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I'm not steeped in the social requirements of weddings (I run from them as much as possible and have been pretty successful) and have never been to a bachelor party. So take that grain with my advice:
I'd say to the groom:
I'd be happy to organize a bachelor party for you, but as you know things are economically tough for me right now so I can't do anything that costs more than a pittance [note: don't actually say pittance, it'll get him mocked]. So, we can do a relatively cheap home based party with friends or you can tell me what you'd like and how we might go about paying for it.
And if that's not acceptable be willing to resign the position so that he can find a best man who will more properly fill the role.
As another caveat, at my first wedding I did have a best man but I honestly have no memory of him being involved in anything other than standing there for five minutes (the only reason I remember who it was is because he is my first wife's second husband, which is my most cherished Jerry Springer life story).
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