Demonstrators protest in front of the White House in support of Net Neutrality | Photo by Joseph Gruber via Creative Commons

Just days past his confirmation, Ajit Pai, the Trump administration’s pick for Federal Communications Commission chairman, is already rolling back regulations put in place by the Obama administration in 2015 to protect net neutrality and increase access to the Internet. Changes that have already been enacted include the removal of nine companies from the Lifeline subsidy program, former chairman Tom Wheeler’s initiative which reduced the cost of broadband access for low-income families; the FCC also put a stop to data-security rules enacted in October. These actions signal a rapid-fire change in the FCC’s direction and portend new battles over Internet access. Pai has yet to lay out a specific plan to reverse the FCC’s classification of broadband internet as a utility like electricity or water – one of the landmark decisions under Wheeler’s tenure – but he’s made clear that he sees that move as a “mistake” that has depressed growth in new broadband investment. Some critics consider the loss of a free, open, and affordable Internet one of the biggest potential threats to the arts, favoring corporate interests at best, with the looming possibility of censorship at worst.

Brits attempt to impose quality standards on art. Arts Council England has earmarked £2.7 million to implement Quality Metrics, a controversial process aimed at measuring the quality of art presented to the public by government grantees. Drawn from a series of evaluations by peers, audiences, and the grantees themselves, the system seeks to measure artistic quality across various art forms and types of arts organizations, and will be mandatory for all organizations receiving at least £250,000 per year in operating support from the Arts Council. The plan is set to roll out despite many concerns raised following an independent review of the pilot phase of the program, particularly regarding the use of a single set of metrics across a plethora of artistic disciplines and questions regarding feasibility, data ownership, and anonymity. Buy-in from artists has been equally lukewarm, with many expressing resistance to the very idea of quantifying the arts.

It’s getting even harder to make it in Hollywood. A recent episode of the NPR podcast Freakonomics examined America’s ailing visual effects industry, which has endured economic troubles as jobs continue to migrate out of Hollywood. Despite visual effects playing an increasingly large role in filmmaking (and obliterating trades like special effects in the process), multiple companies in the industry remain in dire economic straits. Their job attrition likely stems from producers and directors chasing tax rebates in neighboring states, and increasingly abroad, forcing many film jobs out of California and hastening the globalization of the industry. At least one Hollywood profession may be getting some help: the Los Angeles City Attorney brought charges last month against five casting workshops accused of using a pay-to-play scheme trading acting roles for cash. In announcing the charges following an investigation involving an undercover actor, the city cited the Krekorian Talent Scam Prevention Act, which bars casting agents from requiring actors to pay fees for auditions.

Libraries grapple between access and ownership. In an era of inevitable change for public libraries, some are relaxing or even doing away entirely with overdue fines, questioning whether the penalties ultimately hurt Americans who need libraries the most. The decision stands in stark contrast to recent crackdowns on overdue books in Alabama and Texas, in which authorities threatened delinquent borrowers with jail time in an effort to recover hundreds of thousands, even millions, of dollars in lost property. The US is not alone; in the UK, more than 25 million books are lost and unaccounted for in that country’s libraries according to industry sources. So, while releasing borrowers from fines may remove the economic barrier and increase libraries’ appeal for marginalized communities, it also inevitably means fewer titles to chose from.

Federal arts funding hangs in the balance. Arts organizations are gearing up for battle as the Trump administration continues to toy with the idea of cutting arts agencies such as the National Endowment for the Arts in first drafts of the federal budget. While these cuts have not yet been formally instigated, their possibility has spurred activists to flood congressional offices in opposition. Much attention is focusing on the small but politically significant cadre of Republican arts champions, including New Jersey congressman Leonard Lance and senators Shelley Moore Capito and Susan Collins, both of whom signed a letter of support organized by fellow senator Kirsten Gillibrand. The ramifications of losing these agencies would be most deeply felt in rural areas, which receive less support from state and municipal arts funding. Despite a gradual uptick in appropriations to state agencies dating from the recession, the biggest gains of recent years have been concentrated in populous states like Florida and California, while it’s one step forward two steps back in places like Iowa. Bigger cities may have the best chance for surviving a wholesale cut to the arts: Atlanta and New York are among those plotting ways to increase support at the local level by proposing dedicated arts and culture taxes, providing incentives to artists who live in particular cities or states, and bolstering public art programming.

MUSICAL CHAIRS / COOL JOBS:

• Director Craig Watson of the California Arts Council will step down from his role with the agency effective April 2017.
• Philadelphia’s William Penn Foundation has named Shawn McCaney as its new executive director. McCaney was previously director of Penn’s Creative Communities program.
• The Wallace Foundation named Giselle “Gigi” Antoni as its new director of learning and enrichment. Antoni had developed a national reputation as the leader of Dallas’s Big Thought arts education initiative.
• The Alaska-based Rasmuson Foundation has announced Alexandra McKay as its new vice president of programs.
• Seattle arts critic Jen Graves voluntarily resigned after more than a decade at The Stranger, stating that it’s “not a viable place for me to do the work I’ve always cared about.”
• Perhaps less voluntarily, the outspoken New York Times theater critic Charles Isherwood is looking for work. Despite the implosion of jobs in arts criticism, the Times intends to fill the full-time position.
• DataArts is seeking a senior research manager to lead teams in study design, data analysis and interpretation and the delivery of the organization’s research services.
• The Boston-based Barr Foundation is hiring an arts & creativity program officer.

NEW RESEARCH OF NOTE:

• The National Endowment for the Arts shared its latest installment of data on economic trends in arts and culture, produced in collaboration with the Bureau of Economic Analysis. Upshot: artists add value to the economy, but public funding for arts education is in a sharp decline.
• Out of 1,000 responses to a survey by the UK’s Guardian Teacher Network, 80% claimed their schools made or are planning to make cuts to the arts.
• New evidence suggests that formal artistic education (i.e. conservatory training) can have a positive impact on artists’ career sustainability, as can financial and business training. Of course, one must be able to afford such training; indeed, the Sutton Trust noted that British actors from wealthy backgrounds are more likely successful than those with modest upbringings. Meanwhile, college-educated white adults make more than college-educated black and Latino adults according to Demos and the Institute on Assets and Social Policy, challenging the assumption that higher education can neutralize racial wage gaps.
• Exponent Philanthropy reported that small foundations and individual donors are developing strategies to up their impact potential in grantmaking. But larger funders tend to rely on their peers as the most trusted source of knowledge, according to a Hewlett Foundation report.
• An evaluation of Arts Council England’s Catalyst program indicates it provided a significant kick-start needed to increase the fundraising capacity of grantees.
• Museums and other cultural attractions continue to face challenges. A new metric indicates that visitor confidence to US cultural organizations is experiencing a sharp decline. However, a recent review of the literature indicates that museums are developing new fundraising strategies by looking beyond wealthy socialites as sources of individual donor support. Meanwhile, the American Alliance of Museums, as it does each year, published its TrendsWatch report considering what the future might hold for the industry.
• A new Ipsos survey asked Canadians across the county to define their culture and its products in the digital age.
• A new study identified hip and arm movement as the mark of good dancing in women. A rebuttal from Slate’s Daniel Engber, however, questions the relevance of the study, deeming it science’s version of clickbait.
• Grantmakers in the Arts produced a review of the literature regarding the arts in medicine, with a specific focus on optimizing investments.
• Research from the University of Chicago indicates that it’s easier to have a negative attitude then to look on the bright side.
• New research suggests that, compared to other teens, ballet dancers experience greater rates of “psychological inflexibility,” leading to anxiety and depression. Dancing may contribute to a greater fear of failure and pressure to achieve a physical aesthetic, which may also lead to such symptoms.
• Violent video games are thought to be associated with negative behaviors. Could uplifting games elicit the opposite effect? A UNESCO-sponsored study indicates they could.
• The Kennedy Center has partnered with the National Institutes of Health to create Sound Health, an initiative that explores music’s effects on health and wellness. Fast Company interviewed author Daniel Levitin about his new book on a similar topic: the neuroscience of music, and how playing music at home impacts behavior, attention span and productivity. Levitin’s work indicates that music is no longer as prevalent in the home, perhaps due to increased screen time, and could be used to facilitate mental breaks from focused tasks. His findings contrast evidence that positions silence (differentiated from quiet, or ambient noise) as an underutilized productivity tool.
• An annual report on freedom of expression around the world released by Freemuse finds that violations of artists’ rights more than doubled in 2016.
• The University of Wisconsin found that people of color accounted for 22% of children’s books characters in 2016, a 13-percentage-point increase over the course of two decades.
• Despite the success of high-profile female artists like Adele and Beyoncé, women are, on the whole, seriously underrepresented on the top 40 charts.
• #OscarsSoYoung could be the latest hashtag criticizing the Academy Awards. A new report from USC’s Annenberg School for Communication and Journalism indicates that there were only two characters over 60 nominated over the past three years…and both were played by Michael Keaton. USC researchers also found that women directors working on the top-grossing films were unlikely to have released more than one film in the last decade.

crown – Photo by Flickr user Jason Train, Creative Commons license

Both the NEA and the NEH have new official leaders this month: Jane Chu, head of the Kauffman Center for the Performing Arts in Kansas City, Missouri, will be the 11^th chair of the NEA; William “Bro” Adams, formerly president of Colby College, will be the 10^th chair of the NEH. Respected internal acting chairs had been manning the ships since Rocco Landesman’s resignation from the NEA at the end of 2012 and Jim Leach’s resignation from the NEH in April 2013. The new appointees are just in time for the Congressional debate over the President’s budget, which requested essentially flat funding for the cultural agencies.

In her previous job, Chu oversaw the mid-recession capital campaign that built the Kauffman Center, a major performance venue that is now home to the Kansas City Ballet, Symphony Orchestra and the Lyric Opera of Kansas City. She has a background as a grantmaker, with a PhD in philanthropic studies and a previous post as the vice president of community investment for the Greater Kansas City Community Foundation. A former member of the Greater Kansas City Chamber of Commerce, she may also be well equipped to reach across the aisle – or at least to continue making the case for the economic impact of the arts.

Adams, a Vietnam veteran and intellectual historian, has led arts and humanities initiatives at several colleges, including the Great Works in Western Culture Program at Stanford and a major expansion of the Colby College Museum of Art. His long and varied resume of experience in academic administration marks a shift from Leach, who had been a Congressman for thirty years at the time of his appointment. We hope he will continue his tradition of open forums entitled, “Yo, Bro.”

Glimmers of hope in state and local arts budgets: For the first time in many years, public arts funding is increasing in notable areas of the country. The Florida state budget now officially includes $56.4 million for the state’s Division of Cultural Affairs, vaulting the Sunshine State past New York to take the prize of most generous state arts council overall – even if you exclude the $12.4 million in line-item funding from that total. Not to be outdone, New York City’s 2014-15 budget includes a $23 million boost for arts education, to be directed toward arts specialist positions, facilities, and partnerships with cultural institutions. On the opposite coast, the California Arts Council received a $5 million boost from the state, bringing its total appropriation to about $9 million. Paltry as it may seem compared to Florida’s investment and California’s size, that $5 million is the first significant increase the CAC has received since it was gutted by more than 90% more than a decade ago. Michigan allocated an additional $2 million for the Michigan Council for Arts and Cultural Affairs, and South Carolina Governor Nikki Haley gave arts advocates reason to cheer by refraining from vetoing funding for the South Carolina Arts Commission for the first time since 2011.

Debate over equity in arts funding adds to Bay Area arts turmoil: In what may be a harbinger of feuds in other parts of the country, arts advocates in the City by the Bay clashed with one another over funding for arts organizations serving communities of color. A recent report from the Budget Analyst’s Office claims the bulk of funding distributed by San Francisco’s Grants for the Arts/Hotel Tax Fund goes to organizations serving primarily white audiences. Amid calls to address the disparity by boosting funds to the Arts Commission’s Cultural Equity Grants, which target underserved and culturally specific communities, sharp words flew between sub-groups of arts advocates, some of whom felt the Arts Commission and Grants for the Arts were being pitted against each other. The budget for Cultural Equity Grants is now poised to receive $119,000 previously allocated to Grants for the Arts, with further action by San Francisco’s Board of Supervisors expected in July. This is all on top of the recent shutdown of the San Jose Repertory Theater after 34 years and the dramatic shrinking of San Francisco’s Intersection for the Arts announced last month.

The Detroit Institute of Arts continues on its escape path from the city’s bankruptcy proceedings: The Detroit City Council unanimously approved the museum’s plan to privatize as a charitable trust. The so-called “grand bargain” would ransom the DIA from the bargaining table in exchange for more than $800 million in public and private funds to be paid to the city’s pensioners over 20 years. Foundation money currently accounts for more than $350m of that, including major gifts from Ford ($125 million) and Kresge ($100 million). The museum itself is required to raise $100m of the money; they’re about 70% of the way there, thanks to recent donations from the Big Three automakers ($26 million total) and from Mellon and Getty ($10 million and $3 million, respectively). Even if the funds are raised, the deal must still win the approval of pensioners and the presiding judge – which is not guaranteed, as some creditors are calling for part or all of the museum’s collection to be in play to settle the city’s debts.

Creative hubs compete to offer tax credits for film and TV production: A large majority of states offer tax incentives for film and TV production, but the last several weeks have seen several governments advance the arms race. New Jersey’s state Senate passed a bill that would raise the annual cap for film tax credits from $10 million to $50 million; Austin’s City Council approved reimbursement of up to 0.75% of production companies’ wages; and, not to be outdone, the California state assembly passed a “Film and Television Jobs Retention and Promotion” Act that would add an undefined amount to the current $100 million annual kitty. In Pennsylvania, lawmakers may clarify their tax credit rules to better attract feature films and TV series specifically; the shopping network QVC has received more than $26 million under the program since 2008. Meanwhile, Boston is kickin’ it old-school: the state legislature is considering incentives to lure live theater headed to Broadway or Off-Broadway to Beantown and the rest of Massachusetts. As we noted in January, the ultimate benefit of incentives like these to citizens is not always clear.

MUSICAL CHAIRS/COOL JOBS

• After seven months, Los Angeles has a new arts czar: Danielle Brazell is Mayor Eric Garcetti’s nominee to head the Department of Cultural Affairs. Brazell, who has spent the last eight years corralling the region’s arts advocates as executive director of Arts for LA, will take up the reins in August.
• Los Angeles also added a high-profile art education leader to its ranks: Rory Pullens, head of Washington, DC’s Duke Ellington School for the Arts, will take over Los Angeles Unified School Districts’ arts education branch in July.
• After fourteen years as Deputy Director and Director of Programs, Grantmakers in the Arts’ Tommer Petersen will retire at the end of 2014. GIA has announced a national search for his replacement.
• Simon Greer has left the Nathan Cummings Foundation following a two-and-a-half year stint as president and CEO. Greer noted he and the Board were “increasingly unaligned around the hard choices that are inevitably part of implementation.”‘
• Sad news: Rebecca Blunk, former Executive Director of the New England Foundation for the Arts, passed away on June 22 at the age of 60.
• The San Francisco Arts Commission is hiring a Senior Program Officer for Community Investments. Deadline: 6/16. Salary: $73-89k.
• Artist Trust (based in Seattle) is looking for a new Executive Director. Deadline: 7/3. Salary: $85-95k.

NEW RESEARCH OF NOTE

• Three new studies examine the link between arts participation and individuals’ sense of life-satisfaction.
• A University of Messina psychologist has linked creative capacity to hormones. Examining a small sample of visual artists, she found evidence of high prenatal testosterone rates among both males and females. A 1999 study of musicians suggested a similar correlation.
• Music education has been linked to increases in mathematical ability – might it help students with reading as well? Unfortunately, it may not do as much for your kid’s skill with the oboe as Malcolm Gladwell believes: a new study finds a strong genetic component to musical talent.
• Last year we outlined best- and worst-case scenarios for the impact of MOOCs on public education. Now, research on the use of educational technology in affluent vs. non-affluent communities suggests the worst-case scenario may be winning, as children from mid- and high-income families benefit more from fancy gadgets and internet access than their low-income peers.
• The National Assembly of State Arts Agencies offers a snapshot of how its members handle fellowships for individual artists.
• Arts Midwest has released a report on its leadership and strategy development program, ArtsLab, including case studies of eight grantees.
• Researchers affiliated with the Cultural Policy Center are preparing a book on the impact of major cultural facilities projects and the mistakes that can drive unwise investment by cities. The book expands on the authors’ previously-released study.

In her previous job, Chu oversaw the mid-recession capital campaign that built the Kauffman Center, a major performance venue that is now home to the Kansas City Ballet, Symphony Orchestra and the Lyric Opera of Kansas City. She has a background as a grantmaker, with a PhD in philanthropic studies and a previous post as the vice president of community investment for the Greater Kansas City Community Foundation. A former member of the Greater Kansas City Chamber of Commerce, she may also be well equipped to reach across the aisle – or at least to continue making the case for the economic impact of the arts.

Adams, a Vietnam veteran and intellectual historian, has led arts and humanities initiatives at several colleges, including the Great Works in Western Culture Program at Stanford and a major expansion of the Colby College Museum of Art. His long and varied resume of experience in academic administration marks a shift from Leach, who had been a Congressman for thirty years at the time of his appointment. We hope he will continue his tradition of open forums entitled, “Yo, Bro.”

Glimmers of hope in state and local arts budgets: For the first time in many years, public arts funding is increasing in notable areas of the country. The Florida state budget now officially includes $56.4 million for the state’s Division of Cultural Affairs, vaulting the Sunshine State past New York to take the prize of most generous state arts council overall – even if you exclude the $12.4 million in line-item funding from that total. Not to be outdone, New York City’s 2014-15 budget includes a $23 million boost for arts education, to be directed toward arts specialist positions, facilities, and partnerships with cultural institutions. On the opposite coast, the California Arts Council received a $5 million boost from the state, bringing its total appropriation to about $9 million. Paltry as it may seem compared to Florida’s investment and California’s size, that $5 million is the first significant increase the CAC has received since it was gutted by more than 90% more than a decade ago. Michigan allocated an additional $2 million for the Michigan Council for Arts and Cultural Affairs, and South Carolina Governor Nikki Haley gave arts advocates reason to cheer by refraining from vetoing funding for the South Carolina Arts Commission for the first time since 2011.

Debate over equity in arts funding adds to Bay Area arts turmoil: In what may be a harbinger of feuds in other parts of the country, arts advocates in the City by the Bay clashed with one another over funding for arts organizations serving communities of color. A recent report from the Budget Analyst’s Office claims the bulk of funding distributed by San Francisco’s Grants for the Arts/Hotel Tax Fund goes to organizations serving primarily white audiences. Amid calls to address the disparity by boosting funds to the Arts Commission’s Cultural Equity Grants, which target underserved and culturally specific communities, sharp words flew between sub-groups of arts advocates, some of whom felt the Arts Commission and Grants for the Arts were being pitted against each other. The budget for Cultural Equity Grants is now poised to receive $119,000 previously allocated to Grants for the Arts, with further action by San Francisco’s Board of Supervisors expected in July. This is all on top of the recent shutdown of the San Jose Repertory Theater after 34 years and the dramatic shrinking of San Francisco’s Intersection for the Arts announced last month.

The Detroit Institute of Arts continues on its escape path from the city’s bankruptcy proceedings: The Detroit City Council unanimously approved the museum’s plan to privatize as a charitable trust. The so-called “grand bargain” would ransom the DIA from the bargaining table in exchange for more than $800m in public and private funds to be paid to the city’s pensioners over 20 years. Foundation money currently accounts for more than $350m of that, including major gifts from Ford ($125m) and Kresge ($100m). The museum itself is required to raise $100m of the money; they’re about 70% of the way there, thanks to recent donations from the Big Three automakers ($26m total) and from Mellon and Getty ($10m and $3m). Even if the funds are raised, the deal must still win the approval of pensioners and the presiding judge – which is not guaranteed, as some creditors are calling for part or all of the museum’s collection to be in play to settle the city’s debts.

Creative hubs compete to offer tax credits for film and TV production: A large majority of states offer tax incentives for film and TV production, but the last several weeks have seen several governments advance the arms race. New Jersey’s state Senate passed a bill that would raise the annual cap for film tax credits from $10m to $50m; Austin’s City Council approved reimbursement of up to 0.75% of production companies’ wages; and, not to be outdone, the California state assembly passed a “Film and Television Jobs Retention and Promotion” Act that would add an undefined amount to the current $100 annual kitty. In Pennsylvania, lawmakers may clarify their tax credit rules to better attract feature films and TV series specifically; the shopping network QVC has received more than $26m under the program since 2008. Meanwhile, Boston is kickin’ it old-school: the state legislature is considering incentives to lure live theater headed to Broadway or Off-Broadway to Beantown and the rest of Massachusetts. As we noted in January, the ultimate benefit of incentives like these to citizens is not always clear.

MUSICAL CHAIRS/COOL JOBS

• After seven months, Los Angeles has a new arts czar: Danielle Brazell is Mayor Eric Garcetti’s nominee to head the Department of Cultural Affairs. Brazell, who has spent the last eight years corralling the region’s arts advocates as executive director of Arts for LA, will take up the reins in August.
• Los Angeles also added a high-profile art education leader to its ranks: Rory Pullens, head of Washington, DC’s Duke Ellington School for the Arts, will take over Los Angeles Unified School Districts’ arts education branch in July.
• After fourteen years as Deputy Director and Director of Programs, Grantmakers in the Arts’ Tommer Petersen will retire at the end of 2014. GIA has announced a national search for his replacement.
• Simon Greer has left the Nathan Cummings Foundation following a two-and-a-half year stint as president and CEO. Greer noted he and the Board were “increasingly unaligned around the hard choices that are inevitably part of implementation.”‘
• Sad news: Rebecca Blunk, former Executive Director of the New England Foundation for the Arts, passed away on June 22 at the age of 60.
• The San Francisco Arts Commission is hiring a Senior Program Officer for Community Investments. Deadline: 6/16. Salary: $73-89k.
• Artist Trust (based in Seattle) is looking for a new Executive Director. Deadline: 7/3. Salary: $85-95k.

NEW RESEARCH OF NOTE

• Three new studies examine the link between arts participation and individuals’ sense of life-satisfaction.
• A University of Messina psychologist has linked creative capacity to hormones. Examining a small sample of visual artists, she found evidence of high prenatal testosterone rates among both males and females. A 1999 study of musicians suggested a similar correlation.
• Music education has been linked to increases in mathematical ability – might it help students with reading as well? Unfortunately, it may not do as much for your kid’s skill with the oboe as Malcolm Gladwell believes: a new study finds a strong genetic component to musical talent.
• Last year we outlined best- and worst-case scenarios for the impact of MOOCs on public education. Now, research on the use of educational technology in affluent vs. non-affluent communities suggests the worst-case scenario may be winning, as children from mid- and high-income families benefit more from fancy gadgets and internet access than their low-income peers.
• The National Assembly of State Arts Agencies offers a snapshot of how its members handle fellowships for individual artists.
• Arts Midwest has released a report on its leadership and strategy development program, ArtsLab, including case studies of eight grantees.
• Researchers affiliated with the Cultural Policy Center are preparing a book on the impact of major cultural facilities projects and the mistakes that can drive unwise investment by cities. The book expands on the authors’ previously-released study.

It’s a crisp spring evening in Philadelphia’s East Passyunk neighborhood, and the avenue is coming alive. Market lights cast a warm glow over a restaurant patio where groups of people dine at picnic tables and a band does a quick sound check on stage. A little further down the block, shops and boutiques begin to close up for the evening, dimming their display window lights as a nearby gallery begins to fill with people out for an opening and a cafe prepares for open mic night. Pedestrians meander the sidewalks and through a small public square, chattering as they pass sandwich boards advertising restaurant week and lampposts plastered with flyers for upcoming film screenings and art shows.  A cyclist darts past a couple hailing a slow moving cab on the narrow street, and a group of twenty-somethings crack open the door of a crowded bar before stepping in.

Summer night on East Passyunk Ave. in Philadelphia. Photo credit: Christopher Woods (Flickr user: ChrisinPhilly5448)

If Passyunk Avenue sounds like a place you would like to be on a Friday evening, you are in good company. Known for their bustling pedestrian-oriented streets, repurposed historic buildings, inviting public spaces, diverse cuisine and retail offerings and the presence of the arts, informal or “Naturally-Occurring Cultural Districts” (NOCD) such as East Passyunk are highly desired by those vying for an apartment in the hippest area in town, budding entrepreneurs seeking space for new venues, not to mention urban planners and policy makers around the country. The term “cultural district” has been used to refer to a variety of different types of urban neighborhood, and there are even some cultural districts in rural areas (note: for the purposes of this post, arts, entertainment, and cultural districts are collectively referred to as cultural districts). NOCDs evolve without any government intervention, which is the ideal scenario from an urban planning and economic development perspective—due to a fortuitous combination of circumstances, a particular neighborhood turns into a hotbed of cultural vitality without any effort or public spending. Indeed, studies have shown that the benefits of successful cultural districts go beyond their nightlife; these areas are often home to ethnically, educationally and economically heterogeneous populations, and also offer residents a variety of services, making them convenient and distinctive places to live and work.

Designating Cultural Districts

Many cultural districts seek to replicate the success of NOCDs through careful planning and policy, with varying degrees of success. Since the 1980s, cities across the country have tried to foster the development of these planned cultural districts in areas that share many characteristics of NOCD, but where cultural life remains somewhat isolated from the rest of a community, or is just beginning to emerge as a significant factor. The idea is that with a little extra help these neighborhoods could turn into the next cultural hotspot. The development of these districts typically begins with identification of a neighborhood’s potential, often through the nomination and application by local stakeholders. If selected, an official designation is awarded, sometimes accompanied by a suite of government incentives targeted specifically at artists and other cultural producers. Usually positioned as economic development strategies, these programs are designed to encourage artists, entrepreneurs, institutions and potential developers to build on and organize around existing arts- and culture-based assets. If successful, the initial effort to designate a district will eventually result in increased tourism, tax revenue and outside investment in the designated areas.

A concert in a vacant lot in the state-designated Station North Arts & Entertainment District in Baltimore. Photo credit: Theresa Keil, courtesy of Station North Arts & Entertainment, Inc.

Mere designation of neighborhood as an officially recognized cultural district can by itself provide several benefits, including:

• Credibility: Though the designation process and standards vary from state to state, designating a cultural district recognizes the arts and cultural resources as defining characteristics of an area. A state-level review process and subsequent designation also lends credibility to this recognition.
• Catalyst and Organizing Principle: Cultural district designation at the state level can function as an organizing principle amongst artists, residents, business owners, and community development professionals to establish cooperation and consensus as a neighborhood undergoes redevelopment or creates a neighborhood vision plan.
• Marketing Potential: Given the cachet of cultural districts, designation can be a powerful marketing tool for a neighborhood undergoing active development. Designation offers the opportunity to change or influence the narrative about a given neighborhood in a positive way, as well as influence future investment.
• Leverage Funding: In addition to some states enabling designated cultural districts access to specific loan funds, state designated cultural districts are uniquely positioned to attract regional and even national funding that might not otherwise be possible in the absence of designation. As an added bonus, the inherently place-based nature of a cultural district draws funding toward defined geographies.
• Formalizing Relationships: Designated cultural districts offer the opportunity to strengthen state and local partnerships, strengthening relationships between agencies at these levels. Depending on the district’s management model, designated cultural districts can also link artists and informal arts collectives and bolster working relationships across the nonprofit, private and public sectors.

There are currently 13 state-designated cultural district programs, with designation criteria and process varying by state. Statewide programs are usually administered by the program’s respective state arts council, or in some cases by a state Main Street program, another economic development strategy that leverages local assets and emphasizes local heritage and historic character in its approach. Management strategies vary at the local level as well: some are volunteer-led organizations, others are fused with a Main Street program or community development corporation, and a few are autonomous nonprofit entities.

Of the 13 states that have designated cultural districts, only five (Iowa, Louisiana, Maryland, New Mexico, and Rhode Island) offer tax incentives for activity occurring within districts. These tax incentives can take the form of income tax exemptions, property tax incentives, sales tax credits or exemptions, preservation tax credits, or admissions & amusement tax exemptions. Other benefits for state designated districts include technical assistance programs or small grants offered directly to organizations, artists or other entities that are either located in designated districts or partner with the districts’ managing body.

A street view of Central Avenue in Albuquerque’s Arts & Cultural District. Photo credit: Kent Kanouse (Flickr user: KentKanouse)

Evaluating State-Designated Cultural District Programs

With the earliest state-designated cultural district programs now more than a decade old, it’s time to ask whether they are working effectively. To date, unfortunately, limited research evaluating state designated cultural districts exists. The National Assembly of State Arts Agencies (NASAA) produced a 2012 overview of state cultural district policy and programs. The topic of cultural districts, designated and not, has also been addressed by Americans for the Arts, and was the focus of a 2013 AFTA preconference.

Several states have attempted to shed some light on the broad impact of their cultural district programs. The Maryland State Arts Council provides a yearly report on the economic and fiscal impacts of its arts & entertainment districts. According to the analysis, which uses the IMPLAN software and input/output methodology, an estimated 5,144 jobs were supported by arts & entertainment districts along with $458.2 million in total state GDP and $38.3 million in total tax revenues.

The Texas Cultural Trust used interviews, case studies, census data and tax records from Texas cultural districts to measure economic impact based on five indicators: population, employment, property tax base, taxable sales, and annual operating budget of the cultural district. The document also attempts to forecast the three-year impact of Texas’s designated cultural districts based on increased marketing and promotion, and changes in property value/property tax base increase.

The Iowa Department of Revenue evaluated its three-tiered state historic preservation tax credit program, one part of which is specifically applicable for the renovation of historic properties in designated cultural and entertainment districts. Using tax credit recipient surveys and Iowa Department of Revenue tax data, the study compares the Iowa historic preservation tax credit to similar programs in other states and evaluates the economic impact. It claims that every dollar awarded in state tax credits leveraged an additional $3.77 in federal and private investment.

Overall, the reports present the presence of a designated cultural district as a benefit and driver of economic development. Data on the number of people taking advantage of the tax incentive programs and the economic impact of these programs is missing from these reports, however, and from other state-designated cultural district programs with yearly reporting mechanisms. While the Iowa report provides an analysis of its historic preservation tax credit, it does not provide an analysis of those used specifically in its cultural and entertainment districts. This may be because certain data is difficult to locate: cultural district income tax benefits for artists, for example, are filed with an individual’s yearly tax forms and are therefore not publicly accessible.

Challenges

If better data on cultural district tax incentives were available, there’s a good chance it would show that the incentives are of little consequence for the artists, organizations, and developers catalyzing revitalization in designated cultural districts. Several sources, including the NASAA policy overview, a Johns Hopkins University report, and anecdotal evidence from conversations with district managers, suggest that even where tax incentives are available, not many people or organizations take advantage of them.

This is likely a function of the limitations of state cultural district incentives. Specifically,

• Stringent definitions of “qualifying artist” and “artistic work” significantly reduce the number of individuals eligible for the incentives. This is particularly true of the income tax and sales tax incentives offered by several state programs. The definitions often require art to be made and sold within district boundaries, which does not reflect contemporary art-making, marketing, and sales practices. “Industry-specific work” such as graphic design or commercial photography does not qualify for most state incentive programs, which prevents many creative professionals from using the incentives.
• Unclear guidelines for administration of incentives make it difficult for comptrollers or other government officials to determine eligibility for the incentives and to administer the programs consistently. In turn, this lack of an established protocol makes it difficult or impossible to use the credits, causing artists to seek alternatives.
• Insignificant amounts of eligible income derived from the sale of art, tickets, or other work that does qualify for the incentives further limit the potential pool of applicants. In a time when many artists derive their primary income from other jobs, proceeds from the sale of work might not meet minimum thresholds for reporting, or might go unclaimed on an annual income tax form due to complicated documentation requirements.
• A lack of promotion highlighting the availability of tax incentives leaves them relatively unknown to the public. Simply put, the existence of cultural district incentives is not widely advertised.

Given the hurdles for using districts’ incentives and the fact that most state programs do not offer incentives at all, it appears the success of cultural districts primarily stems from designation itself and the opportunities to market, program and organize that the designation provides. However, even the components of the programs that do not provide direct financial assistance still require funding and a management structure through which to administer the program. This brings us to another challenge for cultural districts: sustainability.

Regardless of management structure, dedicated staff time is vital to realizing the goals and reaping the benefits of a designated cultural district. Beyond small technical assistance grants, only two states offer operational support for the management of districts at the local level. The minimal funding available for this purpose seems disproportionate to the economic impact that cultural districts are expected to yield.

Perhaps the greatest challenge of cultural districts lies in maintaining affordability for the artists, entrepreneurs, and other longtime residents and businesses of designated districts, ostensibly those catalyzing the economic impact of the neighborhoods. While many NOCDs are celebrated success stories, some, like New York City’s SoHo or Miami’s Wynwood District are criticized for becoming victims of their own success, having experienced rapid commercialization, rising rents and displacement of the artists and longtime residents of the neighborhoods.Policies for state-designated cultural districts do little to consider the long-term sustainability of cultural districts whose “assets” are in large part reliant on individuals who are vulnerable to economic shifts and rising cost of living. Existing cultural district policy does not address issues of affordability, putting the creative clusters that rely on affordable live and workspace options at risk of displacement.

Conclusion

State-designated cultural districts benefit communities across the country, serving as a organizing principle, lending credibility to creative communities at the local level and boosting marketing potential in the neighborhoods in which they are initiated. With some programs now more than a decade old, however, it seems the policy and incentives programs accompanying some of these programs lag behind. While steps are being taken to increase advocacy efforts and expand the applicability and usefulness of these credits, including an expansion of geographic limitations for eligible artists in both Maryland and Rhode Island, progress remains slow. As arts organizations, researchers, and policymakers continue to explore cultural districts and make decisions about the creation of new districts, several key pieces of data need to be added to the equation.

First, data on cultural district tax incentives should be collected and compared to the expectations of policymakers at the time of their creation. Specifically, how many individuals are using the incentives, and how much is being claimed as a benefit of these programs? In addition to providing a clearer picture of the costs and benefits of designated districts, this data would enable more strategic decision-making for promotion of incentives.

Secondly, policymakers and researchers should adjust programs to better support and sustain artists, administrators and organizations. Where incentives for artists and creative professionals are offered, policymakers need to consider how art is marketed and eventually purchased. For example, the relatively recent emergence of Etsy, Kickstarter and other online platforms has changed the way artists and creative professionals seek visibility for their work, network, and sustain their business. Furthermore, increased connectivity between major urban areas makes it common practice to live in one city as a practicing artist and participate in exhibitions in another metropolitan area. Existing policy incentives do not align with these practices.

Finally, cultural district programs need to consider and promote affordability when it comes to residential and work space within districts. Whether at the policy level or local district level, administrators need to consider how to incentivize property owners to continue developing and maintaining safe and affordable studios, galleries, venues and living spaces. Another aspect to consider is adjusting policies and programs to incentivize renters to remain in cultural districts.

At their best, designated cultural districts provide a policy framework that leverages existing creative energy to foster the type of asset-based economic revitalization observed in NOCDs. However, as designated cultural district programs age and additional states create similar programs, it is vital that administrators delve more deeply into the research and evaluation of these programs to monitor the success of these districts, as well as some of their unintended consequences and areas for improvement.

Jane Chu is inching towards nomination as the next NEA Chair, as the Senate Health, Education, Labor and Pensions (HELP) Committee voted to approve her candidacy with “no controversy.” Over the past few years, Republicans appear to be content to let the NEA languish in level-funding purgatory rather than continue to whip up the kind of culture-war controversy that proved so successful in handcuffing the agency in the ’90s. Let’s be grateful for small victories.

STATE AND LOCAL

This is the season for state arts council budget drama, and there are certainly a few stories worth reporting. First and foremost is the prospect of an incredible resurgence for the Florida Division of Cultural Affairs, which had its budget cut an astonishing 94% over a three-year period and nearly zeroed out in the heady summer of 2009. Since then, arts advocates have slowly moved the needle towards more funding, but nothing compared to the 384% increase the agency would be in line to receive if Governor Rick Scott signs the budget recently passed by the Legislature, restoring funding to pre-recession levels. It’s not a done deal yet, though – Scott has line-item veto power and may be itching to use it.

In somewhat more bittersweet news, after all the brouhaha from last time, Maryland has agreed to increase tax incentives to Media Rights Capital, the producer of Netflix’s House of Cards, settling on $11.5 million to keep the show in the state. The figure does represent a decrease from the average amount the show had received in previous years, but as previously reported the state had to raid a fund intended for local arts organizations to make the deal happen.

On the local front, the Art Newspaper takes stock of NYC Mayor Bill de Blasio’s arts agenda: whereas Bloomberg invested in large-scale projects designed to drive tourism and economic impact, de Blasio appears to be focused on the outer boroughs, access, and community engagement. Meanwhile, de Blasio’s first budget for New York City is out, and with a 6% overall increase in spending gives educators a lot to be happy about: steps toward universal pre-K, expanded after-school programs and a $20 million allocation for arts education.

Los Angeles may be on the verge of overhauling its public art ordinance, thanks to an audit that recommends the city relax the requirement that developers’ public art fees be spent within one block of the constructions that generated them. Paralyzed by the geographical restriction, the city’s Department of Cultural Affairs had been sitting  on $7.5 million in funds earmarked for public artwork.

Any cities or counties pondering local tax increases for arts and culture, take note: the ultraconservative Americans for Prosperity is wading into local politics with a campaign against a local tax increase in Franklin County, Ohio meant to benefit the Columbus Zoo.

INTERNATIONAL

The authors of last year’s report showing that the UK Arts Council gave London-based organizations five times as much money per capita as those in other parts of the country have released a new study showing that UK lottery arts funding is similarly concentrated in the capital. The Mayor of London and organizations in his city  support raises for others but not cuts for themselves. And Parliament may decriminalize non-payment of Britain’s $250 annual TV-licensing fee, the primary source of income for the BBC. Scofflaws, such as the 107 TV owners jailed in 2 years for failing to pony up, would still be subject to civil penalties. Meanwhile, the BBC is calling for payment even by those who don’t own televisions in an age when physical TVs are an afterthought.

Australia’s conservative government has taken aim at the arts, enacting more than $100 million in cuts to various national funding bodies. Since most of that amount is spread over a four-year period, the impact is not as drastic as it sounds, and the head of the Australia Council doesn’t seem too worried. Still, $100 million is $100 million…well, about $94 million in American dollars. On the other side of the ledger (and the world), the Kingdom of Saudi Arabia is investing $1.7 billion to build 230 new museums across the country, intended to show off the nation’s rich cultural history. Private-sector firms, including the oil giant Saudi Aramco, are getting in on the museum-building act as well.

Despite all the money that Russia pumps into the arts, there is mounting criticism—especially in the theater world—against its contents, with a new, envelope-pushing generation of artists facing political pressure from the government. Woolly Mammoth Theater’s Festival of New Radical Theater, which was set to include works from Russia, has become the most recent collateral damage in Moscow’s politicization of art. Meanwhile, on July 1, it will become illegal to curse in public performances in Russia – though the ban may cover only four very, very dirty words. Russia, of course, isn’t the only major world power wanting to shape artistic expression: China appears to be stepping up its campaign against Western media, banning four US television shows from streaming websites for violating a regulation aimed at shows that “harm the nation’s reputation, mislead young people to commit crimes, prostitution, gambling or terrorism.”

• In a major victory for New York’s arts education advocates, Mayor Bloomberg signed a bill requiring the city’s department of education to report on the availability and accessibility of arts education in each of its schools. This annual report will make public the degree to which schools meet current instructional requirements in music, dance, theater, and visual art. This wasn’t an aberration for Bloomberg, whose legacy after three terms as mayor includes an impressive record of support for the arts.
• Meanwhile, arts groups prepare to woo his successor, Bill de Blasio, who has followed national precedent and failed so far to appoint a new Commissioner of Cultural Affairs. Some speculate – or simply hope – that he will apply his populist spirit to the culture sector.
• Reversing an earlier position, the United States Copyright Office now recommends that visual artists receive a portion of profits when their work is resold. Congress hasn’t taken up resale royalties for visual artists since 2011, when a bill sponsored by Representative Jerrold Nadler failed to gain traction.
• ‘Tis the season of Top Ten Lists, and The Future of Music Coalition has a comprehensive roundup of 2013’s music and technology policy developments, including Congress’s ongoing review of the Copyright Act, a changing of the guard at the FCC, and the looming court decision in the momentous net neutrality case between the FCC and Verizon.
• Construction for major government-supported art facilities in Abu Dhabi — including sparkly new Guggenheim and Louvre campuses — is booming on the backs of migrant workers from Pakistan and Bangladesh, many of whom had to pay a recruitment fee to work on the projects and now toil under atrocious conditions. The International Trade Union Confederation is urging western museums to step in, and a coalition of artists and activists has formed to support the workers.

MUSICAL CHAIRS

• Steven Tepper, research director of the Strategic National Arts Alumni Project (SNAAP) and associate director of Vanderbilt’s Curb Center for Art, Enterprise, and Public Policy, is the new dean of Arizona State University’s Herberger Institute for Design and the Arts.

ALL ABOUT THE BENJAMINS

• George Zimmerman is once again in the media spotlight for selling a painting he made on eBay. The patriotically themed piece sold for $100,099.99, prompting outrage from some and a web-sale response by artist Michael D’Auntuono. In a move the artist calls “hypocritical,” D’Auntuono’s attempt to sell his response piece, and donate part of the proceeds to a charity advocating for crime victims, was censored by the auction website for violation of eBay guidelines.
• Acknowledging that less than 5 percent of its grants for repertory development have gone to women over the last quarter century, Opera America is launching a grant program targeting female composers.

IN THE FIELD

• Is Facebook’s new donate button “good, bad, or ugly” for nonprofits? Beth Kanter argues it does more harm than good, and rallies for a Facebook Ad Grants program similar to Google’s.
• In its quest to make culture “the spirit and soul of the nation,” China opened more than 450 museums in the last year alone, bringing the total number in the country to nearly 4,000.
• Did you finish 1984? New all-you-can-read book services are compiling data on not just what we read but also how quickly we do it, how long we linger over which passages, and whether we finish specific books. (Turns out people are more eager to learn how biographies end than business books.)
• Mara Walker, chief operating officer for Americans for the Arts, reports on her experience as the only American participant at this year’s International Arts Leadership Roundtable, organized by the Hong Kong Art Development Council.

BIG IDEAS

• You’ve Cott Mail readers offered bold predictions for the arts in 2014: ballet will relocate to London, we’ll all stop saying “outreach” (but do it more in our communities), and new artist-led theater collectives will rise up to seize the means of cultural production, among other prophecies.
• The Wall Street Journal’s Terry Teachout, meanwhile, predicts audiences’ growing “on-demand” mentality will continue to spell trouble for nonprofit theater companies, and urges them to embrace and market the “intimacy [of the] small scale, handmade art form.”
• In an interview with Barry Hessenius, WESTAF Executive Director Anthony Radich unpacks his longstanding call to “reimagine” state arts agencies (i.e., embrace more flexible staff structures and find ways to get “free from the negative undertow of state restrictions while retaining that still-important connection to the state government”) and offers insight on the future of state support for the arts.
• Providence, RI has acknowledged how much the city’s future depends on its four main nonprofit higher-ed institutions: Rhode Island School of Design, Brown University, Johnson & Wales, and Providence College. Financially reliant on an industry that isn’t requited to pay local taxes, the city of Providence has negotiated an attempted economic revitalization plan that has the schools make sizable contributions to the city in exchange for sweetened deals on land usage and campus expansion.
• Createquity’s own Talia Gibas lays out three different conceptions educators, artists, and advocates draw on when they talk about “STEAM” as the intersection of the arts with science, technology, engineering, and math. She argues that art may primarily represent aesthetics and design, curiosity, or creativity, and that there are important differences among the three.

RESEARCH CORNER

• The Foundation Center’s annual “Key Facts on U.S. Foundations” report is out in time for the New Year. Giving is on the rise: the approximately 82,000 foundations in the U.S. gave $45.9 billion in 2010, $49.0 billion in 2011, and an estimated $50.9 billion in 2012. The report also breaks down the largest grants by the largest foundations for 2011 by issue, geography, and a host of other dimensions, revealing among other things that the top 1% of recipients captured half of these grant dollars.
• The McKnight Foundation has released its findings in a study it conducted, with help from the Center for the Study of Art & Community, on artists supported by its fellowship program since its establishment in 1982. The study asked artists six questions that gave them an opportunity to “reflect on the environment, conditions, and motivations that affect their work.”

More than nine months after former chair Rocco Landesman announced he was stepping down, the search for a new National Endowment for the Arts chairperson has stalled – just in time for the fall budget debates to ramp up in earnest. Sphinx Organization founder and president Aaron Dworkin confirms in the article that he was one of the candidates considered for the position earlier this year. Former NEA Senior Research Officer Joanna Woronkowicz tells us not to worry about the delay. Meanwhile, remember that kerfuffle last year about how Kickstarter was on track to provide more funding for the arts than the NEA? Well, not that this is a surprise, but by now it’s actually happened.

The United States cut off its support of Unesco in 2011 after the international cultural agency recognized the Palestinian Authority as a member nation. The measure was required by U.S. law, but was never supported by the Obama administration, which is now trying its darndest to be supportive of Unesco anyway.

STATE AND LOCAL

At long last, we have had a good year for state arts agency funding. With the economy rebounding and the pall of uncertainty lifting over state budgets, a number of arts councils have managed to claw back a measure of compensation for the dramatic cuts endured over the last four years, though there is still a long way to go. State arts budgets in the aggregate are up nearly 11% or $30 million, the largest nominal dollar increase in over 13 years. Notable success stories from this fiscal cycle include:

• Texas, whose Commission on the Arts got nearly double its appropriation from last year;
• Delaware, which received $1.6 million for a new Arts Trust Fund to provide general operating support for large institutions;
• Arizona, which eked out $1 million in general fund appropriations for its Commission on the Arts for the first time in three years;
• Florida, continuing its climb back to relevance with $5.7 million in new funding, mostly from line items;
• Michigan, also continuing a remarkable climb back from near-death with the second year in a row of multi-million-dollar increases;
• and South Carolina, whose arts commission defeated a gubernatorial veto for the fourth time in four years and on top of that got a hefty 52.4% increase.

California arts advocates did not succeed in dramatically changing the landscape for the California Arts Council, but at the last moment Assembly Speaker John Perez ensured a nearly $2 million increase to the agency’s coffers, bringing California out of the cellar as the cheapest state supporter of the arts on a per-capita basis. Other states with notable increases included Arkansas, Colorado, Illinois, Maryland, Massachusetts, Minnesota, Montana, Ohio, Utah, and Vermont.

Not all the news was good for state arts advocates, though. The Kansas Creative Arts Industries Commission, only a year after coming back from being the first state art agency to be vetoed out of existence, has now been slashed almost entirely to the bone again with a paltry appropriation of $200,000, the lowest in the country. Arts councils in Tennessee, Louisiana, Rhode Island, Connecticut, West Virginia, and Wyoming also endured double-digit cuts.

In other state news, a tale of two tax policies: Rhode Island is eliminating taxes on the sale and purchase of artwork, while North Carolina is introducing a new 4.75% “privilege tax” for “admission charges to any live performance or event, any movie screening, any museum, cultural site, garden, exhibit, art show or guided tour.” The North Carolina tax applies to both nonprofit and commercial groups but carves out a number of confusing exemptions for certain festivals, state-supported museums, etc.; basically it sounds like terrible legislation. With that kind of environment, it will be interesting to see if the state extends its sunsetting film tax credit beyond 2014.

INTERNATIONAL

My goodness, the blows just keep coming for arts funding in England. The cuts to Arts Council England over the past few years were bad enough, but it turns out that local funding for the arts will fall another £124 million next year, even though local government budgets in general are up!  Better to be an artist in Britain than Portugal, however, which eliminated its ministry of culture two years ago and shows what happens when you pull the rug of government funding out from under a society that has no tradition of private philanthropy.

The giganta-budget West Kowloon Cultural District Authority in Hong Kong is running into trouble, with construction costs (surprise!) almost double the amount originally planned. The authority has decided to postpone seeking an additional $3.2 billion (I told you it was giganta-budget) payment from Hong Kong’s Legislative Council, presumably until things are in better shape.

Three profiles of new/new-ish culture heads: in Canada, Shelly Glover is settling into her new role as Minister of Canadian Heritage and Official Languages; in France, embattled French Culture Minister Aurélie Filippetti presides over $3.2b in government spending on culture, which is down 2.8% from last year. France also has gone ahead and ended the “three strikes” provision of its copyright enforcement policy. Finally, Ines Abdul-Dayem is the new culture minister for Egypt. She has quite a story: earlier this year, she was dismissed from her post as head of the Cairo Opera House along with many other cultural officials by Alaa Abdel-Aziz, the man she is now replacing. In June, though, “artists stormed the Ministry of Culture and began an open-ended sit-in to demand the removal of the [now former] minister and the revocation of his decisions.” Shortly thereafter, following the ouster of president Mohamed Morsi, Abdel-Aziz resigned his position.

From Santa Cruz Museum of Art and History’s Family Fallapalooza

Each year, Createquity offers a list of the top ten arts policy stories of the past 12 months. You can read the previous editions here: 2009, 2010, and 2011.  The list, like the blog, is focused on the United States, but is not oblivious to news from other parts of the world. This year, for the first time, I opened up the creation of this list to Createquity authors past and present, and I am particularly grateful to Jackie Hasa for contributing the entries for orchestra labor strife and SOPA/PIPA versus the internet. If you’re interested in being a part of a growing and increasingly active team here, a reminder that the deadline for the Createquity Writing Fellowship is coming up on January 8.

2012 was a year of cautious optimism for the arts. As the economy continued its slow recovery, for the first time in four years, government funding at the state level did not see a decline, and the slash-and-burn tax-cutting fervor of political conservatives seemed to be blunted by November’s election results, at least temporarily. There were stories of individual organizations making good, and ambitious initiatives seemed to be around every corner. And yet in certain contexts, the arts were still or newly facing dark days. Arts communities in much of Europe and the Western world struggled with austerity measures, as did orchestra musicians in the United States. And in many Muslim countries, art and artists found themselves in the middle of (or even the target of) oppression, strife, and violence. One comes away from this list with the sense that things are going to be interesting in 2013.

10. Nina Simon reboots the Santa Cruz Museum of Art and History

I don’t normally include innovation stories from rank-and-file arts organizations on this list, but Nina Simon’s transformation of Santa Cruz MAH has been so far-reaching and impressive that its broader fieldwide significance is hard to deny. It’s not just about the numbers, though Simon has those too: attendance has more than doubled, the busiest day drew triple the participants over previous years,and there’s now a $350,000 cash reserve. More interesting, however, is the combination of Simon’s fame and her daring programming that has put the MAH “on the map” in a way that simply wasn’t the case before. Simon is the rarer-than-you-might-think example of a consultant who has successfully transitioned into an executive role, and in the process she has eagerly seized the opportunity to reshape a struggling institution into a playground for her (and the community’s) ideas. Through new programs like the You Can’t Do That in Museums Camp, an exhibition-as-exhibition, and more, Santa Cruz MAH is charting the frontiers of what it means to be a participatory museum, and we get to have a front-row seat by virtue of Simon’s long-running and admirably transparent blog, Museum 2.0. Simon’s approach may not be right for every arts organization, but it surely presents one very clear vision of the future, one to which attention must be paid.

9. The European funding model shows more cracks

Let’s be clear on this one: the core Western European philosophy of seeing culture as an essential arm of government is not on the verge of dissolving, and the wealthy countries that have historically been most faithful to this notion–including Germany, France, and the Scandinavian nations–have so far shown little willingness to abandon it in favor of American-style privatization fever. At the fringes of the European Union and beyond, however, government-centric cultural policies underwent substantial stress in 2012. In Bosnia-Herzegovina, for example, the national museum closed due to lack of funds provided by a non-functioning government; in Greece, spending on the arts has dropped 35% since 2009, and in Italy, Rome’s MAXXI Museum has been put into receivership. Arts Council England, having already suffered major cuts two years ago, is looking at a potential loss of 150 staff, while cities like Newcastle are looking at even more drastic cuts. This is a trend to watch in 2013.

8. SOPA/PIPA vs. the Internet

In early 2012, an enormous Internet protest caused both houses of Congress to indefinitely postpone voting on the Stop Online Piracy Act (SOPA) and the PROTECT-IP Act (PIPA).  These bills sought to regulate Internet content in the name of fighting piracy, which split arts organizations into two opposing camps—those with a vested interest in strong copyright protections, which included many major entertainment industry unions and associations, and those concerned that the bills’ more draconian regulations would dampen creative exchange, which included a broader range of organizations, from McSweeney’s to Fractured Atlas to Dance/USA.  After tabling SOPA/PIPA, Google and other major tech companies helped Congress draft the Online Protection and Enforcement of Digital Trade Act (the OPEN Act) as part of a more balanced approach. Public comments on the OPEN Act are encouraged, even as its sponsor, Darrell Issa (R-CA) pushes for a 2-year moratorium on Internet regulations.  Efforts to control the web also failed on the international stage, when a U.N. committee charged with rewriting Internet rules couldn’t get buy-in from the U.S., U.K., Canada, and dozens of other nations due to concerns over censorship.   Lawmakers may not resolve these debates in 2013, but in the years ahead, we will doubtless see continued efforts to regulate Internet behavior.

7. The arts face violence and turmoil in the Middle East and North Africa

Where to begin? In Syria, where the ancient city of Aleppo has been devastated by that country’s civil war? In Mali, where a fundamentalist group called Ansar Dine has destroyed world-famous heritage sites in Timbuktu and threatened musicians with bodily harm? In Somalia, where some 18 media figures, including a popular poet and playwright, have been assassinated by the Al Qaeda-aligned Al Shabab, for daring to mock the militants in public? In dozens of countries where mass protests broke out, some turning violent, in response to a video made by an American filmmaker and con artist with insulting depictions of the prophet Muhammad? In the midst of all the tragedy, we also had uplifting stories like the role that young artists had in galvanizing Egyptian dissent during the Arab Spring. From our comfortable perch in the US, it can sometimes feel like the arts are a frill, a plaything for the privileged, or simply inconsequential. It seems fair to say that in this part of the world, today, the arts matter.

6. State arts councils turn the corner

State arts councils reversed a four-year slide in 2012, finally coming out of the annual budget appropriations process in the black. The National Assembly of State Arts Agencies reports that total appropriations rose 8.8% in the aggregate to $282.9 million, although most of this change is attributable to substantial increases in Florida, Michigan, and the District of Columbia, each of whose appropriations more than doubled over the previous year. (Michigan’s budget grew an astounding 366.8%, albeit after having sustained equally astounding cuts in previous years.) In addition, two anti-arts governors found themselves with egg on their face this year, as the recently vanquished Kansas Arts Commission made a triumphant return as the Kansas Creative Arts Industries Commission, and the South Carolina Arts Commission fought off yet another veto threat from Governor Nikki Haley. Other states with budget increases of $1 million or more included Connecticut, Minnesota, New York, and Ohio. (Update: See comments for info about Connecticut.) And while the Arizona Commission on the Arts continues to receive no legislative appropriation from its state government, it did win a ten-year re-authorization against the odds. The year was not completely free from bad news, however, as the arts councils in Louisiana, Missouri, New Hampshire, and Utah all suffered double-digit cuts, continuing a trend in the first three states.

5. Labor strife reaches new heights in orchestras and beyond

This year was rife with labor unrest in the arts, most notably among orchestras. Driven by fundraising shortfalls and sometimes debt from capital projects conceived in flush times, musicians walked out—or were locked out—all over the U.S. Unions in Chicago, Atlanta, Milwaukee, Spokane, Louisville, New York, Philadephia, San Antonio, and Indianapolis all successfully reached deals that ranged from modest raises (San Antonio) to 32% wage cuts (Indianapolis). The strife will continue in 2013: in the Twin Cities, both the St. Paul Chamber Orchestra and Minnesota Orchestra have been locked out for months, with no resolution in sight. We’re also seeing some signs of resilience and cooperation, as the previously disbanded Syracuse and Utica Symphony Orchestras vowed to return for the 2012-2013 season. In 2013, we may see more attention paid to the Colorado Symphony as a potential model. Following their own labor conflict in 2011, they revised their contract to allow for more organizational flexibility. For instance, the orchestra can now play in smaller groups, allowing them to perform in communities around Denver in minor venues.

4. Rocco steps down

It wasn’t a surprise, but it was news nonetheless: Rocco Landesman left the National Endowment for the Arts (NEA) after three-plus eventful years as Chair. During his tenure, he set the agency on a technocratic course with more explicit attention paid to the instrumental benefits of the arts, particularly their economic value. His highest-profile accomplishment while in office was the creation of two new grant programs to encourage “creative placemaking,” Our Town and ArtPlace (more on that below). His most enduring legacy, however, may turn out to be his work, along with Senior Deputy Chair (and now Acting Chair) Joan Shigekawa, to develop partnerships between the NEA and other branches of federal government and to set the research office on a more strategic path. Lastly, it was during his tenure that the NEA began more explicit efforts to welcome the public into its decision-making process, offering a series of live webcasts of convenings and meetings including those of the National Council of the Arts, the body that oversees the NEA. No hints as of yet as to who may replace him, but we won’t likely know until well into 2013.

3. The Detroit Institute of Arts gets a millage

The Detroit Institute of Arts (DIA) was in a pickle. The venerable museum was facing a financial downward spiral, and it was one of the few institutions of its kind not to receive funding from either its city or state. The solution? Advocate for a millage (a form of property tax) to support the DIA in Wayne, Oakland, and Macomb counties, in exchange for free museum admission for residents from those counties. The measure passed in an election on August 7, and will raise a whopping $23 million annually for the DIA over the tax’s 10-year duration.  There are charitable and less charitable ways to interpret this development, and arts world response seemed to be divided between them. On the one hand, here was an example of a cultural institution demonstrating relevance to its community in the most direct, unimpeachable manner possible: a majority of residents in three counties, urban and suburban, voted to tax themselves so that this institution could survive and thrive. On the other, the DIA raised and spent an enormous sum of money – $2.5 million – getting a piece of legislation passed that benefits only one arts organization – itself. No matter how wonderful the DIA may be, that precedent is a bit worrisome.

2. The creative placemaking backlash

It was just last year that the #1 arts policy story was “Creative placemaking ascendant,” so it’s not surprising to see that the movement has come back to earth in 2012, facing public relations challenges on multiple fronts. Much of the discussion has focused on the way that the NEA’s Our Town program and its private-sector cousin, ArtPlace, plan to track and measure the impact of the grants they make – a dialogue begun here on Createquity with May’s “Creative Placemaking Has an Outcomes Problem” and continuing in the fall with further back-and-forth between researcher Ann Markusen and the NEA’s Jason Schupbach and Sunil Iyengar. But creative placemaking’s PR hiccups this year went much further than that. They started small, with the revelation that much of ArtPlace’s grant funding is geographically restricted, meaning that applicants in many parts of the country face longer odds than others, and a brutal exposé by the Los Angeles Times of problems within the ArtPlace-funded Watts House Project. By the summer it seemed that criticism and skepticism was pouring in far and wide, from sources as diverse as Thomas Frank (author of What’s the Matter with Kansas?) and Roberto Bedoya, and leading to trite headlines like “Hipsters won’t save us” in mainstream publications. To make matters worse, Richard Florida decided in the midst of all this to re-release his most famous and now-controversial book, The Rise of the Creative Class, prompting a rash of articles attacking the intellectual origins of creative placemaking work. Some of the criticism has been fair and some of it considerably less so, but there’s no sign as yet that the creative placemaking juggernaut is slowing down as a result of it.

1. Election 2012

This last item is unusual, in that it’s more about what didn’t happen this year rather than what did happen. As things turned out, the balance of power in Washington hardly changed at all and we can look forward (I guess?) to divided government for at least the next two years. By contrast, most analysts agree that if Mitt Romney had won the election and Republicans had regained control of the Senate, both of which were distinct possibilities through most of the summer and fall, what little arts policy infrastructure remains at the federal level would very much have been in jeopardy. Romney had made no secret throughout the campaign of his disdain for the NEA, the NEH, and the Corporation for Public Broadcasting, even bizarrely choosing to make Big Bird an issue in an otherwise well-received first debate with the President. And it doesn’t take much imagination to conclude that conservatives, fresh off a massive gain in Congressional seats during the previous midterm elections, would have felt empowered to take a hacksaw to domestic spending following even a narrow win. With these outcomes averted, it’s likely that funding levels will stay steady or suffer relatively minor cuts in the near future, though with the seemingly endless negotiations over the “fiscal cliff” and debt ceiling, anything could still happen. Election Day also saw the unfolding of some arts policy stories at a local level, most significantly the passage of an important new income tax in Portland that will fund arts grants and arts education.

Honorable mention:

• Kickstarter vs. the NEA
• Pussy Riot causes an international sensation
• The Chicago Cultural Plan
• “Set in Stone” questions conventional wisdom around cultural facilities
• The Cultural Data Project leaves home

Happy New Year to Createquity readers far and wide, and we look forward to what 2013 brings!

The big news last month was the campaign for and passage of a millage (property tax) in Detroit to support the beleaguered Detroit Institute of the Arts. Hyperallergic’s Jillian Steinhauer and ARTSBlog’s Kim Kober are celebrating the new legislation, which passed easily in Wayne and Oakland counties but only by a hair in suburban Macomb. The DIA took the campaign very seriously, spending an astonishing $2.5 million on raising awareness and getting out the vote, despite facing little organized opposition. It’s clearly a victory for hard-nosed arts advocacy, but I only wish that victory (and the resulting tax revenue) could have paid dividends for the entire arts community rather than a single institution, as it does in places like San Francisco, Denver and Cleveland. If other arts institutions follow suit, as Terry Teachout suggests, we could end up with an extremely unhelpful patchwork of government support for the arts whose lack of flexibility is written into the law. On the other hand, the voters in Detroit and environs have spoken, and it’s a meaningful testament to the DIA’s community relevance that this measure was able to pass. Indeed, attendance at the museum has jumped (at least temporarily) since the vote was taken. (Nina Simon, Diane Ragsdale, and Maria Vlachou have more.)

The first draft of the much-ballyhooed 2012 Chicago Cultural Plan has been unveiled. Conducted by Lord Cultural Resources for the Chicago Department of Cultural Affairs and Special Events, the plan contains a mind-bogglingly ambitious raft of recommendations for the city’s next few decades, based on participation by about citizens in four town halls, about 20 “neighborhood cultural conversations,” meetings, interviews, and online. All in all, about 3,000 people have participated, according to the draft. This extensive process produced 36 recommendations and hundreds of potential initiatives, which, if collectively adopted, would add tens of millions of dollars to the city’s annual investment in the arts. The reaction so far has mostly focused on this level of ambition – as Chris Jones writes in the Chicago Tribune, “if half of the recommendations in the draft of the Chicago Cultural Plan — heck, even 5 percent of the recommendations — were implemented, Chicago would become an artistic nirvana without global peer.” It seems obvious that the initiatives are not intended to be implemented all together – but it seems like an effective plan would prioritize specific actions in a clear sequence, not just present a gigantic brain dump of options. There are other criticisms as well – most notably, the Chicago Reader points out that “nine of the ten priorities and 33 of the 36 recommendations are updates or restatements of items in the original Chicago Cultural Plan, commissioned in 1985.” The final version of the plan is due to be released this fall. There’s more reaction and commentary – not all of it negative – from Kelly Kleiman, Elysabeth Alfano, Tanveer Ali, and Philip Hartigan.

In other local news, the Fort Worth (TX) Arts Council has had its budget cut by 25% as a result of recent financial issues for the city.  By contrast, there’s not much going on at the state and federal level. But remember the Kansas Arts Foundation, the nonprofit that was supposed to replace the Kansas Arts Commission after the latter’s budget was zeroed out by Governor Sam Brownback? Well, it ended up raising $105,000, but surprise surprise, has not made any grants.

INTERNATIONAL

The real action these past few months has taken place outside of the United States, and unfortunately most of the news has been bad. Europe’s financial instability is not surprisingly having an effect on government support for culture in countries suffering from high debt, particularly Greece, Spain, and Italy. Greece’s spending has dropped 35% since 2009, and in Italy,

[T]he Uffizi Gallery in Florence is renting itself out for fashion shows, and Rome’s MAXXI Museum has been placed under state receivership. The building opened just two years ago and was feted internationally for its splashy design by architect Zaha Hadid, but after its €7-million ($8.7-million) subsidy shrank by 43 per cent, the museum could barely cover staff wages.

In Spain, the Fundación Caja Madrid has closed 48 cultural centers around the country, and analysts fear thousands of creative sector jobs are at stake. The arts are feeling the pinch in some of Europe’s richer countries as well. After suffering through a cut of 25% last year, the Netherlands culture budget is looking at potentially losing another up to another 16 million euros to meet EU debt targets, and even Finland of all places is tightening its belt (while increasing funding for sports clubs).

In the South Pacific, Australia is in the midst of a major upheaval to its arts funding system. Following a review by two “corporate advisors,” the Australia Council for the Arts is restructuring many of its programs and considering doing away with its discipline-based peer review system that mirrors in many respects that of the National Endowment for the Arts. And speaking of transition, the UK is changing culture ministers (who apparently won’t be missed) and chairmen of Arts Council England (the new guy’s claim to fame is bringing the TV show Big Brother to the Brits). Just two years after sustaining substantial cuts, Arts Council England is facing the prospect of having its administrative structure decimated, resulting in the loss of up to 150 staff members by next July. But hey, at least ACE is pioneering a new program to help encourage more paid internships in the arts!

Meanwhile, the past couple of months have featured more than their share of repression of artistic statements by conservative governments. The recent cause celebre of free speech advocates has been the all-female Russian punk rock group Pussy Riot, who were sentenced to two years in a forced labor camp for staging a 45-second guerrilla art performance at an Orthodox church. Coverage of the initial sentencing was extensive, but Jillian Steinhauer has been keeping a close eye on the aftermath of the decision. Meanwhile, officials in the island nation of the Maldives have banned mixed-gender dancing altogether and discouraged any singing and dancing at government-sponsored events, deeming such activities contrary to Islamic values. And the right-wing leadership of Hungary has actually gone the opposite route, co-opting the government-controlled Budapest New Theater so as to promote performances of an anti-Semitic play.

Finally, three very sad stories from Africa and the Middle East show how art can be grievously impacted by the absence of a functioning government. First, in Mali, a gang of Islamic fundamentalists has wreaked havoc on the historic treasures of Timbuktu. In Somalia, a comedian (yes, a comedian) was assassinated by members of an extremist group in retaliation for his biting satire of said group. And in war-torn Syria, many museums, monuments, and historical treasures are either at grave risk or are already lost, recalling the disaster that befell Iraq’s cultural heritage following the American invasion in 2003. These tragedies may seem far away, but referring to the upheaval in Timbuktu, Delali Ayivor puts it in starker terms: “Imagine a group of people who make no apologies for desecrating your history, who revel in the destruction of your identity. Envision then, the sense of helplessness, the horror as you watch them dismantle the Statue of Liberty, the Lincoln Memorial, The Alamo, Ground Zero, as they set fire to Yosemite, set off a blast that decimates the Grand Canyon.” Yikes.

Sorry to be depressing! I wish I could tell you that there was some good news for arts funding coming out of the international arts community during this period, but there seems to be precious little to celebrate. Just one of those accidents of history, I guess.

ART AND THE GOVERNMENT

• Congratulations to the South Carolina Arts Commission, whose funding was preserved when elected representatives overrode Governor Nikki Haley’s veto of the commission’s entire budget. An additional veto that would have invalidated a one-time $500,000 increase for the commission was also overturned, so all in all the Arts Commission will see a significant bump in its budget this year. It’s the third time in three years that the Arts Commission has staved off an elimination threat from a South Carolina governor.

ART AND PLACE

• Hot on the heels of ArtPlace’s similar announcement, the 2012 Our Town grants have been announced. The geographic distribution is striking, and quite literally all over the map. In contrast to last year, there were no grants to New York City, Los Angeles, or any of the nation’s other largest cities with the exception of Dallas, and more than half the grants are going to communities with fewer than 50,000 people. The NEA also held a series of webinars about the awards, which have been archived and are available here.
• Richard Florida, Darren Walker, Rocco Landesman, and Dennis Scholl participated in a panel at the Aspen Ideas Festival called “Making Cities Sing.” Partial video from the event is here.
• In the wake of debates about whether Portland, Oregon is truly a creative class success story or not, Barry Johnson offers an interesting perspective on the role of the creative economy in that region.

MUSICAL CHAIRS

• Congratulations to Jacob Harold, program officer for philanthropy for the William and Flora Hewlett Foundation, who has been appointed the next president of GuideStar (succeeding Bob Ottenhoff). Harold had previously been on GuideStar’s board of directors, as well as a funder.

IN THE FIELD

• The Dayton Performing Arts Alliance, a first-of-its-kind amalgamation of the region’s SOBs (symphony, opera, ballet) into a single organization, is officially live. Good luck to them – it’ll be interesting to see whether the arts scene finds it easier to coexist with one performing arts behemoth instead of three.
• Congratulations to Americans for the Arts CEO Bob Lynch for being named one of the NonProfit Times’s Power & Influence Top 50 for the first time. Lynch is the only 100% arts person to make the cut, though Lisa Paulsen, president & CEO of the Entertainment Industry Foundation (which supports social and medical causes), as well as the leaders of the arts-supporting foundations American Express, Pew, and Knight, are on there as well.

ALL ABOUT THE BENJAMINS

•  The Philadelphia-based William Penn Foundation will retain its local focus, despite a recent infusion of money that has made it one of the largest foundations in the country.
• Barry Hessenius has an interview with the Knight Foundation’s VP of the Arts and man about town, Dennis Scholl.
• An interview with outgoing Hewlett Foundation Vice President (and #2 under Paul Brest), Susan Bell.

RESEARCH CORNER

• The Strategic National Arts Alumni Project, or SNAAP, has released its annual snapshot of arts graduates and their careers. SNAAP’s Sally Gaskill has more at ArtsBlog.
• Americans for the Arts held a blog salon for its Arts & Economic Prosperity IV report earlier this month. I tweaked the premise of AEP IV in the last Around the Horn, but I don’t want to take away from the fact that a lot of work on the part of many, many people went into creating it. Ben Davidson tells some of the behind the scenes tales, Maria Munoz-Blanco draws a picture of impact, and Createquity superfan Paul Tyler describes the power of mapping in Kansas City.
• Data alert: Nina Simon dissects her museum’s attendance growth over the past year.
• “Simply put, price seldom impacts demand in the arts.”

ETC.

• Stanford Social Innovation Review has an article about the value of “backbone organizations” in a collective impact context, based on the experience of FSG consultants working with the Greater Cincinnati Foundation. The article is in four parts: I, II, III, IV. It’s not the sexiest topic, but if you believe in the relevance of infrastructure to the arts, as I do, it is worth a read.
• More on the Collide@CERN project that Shane Crerar wrote about for Createquity earlier this year.