Innovative Ways to Support the Arts

I had intended to write a fresh piece for this week's post, but in light of the news that the state budget for the Michigan Council for Arts and Cultural Affairs, which provides grants to arts & cultural organizations, had nearly $6 million cut from the grant budget, and leaves the council with $2.3 million to provide support. Also, the council's staff was reduced to just two full time employees.

So I would like to share an excerpt from an info-paper I put together several years ago and presented to the Detroit City Council for Arts Advocacy Day.

Enchanted Arrows:

Using the Arts

To Hit the Bull’s-Eye 

Of Economic Prosperity

A phrase has been used lately by both politicians and business writers, and that is “There’s no magic bullet in aiding economic recovery.”  I beg to differ with that opinion, I believe the arts can be an enchanted arrow and if we shoot enough arrows that hit the target, we will yield significant results.

Other cities, states and countries utilize a variety of means to support the arts.  In recent years some decisions were put before voters not only locally but around the country.  Some measures were successful, others failed by narrow margins.  

Some examples presently employed or under consideration to support the arts include:

In Texas, “State of the Arts” license plates have generated $3 million over an extended period.

The town of Allen, Texas directs revenue from fees for use of cellular phone antennas on city water towers towards the arts.  

In Philadelphia the mayor is urging the State Legislature to sell naming rights to the Pennsylvania Convention Center that could generate $3 to $5 million annually for the arts.

In Charlotte, North Carolina a task force in search of ways to finance new museums proposed a 5% percent increase in a car rental tax and a 25 cent fee on weekday parking.

In Colorado voters approved a 12 year extension on a 1 cent tax on a purchase of $10, which had previously raised over $400 million for the arts during a 16 year period.

In Seattle, which has a tax similar to the hotel occupancy tax approved by Wayne County voters to help finance the stadiums, the King County tax also went to fund their stadium and was recently extended.  After a 10 year period beginning in 2003 a portion of the tax was to be dedicated to the arts and the first year brought in $2.7 million.

The State of New Jersey also passed a hotel-occupancy tax in 2003 which in its first year raised $22 million for the arts.

In Virginia cultural organizations are lobbying the General Assembly to approve State issuance of $85.6 million in bonds to cover capital projects at museums, theaters and performing arts centers.  The supporters claim the projects will bring more than enough in tax revenue to cover the bonds.

The United Kingdom has a reliable source of arts funding and that is a cut of the national lottery revenues.  Roughly converting pounds into dollars, in the past 10 years $4 billion has gone to support the arts.  When you look at the annual outlay per capita, it comes to $16 per person versus the US federal budget for the National Endowment for the Arts which amounts to 54 cents per person.  However, we do out- perform the UK in philanthropy and corporate support for the arts.

I had an op-ed in the Detroit News on how the city and state should consider investing in tourism as a means for job creation and economic growth.  I suggested the arts tax be combined with several other bills and be designated a “Tourism and Economic Development Initiative.” 

It should be noted that the Mayor of Philadelphia and the Governor of Pennsylvania are contemplating a similar fee on sporting events and also movie tickets to support the arts which they think could raise anywhere from $50 – $100 million annually.

A quote from the Executive Director of a theatre services organization in San Francisco that addresses the issue of planning for the future.

“This is a moment of financial crisis for city government but it is also a moment for opportunity.  The San Francisco arts community has been galvanized by the developments of the past year.  The time is right to begin a process of strategically planning for the future.  A task force from the arts community should be created to engage city agencies and political leaders in evaluating our programs and structures – emphasizing their strengths and addressing any weakness – in an effort to maximize the impact of the city’s investment and nourish our vital arts community.”