The Kennedy Center and the Washington National Opera announced Thursday that they would become “affiliate” organizations, a decision made largely to save the opera company from financial ruin. The WNO’s debt has grown to almost $12 million, according to various sources, even as its repertoire has dwindled to five performances per year. It’s annual operating budget is about $27 million.

The merger with the Kennedy Center would allow the opera to eliminate its debt while maintaining its status as a separate nonprofit with its own board of trustees. Beginning July 1, the Kennedy Center will take over business, fundraising and marketing functions, which likely will lead to job losses from the opera’s business staff.