Has the Burden Become Too Heavy?

Cleveland has an overabundance of institutions – from sports to the arts to foundations to establishments of all kinds. We are an institutionally heavy community, the legacy of a wealthy past.

The problem with the blessing of having all these establishments is that they must be fed. The feeding comes from public monies from the local, county, state, federal, and from private funds, all could be used for other needs.

So they sometimes become, instead of assets, burdens to the public. And we keep adding to the burdens. They’re getting heavier and heavier, especially at the local level.

The latest, of course, is the increase of a quarter percent in the sales tax levied without public input by the County Commissioners for the proposed medical mart and convention center.

Before that it was the creation by vote of a new cigarette tax for the arts.

The question is when do we go over the line in taxing? I believe we passed that line long ago. Here’s what cigarette smokers in Cuyahoga County alone face.

They have paid $80,358,035.32 in just cigarette taxes for Gateway. Yes, that’s $80 MILLION not counting taxes for alcoholic beverages and not county the sales tax on the total.

They have paid thus far $9,157,105.66 for Browns Stadium, as of the end of last month. The tax started in August, 2005

They have paid $22,551,218.99 for the arts and culture tax, as of the end of April. The tax started in February, 2007. All figures are from the County Auditor’s office.

Thus, poor old Cuyahoga County smokers have paid $112,066,359.97 for the three cigarette taxes levied in Cuyahoga County. A $112-million is a lot of coughing up.

The cigarette tax for arts/culture will continue at a cost of more than $15 million a year. The cigarette tax for the Browns stadium continues also until 2015, unless it is once again extended.

As I asked on the RealNEO web site, why should smokers – usually working people and often the poorer segment of the community – have to endure so much of the tax burden for these community “needs?” The only answer is the ease our politicians find in passing taxes onto lower income people. They avoid like the plague taxes on luxury items that would hit the wealthy.

Why not, for instance, a surcharge on the income of all County residents above a high figure that would eliminate most people?

Wouldn’t that be a fairer tax than the cigarette tax?

Of the taxes mentioned above, only the tax for Gateway has ended. However, a 10-year extension of the sin taxes continues to raise money for the Browns stadium.

I’ve listed below the arts organizations that shared in the first allotment of the cigarette tax for Arts and Culture. The larger organizations lead in obtaining the largest gifts, though the largest cultural organizations have the ability to fund-raise from private wealthy individuals and foundations. Some argue, however, that they are also the organizations that have the largest budget needs.

A good example is the request from “civic leaders” for large sums of money for this area from the state capital fund this year. The Cleveland Museum of Art tops the list at $10 million followed by the Rock & Roll Hall and a Playhouse Square theater for $3 million and $5 million respectively. All three also are recipients of cigarette tax money. Only one neighborhood project is on the list of 10 for this state funding.

Who makes these public decisions of what projects should be funded? First, understand that they are made in private.

The selections are made, as mentioned by Crain’s Cleveland Business, by “civic leaders.” Actually the decision is made by Greater Cleveland Partnership, Cleveland’s corporate lobbying group, thereafter with compliant concurrence of Mayor Frank Jackson and, of course, the three County Commissioners.

Some artists may have thought that the cigarette money would fund individual artists. Not so. Even many smaller arts organizations won’t be able to receive the tax funding since they don’t have the capacity or non-profit standing required.

We don’t know either whether the tax funding will allow private funders to duck contributions, shedding their private burden.

Karen Sandstrom of The Plain Dealer recently raised that question, warning of a possible backlash. She wrote: “But if there’s a fear out there, many say it’s of a cigarette tax backlash effect – that corporate donors, individuals and even foundations will reduce their contributions because they believe the tax now provides all the money arts organizations need.” Her article can be found here.

We can thank County Commissioners Tim Hagan, Jimmy Dimora and Peter Lawson Jones for giving corporate interests the ability to shift these costs to ordinary citizens. They are always willing to help corporate friends and contributors.

The larger arts and cultural organizations are able to obtain financing from the city’s many foundations. For example, the Cleveland Orchestra, which is managed by the Musical Arts Association, got $2.3 million in 2005 alone from the Cleveland Foundation. The music association has $159-million in assets. The Gund Foundation contributed $500,000 and the Kulas Foundation gave $1,222,500 (2006) and lists the orchestra for another $2 million (2007-2009).

Yet the Cleveland Orchestra, despite its position as a major recipient of private funding, got $1.8 million from the cigarette tax fund in the first outlay of public money. As you can see below, the orchestra was the top benefactor of the cigarette tax.

Kulas, Cleveland and Gund are three major foundations here but hardly the only foundations in a city still rich in Old Money. There are scores, if not hundreds, of foundations and trusts here. The larger arts and cultural organizations also have more access to individuals of wealth for contributions.

The Gund Foundation lists contributions to the Cleveland Museum of Art at $1.35 million for renovations, and lists as outstanding grants of $5 million, $3.95 million paid as of December 2006. The Museum was third on the cigarette tax list below with a $1.5 million take. For those who want to see others funded by Gund, its IRS report for 2006 can be found here.

You can check many of the other arts organizations listed below here, which is the IRS filing by the Cleveland Foundation for 2006 and linked to past years. You will find that many tax recipient arts organizations are getting contributions from the foundation.

I find it difficult to speak out against art and cultural organizations but easier when I see so many dire unmet needs going unattended here. I see absolutely no need for public money to go to wealthy private sports businesses.

Meanwhile, poverty and its accompanying ills get less and less attention. The issues surrounding poverty get more study, less funding than can be morally defended.

As we have withdrawn from dealing with our more difficult poverty issues over the past 20 years we have moved to nourish other aspects of community life. In doing so, we may have spawned or kept alive too many cultural, sports, arts and entertainment venues and now face the proposition that our appetite has outpaced our capacity to pay the bills. It is very much an American societal dilemma today – wanting more than we can pay and living beyond our means.

Sooner or later, the debts we incur come due. I believe that the tragic violence we are seeing in our community evolves directly from these poor decisions we have made as a community.

We don’t like to be reminded that the “chickens do come home to roost.” The signs, however, are all around us.

For information on the Cuyahoga Arts & Culture structure set up by the County Commissioners you may go to its site: http://www.cuyahogaartsandculture.org/

Here is the total list of grants to arts & culture organizations from the cigarette tax:

Cleveland Orchestra - $1,822,591.

Playhouse Square Foundation - $1,535,711.

Cleveland Museum of Art - $1,505,417.

ideastream - $1,022,286.

Cleveland Institute of Music - $924,270.

Cleveland Institute of Art - $902,303.

Rock & Roll Hall of Fame & Museum - $880,479.

Cleveland Museum of Natural History - $620,006.

Great Lakes Science Center - $581,823.

Cleveland Botanical Gardens - $513,795.

Cleveland Play House - $495,273.

Western Reserve Historical Society - $358,598.

Opera Cleveland - $300,340.

Cleveland Musical Settlement - $256,497.

Great Lakes Theater Festival - $255,633.

Beck Center for the Arts - $180,915.

Maltz Museum of Jewish Heritage - $170,145.

Cleveland Museum of Contemporary Art - $155,615.

Karamu House - $153,958.

Young Audiences of Northeast Ohio - $144,504.

Cleveland International Film Festival - $136,947.

Cleveland Restoration Society - $124,507.

Ingenuity: Cleveland Festival of Art/Technology - $110,042.

Intermuseum Conservation Association - $104,158.

Cleveland International Piano Competition - $90,782.

Apollo’s Fire - $88,285.

Nature Center at Shaker Lakes - $86,263.

Cleveland Public Theater - $82,073.

Children’s Museum of Cleveland - $86,928.

Cleveland POPS Orchestra, Inc. - $83,817.

Cleveland Public Art - $72,926.

Red (an orchestra) - $72,190. (This is one worthy effort that has already hit the wall in funding and apparently has come to an end).

A Cultural Exchange - $69,843.

Dancing Wheels - $68,374.

Spaces - $65,008.

Near West Theater - $60,710.

Singing Angels - $57,009.

Verb Ballet, Inc. - $48,511.

DANCECleveland - $45,009.

Rainey Institute - $43,289.

Groundworks Dancetheater - $42,345.

Roots of American Music - $40,178.

Valley Art Center - $35,634.

Contemporary Youth Orchestra - $32,914.

Art House - $32,093.

Chagrin Valley Little Theater - $29,332.

Heights Arts - $26,584.

North Coast Men’s Choir - $26,495.

Orange Arts Center - $22,525.

BayArts - $23,407.

Broadway School of Music & the Arts - $21,708.

Progressive Arts Alliance - $21,179.

Ukrainian Museum Archives - $20,486.

Opera Circle - $20,456.

Shaker Historical Society & Museum - $19,889.

Artists Archives of Western Reserve - $19,533.

International Women’s Art & Space Museum - $18,466.

Heights Youth Theater - $18,808.

Passport Project - $18,188.

Lakewood Historical Society - $17,738.

Sculpture Center - $16,595.

Verlezza Dance - $12,628.

Brecksville Theater on Square - $11,249.

Cleveland Women’s Orchestra - $8,637.

Joyful Noise - $5,972.

From Cool Cleveland contributor Roldo Bartimole roldoATroadrunner.com
Comments? Letters@CoolCleveland.com

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