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Financing
Is Key Issue for Catholic Schools
Along
with enrollment trends and demographics,
financing is a major issue that has been
analyzed by Meitler Consultants, Inc. as
part of the Strategic Planning Process for
Catholic schools in the Diocese of Scranton.
An
understanding of how the schools are
presently financed provides insight into the
challenges many schools are facing and the
potential remedies contained in the
consultants’ preliminary recommendations
for the schools in Luzerne, Lackawanna
and
Wayne Counties.
Tuition
funds only a portion of the cost of
educating each student. This fact is
outlined below, using figures from 2004-05,
the most recent year for which complete data
is available:
PER-PUPIL
COSTS COMPARED WITH TUITION
Lackawanna
and
Wayne
Counties
Average
elementary school per-pupil cost: $3,316
Average elementary school tuition: $1,891
Portion of elementary school per-pupil cost
funded by tuition: 57%
Average
high school per-pupil cost: $6,146
Average high school tuition: $3,697
Portion of high school per-pupil cost funded
by tuition: 60%
Luzerne
County
Average
elementary school per-pupil cost: $3,302
Average elementary school tuition: $1,859
Portion of elementary school per-pupil cost
funded by tuition: 56%
Average
high school per-pupil cost: $6,654
Average high school tuition: $4,162
Portion of high school per-pupil cost funded
by tuition: 62%
Parish
subsidies make up the next largest source of
funding for the schools. In some cases, a
single parish supports a particular school
with other parishes paying a smaller subsidy
based on the number of students from that
parish who attend the school. In the case of
an interparochial school, a group of
parishes share in the support of the
institution.
In
2004-05, the 67 parishes in
Lackawanna
and
Wayne
Counties
contributed on average 34% of their
offertory income to support Catholic
schools. Nine parishes were contributing
more than 50%.
The
100 parishes in
Luzerne
County
contributed on average 32% of their
offertory income to support Catholic
schools. Two parishes contributed more than
50% (this number was previously higher
before adjustments were made several years
ago to the school assessments for parishes
in the
Hazleton, Kingston
and Pittston areas).
The
combination of declining enrollments,
increasing per-pupil costs and rising
tuitions has in many instances placed
overwhelming financial pressure on parents
and parishes.
“The
important point to recognize is that the
cost of operating our schools affects not
only the parents of the students, but every
parishioner because of the impact of
substantial school subsidies on the
parishes,” said James M. Quinn, Diocesan
Secretary for Financial Services.
Many
schools and parishes are now in debt, he
noted. Schools are thereby forced to cut
programs or forego necessary improvements,
making them less competitive and attractive
to students. And parishes cannot properly
carry out other essential ministries.
Some
of the same factors that have caused
enrollment declines in many schools –
decreased population and fewer young
families – have also resulted in smaller
congregations and thus less resources for
parishes.
In
addition to tuition and parish subsidies,
the schools receive approximately $2 million
in support each year from the Diocese
through the Diocesan Annual Appeal, the
Diocese of Scranton Scholarship Foundation,
and various other scholarships and grants.
The
Meitler firm’s preliminary recommendations
for Luzerne,
Lackawanna
and
Wayne
Counties
propose the establishment of regional
systems governed by boards of directors and
chief administrators. These systems would be
financially supported by all parishes
according to an equitable funding formula.
According
to the consultants, the financial benefits
would include:
-
A
common standard of accountability with
consistent financial reporting for all
schools
-
No
competition between schools for
enrollment and dollars
-
All
families pay the same tuition rates and
have the same access to tuition
assistance monies
-
Tuition
assistance is funded and administered
centrally on behalf of all parishes in
the region
-
More
equitable distribution of personnel,
technology and other resources
-
Operating
fewer schools at strategic sites in the
best facilities improves efficiency and
lowers the cost of education, making it
more affordable for parents and parishes
and freeing dollars for program
improvement
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