Government Relations

Not So Special, Not So Dedicated Arts Tax

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A cautionary tale for the “Beware Politicians Bearing Gifts” file. (A pretty thin file given the relationship between politics and the arts.)

Four years ago, I posted about how the State of New Jersey was trying to ignore a law that guaranteed funding to the arts from hotel tax revenue. This was a particularly unwise move given that cutting funding to the arts meant the tax would go away entirely thanks to a poison pill provision.

In other words, for want of cutting a couple million from arts funding, the state would lose many more millions when the hotel tax disappeared due to making the cut.

The government received a lot of criticism for contemplating the move, including from a former governor.

Now there is a new administration and a new attitude. When the tax was created, it was contemplated that the funding for the arts would increase as tax revenue increased. The problem is where the previous administration had viewed the $28 million minimum funding limit as the floor they wanted to demolish, the current administration sees it as the ceiling they are happy to bolster.

Instead of providing more funding as more revenue comes in to the dedicated tax, the state is raking the excess revenue into the general coffers.

“…the tax generated more than $1.1 billion for state and local governments since it was introduced 10 years ago, but only $184 million has gone to the New Jersey State Council on the Arts, the largest of the four agencies that should have received a far bigger chunk of the money.

[…]

It’s a cautionary tale for supporters of a separate bill that would take a slice of the sales tax to fund the state’s open space and historic preservation programs, which have run out of money. It might look great on paper, but without the political will behind it, the promises are hollow.”

This story makes me wonder about the fate of the funds collected as a result of the tax increase that was passed in Minnesota to provide support to wildlife areas and the arts.

I know the Minnesota legislature has been asking if the Minneapolis Orchestra has betrayed the public trust by accepting funding but not providing concerts. My hope is that it is motivated by an appreciation of the arts and a desire to see them produced rather than a desire to scrap the funding.

Can anyone from Minnesota give me a sense of how things have worked out?

Before There Was Rocco..

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…there was Anthony Radich.

Looking back at some of my old entries, I was surprised to find I had forgotten that five years before Rocco Landesman uttered his infamous blasphemy/straight talk about there being too much art, Western Arts Federation Executive Director, Anthony Radich had suggested killing off arts organizations.

So let’s euthanize some arts organizations. Let’s pull some of the nonprofit arts programming off the arts-production line and free up funding and talent for reallocation to stronger efforts–especially to new efforts tilted toward engaging the public. Let’s return to the concept of offering seed money for organizations that, over a period of years, need to attract enough of an audience and develop enough of a stable financial base to survive and not structure them to live eternally on the dole. Let’s find a way to extinguish those very large groups that are out of audience-building momentum and running on inertia. Instead of locking arts funders into a cycle of limited choices, let’s free up some venture capital for new arts efforts that share the arts in new ways with the public.

I guess everybody takes note of the director of the National Endowment for the Arts, but forgets about what the head of an equally important regional arts service organization says.

As with Rocco, the issue is much more nuanced than at first glance. I wrote about it and there was some good discussion on Andrew Taylor’s blog at the time.

Info You Can Use: NP Orgs Exist In Shadow Universe (Great Resource Guides Too)

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My Twitter feed delivered me two great resources for arts professionals on the same day this week.

The first came courtesy of Sydney Arts Management Advisory Group. I guess I should have known that when they talked about a guide developed for “WA Artists” they meant Western Australia and not Washington State. In my defense, they link to a lot of prominent U.S. arts sources (like me!).

The guide they shared, Amplifier: The Arts Business Guide for Creative People, from Propel Youth Arts, is really one of the best guides for creatives just starting out that I have come across. If you cut out the resource guide at the end of the booklet, 98% of it is applicable to a creative anywhere.

The guide is really accessible with fun illustrations and interviews that will probably make you want to move to Western Australia. It also walks you through all sorts of planning processes with questions and checklists: project management, business plans, identifying markets, goal setting, evaluation, finances & funding, legal, product, pricing, place and promotion.

It doesn’t just deal with performance, but also tackles film, visual art and publishing, delves into copyright law (which appears almost identical to U.S. law) and licenses.

The guide also spends a few pages on risk assessment and insurance for events which is something I have never really seen in similar guides even though it is very important.

The second resource comes from the Wallace Foundation. This one is more geared toward arts groups rather than individuals starting out and is focused on administrative issues like finances, board oversight and administration.

You may have seen some tweets about it but not followed the link. It is really worth stopping by to take a look.

Some of the guides and case studies are what you might expect “Building Stronger Nonprofits Through Better Financial Management” and How to Talk About Finances So Non-Financial Folks Will Listen.

But there are some with more intriguing titles like: “Efficiency” and “Not-for-Profit” Can Go Hand in Hand,  and The Looking-Glass World of Nonprofit Money: Managing in For-Profits’ Shadow Universe.  

The latter is described as” Especially useful overview for board members with little exposure to the unique nature of finance in a nonprofit context.” I  never really thought of NP orgs as operating in a shadow universe. Sounds so cool! Does that mean Rocco Landesman was the dark emperor or something while he headed the National Endowment for the Arts?

There are also proposals like “The Nonprofit Starvation Cycle” which advocate for changes in the way foundations support non-profits.

The part of this resource I have seldom seen in other places was a whole section of five articles, including a podcast, on figuring out the True Cost of programs. They specifically have a calculator for figuring out the cost of after school programs, but following the steps outlined in some of the other articles can help reveal truths like social media isn’t actually free.

I haven’t read through everything in the guide, but I am definitely going to bookmark it for future reference.

Want To Pursue A Creative Career?..Uhm, The Brits Will Help You Decide

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Finder of interesting things, Thomas Cott, tweeted a link to an article about creative apprenticeships in the UK. While unpaid non profit internships are not against the law in the U.S., they have been something of a hot topic in England.

According to the article Cott linked to, the creation of the National Skills Academy is not a reaction to the internship scandal, but given that many businesses in creative industries heavily depend on unpaid labor, it does provide a response to that problem. Essentially, it allows young people to gain the skills they lack in professional settings and provide organizations with some labor without running afoul the law.

I am not quite sure how this is arranged. Apprentices are entitled to a special apprenticeship minimum wage. Whether the company using their labor pays it directly or indirectly, or the training program does isn’t clear to me.

What interested me was some of the things the National Skills Academy was doing to provide training. Whereas getting a degree in the arts is increasingly seen as not marketable in the U.S. given rising tuition, the National Skills Academy has done their research and are working with creative industries to answer the demand. They have even built a training and rehearsal facility.

We’ve encouraged a shift in education away from courses of over-supply towards training that fulfils a clear demand from the industry. In the theatre and live music sectors, our members told us they needed new backstage staff more than anything else (and they weren’t at all worried about performers). But lots of colleges were offering over-subscribed performing arts courses first and foremost. We had a look at this, and our education members now deliver quality backstage courses approved by industry and popular with students.

Our members also felt the live events, music and theatre industries needed somewhere to train and rehearse. Together we made the case for a £13m investment to build an industry-spec new building for industry and students, The Backstage Centre.

The situation in the UK isn’t that much different than in the U.S. in terms of what is needed to do the job. One section of the site observes that even though 58% of those working in creativity industries have degrees, they ironically valued experience over education because there are gaps in the education people are receiving.

They also observe, as in the U.S., unpaid internships are not a viable option for people who don’t have the money to support themselves while they work. They strive to shift that dynamic.

But that’s not what we’re being told – a quarter of employers we asked said they were experiencing skills gaps and shortages in key areas. As a result, we’ve seen a rapid growth in unpaid internships – now much longer than the traditional three-month placement.

We’re concerned that there’s a disconnect here between employers and the education sector supplying them with staff. We’ve also seen that unpaid work is unsustainable for anyone without private support.

The overall picture shows under-employment, unemployment and unfair access.

Changing recruitment culture

Our membership network led the campaign to encourage a change in recruitment culture. In 2009, we created the first specialist apprenticeship frameworks, to supply employers with staff who have the specialist skills they want.

There are whole sections on associated websites devoted to helping young people make decisions about what creative careers they might want to pursue and what opportunities are out there. There are two sites devoted specifically to theatre work and another to music.

It is not just online resources, they have a series of in person sessions around the UK young people can attend. Some are targeted at students as young as 13. Many of them are fully booked.

So if you are like me, your first reaction is probably something along the lines of “Why don’t we have something like this in the U.S.?” I think even with all the talk about how the arts councils are continuing to be defunded in the U.K. and how cultural organizations may have to look to the U.S. model of garnering private support for their work, there exists an immense fundamental gap between how arts and culture are valued in the respective countries.

This program was only created five years ago and it already has 1,800 apprentices and the Backstage Centre built. Now admittedly, it remains to be seen whether there are jobs for all these people. My suspicion is that they expect/hope some of these people to end up creating their own companies and to help drive a shift to a creative economy.