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Arts Council sets arts investment budget for 2017/18

20 Sep 2017

This content is tagged as Creative NZ .

NEWS

The Arts Council will invest $42.9 million in the arts in the 2017 financial year* following a significant increase in revenue from the New Zealand Lottery Grants Board (NZLGB).

Two-thirds of Creative New Zealand’s revenue comes from Lotto NZ profits via an allocation from the NZLGB with the remainder mostly from direct Government funding through the Ministry for Culture and Heritage ($15.69 million).

In the 2016 financial year Creative New Zealand received actual revenue of $40.5 million from NZLGB and invested $40.4 million in the arts. Total revenue for the year was $57.39 million.

The significant increase in Lotto NZ profits for the 2016 financial year is good news for the arts sector. The Arts Council is now in an environment where it can invest more in the arts and arts organisations while also rebuilding its financial reserves.

The Arts Council, at its August meeting, finalised Creative New Zealand’s budget for the 2017 financial year ($42.9 million) and agreed a draft budget of $43.8 million for the 2018 financial year.

The council has also amended its equity policy to maintain a minimum reserve of 15% of the revenue it is forecast to receive in the third year of its three-year budgeting cycle.

Increasing the minimum reserve from 10% to 15%, or from $4.8 million to $7.2 million, creates a financial buffer that exceeds the largest single-year drop in actual NZLGB revenue to Creative New Zealand in recent times.

This is to ensure that our clients – particularly those in our multi-year investment programmes – can plan with greater confidence because they have certainty over Creative New Zealand funding levels.

NZLGB provides revenue forecasts to Creative New Zealand during the year based on profit forecasts from Lotto NZ.

* Financial year is from 1 June in the year stated to 30 July the following year, eg 1 June 2017 to 30 July 2018.

Creative New Zealand revenue:

Year

MCH (million)

NZLGB (million)

Other (million)

Total (million)

2017/18

$15.69

$33.75**

$0.94^

$50.38^

2016/17

$15.69

$40.50

$1.20

$57.39

2015/16

$15.69

$30.93

$3.10

$49.72

2014/15

$15.69

$31.07

$1.86

$48.62

2013/14

$15.69

$37.38

$1.11

$54.18

2012/13

$15.69

$31.02

$1.69

$48.40

2011/12

$15.69

$27.52

$0.98

$44.19

**    Based on Lotto NZ forecast as at May 2017

^       Estimated