Sales Tax Proposal Would Support Arts and Culture Sectors

Veronica Kenny-MacPherson | September 1, 2019

Sales Tax Proposal Would Support Arts and Culture Sectors

Our September 9, 2019 Arts & Culture Lunch & Learn held at the Levine Museum of the New South marked the successful return of the WIF Lunch & Learn series! Members enjoyed a sold-out event featuring Mecklenburg County Manager, Dena Diorio, and new Arts & Science Council (ASC) President, R. Jeep Bryant. Past WIF Board Chair, Arrington Mixon, moderated the discussion which covered a range of issues including the history of how the arts and culture sector has been funded in Mecklenburg County over the last few decades and the positive impact of the sector on our community and local economy. Diorio and Bryant responded to thoughtful questions from our members about the upcoming referendum on the ballot November 5, 2019 to add a quarter-cent to Mecklenburg County’s 7.25% sales tax, proceeds of which would help fund the arts, parks, and education. (Diorio began her discussion by stating the goal of their presentation would be to educate our group on the benefits of the referendum rather than to advocate for it.)

During the 1980s and 1990s, arts and culture received significant public funding from Mecklenburg County. Diorio and Bryant described how this changed after the 1996 controversy surrounding the play, Angels in America. County Commissioners decided to cut all funding to the arts and the ASC became an important source of unrestricted operating support for arts and culture organizations. ASC primarily raised its funds through corporate workplace giving programs in Uptown Charlotte. Those giving campaigns declined dramatically after the 2008 recession and never recovered.

Over the last four years Mecklenburg County has returned to arts funding through Culture Blocks which connect communities with responsive arts, science, and history experiences close to where residents live. The County also funds Charlotte Mecklenburg Schools (CMS) which uses some County funds for arts in the classroom and cultural experiences for students. Diorio emphasized Mecklenburg County’s focus on equity within the arts and culture sector, both in terms of geography and reaching all constituencies. Funding the arts is a function of local government in other cities, as described by Diorio, with some cities having a Department of Cultural Affairs.

Arts have a huge impact in our community. Bryant cited the 2017 study by Americans for the Arts which found three million people had an arts and culture experience over the course of a year, more than all sports events combined. In addition, arts and culture groups, venues and events contributed a $359 million in annual economic activity in the greater Charlotte Mecklenburg region, including jobs, spending and tax revenue.

If the proposed sales tax increase is approved, it is estimated to generate $50 million annually according to Diorio. The largest portion of the funds, 45%, will be allocated to arts and culture, with the remainder going to parks and greenways (34%), CMS Schools (16%) and non-Charlotte towns in the county to be used for arts projects and parks (5%). Diorio mentioned a number of interesting projects that the towns had already proposed should the vote be approved. She also pointed out the need for strong public accountability for these funds. A new governance structure would be put in place for the ASC including board members from among the County Commissioners and City Council. The County Commissioners would have a contract with ASC regarding the use of the public funds. The ASC’s role would be to administer the grants to local organizations from sales tax receipts, and would cease raising funds from the community. ASC would no longer implement any of its own programming to avoid any conflict of interest. ASC programming would be transferred to existing or new nonprofit organizations.

When asked if other funding models had been considered, Diorio shared that the sales tax was selected because it is paid by visitors to the County as well as residents, so it broadens the base of support. Alternatively, a property tax option would have drawn support only from Mecklenburg County property owners.

Regardless of the outcome of the referendum, the need for direct support to arts and culture organizations will remain critical. WIF is proud to be an important funder of the arts in Mecklenburg County, awarding $963,000 in grants to 13 local arts and culture organizations since 2007. Asked about how WIF can think about funding the arts in the future, Bryant suggested we think about making a two to four-year commitment to an organization to improve their capacity for fundraising, marketing, and audience development. He also recommended that operating style grants could be quite valuable to these organizations.

One of the clear messages from our focus groups in the spring was a desire for more Lunch & Learn events. This was the first of five each focusing on one of WIF’s grantmaking areas. Lunch & Learn aims to educate our members about important community issues through a one-hour format, lunch provided.

Mark your calendars for our next Lunch & Learn on November 6, 2019, The Changing Face of Affordable Housing.