Cleveland Posts Large Deficit

Even the most prestigious American orchestras aren’t safe from the wave of deficits and cash flow problems which has swept the nation in recent years. This week, the Cleveland Orchestra, thought by many to be the best symphony orchestra in the U.S., reported a deficit of nearly $2 million on a budget of $36 million. This is the second consecutive deficit for the group, and orchestra execs are projecting a $4 million deficit for the current fiscal year. The struggle to stay in the black appears to be twofold: “The fundamental problem is the presence of a world-class symphony orchestra in a relatively small city,” and the orchestra’s endowment was hit hard by the recession, losing more than $50 million over three years.