In yet another sign of how the recession continues to weaken local arts organizations, Baltimore Symphony Orchestra musicians agreed to a 12.5 percent pay cut Thursday, as management faced its first budget deficit in two years and an endowment fund now off-limits because its value has slipped too low.
"I think the musicians' eyes have been opened," said Paul Meecham, BSO's president and CEO. "Everyone has recognized that this is not a question of how the symphony has been run. It has been caused by the economy. They can see that the board and staff are doing everything we could in a very difficult situation."
The orchestra had counted on using $2.7 million from its endowment to help cover expenses, but its investment portfolio was battered when the stock market began dropping last year, and it's down 21 percent since August 2008.
The BSO's immediate future is not in jeopardy. And there are encouraging signs, such as a 26 percent increase in the number of individual donors, although that's tempered by a 17 percent decrease in the average gift amount. A balanced budget is projected for the 2009-2010 season, thanks in part to concessions the players have made.
While the BSO has enjoyed enthusiastic responses to performances with music director Marin Alsop, the financial situation has been less upbeat. There was a 21 percent drop in single-ticket sales during the 2008-2009 season, along with declines in corporate, foundation and government funding.
"The world isn't changing any time soon," Meecham said. "We'll be having a talk with musicians in the fall about the following season and beyond, and have a healthy debate about all things."
Such debates are going on in other orchestras. The economic crisis has many people questioning the wisdom of the typical orchestra business model, especially one that calls for year-round employment for musicians. The BSO is one of 17 orchestras in the country with a 52-week contract. There is currently no talk about changing that.
"We worked together and worked hard to find solutions that didn't go there," said Laurie Sokoloff, chair of the BSO players committee. "Marin Alsop and Paul Meecham ... didn't come here to lead anything other than a 52-week orchestra."
This has been a difficult year for all the arts. Locally, the economic downturn contributed to the demise and liquidation of the Baltimore Opera Company; layoffs, furloughs and a canceled exhibit at the Walters Art Museum; canceled or postponed concerts by two chamber orchestras; and layoffs at the Maryland Historical Society.
