The Arkansas Arts Center, which has lost an estimated $150,000 in revenue by canceling its spring Museum School session because of the COVID-19 pandemic and which faces a loss in funding from the city of Little Rock of $233,333 thanks to the economic fallout from the crisis, announced today it is furloughing 36 percent of its full-time staff. That’s 18 15 people, if the employees on the staff page are full time. Angel Galloway at the Arts Center informs me.
Furloughed employees will continue to receive health benefits and contributions to their retirement funds during the leave.
AAC Board President Merritt Dyke is quoted in the news release about the furloughs: “This is a particularly critical time in the history of the AAC as we balance our annual programming budget with the building construction project and capital campaign. Millions of dollars, both public and private, and thousands of hours have already been invested into the construction of a new AAC.”
The news release also noted that, according to Americans for the Arts, the nonprofit arts sector had already lost $3.2 billion.
Foundation president Warren Stephens also said the foundation’s support of the Arts Center would have to be reexamined because of the sharp market decline.
The AAC also receives $2.4 million in yearly funding from an endowment, which is impacted by stock market fluctuations. “During these uncertain times, it’s of vital importance that we maintain reliable revenue for the Arts Center provided annually through our endowment,” AAC Foundation Board President Warren Stephens said. “The Foundation Board will assess the level of support we can sustain while preserving the endowment as we navigate this unprecedented crisis.” The center’s operating budget is separate from the budget for the center’s renovation project in MacArthur Park. At present, the building project remains on schedule, Stephens said.