Symphony Plays Into Debt, but It’s Not Such a Bad Tune

The Pacific Symphony, largest and most prominent of Orange County’s musical organizations, finished its season at the Performing Arts Center with a deficit larger than those of the other five groups combined: $250,127.

But, an orchestra spokesman maintains, the Pacific Symphony is not in bad shape. Financial obligations are being met through income from subscription sales for the 1988-89 season, said W. Andrew Powell, director of marketing.

And, Powell added, the deficit--though it “doesn’t make us happy”--is “very small, compared with other performing arts organizations” nationally.

The orchestra started the year with a surplus of $113,000 but proceeded to lose more than $350,000 and wound up in the hole. Expenses in the 1987-88 budget increased 45% from those in 1986-87, according to an application filed with the California Arts Council. Certain items stand out.

Marketing costs leaped 179% from $144,138 to $401,443; administrative personnel jumped 95% from $159,281 to $310,703, and conductor’s salary grew 42%, from $66,220 to $94,094.

Income grew also, by 40%.

Powell said it would take continued losses over several seasons to imperil the orchestra.

“About half the orchestras in (their) budget category have deficits,” said Don Fraher, government affairs director at the American Symphony Orchestra League in New York. “The extremes range from surplus of $750,000 to a $900,000 deficit. There are 43 orchestras in this category. Orchestras, just like any other business, have good years and bad years.

Danny Newman of Chicago, widely regarded as the nation’s expert in the field of audience development, said that although he was unfamiliar with the Pacific Symphony, he would consider a one-year deficit “aberrational.

“If there were a pattern of on-going yearly deficits and mounting, accumulating deficit over five years, with each year getting worse, that would be cause to stop and worry,” he said. “But not in any one year. They may need a year or two to accommodate it. Their ticket sales are good? Well, when you have the audience, you have everything.”

The orchestra’s budget for the 1988-89 season projects a surplus of more than $100,000, which would be used to reduce the deficit by a like amount at the end of the present fiscal year. However, Pacific Symphony’s Powell said the orchestra has not projected a date when the deficit would be retired.