Art Gallery of NSW faces massive shortfall in governmental funding

The Art Gallery of NSW is reported to be facing a major shortfall in funding with the NSW Government apparently unwilling to provide additional money for its operations, despite the near doubling in size of its architectural footprint and exhibition space with the opening of the Sydney Modern wing at the end of last year.

As reported by the Sydney Morning Herald, more than one million visitors have poured through the doors since the opening of the 17,000 metre² Sydney Modern building, next door to the gallery’s historic sandstone facility, in December last year.

However, the 153-year-old gallery faces likely budget cuts should it fail to convince the current NSW Government of the need for millions of dollars in extra funding to cover increased staffing and general operational costs.

Funding is also sought to cover energy costs despite advice at the time of opening of the new wing that it was the first public art museum in Australia to achieve a 6-star Green Star design rating and that it would operate on 100% renewable energy,

Art Gallery of NSW Director Michael Brand told a NSW Parliamentary estimates hearing on Thursday that he was in discussions with NSW Arts Minister John Graham and senior officials over a much-needed funding boost.

Brand advised “we’re in discussion with the government to ensure we do have budget that allows us to keep the building open seven days a week and free of charge to the public.”

According to Brand, the NSW September budget - the first for the current government - allocated $40.6 million for the Gallery’s running costs in the 2023/24 financial year, compared with $43 million allocated the previous year when its new campus had been opened for half the year.

An “efficiency dividend” of about $3 million has also been applied to the Gallery by the NSW Government as per previous years, the estimates hearing was told - representing an effective cut to funding.

Budget papers show the gallery has agreed to raise $40 million from its two gift shops, restaurants, private functions and box office to help its bottom line over the current financial year - four times the revenue it raised in 2022/23.

In response to questions, Brand told the hearing that cuts to staff and general entry fees were “pure speculation.”

Images: Exterior and interior of the new Sydney Modern wing at the Art Gallery of NSW. Credit: AGNSW.