The Arts Council of Creative New Zealand receives approximately two-thirds of its revenue from Lotto NZ profits via a grant from the New Zealand Lottery Grants Board. The remainder of revenue is mostly from the Crown through the Ministry for Culture and Heritage ($15.69 million).
“The arts sector has benefited from steady increases in lottery profits peaking at $37.38 million in 2013/14, which was a record profit year for Lotto NZ. In 2014/15 revenue fell to $31 million and this financial year our latest forecast revenue from the NZLGB is $26.31 million, which is $3.69 million less than forecast at the start of the year,” said Creative New Zealand Chief Executive Stephen Wainwright.
“Creative New Zealand now stands to receive $11 million less this financial year than it did two years ago in 2013/14.
“Since 2014/15 Creative New Zealand has been using financial reserves to cushion the effect on the arts sector and has reduced spending in the 2015/16 financial year by not renewing pilot projects. Unfortunately we are now unable to sustain our current level of support for artists and the arts in the coming financial year,” said Mr Wainwright.
Creative New Zealand expects to invest $44 million in the arts and arts organisations in 2015/16 financial year. Based on current projections this will reduce to $38 million in the 2016/17 financial year. The Arts Council will look at a range of budget scenarios for 2016/17 with a final decision in July 2016.
“If NZLGB forecasts reduce further, the Arts Council will need to further reduce its expenditure,” said Mr Wainwright. “In the meantime we are advising individuals and organisations to plan ahead by developing budget scenarios that assume up to 10% less financial support from Creative New Zealand.”
Creative New Zealand’s operating costs have stayed the same in dollar terms since 2008 as investment in the arts has increased.
“In the short term we will make cost savings. In the medium term we are changing how we deliver our services so we do this at lower cost. We will also continue to advocate for the value of the arts and the importance of our ongoing investment in the arts sector,” Mr Wainwright said.
“Three ways New Zealanders can help mitigate the negative effect of the decline in revenue is by going to the arts, giving to the arts, or buying a Lotto ticket.”
http://www.creativenz.govt.nz/news/decline-in-lotto-revenue-to-affect-the-arts