While the Folk Art Museum is the only cultural institution to default on the revenue bonds issued for it through its trust, which was created to finance capital projects, New York’s commissioner of cultural affairs, Kate Levin said the museum’s financial situation is not dire. Current cost cutting strategies include shedding staff, beefing up circulation of the museum’s magazine, and publishing more of the exhibition catalogs online. The museum has also opted to stop leasing auxiliary space at nearby East 52nd Street and is looking for additional sources of revenue. One of those sources may be the sale of air rights to the developer of the planned Nouvel tower on West 53rd. Street.
The museum is optimistic that these and other strategies will allow it to continue on as a 'leaner, smarter, more effective organisation', said Maria Ann Cornelia, the museum’s director.