The Roman Catholic Diocese of Syracuse is confronting significant financial challenges as it contributes to a $100 million fund established for survivors of sexual abuse. According to Stephen Breen, the diocese’s chief financial officer, the diocese may need to sell property, engage in aggressive fundraising, or cut costs to manage these financial burdens. Breen expressed confidence, stating, “We can make it through this,” during a recent bankruptcy court hearing.
The diocese filed for bankruptcy in June 2020 due to a growing number of sex abuse lawsuits, with approximately 400 claims filed. The $100 million fund aims to resolve these lawsuits, with half of the amount already secured by parishes, schools, missions, and Catholic Charities. The diocese plans to cover the remaining half through $20 million in cash and investments, supplemented by $30 million in loans from five diocese-affiliated nonprofits.
The settlement, which is the second largest of its kind by a bankrupt Roman Catholic institution, does not include contributions from the diocese’s insurers, who have been criticized for avoiding their obligations. Despite these challenges, survivors and the diocese continue to negotiate non-monetary settlement terms, including improved child protection protocols and the release of documents related to abusive personnel…