Good morning! My name is Alan Jordan; I am the … Budgets... · Good morning! My name is Alan Jordan; I am the Executive Director for the Vermont Symphony Orchestra. Thank you for

Good morning! My name is Alan Jordan; I am the Executive Director for the

Vermont Symphony Orchestra. Thank you for providing me with the opportunity to

report on your Vermont Symphony Orchestra.

Last year, I related to you the story of one Susi Learmonth, of East Corinth. She

served as a regional trustee from the Upper Valley, and was instrumental, rather

single-handedly, in ensuring that SymphonyKids educational outreach activities

would take place every year in eastern Orange County schools. As expected, Susi

ended her fight with cancer on August 31st last year, having enjoyed a remarkable

life of nearly 88 years. The Thetford Hill church was packed beyond capacity for

Susi’s service, complete with lots of music, including a VSO string trio. The Susi

Learmonth SymphonyKids Upper Valley Fund, a permanent fund within the VSO’s

endowment, stood at nearly $80,000 as of December 31, 2013, providing enough

funding to completely underwrite ten Musicians-in-the-School performances

annually. Now, there is a legacy!

I will share with you another story. Our Summer Festival Tour brings the Vermont

Symphony to idyllic outdoor settings across our beautiful state in late June and early

July each year. Without question, it is our most popular offering, drawing audiences

totaling more than 10,000. It is a celebration of music, family, food, drink, Vermont

beauty, and Americana. It is also a significant money-maker for the Orchestra—that

is, when Mother Nature cooperates. In 2013, only three of our eight concerts were

able to be held outside. Two of those moved indoors were not because of rain

falling that day, but because parking lots or concert fields were too soggy. The tour,

with a memorable program of music from the Great American Songbook (possibly

the best program never heard by many), resulted in a revenue shortfall of $90,000—

in month eleven of our fiscal year, when little correction could be made. In my

fifteen years at the VSO, this was the worst situation ever! Our conductor dubbed it

the Sweaty High School Gymnasium tour. There is a silver lining: following the

tour, we sent a letter out to our 1,200 donors asking them to consider making

additional gifts to help us cover this shortfall. Astoundingly, 130 households made

gifts totaling nearly $36,000, including three gifts of $5,000 each! This is a

testament to the strength of our organization, and to the value Vermonters place on

the VSO.

The materials sent to you in advance include reference to our financial results of last

season: with a $56,000 operating loss last year, we now manage an accumulated

deficit of $417,000. Please note: this is not an external debt. The deficit represents

on paper the amount of money the VSO has brought in net of its operating

expenditures over its 79-year lifetime. How do we cover this gap? Much of it is

through cash flow management, with help from a line of credit to accommodate our

annual ebb and flow cash cycle. Perspective is also required: while what the public

sees is the Symphony’s concert operations across Vermont, we also undertake

occasional special projects and oversee a sizeable endowment. Indeed, that

$417,000 accumulated operating deficit represents only 8-½% of our total assets of

almost $4.9 million. Finally—and not to get too technical—GAAP (or Generally

Accepted Accounting Principals) require non-profits to count investment losses as

unrestricted, or operating, losses; while investment gains are considered temporarily

restricted. Although the reasoning for this is understandable, it can create a

misleading presumption. Our FY13 audit shows that $417,000 operating deficit, but

there is also a temporarily restricted surplus in excess of $1 million. Please rest

assured that the VSO is on firm financial ground.

You will note on our presentation that we budget for an operating surplus, and we

will continue that strategy as a way to slowly reduce our deficit over time. As the

chart shows, this deficit has contracted and expanded during the last 15 years.

Before the recession, we were getting close to eliminating it entirely, and we started

making progress again before the last two years. Some in our organization question

what level of priority we place on eliminating the deficit: while it adds another

complication, it does not prevent us from fulfilling our mission. As an organization,

we are committed to reducing and eliminating the deficit; however, we will not

substantially alter or curtail our operations to hasten that outcome.

I would like to share one clarification to our presentation: the map that shows over

300 community partners during the 2010-2012 period includes not only schools, but

other non-profits, social service and religious organizations, and businesses that

work with the VSO to present great music in their communities.

Vermont Symphony Orchestra Community Partners: The VSO partners with more than

300 schools, colleges and universities, cultural and social service organizations, faith-based

groups, government entities, corporations, and foundations.

Vermont Symphony Orchestra PartnersBetween 2010-12, the VSO’s more than 300 partners included the following cultural and social service organizations, faith-based

groups, government entities, corporations/foundations, colleges/universities, and schools:

CULTURAL ORGANIZATIONS

Barre Opera House

Brattleboro Museum and Art Center, Inc.

Burlington City Arts

Champlain Valley Exposition

Chandler Music Hall

Flynn Center for the Performing Arts

Haskell Opera House

Henry Sheldon Museum, The

Hildene

Paramount Center, Inc.

Pentangle Council on the Arts

Shelburne Farms

Shelburne Museum

Stowe Performing Arts

Tunbridge World's Fair

Vergennes Opera House

Vermont Youth Orchestra Association

SOCIAL SERVICE ORGANIZATIONS

Boys and Girls Club of Brandon

Castleton Community Center

Chittenden Emergency Food Shelf

Our Place Drop In Center

Pownal Headstart

Rutland Food Shelf

FAITH-BASED GROUPS

Brandon Congregational Church

First Congregational Church

Grace Church & Little Lambs

Salisbury Congregational Church

Warren United Church

White Church, The

GOVERNMENT ENTITIES

City of Bellows Falls

South Burlington Library

Town of Stowe

Vermont State House

CORPORATIONS OR FOUNDATIONS

Gardener's Supply

Heritage Flight Aviation

Higher Ground

Jay Peak Resort

Lodge at Shelburne Bay Senior Living Community

Mountain Top Inn

New England Federal Credit Union

Oak Hill Children's Center

Quechee Lakes Landowners Association

Seven Days

Sugarbush Resort

Suicide Six Ski Area

Three Stallion Inn

Trapp Family Lodge

Vermont Festivals, LLC

Wake Robin

Windham Foundation

Woodstock Inn.

COLLEGES & UNIVERSITIES

Castleton State College

Johnson State College

Lakefield College School

Lyndon State College

Middlebury College

St. Michael's College

University of Vermont

SCHOOLS

Academy School

Addison Central School

Albany Community School

Albert Bridge School

Alburgh Elementary School

Allen Brook School

Arlington Middle School

Athens/Grafton Elementary

Bakersfield Elementary

Barnard Academy

Barnet Elementary

Barre City Elementary

Barre Town Elementary

Barstow Memorial School

Barton Graded School

Beeman Elementary

Bellows Falls Central School

Bellows Falls Middle & High Schools

Bellows Free Academy Fairfax

Bellows Free Academy-St. Albans

Bennington Elementary

Benson Village School

Berkshire Elementary School

Berlin Elementary School

Bernice Ray Elementary

Bethel Elementary School

Bingham Memorial School

Bishop Marshall School

Blue Mountain Union School

Bradford Academy

Braintree Elementary

Brewster Pierce Elementary

Bridge School

Bridgewater Village School

Bridport Central School

Brighton Elementary

Bristol Elementary

Brookfield Elementary

Brookline Elementary School

Brownington Central School

Burke Town School

Burr and Burton Academy

Cabot Elementary

Calais Elementary School

Cambridge Elementary

Castleton Elementary School

Cavendish Town Elementary School

Chamberlin Elementary

Champlain College

Champlain Elementary School

Vermont Symphony Orchestra Partners (continued)

Champlain Valley Christian

Champlain Valley Union High School

Charleston Elementary

Charlotte Central School

Chelsea Elementary School

Chester-Andover Elementary

Christ the King School

Clarendon Elementary

Concord Graded School

Coventry Village School

CP Smith Elementary

Craftsbury School

Crossett Brook Middle School

Currier Memorial

Danville Elementary

Danville High School

Deerfield Elementary

Derby Elementary

Dothan Brook School

Doty Memorial School

Dover Elementary

Dummerston Elementary

E Taylor Hatton School

E. Montpelier Elementary School

Eden Central School

Edmunds Elementary/Middle School

Elm Hill Elementary

Enosburg Falls Elementary

Essex Elementary School

Essex Middle School

Fair Haven Grade School

Fairfield Center School

Fairfield Elementary

Fayston Elementary

Ferrisburgh Central School

Fisher Elementary School

Fletcher Elementary

Folsom Educational Center

Franklin Central School

Frederick Tuttle Middle School

Georgia Elementary School

Gilman Middle School

Glover Community School

Grafton/Athens Contract School

Grammar School, The

Grand Isle Elementary

Green Street

Guilford Central School

Halifax Elementary

Hardwick Elementary

Hartford High School

Hartland Elementary School

Hazen Union Middle/High School

Hiawatha Elementary

Highgate Elementary

Hinesburg Community School

Hunt Middle School

Hyde Park Elementary

Integrated Arts Academy at HO Wheeler

Irasburg Village School

Jamaica Village School

Jay/Westfield Elementary

Jericho Elementary

JFK Elementary

JJ Flynn Elementary

Johnson Elementary School

Killington Elementary School

Lake Region Union High School

Lakeview Union Elementary

Lamoille Union High School

Lawrence Barnes School

Lawrence School for Young Children

Leicester Central School

Lincoln Community School

Lothrop Elementary School

Lowell Graded School

Ludlow Elementary

Lyndon Institute

Lyndon Town School

Malletts Bay Elementary

Manchester Elementary/Middle

Marion Cross Elementary

Marlboro Elementary School

Mary Hogan Elementary

Mettawee Community School

Middletown Springs Elementary

Mid-Vermont Christian School

Miller's Run Elementary

Milton Elementary

Missisquoi Valley Union High School

Molly Stark Elementary

Monkton Central School

Montgomery Elementary School

Monument Elementary

Moretown Elementary

Morristown Elementary

Mount Abraham Union High School

Mt. Holly Elementary

N. Bennington Graded School

Neshobe Elementary School

Newbrook School

Newbury Elementary

Newport City Elementary

Newport Town School

Newton Elementary

North Country Junior High School

North Country Union High School

North Hero Elementary

Northfield Elementary

Oak Grove Elementary

Orchard Valley Waldorf School

Orleans Elementary

Orwell Village School

Ottauquechee Elementary

Peacham Elementary

Pomfret Elementary

Porter's Point School

Poultney Elementary

Pownal Elementary

Proctor Elementary School

Proctor High School

Putney Central School

Randolph Elementary School

Randolph Union High School

Renaissance School

Richford Elementary

Richmond Elementary

Richmond School

Rick Marcotte Central School

Vermont Symphony Orchestra Partners (continued)

Ripton Elementary School

Rivendell Academy

Riverside Middle School

Robinson Elementary

Rochester School

Rock Point School

Rockingham Central School

Roxbury Village School

Rumney Elementary

Rutland Intermediate School

Rutland Middle School

Rutland Northeast Primary School

Rutland Northwest Primary

Rutland Town School

S. Royalton Elementary

Salisbury Community School

Samuel Morey Elementary School

Saxtons River Elementary

Shaftsbury Elementary

Sharon Elementary

Shelburne Community School

Sheldon Elementary

Sherburne Elementary

Shoreham Elementary School

Shrewsbury Mountain School

Smilie Memorial School

South Royalton Elementary

Springfield High School

St. Albans City School

St. Albans Town School

St. Francis Xavier School

St. Johnsbury Academy

St. Johnsbury Schools

St. Mary's School

St. Paul's School

St. Pius HomeSchool

Stamford Elementary School

Stockbridge Central School

Stowe Elementary School

Stowe High School

Sudbury's Country School

Summit Street School

Sunderland Elementary

Sustainability Academy at Lawrence Barnes

Sutton Village School

Swanton Central

Thatcher Brook Elementary

Thetford Elementary

Thomas Fleming Elementary

Tinmouth Elementary School

Townshend Village School

Townshend Village School

Troy Elementary

Tunbridge Central School

Twinfield Union Elementary

Underhill Central School

Underhill ID Elementary

Union Elementary School

Union Memorial School

Union Street School

United Christian Academy

Vergennes Union Elementary School

Vergennes Union High School

Vernon Elementary School

Waits River Valley Elementary

Waitsfield Elementary School

Walden Elementary School

Wallingford Village School

Wardsboro Elementary

Warren Elementary

Washington Village School

Waterford Elementary

Waterville Elementary

Weathersfield School

Websterville Baptist Christian

Wells Village School

West Rutland Elementary

Westford Elementary

Westminster Center School

Westshire Elementary

Weybridge Elementary

Whitingham Elementary

Williamstown Elementary

Williston Central School

Winooski Middle School

Wolcott Elementary School

Woodbury Elementary School

Woodford Hollow School

Woodstock Elementary School

Woodstock Union High School

Every component of the VSO is challenged by the uncertainty of our economy.

Donors weigh the likelihood of an improved environment when deciding their gifts.

Ticket buyers defer purchasing decisions. Companies cut sponsorship budgets as a

safeguard. Foundations change giving priorities to address the latest socio-

economic and research trends. These challenges, which are felt by most non-profits,

put into question the flow of our “life-blood;” the four Rs: regular, reliable,

repeatable revenue. Our successful endowment campaign helped: we expect to

receive 10% of our funding for FY15 through our endowment draw, which is

conservatively pegged at 4% of the rolling 12-quarter average of the funds. We

should see more than $18,000 in additional funds applied to operations next year

through our endowment draw. Likewise, we rely on the annual appropriation from

the Vermont legislature to keep up with inflation and permit us to continue

subsidizing ticket prices and SymphonyKids fees—reaching more Vermonters,

regardless of their financial situation. As promised last year, every penny of the

new funds this legislature appropriated for FY14 is being used to provide free

concert tickets for families who would otherwise be unable to attend because of

financial barriers. Just at our Holiday Pops concert in December, we welcomed 370

members of the Vermont National Guard and their families to celebrate the holidays

with the VSO. Never has the regular, reliable, and repeatable support of the state

of Vermont been so precious.

A few weeks ago, at our regular Governing Board meeting held in the Pavilion

Office Building, we began a conversation that may be pivotal to the future of the

VSO. We all hear of the sensational coverage about our industry: Slate magazine

recently published a diatribe about how classical music wasn’t just dying; it was

already dead! Aging audiences are not being replaced by the next generation.

Orchestras in America are shutting down. Minneapolis nearly lost its beloved

Minnesota Orchestra due to labor turmoil that lasted fifteen months. Short-sighted

conductors, managers, and other industry officials got caught up in a silly debate

about whether or not women were fit to be conductors. Music critics have been all

but relegated to the blogosphere as commercial media replaces coverage of the fine

arts with popular culture. It can all be pretty demoralizing. Do we just give up? Or

do we give in and start programming more popular concerts, replacing Copland with

country/western and Rachmaninoff with rock and roll? Well, my quick answer is,

no. The Three Bs will always be Bach, Beethoven and Brahms, and their

masterpieces will always be able to inspire and transport listeners. Where we have

lost ground is in our public music education; more than a generation of students has

lost out on this critical, creative, thought-provoking subject. The head of our

national service organization has, perhaps, posed the right question: Is our end goal

the live concert? I certainly have my own position currently, but our Orchestra as a

whole should wrestle with this and determine what the VSO’s end goal should be.

More to come.

We are grateful for the Governor’s recommendation of a 2% increase to our line

item for 2015. With the blessing of this committee, your counterparts in the senate

and, eventually, the full legislature, the VSO intends to use these new funds to

provide more free admission to our concerts for Vermont families who could not

otherwise afford to attend.

Thank you once again for your support and your deliberation of this year’s

appropriation. I will welcome your reactions and questions, but first want to close

my presentation with another story and some music.

Two weeks ago, we celebrated the 20th Anniversary of our 100+-voice, statewide,

volunteer VSO Chorus and its founding director, Robert De Cormier, who

concluded his tenure and entered retirement at age 92. Robert selected two

masterpieces: Johannes Brahms’ German Requiem, and Chichester Psalms by

Leonard Bernstein. The latter was the first work prepared and performed by the

VSO Chorus in 1994. You are about to hear the second movement. The soloist is

Justin Murray, a 12-year old from Calais, Vermont. It is a setting of Psalm 23, “The

Lord is my shepherd, I shall not want.” This heart-wrenchingly gorgeous melody is

interrupted by the chorus men, asking “Why do the nations rage?” from Psalm 2.

The music captures the struggle between beauty and ugliness and how, almost

always, these two forces co-exist. Please enjoy.

Lee Krohn Photography, LLC