The archdiocese of Boston is in ?dire? financial shape, according to its archbishop, Cardinal Se?n O?Malley OFM Cap, with debts of $46 million (?26 million).

Last October Cardinal O?Malley, sent to Boston in 2003 by John Paul II after Cardinal Bernard Law was forced to resign at the height of the sex-abuse crisis, promised openness about archdiocesan finances. The Financial Transparency Initiative is the result of his promise a remarkably comprehensive audit of Catholicism in Boston. It is all the more remarkable because under Cardinal Law the archdiocese was noted for its reticence, and because the state legislature recently rejected a bill which would have made all religious bodies publish their financial details on pain of losing their tax exemptions. The Cardinal has said the new voluntary openness will be permanent annual reports will be issued from now on.

The most startling figure in the present 1,000-page disclosure is the $46 million deficit for the year and half ending last June, but the report also reveals that the abuse has already directly cost the archdiocese some $151 million, most of it in damages paid to victims.

In releasing the report, Cardinal O?Malley stressed that ?our revenue is inadequate to fund our ministries?, notably clergy benefits; in any case, ?while I am encouraged by the recent achievements of our vocation office, the number of young men and women entering formation for priesthood and religious life is far below the needs of our Archdiocese?.

The cardinal was also candid about the indirect effect of the crisis ?the revenue numbers reflect the painful experience of our recent past, the anger over the sexual abuse crisis and the closing of parishes. These numbers are one response of a wounded community, an expression of deep hurt?. The annual Catholic Appeal plunged by a quarter after the scandal broke, and only recently began to recover. Apart from new efforts on fundraising, he announced staff shrinkages, consolidation of programmes, and a new wave of property sales.

However, the cardinal told the Boston Globe that the archdiocese was ?just too big? for bankruptcy to be an option, as it has been for three much smaller American dioceses. ?When the crisis began the Holy See asked us not to go that route. In retrospect, I think it?s probably been the right decision,? he said. And in a letter to his flock, he urges a rebuilding of their archdiocese ?What hasn?t changed is who we are as Catholics and our ability to love and serve God and one another.?

The Archdiocese of New Orleans disclosed last week that, as its own post-hurricane rebuilding efforts continue, it operates at a deficit of $1 million a month, Rocco Palmo writes. ?There?s always a tension between mission and money,? spokesman Fr William Maestri said. ?Right now, the archdiocese is operating on the side of mission.?
Richard Major in New York