Bleak financial picture paints uncertain future for Art Gallery of Alberta

EDMONTON – Three years after the opening of the Art Gallery of Alberta, the AGA is facing a grim financial situation.

“I think beyond 2013 is a question and it’s a challenge for us,” admitted Catherine Crowston, Executive Director Art Gallery of Alberta.

A city report warns if revenue targets are not met in 2014 and beyond, there could be reductions when it comes to hours of operation, staffing, and programming.

“I think they’re in a real challenge,” said John Mahon, Executive Director of the Edmonton Arts Council, which provides direct annual funding to the AGA. “It’s not unusual to have a great spurt of ambition, to build a beautiful building and then to see a bit of a drop.”

It’s projected about 100,000 people will walk through the AGA doors this year – that’s about 40,000 less compared to 2010, when the building opened.

Despite the higher attendance in its first year, the gallery ran a deficit then, as well as every year since. Last year, it cut spending by more than $800,000 dollars by reducing security, maintenance, as well as the costs of exhibitions and staffing. But it still wasn’t enough to get the gallery back in black.

After providing what was supposed to be a one-time support grant in 2012 of $1.1 million to reduce the gallery’s accumulated deficit to $23,000, a council committee approved another $500,000 grant on Monday to allow the gallery to continue operating normally this year.

Without the half a million dollars, Crowston revealed the AGA may have had to close one or two days a week, or cancel exhibitions, since the total exhibition budget for the year is about $800,000.

Councillor Tony Caterina said he would like to see the AGA work on putting a more long-term funding plan in place.

“Spending the money before you actually have it, sometimes you get bitten, and I think that’s what happened this time around,” he said. “They have to develop the programming that makes them sustainable.”

The AGA’s Executive Director is looking at options to generate more revenue and save money, so that programming and hours won’t have to be cut.

In addition to the $1.6 million the AGA receives from the city, it receives $1 million from the province.

“What we would ideally be looking at…is $1.6 million dollars from the province,” said Crowston. “I don’t know if we’re going to get there.”