DANZUpdate from Creative New Zealand on NZ Lotteries funding
Creative New Zealand arts investment in 2016/17
The Arts Council expects to invest about $40.7 million in the arts in the 2016/17 financial year and will introduce new measures to provide the arts sector with more certainty over funding levels if forecast revenue changes significantly throughout a year.
Creative New Zealand’s latest forecast revenue from the New Zealand Lottery Grants Board (NZLGB) for the 2016/17 financial year is $28.67 million. NZLGB forecasts are based on profit forecasts from Lotto NZ. Almost all of Creative New Zealand’s funding is from a combination of Lotto NZ profits, via a grant from the NZLGB, and Crown funding via Ministry for Culture and Heritage (MCH). Funding from the Crown via MCH will continue at $15.69 million.
As we communicated in July a late increase in revenue from the NZLGB for 2015/16 brought a substantial and welcome improvement in Creative New Zealand’s financial position. We can now maintain our investment in arts funding, capability building, international presentation and advocacy in 2016/17.
Measures to provide more funding certainty
The $3.7 million change in NZLGB forecast revenue during the 2015/16 financial year has highlighted the need to take what further steps we can to provide the sector with more certainty over funding levels. At its meeting on 27 July the Arts Council decided to establish a flexible fund of $600,000 (approximately 2.5% of projected NZLGB revenue). This will only be invested in the last quarter of this financial year once Creative New Zealand has confidence that actual revenue is unlikely to reduce substantially from initial forecasts. The fund, coupled with our minimum equity policy, will provide Creative New Zealand with the flexibility to buffer an up to $2.2 million decrease in NZLGB’s forecast revenue for 2016/17 ($28.67 million).
Next steps
The Arts Council will finalise its draft 2016/17 budget at its meeting in September pending updated NZLGB forecasts. A revised Statement of Performance Expectations (annual plan) with more detail on the budget will be published in September.
Creative New Zealand revenue:
|
Year |
MCH (million) |
NZLGB (million) |
Other (million) |
Total (million) |
|
2016/17 |
$15.69 |
$28.67* |
$1.79^ |
$46.15^ |
|
2015/16 |
$15.69 |
$30.03* |
$1.44^ |
$47.16^ |
|
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 12 July 2016
^ Estimated
For more information contact Creative New Zealand