Reform 3.3.1: Arts and Culture

Reduction in Arts and Culture.

Other Information:

The City of San Diego Commission for Arts and Culture is responsible for making all recommendations pertaining to arts and culture for City funding through its two significant allocation programs. The two allocation programs, Organizational Support Program (OSP) and Creative Communities San Diego (CCSD), support 111 non-profit organizations. The Fiscal Year 2011 Annual Budget includes $6.2 million for the OSP and CCSD, $832,680 for Arts and Culture Program Administration, and $220,000 for Mayor/Council Allocations. Funding for these programs comes from the Transient Occupancy Tax (TOT), a tax levied on individuals who stay overnight in the city's hotels, motels and other lodging establishments. Municipal Code Sections 35.0128 – 35.0133 and Council Policy 100-03 govern the use of these taxes to promote the city, including support for San Diego's arts and culture programs and services. Importantly, Municipal Code Section 35.0128 Subsection A that states: “Two-thirds (2/3) of all revenues collected by the City and remaining after payment of one-sixth (1/6) of the costs incurred in the administration of Chapter 3, Article 5, Division 1 shall be deposited in the Transient Occupancy Tax Fund and used solely for the purpose of promoting the City. However, if the City Manager determines that anticipated revenues in any fiscal year will be insufficient to maintain existing City Services, the City Manager may ask the City Council to temporarily suspend compliance with this subsection (a) for the upcoming fiscal year. A majority vote of the City Council can temporarily suspend compliance with this subsection (a) for that fiscal year. “ Given the City’s $72 million budget deficit and the public’s clear concern over public safety cuts, we believe that the necessary determination can be made by the Mayor and City Council. As a result, we propose a 25% reduction to city Arts and Culture grants ($6.2 million) and the reorganization of the administration of this grant program. However, our office proposes that the current approach is reformed to focus on fewer, but larger awards that are geared toward attaining specific outcomes rather than spreading out a larger quantity of smaller fund amounts. This would resemble the model utilized by the City’s Tourism Marketing District (TMD) and the process awarding Community Development Block Grants. Finally, as the City moves forward in revamping its Arts & Culture award process, the current staffing model should be examined for potential efficiencies as well. IF CBDG and TMD grants can be given out with fewer staff, so should Arts and Culture funding. Recognizing that these proposed reductions to the non-profit organizations can be difficult, the City’s immediate financial situation necessitates these cuts. As additional structural reforms are implemented, the City may be able to consider restoring some of this funding. Alternate funding may be available to these organizations using the CDBG and TMD process.

Indicator(s):

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