PROPOSED ADDITIONAL CUTS TO STATE COUNCIL ON THE ARTS

ADVOCACY ALERT
Friday, November 14, 2008

$7 MILLION MID-YEAR CUT TO NYSCA

Dance Theater Workshop is drafting a letter and we recommend that all New York City Artists and Companies do the same. We will post our letter here on Monday.  In the meantime here are the facts:

I.  The Governor’s Announcement

On November 11th, Governor Patterson presented a $5.2 Billion, two-year deficit reduction plan.  The Governor’s proposed budget plan saves $2 Billion in this Fiscal Year and $3.2 Billion in next year’s.  According to a press release issued by the Governor, “the $2 Billion cut for this current fiscal year will eliminate the State’s $1.5 billion current-year shortfall, protect against further declines in revenue in a volatile economic climate, and make a substantial down payment on next year’s deficit.”  Governor Patterson’s plan would provide a $548 million cushion against additional declines in revenue this current year; reduce the 2009-10 deficit from $12.5 billion to $8.8 billion and four year-budget deficit by $47 billion to $35.9 billion.

In the budget details attached to the press release, the description of the NYSCA cuts understated the impact these cuts will have.

Reduce Funding for Arts Grants. This proposal reflects a reduction of grant funding that has not yet been awarded. After these reductions, State funding for the arts would total $39 million in 2008-09.

While the $7 million in NYSCA grants haven’t been awarded, many have been approved.  These include GOS funding for numerous organizations that happened to be in the October and December Council cycles, as well as special project grants.

The Governor admitted that, “The unfortunate reality is that many worthy programs with laudable goals, some of which I have supported in the past, will have to experience reductions in funding.  These are not decisions that I have made lightly.  With the State facing the largest deficits in its history, we have no other option but to make these tough but necessary choices.  In times like this, government needs to put the public interest ahead of special interests - this budget plan tackles this financial crisis head-on and addresses the State’s collective needs for fiscal responsibility.”

Looking through the budget breakdown, it appears that the Governor has made cuts across the board.  In this year alone he is cutting $572 million in Medicaid and $585 million in School Aid.  Governor Patterson is asking unions to withhold the 3% 2009-10 salary increases negotiated before the fiscal crisis and $8 million in cuts have been made to several economic development initiatives.

The fact that Governor Patterson has made such deep cuts should come as no surprise.  The Governor has made no secret of his desire to end the years of deficit spending in Albany.  Last summer he called a special session of the Legislature to make cuts.  After the September banking crisis, he announced another Special Session beginning next week.

The Governor’s press release concluded with the following explanation for the cuts: “Raiding our $1.2 billion dollar rainy day reserves sounds logical, but doing so would provide only a fraction of the funds we need, does nothing to address next year’s record deficits, threatens our State’s good credit rating, and leaves us with no options to meet year-end expenses if the downturn is worse than expected.  Delaying action in hopes of help from Washington sounds sensible, but doing so sends a message to our nation’s leaders that we aren’t willing to solve our own problems.  Raising taxes in special session sounds easy, but ignores the fact that overspending is at the root of our problem.”

II. What the Legislature Might Do

Next week the lame duck sessions of the New York State Senate and Assembly will be faced with three choices: (1.) They can revise the list of cuts according to their priorities (protecting school aid, union raises, etc.); (2.) they could pass the budget as presented or (3.) they could do nothing.

If the Legislature refuses to make any cuts, the Governor can impose the cuts.

For this reason, I feel that we need to act quickly to make our case as best we can.  Why?  Because if the Governor follows the path that New York City did in the 1970’s and eliminates core services AND funding to the arts, the State’s economy will continue to decline.

Education, affordable health care, social services, and the arts are all essential to economic development.  If NYSCA’s $7 million cut goes through, it will result in a residual loss of revenue for the small businesses that depend upon our industry: lumber yards, hardware stores, dry cleaners, fabric stores, department stores, restaurants, taxi cab drivers, graphic designers, printers, and caterers.  Unemployment will continue to rise as our organizations are forced to cut staff and the numbers of productions produced each season.

There is no reason for the Governor to feel that New Yorkers have to suffer before he can ask the Federal Government for help.  New York State pays the highest Medicaid costs in the country.  What is more, we send more money to Washington, DC than we get back.  Last, but not least, NYSCA’s $7 million mid-year cut will do more harm to this industry (which is one of the largest industries in New York City) than it will help the deficit.

III. What You Can Do

1.  Write to the Governor, your State Assembly member and your State Senator.  In addition, send a letter to Assembly Speaker Sheldon Silver and Senate Majority Leader Dean Skelos immediately.  The session begins next week.  Be firm, but do not be hostile. I suggest you consider the talking points listed below. Faxes are best, and of course feel free to mail hard copies.  (See pages 5-6 for fax numbers and addresses.)

-  If you are among the groups who were expecting checks from NYSCA, explain to them how this cut will destabilize your organization.  Remind them that your company earns a large percentage of its income and secures contributions from other sources: give them the percentage breakdowns for earn and private contributions (non government).

-  Remind them that the effect of the NYSCA cut, on top of the inevitable cuts in personal giving will cause some arts groups to go out of business forever!

-  Make sure you let them know that if you are forced to make cuts in

the number of productions as a result of the NYSCA cuts you will lose box office revenues and may be subject to losses from private funders as well.  In other words, this cut in State spending will result in a domino effect that could force some companies to close.

-  Discuss the residual impact these cuts will have (how many staff members will you have to cut?  Will you have to cut a production?  The number of performances?)

-  Remind them that we are all in this crisis together; that we’ve lost corporate funding, that individual giving is down (if it is for your theatre); that Special Events and Galas are not bringing in their budgeted amounts.

-  This is not a cut that can be replenished from other sources.  If you have lost board members, individual donors or special event revenue as a result of the fiscal crisis tell them, and give amounts.

-  Remind them that NYSCA never recovered from the 60% mid-year budget cut implemented by Governor Cuomo in the late 80’s.  In the 1989-90 season Governor Cuomo cut NYSCA’s budget of $59 million by 60%.  With this cut, the budget will go down to $41 million by FY2010.  Taking inflation into account, we’ve lost much more.

-  Beside the impact the NYSCA cuts will have on culture in this City, the impact - when you use the multiplier effect - on all of the surrounding small businesses, and on the quality of life in those neighborhoods will be profound.

Last, but not least:

-  The two primary industries in New York City are the financial services sector and tourism - primarily driven by culture. We know what has happened to the first, we don’t want the same thing to happen to the second.

2.  Ask your staff and board members as well as the artists you work with to write to the Governor and their legislators as well as Speaker Silver and Majority Leader Skelos (especially any board members who live or work in either of their Districts).  But you must act quickly.  Fax your letters by MONDAY, NOVEMBER 17th.  Sadly, faxes are stronger than emails.

Remember, every agency and not-for-profit is getting cut.  No one has been spared in the Governor’s proposed budget.  We must not appear unaware of the pain that the advocates for the poor, the homeless, public schools, public hospitals, the environmentalists, and State employees are also feeling.

ADDRESSES:

Governor David Patterson:
Honorable David Patterson
Governor of the State of New York
Executive Chamber, State Capitol
Albany, New York 12224
FAX:  (518)  486-9652

Honorable Sheldon Silver, Speaker:

District Address

New York State Assembly, District # 62
270 Broadway, Suite 1800
New York, NY  10007
Fax :   212 312-1418

Albany Address

New York State Assembly, District # 62
Room 932, Legislative Office Building
Albany, NY 12248
Fax:  518 455-5459

Honorable Dean Skelos, Senate Majority Leader:

District Address

New York State Senate, District #9
55 Front Street
Rockville Centre, NY 11570
FAX:  516 766-8011

Albany Address

New York State Senate, District #9
Room 503 Capitol
Albany, NY 12247
Fax:  518 426-6950

Write/Fax the State Representatives who represent the district your theatre (performance space) is located.  If you do not have a permanent space, send a letter to the State Assembly Member and State Senator where your office is located.  Also, send the same letter to your State Assembly Member and State Senator (where you live).  If you don’t know who that is, go to the following website:
http://www.congress.org/congressorg/dbq/officials/