When Watson retired in 1982, Murphy became the new bishop. He founded the Emmaus Program, an annual convocation of diocesan clergy in 1983. In 1984, he announced a three-year plan to raise $9 million to cover diocesan expenses, including educational and social needs and the renovation of St. Peter Cathedral; the appeal raised over $14 million in pledges.
After Watson retired in 1982, Murphy took over as bishop. He initiated the Emmaus Program, a yearly gathering of clergy from the diocese, in 1983. In 1984, he unveiled a three-year plan to raise $9 million for diocesan expenses, including educational and social programs and the renovation of St. Peter Cathedral; the fundraising campaign collected over $14 million in pledges.