LI Philharmonic fighting to survive

THE Long Island Philharmonic, one of the region's leading cultural institutions, is struggling with reduced financial support and deep debt.

The orchestra was forced to abandon its classical 2010-11 concert subscription series -- the heart of a symphony orchestra's operation -- and will likely do the same this fall. The concerts, which have always operated at a loss, have become too unprofitable to sustain.

"If we have any hope of surviving we cannot play concerts that lose money, and we have to cut down our overhead," Philharmonic board president Jack Russell said.

The nation's economic downturn and persistent financial uncertainty have crippled other regional symphony orchestras. The Philadelphia Orchestra filed for Chapter 11 bankruptcy in April; the Honolulu Orchestra ceased operation in 2010; and the Syracuse Symphony Orchestra closed this year after failing to meet its fundraising goal. Detroit Symphony Orchestra musicians returned to work in April after a strike over a $24,000 cut in base salaries.

The Philharmonic, which played to a crowd of more than 20,000 Saturday night in a free concert at Heckscher State Park in East Islip, is developing a strategic survival plan that is slated to be ready by September. The goal is to raise $600,000 by the end of next summer, which would be enough to allow the resumption of at least a limited concert season for 2012-13.

Founded in 1979 by the late singer Harry Chapin, the orchestra has an annual budget of $1 million and owes more than $700,000 in short- and long-term debt. The situation is critical because corporate, individual and government funds and donations that in recent years totaled up to $490,000 annually fell to $260,000 in 2010, Russell said.

He blamed the drop, in part, to the lack of a subscription season since, he said, "typically people contribute when they resubscribe." He also cited a sharp decline in member grants from the New York State Senate.

In its most recent subscription season -- 2009-10 -- the Philharmonic performed seven classical concerts. A typical set of identical concerts (the same program played in one Nassau venue, one Suffolk) generates more than $70,000 in ticket sales and program advertising, and costs about $150,000. That leaves the orchestra with an $80,000 deficit that has to be bridged by donations and sponsorships, Philharmonic executives said.

At its peak in the 1980s the Philharmonic played 16 classical performances a year and its total annual operating budget topped $2 million. By 2010, the orchestra had cut its budget to $1.2 million.

"We got to a point where we could not pay the payroll," Russell said. Musicians, unionized freelancers who are paid a set fee for each performance, agreed to finish the 2009-10 season. They are still owed around $80,000, along with $170,000 due other staff, said Linda Morrisey, the orchestra's general manager.

John Babich, a bass player who is chairman of the Long Island Philharmonic's Musicians' Orchestra Committee and has played with the orchestra since it started, said the Philharmonic's financial trouble dates to the late '80s. Factors such as the economic downturn and the Sept. 11, 2001, terror attacks "continue to chip away at all sorts of nonprofit arts groups," he said. "They never come back from them completely. What we have left is barely functional."

With the classical season canceled, the orchestra has focused on programs that don't increase its debt: the free outdoor summer concerts, which are funded by the counties or towns where they're performed, and educational programs that are funded by schools and corporate donations.

"If you're a three-legged stool and you can survive on two legs, you're going to do that," Russell said.

The Philharmonic received a lifeline last December, a $50,000 donation from the Port Washington-based Horace and Amy Hagedorn Fund that was used to hire a marketing team. The four consultants, experts in invigorating nonprofits, are working with the Philharmonic board to create a three-year sustainability plan.

The board is making "very painful decisions," said Cindy Morris, who heads the team. The Philharmonic has cut staff from eight to three, though it plans to replace executive director Stephen Belth, who resigned after the board canceled the 2010-11 concert season.

Beyond stabilizing finances, the Philharmonic needs to "rebrand" itself, Morris said. A New Year's Eve concert this year, for instance, went beyond classical to include Broadway show tunes, and the orchestra made a $70,000 profit on that performance.

"We've talked about . . . the need for us to appeal to a younger audience," she said.

With the five free outdoor concerts this summer, music director and conductor David Stewart Wiley hopes Long Islanders realize what they would be losing if the orchestra can't return to solid footing.

"I am optimistic that those who finance the orchestra can see the excitement we generate when we are performing for tens of thousands of Long Islanders," he said.

With Steve Parks

BALANCING ACT

Financial breakdown of a two-night program from the 2009-10 season with an orchestra of 60, according to LI Philharmonic general manager Linda Morrisey:

TOTAL INCOME: $71,846

Ticket sales: $66,341

Program advertising: $5,355

Gift shop sales: $150

TOTAL EXPENSES: $149,197

Orchestra wages, benefits: $122,739

Hall rental: $12,369

Transportation: $5,279 (Bus from Manhattan for musicians and instruments; required by contract)

Marketing: $6,455

Miscellaneous: $2,355