LACMA loses 23% of its investments in meltdown year

No arts nonprofit is apt to show a rosy balance sheet for the year of the great economic meltdown, unless by rosy one means red ink.

In the case of the Los Angeles County Museum of Art, which recently posted on its website the audited financial statement for the 2008-09 fiscal year ending June 30, the bad news includes a 23% decline in the value of its cash and investment portfolio, from $254.7 million to $196 million.

Barbara Pflaumer, the museum's chief spokeswoman, said that by quickly reining in spending when the economy tanked, including a hiring freeze, canceling some exhibitions and postponing a $50-million segment of its ongoing expansion and renovation program, LACMA avoided "any major hiccups that kept us from operating on a normal basis" and managed to escape the large-scale layoffs that have hit many other big museums, including L.A.'s J. Paul Getty Trust and New York's Metropolitan Museum of Art.

With L.A. County footing nearly a third of the bill, LACMA's expenses -- including such mandatory costs as depreciation and interest on its $385-million debt -- came to $74.1 million for the year, down a tick from $74.4 million in 2007-08.

Eight jobs were lost, however -- six by layoffs, and two via retirement vacancies that won't be filled  -- leaving a LACMA staff of about 350. An additional 16 openings won't be filled until finances improve.

Of greatest concern, LACMA saw donations shrink from $129.7 million to $29 million. This is while the museum is trying to reel in major gifts to fund the $450-million campus "transformation" campaign that's in the second of three planned phases, with about $134 million still to go.

On the positive side, LACMA was able to acquire new art valued at $42.8 million via purchases and donations, down slightly from $45.7 million the previous year. And attendance grew to 853,000 from 825,000, Pflaumer said. Maybe $12 general admission for a day looking at art -- and free for those 17 and under -- has its appeal in a rotten economy.

Click here for the full story.

-- Mike Boehm

Comments

[Timothy D. Naegele]

Much worse is to come, as the economic tsunami keeps rolling.

See, e.g., http://www.realclearpolitics.com/news/tms/politics/2009/Apr/08/euphoria_or_the_obama_depression_.html AND
http://www.americanbanker.com/issues/173_212/-365185-1.html

[Daniel]

The Broad is amazing and his contributions to Art are as well.

In light of these financial woes perhaps building yet ANOTHER world class museum isn't the answer. Broad should use that money to set up a trust for the Los Angeles Art Community. LACMA/MOCA/Broad/Independent galleries.

Building another museum does nothing for the Art Community of Los Angeles as a whole. A trust will ensure we have a strong Arts community that draws worldwide talent for years to come.

[jojo]

fire the museum security guards....
that's why my wife and i haven't been back in 10 years....

[Dave Pilliod]

What is LACMA, an art museum or a hedge fund?

Dave Pilliod

[JAM]

Great comment jojo! They need nicer guards otherwise they will tun away the audience the museum needs for $$$.

[Cate]

"Maybe $12 general admission for a day looking at art -- and free for those 17 and under -- has its appeal in a rotten economy."

It appeals to me. The admission fee is very reasonable. I'd like to visit the museum with my family in LA over Thanksgiving holiday. This will be a less expensive and welcome alternative to another trip to Disney.

[William Wray]

I agree about the guards, they are pesky and have no idea what art or shows is in the building they are guarding.

[Pre-Hipster-Los-Angelean]

Awww, sniff, poor LACMA...ohhwwwoo...

[Donald Frazell]

Never had an issue with those at LACMA. Though they do look bored to death, cant blame them in many rooms, especially the contempt ones. Had one take my son when he was little and looked for the birds in a show of Romare Beardens while my wife and I got to look at them in peace.

The guard at MoCA was hilarious, unintentionally. He thought my friend and I were a nice LA artsy couple, and proceeded to explain how ten thousand fake eyelashes had been sewn together. I dont think the wave of laughter he got was what he was expecting, probably used to those too skinny to think straight looking in approving nods.

Absurdity reigns, and a suspended believe system rules, as they dont know what reality is anyway. Art schools will do that. And dont you know? They are staring at the artistse who actually think such things are "cool" in their own states of shock. Many are smarter than the viewers. Though that may be damning with faint praise.

art collegia delenda est

[Damien Franco]

I like what Cate is saying.

It's less expensive than Disneyland and much more value to community, self worth, and art appreciation which all work in conjunction to better each other.

Education of the arts programs is what's needed. Go visit your museums, galleries, and theaters and quite spending money on Big Business commerce.

I'm just saying...

[William Wray]

I wish they had had the Hopper show, I think they missed a Million bucks on that one.

[Anon]

"Two months before the economic meltdown, the financial statement shows, an unnamed LACMA executive joined Govan as the second staff member who has been given extra financial incentives not to jump ship. Govan's deal, which The Times previously reported, calls for him to collect an extra $1 million if he stays to the end of his five-year contract in 2011.Now, another LACMA leader will collect $450,000 in 'executive deferred compensation' after fulfilling a three-year commitment that ends in mid-2011. Museum President Melody Kanschat is LACMA's second-ranking employee, but Pflaumer, saying it is a personnel matter, would not specify who got the deal."

Nice. In the meantime, the rest of the LACMA staff is enduring a salary freeze (in addition to the hiring freeze) for the second year in a row.