from the management of the Oregon Symphony, Sept. 12:

SYMPHONY ASSOCIATION COMMITTED TO FINANCIAL STABILIZATION

Oregon Symphony musicians must share in the responsibility

Portland, Ore.... As Oregon's largest musical resource, the Oregon Symphony has enjoyed 100 years of unprecedented community support -- reflected today by donors who contribute to the third largest annual fund in the state and the 300,000 concertgoers who attend Symphony concerts each year.

However, with an accumulated deficit which stands close to $1 million and which drives a need to borrow money to cover expenses for more than half of the year, the Oregon Symphony Board of Directors maintains its commitment to this community that it will systematically work toward financial stabilization, said Symphony President Don Roth today. As a demonstration of that commitment, the board itself has made an aggregate contribution in excess of $4.6 million to the Symphonv over the past three seasons.

The Oregon Symphony has enjoyed strong public support in recent years, said Roth. It maintains the highest subscription attendance per capita in the country and an earned income ratio that often exceeds 50 percent. Administrative costs continue to fall well below national averages, and the past two years have seen close to a 20 percent jump in overall fundraising efforts. Its regional tours and neighborhood programs attract tremendous support in Portland and a three-state region. In addition, the endowment has grown significantly, thanks to the recently completed Centennial Campaign, chaired by Symphony Life Director Bill Fronk.

These accomplishments are significant, said Roth, but not enough by themselves to ensure future fiscal health. "We have a multi-faceted plan to eliminate our annual operating gap in the next four years," said Roth. "It is a carefully managed and systematic plan to achieve stability while maintaining artistic excellence. The plan calls for important initiatives to raise our already high income levels combined with ongoing scrutiny of expenses."

The initiatives include:

• an innovative series of audience development concerts
• a plan to increase the number of fee and special concerts
• more special public sector initiatives and partnerships
• a board-driven fundraising campaign to raise larger individual gifts
• a board-driven campaign to raise larger corporate gifts
• a board-driven campaign to raise more gifts from high-tech corporations

The plan calls for the board and staff to notch up fundraising efforts that have already grown 8 and 10 percent in the last two years, extraordinary among industry standards. In addition, the newly established Oregon Symphony Foundation will act as an endowmentbuilding mechanism which will ultimately help to secure an increased stream of reliable annual income. And overall ticket sales are expected to be further enhanced through the audience development concerts, which are funded by a private foundation grant. The Symphony also has asked its musicians to support the stabilization plan by accepting a contract which offers moderate wage increases -- increases which total 6.5 percent over three years (see attached proposal summary).

"Since musicians' salaries and benefits represent our largest expense," said Roth, "the plan would be powerless without their involvement." Most significantly, the proposal also calls for revenue-producing schedule changes that would allow the Symphony to perform more of its series concerts on weekends, while simultaneously streamlining the musicians' work schedule, including increasing by 50% the number of weekend days free from services.

The 1995-96 average compensation for a Symphony musician is $43,776. Each musician also receives other benefits including a fully funded pension and fully funded family medical and dental insurance. The total cost of salaries and benefits for the 86 fulltime musicians in fiscal 1995-96 was $5.1 million, approximately half of the Symphony's total budget. By the end of the proposed three-year contract, the Symphony Association's offer would bring the average compensation to $46,155 annually.

"We have a strong desire to see the current negotiations resolved in a positive and constructive manner," said Roth. "But we must avoid a pattern of deficit spending which could seriously jeopardize the Symphony's future. The union's current proposal could leave us with an accumulated deficit of nearly $3 million by fiscal year 1999 and would create an intolerable level of financial vulnerability for our organization. We hope that we can work together with the union to achieve a settlement which will support a stable financial future and will prove beneficial for all who work for and appreciate the Oregon Symphony. "

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