Finance
Pope’s plea to cardinals marks latest step in long-running financial reform
ROME – A new letter to cardinals asking them to tighten their belts, help the Vatican seek new resources and exhibit an ethos of generosity, all towards the goal of a “zero deficit,” marks the latest move in Pope Francis’s long-running goal of financial reform.
In a letter to the College of Cardinals signed Sept. 16 and published Sept. 20, Pope Francis spoke of his 10 years trying to overhaul the Roman Curia, the Vatican’s central governing bureaucracy, which culminated with the publication in 2022 of Praedicate Evangelium, which outlines the new structure and roles of Vatican departments and their officials.
“Despite the difficulties and, at times, that temptation of immobility and rigidity in the face of change, the results achieved in these years have been many,” he said, and thanked the cardinals for their role and support in his reform efforts.
The pope said he would now like to focus on one of the topics that received the most attention in the general congregations prior to the 2013 conclave that elected him: namely, “the financial reform of the Holy See.”
“The past years have demonstrated that the requests for reform urged in the past by many members of the College of Cardinals have been far-sighted and have allowed us to acquire a greater awareness of the fact that the economic resources at the service of the mission are limited and must be managed with rigor and seriousness,” he said.
This, he said, must be done in order to ensure that “the efforts of those who have contributed to the patrimony of the Holy See are not wasted.”
For this reason, he said, “a further effort is now required from everyone so that a ‘zero deficit’ is not just a theoretical objective, but an actually achievable goal.”
Francis said the curial reforms he has carried out so far have laid the groundwork for “ethical policies” that improve the financial performance of existing assets, and he urged the institutions of the Holy See to seek external resources to cover operating costs, ensuring transparency and responsibility.
Pope Francis said the church must set an example in cost reduction, “so that our service is carried out with a spirit of essentiality, avoiding the superfluous and carefully selecting our priorities, encouraging mutual collaboration and synergies.
To this end, he urged those who are better off financially to help those who are in need, saying entities with a surplus “should contribute to cover the general deficit.”
“This means taking care of the good of our community, acting with generosity, in the evangelical sense of the term, as an indispensable prerequisite for asking for generosity also from the outside,” he said.
Pope Francis closed asking the cardinals to welcome his message with “courage, a spirit of service, and to support the ongoing reforms with conviction, loyalty, and generosity.”
The pope’s plea comes after several embarrassing financial scandals have rocked the Vatican in recent years.
Last year a mega-trial featuring the first-ever cardinal to be indicted and charged by the Vatican’s own court, Italian Cardinal Angelo Becciu, came to a close after more than a year. The trial centered around a $400 million investment into a London real estate venture that ended up costing the Vatican over $200 million.
The scandal surrounding the London property deal exposed both the incompetence of the Vatican officials managing the Holy See’s money, as well as the corruption of some of its business associates, with monsignors inside the system signing away controlling shares while agreeing to pay inflated fees to disreputable Italian financiers.
In recent years the Institute of Religious Works (IOR), also known as the Vatican Bank, has also faced pressure over the seizure of some $33 million in assets by three companies who sued the IOR over its withdrawal from an investment deal.
Many new laws implemented by the pope came amid the COVID-19 lockdown in 2020, as Francis faced increased pressure over a mounting economic crisis, including significant debts to its pension fund as well as pressure from European financial watchdogs pushing the Vatican to show improvement in the prosecution of financial crimes.
In 2020 alone, the pope named a new director for the Vatican’s Financial Information Authority, he fired five employees believed to have been involved in the London property deal, and he held various meetings with Vatican department heads to address the Vatican’s financial situation and outline potential reforms.
He also shut down a slew of holding companies based in Switzerland and which were created to manage various portions of the Vatican’s investment portfolio and real estate holdings.
That spring, the pope transferred the Vatican’s “Center for the Elaboration of Data,” which is essentially its financial monitoring service, from the Administration of the Patrimony of the Apostolic See (APSA) to the Secretariat for the Economy, in bid to create a stronger distinction between administration and oversight.
Francis then issued a new procurement law applicable to both the Roman Curia and the Vatican City State which, among other things, barred conflicts of interest, mandated competitive bidding procedures, required evidence that that contract expenditures are financially sustainable, and centralized control over contracting.
In august of that year, he issued an Ordinance from the President of the Governorate of Vatican City State requiring volunteer organizations and juridical persons of the Vatican City State to report suspicious activities to the Vatican’s financial watchdog entity, the Financial Information Authority (AIF).
Later, in early December 2020, Francis issued new statutes transforming AIF into the Financial Supervision and Information Authority (ASIF), confirming its oversight role for the so-called Vatican bank and expanding its responsibilities.
Shortly after, Francis established a “Commission for Reserved Matters” determining which economic activities remain confidential. The commission itself, which covers contracts for the purchase of goods, property, and services for both the Roman Curia and Vatican City State offices, was part of new transparency laws enacted by the pope in June of that year.
In December of that year, the pope announced the creation of the “Council for Inclusive Capitalism with the Vatican,” a partnership between the Holy See and some of the world’s largest investment and business leaders, including CEOs from Bank of America, British Petroleum, Estée Lauder, Mastercard and Visa, Johnson and Johnson, Allianz, Dupont, TIAA, Merck and Co., Ernst and Young, and Saudi Aramco.
The pope also issued new legislation stripping the Secretariat of State of its ability to independently manage the hundreds of millions the Holy See receives annually in donations and investments, transferring that power to APSA.
Those funds are now consolidated by APSA into the Holy See’s consolidated budget, while the Secretariat for the Economy oversees spending.
Follow Elise Ann Allen on X: @eliseannallen
Before seeking a new referendum MPS needs to rebuild trust in the community through completing state audits, putting in place controls to prevent overspending and routine reports to the public.
For MPS Superintendent Brenda Cassellius, who just wrapped up her first year leading Milwaukee’s public school system, her tenure has been punctuated by some very big numbers.
The first is $252 million. That is the amount of new spending voters narrowly approved in an April 2024 referendum to support operations in Wisconsin’s largest school district. Just months later, MPS was rocked by revelations the district was months behind in filing key financial reports to the state, which led to former Superintendent Keith Posley’s resignation.
The second is $1 billion. MPS faces a deferred maintenance backlog exceeding $1 billion. The district’s enrollment has declined 30% over the last 30 years, leaving many schools at less than 50% full. That, in part, is driving a plan to close some schools and to improve others to help lower costs.
The final is $46 million, the deficit MPS was running for the 2024-25 school year, an unexpected shortfall which has led to hundreds of staff layoffs.
Getting the district’s accounting, budgeting and financial reporting back on track has dominated Cassellius’s first year at MPS. In an April 15 interview with the Journal Sentinel’s editorial board, she talked in detail about the challenges putting that into order and progress she sees in restoring transparency into its operations.
State funding and aging buildings create budget nightmares
Cassellius says state needs to keep up its share of school funding
In an interview with the Journal Sentinel editorial board, MPS leader Brenda Cassellius says budgets and buildings are her two top worries.
Cassellius said the on-going budget crisis is her top concern. She said the state’s failure to live up to its share of funding is exacerbating MPS’ budget woes. A group of school districts, teachers and parents filed suit against the state Legislature and its Joint Finance Committee claiming the current state funding system is unconstitutional and prevents schools from meeting students’ educational needs.
Funding for special education is especially critical. About 20% of MPS students have disabilities, almost twice the share of the city’s charter schools, and the average of 14% across Wisconsin.
“What’s keeping me up now, you know, is really just the budget crisis we’re in, with not only this year but multiple years going out without additional state aid, we’ve been not getting funding for what our needs are for our students, and particularly our students with special needs,” she said.
Although the state budget increased special education funding to a 42% reimbursement rate, the actual rate has been about 35%. Another component to the budget headache is the age of MPS buildings. The average age is 85 years-old compared to 45 across the nation.
“We have just kicked this can down the curb or kicked it down the street or whatever you call it for too long. And it’s time that we really take on a serious conversation about the conditions of the learning environments in which we send our children,” she said. “Particularly in Milwaukee Public Schools, we serve the most vulnerable children. Children who have language barriers, children who have disabilities, children in high-concentrated poverty.”
What needs to happen before MPS seeks another referendum
Voters need to be comfortable MPS has made tough budget decisions
In an interview with Journal Sentinel editorial board, Brenda Cassellius said voters will need to see budget improvements before seeking more spending
Cassellius said MPS will definitely need to go back to voters for a new referendum in the future. In addition to the 2024 measure, voters approved an $87 million plan in 2020.
Before doing that, she said the district first needs to rebuild trust in the community through completing required state audits, putting into place controls to prevent overspending and routine reports to the school board and public about finances.
“I don’t think that the voters are going to want us to bring something forward until they feel comfortable that we have done the cleanup that is necessary,” she said. “And we’ve built the trust that we have the sufficient controls in place.”
In the interim, she’s hoping the state will meet its constitutional responsibility to adequately fund public schools.
“What the public expects is you know where the money is, you’re spending it as close as you can to children, you’re getting good on the promise around art, music, and PE, and the things the public said they wanted to fund,” Cassellius said. “And they want their kids to have so that they have a quality education and an excellent education in Milwaukee Public Schools, and that they had the right amount of staff that they actually need. In the school to be safe and to run a good operation.”
Rebuilding finance staff in wake of $46 million in overspending
MPS is rebuilding school finance staff in wake of reporting lapses
In an interview with the Journal Sentinel editorial board April 15, MPS superintendent discusses accountability for district’s financial problems.
The $46 million budget shortfall from the 2024-25 school year started coming into view last fall and was confirmed in mid-January. Cassellius noted that in addition to hiring a new superintendent, MPS also parted ways with its comptroller and CFO.
“We are really rebuilding the personnel and staff of the finance department. That is what’s critical, is having the right people in the right seats doing the work,” she said. “Also critical is making sure that you have the right controls in place. The audit findings found that we did not have proper controls in place and now we have those proper controls in place and when we find things we put new SOPs in place and that is what any business does.”
Identifying that shortfall, though painful, was the result of better accounting.
“Being three years behind in auditing means that you don’t have full sight on your actual revenues and expenditures. And so we have now full sight of our revenues and our expenditures and that’s why we were able to see this new deficit of $46 million,” she said. “And we still continue to work with DPI on those processes to make sure that every month we’re doing monthly to actuals and doing those accounting, reporting that to the board. In a way that is consumable to the public that they can understand.”
Jim Fitzhenry is the Ideas Lab Editor/Director of Community Engagement for the Milwaukee Journal Sentinel. Reach him at jfitzhen@gannett.com or 920-993-7154.
Property markets move in cycles, and with interest rates rising and other pressures like high fuel costs, some markets are clearly slowing down. Many first-home buyers who have only ever seen markets going up are conditioned to think that when purchasing, competition is always intense and decisions need to be made quickly.
In those times, buyers often feel they need to act fast, stretch their budget and secure a property at almost any cost. But things have definitely changed.
In a softer market, the dynamic shifts. Properties take longer to sell, competition thins, and it’s the vendors who begin to feel pressure.
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For buyers who understand how to navigate that change, the balance of power quickly moves in their favour. The opportunity is not simply to buy at a lower price. It is to negotiate from a position of strength.
If that’s you right now, these are the key skills first-home buyers need to take advantage of in softer market conditions.
The most important shift in a soft market is psychological. In a rising market, buyers often feel like they are competing for limited opportunities. In a softer market, the opposite is true. There are more properties available, fewer active buyers and less urgency overall. This gives buyers options.
When buyers understand that they are not competing with multiple parties on every property, their decision-making improves. They are more willing to walk away, compare opportunities and avoid overpaying. Negotiation strength comes from not needing to transact immediately. When that pressure is removed, buyers are able to engage more strategically.
One of the most common mistakes first-home buyers make is continuing to apply strategies that only work in rising markets. Auction urgency is a clear example. In strong markets, auctions often attract multiple bidders and create competitive tension. In softer conditions, properties are more likely to pass in, shifting the process away from a public bidding environment into a private negotiation.
This is where leverage increases.
Private negotiations allow buyers to introduce conditions that protect their position. These may include finance clauses, longer settlement periods or price adjustments based on due diligence. Opportunities that are rarely available in competitive markets become standard in softer ones.
The Board of Visitors Finance Committee met Thursday and approved a 3.6 percent average increase in tuition, a 4.8 percent average increase in meal plan costs and a 5 percent increase in the cost of double-room housing for the 2026-27 school year. The approval was unanimous amongst Board members, though some expressed resistance to the increases before voting in favor of them.
The Committee heard from Jennifer Wagner Davis, executive vice president and chief operating officer, and Donna Price Henry, chancellor of the College at Wise, about reasons for the raise in tuition and rates. According to Davis and Henry, salary increases for professors and legislation passed by the General Assembly contribute to tuition and rates increases.
The Finance Committee, chaired by Vice Rector Victoria Harker, is responsible for the University’s financial affairs and business operations, and the Committee manages the budget, tuition and student fees.
Changes in tuition vary between schools, with the School of Law seeing at most a 5.1 percent increase, the School of Engineering & Applied Science seeing at most a 3.2 percent increase and the College of Arts and Sciences seeing at most a 3.1 percent increase in tuition for the 2026-27 school year.
For the 2026-27 school year at the College at Wise, the Committee also unanimously approved a 2.5 percent average increase in tuition, a 3.8 percent increase in meal plans and a 2 percent increase in the cost of housing.
Last year, the Committee approved a 3 percent average increase in tuition, a 5.5 percent increase in meal plans and a 5.5 percent increase in the cost of housing for the University.
Davis cited increased costs as the primary reason for the approved increase in tuition. She said that the budget that could be passed by the General Assembly for June 30, 2027 through June 30, 2028 could increase professor salaries — University professors receive raises via this process. Davis said that the Senate and House of Delegates have separate proposals dealing with the pay increases that are currently unresolved, with House Bill 30 raising salaries by 2 percent and Senate Bill 30 raising salaries by 3 percent.
Davis said every percent increase in faculty salaries costs the University $15 million annually, and the Commonwealth will increase funding to the University by $1-2 million to help pay for that increase. According to Davis, the most common way to stabilize the budgetary imbalance caused by raised salaries is through tuition raises.
Beyond the increase in salary, Davis cited the minimum wage increase, inflation and Virginia Military Survivors & Dependents Education Program as increased costs to the University. VMSDEP is a program that gives education benefits to spouses and children of disabled veterans or military service members killed, missing in action or taken prisoner. Davis said that the program is “partially unfunded” and could cost the University somewhere between $3.6 to $6 million, depending on how many students qualify for the program.
Davis spoke on other contributing factors to the increase in tuition, specifically collective bargaining — which allows workers to bargain for better wages and working conditions.
“If we look at other institutions or other states that have collective bargaining, [collective bargaining] does put an upward pressure on tuition,” Davis said.
Prior to Thursday’s meeting, the Committee heard the proposal for tuition increases from Davis and Henry April 6 in a Finance Committee tuition workshop with public comment. During the tuition workshop, tuition increases ranged from 3 to 4.5 percent for the University and 2 to 3 percent for the College at Wise. Both increases approved Thursday are within the ranges originally proposed.
Meal plan costs, on average, will be increasing by 4.8 percent in the upcoming academic year. Davis said that the University has been expanding dining options with the opening of the Gaston House and new locations for the Ivy Corridor student housing that is still in progress. She also said that the University has been taking steps to increase the availability of allergen-friendly food options.
Davis shared that the 5 percent cost increase in housing is due to the expansion of student housing in the Ivy Corridor. Davis also said that there will be 3,000 new units added to the Charlottesville housing market by 2027, of which 780 beds will be for University housing. Davis said that she hopes the Ivy Corridor housing would “free up” the city housing supply by having more students live on Grounds.
Board member Amanda Pillion said she was “concerned” about how tuition increases would harm rural families — she said the constant increases in cost could make a University education out of reach for middle-income Virginians.
“This is the second governor I’ve served under. Both times I’ve heard affordability, affordability, affordability,” Pillion said. “We need to really be conscious of the fact that … there is a large group of people that [are middle-income] that these increases [in tuition and fees] are really tough for.”
The Committee also approved a renovation for The Park — an 18-acre recreational hub in North Grounds — which will cost $10 million. As part of the renovation, The Park will include a maintenance facility, storm water systems and a maintenance access route. Davis said the renovation will address safety and security issues for the 200 people that use The Park daily. According to Davis, the University will use $2 million of institutional funds and issue $8 million of debt to fund the renovation.
The Finance Committee will reconvene during the regularly scheduled June Board meetings.
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