1996-2005: Fourth decade
saw changes in leadership

The attorney general’s lawsuit, filed in 1996, was the latest legal action in the dispute over the Sarita Kenedy East Estate that had been in the courts since 1960. Bishop Gonzalez asked everyone to “stand strong as a local church united in solidarity with our diocesan bishop.” He said Bishop Gracida’s silence was “dictated by prudence.” 

In a later statement issued by Bishop Gracida on the lawsuit, he asked for prayers and charity towards all involved. He said he was disappointed and had hoped to leave the diocese to his successor without legal entanglements, and still hoped he could. He said that his predecessors had experienced the same problems with legal issues involving the Kenedy Foundation and warned that not all stories appearing in the secular press were true.
 

Bishop Roberto Gonzalez visits the diocesan press operation in anticipation of closing it down and putting it up for sale in order to get control of a mounting diocesan deficit.   Archive photo

While relying heavily on the foundation for financial support, the diocese had overreached in its many initiatives. The diocese faced litigation expenses from eight lawsuits. The diocese’s grant support from the Kenedy Foundation had diminished greatly and it faced an inability to cover a debt of $12 million accrued over the past years from operational deficits, including $3.5 million from its broadcasting venture and $2 million from a bank line of credit.

This financial difficulty called for a new chapter in its history to begin. Foremost in this new reality was the need for budget reductions. This resulted in consolidations; a 32 percent reduction in staff; 43 specific cuts across all diocesan ministries; and ceasing all printing operations at the Diocesan Press and vacating its building and relocating the South Texas Catholic and the Diocese Communications Corporation. The new reality also called for “revenue enhancement” by initiating subscription sales program for the newspaper to the tune of $50,000.

The printing plant, which included offset and web presses, a plate maker and many other pieces of equipment, was offered for “occupancy”. The Cathedral Sunday Mass, which had been proposed for elimination in the budget cuts, was restored thanks to the Spohn Health System. Still, Bishop Gonzalez—who had been named by Bishop Gracida as head of the budget committee—announced the laying off of 67 employees and other budget cuts.

In March 1997, an agreement was reached with the attorney general on the lawsuit. It called for the Kenedy Foundation board to expand from seven to 13 members, with nine lay members and four bishops. The bishop of Corpus Christi and the auxiliary bishop of San Antonio would always have a seat on the board. No grants would have to be paid back and no board members would have to resign. It sought to remain loyal to Sarita Kenedy East’s will intentions.

In keeping with its prior practice, the diocese continued its custom of financial transparency by publishing in the South Texas Catholic the comprehensive financial reports of the diocese, detailed reports on parish contributions to second collections and burse fund reports. 

In 1997, Bishop Gracida observed 25 years as a bishop. His tenure in Corpus Christi had been “marked by a style of strong leadership and conviction to a number of causes, which often made him the focus of local and national media.” He had been a supporter of communications media. 

Bishop Gonzalez became the new bishop of Corpus Christi at the age 47, the youngest bishop in the country. Upon his installation, Bishop Roberto, as he preferred to be called, thanked Bishop Gracida and said he would “have a special place of honor.”

Due to the size of the financial crisis, Bishop Roberto had to implement more budget cuts. Ten more positions were eliminated in order to balance the budget. The announcement came that the newspaper would become a monthly in August with the new name of South Texas Catholic Monthly. The new format included 32 tabloid pages, including a Spanish column by the bishop, ministry resources, letters to the editor, a children’s page, etc. What did not change at the newspaper was its winning ways; in July 1998 it received two national press awards for guest columns and for story on the colonias.

Despite the bad financial news, the diocese continued meeting the needs of the faithful. At the close of 1998, it eased the burden on parishes by forgiving $1.2 million in parish debt. 

Just as things began to settle down, in early 1999 news came that the pope had named Bishop Roberto as archbishop of Puerto Rico, but he remained as apostolic administrator for the Diocese of Corpus Christi until the end of the year. In May the South Texas Catholic paid tribute to Bishop Roberto with a Special Edition: “Roberto friend, the people are with you!”

In July, results of a diocese self-study commissioned by Bishop Roberto was completed and published on the diocesan website. “Recommendations for the New Millennium,” complied by Texas A&M University Corpus Christi, had as its purpose to make recommendations to reduce the $13 million debt. The 94-page document contained 53 questions, which were answered by 20,962 respondents.
The year—and Bishop Roberto’s tenure in Corpus Christi—ended with the newspaper publishing a special edition dedicated to diocesan offices and operations that had been hard-hit by budget cuts.

On Feb. 3, 2000, the pope named Bishop Edmond Carmody of Tyler as the new ordinary in Corpus Christi. In response, the South Texas Catholic Monthly published a special edition on the new bishop.

In April 2000, the newspaper moved to the chancery. Later in the year, word came that Bishop James Tamayo had been named the bishop of the new Diocese of Laredo and the newspaper again published a special edition on the new diocese carved out of the Diocese of Corpus Christi. Bishop Carmody said the split was good for the Diocese of Corpus Christi because it would provide more time for remaining staff to tend to their ministries.

A great believer in missionaries—having been one—Bishop Carmody oversaw the influx of missionary priests, mostly from India, making it possible for every parish to have a resident priest.

By the end of his first year in Corpus Christi, Bishop Carmody realized the value of the South Texas Catholic and returned it to a biweekly publication and dropped the word “Monthly” from the masthead. It began to publish 16-20 pages twice a month, on the first and third Fridays, and was mailed to designated parishioners. It had a new format and a new look. Through the remainder of this 10-year cycle, the newspaper continued to win national press awards.

The year 2001, and much of the rest of the second half of this decade, was dominated by news about 9/11 and related events. The “nation moves from terror to prayer,” the newspaper headlined. Bishop Carmody asked the faithful to help the people of Iraq via a second collection. Funerals were held throughout the Iraq War for local soldiers killed in action.

Some highlights from the remaining years of this decade include the opening of the Our Lady of Corpus Christi Chapel, the dedication of Mother Teresa Homeless Shelter, the death of Pope John Paul II and the election of Pope Benedict XVII.  

A great believer in missionaries—having been one—Bishop Carmody oversaw the influx of missionary priests, mostly from India, making it possible for every parish to have a resident priest. Archive photo