Empire State Plaza Performing Arts Center, Inc.
Financial Management Practices
The Empire State Plaza Performing Arts Center, Inc. (Corporation) develops
and manages theatrical programs for the Performing Arts Center and related facilities at the
Empire State Plaza in Albany. The Corporation is funded by State appropriations as well as
revenue from ticket sales and rental fees. The amount appropriated for the Corporation in the
1995-96 fiscal year was half the amount appropriated in the prior year. We examined the
Corporation's financial performance since 1991 to assess how the Corporation's financial
viability will be affected by a lower level of State funding. We found that, between 1991 and
1995, the Corporation increased its operating revenues and decreased its total expenses.
However, during that period, operating revenues never exceeded 36 percent of total Corporation
expenses. According to theater industry data, the operating revenues of the average not-for-profit
theater cover 60 percent of its total annual expenses. We believe certain improvements in
marketing efforts could increase the Corporation's operating revenues. However, even with a
successful marketing effort, it will be difficult for the Corporation to sustain theater operations.
For a complete copy of 95-S-72 here.
For a copy of the 90-day response click here.