Arts center continues deficit, but says ticket sales improving

By: PAUL EAKINS - Staff Writer | Tuesday, August 28, 2007 10:45 PM PDT

ESCONDIDO -- Low ticket sales at Escondido's arts center caused a budget deficit of more than $400,000 in the last fiscal year, arts center officials said Tuesday, but they say they have a plan to turn things around.

Vicky Basehore, president of the California Center for the Arts, Escondido, said ticket sales were higher than the previous year, but weren't high enough to make the center break even.

Basehore announced earlier this month that the center was expecting a budget deficit of about $400,000 for the 2006-07 fiscal year that ended June 30. No other details were available until a meeting of the center's board of trustees on Tuesday, when the center announced that the deficit was $419,554.

According to Basehore's financial report, the center's $6.6 million budget wound up with a deficit even though costs were less than anticipated by about $150,000.

The center expected earnings from ticket sales and fees, theater rentals, and other services to bring in $5.6 million. But those sales fell short by $645,476, the report says.

Low ticket sales accounted for almost all of the shortfall, according to the report. The center had planned for almost $2.3 million in ticket sales, but instead earned $1.6 million, the report says.

The arts center has struggled with ticket sales since it opened in 1994, and the 2006-07 fiscal year marks the center's 11th operating deficit. The center's 2006-07 season included performances by country singer LeAnn Rimes, the San Diego Symphony, comedian Bob Newhart, the Moscow Festival Ballet and jazzman Wynton Marsalis.

Basehore said that despite the shortfall, ticket sales were up $336,000, or 26 percent, over the 2005-06 season.

"We are making progress in that area," Basehore said, adding that there is "still much work ahead of us."

To improve ticket sales, arts center officials have formed a new marketing team.

Michael Wagman, the new marketing director, said Tuesday that an improved, more user-friendly Web site was among his strategies.

"The minimum is to break even," Wagman said. "And obviously, the goal is to make a profit."

Basehore also reported that theater rentals, educational programs and the center's museum all earned more money than expected, totaling $137,000 in extra funds. Money from contributions totaled $1.06 million, which was $51,840 more than had been anticipated.

But that money wasn't enough to make up for the loss in ticket sales and in some other revenue areas.

The center's continued financial struggles have created debate among city leaders over whether the arts center should be expected -- or ever was intended -- to stand on its own financially. The city built the $81 million arts center, along with City Hall next door, through a bond measure approved by voters. The city contributes a significant amount of the center's revenue each year.

In 2006-07, the city gave $2.4 million in cash and other donations, including computers. Under a new agreement between the city and the arts center that went into effect July 1, Escondido is obligated to cover the center's budget deficits.

Arts center supporters say expecting the nonprofit center to pay for itself is unrealistic. The arts center provides an important cultural and entertainment resource that attracts out-of-town visitors, is used by schools and other organizations, and promotes the arts, supporters say.

The arts center has a 1,500-seat concert hall, a 400-seat theater, a museum and a conference center. According to arts center officials, the center's theaters were rented for 86 special events and 165 performances in 2006-07, and it also was used for five educational programs, including 21 performances in the center's Student Performance Series.

City Council members have expressed mixed views on the arts center's financial situation, although most have expressed concern about its repeated deficits.

Mayor Lori Holt Pfeiler has said the city always will need to help fund the arts center, agreeing with others who say it won't ever be able to pay for itself. Councilman Ed Gallo has said he thinks that the center eventually will be able to cover its own costs while operating as a nonprofit, and Councilwoman Marie Waldron recently suggested that an outside company should take over the center to help it turn a profit.

Basehore said the arts center's $6.5 million budget for the 2007-08 fiscal year is expected to be presented to the City Council on Sept. 19.

-- Contact staff writer Paul Eakins at (760) 740-5420 or peakins@nctimes.com.

Advertisement

25 comment(s)[-]Go to Top

Escondeeter wrote on Aug 28, 2007 9:36 PM:"Break even"? The Art Center's idea of breaking even is only losing the two million dollars a year the city gives it to lose. Nowhere in the real world would a business that counts a gift as revenue and gets free utilities claim to break even when sales are two million bucks less than expenses. It's accounting only the White Rabbit could appreciate.

bryan wrote on Aug 28, 2007 9:52 PM:Sell it to private corporation. The government can run anything efficiently look at our schools. sell it or bulldoze it.

Jocko wrote on Aug 28, 2007 11:06 PM:Their intentions are the best--trying to bring a little culture to this area; but face it, we just don't have the right audience that would support such activities. Now, if they could develop and book an event like "Battle of the Marriachi Bands", it would go over well.

Bring wrote on Aug 29, 2007 6:50 AM:I love going to plays, concerts etc. but 99% of the time this venue has nothing that appeals to me and my family. No wonder it is always in the red. Culture isn't all about some old ancient has been singing or some group from a place I never heard of singing their native songs. Try something more hip, get citizens to help come up with a better list of activites. Otherwise what a waste of a beautiful facility.

JJ wrote on Aug 29, 2007 7:41 AM:What a waste of city money. Eleven years now with a deficit? Are you kidding me? During these last 11yrs, the city could of hired a dozen cops and firefighters instead of pouring money in the bottomless pit.

Lots of issues wrote on Aug 29, 2007 8:09 AM:Much of the programming at the Center is politically correct. If the Center was run to make money as opposed to providing all sorts of different entertainment, much which isn't of interest to citizens of the area, then it could at least breakeven without City assistance. Just look the programming and as yourself if that is what you would program if you ran the center. I would guess that Country and Western, individual stars and classical music can make money. Let's say that's true, then program those types of shows and forget the rest - 10 guys banging on pots and pans may be remarkable but not marketable. Whatever fills seats is what we need to have. Another problem is that large companies don't provide really significant sponsorship of the Arts Center. Now if we were in La Jolla we would get lots of dollars from banks and other institutions. Here we get a few bucks, even though there is lot of wealth in this area - it is a matter of image. Leading the County in homeless beds and illegal aliens doesn't help. These large organizations only pay lip service to this area. If the Mayor and the local business organizations provided real leadership at least some of this image problem could be overcome. This same image problem inhibits the sort of large gifts which could get the City out of the long-term financial drain from the Center. Again, people want to be identified with areas which have good images – with winners. The current image of the City and its likely future image based on marginal, high-density developments and a lack of focus on improving the quality of life of its legal citizens, are unlikely to improve. This essentially eliminates the future prospects for sponsorship or large donations.

quinnie wrote on Aug 29, 2007 8:38 AM:more equity shows means better productions and more shows. the arts center will profit if they start putting money in to the programs they offer. they will also be able to p[a their employees more than the average sign spinner. the arts center could start by embracing and recognizing escondido's HUGE glbt community and make alliances with other PAC's in the southland. we can get what OCPAC gets or else we'll be seeing another condo complex go up where the arts center used to be

Alan wrote on Aug 29, 2007 10:09 AM:Why not use the Art Center for something else. The City needs to get rid of this drain on their resources and use the money to clean up Escondido. After living elsewhere for a while we came back and after seeing how awful Escondido has gotten, we will live somewhere else in North County. Too much trash, prostitution, gangs, graffiti, etc.

Jocko is Right wrote on Aug 29, 2007 10:10 AM:On August 26, 2007 the NCT published a story titled "School districts to focus on improving reading skills." The story stated "In Escondido Union, a district with one of the largest English-language learner populations in the county at about 46 percent" which indicates nearly half of the residents of Escondido don't even speak the language used in most of the performances. When the demographics change so will attendance at Arts Center events.

Floyd wrote on Aug 29, 2007 10:44 AM:'We may lose a little money on every ticket sold, but we're making it up in VOLUME!'

Longtime Escondido resident wrote on Aug 29, 2007 10:51 AM:Interesting to see that the only profitable years for the Center were the first couple or three - when Oleg Lobanov was President. Then the City upset the large donors and many of them baled out. Supporting Lobanov might have shown a different picture now.

idea wrote on Aug 29, 2007 11:16 AM:Why not book Comedy acts? Such as stand-up comedy?

Sybil the Soothsayer wrote on Aug 29, 2007 11:27 AM:And the spin keeps on spinning. How fortunate for us that Basehore points out that they sold more tickets this season than last -- but what was the goal and why was last season's deficit smaller than the current one? How can it be spun that an organization go from a $43k deficit to one that is more than $400k IN A YEAR? It's also interesting to note that while there's controversy over the Palomar-Pomerado deal with Lathaniel Tomlinson, Escondido residents should also note how the person responsible for programming is the highest paid staffer ($62k in the last year) under the president. And how about ccae's fundraisers last season - BOTH lost money yet the person responsible for those is also one of the highest paid staff members. The City of Escondido should be seeking some accountability instead of rewarding people for these mistakes with such salaries!

I saw Arlo Guthrie there last year wrote on Aug 29, 2007 12:51 PM:The performance was terrific. The inside of the Arts Center was beautiful. I had a great time until the show was over and I had to go back into the flith hole known as Escondido again. I didn't see very many people stick around after the concert. They walked (fast) to their cars and drove ELSEWHERE for a nightcap. Whne I left the Center there were TONS of wanna-be looking gangbangers walking around, with cars zooming by absolutely blasting hip hop/rap. I would have rather seen Mr. Guthrie perform elsewhere, but it was a case of the desire to see the performer outweighing the desire to stay away from the venue performed in. I would guess that many others patrons felt that way as well. Clean up the city, get rid of the illegals and gangs, and replace the current Center administration with individuals who do not have a sucking-at-the-taxpayer's-teat-forever-with-no-accountability mentality, and you might just be in the black with some dignity to boot.

Lokal Yokal wrote on Aug 29, 2007 1:38 PM:I support the Center, but they HAVE TO MARKET BETTER. Their marketing is TERRIBLE. The budget problems are a direct result of this. And $400K deficit is not the real number - it's actually $400K + $137K (unexpected income) + $150K (unexpected lower costs) = $687K, and that is a LOT of money.

Heady wrote on Aug 29, 2007 2:21 PM:Listen to "I saw Arlo..."!

PJ to I saw Arlo wrote on Aug 29, 2007 5:47 PM:Sing it loud and sing it proud! Well stated!

Arts Center needs a face lift wrote on Aug 29, 2007 6:08 PM:The facility looks tired, there are no restaurants of quality in or outside the facility, the entrance is hard to find and the venue rents out to schools and other events (both my kids have performed on the stage), so it's not really looked at as worth the price of a $50 ticket. Intimate theater locations like the Cygnet can get away with hole in the wall space because you come expecting an intimate theater setting and nothing more. The Performing Arts Center needs to have presence and gloss and make one think of having a grand night out on the town. Hire a consultant and Botox the joint!

mjv wrote on Aug 29, 2007 6:19 PM:Try filling the seats by selling tickets on the day of performance at a discount. Even London has a kiosk to offer leftover seating. There should never be an empty seat - and yes, a drama and comedy or two would be fun. We need to build an appreciative audience in Escondido. I've never noticed any gang people around as I have departed from the Center at night. Don't give up on one thing that is very special in Escondido. And if we can support athletic fields and parks we can support the Center for the Arts.

A pig is wrote on Aug 29, 2007 6:26 PM:still a pig even when wearing lipstick.

More ticket sales wrote on Aug 29, 2007 7:56 PM:What did someone go there to see something boring? Snoozefest is all I see on the agenda. Comedy, Music that lots of people listen to not just a handful, and plays worth going to see. I drove downtown to see a play but couldn't find one to go to closer to home. Rather visit the movie theater. Wake up Arts people, get with it and stop losing money.

Teri wrote on Aug 29, 2007 8:11 PM:The revolving door of marketing personnel have always been blamed for losses. You can’t market what people don’t want to see and who decides what is seen? Not usually the marketing department! So now, you have a season booked by an overpaid employee who still has his job and has booked yet another season of the same genre of shows as the last losing season. And, who hired and supports this employee - A loser who has been mismanaging the funds of the center for well over a decade. OPEN YOUR EYES ESCONDIDO!!!!!

connie wrote on Aug 29, 2007 8:46 PM:I do not understand what is going on at the center. people like the romero’s always sold out but you never see them any more. and how can they keep losing so much money when they get so much ($2.4 million from the city this past year?) Don’t they have someone there who can take care of the business better than that? what is happening are they getting sued or paying too much out? No normal business could survive that way. someone should look into this!!

Hector wrote on Aug 29, 2007 9:08 PM:I hope that when the budget is presented that the city council asks some tough questions. There is no transparency with this art center as to how it has been run, and why it is operated in a money-losing fashion. In any other business, someone would be fired. Why aren't these people's jobs on the line?

Al wrote on Aug 29, 2007 9:30 PM:With nearly a 55% Hispanic population, EscoMexcio CAN NOT support this venue. Be realistic folks! Tickets sell for $35-$100 each- just too expensive for a town with a zillion taco shops, pink registration stinkered cars and the lowest median houeshold income in north county.

First name only. Comments including last names, contact addresses, email addresses or phone numbers will be deleted. All comments are screened before they appear online, so please keep them brief. Comments reflect the views of those commenting and not necessarily those of the North County Times or its staff writers. Click here to view additional comment policies.

Submit Comment[-]

(optional)
   

Advertisement

Videos