Virginia Symphony to cut costs as debts weigh heavily

NORFOLK

The Virginia Symphony Orchestra, which has a $1.5 million debt, is cutting employee salaries by 20 percent and canceling some spring concerts.

A reduction in single ticket sales and insufficient donations are largely responsible for the debt, accrued since the fall of 2007.

Salary cuts for the 27 full- and part-time administrative and artistic staff members will go into effect Jan. 1, Carla Johnson, executive director of the symphony, said Tuesday. Pay for the symphony's 76 musicians is not being reduced.

The symphony will decide in the coming weeks which three to five of its spring concerts to cut, Johnson said. At that time, symphony subscribers who selected those concerts will be contacted and given other options.

The symphony has 5,000 subscribers.

The cuts are part of an effort to slash $500,000 in expenses from this year's $6.5 million budget, which runs through July 31. "We'll probably be looking at other places as well. There's really nothing sacred," Johnson said.

In August, the symphony laid off four staff members, including an artistic administrator and an associate marketing director.

The difficulties arose when the symphony ended its last season with a $1.5 million deficit. In recent years, the symphony has carried over cash from robust spring subscription sales and municipal grants received in summer into its new fall season, helping the organization weather the traditionally sluggish revenues experienced in the fall, Johnson said.

This fall, burdened with debt, the symphony used up its entire line of credit, and is now paying interest on that loan, Johnson said. "We have no cushion. We have no capacity to borrow."

The symphony raised $1.15 million in contributions in the fall, which is $150,000 more than was raised during the same period last year, Johnson said. Still, that wasn't enough.

In addition, Johnson said, "we have large contributions we were expecting that have not come in." Those potential donations constitute "hundreds of thousands" of dollars from both new and traditional donors, she said.

Blair Wimbush, board chairman, was out of town and unavailable for comment on Tuesday. Last month, he said that the entire 28-member board was actively engaged in fundraising.

"We're asking more people. We've broadened our base."

Many potential donors are taking a wait-and-see approach, he said.

The Virginia Symphony is the region's top orchestra and performs in halls throughout the area. The symphony performs with the Virginia Arts Festival, Todd Rosenlieb Dance, Virginia Opera and the Virginia Ballet Theatre productions of "The Nutcracker." In addition, the musicians provide educational programs and instruction in schools and universities throughout Hampton Roads.

JoAnn Falletta, its internationally known music director and conductor, is among those who will take the salary cut. Falletta is scheduled to speak this morning on "the importance of the orchestra to the quality of life in Hampton Roads" at a breakfast meeting of the Downtown Norfolk Council at the Sheraton Norfolk Waterside Hotel.

Teresa Annas, (757) 446-2485, teresa.annas@pilotonline.com