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Has The Burden Become Too Heavy?
Perspective from Roldo Bartimole
05.07.08

 


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 leviedRoldo Bartimole 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 taxPlain Dealer 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 herRoldo Bartimolee.  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.

 

That's Roldo's Perspective... What's Your Perspective?
Read or Post in the "Community Forum"

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Editor's Tip:  Many old issues of Roldo's Point of View newsletter are available at the Book Store on West 25th Street, a short walk from the Westside Market.  The newsletters represent a view of Cleveland politics and media during the years 1968 to 2000... and in Roldo's words, "make for some interesting rummaging." 

 


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