GHastly55 wrote:
Matthew McCallum said:

The economy is bad

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I don't actually have to SAY it, do I, Matthew???   ;-)

Ah, but we are talking about a production year budget, which usually gets set months, sometimes years, in advance. The organization I work for uses a two-year budget process and operates under a 10-year plan, so the dollars I'm spending today were actually budgeted for in May 2011. We're starting our next budget development cycle in January 2013, and even in an improving economy we're going to have to cut roughly $1 million dollars out of the $50 million budget.

I think it is reasonable to conclude that "the economy is improving" and "the economy is bad" are not mutually exclusive. Indeed, one could accurately say "Despite improvements, the economy remains bad."

From a business standpoint, 2013 presents so many unknowns from a tax liability and healthcare implementation cost point of view that I'm certain the 2013 Masterworks production year budget was exceptionally conservative. As more of the unknowns become known I could see the budget pressures relaxing a bit and we could be back to two books announced a month before next summer.

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