by Bradley Parsons
Staff Writer
The Jacksonville Symphony Orchestra isn’t going to climb out of $2.5 million in debt through budget cuts or increased revenue, the JSO’s board chairman told his board members. Instead, the JSO’s viability will depend on its ability to set and follow an effective strategic plan.
In a memorandum circulated at a November board meeting, chairman Steve Halverson said the JSO had likely wrung all the money possible out of a series of cuts enacted over the past two years. Revenues have also reached a plateau he said, leaving the board and the JSO’s administration looking for ways to restore the symphony to solid financial footing.
The JSO has posted operating deficits eight of the past 10 years, according to the memo, and only avoided that distinction last year by drawing an extra $225,000 from a $12 million endowment. The JSO has depended on major donations from corporate supporters like Blue Cross Blue Shield and its board members in recent years to help even out its ledger. Halverson said this patchwork approach couldn’t provide a long-term solution.
“Making miracles is not a sustainable strategy,” wrote Halverson in the memo. “We can’t plan and think on a long-term basis if we rely on episodic, non-recurring events to meet current year obligations.”
Halverson called on the board to think strategically in planning the JSO’s future direction. The board’s planning since 2000 was critiqued as “not adequately focused,” but Halverson saw some recent positive steps. Last year’s planning session resulted in a report from industry consultant Burdette B2B, which was instrumental in the JSO’s recent efforts to become more accessible and relevant. This year’s “Plugged In” series featuring joint performances with local rock band Mofro and a Dave Matthews Band cover group were results of that report’s recommendations.
That series has brought a more diverse crowd to the JSO’s performances said Alan Hopper, the JSO’s executive director.
“It’s broadened our appeal to a different constituency group and given us an image of accessibility. It’s shown the symphony isn’t an elitist thing,” said Hopper. “Just looking at the audience, you see a lot of younger faces than you’re used to seeing.”
Hopper said the 2003 session also led to more efficient marketing. Direct mail campaigns aimed at previous ticket buyers and other target demographic groups replaced radio ads and the JSO increased its ads in local papers. The result, said Hopper, was 30 percent more effective for 30 percent less money.
The marketing budget wasn’t the only thing cut. The administration cut its full-time staff to a “bare bones” level of 19. Staff members learned to fix their own computer glitches after getting rid of IT personnel and administrators pitched in to do telemarketing. Those cuts saved $400,000.
About the only expense that wouldn’t budge was the musicians’ pay and benefits. The administration asked the musicians for concessions but ultimately decided those cuts would cost in other areas. Halverson said in the memo that the musicians’ contract will increase operating costs by about 5 percent over its remaining two years.
Hopper agreed with Halverson that there’s not much fat left to trim. However, he sounds more optimistic than the chairman about the JSO’s prospects to increase revenue. Citing ticket prices that exceed national averages and the JSO’s inflationary union agreement, Halverson said the JSO had reached “a revenue plateau that will be hard to move.” But Hopper thinks there’s money that might yet be culled.
“Our income is up about 8 percent this year. It can’t jump ahead like that every year, but people are responding well to our new series (Plugged In). Plus the economy as a whole is doing a little better than it was a year ago,” said Hopper.
But Hopper agrees better strategic planning will help the JSO maintain the momentum built in the last year. Halverson recommended a strong board to guide the JSO’s policies and said new members should be capable of enforcing a “best practices” model for the symphony’s operations. The JSO board “can and should be among the most powerful non-profit boards in our community,” he said.
With some of Jacksonville’s most notable business and political leaders as members, the board is one of the JSO’s strongest assets, said Hopper. He would support changes that give the board more influence into the JSO’s future direction.
“There’s lots of talent on that board with lots of access to the community,” said Hopper. “What we’re rethinking now, is how to develop a structure that utilizes that talent.”