April 1- 7, 2004

slant

Pound Foolish

A penny-wise approach to arts funding is wrong.

by Peggy Amsterdam and David Thornburgh

In response to Philadelphia’s projected budget shortfall of $227 million, Mayor Street is proposing to slash the city’s arts and culture budget by $4 million. In tough times, it may be tempting to think that investing in the arts is frivolous. Wrong. Culture is one of Philadelphia’s defining economic strengths, and the last thing we can afford to do right now is make hasty budget cuts that place the city’s economic future at risk.

The reason for the current budget shortfall is fairly clear: we’ve lost population and jobs. That erosion of the tax base makes us vulnerable to economic cycles. Which is why government leaders and civic groups such as the Pennsylvania Economy League, Innovation Philadelphia and the Knowledge Industry Partnership have been leading the charge to re-energize our economy by capitalizing on our strengths. And all of these groups consistently have agreed that culture is key to the region’s economic recovery.

So, as we consider the wisdom of cutting arts and culture funding, let’s do some simple cost-benefit analysis. (Figures taken from a 1998 Pennsylvania Economy League study, a 2004 study by Sovereign Bank and the metropolitan Chamber of Commerce, and a 2002 report from the Social Impact of the Arts project out of the University of Pennsylvania’s School of Social Work.)

Costs

• Cultural funding represents 0.0012 of the city's $3.3 billion budget -- or 12 cents on every $100

Benefits

• The cultural sector generates $564 million of spending

• The cultural sector returns $6.5 million in tax revenue to the city of Philadelphia

• The cultural sector produces 11,300 jobs

• Between 1995 and 2000, the average sale price of a home in Philadelphia increased by $10,000. In neighborhoods with many cultural organizations, the average increase was nearly $30,000

• During the 1980s, neighborhoods with an active arts scene were nearly three times more likely to see their poverty rates decline and their populations increase. This trend continued in the 1990s and into 2000

• Among low-income neighborhoods, those with high levels of cultural participation were five times more likely to have very low levels of delinquency and three times more likely to have very low rates of truancy

• Both business leaders and residents rated cultural attractions as one of the top three regional strengths

• 57 percent of young college graduates living or working in Center City see Philadelphia's arts and cultural events as a comparative strength versus other cities

• The Cultural Fund provides critical support to more than 200 arts organizations

• Philadelphia has one of the oldest and largest collections of public art in the country. If the City Office of Arts and Culture is eliminated, what will happen to our wonderful fountains and sculpture? Who will care for the ongoing conservation and maintenance of this collection?

The Bottom Line

Fixing our current financial woes will take more than budget cuts, it will also require strategic economic development. That means building up our core strengths, not tearing them down. And few investments yield the kind of return we see from the $4 million that the city invests in its cultural industry through the Cultural Fund. The bottom line is that Philadelphia's modest investment in culture yields huge economic and social dividends. Slashing the fund will only widen the budget shortfall in future years.

What's Next?

We still have an opportunity to get the funding back. City Council will have hearings until May 10. Many of us will testify at the hearings. But all City Council members are waiting to hear from their constituents. If you are interested in the future of this city, if you attend cultural events or participate in the arts, or if you just care about the reputation of Philadelphia as a great city, feel free to write to your City Council representative and express your disappointment with this proposal.

Peggy Amsterdam is president of the Greater Philadelphia Cultural Alliance. David Thornburgh is executive director of the Pennsylvania Economy League, Eastern Division. If you would like to respond to this Slant or have one of your own (850 words), contact Howard Altman, City Paper editor in chief, 123 Chestnut St., third floor, Phila., PA 19106 or e-mail altman@citypaper.net.

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