Museums do more with less

April 6, 2009 at 12:00a.m.

NEW YORK (AP) — The recession is hitting museums hard from coast to coast, forcing directors to boost admission fees, cut budgets and staff, and put ambitious projects on hold. But in a twist on the bleak economic news, museums are actually reporting an increase in attendance.

“It’s not the worst of times for museums, curiously enough,” Michael Conforti, president of the Association of Art Museum Directors, says. “Although all nonprofits and profits are struggling, we do have a curious place in this reality.”

A snapshot of the economic fallout isn’t pretty:

UThe Las Vegas Art Museum slashed 30 percent of its budget, then closed its doors in February although its board called the closure “a hibernation” until the economy rebounds.

UThe Art Institute of Chicago’s endowment dropped 25 percent; to keep up with costs, it boosted the price of admission 50 percent to $18, prompting city aldermen to threaten to shut down the museum’s free city water.

UThe Detroit Institute of Arts cut 20 percent of its staff, and Baltimore’s Walters Art Museum and the Denver Art Museum both canceled upcoming exhibitions.

The recession has hit so hard that two museums have even done the unthinkable: In New York City, the National Academy Museum and School of Fine Arts, facing a $2.5 million debt, sold two artworks from its collection to cover operating costs. And in Boston, Brandeis University has proposed selling pieces of its collection, if needed, to boost the school’s falling endowment.

The outcry to those decisions was immediate and fierce, underscoring the widespread belief that museums can’t operate like ordinary businesses because of their unique role as temporary stewards of the world’s greatest works of art.

While few museums would dare to sell off their treasures, cost-cutting and restructuring has become the mantra for nearly all institutions, from the largest and richest such as the J. Paul Getty Museum in Los Angeles with a current endowment of $4.6 billion (from a high of $6 billion in 2008) to historic house museums such as The Stickley Museum in Morris Plains, N.J., with a half million dollar budget.

The Art Institute of Chicago ended upper management raises and lowered gallery temperatures; it is on tap to open a new $300 million “Modern Wing” in May, paid almost exclusively with private donations made before the economy soured. While museum officials said the increase in admission fees was not directly related to the economy, some Chicago aldermen said an increase in fees during a recession was unwise. The Metropolitan Museum of Art in New York announced it will cut 250 positions by summer and close 15 museum stores across the country.

But overall, museums are humming with activity and continuing to present major exhibitions. For now, budget cuts averaging anywhere from 5 percent to 15 percent are not significantly affecting exhibitions and programs.

And even though museums such as the Brooklyn and Art Institute of Chicago recently raised admissions, directors at many other museums where admission is free vow to keep it that way, including at the Getty. The free Cincinnati Art Museum recently went a step further and stopped charging for special exhibitions.

“We wanted to be able to share those exhibitions with as many as possible, especially in these tough economic times,” said Cincinnati Art Museum Director Aaron Betsky, who has had to reduce the museum’s budget by 10 percent and lay off seven people.

Ironically, it’s the museums with the big endowments such as the Getty, which has seen a 25 percent drop in its investment portfolio, that are experiencing the most economic pain since endowments can fund as much as 70 percent of operating budgets. Less endowment-dependent museums also face budgetary shortfalls but the scenario varies from institution to institution. Generally, though, they tend to fare better as their operating budgets are largely driven by attendance and earning income.

For now, most museums are not retrenching their public programs — concerts, lectures, educational and family events, many of which are free. Perhaps emblematic of the times, the turnout has been much larger in recent months.

And the downturn has put some expansion plans on hold, including at the Cincinnati Art Museum and St. Louis Art Museum. Fundraising has slowed for a new home for the Museum of Contemporary Art in Cleveland; the museum has put the building plan on hold until there are signs of an economic rebound.