By Kathleen McLaughlin, The IBJ
kmclaughlin@ibj.com
The recession is catching up with the Indianapolis Symphony Orchestra, which laid off eight people, or 10 percent of its non-musician work force, today.
The layoffs are part of a scramble to shave about $600,000, or 2 percent, from the ISO's $29.5 annual budget.
"We will combat these economic challenges by operating as efficiently as possible without compromising our high artistic standards," ISO chief executive Simon Crookall said in a prepared statement.
Symphony spokeswoman Jessica DiSanto said the cuts affect every department except for the 87 union-represented musicians. ISO management will look for ways to have some work outsourced or picked up by volunteers.
For example, DiSanto said, the symphony might ask a staff member to fetch a guest musician from the airport instead of hiring a car service. The symphony will also seek volunteers to supplement its corps of part-time hourly ushers.
Just last fall, Crookall was optimistic that donations and ticket sales would continue at their 2008 level. The ISO finished its 2008 fiscal year on Aug. 31 with a $293,514 budget deficit, but had seen contributions and ticket sales grow during the year.
One troubling component of the symphony's finances is an endowment under great pressure to support operations. Last fiscal year, the symphony drew nearly $10.7 million, or 8.9 percent, of the endowment's average worth over the prior 36 months.
As of Dec. 31, the symphony's endowment was worth $84 million, down 21 percent since the fiscal year's end.
Donations, which totaled $8.5 million last fiscal year, are also falling, the symphony said. Contributions to the annual fund, which targets individuals, are down 5 percent. Corporate giving is down by 3 percent.
Promotional discounts have helped overall ticket sales, though the symphony did not say whether income from those sales was up or down. Income amounted to $8.4 million last year, it said.
For 10 days in January, the ISO offered any seat for $25 and sold 4,700 tickets, bringing in $116,000.
Now the ISO is offering a $10 discount on purchases of $50 or more, plus a $10 coupon for future purchases.
"The promotions have had a positive impact on both awareness and ticket sales," the release said.