The Associated Press

LOUISVILLE - The Roman Catholic Archdiocese of Louisville's 122 parishes will avoid a planned increase in their required contributions to the archdiocese, officials said this week.

Following a $25.7 million settlement with clergy-abuse victims more than a year ago, the archdiocese hiked parish assessments 2 percent in January, to 7 percent of parish income. Another 1 percent increase was scheduled to take effect in July 2005, the archdiocesan newspaper reported.

But Archbishop Thomas C. Kelly told pastors at recent meetings in Louisville and Bardstown that finances were unexpectedly improving and the increased assessment wouldn't be levied during the 2004-2005 fiscal year.

The archdiocese will also resume paying for life and long-term disability insurance for parish and school employees. Parishes also took on that cost in January.

Brian Reynolds, chancellor and chief administrative officer, told the archdiocese publication The Record that total savings to all parishes would be $1.8 million annually.

"The financial impact of increased assessments was having a negative impact on parish finances that was greater than originally thought," Reynolds said.

The Catholic Services Appeal to 200,000 parishioners in 24 counties brought in $2.7 million and investment income improved, allowing the changes to be made, Reynolds said.

The settlement with 243 plaintiffs was paid for through unrestricted investments, which severely decreased interest income. Fifty out of 250 staff positions were eliminated as the archdiocesan budget was slashed from $8 to $6 million. Those jobs have not been restored.

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