Save the Arts in PA

From the Philadelphia Inquirer.
By Olivia Biagi
Inquirer Staff Writer

Waving signs urging “Save Our Arts” and “Don’t Tax Behind Our Backs,” about 150 people gathered outside the Bellevue in Center City yesterday to protest a proposal to tax tickets for museums and performing-arts venues to balance the state budget.

State Sen. Larry Farnese, (D., Phila.) one of three state senators who participated in the noontime rally, said he would “join my colleagues in the Philadelphia Senate delegation, and we will fight to oppose this tax.”

Though Farnese openly opposed the tax at the rally, he did not say he would oppose the state budget when it comes up for a vote in the legislature. Farnese said that many of the arts institutions affected by the tax were in his district and that he and the Philadelphia Senate delegation, under Chairwoman Sen. Shirley Kitchen, would meet to “see what we can do.”

Farnese also said he had “not seen any language on how this money [from the tax] will be spent.”

“A community’s health is judged by the health of its arts,” said Sen. Daylin Leach (D., Montgomery). He also encouraged the crowd to spread the word that the tax should not go through.

The proposed tax would add 8 percent to the cost of tickets to plays, museums, concerts, and zoos in the city and 6 percent elsewhere. Movie tickets and sporting events are exempt. “It’s ironic that [the arts will have] a higher tax than major-league sports,” said Todd Holtsberry, a member of the Secret Room Theatre and the Philadelphia Dramatists Center. “Their players seem to get paid a lot more money.”

Currently, fans at pro sporting events pay the city’s 5 percent amusement tax on tickets.

During recent budget talks, Gov. Rendell insisted that legislative leaders come up with additional sources of revenue to close a budget hole and recommended lifting some exemptions to the state sales tax. He said he didn’t care where the money came from as long lawmakers didn’t tax clothing or food. Senate GOP leaders chose what critics are now calling the “arts tax.”

The deal, tentatively approved by Rendell and Senate and House Democratic leaders, also calls for the bulk of the money raised from the tax to go into a separate fund that would be funneled back to cultural attractions statewide in the form of grants. Plans for the somewhat impromptu demonstration yesterday began Tuesday night when Thom Weaver, a theater lighting designer, sent out an e-mail to members of the arts community that went “viral.” He said excitement and fear over the proposed tax drew an immediate response.

At the rally, Weaver told the crowd that the legislators supporting the tax think they are “attacking the elite artists wearing their scarves and drinking lattes. . . . But take a look around you. I don’t see any of those here. I see hardworking men and women who need to provide for their families, provide for their children, pay mortgages.”

The protesters, mostly college students and members of the theatrical union Actors Equity, marched south down Broad Street to the University of the Arts after the protest, chanting “Save our arts!”

“I think it’s ridiculous that they’re taxing our arts,” said Tess Kunik, a freshman at the University of the Arts.

“There are better things that could be taxed,” said Graham Hooper, also a freshman at the school.

From the Delaware County Daily Times

Residents living in the last state in the union to approve a comprehensive budget must be scratching their heads on the final pact agreed on by the state House, state Senate and Gov. Edward Rendell.

Now, the agreement is only a framework for the 2009-2010 state budget. Our elected leaders are still working to draft a line-item budget and a number of bills that must be passed before the budget can be enacted. Pennsylvania Senate President Joe Scarnati said he does not expect legislative action to be completed this week.

The long budget struggle between state Democrats and Republicans focused on holding the line versus raising taxes. So they comprised.

Here comes the head-scratching part.
Read more…

From the Philadelphia Inquirer.
By Olivia Biagi
INQUIRER STAFF WRITER

Waving signs saying “Save our Arts” and “Don’t Tax Behind Our Backs,” nearly 150 people massed at the Bellevue in Center City to protest a proposal to tax tickets for museums and performing-arts venues to balance Pennsylvania’s state budget.

State Sen. Larry Farnese, one of three state senators to join in the noontime protest, said he “will join my colleagues in the Phildelphia Senate Delegation, and we will fight to oppose this tax.”

State Sen. Daylin Leach denounced the proposed tax as a “backroom deal” and said he would oppose the tax, but not necessarily the state budget.

Leach encouraged the crowd to spread word that the tax should not go through.
Read more…

From The Daily Pennsylvanian

Lawmakers’ decision to tax cultural forums is an easy, but wrong out after budget negotiations

Working over deadline usually prompts hasty compromises and quick decisions, but Gov. Rendell and the Pennsylvania legislature took their sweet time agreeing on a state budget, which was announced last Friday. As the last state to do so, their “deal-making” is hardly something to applaud. And given the tentative budget’s state sales tax on performing arts, there may soon be even less to applaud in Pennsylvania.

In addition to taxing performing arts – plays, ballets, concerts, museum admissions, zoos, historical sites and parks – the new budget taxes cigarellos for the first time, raises cigarette taxes by 25 cents a pack, takes an additional 2 percent of slot-machine gambling revenue and legalizes table games, like blackjack, poker, craps and roulette.

It makes sense to tax tobacco products and gambling since they are generally seen as “bad.” The idea of a sin tax is certainly not new, and lawmakers obviously relied heavily on that idea.

But here’s the thing: Far from being a societal ill, it’s actually good for people to enjoy the arts. Performing arts and intellectual attractions don’t just promote cultural appreciation – on a more practical level, these activities get people out in the community and allow time with family and friends in some good wholesome fun. And without any tax, it already costs a family of four $66 to see the Philadelphia Zoo. Toss in an 8-percent sales tax, and it would cost the same family $71.28.

Additionally, part of the notion of a sin tax is that people will grumble, but they will still buck up for their nicotine fix or gambling habit. But that’s not necessarily true of an occasional cultural excursion, especially in this economy. According to the National Assembly of State Arts Agencies, states reduced their arts funding this fiscal year by 7 percent on average (The amount of arts funding for Pennsylvania is still undetermined.).
Read more…

From the Wayne Independent

Unprecedented lack of a state budget is hurting local nonprofit cultural and arts organizations. On top of less money, they now hear that the state six percent sales tax may be applied to their admission prices. The news was not welcomed by affected organizations in Wayne County.

As was reported by The Associated Press, the plan would extend Pennsylvania’s six percent sales tax to tickets for the performing arts, museums, historical sites, zoos and parks. Senate Appropriations Committee Chairman Jake Corman stated it is partly designed to shift the taxpayers’ share of financing those activities onto their patrons. Much of the money, however, would flow into the state’s coffers to be used to be spent on other programs.
The proposed new tax is included in the current budget version on the table in Harrisburg.
Read more…

From Warren and Derrick’s Blog
Are you a resident of Pennsylvania? A lover of the arts? If you answered yes to one or both of my questions, listen up! After an 80 day impasse, Pennsylvania Governor Rendell and leaders in the General Assembly announced a budget deal Friday evening. Great news, right? Not so fast…. It seems that Governor Rendell and the General Assembly think they can balance a budget on the backs of our region’s arts and culture. For the first time in Pennsylvania, the state sales tax will be applied to tickets for theater, dance and performing arts events, concerts, museums, historical sites, zoos and parks. The word from Harrisburg is that this revenue generated from these taxes could result in long-term funding for our sector. However, sports and movies – which we all know to be big revenue generators – can keep their tax exemptions in Pennsylvania. Why are nonprofit cultural institutions being singled out?

In these tough times, even a small increase in a ticket price can be the deciding factor for a family of four looking to spend an afternoon at the Philadelphia Zoo or the Museum of Art. A tax will decrease the affordability of Philadelphia’s myriad cultural attractions – and hurt organizations who are already seeing a decline in admissions and revenue. If Harrisburg is serious about looking for long-term solutions to fund arts and culture – then we should be invited to the table. Let’s band together to let our legislators know we think a sales tax on nonprofit cultural institutions is shortsighted – and that we want an invitation to the converstion. Once the budget agreement is drafted into legislation, we’ll only have a ten day window – so the time to act is not tomorrow, but NOW.

After the jump, find out what you can do to help this cause. ~D
Step 1: Find the Harrisburg office phone number (look for the 717 area code) for both your state senator and representative using our handy Legislator Lookup.

Step 2: Need some help with your message? Use the following call script: Hello, my name is ________, and as a resident of _______, I’m calling in opposition to an expansion of the state sales tax on the backs of nonprofit arts and cultural organizations in order to balance the FY10 state budget. In these tough economic times, increases on ticket prices only taxes out working families out of theaters, museums, and zoos. Interestingly, sports and movies – which are huge revenue generators for Pennsylvania – remain exempt from the tax. This doesn’t seem right. I think that those of us who work in, or support these nonprofit institutions in our region should be a part of the conversation on long-term solutions for cultural funding. I ask that Senator/Representative _________ brings this message to caucus leadership before the budget is signed into law.

Step 3: Once you’ve delivered the above message, ask if you can meet with your legislator in person to deliver the same message. Need some help in preparing for a meeting? Email sarac@philaculture.org with any questions – and please report your call and if you’ve scheduled a visit to the same address.

From KYW Newsradio

by KYW’s Tony Romeo

Despite pleas from the arts community, a spokesman says Governor Rendell is standing by a proposed sales tax on admission to cultural sites and events as part of the state budget deal announced last Friday.

Spokesman Barry Ciccocioppo says Governor Rendell met with leaders of the arts community for about a half an hour on Wednesday. Ciccocioppo says the governor listened to their concerns, and reminded them that the sales tax on tickets was a Senate Republican proposal:

“But that he accepted it because it met his criteria that a budget provide recurring revenue to balance this year and next, and provide funding for education and health care.”

Ciccocioppo says the governor expressed frustration that lawmakers wouldn’t defy “special interests” and consider a tax on smokeless tobacco products, but also said he is hopeful that the sales tax on tickets will create a special fund to insure that the arts community is protected in future budgets.

From Patriot-News
By Patriot-News Op-Ed

In Harrisburg and across Pennsylvania, we are fortunate to have excellent nonprofit performing arts organizations. These groups are already struggling with the challenges of the continuing economic recession, and now the governor and some members of the Legislature want to force these community-based, nonprofit organizations to shoulder the burden of the failures of the state budget through a nonprofit tax.

It is both sad and astonishing to me that our state leaders would choose nonprofits to realize funds to solve the state’s budget problems. The proposal to tax nonprofits by charging sales tax on subscriptions, ticket sales, art exhibitions and museum admissions will only further damage the health of our state and its communities. The amount of revenue this plan would generate for the state is trivial, but the consequences for the nonprofit arts community would be severe.

Subscription renewals and ticket sales are already down for these nonprofits, while the costs of operating are up, largely due to the current economic situation. Financial support from local funding sources has also been greatly reduced.

Nonprofit performing arts organizations strive to make their presentations available for the communities they serve by pricing tickets to be affordable to all. If the Legislature and the governor approve this tax on nonprofits, the cost of tickets will be increased. A consequence will be reduced attendance at these community cultural events. Lower attendance will hurt many nonprofit organizations.
Read more…

By Patriot-News Editorial Board

Many performing arts programs, zoos and museums are run on a shoestring budget.

They usually use much of their ticket sales to pay staff and keep operations functioning.

That’s why we are surprised to see budget negotiators apparently asking these groups to take on the added financial burden of helping to fill the gaping budget hole.

Lawmakers and Gov. Ed Rendell are counting on these entities to bring in up to $120 million in state revenues for the spending plan they are moving forward for a vote in the General Assembly.

Tremors are traveling through the arts community for organizations such as the Harrisburg Symphony Orchestra, Open Stage of Harrisburg and Hershey Entertainment, which books concerts at Hersheypark Stadium and Giant Center.

With no warning, they are all trying to understand exactly whether the 6 percent sales tax would apply to them.

Sen. Jake Corman, Republican appropriations chairman, said that only “professional” performances would be taxed. What does that mean?

Most small nonprofit groups, from museums to choral groups to community theaters, operate with only a few paid staff, the rest are volunteers.

Certainly an argument could be made for taxing bigger entities that bring in acts such as Taylor Swift and Bruce Springsteen, but taxing smaller organizations just doesn’t make sense.
Read more…

From the Chambersburg Public Opinion
By Rob Luff

FRANKLIN COUNTY — A tentative solution to the 85-day state budget impasse could make a number of organizations, school districts and municipalities happy, but arts and entertainment venues are not among those rejoicing.

The new budget deal, which is yet to be officially passed and approved, extends the statewide 6 percent sales tax to arts and entertainment venues and performances.

Tickets for concerts, plays, ballets and other performances were previously exempt from the sales tax but will soon lose that exemption if the budget is approved. Museums and zoos are also included in the tax, but tickets to movie theaters and professional sporting events remain exempt.

Local theaters react

Several local arts organizations say they are concerned and confused at the news of the new tax as they continue to watch their revenue from the state decline.

They expect it to harm their already-wilting budgets and deter patrons from attending as many shows as before.

“That’s an awful amount of tax when ticket sales are already down,” said Linda Boeckman, manager of the Capitol Theatre in Chambersburg.

She said the tax comes at a difficult time for theaters and play houses as they suffer with the recession.

Ticket sales took an “absolute nosedive” for the theater last year as the economy worsened, Boeckman said. Sales picked up this year, but they are still down by about 10 percent compared to average years.

Now, the theater’s $30 ticket price would jump by about $1.80.

That’s not a significant amount, Boeckman said, but it would cost a family of five almost $10 more to attend a play. Those families would probably cut back on buying concessions items, she said, which affects the theater’s bottom line.
Read more…