The Financial Collapse Of The Milwaukee Public Museum

Abstract

The 123-year old Milwaukee Public Museum, which had long been considered to be one of the top natural history museums in the country, found itself in dire financial straights in 2005. The museum had run large deficits for the past three years and had almost entirely eaten through its cash and long-term endowment. In June 2005 it was forced to lay off many of its experienced collections and research staff and had begun the process of preparing to sell off assets that were not a part of the “exhibit experience.”  Milwaukee County’s Chief Executive went so far as to suggest that the Museum’s celebrated 700-acre Tirimbina rain forest preserve in Costa Rica should be sold. How did this once renowned organization become a shell of its former self? What financial management and governance mistakes were made, if any, and how could this disaster have been prevented?