DAVID GREENE, HOST:

Many of the nation's orchestras are hoping 2013 can mark a new beginning. Orchestras were once seemingly untouchable, but their financial problems piled up in 2012. There were strikes, lock-outs and bankruptcies. Minnesota Public Radio's Euan Kerr reports on the orchestras as they look to the future.

EUAN KERR, BYLINE: There's been little seasonal cheer in Minnesota's orchestra community.

UNIDENTIFIED MAN #1: (Singing) Hey, music lover, don't let them break the band. Minnesota orchestra is the best band in the land.

KERR: Protests erupted after managements at both the Minnesota Orchestra and the Saint Paul Chamber Orchestra locked out their musicians when they rejected contracts which cut salaries by tens of thousands of dollars and reduced the size of the orchestras. They're not alone, says Minnesota Orchestra President Michael Henson.

MICHAEL HENSON: Philadelphia, Detroit, Indianapolis, Atlanta, Pittsburgh, St. Louis.

KERR: Both the Minnesota Orchestra and the Saint Paul Chamber Orchestra face large deficits, caused by declining revenues, increased expenses and the lingering effects of the poor economy. So Henson says his ensemble needs to cut $6 million a year from its budget, and that means cutting musicians' salaries.

HENSON: That is an approach that most orchestras have sought to avoid over the years because, for the most part, they have sought to avoid the conflict that that produces.

KERR: Stanford economist Robert J. Flanagan published "The Perilous Life of Symphony Orchestras," a book based on his study of the finances of more than 60 top orchestras. He resists using the term tipping point, but he says the funding model for orchestras has always been problematic, and the economic downturn brought things to a head. Many communities established orchestras in the 1960s and '70s aided by funding from the National Endowment for the Arts and the philanthropic support of foundations and individuals. However, costs increased, and orchestras have become more dependent on those donations to keep ticket prices affordable. Flanagan says many orchestra boards also wanted to be generous to the musicians in the orchestras they loved.

ROBERT J. FLANAGAN: And, of course, there are two signatures on every collective bargaining agreement, so some of it reflects what the musicians push for, but some of it reflects what management seeks to sign off on. And it appears that over the years, many collective bargaining agreements have provided for more expense than the communities in which the symphonies are located can afford.

KERR: And this, according to Detroit Symphony music director Leonard Slatkin, leaves an important question to be answered by each community.

LEONARD SLATKIN: How are we going to balance the incredible skill of these musicians, the need for music in the different communities, and what is a very difficult time in this country economically?

KERR: However, there are some who say it's not all bleak in the orchestra world. Bruce Ridge leads ICSOM, the International Conference of Symphony and Opera Musicians. He plays double bass with the South Carolina Symphony. He points to the New Jersey Symphony, the New York Philharmonic and the Houston Symphony, which have all had extremely successful fundraising years. He says the National Symphony in Washington, D.C. just negotiated a four-year contract, which included raises for musicians.

BRUCE RIDGE: The question really to be asked is not why some orchestras have had difficulty, but rather: How are the other orchestras that are doing so well, how have they succeeded?

KERR: That's a question which can only be answered one orchestra at a time. For NPR News, I'm Euan Kerr in St Paul.

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