Alliance for the Arts Releases White Paper, "The Recession & the Arts"

Very smart of Alliance for the Arts to jump into the fragmenting fiscal fray by issuing a report -- the full title of it is "The Recession and the Arts: The Impact of the Economic Downturn on Nonprofit Cultural Groups in New York City."

Because of the depth of the crisis we're in, let me skip to the basic findings of the report:

In December 2008, the Alliance for the Arts fielded a survey to nonprofit cultural organizations in New York City about the impact of the recent economic downturn. The responses came from a crosssection of organizations in all boroughs—reflecting the diversity of nonprofit cultural organizations in terms of audience, discipline and budget size.

The survey results capture a snapshot of the current climate of the cultural industry. Of the 100 responding organizations, 78 percent indicate that they have reduced their budgets or plan to do so; 50 percent plan to lay off employees; 69 percent will defer new hires and 45 percent plan to cancel or postpone programs within the next year.

Of the 18 organizations with budgets less than $100,000, 67 percent have reduced their budgets or plan to do so—some up to as much as 75 percent. The majority of these organizations are based in Manhattan (56 percent), 17 percent are in Brooklyn, 11 percent are in Staten Island, 11 percent are in Queens and 6 percent are in The Bronx. Of those organizations outside Manhattan, 75 percent have reduced their budgets or plan to do so; 50 percent plan to lay off employees as well as defer new
hires.

Eighty-one percent of the 32 organizations with budgets between $100,000 and $1 million report that they have reduced their budgets or plan to do so. One fourth of them plan to lay off employees and 69 percent plan to defer new hires within the next year. Forty-one percent plan to cancel or postpone programming and 47 percent plan to postpone moves or capital improvements. Sixty-three percent of these organizations are located in Manhattan, 16 percent are in Staten Island, 9 percent are in Brooklyn, 6 percent are in The Bronx and 6 percent are in Queens.

Seventy-nine percent of organizations with budgets between $1 million and $10 million plan to cut their budgets up to 30 percent over the next year. Among these organizations planning to cut their budgets, 67 percent are in Manhattan, 15 percent are in The Bronx, 11 percent are in Brooklyn and 7 percent are in Staten Island. Fifty-six percent of organizations within this budget range plan to lay off employees and 27 percent plan to defer new hires within the next year. Forty-one percent plan to postpone or cancel programming within the year.

Organizations with budgets over $10 million were similarly affected, with 80 percent indicating that they have reduced their budget or plan to do so—some up to 53 percent. Of the 15 largest organizations, 53 percent plan to lay off employees and another 80 percent plan to defer new hires within the year. Although 53 percent plan to cancel or postpone programming within the year, all of the organizations within this budget range intend to proceed with their planned fundraising schedule. Of the organizations planning moves or capital improvements, 36 percent anticipate postponing their plans. Sixty percent of the largest organizations are located in Manhattan; The Bronx, Brooklyn and Queens each account for 13 percent.

My question: What does the president of Alliance for the Arts, Randall Bourscheidt (who I am told does not hate me, though he's never contacted me as I was told he would), propose that the community do about the situation? Is it really as simple as saying to the mayor or the governor, "Look how you're hurting us!" and will the usual sob stories really fly this time? Isn't this really a fiscal impact question? In my new essay published in the Fox Forum, Do We Need a Secretary of the Arts?, I deal with this issue at the federal level from what I think might be an out-of-the-box point of view. I'm quite certain Mr. Bourscheidt will think me spiritually possessed by some kind of scary Jacksonian Democrat zeal if and when he should read my essay, but surely, as terrific as all of this information is (and it is), isn't it true that we need new ideas to move us forward? Why aren't we asking him and his colleagues, where are the new models? When will our esteemed and understandably respected arts advocates going to do more than blithely aggregate, publish and analyze data, or sit on committees that present recommendations to the president but provide an equal or greater amount of time formulating, articulating and, indeed, demonstrating new ways of dealing with these horrendous and cyclical issues? Isn't that what they're paid to do?

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Alliance for the Arts Releases New Study: "Culture Builds New York"

Into the dismaying sea of relentless bad news for the arts comes an interesting and -- dare we say it -- encouraging new report from Alliance for the Arts. Culture Builds New York: The Economic Impact of Capital Construction at New York City's Cultural Institutions, 2003-2010 examines the many construction projects initiated by New York City's creative sector over the last few years from the key viewpoints of job creation and economic impact. And while I strongly suspect that the organization's president, Randall Bourscheidt, very actively doesn't like me (I should ask the Alliance's always-terrific director of marketing and product management, Joe Harrell, about that), I'm reprinting the press release I received yesterday because the numbers and the analysis is essential reading for arts advocates. True, many of these numbers were first crunched in 2007 and thus may prove somewhat out of date. The greater point is how essential construction projects have been to the sector, regardless of the vagaries of the economic climate.

While my posting this information doesn't mean I am stepping away from my post in which I seriously question whether arts advocates begging Governor Paterson not to cut funding for NYSCA is the smartest way to handle our economic downturn, I do feel that maintaining funding for construction projects is arguably more essential to the sector's survival.

I heartily encourage you to please download the entire report (21 pages) by clicking here.

And now, the press release (with thanks again for Joe Harrell!):

Building Projects at Cultural Institutions Buoy New York City Economy

Construction spending and related development undertaken by cultural institutions in New York City will have an economic impact of $2.2 billion and create 2,500 full-time equivalent jobs per year in the period from 2006 to 2010, according to CULTURE BUILDS NEW YORK: The Economic Impact of Capital Construction at New York City's Cultural Institutions, 2003-2010, a report released today by the Alliance for the Arts.

The Alliance for the Arts, a nonprofit advocacy and research organization, also determined that construction activity will result in $670 million in construction-related wages over the five-year period from 2006 to 2010 and generate an estimated $28.5 million in local taxes for New York City.

"With ambitious projects like the redevelopment of Lincoln Center, the expansion of the Queens Museum of Art, the renovation of El Museo del Barrio and the expansion of Museum of the City of New York going forward, our cultural institutions are playing an especially important role in today's construction market as well as making a major investment in the future of New York," said Randall Bourscheidt, president of the Alliance for the Arts.

The study also reports that 94 projects completed from 2003 to 2005 had an impact of $1.85 billion and generated 3,460 jobs, $560 million in wages and $40.6 million in City taxes.

"Arts and culture continues to be a pillar of economic strength in New York City and a leading driver of activity for the building industry," said Richard Anderson, president of the New York Building Congress, a co-sponsor of the study. As this report demonstrates, the City's cultural institutions will be a major source of construction spending and employment over the next two years, which will help counteract the current downturn and ensure that these institutions are poised to accommodate future growth as the regional and world economies rebound."

The report, prepared by consulting economists Rosemary Scanlon and Catherine Lanier, cites examples of new construction already completed, including the New Museum on the Bowery, the Brooklyn Children's Museum in Central Brooklyn and the Museum of Arts and Design on Columbus Circle. The list of projects currently under construction includes the billion-dollar renovation and expansion of Lincoln Center, a new visitors and education center at the Weeksville Preservation Society in Brooklyn, a new parking garage at the New York Botanical Garden, façade restoration at the Public Theater, renovations at the New-York Historical Society and the exterior restoration of Clemente Soto Velez Cultural Center.

The report cites the critical importance of capital funding from the City of New York. The Department of Cultural Affairs currently has $1 billion planned for capital construction at more than 200 organizations through 2013, making it the single largest funder of this activity. City investment also helps attract private-sector funding for capital projects at cultural institutions.

"Over the past seven years, we have significantly expanded City funding for cultural capital projects, supporting an increasingly diverse array of organizations across the five boroughs," said Kate D. Levin, Commissioner of Cultural Affairs. "Our efforts have catalyzed major private-sector support. During tough economic times, this public-private partnership becomes even more important, helping to strengthen our economy, provide employment, boost tourism, and improve the quality of life in our neighborhoods."

Despite the importance of local government funding, this building activity is primarily being paid for by private contributions, by individual philanthropists as well as corporations and foundations. This combination of private contributions--much of it already pledged or received before projects begin construction--and the City's capital support, makes it possible for most of these projects to go forward despite the economic downturn. This is good news for neighborhood stability and the city's ability to attract cultural tourists.

"This decade and the 1990s will be seen as a period of major expansion of New York's cultural infrastructure, with benefits not only during the construction phase but for years to come," said Mr. Bourscheidt.

In addition to the NY Building Congress, the report was made possible by funding from the Empire State Development Corporation, the New York City Economic Development Corporation, the Port Authority of New York & New Jersey, American Express, the JPMorgan Chase Foundation, the Robert Sterling Clark Foundation, the New York Community Trust, F.J. Sciame Construction, Time Warner, Consolidated Edison, the Loews Foundation, Christie's and Martin E. Segal.

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Alliance for the Arts to Obama: Public Works Is Fine, But Include the Arts

I'd like to give major kudos to Randall Bourscheidt, president of the Alliance for the Arts, who is making the most of his opportunity to blog for the Huffington Post with a series of essays on the relationship between the arts and the economy. I covered his first post here, which I felt deeply was a good first stab but a little long on rhetoric and a little short on specific policy prescriptions. Now Bourscheidt has penned another piece for the HuffPo and things are starting to percolate in the right direction. Let me quote from this new essay:

Hopes are soaring that President-elect Obama's new public works program will help generate the jobs that have been catastrophically lost in recent months. His plans awaken memories of the New Deal, when President Roosevelt led an unprecedented investment in the nation's infrastructure....

....This time, Mr. Obama and the new Congress should include cultural institutions in the infrastructure program. They have a unique power to generate jobs, stabilize communities, build the tourist industry and stimulate the creative economy that our technology-driven world increasingly depends on....

....In the 2003-2005 period, New York cultural institutions spent $1.4 billion on capital construction, generating more than 10,000 jobs over three years.

It's time now for a campaign called The Arts Rebuild America.

So smart, and I totally agree. But here's the thing (and I say this knowing full well that Randy will be read this): the question is not whether "The Arts Rebuild America" is a good/inspiring slogan, but when and to what degree the Alliance, in tandem with other organizations, will put this into action. Frankly, I hope Randy calls me about this directly, as I think it is a great idea whose time is arriving rapidly. And it really does need to be an action item, a moment for getting up and making phone calls and doing something -- not just relying on President-Elect Obama to buy into the idea in order to make it happen.

Indeed, if the arts community can put "The Arts Rebuild America" into action, it would, in fact, honor the Obama-style of community organizing that is his creed.

Meanwhile, read Randy's essay in its entirety and let's all get moving. We haven't a day to waste.

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The Huffington Post Awakens to Discover the Arts

Well, that's rather unfair -- here and there, I have found The Huffington Post has its batallion of bloggers covering different arts topics. Followers of this blog, for example, will recall my noisy tete a tete with playwright and Brothers & Sisters creator Jon Robin Baitz after he wrote a blog post on the SAG strike.

But the essay up on the HuffPo right now by Randall Bourscheidt, president of the Alliance for the Arts, is pretty interesting, if lean on specifics. It deals with what will happen to arts policy on a national scale in the wake of Obama's election -- which is to say that for the last, oh, 20 years, we've had very little arts policy on a national scale.

Read:

In the US we have a unique system in which private giving takes the lead in supporting the arts but government support provides a seal of honor by the public sector. Although funding for the National Endowment for the Arts is small compared to the massive investment many countries make in their own cultural life, it is symbolically and practically important, especially to smaller cultural institutions spread throughout the land....

The Obama campaign statement on the arts offered hope in another area. He supported the idea of cultural diplomacy, with eased visa restrictions on foreign artists and a great effort to send artists around the world representing the US....

I would have liked more specific policy prescriptions or expectations from Bourscheidt, who is a great champion of the arts (even if he passed over me once for a nifty position at the Alliance). I really think this is the moment to spell it out in detail, to be bold in vision as well as demands and expectations. Nostrums or near-nostrums no longer cut it. We need more essays like this one from Bourscheidt but we need them longer and stronger, and we need them now.

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Alliance for the Arts Puts Two New Websites on Beta Test

What a day for press releases! Got this interesting one from Alliance for the Arts, which is Launching NYC-ARTS.org and NYCKidsArts.org in beta test. Should be exciting once this is on its way.

Alliance for the Arts Launches NYC-ARTS.org and NYCkidsARTS.org in Beta Testing

The Alliance for the Arts has launched the beta versions of its new NYC-ARTS.org and NYCkidsARTS.org, the most complete, customizable and dynamic source of information on New York’s cultural institutions. Curated by people who know the scene, NYC ARTS provides an inside view of New York’s cultural life.

The NYC ARTS Web sites have launched during beta testing. The public is invited to participate in testing by submitting feedback through the “Send your feedback” button at the bottom of every page.

NYC-ARTS.org
Locals and tourists will find in-depth information on cultural organizations and their events, programs and activities.

NYCkidsARTS.org
Educators and parents will find the most comprehensive information on cultural activities for children, including arts education programs that support teaching in many subject areas.

Alliance for the Arts Research Center
The research tools in the Alliance for the Arts Research Center will provide easy access to accurate quantitative data on the nonprofit cultural sector in New York City.

In the increasingly competitive entertainment environment, NYC ARTS and NYCkidsARTS ensure that New York City’s arts organizations stand out in the clutter of choices. The NYC ARTS brand is a powerful promotional identity both for large cultural institutions that command high visibility and smaller groups with less promotional muscle. Unlike commercial cultural listings that have a narrow focus, these sites give all arts groups equal opportunity to promote their programs and attract visitors. The power of the NYC ARTS sites extends beyond the walls of the Web sites with weekly e-mail updates, interest-specific RSS feeds and connections to social networking sites such as Facebook and Twitter.

Cultural consumers need a strong brand to help them navigate the rich and diverse resources of New York City’s five boroughs. Through recommendations, curated collections and other features such as “Events ending soon,” the sites will be proactive in directing individuals to cultural opportunities they might otherwise overlook.

The City of New York is the major underwriter of NYC ARTS. Because the system supports hundreds of cultural organizations and their events in all five of the city’s boroughs—in effect shoring up the cultural infrastructure—the City of New York has invested $1.5 million in capital dollars for the first release of the system. It has also pledged additional enhancement funds for future releases of NYC ARTS.

New York’s philanthropic community has joined the City as investors in this project. Local foundations and corporations supported the research and development of NYC ARTS.

About the Alliance for the Arts
The Alliance for the Arts serves the entire cultural community through research and advocacy and serves the public through cultural guides and calendars. Through its NYC ARTS guides and calendars, the Alliance promotes New York cultural institutions. Through its research studies highlighting the importance of the arts to the economy and to education, the Alliance helps government and civic leaders understand the importance of cultural organizations to New York City. More information on the Alliance’s work can be found at the new http://www.allianceforarts.org/.

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President-Elect Obama and the Arts

Courtesy of an email blast today from the nonprofit Alliance for the Arts, here is a summary of President-Elect (WOW!) Obama's position on the arts.

In response to the Candidate's Survey on National Arts Policy issued by the Alliance in February 2008, then-candidate Barack Obama's campaign indicated that he would support increased funding for the National Endowment for the Arts, the Institute of Museum and Library Services, the National Endowment for the Humanities, as well as promote cultural diplomacy and reinvest in arts education. Below are excerpts from his campaign's statement.

Obama on NEA Funding
Barack Obama would look at a variety of funding mechanisms to support increased funding for the NEA, the support of which enriches schools and neighborhoods all across the nation and helps to promote the economic development of countless communities.

Obama on Cultural Exchange
American artists, performers and thinkers – representing our values and ideals – can inspire people both at home and all over the world. Through efforts like that of the United States Information Agency, America’s cultural leaders were deployed around the world during the Cold War as artistic ambassadors and helped win the war of ideas by demonstrating to the world the promise of America. Artists can be utilized again to help us win the war of ideas against Islamic extremism. Unfortunately, our resources for cultural diplomacy are at their lowest level in a decade. Barack Obama will work to reverse this trend and improve and expand public-private partnerships to expand cultural and arts exchanges throughout the world.

Obama on Arts Education
To remain competitive in the global economy, America needs to reinvigorate the kind of creativity and innovation that has made this country great. To do so, we must nourish our children’s creative skills. In addition to giving our children the science and math skills they need to compete in the new global context, we should also encourage the ability to think creatively that comes from a meaningful arts education.

To support greater arts education, Barack Obama will expand public/private partnerships between schools and arts organizations and increase resources for the U.S. Department of Education’s Arts Education Model Development and Dissemination Grants, which develop public/private partnerships between schools and arts organizations. Obama will also engage the foundation and corporate community to increase support for public/private partnerships. Barack Obama supports the creation of an “Artists Corps” of young artists trained to work in low-income schools and their communities... As president, Barack Obama will use the bully pulpit and the example he will set in the White House to promote the importance of arts and arts education in America.

Obama on Foreign Arts
Opening America’s doors to students and professional artists provides the kind of two-way cultural understanding that can break down the barriers that feed hatred and fear. As America tightened visa restrictions after 9/11, the world’s most talented students and artists, who used to come here, went elsewhere. Barack Obama will streamline the visa process to return America to its rightful place as the world’s top destination for artists and art students.

To read the president-elect's official platform on arts policy, click here.

ArtsVote, a national initiative run by Americans for the Arts was developed to encourage new support for the arts and arts education during the 2008 presidential campaign. Click here to read additional policy position statements from Mr. Obama's campaign on the ArtsVote Web site.

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Arts Advocacy Update IV

Here are links and assorted commentary following the receipt of my weekly email blast from the Cultural Policy Listserv.

But first, I implore all of you to read -- or at least glance at the main points of -- this very compelling new study from Americans for the Arts. VERY IMPORTANT STUFF ABOUT NEW YORK.

And now...

Bill would cut movie studio tax credit
The Advocate (Baton Rouge, LA), 6/13/2007
"Building a movie studio in Louisiana is about to get far less lucrative for projects not already under way, if a bill before the Legislature becomes law. House Bill 936, awaiting a vote on the House floor as soon as today, would keep a 40 percent tax credit in place for movie studio construction. But future projects would be capped at $25 million in total tax credits. . . . The changes were proposed by the state’s Department of Economic Development after concerns were raised by the Division of Administration. The state’s financial officers found a potential $1.5 billion loss in tax revenue if the uncapped 40 percent tax credit stayed in place."
Never mind that your state lost half a million people because of a hurricane and your economy is in the crapper.

Conn. lawmakers build on success of tax credit for film industry
Newsday - AP, 6/17/2007
"State officials believe a new tax credit program, which kicked in on July 1, 2006, is fueling the burgeoning interest for filming movies in Connecticut. And they hope a new bill will lure digital media and sound recording industries while encouraging everything from a sound studio to post-production facilities to build a permanent home in the state. . . .
Louisana, please meet Connecticut. Connecticut, please meet...oh, you know.

Rockefeller Foundation launches arts fund
Crain's New York Business, 6/13/2007
"The Rockefeller Foundation announced a new fund on Wednesday to support and promote cultural innovation in the city. The New York City Cultural Innovation Fund will issue awards annually from a $2.5 million pool, with individual grants ranging from $50,000 to $250,000. The fund will support initiatives that premier artistic works, engage in cultural issues, partner community-based organizations with the private sector, and that address limitations on the city's cultural expansion."
That sound you hear is the Off-Off-Broadway community screaming, "Gimme! Gimme! I want! I want!"

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