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News

BBHC cuts 10 jobs in budget crisis

By Richard Reeder


This document was published online on Wednesday, August 13, 2008

Declining revenues and visitation have forced the Buffalo Bill Historical Center into unprecedented layoffs.

On Wednesday, BBHC CEO/Executive Director Bruce Eldredge announced the elimination of seven full-time and three part-time positions.

“Eliminating jobs is a difficult, but necessary, step for us to take,” Eldredge said. “This is probably the largest single job elimination in the museum's history.”

He said additional operating cuts are possible.

“We've identified about $50,000 more in savings we may need to do,” he said. “That will include travel and program expenses.

“Our gate is 40 percent of our revenue and we'll be watching the fall numbers closely,” he added. “If they stay low, we'll be looking at making some deeper cuts.”

Eldredge said visitation and revenue figures have not met what they forecast for this year.

“We had hoped this year would meet or exceed last year in terms of visitation, and last year was one of the better years the museum has had,” Eldredge said. “But the high gasoline prices have kept people away, especially RV traffic, which is one of our largest visiting populations.

“There's been a drop off in general visitation, which has led to less gate, gift shop and cafe revenue,” he added. “We're one of the first discretionary expenses a visitor will drop to pay for that extra tank of gas.”

Eldredge said staffing cutbacks were needed to bring the overall budget closer to being balanced.

“Right now our personnel costs are 67 percent of the budget,” he said. “Museums of comparable size around the country operate at about 50 percent for personnel.

“In a tight budget year we had to find ways to reduce those costs and still provide above average guest services,” he added. “We need to be more in line with museums of our size.”

The job cuts are expected to save the BBHC about $127,000 this year.

“That number is arrived at after severance pay and other benefits for those being eliminated,” Eldredge said. “That savings will be significantly greater moving into 2009.”

He said some of the jobs would have been eliminated anyway as he continues to restructure BBHC operations.

“Some of the jobs might have been eliminated as we change how we operate,” he added. “But the tight budget year forced us to move forward on them before we'd planned to.”

The job cuts are from various departments and include some retirements.

“We are fortunate that a couple of our upper management people are retiring, so they are part of this process,” he said. “Those retirements will be coming between now and December and we'll announce them as they happen.

“But all departments of the museum were looked at and changes are being made,” he added. “This isn't a reflection of anyone's performance, but a reflection of how we need to operate.”

The jobs eliminated were selected as Eldredge met with department heads and discussed how they could work more efficiently.

“The department heads drew up plans how they could continue to provide high-quality guest services, but more efficiently,” he said. “They all drew up plans how they could do that and brought them back to me.

“I decided which were the right moves and then presented them to the trustees,” he added. “The process was a total examination of how we do business.”

Eldredge said earlier this year $125,000 had been cut from other operating expenses.

“As we saw the numbers not going as high as we hoped, we eliminated some travel and program expenses,” he said. “But in the end that wasn't enough and we knew we had to move forward with cutting personnel expenses.”

Eldredge was unsure if tightening past budgets could have lessened the current cutbacks.

“I can't really comment on things that happened before I got here (in January) and had no control over,” he said. “In hindsight you can say maybe not enough attention was paid to personnel expenses and the monitoring of programs.”

The BBHC will proceed with filling “critical positions” despite the job cuts.

“We'll be hiring a chief development officer to handle fundraising,” Eldredge said. “Our contributions are down, so we need someone with experience and knowledge to help build that up again.”

The people being eliminated have been offered severance pay, continued health insurance and work space to search for a new job, all based on length of service.

“These are good people,” Eldredge said. “They would be welcome to apply for another job opening they are qualified for and we'd be glad to have them back.”

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Reader Comments

Lone Rider wrote on Aug 16, 2008 10:21 PM:

" The BBHC's financial woes should not come as a surprise. The new executive director inherited this already existing problem when he came onboard. many of the staffers at the BBHC had seen this coming for the past several years, in fact it is the reason that a number of them got out while the getting was good. Declining visitor attendance was countered by jacking up the admission costs which only resulted in even lower attendance. Arrogance on part of the prior executive director and upper administration coupled with inept board leadership and board members who kept their heads buried in the sand have left the new executive director and the hardworking staffers at the BBHC in this mess.

How much money could be saved by having all the board meeting at the museum here in Cody as opposed to spending the money to fly board members and their spouses all across the country or the globe for 2 day board meetings where they stayed and played for a week. And putting those board members up and feeding them here in Cody would have helped the local economy while saving the BBHC tons of money. "

Dewey wrote on Aug 16, 2008 9:27 AM:

" Brad, old friend--- the 10 "official" jobs cut at BBHC save "only " $127,000 between now and the end of the year, 3 months time. The actual target sum given to the Director to cut was $ 500,000 in ANNUAL payroll. The story reporting did not make this too clear. Above and beyond the "Ten "jobs cut there are some other consolidations ( the building superintendent is suddenly also Chief of Security, for instance) and a few upstairs management people are leaving by attrition a little sooner than they might have, so the BBHC is losing more than just the 10 skeleton jobs.

The real story here is that an "Enterprising" reporter needs to show us the 2nd and 3rd Quarter Sales Tax reports; Yellowstone Gate Attendance, BBHC attendance ; Cody airport passenger counts for May-end of September; Cody Trolley ridership ; river float raft rides , and a few other indicators--- all on the same page at the same time. Then you will see that Cody Wyoming is in denial about its precious tourism economy. Except for the Nite Rodeo, which seems to be doing fine ??? "

Fred wrote on Aug 15, 2008 6:24 AM:

" Making critical financial choices in a time of lower income and higher expense usually involves painful decisions – whether by families or businesses – and deciding to cut jobs is never easy. Directing blame, anger and criticism at the current museum leadership team is not only understandable, but also very easy – and they probably expect it. However, the current financial situation at the BBHC was created primarily by the poor management of a museum director and under-performance of a development director who are both long gone. So people who are suggesting that some of the present (and higher-paid) leaders should be replaced are mistaken. The BBHC needs responsible, practical and courageous leaders now more than any other time in the history of their operation.

In these difficult economic times, there are many other local businesses laying people off as well – but without the publicity. "

Former Fan of the BBHC wrote on Aug 14, 2008 4:15 PM:

" Cutting Jobs is the answer for this small community that thrives off of the tourists? How about cut the expenses that the top Dogs are incurring by all of their rendevous & meetings to go over that budget. Or the high class entertaing these top dogs incur as they are trying to get more donations. Or better yet perhaps some of the extravagant administrative payrolls could be trimmed a little and they may have to live on a smaller budget like the rest of us normal folk. "

Brad Butler wrote on Aug 14, 2008 12:46 PM:

" I'm amazed that eliminating 10 jobs would only translate to a savings of $127,000. When you figure that benefits for employees cost most employers 25 to 30 percent, the BBHC must be paying these folks about $7 per hour. Unfortunately, when faced with budget problems, most business people turn to slashing jobs to make ends meet. And it is usually the little people at the bottom of the ladder that end up losing their jobs; the ones who can least afford it. I'm sure that eliminating one or two white collar positions near the top would save them more... "

Dewey wrote on Aug 14, 2008 9:39 AM:

" This is a symptom. The malady that needs treated is that Cody Wyoming has no Plan B for life without Buffalo Bill , Yellowstone Park , and Rodeo. Take those things away and add in geographic isolation , high cost of living and housing, and old fashioned ignorance of the real world, and the town you are left with looks pretty anemic. I'm sorry , but Forward Cody , retirees , and conservative ( shortminded) business people will not save you. It's well past the time to discard the past. But who has the courage to do so or even say so ?
*
FYI---Ten is the number the BBHC officially laid off; the actual number of employees leaving in the near future is somewhat higher. "

Jeffrey Brock wrote on Aug 13, 2008 3:55 PM:

" It is sad that the center has to layoff these valuable workers. I understand the economy is tough and the center has had to make this difficult decision. I hope the workers can find work elsewhere.

The center is invaluable to your community. I live in Georgia and visit Cody often. I love your area and the people in your beautiful community.

Best wishes to everyone at the BBHC "

 

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