City committee backs $2 million in aid for struggling arts groups
Ten large arts organizations in Calgary hammered by the ongoing economic downturn and at risk of closing their doors are one step closer to getting a $2-million boost from city council.
On Tuesday, the city’s finance committee unanimously approved a request from 10 longtime arts groups, including the Calgary Philharmonic Orchestra, Alberta Ballet and Calgary Opera, for $2 million in total bridge funding amid declining donations and corporate sponsorships.
The funding request will now go to council as a whole for final say, and, if approved, the money to help the 10 groups stay afloat would come from the city’s rainyday fund.
An amendment pitched by Ward 8 Coun. Evan Woolley to increase the assistance to $3.7 million failed at Tuesday’s committee meeting in a 4-4 tie, though the increased funds could find support when the discussion moves to council as a whole.
Councillors Gian-Carlo Carra, Druh Farrell, Richard Pootmans and Evan Woolley were in favour of giving the groups more money than they asked for, while councillors Andre Chabot, Peter Demong, Ward Sutherland and Mayor Naheed Nenshi were against.
Patti Pon, the president and CEO of the Calgary Arts Development Authority, said nearly doubling the commitment from $2 million to $3.7 million, as proposed by Woolley, would buy companies time to think about different revenue solutions in the future.
“It helps to stem what has been this constant down curve,” she said. “The curve started in the last downturn in 2008 and they were just catching up.”
But elected officials who voted against the extra money for the groups, including the Folk Festival Society, National Music Centre and Theatre Calgary, argued an increase wasn’t needed.
“I’m never in favour of giving people more money than they ask for,” Nenshi said.
“I also think that filling in the bridge between now and the end of the year, the $2 million should be sufficient to keep these companies going while they think about what their future holds and whether they need to reinvent themselves.”
Nenshi said funding from the city for arts organizations has been historically low, compared with other Canadian municipalities, because of Calgary’s long-strong corporate sector.
“Arts organizations in Calgary rely on large corporate sponsorships much more than arts organizations anywhere else in the country, as well as on big-ticket special events,” he said.
“When people are laying people off, it’s hard for them to continue a six-figure donation to an arts organization.”
Up until the most recent economic downturn hit, the 10 key arts organizations relied on sponsorships and donations from the private sector for 38 per cent of their revenues, while 3.5 per cent of revenues came from the city, according to a report.
In recent years, the 10 arts groups have seen a 25 per cent drop in individual donations, 30 per cent decrease in corporate donations and sponsorships, and watched as money raised through special events and fundraisers decreased 48 per cent.
In response, the 10 groups, which account for more than half of all full-time jobs in Calgary’s arts sector, have cut expenses, reduced jobs, chopped programs and incurred debt, Sarah Iley, manager of arts and culture at the City of Calgary told elected officials Tuesday.