Author: Lemcke, Sara E. Title: Catholic School Financial Viability in Utah

1 Author: Lemcke, Sara E. Title: Catholic School Financial Viability in Utah and the United States The accompanying research report is submitted to the University of Wisconsin-Stout, Graduate School in partial completion of the requirements for the Graduate Degree/ Major: MS Education Research Adviser: Alan Block, Ph.D Submission Term/Year: Summer, 2012 Number of Pages: 82 Style Manual Used: American Psychological Association, 6th edition XI understand that this research report must be officially approved by the Graduate School and that an electronic copy of the approved version will be made available through the University Library website XI attest that the research report is my original work (that any copyrightable materials have been used with the permission of the original authors), and as such, it is automatically protected by the laws, rules, and regulations of the U.S. Copyright Office. XMy research adviser has approved the content and quality of this paper. STUDENT: NAME Sara Lemcke DATE: 7/30/2012 ADVISER: (Committee Chair if MS Plan A or EdS Thesis or Field Project/Problem): NAME Dr. Alan Block DATE: 7/30/2012 ----------------------------------------------------------------------------------------------------------------------------- ---- This section for MS Plan A Thesis or EdS Thesis/Field Project papers only Committee members (other than your adviser who is listed in the section above) 1. CMTE MEMBER’S NAME: DATE: 2. CMTE MEMBER’S NAME: DATE: 3. CMTE MEMBER’S NAME: DATE: --------------------------------------------------------------------------------------------------------------------------------- This section to be completed by the Graduate School This final research report has been approved by the Graduate School. Director, Office of Graduate Studies: DATE: 2 Lemcke, Sara E. Catholic School Financial Viability in Utah and the United States Abstract This project focuses on how tuition can affect the financial viability of Catholic schools, both nationwide and specifically in Utah. Common financial obstacles in Catholic schools are identified. The traditional Catholic school tuition model - the parish model - is examined and more financially sustainable alternatives are explored. The history of the Catholic Church in the United States is studied, and the socioeconomic effects of immigration and cultural mainstreaming of Catholics is examined to see its effect on the numbers of Catholic schools in the country. This study focuses on the Catholic schools within the Diocese of Salt Lake City, Utah. A history of the Catholic Church in Utah is presented, focusing on the area’s Catholic schools. The history of the Catholic schools in the Diocese of Salt Lake City is examined to identify common characteristic among schools which have closed in the past: the departure of religious orders from schools, financial strain and changes in the neighboring populations. 3 Table of Contents Abstract………………………………..…...……….…………………………….……………….2 List of Tables……….……………….…………………………………………………………….4 Chapter I: Introduction…………………………………………..………..……………….………5 Statement of the Problem…………………..………………………………………….…..5 Definition of Terms………………………………………………..…………….…..…….6 Chapter II: Literature Review………………………………....…………………………………..8 Catholic Schools in the United States…………….……..…..…………………………….8 Utah’s Catholic History………………………..…………..…………………….………17 Second Vatican Council………………………..……………………………………..….19 Catholic Schools and Social Justice………………..….………..……………….……….21 Catholic Schools and Academics………………...………….………………………..….27 Who Sends Their Children to Catholic Schools?..............................................................30 Chapter III: Tuition and Tuition Models in Catholic Schools………….…………….………….34 Models for Tuition Income in Catholic Schools……………….…….……………..……46 Parish Subsidies…………………………..………………..…………………………….48 Alternatives to the Parish Model……………………………………………....…………48 Chapter IV: Discussion…………………………..……………………..………………………..58 Conclusions………………………………………………………………………………58 Recommendations…………………………….………………………………………….59 References……………………………….…………..………………..………………………….70 4 List of Tables Table 1: Tuition rates for high schools in the Diocese of Salt Lake City for the 2012-2013 school year (self-reported by individual schools).………..…………..……….………..……….58 Table 2: Tuition rates for schools in the Diocese of Salt Lake using a cost-based tiered tuition model with the option of needs-based financial assistance for the 2012-2013 school year (self-reported by individual schools)..…………………………..……………………….59 Table 3: Complete list of Utah Catholic Schools, currently operating, closed and/or restructured, arranged by opening date……………………………………….………………………..62 5 Chapter I: Introduction Statement of the Problem This study examines common financial obstacles of Catholic schools in the United States, and focuses specifically on the Diocese of Salt Lake City, Utah. Catholic schools in the United States have faced a consistent decline in enrollment and widespread closure over the past 50 years (Miller, 2006). Therefore, the traditional tuition models used by many Catholic schools nationwide fail to adequately meet the schools’ budgets and are unsustainable in the long term. As a result, many of the remaining schools have begun to explore alternative tuition models that revise how much individual families must pay in tuition costs (James, 2007). Since the 1950’s, Catholic schools nationwide have experienced falling enrollment, shrinking parish subsidies, a shift from a religious staff to a lay staff and tuition models that bring income levels which fail to sustain the school in the long term (James, 2007; Przygocki, 2004; Hallinan & Kubitschek, 2010; D’Antonio, Davidson, Hoge & Gautier, 2007). These factors lead to Catholic schools experiencing financial difficulties that could potentially result in the closure of schools. Between 1975 and 2011, 2,640 Catholic elementary schools and 418 Catholic secondary schools closed nationwide (Center for Applied Research in the Apostolate, 2012). Catholic schools facing financial difficulties may want to consider revising their financial structures in order to maintain long term financial sustainability. One answer is to restructure tuition models for additional financial support, and many Catholic schools across the country are in the process of adopting alternatives to traditional tuition models in order to become financially sustainable in the long term. These models include the cost-based tuition model, the negotiated tuition model, the inter-parish model, the stewardship model, the nativity model, the diocesan 6 model and the philanthropy model (James, 2007; Gelo & Meitler, 2003; Goldschmidt & Walsh, 2011). In 1965, Pope Paul VI declared during the Second Vatican Council that “All men of every race, condition and age… have an inalienable right to an education.” (1965). Many modern Catholic schools answered by diversifying the socioeconomic population of their schools. However, these schools then faced the challenge of accommodating both families who could afford to pay full tuition for their children and those who required financial assistance. Tuition models must be attractive to parents looking to enroll their children in a private school. Alternatively, Catholic schools looking to expand the economic diversity of their student populations must factor income assistance into their overall budgets. This study seeks to examine how Catholic schools restructure tuition both to meet their own financial needs and to accommodate those who may require tuition assistance. The majority of faculty and staff members, as well as students’ families, participate in Catholic schools by choice. Part of this choice involves making the decision to support the school financially through donations, tuition payments and the acceptance of salaries that may be lower than that offered at competing public schools or nondenominational private schools (Walton, 2010; Cieslak, 2005; Przygocki, 2004). Definition of Terms Income. The funds which Catholic schools take in to cover operating costs, including tuition, donations, grants and fundraisers. Income inclusion. The population of families in a Catholic school receiving some form of tuition assistance. 7 International student. A student who is not a United States citizen and whose primary residence is outside of the United States (Juan Diego Catholic High School, 2012). Lay person. An individual who has not been ordained in a Catholic Holy Order, or has not taken religious vows (O’Gorman & Faulkner, 2000). Parish model. The traditional model for Catholic School tuition. Schools charge one flat tuition rate per student, with the option of tuition assistance for those who qualify. Qualified Catholic. Families who are registered with local parishes, have children who are baptized Catholics, attend Mass on a regular basis and donate to and/or volunteer in their parish (Juan Diego Catholic High School, 2012). Religious. Individuals who work as priests, nuns, brothers, sisters, deacons and other positions within the Catholic Church as a result of undergoing the Sacrament of Holy Orders or by making religious vows (O’Gorman & Faulkner, 2000). Social justice. The actions taken by an organization to promote inclusion of marginalized persons or groups. Tuition assistance. A situation where a family has arranged to pay less than the asking price for Catholic school tuition due to financial need. 8 Chapter II: Literature Review Catholic Schools in the United States Prior to 1534, European settlers arriving

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