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New Orleans churches fear falling economy

Nonprofits are concerned, too, that people may scale back their giving.

BY BECKY BOHRER

Associated Press

NEW ORLEANS - Bishop J. Douglas Wiley has just a tent for a church and a fraction of his congregants, more than 2 ½ years after Hurricane Katrina.

But, he says, God's been good, and his parishioners, faithful.

He's praying the Almighty will remember the sacrifices of his mostly black flock and look kindly if the national economic downturn gets worse.

"The old saying goes, 'When the United States catches a cold, the black community catches pneumonia,' " said Wiley, whose Life Center Cathedral meets in a large tent in the shadow of his fenced-off, wind-damaged sanctuary. "But traditionally, the church has found a way, through God... through difficult times."

Economists say the billions of dollars pouring into the hurricane recovery could ease the slowdown here. With some neighborhoods left in ruins by the Aug. 29, 2005, storm, construction jobs should be plentiful.

Tax collections from purchases of building materials and furniture should keep coming. In March, city sales tax collections, which have fluctuated since the storm, hit $11.3 million; that compares with the $12.7 million collected the month before the storm.

Still, the specter of tough times is very worrisome in an area with an economy that's still recovering from such massive devastation -- and churches feel particularly vulnerable.

Some charitable and faith-based groups fear that local residents, worried about their job security and faced with higher prices for gas and food, may scale back their level of giving.

The Roman Catholic Archdiocese of New Orleans recently announced plans to close more than two dozen churches and merge the congregations because of financial concerns, post-storm population shifts and the nationwide shortage of priests.

The Second Harvest Food Bank of Greater New Orleans and Acadiana is struggling with expenses that have more than doubled since Katrina as it provides food to the needy in the region, including faith-based groups. Chief executive Natalie Jayroe has asked the state for help.

"There are so many things we don't know," she says. "I think people are giving so much, I wonder when they're going to reach the end of their checkbook."

For churches that have seen flocks scatter, the economy is one more thing to add to an already long prayer list.

Many pastors and parishioners believe their faith, and careful budgeting, should carry them through. But they also might need the help of the Federal Reserve's interest rate cuts and the federal tax rebate checks on their way out.

Louisiana State University economist Loren Scott said nonprofits would be hit hard if the economic situation gets "ugly," but he's not convinced it will.

While tourism is vulnerable and discretionary spending for things such as clothing, car sales and long trips could be cut, Scott believes the addition of what he estimates at $19 billion in planned construction over the coming years in the New Orleans area should provide a "nontrivial amount of insulation" against an economic downturn.