After Receiving Millions From Relief Bill, Kennedy Center Announces It Will Furlough Administrative Staff

Last week Congress approved a $2 trillion coronavirus relief bill, which also provided millions for the performing arts.

After receiving $25 million in funding from the bill, The Kennedy Center announced that it would furlough 60% of its administrative staff.

“Without question, the Kennedy Center has been impacted by the coronavirus pandemic and has experienced overwhelming financial losses. The shared sacrifices we make as an institution and the financial steps we take today, though painful, are vitally important to securing the future of the Kennedy Center,” the statement read.

It continued, “By safeguarding our financial position now, we also improve our capacity to open our doors and stages for audiences as soon as it is safe to do so.”

The Kennedy Center said 80% of its revenue comes from ticket sales for events, and noted that it canceled events until May 10.

“With no end in sight to the current crisis, we feel it is prudent to assume that our business may not resume for several months.”

Additionally, the center said that even with the funding from the coronavirus relief bill, it would “run out of cash as early as July” — even if it re-opened in May.

In light of its steep drop off in revenue, the center said it would furlough 60% of its full-time administrative staff. It also noted that 725 employees have been impacted and are not working due to the impact of the virus.

The center said that it would use roughly $20 million of the funds received from the relief bill for employee compensation and benefits over the next six months. The rest will be used for cleaning, contract, and administrative expenses.

“We look forward to re-engaging artists and re-employing staff, just as soon as health and public officials indicate it is safe to do so,” the center added.

Funding for The Kennedy Center became a sticking point in the coronavirus relief bill as some lawmakers argued that it had nothing to do with the virus and should not be in the bill.