Early Request to Develop Fair and Equitable
School Subsidy Assessments
for 2008 - 2009 School Year
SACRED HEART WILKES-BARRE FOUNDATION, INC.
770 Lantern Hill Road
Shavertown, Pennsylvania18708
(570) 696-3169
April 30, 2008
Mr. James M. Quinn
Diocesan Secretary for Financial Services and Chief Financial Officer
Diocese of Scranton
300 Wyoming Avenue
Scranton, Pennsylvania18503
Subject: 2008 – 2009 Parish Assessments for Schools
Dear Mr. Quinn,
As reported in the April 17, 2008 edition of The Catholic Light, the Diocesan Catholic School Boards are in the process of preparing the operating budgets and parish assessments for the upcoming 2008-2009 school year. We would like to take this opportunity, prior to the publication of the new assessments for the upcoming year 2008-2009, to remind you of the unfairness and inequities in the assessments for the current 2007-2008 school year.
The imposition of the temporary $50,000 “cap” in the change in assessment from the prior year during the “transitional year” caused enormous financial hardship to those 18 parishes adversely affected by this cap, as documented in numerous correspondence last year. We respectfully request that you establish a standard formula, with multiple tiers if necessary (i.e.: 10% assessment rate for parishes with income under $150,000, 25% assessment rate for all other parishes), without any caps or other arbitrary adjustments which lead to substantial inequities and unfairness. As a basis for discussion and consideration, we are forwarding the attached Modified Parish Assessments for School Year 2007-2008 prepared August 26, 2007 by A. and N. Foti, which was based on the analysis of last year’s school assessments.
Had this approach been implemented in last year’s calculation, parishes would not have been penalized and overcharged simply because they had always shouldered a heavier burden of the cost of catholic education in the past. The overcharge resulted from the imposition of an arbitrary $50,000 “cap” in the change in assessment from the prior year. As a result, 18 parishes were assessed more than the standard 25% rate, and were charged an additional $759,903 over the assessment that would have been charged at the standard 25% rate. As illustrated in the modified assessment table, this cap could have been eliminated by simply adjusting the assessment rate to 26.32% for these 18 parishes and the 141 parishes assessed at 25%. For the 60 parishes previously assessed at 10%, the modified assessment rate would have been 10.53%. Finally, for the 14 parishes that benefited last year from this “cap” (assessed below 25%), there would have been a modest increase in their individual assessment rate ranging from 0.53% to 1.32%. This would have resulted in a fair and equitable allocation of this tax, as required by Canon Law: “Can. 1263: The diocesan Bishop, after consulting the finance committee and the council of priests, has the right to levy on public juridical persons subject to his authority a tax for the needs of the diocese. This tax must be moderate and proportionate to their income.” (emphasis added). As discussed last year, our understanding is that the only reason that this suggested modified parish assessment could not be implemented was because “it is impossible at this late date to recalculate assessments and ask parishes to accept an adjustment to their assessment” (refer to your letter dated October 12, 2007).
We understand that the assessments rates will change this year depending upon the total diocesan school budget and the updated parish incomes for whatever base year is utilized. However, it is imperative that the rates established be implemented uniformly and fairly to all parishes without a cap or other arbitrary adjustment.
We also respectfully suggest that you include in the assessment formula for 2008-2009 a credit to those 18 parishes adversely affected by the “$50,000 cap” for the amount they were over assessed (difference between the standard 25% assessment rate and their actual assessment rate). After reducing the assessment for these 18 parishes, the assessment can be recalculated for the remaining parishes to recover the required funds. Perhaps these parishes would be able to apply this credit to the repayment of their debt to the diocese.
Thank you for your consideration. We are bringing the issue to your attention at this time to allow ample time for review prior to the publikcation of the assessments for the upcoming 2008-2009 school year. I would be happy to provide any assistance in preparing any spreadsheet or formula necessary to equitably distribute the school subsidy tax to all parishes.
Best regards,
Anthony S. Foti
Director, Sacred Heart-Wilkes-Barre Foundation, Inc.
CC: Most Rev. Joseph F. Martino, D.D. Hist. E.D.
Auxiliary Bishop John M. Dougherty
Msgr. Vincent J. Grimalia, V.G.
Father Michael F. Quinnan, E.V. for the Southern Pastoral Region
Father Philip A. Altavilla, E.V. for the Northern Pastoral Region
Mr. Joseph Casciano, Diocesan Secretary for Catholic Schools
Msgr. John Sempa, Pastor Sacred Heart – St. John Parish
Assistant Pastor Fr. James Alco
Mr. James B. Earley, Chancellor
Attachment
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