The Utah Symphony was born in 1940 during the Great Depression as a Works Project Administration group, so its musicians and administrators are determined not to let another economic downturn derail the state's premier performing-arts organization.
"In times of economic crisis, people come together," said Melia Tourangeau, president and chief executive of Utah Symphony | Utah Opera.
Like all arts groups, US | UO has been pummeled by the recession, but the economics challenges have forged a closer relationship between the usually fractious administration and musicians as they partner to slash costs while trying to maintain the programming integrity -- in the smallest-sized market in the country with a 52-week professional orchestra.
The obstacles, however, are unlike anything the organization ever has faced. Financial challenges are complicated by the loss of Utah Symphony music director Keith Lockhart, whose 11-year tenure ends May 30. Orchestra leaders held three days of strategic planning meetings earlier this week, coinciding with the completion of an annual audit that reveals the dire nature of US | UO's epochal predicament.
"I don't have a crystal ball," said Erich Graf, principal flutist and president of the local chapter 104 of the American Federation of Musicians. "We'd all like to say there's smooth sailing for the next five years, but that's not the way the society is right now. It's day to day."
Many outside the organization first learned about the economic problems of US | UO in April, when officials announced it would reduce operating expenses because of an anticipated shortfall in the fiscal year that ends Aug. 30.
This year's anticipated $1.3 million shortfall is devastating considering the controversial merger of the orchestra and opera company in 2002 created annual deficits, and the organization didn't see its first surplus until the 2006-07 season. But then, by the next season the company had lost $2 million.
In April, Tourangeau and Lockhart took a 10 percent salary cut (Tourangeau's 2008 salary was $200,000; Lockhart's in 2006 was $285,000), while symphony musicians voted to give back 11.5 percent of their salaries and benefits, most significant as a sign of a willingness to put aside long-festering differences.
The 83 full-time musicians' contribution included donating two full weeks of salary, contributing half of pension contributions and giving some vacation and personal days. An entry-level position with the orchestra begins at a salary of about $60,000.
As for management, US | UO staff also received salary cuts, and employer-pension contributions were suspended for the rest of the year. Eight positions were eliminated from the 60-member administrative staff.
The shortfall was primarily due to reduced private and public contributions, including lower Salt Lake County Zoo, Arts and Parks tax receipts this year due to the economy and to the state Legislature's reduction of sales tax on food.
Ticket sales make up 25 percent of the organization's revenue, said Pat Richards, board chairwoman, and a senior vice president of Wells Fargo. The rest of the budget is dependent on contributions, which have precipitously declined. In addition, the organization's endowment lost more than 15 percent of its value between Dec. 31, 2007, and Sept. 30, 2008, reducing $40.5 million to $31.9 million.
Goal No. 1, therefore, was for the 40-member high-profile board of movers and shakers to become more active in raising money. "It's the most challenging fundraising time in my lifetime," Richards said.
Supporters are being asked to give more everywhere, according to Drew McManus, a national orchestra consultant, based in Chicago. "Boards need to step up financially," McManus said. "They need to give beyond the point of what is convenient" and should use their connections to enlist support.
So the board's biggest challenge was finding substantial donors, many of whom might have been reluctant contributing to an endowment invested in the rocky stock market. Instead, Richards said, board members (guidelines suggest contributions of $10,000 to $25,000 annually for the privilege of serving on the board) were asked to increase their contributions, as well as ask friends and associates for "leadership gifts," earmarked for operating expenses instead of investments. By the end of March, $400,000 had been committed, nearly half of the $1 million goal.
Broadening the number of donors was another important goal for US | UO, said David Green, chief operating officer and senior vice president. More than 600 donors have been found who hadn't given to the organization before or who had lapsed in their contributions, he said. Sales for the 2009-10 are also strong, with more subscribers than last year, Richards said.
Besides seeking contributions, the organization has sought other ways to trim the fat and do more -- or the same -- with less.
That's why the 2009-10 orchestra season is packed with what Green calls "beloved warhorses that are tried and true," with concerts and composers that are recognizable to the casual classical music fan. The season schedule includes: "An Evening of Beethoven" in September, Dvorák's "New World" Symphony in February and Verdi's Requiem in April. "We want to program things that people love," Green said.
As for Lockhart's replacement, officials remain tight-lipped, as they have been throughout the process. Richards would say only that the search is "on track." The organization's economic problems aren't affecting the search or turning off any potential conductors, Tourangeau said, since orchestras everywhere are facing financial strains.
Financial downsizing moves aren't just limited to the orchestra. At the Utah Opera, an expensive production of "The Dialogues of the Carmelites" has been postponed again, but the season still features four full productions, said artistic director Christopher McBeth.
With the May 2010 Puccini production of "Suor Angelica," McBeth plans to enlist talented up-and-comers from Utah universities to play ensemble roles, rather than spending top dollar for out-of-town guests. The company also already owns the set and costumes for January's "Carmen," so renting those expensive items won't be necessary. And when the Utah Opera stages "Macbeth" in October, it will pool resources and split costs with three other companies.
But all of the changes won't eliminate this season's deficit, while the orchestra won't be investing any money in the near future with hopes of a return.
Transparency should be kept in mind as US | UO faces its future, according to McManus, the national consultant, and the organization's books should be open to all stakeholders as a way to gain the support of a community.
This time around, musicians have been kept in the loop, Graf said, and more players have taken an interest in financial operations.
But US | UO remains caught in the financial crisis that has crippled orchestras in Atlanta, Chicago and Honolulu. It remains to be seen how much the community is committed to a viable, creative orchestra as the state makes its way through another depression.
"People really need the arts right now," McBeth said.
It's a comment that carries a question, and only enhanced community support, through attendance and contributions, will provide an answer.
Utah Symphony » Founded in 1940
Utah Opera » Founded in 1978
US | UO » Merged in 2002
Current annual budget » Cut $1 million in April to $17.5 million
This year's estimated deficit » $1.3 million
Losses » Between Dec. 31, 2007 and Sept. 30, 2008, the organization's endowment lost more than 15 percent of its value.
Cutting costs » US | UO president Melia Tourangeau and resigning musical director Keith Lockhart in April took a 10 percent pay cut. The orchestra's 83 full-time musicians (entry-level salary of $60,000) took an 11.5 percent pay cut. Administrative and artistic also staffs received salary reductions, eight full-time positions were eliminated, and employer-pension contributions were suspended.
Programming cuts » Pops subscription will contain five weekends rather than seven, with Jerry Steichen as the new principal pops conductor. Will use in-house talent to create its own shows for the Family Series. The Chamber Music Series and New Music Series will be suspended during the 2009-10 season. Programming for the Masterworks series will be streamlined to minimize the number of extra players hired, and will forgo hiring expensive soloists.
Faltering foundations
Funding Utah nonprofits receive from charitable foundations could decline by $70 million or more in the coming year, affecting services to the rich and poor.
Lockhart's legacy
Keith Lockhart ends 11 seasons with the Utah Symphony next week, leaving a legacy defined by epic programming and merger controversy.

