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Theater struggles with debt
[NOTE: I stumbled on The State several years ago and was amazed at how original it was. It had how some survived the "carve it into tiny theaters" era and was mostly intact. Here's hoping it can survive....and here's a Flickr link to some photos. RJD]

By Steve Ferris | The Herald-Standard, March 6, 2008

Uniontown, PA
Normally at this time of year, the State Theatre Center for the Arts is preparing for the last few performances of the season and is busy booking musicals, plays and concerts for the upcoming season that begins in the fall.

The last two shows of the current season and some movies will go on, but members of the board of directors said the curtain could close for good after the season unless a fund raising effort lifts the 85-year-old theater out of a nearly $500,000 debt.

Jeremy Burnworth said he discovered the debt while reviewing financial statements after he became treasurer of the Greater Uniontown Heritage Consortium, which owns the theater, last September.

"We were very surprised to find out we were in debt that much," said Robin Semans, first vice president of the board.

Semans and Burnworth discussed the theater's financial dilemma in a meeting Wednesday with members of the Herald-Standard editorial board.

They said the theater has about $200,000 in bills payable and its $300,000 line of credit from a local bank has been maxed out.

Burnworth said the line of credit has been particularly harmful, noting that that interest on the account is $2,000 a month.

"That needs to go away," Burnworth said.

Burnworth said the board intends to pay all money it owes businesses, meet with the businesses to discuss the theater's financial situation and is establishing internal review practices to monitor future operations.

"The future is going to be great if we can get through this," Burnworth said.

Semans said a local accounting firm is conducting an audit to find out how the theater got in such a deep hole and the results will be made public.

"I don't really know how it got to this point. I hope the audit clears things up," Semans said.

"Yes, there are unanswered questions," Burnworth said.

The board has been running the theater since Marty Schiff resigned from the executive director's job in January.

Burnworth said the executive director's position has not been filled, one part-time employee was laid off, overtime was cut back and advertising has been curtailed to save money.

"We're in survival mode right now," he said.

The goal now is to try to raise enough money to get the 2008-09 season under way.

Plan A was a private effort undertaken by a few board members to "quietly" raise money, but the $35,000 they raised is not nearly enough, Burnworth said, noting the board decided to go public with its plight in hopes that local residents would come to the rescue of the historic theater.

He said the average cost of booking a show is $23,000 and three people have committed to sponsoring one show each in the coming season.

The theater normally begins booking acts in January for the next season, which begins in October and runs through April or May.

"We have to decide within the next two weeks whether to book next season," Burnworth said. "We are out of time. We're never giving up, but we're realistic."

He said board members have been explaining the financial bind when they ask sponsors, businesses and individuals to contribute to the theater.

The theater relies on donors and revenue from renting the facility because ticket sales don't cover the cost of the shows, Burnworth said.

A good turnout for a show is 800 to 900 people even though the theater has 1,400 seats, he said.

"Culture sources have to rely on private donors," Burnworth said.

Semans said show sponsorships keep ticket prices low.

Many of the acts that perform at the State Theatre also perform in Pittsburgh, but tickets cost less at the State Theatre, Semans said. She added that local residents also pay less in parking and gas for seeing the shows.

Anybody wishing to donate may call the theater at 724-439-1360.

Originally published online here: http://www.heraldstandard.com/site/news.cfm?newsid=19363901&BRD=2280&PAG=461&dept_id=480247&rfi=6

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