BOSTON -- These are tough times for some of Boston's cultural institutions -- "The Nutcracker" is looking for a new home next year, the Franklin Park Zoo is in a financial and organization crisis, and Thursday, the New England Aquarium announced it will begin a series of layoffs.

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Natalie Jacobson Reports On Aquarium

NewsCenter 5's Natalie Jacobson reported that the 34-year-old institution, which lost its accreditation in March, is drowning in debt.

"The reality is that through the period of 1994 to 2001, the aquarium spent some $73 million in capital projects we hoped would be funded through major gifts. We raised $27 million against the $73 million we spent," said the Aquarium's Karen Schwartzman.

Restructuring will begin at the facility, including layoffs. Staff was notified by e-mail Wednesday that Friday 20 employees will be laid off. Over time, more employees will lose their jobs with up to 20 percent of staff being let go before it's over.

"These are not easy times. We have to do it to secure the future of this institution that is so important to Boston," said Schwartzman.

The weak economy and a 14 percent drop in attendance are contributing factors. But Aquarium officials acknowledge that most of the financial woes are self-inflicted.

They had to scrap but still pay for part of a $125 million east wing expansion, and now they are operating on a $1.4 million deficit, and they've had to defer a $35 million maintenance overhaul.

"In many cases we borrowed, we drew down our reserves, we spent money we didn't have, so now we don't have a cushion," said Schwartzman.

The popular sea otter and sea lion exhibits are threatened if the Aquarium can't raise the funds for a badly needed new home. Whale watches, education, rescue and rehabilitation programs for stranded sea mammals will also be scaled back.

Officials say they're determined to bring the Boston landmark back from the brink.

"Our donors have stepped up, and we hope they will step up in even bigger ways to help us through this," said Schwartzman.

What should the aquarium do to improve?