Cleveland has an overabundance of institutions -- from
sports to 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 of 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 which 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 Cuyahoga 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
the Gateway professional sports complex. Yes, that's
$80 million not counting taxes for alcoholic
beverages and not counting 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 last month. This 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. The $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
Browns Stadium continues also until 2015, unless it is
once again extended.
As I
asked on the RealNEO website, why should smokers --
usually working people and often the poorer segment of the
community -- have to endure so much of the tax burden for
the community "needs?" The only answer is the ease
our politicians find in passing taxes onto lower-income
people. Our politicians avoid, like the plague,
passing taxes on luxury items that would hit the wealthy.
Why not,
for instance, a surcharge on the income of all Cuyahoga
County residents above a high-figure that would eliminate
most people? Wouldn't that be fairer than the
cigarette tax?
Of the
taxes mentioned above, only the tax for Gateway has ended.
However, at 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.
As 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 of Fame and
a Playhouse Square theater for $3 million and $5 million
respectively. All three are also 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 "civil leaders." Actually the
decision is made by the Greater Cleveland Partnership,
Cleveland corporate lobbying group, thereafter with
concurrence by Cleveland Mayor Frank Jackson and, of
course, the 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
nonprofit 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 by
clicking here.
We can
thank County Commissioners Jimmy Dimora, Tim Hagan and
Peter Lawson Jones for giving corporate interests the
ability to shift these costs to ordinary citizens.
The commissioners 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
$1,222,5000 (2006) and lists the orchestra for another $2
million (2007-09).
Yet the
Cleveland Orchestra, despite its position as a major
recipient of private funding, go $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
beneficiary of these tax dollars.
Cleveland, Gund and Kulas are three major foundations here
but hardly the only ones 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 fat $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 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 by
clicking here.
I find
it difficult to speak out against arts and cultural
organizations but easier when I see so many dire, unmet
community needs going unattended her
e.
I see absolutely no need for public money to go to
wealthy, private, sports businesses.
Meanwhile, poverty and its accompanying ills gets less and
less attention. The issues surrounding poverty get
more study, less funding than can morally be defended.
As we
have withdrawn from dealing with our more difficult
poverty issues during 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 entertainments venues... and
now face the proposition that our appetite has outpaced
our capacity to pay the bills. It is very much an
American social 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.
Here is
the list of the 10 largest grants to arts and cultural
organizations from the cigarette tax:
1. Cleveland Orchestra...
$1,822,591
2.
Playhouse Square Foundations... $1,535,711
3.
Cleveland Museum of Art... $1,505,417
4.
ideastream... $1,022,286
5.
Cleveland Institute of Music... $924,270
6.
Cleveland Institute of Art... $902,303
7.
Rock & Roll Hall of Fame & Museum... $880,479
8.
Cleveland Museum of Natural History... $620,006
9.
Great Lakes Science Center... $581,823
10.
Cleveland Botanical Gardens... $513,795
To
review all of the grantees and for information about the
Cuyahoga Arts & Culture structure set up by the Cuyahoga
County Commissioners,
click here.