Meeting of the Board of Regents | September 2010
|
|
THE STATE EDUCATION DEPARTMENT / THE UNIVERSITY OF THE STATE OF NEW YORK / ALBANY, NY 12234 |
|
TO: |
Cultural Education Committee
|
|
FROM: |
Jeffrey Cannell |
|
SUBJECT: |
Report and Discussion on Office of Cultural Education Finances |
|
DATE: |
September 13, 2010
|
|
STRATEGIC GOAL: |
5 |
|
AUTHORIZATION(S): |
|
SUMMARY
Issue for Discussion
The discussion will review opportunities for expanding the revenue derived from the services and programs offered by the State Museum, Library and Archives.
Reason(s) for Consideration
To develop strategies to diversify and improve the financial support for the programs of the Office of Cultural Education.
Background Information
The operations budget of the Office of Cultural Education for fiscal year 2010/2011 totals $74,779,049. Significant portions of that budget include $4.1 million for the Local Government Records Program of the State Archives; $10.1 million for the Cultural Resources Survey Program of the State Museum (dry appropriation) and $6.3 million in Federal support for the programs of the State Library. However, the most significant component of the OCE budget plan is the $32.7 million Cultural Education Fund, which supports the majority of OCE’s programs.
OCE’s operations are constrained by the revenue levels in the Cultural Education Fund. As of August, 2010, this fund has a negative balance of approximately $6.5 million.
To address the constraints imposed by the declining revenues and to improve the overall fiscal environment that supports OCE’s programs, OCE charges fees for programs or makes available for sale publications or other services. Additional revenue sources could have a significant impact on OCE’s overall fiscal stability.
Identifying or expanding revenue sources will require substantial analysis of the regulatory, policy, and public service impact as well as a thorough cost-benefit analysis. Some revenue options that would require a use fee may result in significantly less public access to OCE programs and services, resulting in a net-loss of revenue.
Examples of existing revenue sources:
|
Revenue Source |
Typical annual revenue |
|
Museum Shop/Subway |
$80,000 |
|
Facility Rental and Use |
$25,000 |
|
Publication Sales |
$40,000 |
|
Specialized Records Searches |
$3,000 |
|
Exhibit Fees |
$20,000 |
|
Charter Fees* |
$20,000 |
|
Public Programs |
$5,000 |
|
Donations/Visitor Contributions |
$75,000 |
|
Duplication fees |
$20,000 |
*these fees are not collected by OCE
Possible sources of additional revenue:
|
Revenue source |
Comment |
|
An access fee, like the federal Universal Service Fund fee, on all broadband, internet, text, streaming video, etc. services |
Would generate substantial funding for library aid statewide |
|
Packaged databases statewide for any and all customers and take a small 2-3% fee for State Library administrative costs |
Would generate revenue for library operations, increase availability of databases and decrease costs statewide |
|
Advanced genealogy services |
Would provide a value-added service to customers of the library and archives, but needs rigorous cost-benefit analysis. |
|
Museum Admission |
Our visitorship is driven by repeat visit, free admission. We estimate that attendance decrease by > 50% if admission is charged.
|
Proposed Handling
Office of Cultural Education staff will present approaches to both monetizing existing services and expanding the revenue derived from services for which there already is a change.