MAINZ – Auxiliary Bishop of Mainz and Vicar General, Dr. Udo Markus Bentz, who is also an economist in the diocese of Mainz, has order budget freeze from Monday, April 20, because of the economic consequences for the diocese of Mainz triggery the Corona crisis. This means that all expenditures and job advertisements already approved in the households are initially suspended and require the approval of the vicar-general. In an interview with the Mainz diocese news, the finance director of the diocese of Mainz, Christof Molitor, explains the necessary measures.
Mainz diocese news: How is the diocese of Mainz from the
economic consequences of the corona crisis-affected?
As a result of the corona pandemic, almost all economies around the world are experiencing sharp economic downturns. It is not foreseeable when economic output and employment numbers will reach the level of 2019 again. The effects on the financial situation of the diocese of Mainz and the parishes are also not yet fully foreseeable. Significant burdens are emerging in the following areas: the massive decline in church tax revenue, loss of income due to closings of educational and conference centers, loss of parental contributions for childcare in daycare centers and schools, defaults in adult and family education, additional costs for the short-term expansion the digital infrastructure (video conferences, home office workplaces), loss of collections and rental income (parish and parish rooms). If the situation normalizes from May and there is an economic recovery quickly, we expect additional expenses of 50 to 60 million euros with a planned budget volume of 357 million euros in 2020 and a planned net loss of 32 million euros. Estimates say that if the contact is blocked for one month, the gross domestic product will decline by around six percent. So the longer the crisis lasts, the greater the economic consequences will be.
And what about Caritas?
Caritas in the diocese of Mainz accompanies and supports people, advocates for disadvantaged people and also makes an important contribution to society as a provider of services and facilities such as hospitals or old people’s homes. In return, it receives almost 20 million euros annually from church tax funds from the diocese. The vast majority of Caritas benefits are refinanced from social benefits and grants. It can be assumed that the social problems will worsen as a result of the Corona crisis and that Caritas will face even greater challenges in the future, which means that new tasks will arise on the one hand. On the other hand, Caritas cannot currently perform some of its services – for example in daycare or in employment promotion projects – which will result in financial losses. It is to be hoped that part of this loss will be cover by the protective shield tied by lawmakers.
What does the crisis mean specifically for the parishes and institutions in the diocese of Mainz?
Church parishes also have lost revenue. For economic consolidation, it was decided last year that the budget allocations to the parishes should be ced by two percent per year for five years, i.e. ten percent over five years. Rising personnel and material costs are borne by the parishes. Due to the additional burdens of the Corona crisis, church congregations are increasingly faced with a financially difficult situation, which must be analyzed in each case. Saving potential results in particular from action in the property portfolio and the associated lower operating and maintenance expenses. However, this process can only really start in a few years after the new pastoral spaces have been defined. Properties that are not needed in the past can already be used today. Besides, rooms can be sea through cooperation opportunities. By merging secretariat offices and expanding digitization, synergy effects can be used and costs can be saved. try to further optimize costs and increase third party funding. There are working groups that prepare decisions for the committees.
What changes are there for the Episcopal Ordinariate in Mainz?
Molitor: The diocese’s annual results have been negative for some years now and structural consolidation measures are necessary. These measures must now be advised and implemented more quickly. The aim is to remain economically viable in the long term and to provide the defined pastoral priorities with sustainable financial resources. The budget lock is used to take a closer look at all major expenditures and investments in the individual departments and institutions, taking into account the scope and necessity.
Are there also areas that are exempt from the budget lock?
The budget freeze relates to the entire legal entity “diocese
Mainz “. This also means that job advertisements are suspended until further notice and exceptions require the written consent of the Vicar General. Special grants for construction work in the parishes, which have to be approved in advance by our supervisory bodies, will be handled even more restrictively until further notice. The wage, salary and pension obligations towards employees, as well as expenses resulting from existing contractual obligations for the diocese of Mainz, are excluded from the restrictions of the household lock. These are in particular electricity, water, heating, telephone, insurance, rental, and leasing.
What do your forecasts look like? How long will these measures be necessary?
That depends on the course of the crisis and the economic consequences.
If the Corona crisis is followed by a recession lasting several months or even years, the budget freeze will also have to be maintained for longer. This is certainly not a pleasant state of affairs for the administration either since all applications have to be discussed and approved individually. Let us, therefore, hope for everyone that this phase will not last too long.
