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Historic St. Mary's City seeks new revenue streams after federal grant rescission
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Summary
Historic St. Mary's City told lawmakers it absorbed federal grant rescissions using contingency funds, plans a new visitor center opening and revenue initiatives including a restaurant and new ticketing system to increase admissions ahead of the state's 400th anniversary in 2034.
Katherine Barber of the Department of Legislative Services presented the fiscal 2027 analysis for the Historic St. Mary's City Commission and reported a $7.1 million FY27 allowance, a $291,000 (4.3%) increase. DLS told the subcommittee that two federal grants were rescinded in April 2025: a National Endowment for the Humanities award used for three interactive exhibits (HSMC had spent about $76,000 of the $315,000 grant) and an Institute of Museum and Library Services grant of $229,000 for artifacts restoration. Barber said HSMC partially recovered the NEH award (receiving $171,000) and covered the balance with contingency funds; the IMLS grant was fully recovered.
Peter Carroccio, HSMC chief operating officer, said the museum covered the shortfall from contingency funds and described a suite of revenue-generating initiatives: reopening Farthing's Ordinary as Angelika's Kitchen, implementing Blackbaud Altru for tickets and donor management, adding new fee structures, launching public sales and membership drives, and raising ticket prices for the first time in nearly a decade. HSMC said it expects the new visitor center and restaurant to help recover admissions (admissions fell 35% from a FY22 high and were lower in FY25), and invited lawmakers to a July opening event for the new visitor center.
DLS also noted an April 2025 Office of Legislative Audits compliance finding about HSMC's relationship with an affiliated foundation and a lack of clear procedures for procurement, conflicts of interest and fund transfers; HSMC said it updated its memorandum of agreement and OLA accepted the corrective action as sufficient.
HSMC asked for help in attracting school field trips outside the peak months and emphasized that the upcoming 2034 400th-anniversary events create opportunities for heritage tourism and economic impact.
DLS recommended concurring with the Governor's allowance and asked HSMC to report on efforts to secure non-state revenue sources; no formal action was recorded at the hearing.
