Staff Writer

ATLANTA--The newest proposal for Catholic elementary school funding recommends that parents pay the full cost of education for their children in combination with a new parish assessment replacing school subsidies.

The proposed new assessment would help to fund capital expenses and provide tuition assistance to families to offset the rise in tuition rate.

Unlike school subsidies, which only come from parishes with schools or feeder parishes, the assessment formula would be applied to all parishes and missions. However the proposed formula is designed to have minimal impact on small parishes outside metro Atlanta, the parishes least likely geographically to have children in Catholic schools.

Bill Maron of St. Thomas More Parish, Decatur, and a member of an archdiocesan school finance subcommittee, presented the tentative proposal to about 175 pastors, clergy, principals and representatives of Home and School Associations Oct. 21 at Holy Cross Church.

Under the proposal, multi-child tuition discounts would be phased out; tuition assistance would increase; certain administrative functions would be centralized and parish subsidies, which are currently used to offset or reduce the direct cost of education, would be replaced with a tuition assistance and capital replacement fund.

The proposed fiscal plan states that tuition rates should be kept at a level where the majority of Catholic families, with some sacrifice, can still afford to send their children to Catholic schools.

"The primary concept is that people who can afford Catholic education should pay what it costs to actually educate their child, and that involves more than just the operation of the school," said Msgr. Edward Dillon, vicar general, who moderated the meeting and responded to specific questions. "The other component we want to build into the plan is a tuition assistance program whereby those who cannot afford that figure will have financial assistance available to them."

The proposed changes would occur over a five-year period with no student's tuition increasing more than 15 percent and no family's costs increasing more than 20 percent each year. These caps are to assist families with several children attending schools which currently offer substantial multi-child discounts.

During the first five years of the plan, as tuition increases toward its ultimate level, the amount of parish subsidy going to fund the operation of the school would decrease. The amount of the decrease each year would go to fund tuition assistance, Msgr. Dillon said. At the end of the fifth year, the subsidy would be devoted to tuition aid and a capital fund.

At the conclusion of the five years, one uniform rate of tuition of an estimated $4,096 per Catholic student would exist for the archdiocesan elementary schools in the metropolitan area excluding Our Lady of Lourdes and St. Anthony's. The tuition rate for a non-Catholic student would be an estimated $5,590.

"Clearly the majority of the financial burden falls on the multi-child families," Maron said.

However, having more than one child in Catholic schools is one of the factors that would influence awarding of tuition assistance, according to Msgr. Dillon.

The tuition under the proposal would include an estimated $750 contribution per child to a capital fund. The per student fee would be phased in over a five-year period. This fund would be used to pay for renovations to schools and to either amortize new buildings over a 20-year period or to depreciate existing buildings to allow for their future replacement.

"This fund exists so that if a school needs a new roof it can get one," said Mike McNamara, chairman of the financial subcommittee and chief financial officer of the archdiocese. "These are the types of problems you have to anticipate today instead of when they happen."

Tuition collection, financial assistance, collection and administration of parish subsidies and payroll and accounts payable would be centralized under this tentative proposal. Site-based management "should continue to be emphasized with each school having its own budget," the proposal states.

Students would be allowed to attend any school they wish, although existing students and younger siblings would continue to receive preference in admission. Each school would be encouraged to establish a for-profit extended day program and cafeteria plan with proceeds from these ventures staying in each school's budget. A uniform pay scale for teachers would be phased in over four years based on merit, experience, education and extraordinary circumstances.

Under the proposal, financial assistance would be determined by "standardized scoring, available funds and parish recommendations." Each family receiving financial aid would first require a certificate of participation from its parish. The proposal states that tuition assistance will not exceed 75 percent of the cost of each family's educational expenses.

Bob Tritt, chairman of the archdiocesan school subcommittee on relationship and a parishioner at the Cathedral of Christ the King, introduced some preliminary concepts based on the proposal.

The committee recommended that if the proposal was adopted, the duties of the Secretary of Education should expand to include management of tuition billing, accounting, payroll and accounts payable and administration of tuition assistance.

The committee also recognized the importance of a local school board which they said should include the principal, pastor of the host parish, nominees of the pastors of host and primary feeder parishes and parent representation. The proposal suggests that parental representation could be nominated by the board and appointed/removed by the archbishop or other method of selection/removal. Appointees could have three-year staggered terms, with the possibility of succeeding themselves once. The local school board would report to the principal, although they could advise the superintendent of hiring, evaluation or retention of the principal. The jurisdiction of the board would be to develop local priorities, budgets, programs in excess of core curriculum, salary scale in excess of archdiocesan minimums and the funding mechanism for such additional programs and salary supplements.

Under the relationship subcommittee's recommendations, the principal would serve as the chief executive officer of the school, accountable to the superintendent of schools. With input from the local school board and consistent with archdiocesan policy the principal's responsibilities would include hiring, evaluation, retention of teachers and staff and admission and discharge of students.

The committee also proposed that the pastor of the host parish be the spiritual leader of the school. The pastor would participate directly and through representatives on the local school board. Schools and host parishes would be encouraged and expected to share the cost and use of existing and new facilities when practical.

Finally the subcommittee recommended that all funds raised at the local level stay at this level and be carried on the books at the individual school. Such funds should be expended based on decisions made at the local level.

Parents from St. Jude the Apostle School, Immaculate Heart of Mary, the Cathedral of Christ the King and St. Thomas More expressed reservations about various aspects of the plan.

A parent from the Cathedral of Christ the King said that the proposal would add another layer of bureaucracy because of the centralization of some of the financial administrative function. Msgr. Dillon assured the parents that the centralization of these functions would be beneficial for all parties. "You don't know the struggles we had just getting the numbers for each of the schools' 1995-96 budgets," he said. "Even though a limited number of administrative functions would be centralized downtown, remember, site-based management will be emphasized with each school having and being responsible for its own budget." The finance subcommittee is convinced centralizing functions like tuition collection and billing will result in a savings for the schools, he said.

Father Pat Mulhern, pastor of St. Thomas More, read a letter from parents with children in his parish school, which stated that the elimination of the multi-child discount would make Catholic education almost unattainable for their families.

Msgr. Dillon assured him that that even though the cost of education for their children would increase, so would the amount of tuition assistance. "It is imperative that people understand this," he said. "Currently this type of financial assistance would not be available."

Parents from St. Jude the Apostle questioned the increase in tuition because parents at their school were making financial contributions to the school that probably outweighed the proposed tuition figure. Members of the Home and School Association feared that if the tuition rate rose to $4,096 parents would find it financially challenging to continue supporting some of the school's capital campaigns, in addition to tithing to their parish and contributing to the newly announced Archdiocesan Capital Campaign designed to raise $50 million.

Msgr. Dillon told them that neither he nor the archdiocese were trying to discourage people from making contributions to the school's capital campaign, but it was time for Catholic families who could afford Catholic education to pay the full cost. "It is really that simple," he said. "We aren't trying to overwhelm anyone. We are trying to make Catholic schools everyone's responsibility. Even parents whose children have graduated from Catholic schools or parents who don't have children have a responsibility to Catholic education. It is clearly part of the Church's mission and we hope everyone will do his or her part."

A representative from Immaculate Heart of Mary School feared that if word got out that tuition might be this high parents would pull their children out of Catholic schools and enroll them in other private schools.

Msgr. Dillon said he did not know of any private school that had a tuition fee less than that proposed for the archdiocese's Catholic schools. "If anything, we'll finally be on the same playing field," he said. "And again let me reiterate, under this plan we would have a tuition assistance fund at a level that the majority of these private schools don't have."

As archdiocesan officials continue to seek solutions to the funding problems of Catholic elementary schools, two different scenarios for subsidy calculations were presented to pastors.

"There is no question that there will be a subsidy," Msgr. Dillon said. "There is a question about how that subsidy might be arrived at in some sort of equitable way. Our primary purpose today is to discuss the business of how the parishes can afford to continue the subsidy to the schools."

The current formula for funding most Catholic elementary schools in the Archdiocese of Atlanta is as follows. Parents of the child pay an annual tuition rate which varies from school to school. In addition, the home parish where the school is located pays for the upkeep of the school and any capital improvements. Thirdly, the home parish of the student who attends a Catholic school pays a per-child subsidy to the parish where the school is located to absorb the difference between the actual cost of educating a child and the current tuition. This three-pronged formula of tuition, home parish support, and per-child parish subsidies has been debated for the last 10 years.

St. John Neumann Regional School in Lilburn, built in the 1980s as a regional rather than a parish school, does not use this formula.

Msgr. Dillon has said on numerous occasions that he is convinced that the current formula cannot sustain the archdiocesan school system contemplated for the future.

He told those in attendance that if the archdiocese does not make adjustments in the present formula they will maintain the existing schools, but they will eliminate the possibility for expansion.

At the Oct. 21 meeting two different scenarios were introduced that would create a new assessment formula for schools replacing the per-child subsidy. In either scenario every parish and mission in the archdiocese would be subject to the formula.

Under the first scenario, the "ordinary church income" of a parish as defined in section 20.9.4 of the archdiocesan policy manual would be assessed zero percent on the first $50,000, 15 percent on the next $50,000, 20 percent on the next $250,000 and 25 percent on income over $350,000.

Hypothetically, a parish that had an "ordinary church income" of $1 million would pay zero on the first $50,000, $7,500 on the next $50,000, $50,000 on the next $250,000 and $162,500 on the rest of their income for a total of $220,000.

Archdiocesan statistics indicate that currently 51 of the 91 parishes and missions are paying some sort of school subsidy. Forty are not paying at all because they don't have any students enrolled in Catholic schools. Under scenario one archdiocesan statistics indicate that 13 parishes or missions would not be assessed a fee for Catholic schools because their "ordinary church income" is less than $50,000.

The second scenario placed a straight 15 percent assessment fee on parishes who had an "ordinary church income" of greater than $250,000. Hypothetically, a parish that had an "ordinary church income" of $1 million would subtract the first $250,000. The remaining $750,000 would be subject to the 15 percent assessment. This new figure of $112,500 would replace the parish's current school subsidy.

Under scenario two, smaller parishes with an "ordinary church income" of $250,000 or less would benefit, since they would pay no additional assessment yet still be relieved of the current school subsidy.

Under either scenario, parishes that have a school or have a large number of children attending Catholic schools will have a decrease in their assessments.

While each proposed formula received varying input, neither formula was broadly endorsed.

Father Bill Hoffman, pastor of St. Michael, Gainesville, suggested the possibility of creating a religious order in the archdiocese whose sole responsibility was teaching in Catholic schools. Perhaps their presence in the archdiocese would save money for both parishes and parents.

Archbishop John F. Donoghue said that he was investigating starting a religious order with a teaching ministry. However, Msgr. Dillon noted that even if this became an option, it would not be a solution to school funding issues. He referred to the $10 billion shortfall in religious retirement funds in the U.S. that the Catholic Church is trying to overcome because of the past practice of low pay to religious.

"The days when people worked for little or nothing are over," he said. "In today's world they have to earn money to take care of the older members of their communities who were the teachers of yesterday who lack the money to retire and ensure the financial future of their order."

Father Hugh Marren, pastor of St. Anthony, Atlanta, said the problem with funding lies in the fact that "Catholics are the worst givers, tithing only 1 percent of their income to the Church." He said that if all Catholics gave 10 percent to the Church as Scripture says, school funding would not be an issue.

Msgr. Dillon agreed with this statement, adding that national surveys regrettably reflect the fact that Catholics tithe only 1 percent of their income to the church. "Because of this reality we have to address this issue; we are trying to find a workable situation for everyone. But Father Marren is right. If Catholics gave 10 percent of their income to the Church, we would not be here having this conversation. Unfortunately, that is not the reality."

Father Richard Kieran, pastor of Immaculate Heart of Mary, Atlanta, and Father Richard Wise, pastor of Sts. Peter and Paul, Decatur, asked if the priests could meet together as a group to discuss and study the matter of school funding. Msgr. Dillon expressed reservations about further study in that type of forum, saying "the matter had been studied to death over the past 10 years" and what was needed was reaction to a particular plan. A concerted effort was made by the archdiocese to obtain as much participation by pastors as possible in the Oct. 21 meeting, he said, and yet he described the turnout of pastors and priests as rather low.

At the conclusion, Archbishop Donoghue addressed those in attendance, thanking them for their input and their interest in Catholic schools. "I am convinced that the people of the archdiocese want Catholic schools," he said. "I certainly believe them, and I believe that we should have more Catholic schools. We should be able to educate any child who wants a Catholic school education. I don't want an elitist Catholic school system. I want one that any child could have access to, but to do that we have to subsidize them some way. Parents have assured me that if we build new schools they will make whatever sacrifices are necessary to support those schools."

"I know this is a very emotional issue for so many people," he said. "It would be easy for me to say, ?Well, since we can't reach any conclusion, let's forget it and just stay where we are.' I don't want to do that. I think we should go ahead. We will come up with some kind of a plan. We'll circulate that plan, and we'll give you the opportunity to respond to that plan. But someplace down the line in the near future, we have to make a decision."

In an interview Oct. 28 about the next steps that might be taken, Msgr. Dillon said there was a lack of a clear consensus from the priests, but the archbishop was leaning toward the 15 percent assessment proposal outlined as scenario two.

The vicar general also said that he would try to put the reports of the finance and relationship subcommittees together into one report for a Nov. 21 meeting of the full school committee.

"This plan is not written in stone," Msgr. Dillon said.

"The fundamentals of the plan are not really up for debate, such as that tuition should be what it truly costs to educate the child and not be an artificial figure; that parents who can afford it should pay full price even at some sacrifice; and that the subsidy will be continued to the school system so parents who cannot pay the full amount of tuition will still have the opportunity to send their children to Catholic schools."