The Virginia Living Museum is asking for help from Newport News to fill funding gaps in its budget until it can establish a strong endowment.
The VLM has had several financial hurdles over the over the past several years, starting in 2000 when it lost its state funding. More recently, the VLM has had to deal with a bank calling in a construction note in 2009 that meant raising $9 million in a matter of months, followed by two serious floods this year. The VLM has also seen a reduction in local government support since the economic downturn. The museum’s reserve fund likely will not last another year, so the Board reached out in September to the City of Newport News to get some help for the 2013-2014 budget.
VLM Executive Director Page Hayhurst sent an email to museum members Wednesday in reaction to a Daily Press story that said the museum was in danger of closing. Hayhurst reassured members that the VLM is not in imminent danger of closing, but confirmed that “last month we asked the city of Newport News to explore new funding options that will help us buy time to build our endowment and restore financial stability after a series of unanticipated economic reversals.”
“The city has been a partner since our inception in 1966 and we have always had strong support from the community,” she said. “We are confident that a solution will be found.”
The museum’s budget is just over $4 million, with about $500,000 of that currently coming from Newport News. A reserve fund of a few million dollars has dwindled to about $400,000, which the museum will likely use within the year.
The museum spent $100,000 to pay the insurance deductibles to cover damage from two floods – one in May and a more severe flood in August. The August flood damaged electrical systems, electronics, carpet and walls at both VLM buildings; the downstairs portion of the main building is still closed for repairs.
The VLM has made budget cuts, eliminated all positions not critical to earned income, increased income in new areas (such as event rentals) and applied for grants, Hayhurst said in her email, but she is confident that the museum and the city can come up with a good solution to the funding crunch that will keep service or staff reductions at bay.
“There are a million possible solutions [to VLM budget needs], and we are being proactive right now,” Hayhurst said. Some options may include sharing some services with the city, or getting city assistance with utilities, or possibly engaging in an exchange of services, she said.
City Manager Neil Morgan appointed two city officials to discuss options with the museum, and said the city values its relationship with VLM.
“Science museums are educational institutions and around the country they all rely on public funding or endowment to operate,” according to Hayhurst. “As a private institution, the ultimate solution to our operational deficit is an endowment that provides ongoing income.”
Hayhurst said a healthy endowment would be roughly $10 million, which will take years to achieve, she expects.
“Our long-term prospects are great,” she said. “We’ve been around for 46 years, and we are beloved in the community.”
About one-third of the museum’s approximately 6,000 members are from the Historic Triangle, not including the part of York County closest to Newport News.
Some upcoming events at the VLM include Night of the Living Museum, a family-friendly Halloween event that takes place this Saturday evening, and the Walk on the Wild Side for Flood Relief fundraiser going on through the month of October. Participants can register at the museum to walk in October and collect pledges to support individual walking goals.
Visit the VLM website to find out how to contribute or volunteer.
