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Catholic Charities addresses budget shortfalls

News of the Diocese

May 13, 2009

J. Thomas Mullen, President and CEO of Catholic Charities in the Diocese of Cleveland announced today (Wednesday, May 13, 2009) several cost saving efforts that the Catholic Charities Health and Human Services system will embark upon commencing on or about June 1, 2009.

Mullen stated, ?With the anticipated funding shortfalls in the State of Ohio?s Budget and with numerous Counties in North East Ohio with whom we have contracts also indicating a reduction in contracted services with Catholic Charities and other non?profit organizations, we must begin to take action at this time.?  Mullen further stated, ?For many years we have annually received contracts with the State and Counties that reflected little or no increases in rates for services.  We have been able to absorb our additional costs through our stewardship and the generosity of donors to our Catholic Charities Annual Appeal.  Over a number of years we have covered inflation of about 3% per year.  That number now has well exceeded what we are provided by the public sector for contracts and without reductions to our operations we cannot further subsidize the public sector.?  The following steps are being taken for the remainder of fiscal year 2009.

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