By JAMES FINK
jfink@bizjournals.com | 716-541-1611

A combination of things helped the Buffalo Philharmonic Orchestra finish its 2010-11 fiscal year with a $46,000 surplus, including an upswing in ticket sales.

The BPO marked its 75th anniversary and played to 172,955 people at 119 concerts. They ranged from traditional classics performances at Kleinhans Music Hall to shows at Artpark and at high schools under outreach efforts to younger patrons and students. Attendance for youth and education concerts topped 40,000, accoriding to Dan Hart, executive director.

For the fiscal year ended Aug. 31, the BPO reported revenues of $9.9 million, according to the audited financial report released Jan. 25. In 2009-10, the orchestra reported slightly over $10 million in revenues during the 2009-2010 season.

Hart attributed the drop-off to a decrease in public funding and the one-time revenues generated from the spring 2010 concert tour in Florida.

The good news could be found in several areas, including:

• Earned income rose 4.2 percent from $3.5 million to $3.65 million. Earned income comes primarily from ticket sales and contract fees.

• In terms of total attendance, there was a 3.9 percent increase.

• Contributed revenue went up 6.9 percent from $4.02 million to $4.3 million.

• The BPO's endowment fund grew from $23.8 million to $25.9 million; interest from the fund was a flat $1.03 million. The BPO can only access interest from its investments.

• Thanks to concessions with musicians and staff, operating expenses rose just 1 percent from $9.8 million to $9.9 million.

The orchestra is grappling with decreases in government support and diminishing corporate dollars, however.

Corporate support dropped 20 percent in the past three years, from $900,000 to $700,000.

"The recession gave some of these companies no choice," Hart said.

Total government support fell 30 percent this year to slightly more than $1 million. Government support equals approximately 10 percent of the orchestra's bottom line.

"My fear is that we may have lost these dollars forever," Hart said. "We are struggling with these declines and we will do our best to find creative ways to fill the gap."

Still, halfway through the current fiscal year, Hart said he sees some positive trends.

Subscription sales hit an all-time high, topping $1.75 million. Last year, the BPO had $1.6 million in such sales.

It also reported a 7.5 percent increase in subscribers to 6,532.

A Baird Foundation challenge grant raised $125,000 in new or increased donations, surpassing the $100,000 goal set by the foundation. Some 358 people took part in the challenge grant, donating sums ranging from $5 to $20,000.

Three weekends of holiday concerts in December brought 15,221 people to Kleinhans Music Hall and generated revenues of $522,418.

"Overall we are pleased, although there are areas of concern," Hart said.