"In the long run, it's not good for the city for charters to be pulling kids from successful Catholic schools that already are fulfilling a purpose," O'Neill said. "We have to help them develop a financially sustainable model."
Joseph P. McFadden, an auxiliary bishop who has overseen education in the archdiocese, said he hoped the effort would attract "a wider audience" to support Catholic schools.
"I think Mike's feeling is by looking at a more holistic approach, we may be able to attract the dollars and support from foundations and groups that wouldn't necessarily give to Catholic schools but would be willing to support an initiative for choice in education," said McFadden, who will be installed as bishop of Harrisburg next month.
When it comes to charters, O'Neill said, the project plans to assist successful ones.
"We also need to help the poor operators get better or help the [district] move to give them to someone who can be successful."
He praised Philadelphia Superintendent Arlene Ackerman's Imagine 2014 plan, which calls for restructuring failing schools. Seven will be run by charter operators in the fall.
Said O'Neill: "That is definitely the direction our city should be moving."
Contact staff writer Martha Woodall at 215-854-2789 or martha.woodall@phillynews.com.