The Kennedy Center will begin furloughing 60% of its full-time administrative staff on April 6 in response to the impact of the Covid-19 coronavirus, the Center announced yesterday.
The cuts come in addition to previously announced cutbacks to full and part-time staff, as well as the furlough of the 94-member National Symphony Orchestra.
“[T]he Kennedy Center has been impacted by the coronavirus pandemic and has experienced overwhelming financial losses,” the announcement said “The shared sacrifices we make as an institution and the financial steps we take today, though painful, are vitally important to securing the future of the Kennedy Center.”
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The Center’s shutdown has had a significant effect on revenue, the announcement asserted. “Our business operations rely heavily on ticket revenues and donations, which combined, equal 80% of the Center’s annual operating budget.”
The CARES Act, signed into law last Sunday, allocates $25 million to the Kennedy Center to maintain operations during the coronavirus. This appropriation, however, is not enough to keep the staff on payroll, the Center said.
“[E]ven if we are able to open in mid-May, with the recent $25 million federal stimulus funding, the Kennedy Center would run out of cash as early as July,” according to the statement. The Kennedy Center had previously announced that it would be closed until at least May 10.
The Kennedy Center intends to use $12,750,000 of the CARES grant to continue existing salaries; $7.5 million for employee benefits (furloughed employees will continue to get benefits); $1.75 million for artist contracts and fees, $1 million for information technology (including $250,000 to improve telework capability) another million for rent and utilities, $250,000 to do a deep cleaning of the facility, and $750,000 for other administrative expenses. Kennedy Center President Deborah Rutter had previously announced that she was suspending her own $1.2 million salary during the coronavirus crisis.
The furlough, the Kennedy Center announced, will last until at least May 10.
