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Prop E diverts hotel room tax revenue to fund the arts
Published on 10/12/18, 10:00 AM
This measure would earmark about $35M a year to fund arts and cultural programs.
I like pretty things
The City does too. Back in 1961, SF established a hotel room tax to help fund its arts industries. Due to an economic downturn in the early 2000s, however, the City reduced and eventually eliminated parts of its arts budget. This year, the BoS unanimously voted to put Prop E on the ballot in order to allocate 1.5% of SF’s now 14% hotel room tax to fund arts and cultural programs again.
The prop would generate at least $35M a year to specifically fund:
The prop would generate at least $35M a year to specifically fund:
- Nonprofit cultural organizations ($16M)
- Cultural equity arts programs ($16M)
- The Arts Commission ($3M) to assist cultural center operations
- The Mayor’s Office of Housing and Community Development for Cultural Districts ($3M) to address destabilization for residents living in those areas
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Why do we need a ballot initiative to fund the arts?
Technically, we don’t. Prop E doesn’t raise taxes or generate additional revenue, so the Mayor and BoS could allocate similar funding through SF’s annual budget process. They’d be able to adjust annual funding for the arts based on emerging priorities and challenges.
But an aspect of working through the City's budget process is that programs might get cut or defunded over the years, like what happened in the 2000s. As a voter approved initiative, Prop E would enshrine the $35M/year for arts and cultural programs in the City’s tax code so that the BoS can’t divert the funding for other purposes. If it passes, any budgetary or legal amendment to Prop E's policies would require voter approval.
But an aspect of working through the City's budget process is that programs might get cut or defunded over the years, like what happened in the 2000s. As a voter approved initiative, Prop E would enshrine the $35M/year for arts and cultural programs in the City’s tax code so that the BoS can’t divert the funding for other purposes. If it passes, any budgetary or legal amendment to Prop E's policies would require voter approval.
Tell me about the downsides
Prop E reallocates $35M/year into a set-aside fund for the arts, but SF already has 19 set-aside mandates, more than any other large city in CA. To put it into perspective, LA has two. These set-aside funds make up 30% of the City's $5B general fund, which is the City's source of discretionary funding.
Prop E funding hasn't been chillin' in City Hall's Venmo account either. Rather, it's been funding other priorities previously passed by voters. For instance, at least $8M would have to be reallocated from funding public transit, youth services, libraries, schools, and other services.
Prop E funding hasn't been chillin' in City Hall's Venmo account either. Rather, it's been funding other priorities previously passed by voters. For instance, at least $8M would have to be reallocated from funding public transit, youth services, libraries, schools, and other services.
But it's the arts!
Word. Over 70 organizations worked with the BoS to craft and support Prop E, and the initiative has been endorsed by organizations ranging from the United Educators of SF to the LGBT Democratic Club.
More reading
No on Prop E
SF Examiner
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Pretty much all rights reserved © By The Bay 2018
Pretty much all rights reserved © By The Bay 2018