Human Rights Museum dealing with $5.2M operating shortfall

The Canadian Museum for Human Rights, not set to open until 2012, is already running a deficit.

The latest corporate report for the museum, currently under construction in Winnipeg, indicates a $5.2-million shortfall in its operating budget.

Officials told CBC News the original budget was flawed because the structure is the first national museum to be built in a generation and the first ever to be built outside of Ottawa so there is a steep learning curve in terms of anticipated expenses.

The corporate report suggests the initial figures did not properly adjust for inflation and taxes.

The museum's administrators are now negotiating with the federal government to borrow against a surplus it foresees in the future.

"Estimates for the third year were a little more than we project that we'll need for operations so we're looking to see if we can adjust and basically borrow from that year," said spokesperson Angela Cassie.

The museum, being built at Winnipeg's historic Forks, will cost $265 million to build. The federal government has committed $21.7 million annually for its operating costs, on top of $100 million previously announced as a capital investment.

The Manitoba government is putting $40 million toward the project and the City of Winnipeg has approved a $20-million contribution in cash plus land, infrastructure and forgiveness of property taxes.