Money Is Still Top Concern

In 1992, we traded in our old President on a newer model and woke up the next morning feeling better about the economy. We spent more money on Christmas gifts and made the financial forecasters happy, proving it isn’t only the thought that counts.

Consumer confidence, that mysterious buzzword, is up, amid other hopeful signs. It seems we’re ready to end the nation’s economic slump, even if we have to do it by sheer force of will. But what if the United States had a recovery and forgot to invite California?

That’s the delicate question facing arts administrators in Orange County as they look to the year ahead. Operating largely without the luxuries of endowments or substantial government help, local arts groups must rely on the kindness of cash-strapped donors and the whims of sometimes fickle ticket buyers.

In the last few years, most local arts groups and institutions have had to put plans for construction or expansion on the shelf and concentrate on simply staying afloat, with varying degrees of success. That cautiousness--which extends to programming--is likely to hold sway in 1993 as economic growth in California, held back by an ailing aerospace industry, is widely expected to lag behind the rest of the nation.

Still, in the spirit of the New Year, some local arts leaders are sounding a few hopeful notes, especially about President-elect Bill Clinton, who is perceived as more arts-friendly than his outgoing predecessor. David Emmes, South Coast Repertory’s producing artistic director, predicts that a “dark night of the arts” is about to end.

“I think there will be a new dawning, in the sense that with the Clinton Administration we’ll have a commitment to the arts, not necessarily in terms of dollars, but in recognizing their value to the nation’s spirit,” Emmes said. “There will be a President who will speak forcefully in support of the arts, unlike . . . the Bush Administration.”

Michael Botwinick, director of the Newport Harbor Art Museum, said he believes the nation’s art community under Clinton will be less “embattled.” Such issues as censorship and federal art funding--the focus of bitter, divisive debates under the Bush Administration--won’t necessarily disappear, he said, but there will be “less yelling and screaming and getting in people’s faces.

“The nature of the national debate has changed, simply because of the election. I think the way in which we’ll fight over the issues will be more generous than in past. Generous not in terms of money, but in terms of human interaction.”

But money remains a primary issue for all arts groups, of course. Newport Harbor just completed one of its rockiest years in memory, laying off nine employees in an effort to deal with an accumulated deficit that by September had ballooned to $768,702.

Nevertheless, Botwinick sounded a note of “very cautious optimism” for 1993.

“Our traditional sources of funding are coming in on schedule,” he said, “and we are beginning to see a little bit of (fund-raising) success in areas where we haven’t in a couple of years, namely from corporations and individuals. We’re not about to declare victory, but for this first quarter, we’re not hitting the lifeboats.”

Laguna Art Museum director Charles Desmarais said he is “extremely concerned” about the future fiscal health of museums nationwide because of continuing cutbacks in public funding for the arts. Museums have it harder than performing arts organizations because their ratio of earned to contributed support--about 30% to 70%--is much lower, he said.

However, he is optimistic that people will part with their dollars for the Laguna Art Museum this year, because 1993 marks the institution’s 75th anniversary and an ambitious round of much ballyhooed exhibitions is planned. Much of the underwriting for those shows already has been nailed down.

“We’re hopeful the anniversary will prompt people to be even more supportive than generally,” Desmarais said. “I truly think that 75 years of history has a lot of respect in a community that doesn’t have a lot of cultural history.”

Meanwhile, at the newly remodeled Bowers Museum, “I would anticipate that ’93 is going to be an interesting transition year for us,” said director Peter Keller; “ ’91 and ’92 were the years to get the museum open. Now, ’93 is the year to get the kinks out and put it on a firm footing.”

With the capital campaign for the museum renovation and expansion almost complete, the Bowers will turn in 1993 to launching an endowment campaign, in preparation for 1997 when the city will begin scaling back its support. It probably will be the only major endowment campaign launched this year; most groups are simply struggling to meet operating expenses.

“Fund raising in this climate has now been difficult for three years,” said Thomas R. Kendrick, president of the Orange County Performing Arts Center. “It is a very difficult process and getting more difficult all the time.” The center most likely finished 1992 in the black, nevertheless.

For the Orange County Philharmonic Society, which presents classical music concerts at the Center and at the Irvine Barclay Theatre, the fund-raising campaign about halfway through the current fiscal year is running ahead of projections on corporate and foundation grants, but is lagging in government and individual help.

The society has had particular difficulty persuading individual donors in the $1,500-and-up category to renew their pledges. It’s not surprising: Median household income in Orange County fell in 1992 for the first time in more than a decade, to $45,000 from $49,000.

“We’re pleading our case to people who generally didn’t need it in the past,” said Philharmonic Society Executive Director Erich Vollmer. “It’s indicative that people are really having to make hard decisions about how they spend their charitable dollars. I don’t see that changing in the next six to 12 months.”

David DiChiera, general director of Opera Pacific, said his company is facing a similar problem. “One of the great concerns I have is that very loyal supporters at the upper levels of giving and some of our friends are facing difficult times,” he said. “Their desire to support the company is there, (but) their ability to do so is diminished.”

That’s a problem for organizations that rely on a degree of constancy in their donor base. Opera Pacific and other groups are forced to redouble their efforts to find new supporters.

“It’s tough any way you slice it these days,” said Stuart MacDowell, artistic director of GroveShakespeare. The company endured the loss of some major staff members in 1992, as well as the disappointing news that it did not share in the annual largess of the Freedman Foundation. The foundation gave GroveShakespeare $250,000 in its first round of gift-giving a year ago but passed the troupe up in the latest round announced a few weeks ago, citing inadequate community support.

This week--shortly after managing director Barbara Hammerman announced her unexpected resignation--the company announced that it would end the year with a $100,000 deficit, the largest in its 13-year history.

MacDowell said the company is hoping to make up for at least some of the shortfall on the fund-raising side with a push to sell more tickets. “Anybody in the business today will tell you that earned revenue is the wave of the future,” he said. “Our major focus this year will be on marketing, to put people in the seats.”

That’s no easy task at a time when subscription rates nationwide are dropping. The Pacific Symphony, for instance, has seen subscriptions to its classical series slide, although subscription sales for the pops and summer series are up.

“The dip in subscriptions is a concern because it does reflect a national trend,” said Executive Director Louis G. Spisto. What worries him and other administrators is that the trend reflects “a change in lifestyle” and not just a sluggish economy.

For the Philharmonic Society orchestra series, Vollmer said, “we had a slight decline in subscriptions for the current season. . . . We’re seeing a repeat of what happened last year, an increase in single ticket sales,” but subscription sales are preferable as they provide a more reliable source of money up front.

“To that end, we are considering some significant changes in how we package our concerts for ‘93-’94. We’re trying to find ways of making subscriptions more attractive.” He declined to elaborate on specific strategies.

“Box office patterns remain volatile,” said the center’s Kendrick, and that means headaches for the people who must try to plan seasons, and a more conservative approach to programming as audiences choose the tried-and-true over unfamiliar works or ensembles.

“The pattern is very clear, that the audience is picking and choosing, and responding to those attractions that are well-known,” Kendrick said. “What is distressing is that (for) lesser-known attractions, even if they are of exceptional quality, and for those that have a narrower audience base, such as modern dance, the risk has increased steadily.”

At the center, such perennial crowd-pleasers as the “Nutcracker” and “Les Miserables” did well at the box office but “disappointing” audiences and heavy money losses were reported for the Paul Taylor Dance Co. and a jazz concert by Branford Marsalis and Linda Hopkins.

Because of a “limited number of discretionary dollars,” Kendrick said, “to put on a lesser known or an unknown talent has become impractical.”

Another economy-related challenge for those who present programs, such as the center and the Philharmonic Society, is a dearth of quality touring attractions. Orchestras, dance troupes and opera companies, themselves pinched by the recession, have cut back their touring schedules.

In addition, the number of venues that can support major-caliber touring groups is declining, making it even more difficult for companies to assemble tours. Orange County was one of just two places in the country that played host to the Royal Danish Ballet when it toured in 1992.

On the international side, ensembles that once were heavily subsidized are losing their government support, causing them either to cut back on touring or to charge higher prices. And the continuing Broadway slump means less musical theater, which has been a cash cow for the performing arts center.

“The problem is the cumulative impact of the recession on the arts,” Kendrick said. Dance companies are one example. “The dance companies have always been fragile. They haven’t had the money to put into new works and new productions, which just compounds the problem over time.” Even with a quick economic turnaround, there would be a lag time of two years or more before companies could choreograph and produce new works.

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Despite such continuing difficulties, there were some words of encouragement on the local scene for 1993.

The Irvine Barclay Theatre will expand programming in the 1993-94 fiscal year, said theater President Douglas C. Rankin. He couldn’t quantify that, because they’ve just begun to assemble their schedule there, but for starters he said that children’s programming, which has been “on a roll,” probably will be increased.

Rankin said the theater is expecting more support from the private sector in 1993 because much of the money pledged to construct the theater has been received, and now it’s time to go out into the community to solicit funds for different needs, namely programming.

“We expect more support because we will have been in operation for three years by then,” he said.

And at the Laguna Playhouse, Executive Director Richard A. Stein said long-dormant plans for an off-site second stage actually may be revived this year. That’s largely because the playhouse has ended two consecutive fiscal years in the black for the first time in six years, which Stein attributed to efforts to keep expenses down, more aggressive marketing and other factors.

Also, while he isn’t too confident that outright contributions will swell in 1993, he notes that ticket sales for plays and attendance at fund-raising parties at the theater have improved.

“My hope is that Mt. Pinatubo will erupt in the coming year,” Stein said. While not giving specifics, he said that “major pitches” have been made to potential funders, asking for support for a second stage. He gave the project’s resuscitation a 50-50 chance, whereas last year he would have given it no chance at all.

“It’s always critical to have a stable financial base before you take on a major project,” he said. “The red ink certainly raises eyebrows among donors about your ability to follow through.”