Drive Nets $2.48 Million for Symphony : Shortfall Remains but Financial Shape Best Ever, Merryman Says

More than 10,000 individuals and businesses donated $2.48 million in a crash fund-raising campaign to save the debt-ridden San Diego Symphony, orchestra officials announced Friday.

That figure is well above the $2 million the symphony needed last month to stave off voluntary bankruptcy.

Symphony President M.B. (Det) Merryman called the community support of the beleaguered orchestra “absolutely phenomenal.” He said that any references about a lack of support from the community were wrong.

“I am very proud of this community . . . and hope the new people who joined the family in the crisis will stay with the orchestra as it starts to prosper,” he said.

Merryman said he expects the troubled symphony to end the year with an operating deficit, but would not predict how much. The recent fund-raising campaign was predicated on an anticipated $200,000 shortfall in the symphony’s $8-million budget. However, recent symphony projections have ranged from a “best case” $116,000 debt to a “worst-case scenario” of $820,000.

The vast outpouring of donations put the orchestra in the best financial shape it has been in since it was founded 76 years ago, Merryman said. “There’s the potential to end the year with no carry-forward deficit,” he said. Merryman also said there is a chance for some growth in the orchestra’s endowment.

The money raised will be used to wipe out a 10-year debt of $1.8 million, with the remaining $681,000 held as “extraordinary income” and applied to any year-end operating deficit, symphony officials said. More than $100,000 remains outstanding in uncollected pledges, the officials said.

Ironically, the success of the emergency campaign could hinder fund-raising efforts for the orchestra’s current operations. So far the symphony has raised more than $1.74 million of $2.67 million it had budgeted in donations this year.

More significantly, as of March 1 the orchestra had raised only $1.79 million of a budgeted $5.39 million in earned income, composed primarily of ticket sales.

Besides its fiscal problems, the orchestra’s relations with the musicians have been strained by a request that they cut their contract by four weeks. That amounts to a 10% pay cut, which, because it would be retroactive, would reduce pay checks by about 20%.

Bass player Greg Berton, who chairs the orchestra committee representing the 89 musicians in labor relations with management, said the orchestra’s financial status is excellent. “It would seem they would have a difficult time proving to us that they have a need to cut our paychecks by 20%,” he said.

“(Management) has always complained that it didn’t have the money to do the development and the marketing. They have the time and the money. Now will be the test to see if they can do the job right.”

Berton also said that in light of the amount raised, management should withdraw its request to cut four weeks’ pay from the orchestra’s 45-week contract.

When asked to agree to the pay cut, the members of the orchestra committee gave management a list of 10 questions on March 20 about how the symphony is run. Earlier the committee had suggested that the symphony’s board members consider a management audit by the American Symphony Orchestra League.

Merryman said the orchestra has begun talks with the symphony league about a review of management practices. “Presumably (the musicians’ questions) are questions that exist whether or not the four weeks are played,” he said. “I would assume the questions, which are appropriate questions, will be answered and are being answered. There are no secrets.”

Merryman said the orchestra has taken up an in-kind offer of a management audit by Touche Ross & Co., the national accounting firm. “The process has already begun,” he said.

Merryman had a “No comment” when asked whether the fund-raising campaign had flushed out a naming donor for Symphony Hall. The hall, which was purchased and renovated for $5.25 million last year, had a naming price tag of $3 million. However, the orchestra offered to name the hall for a $1-million donation during the crisis.