V. G. Funding
Findings and Background
1. The average source of operating revenue for elementary schools in 1999-00 was as follows:
| Tuition and Fees | 77% |
| Net Fundraising | 5 |
| Development | 7 |
| Parish Subsidy | 2 |
| Archdiocesan Subsidy | 2 |
| Auxiliary Revenue | 7 |
| Total | 100% |
2. Parish subsidy declined significantly over the years. In 1976-77, parish subsidy in the Archdiocese provided an average of 26% of elementary school income. By 1986-87, it was 10%. In 1999-00, subsidy provided only 2% of school income. In 1999-00, eighty schools received no parish subsidy.
3. The Archdiocese subsidizes urban elementary schools with $3,453,000 from Together in Mission. Urban high schools are subsidized $1,675,000 from the annual parish assessment. The Daniel Murphy Foundation also provides annual support of $1.5 million for high schools. These amounts have not increased in recent years. However, loans and other forms of monetary support have been given.
4. The Catholic Education Foundation provides approximately $3,500,000 to elementary schools and $1,700,000 to high schools for tuition assistance.
5. Other foundations and groups also provide substantial financial assistance to urban schools: e.g., Doheny Foundation, Riordan Foundation, Vision of Hope, Daughters of Charity and others. Annual commitments from these groups are significant.
6. Many Catholic elementary schools are "under-funded". In other words, their average income is so low that they cannot adequately fund teachers' salaries, hire special teachers (art, music, etc.), maintain the physical plant or purchase current supplies, textbooks and equipment.
Average 1999-00 per pupil expenditures in #10, #9 and #8 schools was about $2,000 and in #7, #6 and #5 schools it was about $2,300. This compares to #3, #2 and #1 schools which spend about $3,300 per pupil.
Some outside financial resources are available to #10, #9 and #8 schools, but few outside resources are available to #7, #6 and #5 schools. Some of these schools are now at risk and more will be at risk in the future.
Similarly, the small urban high schools are "under-funded". Subsidized and non-subsidized schools with less than 550 enrollment spent about $5,100 per pupil in 1999-00. By contrast, private Catholic high schools spent between $7,000 and $9,000.
7. Catholic schools seldom accurately calculate their cost-per-pupil. Parents and prospective donors are not aware of the actual cost to run the school, nor do they know how much the school should be spending to provide quality staff, programs and facilities.
Objectives and strategies
1. Schools will be required to make an accurate calculation of their actual cost-per-pupil and to calculate what their ideal cost-per-pupil would be, if resources were available.
Strategies1.1 The Department of Catholic Schools will instruct school administrators about how to accurately calculate the cost-per-pupil.
1.2 Each school will regularly communicate its cost-per-pupil information to parents and prospective donors. Parents will be shown what portion of the cost is covered by their tuition, fees and fundraising efforts, and what comes from other sources or is not funded.
1.3 Parents will be encouraged to pay some or all of the difference between tuition and the cost-per-pupil by an annual gift to the school.
1.4 The Department of Catholic Schools will provide sample formats for effectively communicating this information to parents.
1.5 In addition to the local school cost-per-pupil, parents, pastors and donors will be informed of the cost-per-pupil for maintaining the Department of Catholic Schools.
2. Elementary schools will be reclassified (#1 to #10) using 2000 Census data from zip code attendance areas for the school.
Strategies2.1 The Department of Catholic Schools has taken steps to achieve this objective. Changes to the new classifications will be phased in over the next two to four years.
3. Each year, schools will move their tuition rates closer to the actual cost-per-pupil.
Strategies3.1 Urban schools will need substantially more tuition assistance grants from the Catholic Education Foundation to achieve this objective.
3.2 Additionally, most schools must have a local tuition assistance fund to help low income families. Money for local tuition assistance can be financed by income from endowments, local fundraising, development or parish subsidy.
3.3 Parishes are encouraged to consider putting their annual parish subsidy into an annual tuition assistance fund, rather than giving a cash grant for school operating costs.
3.4 The budgeting and accounting process for schools and parishes may need to be modified to provide for proper accounting of tuition assistance dollars. Also, the Department of Catholic Schools will need to provide a procedure for schools to process tuition assistance applications and award local tuition assistance grants.
3.5 Discounts for second, third and fourth children should be phased out or greatly reduced. The rate at which these are phased out should correspond to the rate at which more tuition assistance dollars are available to aid large families with low incomes.
3.6 When new Catholic schools are started, tuition rates should be set at the cost-per-pupil and tuition assistance should be budgeted.
4. Elementary and archdiocesan secondary schools will substantially increase development income.
Strategies4.1 School councils will be increasingly well organized to help facilitate development programs. (See School Governance - Objective 1)
4.2 The Department of Catholic Schools will have resources for training principals and school councils to increase development income. (See Department of Catholic Schools - Objective 3)
4.3 School principals will have more time to help organize development
activities.
(See School Leadership - Objective 3)
5. Dollars raised by the school and put in reserve for school programs will be used exclusively for its designated purpose.
Strategies5.1 This issue should be addressed by policy approved by the Archdiocesan School Council.
