Showing posts with label NEA. Show all posts
Showing posts with label NEA. Show all posts

Thursday, March 12, 2009

From Off-Stage Right

Jodi Schoenbrun Carter, who is (formerly?) the managing director of the Westport Country Playhouse and has previously had stints as general manager of Signature Theatre Company, the Vineyard and MCC Theater, has a blog that is -- my bad! -- new to me. It's called From Off-Stage Right, and it caught my eye this morning because -- well, thanks to a Google alert! Yes, I know that's narcissistic. Anyway, vanity isn't the point of this post.

Instead, it's to point to Jodi's recent summation of the "new models" discussion that has been rising and falling in the theatrosphere more than the lifts in Ryan Secrest's shoes. Everyone should read her post (and not because she says nice things about the CF Report). For example, here is a selection of passages from her post. It is not the whole thing.

In nonprofit theatre the debates seem to be centering for the most part around two arguments:

1) The funding model for theatre has to be changed, but how - more earned revenue, more contributed revenue, or more government support?

2) Do all the theatres in trouble really deserved to be saved: two overriding arguments are emerging - (a) there is just too many theatres or (b) is the fact that a particular theatre's "art" really wasn't that relevant, engaging or well-executed why it is in trouble in the first place, and if should it be saved?

My thoughts on funding models: First, most theatres will tell you they have an income problem and not an expense problem. I will take each and everyone one of them at their word. I have been crunching numbers for theaters since I was 16 years old - and have never been in or seen a theatre that is over-funded or that isn't cost cutting 24/7, 365 days a year....

All one has to do is look at the current $50M in the Federal Stimulus package which will barely dent covering other cuts organizations will be enduring from state and local agencies and requires that organizations be funded by the NEA in prior years. Why isn't the $50M going directly 100% to retaining jobs in the arts - wasn't that the point of the Stimulus bill. I imagine every organization funded by the NEA could use some support in maintaining staff.

And unfortunately the process of apply for any kind of government funding is inherently biased towards older and larger organizations. I worked for an arts council for 3 years; I sat in the panels; and it is simply the truth that there is a bias. (Although as a side note, I will commend the New York City Department of Cultural Affairs under Kate Levin's leadership - as the most forward thinking reformer trying to create equity).

What is the right funding model?

This isn't any new discussion, unfortunately too many organizations (and more importantly their boards) are still striving toward the 60:40 earned to contributed rule that became a health barometer for performing arts long ago and simply is not an accurate measure of success or sustainability and hasn't been for years. (history lesson via wikipedia: Baumol and Cultural Economics and Baumol's Cost Disease )....

I guess what I am saying is that we are going to have to rely on our wits, vision, and missions to solve funding problems and not rely on the government. Of course we won't let them off the hook, especially when it comes to Arts Education, capital initiatives, legislative issues regarding non-profit status, and special projects. I will be the first person in line to argue for increases, I just have more faith in the creativity of the field than any politician - even the most arts friendly….

What we have is the same problem facing many industries:
too many institutions
too many that are off-mission or doing a mediocre job of fulfilling their mission
too many that are not serving their communities because they are serving the ego of staff or board members
too many clinging to the past and therefore can't move forward
too many living beyond their means
too many trying to meet expectations they shouldn't be or don't need to be

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Friday, March 06, 2009

Can We Defend the $50M NEA Increase When It Only Protects the Status Quo?

So a variety of people, from arts leaders to bloggers to executive-director-level arts advocates, aren't thrilled with me taking issue with the $50 million NEA funding increase. I have suggested, and will continue to suggest, that while it does indeed represent a victory for the sector, it fails to address -- our arts leaders have failed to address -- the long-term fiscal issues that the nonprofit arts and humanities faces today and down the road.

Here is where the leadership-driven propaganda meets hard-numbers reality. Any number of news sources have reported the terms by which the NEA will disburse the money, but I wanted to make sure the information was logged on the CF Report for those who missed it. Notice the sentence I underlined in the third graph:

The American Recovery and Reinvestment Act provides $50 million to be distributed in direct grants to fund arts projects and activities which preserve jobs in the non-profit arts sector threatened by declines in philanthropic and other support during the current economic downturn. Forty percent of such funds will be distributed to State arts agencies and regional arts organizations and 60 percent of the funds will be competitively awarded to nonprofit organizations that meet the eligibility criteria being established for this program.

Applicants will be required to submit their applications electronically through Grants.gov, the federal government's online application system. All applicants must be registered with Grants.gov in order to submit their application. If you have already registered with Grants.gov, renew/verify your registration with Grants.gov and make sure that all of your information is current before you apply. Organizations that are not already registered should allow at least two weeks to complete this multi-step process. See the step-by-step instructions for registering.

Funding Program: Competitive Grants
One-time grants to eligible nonprofit organizations including arts organizations, local arts agencies, statewide assemblies of local arts agencies, arts service organizations, units of state or local government, and a wide range of other organizations for projects that focus on the preservation of jobs in the arts. All applicants must be previous NEA award recipients from the past four years. (Application deadline: April 2, 2009.)

Funding Program: Grants to State and Regional Arts Organizations
One-time grants to the designated 50 state and six jurisdictional arts agencies (SAAs), their six authorized regional arts organizations (RAOs), and the national service organization for SAAs and RAOs for projects that focus on the preservation of jobs in the arts. See the list of these organizations on our site. (Deadline: March 13, 2009.)

As Howard Mandel's Jazz Beyond Jazz blog noted, only those organizations that have received NEA grants during Bush's second term will qualify for the 60 percent of the $50 million that is being allocated competitively.

So what we really have is a scheme in which not being a prior grantee of the NEA means you're penalized: such groups, hundreds or thousands of them, are being instructed to sink or swim on their own. Now, perhaps the 40 percent of the funding directed to state and regional arts groups can help non-NEA grantees; I would like to think it could happen. But let's just be clear: When the defenders of the $50 million wax poetic about how indisputably vital this funding is, or when they criticize me for criticizing what I argue is a lack of long-term, creative, innovative thinking in terms of public funding for the arts and humanities, what they're also doing is endorsing the fiscal perpetuation of the sector's status quo.

Even the vaunted fiscal-impact argument I make -- a dollar of arts funding means more dollars in economic activity -- won't help much. If the NEA-funded Public Theater, for example, were to receive a sliver of this $50 million, how would it help the not-NEA-funded Stolen Chair Theatre Company via fiscal impact? It wouldn't, I believe. Behemoths win. Little guys lose. Welcome to America.

You know, we elected a president who aims to redress the economic stratification of the nation that was the hallmark and result of the Reagan, Bush and Bush presidencies (with the eight-year Clinton interregnum in between). In terms of funding for the arts and humanities, there has long been a similar fiscal divide. Do our arts leaders like it that way? They aren't saying.

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Wednesday, March 04, 2009

Ian David Moss: Backlash to the Future

At a blog that is new to me called Createquity, the blogger, Ian David Moss, has taken a few of us to task for questioning the prevailing arts-funding orthodoxy. I know I'm a prime target. And I should add that if the economy hadn't tanked as it did, if I hadn't been downsized out of my job after seven years as I was (eight including freelancing), I might not have concluded that our arts-funding philosophy and model is fundamentally flawed and must be scrubbed or radically reconstituted. Of course, it's not that my former job was predicated on arts funding; really, it was quite the opposite, working for a commercial enterprise. But it's more that I've had time to think about where the arts are as a national force, economic and otherwise. It's more that I've spent a great deal of time thinking back on this whole decade, trying to sum up where I think the arts have been, where the arts are, and where the arts can most effectively head from here.

You know, I wasn't a blogger in 2000, 2001, 2002, 2003, 2004, 2005 -- the years when I did most of the reporting, as opposed to editing and managing (which came later), that I did at Back Stage. Those were in the years in which I learned the basics of the arts funding model we have in place, and, more pertinent, how fragile that ecosystem is. During those pre-9/11 days, it was all about how the dot-com bust and the recession that followed would affect funding, and how very unprepared in so many ways the nonprofit theater world was for the very real structural and organizational and aesthetic challenges that were fast being thrust upon the sector. During the post-9/11 period, it was all about the same thing, but also how very magnified those problems suddenly were. It was also about how the arts could so easily be easily politicized, about what an endless uphill battle the arts have just to convince those elected officials who are sympathetic of its importance fiscally and societally to the nation. It was, again, how precarious the whole house of cards perpetually seems to be.

So when I take our arts leaders to task for rushing with palms open toward the Obama team, or for issuing statements recommending that the NEA should be funded at $300 million annually, it's not that I don't want the arts to be funded governmentally in the United States. Good grief, Charlie Brown, if you'd spoken to me four, six, eight, ten years ago -- at any rate, long before I blogged -- I would have been manning the rafters along with those leaders, screaming at the Obama people at the top of my lungs to do what is right as part of the stimulus package and to fund, fund, fund, fund, fund. Not just my palm would be open but also my mouth and a few other orifices geared toward arts funding. But as I say, current events have had a curious effect on me. I have had to rethink my assumptions about what is, in the long run, best for the funding of the arts and humanities in the nation. I believe we're in an economic pickle deeper and potentially more devastating than anything we've seen in three generations. I believe the yo-yo effect of up-and-down arts funding at the federal and state levels, ever-buffeted by the winds of fiscal facts, political sportsmanship and gamesmanship, is fundamentally unhealthy and destabilizing to the industry as a whole. I believe that while making the fiscal-impact argument is the most important thing arts leaders can do (I know Moss disagrees), I also believe that all sectors of the economy will someday have to take responsibility for the nation's welfare as a whole, that we will have to develop new economic models and perhaps even make, God help us, some real sacrifices.

So when I read Moss' post, called The Backlash Begins, and when in particular I read the way he rails against those questioning the status quo, it amuses me. The post makes assumptions about me, who I am, what I think. Well, to be fair, one can only respond in a post to what someone else writes in a post, and it's all part of the dialogue anyway. It makes me sad, though, because only I can fully know what journey I've been on; only I can do whatever I am capable of doing in terms of articulating the arc of that journey. And I know how much it probably upsets people like, say, Teresa Eyring of TCG, when I single them out or question the way they use their power or their influence toward the industry we all hold so dear. (And let's be clear: arts leaders are as devoted to promulgating their power and influence as to defending and addressing the needs of their constituents, for their work is fundamentally political in nature.) I write what I write and say as I believe because I believe that while I may not win friends (or jobs at TCG, clearly), I can stand up for the work on stage, for the art form, that I place second to none in cherishing.

Moss begins his post by writing:

Sure enough, the ink hardly dried on the American Recovery and Reinvestment Act of 2009 before the predictable chorus of complaints could be heard regarding the inclusion therein of $50 million worth of support for the National Endowment for the Arts. Following a week of Republican mockery on the subject, one might have expected the bulk of these disapproving murmurs to come from the right. Yet as it turns out, in time-honored liberal tradition, the loudest critics of all are much closer to home.

Well, I actually consider it a compliment to be lumped with this group. Republicans are, um, not exactly known for deviating well from policy orthodoxy (file under Steele, Michael or Limbaugh, Rush). Yet I don't view expressions of concern or criticism as tantamount to complaining. What I have been trying to do -- and what Moss is unwilling to acknowledge -- is move the discussion past the idea of another $50 million for the NEA, or even $300 million annually for the NEA, to a larger discussion about how we can best fund the arts and humanities and whether the notion of "best" can or should be limited to direct federal and state appropriations.

And yes, I did raise the prospect that a $50 million increase -- or any attention paid to the arts by the Obama Administration -- will give the right a tool with which they can unify their own troops. Not even because the GOP hates the arts or arts funding, but because the arts are easy for them to demonize, because they have a long history of doing so (file under Flanagan, Hallie) and because haven't much else going for them right now politically.

Later, Moss writes:
But the notion that this somehow doesn't represent a victory for the arts community is one that I just don’t get. What, exactly, is the glorious alternative? Yes, the NEA represents a tiny fraction of support for the arts in this country (0.3%, to be exact). But as of a couple of weeks ago, it’s one of the only arts funding bodies in the country, and almost certainly the largest, that is actually increasing its level of support in 2009. Including the stimulus appropriation, this year's NEA payout is the highest in its history. Now, as Jacobs says, much of that new money is going to offset cuts in state arts budgets, and only partially at that. But that certainly doesn’t make it a “zero-sum game.” It's not like the states are just taking money from the arts and using it as an excuse to shuffle it around to other parts of the budget, as Jacobs seems to imply. States are hemorrhaging money right now and as a result, cuts are happening everywhere. I've said it before and I'll say it again: for the purposes of stimulus, a job saved is just as good as a job created. The NEA money will save jobs, period.

Aside from the sarcasm of a phrase like "glorious alternative" (if I had used it, I'm sure people in the theatrosphere would have rolled their eyes), the question isn't whether the $50 million NEA increase represents a victory for the arts community; of course it is. For me, the question is, again, whether we are simultaneously looking beyond that appropriation at the larger scope of arts and humanities funding. Also, Moss want to rethink the phrase "one of the only arts funding bodies in the country, and almost certainly the largest," as that excludes foundations, corporate philanthropy and private giving. (The size of their current philanthropy, of course, is rapidly set to change.)

Let me add that most of the rationale for NEA funding isn't predicated on actual dollar amounts spent as their impact in the multiples of dollars. So let's say the NEA spends a dollar -- it creates four, five, or six dollars worth of growth and fiscal activity in the arts. That's easy stuff; we all, I think, understand this. What is less reported is the way it buttresses the work of the 56 state arts agencies, which do much of the day-to-day heavy lifting of arts and humanities funding in the nation. So I do understand how $50 million translates into positive vibes for the community. However, when Moss says that I implied that "states are just taking money from the arts and using it as an excuse to shuffle it around to other parts of the budget," that's misleading. I said it was a zero-sum game based on this post, which Moss does not to link to, and which is based on reporting from various publications and quotes from, among others, Bill Ivey, the former head of the NEA.

One last point on this topic. While it may be true that "a job saved is just as good as a job created" (if the job pays the same, a point Moss leaves unaddressed), and while it may be true that the "NEA money will save jobs," the real question is one of quantification. For if it is true -- and empirically provable -- that 14,000 jobs in the arts will be "saved" out of the 200,000-plus that are being lost as a result of this recession (Moss correctly attributes these statistics to Americans for the Arts), would $50 million, then, not represent weak ROI at best? What about the other 180,000-200,000 people? That's like saving 100 people on the Titanic while 1,000 people die and calling it a miracle.

Later, Moss writes:
As for Jacobs, he seems in love with this “long-term sustainable solution to arts funding” idea, since he mentions it in just about every other post. I'd like to think of myself as an arts advocate, and so I trust he won't mind my taking umbrage at his characterization of us as “pathetic paupers” and lacking "vision." (As an aside, later on Jacobs hilariously claims to "honor those who worked so hard to make that point [that the arts make good fiscal policy]." Yeah, that language certainly makes one feel "honored.")

Sigh. Look, I'm in love with the idea that I should have a job. I'm in love with the idea that we should have no national deficit or debt. I'm in love with the idea that my American brothers and sisters in uniform should come home from a war in Iraq that was created on the basis of a big, fat lie. I'm in love with the idea that everyone might learn to be kind to everyone else, and yes, that includes me. I'm in love with the idea that the nation can unify itself around common sense, left-of-center political ideas. Now, it's not that I'm in love with a "long-term sustainable solution to arts funding" so much as, once again, wanting to move us past the idea that our current funding philosophy is the best possible one that we can devise. (If Moss feels it's perfect, that's his right.) And, by the way, I consider myself an arts advocate, too. My degree is in the theatre and I've done plenty of no-money/slow-money theater in my time, and I've had two jobs and worked overnight shifts and struggled and had successes and failures and I still love the arts and I still plan to devote my life to it, so how about we not get all proprietary over what constitutes arts advocacy, ok? And yes, I feel it's possible for me to state that people are working hard to make the case for arts funding to political powerbrokers, we can also push them to think innovatively about our current model. It isn't about being hilarious, as Moss writes, though I'm glad I offered him such mighty mirth. It's about doing what an advocate does -- pushing for something better than the status quo, for fostering dialogue even if it should prove testy and difficult.

Moss then writes:
Jacobs argues, in a column I linked to a while back, that the annual NEA appropriations should be converted into a real endowment--you know, the kind that invests in the capital markets. This idea isn't totally without merit, but there's one rather gigantic problem with it. You remember how I said earlier that the NEA is one of the only arts funders out there right now that is increasing its funding levels? That's because, in case you haven't heard, capital markets are kind of in the toilet right now. At this moment, arts organizations are being hit from all sides: their own endowments are shrinking, the assets of the foundations and individuals that support them are shrinking, earned income is going down because people have less money, and state governments are cutting back because of reduced tax revenue. In such an environment, the federal government is the only entity in the country that has the power to step in and do something to stop the bleeding -- that's the whole macroeconomic argument for the stimulus in the first place. In other words, the NEA is an important diversifying funding stream for the arts, one of the few that can be countercyclical to the general economy. Put all of its money in stocks and bonds, and you lose that crucial differentiation.

Well, Moss can win on points, but not on philosophy. When the market is down this much, I think everyone breathes a sigh of relief that we didn't let George Bush put the Social Security Trust Fund into the market. But here's the thing: If he read my post, he knows, again, that I've argued for the public/private endowment idea equally to shield the arts and humanities from being politicized, something which remains a very real danger and which will always be a very real danger so long as Congress has the ability to fund or not fund the arts and humanities at a federal level in the U.S. Moss seems to imply that simply by creating a Secretary of the Arts that we can prevent such politicization, that somehow such a position will become a part of the overall governmental infrastructure. I don't think this is naive. I think this hands more unifying force to the right at precisely the moment we have the ball and can run with it. I also think categorizing the NEA as "an important diversifying funding stream for the arts, one of the few that can be countercyclical to the general economy" is misleading. Unlike the banking system, which turned to the government as the savior of last resort, Moss would have us believe that the arts would not exist, or would be incalculably decimated, without the extra NEA funding. If things are that dire -- and they're not terrible, to be sure -- how does $50 million radically change any of that? My recommendation, noted on various posts, is that Congress should fund the NEA to the tune of quite a few billions and launch it as a public/private enterprise with a board composed of equal numbers of Republicans and Democrats. If we're going to have something like the NEA, could it be better considered as a kind of sacred national trust and not a "diversifying funding stream"? I don't even understand that term.

Finally -- whew! -- Moss writes:
Jacobs's charge that arts advocates lack "vision" appears to be rooted in the idea that eventually, we'll have to pay down the national deficit, and at such time those appropriations will have to be reduced. In other words, there is risk that arts funding will decrease from one year to the next. But hello! Isn't that exactly what would have happened this year if the NEA money had been in an endowment? At least this way, the government retains the flexibility to make decisions about funding levels. Anyway, freaking out about the budget deficit implications of a program as small as the NEA is disingenuous at best. The Pentagon blows through more money every two and a half hours than the NEA does in an entire year -- and that's without even counting the wars in Iraq and Afghanistan. In any case, it's unfair to assume that the folks at Americans for the Arts and other service organizations are not thinking long-term. Changing the conversation about an issue like this takes a long time, especially when there's not an easy way to draw media attention to it. But mark my words, it is happening. The establishment of creative economy-related posts, studies, and task forces in local, regional, and state governments across the country is a testament to this. How many of them existed ten years ago?

Well, we will have to address the deficit and the debt. Period.

Second, while Moss has a point that if the NEA was like any other foundation or endowment the available monies would have dropped in this market, when he praises the government retaining "the flexibility to make decisions about funding levels," what he's really saying is that we have a president and a Congress favorably disposed to arts funding. That's all. That's not flexibility so much as pure politics. And it's not disingenuous to worry about the deficit or the debt. As noted before and as I'll note again, my worry is also about the politicization of the arts and preventing it as well as what to do in order to ameliorate the yo-yo funding effect that has consistently irked and buffeted the nonprofit theatre industry in this country for the last 25 years.

Perhaps it is "unfair to assume that the folks at Americans for the Arts and other service organizations are not thinking long-term." Sure, I'm sure they are. But if one is an arts advocate (watch Moss redefine it for me), one has the opportunity to let arts leaders know that we are looking at these issues, that we are on top of these issues, that we are debating these issues, that we are arguing -- loudly, if need be -- these issues, that we expect them dealt with and struggled through and examined and put forth in a transparent way. I'm not interested in a philosophy of "Let's let Mommy and Daddy fix it"; I'm not interested in "Let's not fight for what we believe in because the media won't pay attention." I'm interested in change. And while Moss can enjoy the support of those of the comments on his blog (including one trust-funded soul who happily put a stake in my back), I am happy to thrust and parry.

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