Luxist

The Philadelphia Museum of Art is working to balance its budget in this economy. Philly.com finds that the museum is seeking to cut around $1.7 million from its operating budget for the fiscal year ending June 30. The cuts will take the form of staff and salary cutbacks, deferred exhibitions and, pending city approval, an increase in admission fees. The museum is trying to avoid a deficit in the next year which has been forecast to be as high as $5 million. The museum will eliminate 30 jobs which is about seven percent of the staff. Chairman H.F. "Gerry" Lenfest warns that if the value of the museum's endowment continues to fall more reductions may be required. Like other large museums the museum is dependent upon the interest and earnings generated by its endowment. The value of its endowment was at $346 million in July but by the end of December it had been reduced to $256 million. The museum also owes around $60 million in loans for expansion. The city of Philadelphia may be reducing its support of the museum as well, down from $3 million to around $2.4 million for fiscal 2010. 27/02/09