Museum director shares budget information
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To our members, supporters, and community:
The current recession is one of the most significant economic challenges since the Great Depression. Families, corporations, government agencies, and non-profits have all been affected. For more than a year, the Portland Art Museum has been closely monitoring the economy and its impact on our investments, earned income, and donations. During the 2009 fiscal year (FY09):
- •the Museum’s endowed funds lost $12.5 million
- •membership revenue is projected to be down 12 percent
- •although Museum attendance is only down three percent, revenue from paid admissions is down more than 20 percent. This is due to a lower percentage of non-member visitors.
Last summer, and again in January, we made decisions to mitigate these declines in our revenue. We lowered expenses through reductions in staff and benefits. We made these decisions thoughtfully, retaining core programs and mission-related activities.
As we prepared the 2010 fiscal year (FY10) budget, we realized that it was critical to again institute a measured and thoughtful course of action to preserve the Museum’s renowned collections, world-class facilities, strong curatorial program, and important educational agenda.
Museum trustees and staff have examined and evaluated every aspect of the institution considering potential cost savings and revenue increases. As a result, the Board of Trustees has approved the FY10 budget reflecting a 13 percent decrease from the FY09 budget.
I want to share with you the details of this budget, where we have reduced expenses, and how we will make up for losses suffered during the past year.
- •A 10 percent reduction in non-salary operating expenses.
- ·Every expense in the budget has been closely scrutinized to eliminate waste and increase efficiencies.
- •Exhibition expenses have been reduced.
- ·Savings will be realized through creative partnerships and scheduling adjustments. These changes will not impact the importance or quality of the exhibitions.
- •Reductions in personnel expenses.
- ·Five positions have been eliminated.
- ·Some senior staff members will take five to six percent salary reductions. All other regular full-time and part-time employees will take a one-week furlough during the first six months of FY10.
- ·Two curatorial positions, currently vacant, will not be filled unless new money is raised or endowed.
- ·The Museum will suspend contributions to the employee 401k plan during FY10.
- •The Board of Trustees will lead a campaign to generate $1 million in new donations for exhibitions and education during FY10.
- •To increase earned income, adult general admission will increase by $2 (from $10 to $12).
- ·The Museum will offer free admission one evening a month, beginning in July, to ensure access for all.
- ·Free admission for children 17 and younger will continue, along with free school group tours. The Museum also offers one free day a quarter.
- ·Members will continue to receive unlimited free admission to the Museum’s permanent collection and special exhibitions on an annual basis.
These measures will assure that the Museum’s exhibition and education programs for the upcoming year remain robust. In fact, I believe that you will see some of the most exciting Museum programming during the next year.
This is an unprecedented moment in the Museum’s history. Now, more than ever, we need your continued participation. Please maintain your Museum membership and support. With the commitment of our dedicated staff, the leadership of our board, and support from generous members of our community, I believe that we will withstand the current economic recession and evolve with a new and exciting vision for the future.
Brian J. Ferriso
The Marilyn H. and Dr. Robert B. Pamplin Director
Portland Art Museum
Posted: Friday, June 26th, 2009 | 
Museum Update
