Debt forgiveness sum at $1.7 million

Approximately 50 parishes, schools and institutions in the Albany Diocese have had their debts forgiven to a tune of $1.7 million as part of this year's Sesquicentennial celebration.

At the Sesquicentennial opening ceremony in December, Bishop Howard J. Hubbard announced that money owed to the Diocese by parishes, schools and institutions would be forgiven in the tradition of a jubilee year.

According to religious tradition, a jubilee year is a time of celebration that includes the forgiveness of debt so that all can begin the next phase of their faith journey with a clean slate. This is the first time in the history of the Albany Diocese that debts have been forgiven like this, said John J. Feeney, chancellor for finance and administration.

'Solid footing'

The debt forgiveness program has been a positive experience for the Diocese, said Mr. Feeney, because "it puts the parishes on a reasonably solid footing. It was a good thing to do. It's had a positive effect."

The process also helped the Diocese have a better understanding of parish finances by giving "us greater insight into the financial stability of parishes. It's had a good effect there also."

Mr. Feeney explained that it had been diocesan practice to apply payments for insurance or assessments to the oldest debt a parish had with the Diocese. Through the debt forgiveness process, the Diocese learned that pastors didn't realize that was how the payment system worked. In some cases, the debt was so old that the current pastor didn't even know it existed. From now on, payments made to the Diocese will be applied to the current year, rather than to outstanding debt.

The Diocese will also monitor parishes that may be experiencing financial difficulties so that debt won't be accrued again, Mr. Feeney said.

'Relieved'

The program has eased the burdens of parishes, said those on the receiving end of the debt forgiveness.

"I feel uplifted and relieved," said Rev. Donald Czelusniak, pastor of St. Mary of Mount Carmel Church in Gloversville. "It's a wonderful feeling."

St. Mary of Mount Carmel was forgiven $113,496.92, which is everything that the parish applied for, he said. The majority of that amount was accrued through the operation of a school, which closed in 1991.

In an announcement to the parish on the debt forgiveness, Father Czelusniak said: "This financial burden has been lifted by the Bishop. [Indebtedness] is not part of our heritage. We are better known for our sacrifices, our efforts, our enduring commitment to what we believe is best for our community and its children. We are now channeling our efforts into the new millennium, knowing that our past endeavors were not wasted or made burdensome to new generations."

Going forward

The forgiveness of the debt will allow the parish to concentrate on current needs. "We'll be able to take care of the needs of the people," Father Czelusniak said, noting that the parish has a special interest in serving youth. The parish is now in the process of working with its cluster to provide more youth programs.

The priest heard about the debt forgiveness plan firsthand while attending the Sesquicentennial opening ceremony.

"At first, I didn't believe it," he said. "I couldn't believe my ears. Then I saw it in The Evangelist and knew it must be true. The parishioners who were there looked at me with smiles on their faces. We had great expectations."

Happy time

While the parish council and finance committee worked on the application for forgiveness, they waited to make an announcement to the general parish. When official word came from the Diocese that the debt was forgiven, there was excitement in the air.

"We couldn't wait to announce it to the whole parish," the pastor said. At each weekend Mass, as the announcement was made, the church filled with the sound of applause.

"It's a wonderful feeling," he said.

Source of debt

Mr. Feeney explained that idea for debt forgiveness came from Bishop Hubbard. Any debt that was over five years old was eligible to be forgiven. In order to qualify, parishes, schools and institutions only had to fill out a simple form.

"Just about anything was eligible," he said. "The only thing not forgiven were loans."

Mr. Feeney said the outstanding debt came from two sources -- insurance and assessments for such items as diocesan programs that serve parishes. Of the total amount forgiven, $1.3 million was insurance; the remainder was assessments.

Property insurance for parishes, schools and institutions is part of a large policy that the Diocese holds. Each institution in the Diocese pays a proportionate share of the premium. But it is often the parishes with the least resources that have the biggest insurance premium to pay. That's because inner-city properties, often larger and usually older, cost more to insure than other properties; but inner-city parishes often don't have the financial resources to pay the premiums.

Out from burden

Mr. Feeney stressed that parish debt is rarely the result of careless financial management.

"The parishes just didn't have the wherewithal to pay it," he said. "It can't be easy not to pay debt. Parishes that could sustain did; but for others, you reach a point when you've had it."

The debt forgiveness program is a once-in-a-lifetime opportunity, he emphasized, calling it "not something to be expected" every year. "It was part of a jubilee year, to clear the decks, a new beginning. It's not to be taken as a message that it will happen routinely. There won't be another jubilee year for some time."

(06-12-97) [[In-content Ad]]