In Wednesday’s (12/7) Star-Tribune (Minneapolis), Graydon Royce writes, “The Minnesota Orchestra on Tuesday reported the largest annual deficit in the organization’s 109-year history. The shortfall came to $2.9 million on a budget of $30.4 million, for the year ended Aug. 31, breaking a streak of four years of balanced budgets. … The Minnesota Orchestra plans to balance its budget in 2013 by attracting new audiences, reducing the number of concerts and making major expense cuts while increasing earned and contributed income, said Michael Henson, president and CEO. ‘Excellence is not enough,’ Henson said at the company’s annual meeting Tuesday. ‘We have to find another way to work.’ … A key factor in the deficit was that the orchestra chose to rely less on endowment funds to close the financial gap, drawing down $1.8 million less than last year. Henson and outgoing board chairman Richard Davis said Tuesday morning that was a strategic decision. … Tuesday’s news came as contract talks loom between management and musicians. The players’ current contract expires next September. Salaries and benefits for the players consume 48 percent of total expenses, and orchestras nationwide have reduced musician numbers or cut salaries. Here, nonunion staff salaries have been cut, and the musicians agreed to concessions in 2009.”
Posted December 7, 2011
