Diocese of Buffalo begins vicariate meetings to present parish contribution plan to fulfill Chapter 11 settlement terms

Today, the Diocese of Buffalo hosted the first in a weeklong series of vicariate meetings to share details on the Chapter 11 settlement allocation methodology with parish leadership, including all clergy, trustees, business managers and chairpersons of the finance and parish councils.

At these meetings, parish leaders will be provided an overview of the proposed $150 million settlement, which has been agreed to in principle by the Creditors Committee. Each Parish will receive a detailed statement of their expected contribution to the settlement fund. The contribution is based upon a progressive percentage applied to the parishes’ self-reported and unrestricted assets held as of Aug. 31, 2024, the end of the diocesan fiscal year.

“As we have maintained throughout this protracted process, the participation of the entire Catholic family is necessary to bring to a close this painful chapter of our diocese and achieve a level of restitution that is owed to the many who have had to carry the tremendous burden of physical, emotional and spiritual harm of sexual abuse throughout their lives,” said Bishop Michael W. Fisher.

Contribution percentages range from 10 percent to 80 percent of each parish’s unrestricted cash with the highest percentage being applied to parishes scheduled to be closed or merged as part of the Road to Renewal, aimed at better sharing resources and bringing together unsustainable parishes with stronger parish communities.

Parishes appealing their closure to the Vatican through the petition process are still assessed at 80 percent of their unrestricted cash. If the appeal is successful and the closure decision is overturned, the parish will be refunded the difference between the 80 percent assessment and the rate that would have applied had the parish not been designated for closure.

All payments are required to be received by the diocese by July 15, 2025, and will be held in reserve until the settlement is confirmed by the federal bankruptcy court. Parish contributions from this process total $80 million of the $150 million settlement proposed by the diocese to the Creditors’ Committee and accepted in principle. Additional sources of contributions to the settlement are expected from the diocese, affiliate Catholic organizations, as well as from proceeds of real estate sales. Proceeds that may be provided through coverages by diocesan insurance carriers would be in addition to this settlement amount.