How to Save the Baltimore Symphony Orchestra

Carol Park Jun 5, 2019

Historically, the Baltimore Symphony Orchestra is an internationally recognized orchestra that has attracted tourists, residents and other Marylanders to Baltimore City. In recent years, however, the city has been struggling with steady population loss and rising crime rates, so it should not come as a surprise that the BSO has also been struggling with continuous financial hardship.

 

The BSO abruptly canceled its summer programs last Thursday, citing a $16 million loss over the past decade. One should ask why the BSO has been losing audiences over the years. Is it because people are unwilling to travel to a dangerous city for some classical music? Or is it because local fans have moved outside the city? Or perhaps because orchestras in general have been losing popularity over the years?

 

Instead of asking these questions, the HB 1404, passed earlier this year, authorizes the state to simply hand out additional $3.2 million to the BSO over the next two years.

 

There are so many problems with throwing taxpayer money at the BSO without demanding more accountability and tackling the fundamental problems that the city and the BSO are facing.

 

First, there is the problem of moral hazard. The BSO has lost around $1.6 million each year, despite receiving more than $20 million in state aid over the past decade. The state also provided $100 million for the Strathmore in Bethesda, where the BSO is the main tenant.

 

The idea that the state will come to its rescue has discouraged the BSO from addressing its structural inefficiencies. As it turns out, BSO musicians continued to enjoy 9 weeks of paid vacations and increasingly costly health benefits during times of financial hardship.

 

Taxpayers should not be on the hook for these irresponsible expenses. 

 

Second, Maryland cannot afford to bail out organizations that are not self-sufficient. The state, just like the BSO, faces a pessimistic budget outlook for the years ahead, projecting a structural deficit of $1.5 billion by fiscal 2024.

 

Even if the state had plenty of money to spare, however, there is no doubt that a city struggling with skyrocketing murder rates and failing schools have needs for state aid that come before funding culture and recreation.   

 

Third, there is no way to justify forcing Maryland’s taxpayers to subsidize the recreation of a very specific type of audience: classical music lovers. Under the existing scheme, Baltimore’s poor taxpayers end up subsidizing the activities of the generally better educated and wealthier upper middle-class audiences who tend to be more typical consumers of classical music. In addition, why is Maryland government picking the BSO as a winner over other recreational venues that are just as, if not more, beneficial for Maryland’s economy?

 

If the BSO is valuable enough to the state to merit special treatment, subsidies should not be necessary in the first place. But the reality is, the BSO has been losing money because its concerts only had an average attendance rate of less than 60 percent over the last three years. The vast majority of large foundations and wealthy citizens approached by the BSO for donations were not interested in investing. Frustrated, several of the BSO’s best musicians ended up leaving for other orchestras.

 

Given all these caveats, the more commonsense approach to help the BSO would be for Maryland government and Baltimore City to help address some of the core reasons behind BSO’s financial struggle over the years.

 

While nothing can be done about the fact that the popularity of classical concerts may have declined over the years, if Baltimore City can bring in more residents and businesses by lowering its property tax rates and also attract more concertgoers by lowering the city’s high crime rate, it will naturally become easier for the BSO to increase its audience base.

 

With more tourists, jobs and disposable income, Baltimore residents will have time and money to enjoy classical music, which would help the BSO to increase its ticket revenue. With more people and wealth, it would become easier for the BSO to attract more private donors. However, it should be left to the BSO to leverage this opportunity to revive itself. The BSO must improve its business model through innovative approaches to attract more audiences and decrease costs.

 

Ultimately, the greatest assistance Maryland government can offer the BSO is by helping it become self-sufficient in the long term, and not offering money for survival in the short run.