Lawrence Arts Center laying off staff, making cuts amid budget crisis

The Lawrence Arts Center has begun to lay off employees as the board has asked staff to cut about $500,000 worth of expenses.

Employees have spent the last few months operating with razor-thin budgets and worrying about their jobs, according to current and former staff members.

Staff members were aware of at least six people who were laid off last week, and as positions are eliminated, employees have been asked to take on extra responsibilities without additional pay. Four staff members who have worked for the arts center at different points during the last few years, most within the last few months, spoke for this article and asked to remain anonymous because of the precarious situation. 

About a dozen people who were listed as arts center staff members on Dec. 31 were no longer listed on the website Friday, and 10 others were instead listed as teaching artists, which are typically contract positions rather than full-time. 

“It feels like staff morale is down and there’s a lot of weight on people’s shoulders,” one staff member said. “But I feel like the staff remains committed to the students and the community, like, wholeheartedly.”

According to tax filings, the Lawrence Arts Center’s revenue was $2.94 million for the fiscal year ending in July 2023, with expenses totaling $3.86 million, for a net negative income of almost $917,000. According to board president Meredith Lang, the arts center’s expenses for the fiscal year ending in July 2024 were about $3.75 million and for this fiscal year are about $3.2 million.

‘Am I gonna get laid off?’

The arts center usually begins its yearly budget process in the spring and finishes in the summer to prepare for the fiscal year to start in August. But this year, the budget took months longer to be finalized after the board rejected initial budget proposals, and staff said management has scrambled to find hundreds of thousands of dollars in cuts. 

The budget was eventually approved by the board this fall, according to Lawrence Arts Center board president Meredith Lang. 

Lang said the board has a responsibility to look after the arts center’s finances. The board decided last year to stop borrowing from reserves to cover month-to-month costs, she said, instead opting to look for places to reduce expenses. 

The arts center’s financial liabilities have ballooned in the past few years, and the growth of expenses has continually outpaced revenue, according to tax documents filed with the IRS. 

During those years, the arts center has made a handful of big moves, including renting and renovating the new 10th and Mass Studios and purchasing the former Salvation Army space next to the center’s main space at 940 New Hampshire St. 

“They were spending like drunken sailors,” one former staff member said. 

Staff were informed about the dire financial situation during meetings this winter, but they said they weren’t given details, leaving them in a holding pattern for months as the budget deficit continued to grow. 

Some staff members were frustrated at a lack of communication about what was happening. They said questions were not answered, and communication about what was being done to remediate the budget was not passed down. 

“We already all work at max capacity, doing multiple jobs,” a staff member said. “We’ve just had such a tough time and people have been working overtime and doing multiple jobs and doing absolutely everything they can to bring money in. … I think that was part of it, you know, it was probably a question I was thinking: ‘Am I gonna get laid off?’”

A December email blast to donors from chief development officer Ryann Galloway Tacha described an “unprecedented financial challenge.” The email said the arts center was at risk and in need of donations to stay afloat. 

In January, the cuts deepened and employees were laid off. 

Staff said they were told to halt spending unless necessary. Funds for salaries and other expenses were supplemented with money from a line of credit, a form of borrowing money from a bank. 

“I hope that the folks who have been the staff members and the contract artists and the people who have been really keeping the show going aren’t left affected,” a staff member said. “And the people who are in charge of the decision-making and who are fiscally responsible for us aren’t getting away without any kind of criticism.”

Margaret Weisbrod Morris stepped down as CEO of the Lawrence Arts Center in July after more than six years in the role. In September, the board named Thomas Huang, a KU associate professor, as the interim executive director. 

The arts center did not respond to multiple requests for an interview with Huang, nor did he answer an email seeking to speak with him. Morris declined an interview request, stating that she didn’t “have any information or insights about their circumstances” since it had been about six months since her departure. 

‘It could do so much more’

Staff members expressed frustration at what they deemed a lack of urgency from the board to raise more funds even as budget problems worsened. 

They said they were shocked and confused about how the budget had gotten to this position, and that many staff members have worked around the clock to find new revenue and avoid deep cuts. 

“The board seems very disengaged and not present with our organization,” a staff member said. “If the board and other folks in a high place of power continue to avoid responsibility, I just think that things won’t get any better.”

Lang said she thinks the board has been thoughtful in its consideration of the needs of the arts center and has tried to work closely with leadership.

“Obviously, this is a place that we can always be evaluating the ways in which the board can be present for staff but also while providing guidance and leadership,” she said.

Cindy Maude, a former board member and longtime supporter of the arts center, said the last couple of years had been light on fundraising efforts.

According to tax filings, around 40% of the arts center’s revenue from mid-2022 to mid-2023 came from contributions and 57% came from programming. 

“Fundraising is a part of the budget and it’s been not as robust,” she said. “So that is going to affect the ability of the arts center to operate, so I think the board is working hard to look at everything.”

Arts organizations across the country were impacted by the COVID-19 pandemic, which shut down classes and live shows. However, the pandemic also brought about new sources of funding that helped these organizations continue. 

As those funds have run out, organizations like the Lawrence Arts Center have had to work to adjust budgets to find stability. Charitable giving has decreased nationwide when adjusted for inflation. 

“The arts center is so important to this community and gives something to Lawrence that not many other communities our size have,” Maude said. 

Staff urged the community to support the arts center by donating, signing up for programs or spreading the word about new opportunities. 

“I just really, really hope that something changes for the better,” one staff member said. “This place is doing good things and it could do so much more if they can get on top of their finances.”

Lang said the arts center would need to continue working to engage people with art and think critically about expenses as it worked to find financial stability. She urged community members to attend upcoming fundraisers and shows to support the center.

“I think that art challenges us to see things from different perspectives,” she said. “And that is a critical thing for the people in Lawrence.”

Cuyler Dunn (he/him), a contributor to The Lawrence Times since April 2022, is a student at the University of Kansas School of Journalism. He is a graduate of Lawrence High School where he was the editor-in-chief of the school’s newspaper, The Budget, and was named the 2022 Kansas High School Journalist of the Year. Read his complete bio here. Read more of his work for the Times here.

• Twitter
• Instagram

Latest Lawrence news:

MORE …