How the Baltimore Symphony Orchestra found itself in trouble
By Baltimore Sun staff
Jun 17, 2019 at 10:05 AM
Baltimore Symphony Orchestra made headlines this month after musicians, donors and members of the public learned the organization is in dire financial straits.
Here’s what you need to know:
The BSO was established in 1916 as a branch of the Baltimore municipal government. The orchestra later reorganized as a private institution in 1942 and now performs out of the Joseph Meyerhoff Symphony Hall.
To protest management’s announcement, the musicians added an unscheduled selection to that night’s performance: Elgar’s “Nimrod,” a moving piece that conveys a feeling of loss. Brian Prechtl, co-chairman of the BSO players, told the crowd at the May 30 show that musicians would not be paid after June 16. Loud boos erupted the audience.
News of the summer concert series cancellations came just days after Republican Gov. Larry Hogan allowed a measure to become law without his signature that had been designed to fend off the shortened season. The Maryland General Assembly passed a bill sponsored by Del. Maggie McIntosh, a Baltimore Democrat, that would award the organization an additional $3.2 million in state funding for the next two fiscal years.
McIntosh’s legislation also requires a task force to come up with solutions for the long-term health of the BSO.
The Baltimore Sun obtained financial documents showing the orchestra’s fiscal health is in calamitous condition. Even factoring in additional state funding, the orchestra is projected to barely make payroll in July and August, according to cash forecasts for a 52-week season. The orchestra would likely end its fiscal year with an approximately $1.5 million deficit.
For a decade, the orchestra’s expenses have been greater than its revenues, Kjome said, owing to a number of factors. He said increased ticket sales, charitable donations and government grants or a larger endowment could help bolster revenues, but he argued expenses — such as nine weeks of paid vacation time for musicians — also need to be shrunk.
The BSO’s annual operating budget draws roughly $3.6 million a year from its $60 million endowment to support its operations. If the BSO could increase its endowment to $100 million, Kjome has said, it could draw almost $2 million more a year — or roughly the sum needed to break even at the group’s current spending levels, assuming its current donation rate remains constant.
Still, many saw the proposed shorter schedule leading to fewer donations and ticket sales, not more.
Union negotiations stall
Amid the financial turmoil, the Local 40-543, the union that represents the orchestra’s musicians, is negotiating a new contract. BSO musicians have been playing without a contract since January, when the last one expired.
Prechtl, a percussionist in the orchestra, said musicians took salary cuts in 2010 following the recession while they have seen no similar cuts made to management’s salaries.
“This has been an ongoing process that began over a year ago with management and they have not really been up front about their intentions,” Prechtl said, adding that the orchestra’s board said they would not lock the group out during the negotiation process.