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The Honolulu Advertiser
Posted on: Friday, April 18, 2008

SYMPHONY
Honolulu Symphony sinking in debt

By Loren Moreno
Advertiser Staff Writer

Hawaii news photo - The Honolulu Advertiser

The Honolulu Symphony, performing for students Tuesday at the Neal S. Blaisdell Concert Hall, plays on despite increasing debt.

Photos by BRUCE ASATO | The Honolulu Advertiser

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Hawaii news photo - The Honolulu Advertiser

The Honolulu Symphony performed “Peter and the Wolf” Tuesday for elementary school students. The head of the orchestra committee said the symphony will lose musicians if funding is not secured.

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83

musicians and other symphony staffers

7

weeks musicians have gone without pay

$33,000

base salary for a musician

$750,000

amount needed to fully pay musicians

$810,000

amount symphony is seeking from Legislature

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The Honolulu Symphony's financial troubles — initially revealed last fall — apparently have gotten worse with musicians and staff members owed more than seven weeks' worth of back pay.

Last December, symphony officials disclosed that 83 musicians and other staff members were forgoing pay checks as a result of decreased ticket sales and increased expenses.

At the time, however, officials were convinced that several large private donations and Legislative support would help turn the tide. But with just weeks left in the symphony's 2007-08 season, officials say the century-old institution needs $1.5 million to $2 million to pull itself out of debt.

"If we aren't caught up by (June 30), and we don't have enough money in the bank, then the start of the next season could be in jeopardy," said Tom Gulick, executive director of the Honolulu Symphony. "We've been operating on the grace of our orchestra, creditors and others."

Musicians have made unofficial agreements with management to continue to play through the end of the season, even if pay is delayed, said Paul Barrett, chairman of the orchestra committee and principal bassoonist.

"We're seven weeks behind in pay and it is hurting us tremendously," Barrett said. "I've taken out some loans. Some bills aren't getting paid. We're doing the best we can with what we got. Fortunately, that's one of the skills we've developed over the years as Honolulu Symphony musicians."

Barrett warned that drawn out financial problems could potentially drive talented musicians away from the symphony.

"Some musicians have been offered work elsewhere," Barrett said.

The base salary for a musician, who works the September to May season, is $33,000.

POSSIBLE STATE GRANT

For the past several months the symphony has been lobbying the state Legislature for $810,000 in emergency funding. A measure to give the symphony that money gained support in the House but failed to gain support in the Senate.

The symphony is now seeking the same amount of money in the form of a state grant. But the possibility of that coming through is questionable, said some lawmakers.

State Sen. Rosalyn Baker, D-5th (W. Maui, S. Maui), chairwoman of the Ways and Means committee, said the Legislature can only approve a limited amount of grants.

"All of the grants and aids have to be considered in the context of the larger budget," Baker said.

"Because of the financial situation of the state, we did not recommend very many grants and aid. We did not recommend a lot of very worthy organizations because we just don't have the financial resources."

The symphony has historically had a difficult time balancing its budget, Gulick said, but this season "has been an extraordinarily difficult year."

Financial problems were exacerbated when the symphony was forced out of its regular venue at the Blaisdell Concert Hall due to "The Lion King" tour, which ran from September to December, he said.

That caused the symphony to move to various other smaller — often more expensive — venues. Venue changes hampered ticket revenues by at least $500,000, while costs simultaneously increased.

Meanwhile, symphony officials restored a 20 percent musician pay cut implemented in 2003, Gulick said.

For the past several seasons the symphony has operated on a budget that averages between $6 million and $7 million, said Kristin Jackson, a spokeswoman with the symphony. But this season, with the venue changes and increased expenses and overhead, the budget rose to about $8 million.

Several upcoming fundraising opportunities has Gulick hopeful that the symphony will recover before next next season.

The orchestra's annual Symphony Ball fundraiser is scheduled for May 17 at the Hawai'i Convention Center. That event pulls in anywhere from $250,000 to $400,000. The symphony also is gearing up to start an aggressive fundraising drive very soon, Gulick said.

"We're approaching this on a number of different fronts. But the state funding could make a sizable difference," he said.

The state recently infused the symphony's endowment fund with $4 million, Gulick said. But that money won't have an impact until it can accrue interest, which will take about a year, he said.

"It's not of any immediate help this year," he said.

DIRECTOR OPTIMISTIC

Next year is expected to be a much less expensive season, considering that the symphony is not expected to be pushed out of its main venue at the Blaisdell Concert Hall. The symphony will make more use of the Waikiki Shell, which could be good for ticket sales, Gulick said.

Jeff Minter, chairman of the symphony board, said the symphony also plans to offer repertoire that will appeal to families and a broader audience. The symphony is in talks with the city to offer a Fourth of July concert and a series of summer concerts, that could help with revenue, he said.

"We've had success with donations and people have stepped up. But we're not out of the woods by any stretch," Minter said.

Symphony officials say the main focus is getting out of the current financial slump and starting next season on a clean slate.

"Payroll right now is the most critical issue. Musicians are playing, in essence, without being paid or they are being paid well behind what they actually should be getting paid," Gulick said.

The symphony will need at least $750,000 by the end of the fiscal year to pay back what is owed in payroll, Jackson said.

Barrett said fellow musicians are optimistic about aggressive fundraising plans and the financial outlook beyond this season. But he stressed that the community needs to take a more active role in the financial health of the symphony.

"We're depending on the community to not only support us with words of encouragement, but with money. It's essential," Barrett said. "Think of what our community would be like without an orchestra. That would be a real tragedy for Honolulu."

Collectively the musicians privately teach some 900 students across the state, Barrett said. The orchestra also provides educational outreach programs on O'ahu and the Neighbor Islands to some 20,000 schoolchildren a year.

Gulick said the symphony management and its board of directors share in the fear that long-term financial difficulties could ultimately affect the orchestra's ability to retain its musicians.

"If some of these players go away, they may not come back, which would hurt us artistically and educationally," Gulick said.

Reach Loren Moreno at lmoreno@honoluluadvertiser.com.