FEDERAL

Beyond the official departure of Rocco, it’s been a slow news season at the federal level for the arts. One series of developments, however, has involved the Internet Radio Fairness Act, or IRFA. If you listen to Pandora (as I do), you might have heard advertisements in the fall urging action on this bill, which would lower what Pandora claims are high rates it has to pay to rightsholders in order to broadcast their music. Trouble is, the royalties that artists actually receive from Pandora and other streaming services are already extremely shitty, so as you can imagine artists aren’t a huge fan of this one. After a hearing that didn’t go well for IRFA, the bill is shelved for now – but may be re-introduced under a new name this year.

STATE AND LOCAL

Appropriations season has begun for state arts councils, and we are getting an early look into how things might go this spring through the stories that are developing now. Overall, there’s some of the usual attempts to cut budgets, but they don’t seem to have the same teeth as in previous years. Two years after Kansas temporarily zeroed out the budget for its arts council, a proposal to gradually eliminate funding for the state arts council in neighboring Oklahoma is thankfully dead in the water. In South Carolina, Governor Nikki Haley is trying to mess with the state arts commission yet again, though she has given up on doing away with the agency’s grant budget and only wants to get rid of its staffing (how she expects the grants to get awarded without a staff is anyone’s guess). And the California Arts Council is set to lose about $160,000 per year it was getting from donations via California taxpayers’ tax returns.

Meanwhile, as we know, states support the arts through other means besides direct funding. For years, many states have offered tax credit to lure film studios; now, several are trying to do the same with Broadway productions. Illinois passed a law just over a year ago allowing shows such as the Cyndi Lauper musical “Kinky Boots” to receive a tax credit for previewing in the state before hitting New York. Louisiana and Rhode Island have similar legislation on the books. Now Massachusetts wants in on the act as well, though Jeff Jacoby sees trouble down that road.

On the local front, after a millage (property tax) measure to support public art in Ann Arbor failed in November, the city council has voted to suspend the existing public art program so that it can be retooled, hopefully to allow more flexibility in how the funds are spent. At Oregon Arts Watch, Barry Johnson gives an incredibly in-depth account of how Portland’s more successful ballot initiative came to pass (literally) – a must-read for anyone involved in arts advocacy. And ticket sellers take note: Maryland’s highest court has ruled that Ticketmaster’s annoying service fees amount to scalping – in violation of a Baltimore ordinance outlawing the sale of tickets above their face value.

INTERNATIONAL

Great news coming from Toronto, as a billboard tax that advocates have long sought is now going to be diverted toward the city’s arts funding. The tax will eventually bring in $22.5 million per year, boosting the city’s cultural budget by nearly 50% over current levels. It probably doesn’t hurt that arts funding enjoys overwhelming support in Canada, with 87% of respondents to a recent poll saying that government should place a “moderate amount” to a “great deal” of importance on the arts.

Over in merry England, though, things remain chaotic. Arts Council England’s budget will fall £11.6 million between now and 2015, on top of much more drastic cuts enacted in 2010. Meanwhile, multiple cultural leaders in the UK are under fire from the arts community there, including British Culture Secretary Maria Miller. A backlash against the policies of Creative Scotland got so bad that its head, Andrew Dixon, resigned in disgrace. Through it all, England’s cities are facing crushing budget crises: Somerset has already cut its entire culture budget and Westminster is threatening to do the same. The biggest city to contemplate 100% cuts to arts funding was Newcastle, but shadow culture secretary Harriet Harman has stepped in at the 11th hour to prevent that from happening.

Further afield on the Continent, the Netherlands’ arts scene is reeling from budget cuts totaling €470 million, a huge amount for this tiny country. According to the article, “about 40 of the 120 cultural arts organizations in the country became ineligible for federal grants this year. Some of them have been able to secure financing from other sources, but at least two dozen had to fold at the beginning of the year.” Head-scratching policies include a rule that no more than one dance company can be supported per city, leading to the closure of the country’s premier modern dance group, Dansgroep Amsterdam. But hey, at least a tattooed composer and performing arts professor ran fifth in the presidential election of the country that brought you Vaclav Havel!

Recently, Brazil made headlines by promoting a new government policy that gives workers earning up to five times the minimum wage the equivalent of $25 a month to spend on cultural purchases. Ninety percent of the bill is footed by the employer, with the remaining 10% coming out of the worker’s pocket, so it’s like one of those Groupons where you pay $2.50 for a $25 gift card. (The employer expenses are offset 1:1 by tax credits, so it’s still effectively a government subsidy.) The workers really do get a card, which is controlled so that it can only be spent on cultural purchases. Joe Patti wonders why something like this couldn’t work in the United States, although Maria Vlachou isn’t convinced the measure is solving the right problem. For my part, the idea reminds me of my old proposal for income-sensitive tickets (that I think is perhaps worth a revisit).

Finally, we’d written previously about the ongoing tragedy in Mali as Islamist militants took over much of the northern part of the country, threatening artists and destroying cultural heritage sites. Thanks to France’s military intervention, the rebels were driven out of the ancient city of Timbuktu last month, but not before they set fire to two libraries containing thousands of manuscripts from medieval times. The materials presumed destroyed include an ancient history of West Africa and texts on astronomy, poetry and medicine dating back to 1204. There are lots of items that survived the conflict because they were hidden away from the rebels, but it’s still a terrible loss. Meanwhile,  UNESCO has announced that it will help to rebuild Timbuktu’s destroyed mausoleums using local mud-based materials and the buildings’ original plans.

• A professor’s quest to overturn a portion of the Digital Millennium Copyright Act (DMCA) that placed certain foreign works back under copyright after they had already entered the public domain appears to have reached an end.
• The Commonwealth of Massachusetts is thinking about trying out social impact bonds.
• Looks like there were some shenanigans behind the construction of the High Line, NYC’s well-known elevated park. Reminiscent of James Gray’s The Yards, if anyone saw that movie.

ART AND THE GOVERNMENT – INTERNATIONAL

• The three museums of Abu Dhabi’s $27 billion cultural district have had their openings pushed back to 2015-17.
• The Danish government has merged three national agencies – the Danish Arts Agency, the Heritage Agency of Denmark, and the Danish Agency for Libraries and Media – into one Danish Agency for Culture.
• Good news: cultural funding survives intact in Toronto.

ALL ABOUT PHILANTHROPY

• GiveWell details how charity regulations in various countries make donating to top-rated international charities more difficult than it should be.
• The Craigslist Foundation is shutting down.
• Most foundation leaders have trouble converting evaluation results into “meaningful insights.”

IN THE FIELD

• More on Opera Boston’s sudden demise late last year.
• Bye bye Detroit Children’s Museum.
• Yikes! longtime conductor, author, and inspirational TED talker Benjamin Zander was let go by the New England Conservatory this month over a cover-up involving a videographer who was a convicted sex offender, as NEC clearly wanted no part of any Joe Paterno/Jerry Sandusky redux.
• LA Opera joins those trying out the dynamic pricing route.
• Interesting new curator time share model being pioneered by the Detroit Institute of Art and the Nelson-Atkins Museum of Art.
• When the IRS dumped hundreds of thousands of organizations from the nonprofit rolls last year, people hardly batted an eye – mostly because they assumed those organizations (who had failed to file required forms for three years in a row) were either no longer active or not accomplishing any good if they were. Yet my cultural asset mapping work has suggested that at least some of those organizations who had their tax-exempt status stripped were real and continuing to provide public programs. Thomas A. Kelley provides one such example in this account of an African American community center that is fighting to get its nonprofit status back.
• Jerome Weeks notes the difficulty that Dallas-area arts organizations are having with recruiting top leadership talent, and correctly follows the breadcrumbs to the lack of attractive opportunities for earlier-stage arts professionals:
  

  Jose Bowen says one reason the pickings remain thin is that the starting jobs for arts management graduates generally don’t pay well. And the punishing costs of college don’t help, either. Bowen is dean of SMU’s Meadows School of the Arts. It’s one of the few that offers a double master’s degree in arts management – in the arts and business administration.

  Bowen: “Our students graduate and are immediately faced with a choice. Come work for Goldman and make more money or go work for a nonprofit and make less money. And when you have loans, right out of school? That’s a hard choice to make.”

  It’s really very simple, people. If senior leaders with demonstrated records of accomplishment don’t want the job, it’s time to consider either senior leaders without demonstrated records of accomplishment, or junior leaders who haven’t had a chance to demonstrate accomplishment yet. If arts professionals below the leadership ranks are never given an opportunity to take initiative, manage people, or own projects in their roles, they’re never going to be in a position to fill those positions effectively, after the person who did so for so long is gone. And that’s assuming they stick around on low salaries waiting for their big break. Something to think about.

BIG IDEAS

• I’ve been wondering for a while about the effect on the bottom line that election season must have for struggling traditional media companies – especially in the wake of the Citizens United decision. Well, Dave Copeland takes that thought further and notes how well-positioned online audience gatekeepers – such as Google – are to benefit from campaign ads.
• ArtsJournal hosted one of its blog debates last week called Lead or Follow, featuring Diane Ragsdale, Michael Kaiser, and others.  Doug McLennan continues to experiment with the form of these fora, and though I don’t think he’s quite nailed the perfect formula yet, the process is fascinating to watch. As background to this conversation, the Wallace Foundation published 54 stories of audience engagement arising from its Wallace Excellence Awards grant program from the previous decade, as well as four more in-depth case studies on its own site.
• Is your brain constantly bloated because it’s trying to take in too much information? Maybe you should go on an information diet! Beth Kanter reviews what looks to be an important book for folks like me who are constantly trying to drink from the fire hose.

RESEARCH CORNER

• Add a feather to Randy Cohen’s cap: the Americans for the Arts researcher’s National Arts Index project has inspired an imitator across the pond, the UK Arts Index. (h/t Mark Robinson)
• Kickstarter is out with its annual project stats. Kickstarter projects attracted nearly $100 million in pledges in 2011! Also of note, the number of high-volume donors (people who contribute to hundreds of projects a year and presumably seek them out as a kind of hobby) is growing.
• Nonprofit Finance Fund is conducting its fourth annual survey of nonprofits, analyzing how they are responding to and recovering from the financial crisis. The survey is anonymous and takes 10-15 minutes to fill out, and they’re looking for as many respondents as possible. They are taking responses through February 15 and you can participate here.
• Look out, American Red Cross! GiveWell is on the warpath to get you to release your evaluation of your own organization’s relief efforts in Haiti.

ETC.

• We haven’t had any silly links in Around the Horn for a while. Well, that’s about to change…

The third-party consulting firm was hired by Mayor Ford at a cost of $3M to review services and recommend budget reductions. Those who have scanned the report have reasonable cause for alarm as KPMG systematically explores cutting pretty well anything that isn’t deemed mandatory or essential and therefore within the power of the city to cut. The report then rates each item in terms of its savings potential, risk and possible barriers. Seven service areas were reviewed including Infrastructure and Public Works, Economic Development and Culture, Parks and Environment, Community Development and Recreation, Licensing and Standards, Governance and Management, Planning and Growth Management and Executive Committee.

Service areas were measured against a handpicked control group of cities and other governments to determine whether Toronto services were being delivered below, at or above standard. Any service that was deemed to be “above standard” as compared to the control group was marked as “opportunity for savings”. Suggestions included things like reducing recycling targets, eliminating water fluoridation, further privatizing garbage collection and “reducing the number of subsidized child care spaces over time to eliminate 100%”. KPMG also proposed eliminating the Community Partnership and Investment Program (CPIP), which contains the budget for the Toronto Arts Council, as well as other cultural and social services with a total budget of $47.4M.

The report for the Economic Development and Culture Committee is available here (see pages 11-13 for the discussion on Cultural Services), with some additional background at this link. A few reactions, if you’ll permit me:

1. WTF?!
2. Although I’m sure it’s not the first time it’s happened, this is the first time I’ve heard of pressure on arts budgets (to say nothing of elimination talk!) coming from third-party professional consulting firms rather than originating from within government.
3. While KPMG, to its credit, recognized that such cuts would “impact the cultural vitality of Toronto,” it’s disappointing to see that the firm did not see culture as part of the solution to the city’s economic circumstances. The fact that cultural services were situated within the economic development agency appeared to be lost on them. (Not that it would have made a difference; two pages earlier, the firm incomprehensibly recommended considering cuts to business services even though “these steps will impact the Toronto economy.”)
4. The entire study appears to rest on a questionable assumption: that if a city provides services at a high level relative to other cities, that city should automatically consider reducing those services. What if that high level of services is an integral part of the city’s competitive advantage? Should Orlando cut back spending on airport infrastructure because Buffalo is spending less? Even so, in the case of the arts, the report noted that Toronto’s spending was less per capita than other cities – and yet recommended cutting them anyway.

I’m glad that we have infrastructure and programs in place as a field to educate policymakers about the importance of arts and culture in their communities. It seems that we may have some work to do on consulting firms as well.

[UPDATE: Russell Willis Taylor writes in with a couple of additional tidbits: first, that KMPG’s advice here seems in tension with its corporate sponsorship strategy in DC; and second, that KPMG got hired to design a library grant funding program for the South African Department of Arts and Culture. Included in the latter report is a recommendation “that the revenue-generating ability of the responsible sphere of government, provincial in this case, is further developed…in the absence thereof public libraries, especially those in previously disadvantaged communities, cannot thrive without national government funding in the foreseeable future.” You don’t say?]