NEWS
Overture funding in need of encore
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by Courtney Johnson
Tuesday, January 23, 2007
City officials are expressing concern after the Overture Center experienced heavy financial losses last month.
The Overture Center trust fund lost approximately $557,000 in value during the second half of December, and construction and debt service costs totaled more than the trust’s income.
The fund is intended to build a long-term money reserve for the performing arts center and to help pay for the original construction costs.
“They need strong programming that will sell the seats, and they need a good fundraising program that will bring in additional revenues to help support the operations and build a relationship with the community,” said George Twigg, spokesperson for Mayor Dave Cieslewicz.
But Nancy Gores, interim communications director for the Overture Center, said a lack of ticket sales is not part of the problem — most performing arts centers have revenues supported 60 percent by ticket sales, while the Overture Center is supported 80 percent by ticket sales.
“To supplement ticket sales, you need a good fundraising and development plan and sponsorship plan, and we don’t have that right now,” Gores said. “Overall, nationally, ticket sales are soft — we are vying for discretionary income, and that requires a strong economy.”
Gores said she is optimistic that the new president of the Overture Center, Tom Carto, will be able to help the center gain valuable fundraising and sponsorship money. Carto, who took over the position last Monday, has experience fundraising for arts organizations.
“We don’t think it’s a crisis situation, the way it’s been reported,” Gores said. “I think there is a crisis perception without maybe a full understanding of where things are at.”
Local news sources, such as the Wisconsin State Journal, have discussed the possibility of Madison taxpayers being called on to help bail the Overture Center out of its debt.
Ald. Mike Verveer, District 4, agrees that a bailout is unlikely because the center has been able to balance its budget, and has had no issue with projected revenue and expenditures.
“Those concerns are real,” Verveer said. “I’m not trying to diminish the validity of the concerns related to the Overture’s financial health, but I am confident that through aggressive fundraising and belt-tightening we will be able to be successful down the road.”
The city of Madison is providing the Overture Center with more than $1.6 million for 2007, according to Deb Simon, budget and audit manager for the city comptroller’s office. Although Cieslewicz said a taxpayer bailout beyond that amount is not impossible, it is unlikely.
“The mayor thinks [the current amount] is pretty sufficient for a city level of support,” Twigg said.
The Overture Center for the Arts was built in part with a $205 million donation from businessman W. Jerome Frautschi, who established the Overture Foundation. The center’s final phase of construction was completed fall of last year, and the building now houses Overture Hall, the Madison Museum of Contemporary Art, four art galleries, a playhouse and the Capitol Theater.
“I just can’t imagine that our community would allow Frautschi’s generosity to go down the toilet, in effect,” Verveer said.
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