Topic: Cuyahoga County: New Tax to Support the Arts

[3231]

http://www.cleveland.com/entertainment/plaindealer/index.ssf?/base/entertainment/1148114054243910.xml&coll=2
Arts tax issue likely to make November ballot
Another attempt to raise public money for the arts will likely turn up on Cuyahoga County ballots this November.

By Carolyn Jack
Plain Dealer Reporter
To reach this Plain Dealer reporter: cjack@plaind.com, 216-999-4739.

[blinker12]

Can't believe no one has commented on this! This would be great for the city and county. I think it stands a very good shot of passing.
(I also hear through the grapevine that it will in fact be on the ballot.)

[8ShadesofGray]

The levy is now officially on the ballot. The campaign is now also officially underway, being coordinated by the Arts & Culture Action Committee (acac2006@gmail.com).

[8ShadesofGray]

And some more ... you can view Channel 3's coverage of the levy at http://www.wkyc.com/news/news_article.aspx?storyid=54235. Channel 3 also conducted a poll of 500 Cuyahoga County residents (but didn't note whether these were registered voters, likely voters or just citizens at large) - I've included their article below. Slightly fuller results of the survey can be seen at http://www.surveyusa.com/client/PollReport.aspx?g=5db00705-e8db-45ea-aca9-a52e7f2968ad. Support was highest among 18- to 35-year-olds and Latino respondents, but differences by gender, age and race were all well within the margin of error, with the exception of respondents who identified themselves "Other Race" (who overwhelmingly opposed the tax ... my natural guess would be that this was a very small sample of the 500 respondents).

Survey: Voters split on cigarette tax
Dick Russ   

Cuyahoga County voters are split on the idea of taxing cigarettes to fund the arts.
The same number of Cuyahoga County residents who voted to raise taxes to fund the arts two years ago, consider a similar new proposal to be a good idea.

[buildingcincinnati]

I would be against this because the tax is only levied at smokers, the easiest target to sh!t on when a government needs a quick cash infusion.

But I don't live there, so my opinion doesn't matter much.

[zaceman]

nah id say youd be sh!tting on yourself if you smoke anyway, so whats 30 cents more for a pack of cancer sticks?

this is great news, the main reason for the opposition last time was the lack of clarity of what the issue was called and since it can be specifically for the arts this might have a shot now.

[buildingcincinnati]

nah id say youd be sh!tting on yourself if you smoke anyway, so whats 30 cents more for a pack of cancer sticks?

That does nothing to address my point.  (BTW...Smokers are human beings, too.  And if you want to pretend that smokers are the only people who make bad or destructive decisions in life, then go right ahead.)

What makes a tax against smokers only, which is then channeled into one specific project or program, fair?

[jamiec]

nah id say youd be sh!tting on yourself if you smoke anyway, so whats 30 cents more for a pack of cancer sticks?

That does nothing to address my point.  (BTW...Smokers are human beings, too.  And if you want to pretend that smokers are the only people who make bad or destructive decisions in life, then go right ahead.)

What makes a tax against smokers only, which is then channeled into one specific project or program, fair?

I don't think sin taxes are supposed to be fair, are they?

[X]

Make it a tax on downtown parking lots.

[Vulpster03]

I think these taxes on cigarettes are some kind of evil.  It is a shame the government is exploiting addicted smokers. It would be one thing if this tax revenue was directed at tobacco prevention programs in schools, anti-smoking campaigns, etc., but to put the burden of funding philanthropic projects that benefit the entire public on smokers alone seems morally repugnant. Very twisted public policy.

[Vulpster03]

Packs of cigarettes in Cuyahoga County are already about 90 cents greater than Lorain County.

[buildingcincinnati]

I don't think sin taxes are supposed to be fair, are they?

American sin tax laws date from the Puritans.  A true "sin tax" then, as now, is meant to discourage consumption.  If the tax has that stated goal and the revenue from the tax is used to address that particular issue, then it is indeed fair. 

That idea has been bastardized and sin taxes have become a revenue stream used to fund just about anything, which is easy to slip by the voters because the tax is presented as punishing socially unwanted behavior.  It's the first place any government goes when it has trouble making ends meet, because it's such an easy solution. 

Sin taxes were not meant to fund the arts, or stadiums, or God knows what else some of these taxes support.  That is decidedly unfair to a certain segment of the population.

Justice aside, I would think the county would look toward a more reliable revenue stream.

[LovesIt]

The arts > cigarettes, so I'mma vote YES!

[KJP]

We got a call at the office today from someone asking the question: is it taxation without representation that the majority (nonsmokers) may vote to raise taxes on the minority (smokers)? Interesting thought. I understand that smokers choose their activity, and thus choose to be the minority, but once they've chosen it, it's VERY difficult to stop.

[blinker12]

I think these taxes on cigarettes are some kind of evil. It is a shame the government is exploiting addicted smokers.

I'd say it's cigarettes themselves -- and more specifically the companies that produce them -- that are evil.
Since smoking is not only harmful to smokers themselves but to everyone who breathes their exhaust fumes, I'd say it's reasonable to ask them to contribute to the public good as a counterbalance.

[8ShadesofGray]

I'm a smoker who will be voting in favor of the levy. Granted, there seems to be little correlation between smoking and arts and culture. It may seem unfair to burden smokers with a levy that has little relationship to the actual "sin", but isn't it equally unfair that I, as a smoker, can adversely impact the health of those around me, not to mention drive up healthcare insurance coverage for my employer, reducing their profit margin and thus their ability to reinvest in further development, job creation, tax revenue, etc.?

At the very least, this is a democratic process. And let's face it, it is a quality-of-life issue and does have economic impacts. It may not be a major reason that companies choose to locate or not locate in our region, but it is certainly a factor. So it's no surprise that not only will there be a cigarette excise levy but also two indoor smoking bans on the ballot.

I certainly wouldn't ask that people support a levy that they don't believe in, but to me the tradeoffs are obvious. On the one hand, we'll generate $20 million in revenue for arts and culture organizations, increasing their ability to draw in tourism dollars, provide educational services and improve the overall brand image of Cleveland; at the same time, we'll reduce consumption of perhaps the deadliest legal product around, particularly among youths. For that, I think those of us who choose to smoke should be willing to shell out an extra 30 cents a day.

[FrqntFlyr]

It may seem unfair to burden smokers with a levy that has little relationship to the actual "sin", but isn't it equally unfair that I, as a smoker, can adversely impact the health of those around me, not to mention drive up healthcare insurance coverage for my employer, reducing their profit margin and thus their ability to reinvest in further development, job creation, tax revenue, etc.?

Since smoking is not only harmful to smokers themselves but to everyone who breathes their exhaust fumes, I'd say it's reasonable to ask them to contribute to the public good as a counterbalance.

I agree with both points above.  Namely, since it drives up state and local govt. healthcare costs which are paid by everyone's taxes equally, then I agree that it's reasonable to tax smoking as a sort of counterbalance.

[8ShadesofGray]

And one other thing. While I do think that taxes that disproportionately impact one segment of the population deserve closer scrutiny, we generate government revenue like that all the time! Boats, gasoline surcharges, real estate transfer fees, hospitality taxes - you name it, someone pays and someone else doesn't. When levies are property tax-based, they tend to be favored disproportionately by younger voters; When levies are income tax-based, they tend to be favored disproportionately by older voters. Why? As unfortunate as it is, most people recognize the social value of most levies but do not want their individual tax burden increased. I am certainly not a fan of seeking out tax revenues based on how small a minority they will impact. At the same time, however, I recognize that I often vote for levies knowing that someone else will foot the bill.

So here's my chance to step up to the plate, light up a cigarette and actually do something of paramount importance for our community.

[buildingcincinnati]

From the AP, 8/4/06:


Officials back tax on cigarettes

CLEVELAND (AP) — Mayor Frank Jackson and members of city council said Thursday they support a Cuyahoga County proposal to add a cigarette tax to boost funding for the arts.

http://www.vindy.com/content/national_world/313968239667247.php

[OompaLoompa]

We get taxed extra for performing at Pickwick & Frolic.  The city levies some kind of "entertainment tax" which I think was created to get revenue from big entertainers who come and perform here and make a lot of money from the local residents.  I sure hope they are doing something worthwhile with the $1.50 they get out of me every show...

[X]

You just bought a meter maid a pen to write you a speeding ticket with.

[Polis]

I wouldn't be against this if they also slapped a tax on alcohol not served at bars and restaurants but the city seems to think forcing taxes is a great way to make money.  I think that if there was a voluntary monetary donation on yearly taxes for the greater metro region it would bring in alot of revenue.

[MayDay]

^That wouldn't be such a bad idea - similar to the checkbox on the 1040 that asks if you'd like to donate a dollar to the presidential campaign fund (or whatever it says).

Btw, welcome to the forum

[Polis]

Thanks for the welcome.  I really do believe that voluntary donations would increase alot if some of our "unfair" taxes were reviewed and turned into donations instead.

[3231]

Thanks for the welcome.  I really do believe that voluntary donations would increase alot if some of our "unfair" taxes were reviewed and turned into donations instead.

I highly highly doubt that Clevelanders would choose to donate a sum of $20 million a year for the arts.

Additionally, why would you consider the taxes to be unfair if they are approved by a majority of voters?

[MayDay]

"Additionally, why would you consider the taxes to be unfair if they are approved by a majority of voters?"

I know it's not quite the same thing, but I can personally think of an ISSUE - ONE that isn't fair even though it was approved by a majority of voters

[Polis]

The point is to encourage the GREATER METRO AREA, as i mentioned above, to pitch in for Cleveland arts.   Also I put "unfair" in quotes to denote taxes that targetted groups see as unfair (i.e. smokers and sin taxes on cigs).  If this tax was passed and I was a smoker I would definitely head to the next nearest county and just buy a carton (assuming I smoked a pack a week or somewhere around those numbers) to avoid the tax.

[3231]

"Additionally, why would you consider the taxes to be unfair if they are approved by a majority of voters?"

I know it's not quite the same thing, but I can personally think of an ISSUE - ONE that isn't fair even though it was approved by a majority of voters

Oh, you and your people

[DaninDC]

I wonder if the County even looked at other sources of funding the arts before deciding to sock it to smokers again.  How do other cities fund their arts institutions?

[Map Boy]

Got this in an email at work:

Cuyahoga Arts & Culture Ballot Issue

 
Cuyahoga County’s Arts & Culture assets have brought world-wide recognition and economic strength to our region for generations.  The Arts & Culture sector is one of our most valuable industries, a critical factor in the creation and retention of good jobs, and a magnet that attracts visitors and new residents. 

There is nothing more important to the future of our region than growing our economy.  Our Arts & Culture organizations play an important role by providing jobs for today, and enhancing education for the workers of tomorrow. 

·        Our Arts & Culture sector generates over $1billion in annual economic activity

·        Arts & Culture is directly responsible for more than 3,000 good-paying jobs for our residents, along with    more than 7,000 more jobs in related industries

·        Arts & Culture improve proficiency test scores for our children and prepare students to compete for the jobs of the future so they can succeed

·        Every year, our children benefit from over 2 million unique arts and culture experiences provided by our local Arts & Culture sector’s award winning education and outreach programs.

 
But our Arts & Culture assets cannot continue to improve our region and our economy without reasonable and stable public funding.  Tough economic times have hit this sector hard, and the private sector can no longer serve as its sole source of support. 

The Cuyahoga County Commissioners have placed an issue on the November 7, 2006 ballot that will strengthen our critical Arts & Culture institutions.  Voters will be able to increase the tax on cigarettes by a penny and a half per cigarette throughout the county, and this money will create our only stable, public funding for the arts.  Money raised from this issue will support and strengthen vital arts and cultural assets county-wide. Regardless of location or size Arts & Culture groups and projects in University Circle, the Theatre District, North Coast Harbor, Gordon Square Cultural District, neighborhoods and suburbs will be eligible to receive funding.

Our arts and culture sector attracts visitors, creates jobs, and draws new creative workers to our region.  This fall, voter will have the chance to help keep our Arts & Culture assets – and our region – strong by approving a reasonable, sustainable source of public funding.

 
FREQUENTLY ASKED QUESTIONS
 

What does Arts & Culture contribute to Cuyahoga County? 

A strong Arts & Culture community improves our entire region.  The arts generate more than $1 billion in annual economic activity.  The Arts & Culture sector draws visitors and new creative workers to our region.  It is directly responsible for over 3,000 full-time, family-supporting jobs.  An additional 7,000 good jobs indirectly depend on the Arts & Culture sector. 

 

How does Arts & Culture help our children? 

Our children learn better when they are exposed to Arts & Culture.  Research shows that reading and math skills improve among students who participate in the arts, and proficiency test scores are higher, too.  Our children are better prepared to compete and succeed in tomorrow’s workforce when they participate in the arts.  Cuyahoga County’s children enjoy more than 2.5 million Arts & Culture experiences every year thanks to our world-class organizations. 

 

Why does the Arts & Culture community need reasonable, stable public funding?

Cuyahoga County’s Arts & Culture assets have brought pride and economic strength to our region for generations.  The Arts & Culture sector is one of our most valuable industries, a critical factor in the creation and retention of good jobs, and a magnet that attracts visitors and new, creative residents.  But our Arts & Culture assets cannot continue to improve our region and our economy without reasonable public support.  Tough economic times have hit this sector hard, and the private sector can no longer serve as the sole source of support. 

 

Isn’t there already a tax that funds the arts in Cuyahoga County?

No, there is no tax in this county that supports Arts & Culture.  The only current dedicated source of public sector funding, provided by the Ohio Arts Council, continues to erode. Over $4 million of state funding for Cuyahoga County arts and cultural organizations and projects has been lost due to budget cuts.

 

How much will this tax issue cost me? 

Unless you are a smoker, it won’t cost you anything.  The Cuyahoga County Commissioners have placed an issue on the November 2006 ballot that, if approved by voters, will increase only the tax on cigarettes by a penny and half per cigarette throughout Cuyahoga County.  This will generate approximately $20 million dollars every year that will be devoted to support of our Arts & Culture assets.  Taxes on cigarettes have been often been used an important tool in CuyhoagaCuyahoga County to improve our quality of life, and the Arts & Culture levy will help us do that, while also building our economy and enhancing education.     

 

How will the tax revenue be used?

The revenue from this issue will be administered by Cuyahoga Arts & Culture (CAC).  CAC is a local governmental body created in June 2005 through State of Ohio enabling legislation.  CAC will manage the allocation of funds to Arts & Culture organizations through an open and public review process.  Revenue from this cigarette tax will be used to create general operating grants and Arts & Culture project grants. Revenues cannot be used for any other purposes outside Arts & Culture support.

 

Which organizations will be eligible for funding?

Money raised from this issue will support and strengthen vital arts and cultural assets county-wide.  Regardless of location or size Arts & Culture non profit groups and projects, whether in University Circle, the Theatre District, North Coast Harbor, Gordon Square Cultural District, neighborhood and suburb organizations will have equal access to compete for funding

 

Do other counties across the country give public support to Arts & Culture?

Nationwide, many metropolitan counties have been challenged with a struggling Arts & Culture sector.  In order to sustain their Arts & Culture assets, these communities have created dedicated, local public revenue streams as a solution to sustain their Arts & Culture assets.  Without reasonable public support for our Arts & Culture sector, Cuyahoga County will lose one of our biggest competitive advantages, and we will fall further behind. 

 

 

 

Arts and Culture Tax Facts

>      Cuyahoga County Commissioners have the legislative authority to place on the November 7, 2006 ballot a cigarette excise tax in support of the County’s arts and culture sector.

>      The tax is equal to one and one half cents (1½ cents) per cigarette. A pack of 20 cigarettes would have a total tax of 30 cents per pack.

>      The levy can be in force up to 10 years.

>      By law, Ohio Revised Code (ORC) 3381, the proceeds from such a tax can only be used in support of arts and culture and can not be used for any other purposes. It would be a dedicated arts and culture public fund only in Cuyahoga County

>      If the ballot passes it is expected to yield in excess of $23 million annually. The County Commissioners would establish a base of $20 million that will be allocated annually for use by arts and cultural organizations primarily as general operational grants through the County’s Arts and Culture Investment Models as adopted by the Board of County Commissioners’ Resolution No. 040801.

>      The Arts and Culture Investment Models are a series of four competitive grant categories that include operating support, project support, artist education residencies and research support, and special initiatives or one-time emergency grants, e.g. fire damage, natural disasters. Debts or deficits would not be considered emergencies.

>      All grant category programs have published eligibility requirements.

>      All grant programs have published adjudication criteria.

>      All adjudication peer panels are comprised of arts and culture professionals from outside of Cuyahoga County as well as financial and community development professionals.

>      All adjudication panels’ deliberations are open to the public.

>      Only bona fide 501 (c) 3 non profit arts and culture organizations are eligible for the operating support category.

>      Organizations that apply for and are successfully adjudicated into the operating support category will receive annual operating support grant for three consecutive years before having to reapply

>      Operating support grants will be determined through a logarithm–based formula that establishes grant awards equal to approximately 3%, to no more than 25% of the revenues from an organization’s most recently completed fiscal year’s independent audit. The smaller the audited revenue the larger the percentage to calculate the grant. The larger the audit revenue the larger the total grant amount.

>      Organizations that are unsuccessful in the operating support category would be eligible to apply for project grants. 

>      Any arts and culture projects or programs currently being funded through the County’s general fund, such as the Arts and Culture as Economic Development grants (ACE); the Annual 4th of July Concert on Public Square and property maintenance agreements such as the Allen, State and Ohio Theaters, would be transferred from the County’s general fund and expensed to funds generated by the tobacco tax separate from the base of $20 million (approximately $3.0 million in additional expenditures).

>      If there are any funds in excess of the Base ($20M) and the current general fund arts and culture expenses ($3.0M), those funds would be subject to only arts and culture initiatives allowed by ORC3381 and the Cuyahoga County Arts and Culture Investment Models (grants programs).

>      The administrative authority that governs the grants making process is the Cuyahoga County Regional Arts and Culture District (RACD). It is a political subdivision of government (not unlike Metro Parks). The RACD was formed in June 2005 through ORC3381 by County Resolution No. 052402. The Cuyahoga County Board of Commissioners serves as the RACD’s board of trustees.

>      The RACD board appointed an advisory council that includes Steven Minter,  professor, Cleveland State University and retired president The Cleveland Foundation; David Bergholz, photographer and retired president, The George Gund Foundation; Jamie Ireland, principal, Early Stage Partners; James Levin, executive director, Ingenuity Festival; Gerri McClamy, executive director, Karamu House and Stephanie Morrison Hrbek managing director, Near West Theater.

[Vulpster03]

I certainly don't oppose the arts, and as a smoker I don't oppose funding them through this tax either. However I think this type of policy is dangerous and could do harm in the long run for both the arts community and smokers. As less and less people smoke due to natural trends and increasing prohibition of smoking in so-called public places, do we really want the general public or arts community to get addicted to this tax revenue? The future revenue stream from this tax just isn't very dependable, although it does help that those consumers generating this revenue are addicted to doing so. I suppose that twenty years down the road when there are even fewer smokers - smokers who are seriously addicted - it will be necessary and facile (for the arts) to escalate the tax per pack of cigarettes.

Do we want people to fund the arts or smokers to curb their habit? To think we can kill two birds with one stone in this instance is simply unfair.

[musky]

What will the economic impact be if/when there is a ban on smoking in public spaces?

http://www.smokefreeohio.org/oh/

[8ShadesofGray]

I wonder if the County even looked at other sources of funding the arts before deciding to sock it to smokers again.  How do other cities fund their arts institutions?

From what I understand, just about every tax model imaginable was tested for amount of revenue raised, longevity of funding available and likely voter approval. Other cities, counties and regions have levied a variety of taxes to support arts and culture - everything from property taxes to bed taxes to rental cars.

The future revenue stream from this tax just isn't very dependable.

I for one hope this revenue really does shrink over time. Even as a smoker, I recognize that it is a habit I don't want to see other people take up or (myself included) continue. The good thing, however, is that tobacco tax revenue is very predictable from quarter to quarter and year to year. After a tax increase, there is usually a very short dip in revenue generated, then a large increase in revenue and then it plateaus, with a steady, very slow decline over time. The good thing about this levy is that a lot of the revenues are aimed at organizations' operating expenses. Instead of encouraging organizations to launch new programs, this allows arts and culture groups to invest in becoming more efficient organizations. Over time, investments in operations can lead to increased earned income and decreased expenses, meaning the recipients will not be as dependent on the tax revenues.

I know this levy has gotten slapped around a lot, and I understand if people have ideological differences with it, but from everything I've seen, a LOT of care has been taken in reviewing these issues and in ensuring as much accountability as possible. And for those of you who are feeling like a particularly in-depth look at this process, you can check out the arts and culture investment models that the Board of Commissioners approved in 2004: www.cuyahogacounty.us/bocc/pdf/AC_Models.pdf. This will give you an idea of the types of things that might be funded and the competitive processes they would use.

[8ShadesofGray]

The arts levy now has a website up and running. It covers a LOT of information and addresses a lot of the questions raised in this thread. http://www.cuyahogaartsandculture.org/

[blinker12]

Arts-funding issue gets a number

4:16 p.m. Tuesday, Sept. 12, 2006

Carolyn Jack
Plain Dealer Arts Reporter

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