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  <body>&lt;p&gt;&amp;nbsp;&lt;/p&gt;
&lt;p&gt;YAKIMA, Wash. &amp;mdash; Citing the current economic crisis and the cost of caring for retired priests, the Catholic Diocese of Yakima on Tuesday announced layoffs that will affect programs for youth, Hispanics, religious education and fundraising.&lt;/p&gt;
&lt;p&gt;Eight directors of diocesan ministries are losing their jobs and a gang outreach ministry program is being discontinued.&lt;/p&gt;
&lt;p&gt;The Rev. Robert Siler, chief of staff of the Diocese of Yakima, said it's too soon to know the impact on parishioners and other members of the public, but programs and services are likely to be cut back.&lt;/p&gt;
&lt;p&gt;In addition to the ministry directors, employees working in eight other support positions are being eliminated or will have their jobs consolidated to reduce costs. In all, 16 people -- half of the 32 employees of the diocese's central office -- are losing their jobs.&lt;/p&gt;
&lt;p&gt;"These cuts are painful, but necessary," the Most Rev. Carlos Sevilla, bishop of the Diocese of Yakima, said in a news release. The downward-spiraling economy, he said, "has had a significant effect on the Diocese."&lt;/p&gt;
&lt;p&gt;The layoffs -- along with other cost-cutting measures -- are expected to save the diocese about $750,000 a year.&lt;/p&gt;
&lt;p&gt;Priests, serving mostly on a part-time, volunteer basis, will take over the duties of all but one of the lay ministry directors who are being laid off.&lt;/p&gt;
&lt;p&gt;The diocese programs include outreach to youth and young adults, Hispanic ministries, social justice and other ministries.&lt;/p&gt;
&lt;p&gt;Funding for the gang outreach ministry is being discontinued.&lt;/p&gt;
&lt;p&gt;"We don't have a priest who has the kind of skills that Alex Santillanes has brought to the ministry," said Siler. "If Alex is somehow able to continue that ministry on his own, that would be great. But we simply cannot afford to sustain that ministry."&lt;/p&gt;
&lt;p&gt;&amp;nbsp;&lt;/p&gt;
&lt;p&gt;Yakima Valley Barrios Unidos, which started in 1997 and became a Diocese program in 2001, focuses on gang prevention, education and intervention. It has locations in Yakima, Grandview and Toppenish. More than 70 young people are currently involved in the program.&lt;/p&gt;
&lt;p&gt;Santillanes, Barrios Unidos' executive director, said he hopes to continue the program without financial backing from the diocese. He said there's interest in forming chapters in Prosser and the Tri-Cities.&lt;/p&gt;
&lt;p&gt;"There's still a big need out there in the community," he said. "I strongly believe in the Lord. He's helped me overcome many obstacles, and I'll overcome this one, too. I'm still very optimistic.&lt;/p&gt;
&lt;p&gt;"I did lose my job and my position," Santillanes said. But, "I'm not going to quit. This continues to be my calling."&lt;/p&gt;
&lt;p&gt;Santillanes said it costs $70,000 to $80,000 to operate Barrios Unidos. He said he plans to regroup and seek other funding sources, and that he's not angry.&lt;/p&gt;
&lt;p&gt;"I have no ill will, no ill feelings, especially for Bishop Sevilla," he said, adding "I know (the decision) was not easy."&lt;/p&gt;
&lt;p&gt;A committee of 10 lay people and priests -- including Siler -- had been studying the diocese's financial situation since September, when the stock market plummeted. The group met about once a month.&lt;/p&gt;
&lt;p&gt;"Every time we met, the news about the economy was worse," Siler said.&lt;/p&gt;
&lt;p&gt;&amp;nbsp;&lt;/p&gt;
&lt;p&gt;The diocese's main investment fund, which contains savings deposits from parishes and other diocesan institutions, lost nearly $589,000 during the 2007-2008 fiscal year, according to Tuesday's news release. The previous fiscal year, the Diocese realized a gain of nearly $447,000 -- a difference of approximately $1.03 million.&lt;/p&gt;
&lt;p&gt;A little more than $1.8 million from the fund has gone toward the care of 15 retired priests, Siler said. In 2003, the diocese ran a capital campaign to raise funds for priests' retirement expenses. The goal was to reach $5 million, and about $3.5 million of the $4 million pledged has been paid.&lt;/p&gt;
&lt;p&gt;The interest from those contributions has brought in about half of the $400,000 needed to cover retirement expenses for priests, diocese officials said.&lt;/p&gt;
&lt;p&gt;The diocese has also used investment funds to run 41 parishes and programs, Siler said. He added that the diocese doesn't have any external loans and has not borrowed money from the fund to pay settlements for lawsuits involving abused victims.&lt;/p&gt;
&lt;p&gt;"That money generally has come from insurance or from the occasional sale of land," Siler said.&lt;/p&gt;
&lt;p&gt;&amp;nbsp;&lt;/p&gt;
&lt;p&gt;As part of the budget cuts, the diocese is suspending the publication of its quarterly magazine, the "Central Washington Catholic." The move is expected to save about $50,000, Siler said. About 20,000 households had been receiving the magazine.&lt;/p&gt;
&lt;p&gt;"We're exploring options for publishing on the Internet, or including a monthly news report in parish bulletins," Siler said.&lt;/p&gt;
&lt;p&gt;The closing of St. Peter the Apostle Church and Retreat Center in Cowiche is also part of the diocese's belt-tightening. Partially housed in a 1911 schoolhouse, the center loses about $100,000 a year, Siler said.&lt;/p&gt;
&lt;p&gt;Come February, the center will be mothballed until diocesan officials decide what to do with the aging school building in the long run. Reach Youth Ministry -- the traveling evangelistic Catholic retreat program that's housed at the center -- will be consolidating its operations into the newer portion of the facility.&lt;/p&gt;
&lt;p&gt;&amp;nbsp;&lt;/p&gt;
&lt;p&gt;The diocese will likely be leaning on its parishes -- and nearly 80,000 adherents -- in Central Washington for increased support. Beginning July 1, the diocese will be asking parishes for 6 percent of their Sunday collections, up from the 5.5 percent they give now, Siler said. That move should bring in an additional $45,000, he said.&lt;/p&gt;
&lt;p&gt;Parishioners are also asked to donate to the Annual Catholic Appeal, which -- according to the diocesan Web site -- "provides approximately 40 percent of the total budget of the Diocese of Yakima and most of the money required for ministries, programs and services benefiting all parishes."&lt;/p&gt;
&lt;p&gt;Employees learned of the diocese's restructuring plans on Monday.&lt;/p&gt;
&lt;p&gt;The 16 laid-off staffers will work until Feb. 28 and will continue to receive their salaries and benefits through March 31. And funds have been set aside to help them keep their health insurance through June or until they become eligible for other health plans.&lt;/p&gt;
&lt;p&gt;"We're trying to be as kind as we can to our employees," Siler said. "It's very difficult, but at the same time we have to be good stewards of the resources that have been entrusted to us."&lt;/p&gt;
&lt;p&gt;He said he didn't know the number of people who rely on diocesan ministry programs but said they are likely to see changes.&lt;/p&gt;
&lt;p&gt;"I don't think we can maintain the same level of service with the priests operating on a volunteer basis," Siler said. "There will have to be some reductions. We're focusing on what's essential."&lt;/p&gt;
&lt;p&gt;Siler and diocesan officials are still working on the specifics. And priests haven't yet been chosen to fill the roles.&lt;/p&gt;
&lt;p&gt;He and the bishop are hopeful the budget cuts will help the diocese weather this year's recession.&lt;/p&gt;
&lt;p&gt;"As the economy improves and our investment fund recovers, we'll be able to expand our programs again," Sevilla said.&lt;/p&gt;</body>
  <brief>Citing the current economic crisis and the cost of caring for retired priests, the Catholic Diocese of Yakima on Tuesday announced layoffs that will affect programs for youth, Hispanics, religious education and fundraising.  Eight directors of diocesan mi</brief>
  <category>City Desk, LOCAL</category>
  <created-at type="datetime">2009-01-14T00:59:22Z</created-at>
  <creator>By ADRIANA JANOVICH</creator>
  <current-date type="datetime">2009-01-14T06:44:08Z</current-date>
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  <headline>Downturn at diocese: Bad economy leads to layoffs</headline>
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  <priority>Web Story</priority>
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  <publication>Yakima Herald-Republic</publication>
  <publication-credit>Yakima Herald-Republic</publication-credit>
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  <published-at type="datetime">2009-01-14T06:57:21Z</published-at>
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  <record-number type="integer">6620640</record-number>
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  <slug>01/14/09 CATHOLIC CUTBACKS</slug>
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  <updated-at type="datetime">2009-01-14T06:57:25Z</updated-at>
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