by 10 students every year. However, the bottom-line is a financial one. If we are able to pay our bills, we can operate with fewer than the ideal number of students.

IV.Consideration of Next Steps.

A.Finalization of Possible Fundraising Goal. Assuming no decrease in enrollment and tuition collection, the parish needs to have, by December 1, 2015:

1.If 1 Grade per Class: Fundraising Goal = about $300,000.

a.$225,000 budget deficit.

b.$75,000 budgeted fundraising.

2.If Combined Grades in Classes: Fundraising Goal = about $150,000.

Please Note:The amount that we need to raise will be finalized by the Archdiocese in September 2015, based on a finalized budget, updated enrollment, and assessment by the VAC and OCS.

B.Assessment of Feasibility for St. Bede Supporters to Fund a Multi-Year, Annual Operating Expense Campaign.

1.Parameters of Fundraising.

a.It would not be a Capital Campaign, but an Operating Cost Campaign. We are not raising one-time funds for a building, but annual funds for repeating costs.

b.Donors must be encouraged to make financially responsible decisions with respect to their support. For example, people have to be actively discouraged from making withdrawals from their retirements savings in excess of what they can prudently afford.

c.Operating cost fundraising cannot diminish other financial support for St. Bede Parish (Church and School).

d.Given the present enrollment by grade, St. Bede School’s sustainability will depend on, among other things:

i.Continuous, annual fund raising for at least 5-6 years. The present 1st Grade enrolls only 17 students.

ii.20+ enrollment in the kindergarten and 1st grade classes every year, together with retention of those students in upper grades.

2.Information needed to assess whether raising funds to operate the school in the 2016-2017 year and thereafter is viable:

a.Will parents continue to enroll their children in St. Bede School given the uncertainty of future operation in general?

b.Will parents continue to enroll their children in St. Bede School if small grades are consolidated to save costs?

c.Is there sufficient financial wherewithal in the group of St. Bede supporters (parents, parishioners, and other supporters) to fund a multi-year, annual operational expenses campaign?

C.If Fundraising is Feasible: Formation of Campaign Committee.

D.If Fundraising is Feasible: Address Long-Term Sustainability Problem.

1.Assess sources for decline in enrollment.

2.Assess possible means of increasing enrollment.

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