The Dunedin Symphony Orchestra is one of many arts organisations under threat from a drop in lottery funding.
Board president Brendan Gray yesterday thanked councillors for encouraging the performing arts, saying it was pleased with the plan to increase funding for grants and the council's arts strategy.
However, he said it was concerned about its council grant having been cut by $7000, which added to the $6000 it paid to rent the Dunedin Town Hall left it $13,000 out of pocket.
"We can't go on absorbing losses like that year after year.''
It would be asking for more funds through the council's grants process this year.
In response to questions from Cr Aaron Hawkins, he said the orchestra, like other arts organisations, faced having its funding from Creative New Zealand cut by 10%, which would equate to $30,000, because of reduced funding from lottery grants.
Orchestra general manager Philippa Harris said it would find out the timing and extent of cuts when Creative New Zealand set its budget it July.
