Archdiocese says it has paid more than $8.8M in last decade over misconduct by priests

By STEVE KARNOWSKI Associated Press

First Posted: February 13, 2014 - 2:53 pm
Last Updated: February 13, 2014 - 2:56 pm



MINNEAPOLIS — The Archdiocese of St. Paul and Minneapolis said Thursday it has paid more than $8.8 million in the last 10 years over clergy sexual abuse and other misconduct by priests.

In its annual financial report, the archdiocese says about $3.2 million of that total went for room, board and living expenses for priests and ex-priests accused of sexual abuse or other misconduct. The archdiocese is required by church law to care for such men, the report says.

Another $2.5 million went to settlements for victims, and nearly $2.3 million paid for counseling and other support services for victims, accounting for 54 percent of the $8.8 million total. The numbers don't include insurance payments.

It's the most up-to-date accounting the archdiocese has provided of the financial impact of the clergy misconduct scandals that continue to rock the church, but the numbers only cover through the end of the 2013 fiscal year on June 30. The figures don't reflect any expenses from a wave of fresh allegations that began last fall after a former church employee became a whistleblower and accused top church leaders of mishandling misconduct allegations against priests.

Amid the fallout, Archbishop John Nienstedt removed himself from public ministry in December pending an investigation into allegations that he improperly touched a boy while posing for a photo during a confirmation ceremony, a claim he vehemently denies.

The archdiocese published the data in its newspaper, The Catholic Spirit, where Auxiliary Bishop Lee Piche noted in a commentary that this is the first time the archdiocese has released its full audited financial report. He called it part of an ongoing commitment to improve transparency and accountability and better financial reporting.

"We are taking these steps because they are the right thing to do — because they help us to protect the young and vulnerable, care for victims of abuse, and restore trust among the laity, as well as our clergy who are serving honorably," Piche wrote.

The report says the financial condition of the archdiocese is "solid" even though it finished its fiscal year with a deficit of nearly $3.9 million because it set aside nearly $4 million in reserves to cover potential liability from lawsuits.

Future legal liability is difficult to predict, the report says, because there is "no practical means" for determining the outcome of known claims or of lawsuits that might still be filed under a window the state opened by lifting its statute of limitations for clergy sex abuse lawsuits until May 2016 for old acts of abuse. There's no time limit on lawsuits for new acts of abuse.

"Losses from unknown claims could be substantial," the report says. "We will tender the defense of these claims to our insurers whenever possible. However, claims can go back to a time period in which insurance may not have been available or coverage limits were minimal. Most cases which have surfaced to date relate to alleged incidents 20-30 years ago; some are related to incidents alleged to have occurred more than 50 years ago."

The total paid from two specific accounts for priest living expenses rose to $401,489, compared with $336,736 in 2012. Costs for victim support totaled $37,619 compared with $34,378 in 2012, while costs for legal services totaled $92,652 compared with $44,536.

Total operating revenue for 2013 was nearly $35.5 million, compared with nearly $32.2 million in 2012, which the report said reflected increased contributions during the "modest economic recovery" since 2010. The numbers don't reflect any potential drop-off in giving since last fall.

Piche, who has taken over Nienstedt's public duties during the investigation, thanked parishioners for their generosity.

"Local Catholics' steadfast support for ministry to fulfill the mission of the Church speaks to the unwavering faith of those who make up this local Church," he wrote. "Catholics understand that the tragic moral failure of a few does not define who we are as Catholics."

Jeff Anderson, a St. Paul attorney who has filed numerous lawsuits against dioceses across the country over allegations of clerical sexual misconduct, said he doesn't trust that the numbers in the report are accurate or complete.

"When we look at something like that, and we look at how they have lied and deceived concerning child safety and their practices, they're just as capable of lying and deceiving about their finances," Anderson said.

The Survivors Network of those Abused by Priests said "a mountain of skepticism is in order" over the $8.8 million figure.

"We suspect Catholic officials are using these figures to begin convincing people that they're poor so they can pressure victims to file fewer lawsuits and settle those cases more quickly and cheaply," Frank Meuers, a local SNAP leader, said in a statement.

Online:

The report is available at: http://thecatholicspirit.com/featured/archdiocesan-chancery-corporation-annual-report-2012-2013


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