Rebecca Rothman

Public art is a tough sell in a bad economy.

When senior centers are closing and library hours have been cut back, convincing city leaders to spend money on art feels like an exercise in futility.

Instead of focusing on how projects boost the economy after their completion or counting positive media reports, we’ve begun to look the people behind the scenes for numbers that count.

Artists create a concept and are given credit for the resulting project but they don’t work alone. There are many others who help make the project a reality. From fabricators to material suppliers, each firm brings expertise to the process to ensure that the project is designed and built to last.

We’ve asked artists and design leads to list each subcontractor they hire under their contract with our program. Then, we ask the contractor to do the same. These people equal JOBS.

We’ve tracked our projects this way for the past five years and found that 85 percent of the work created by our program has been completed by local firms. Each time we present a project or upcoming commission to city leaders, these job numbers are included and guess what? They’re listening.

Gladstone Payton

Anxiety is already building on what promises to be a historic (for mostly all the wrong reasons) lame duck session of Congress after this year’s 2012 national elections in November. This session could possibly have a dramatic affect on the nonprofit arts sector.

Because all the seats in the U.S. House, and one-third of the Senate will be on the ballot November 6, there is very little motivation from either party to find a compromise in advance of election day. With control of the White House hanging in the balance, the political stability that follows an election appears to be the safest time for these issues of substance to be addressed, albeit in a very compressed timeframe.

What is the big deal?

It has many names: “Taxmageddon”; “Legislative Apocalypse” and others; you get the idea. The country is on schedule to see large tax cuts first put in place by President Bush, and then extended by President Obama, expire and huge cuts in government spending basically happen at the end of this year. This means that a tremendous shortfall for the national economy at large. Currently, the Congressional Budget Office estimates are that over $600 billion will be taken out of the still precarious economic recovery by the end of 2013.

How did we get here?

Last summer, President Obama agreed to House Republican demands to cut the burgeoning national deficit in order to increase the national debt limit ceiling to avoid default on our debt obligations. The Budget Control Act of 2011 (BCA) put into place a bipartisan “supercommittee.” Charged with finding how to cut $1.2 trillion promised in the BCA, they failed (miserably) to reach agreement which will trigger deep automatic cuts of 8.4 percent (sequestration) to most social and defense programs as agreed to in the BCA starting 2013.

Adding to the anxiety is the status of the so-called “Bush Tax Cuts” and the payroll tax cut which are set to expire at the end of this year. By letting the tax cuts lapse, the marginal rates for just about every American are scheduled to increase and employees will see less in their paychecks. Combined with the previously mentioned spending cuts, you get a dramatic shortfall. This will spur a lot of talk about reforming the tax code and cutting additional spending, and it could affect the arts sector in a number of ways.

Tim Mikulski

“Something big is going on in American cities. It is urban. It is real. It is transformative.” “It is a golden time for an urban renaissance.”

Those are just short soundbites from former U.S. Secretary of Housing and Urban Development and former Mayor of San Antonio Henry Cisneros during his introduction to our Town Hall session to start day two of the Americans for the Arts Annual Convention.

Following that stirring introduction, Cisneros joined five other panelists, and Americans for the Arts President & CEO Bob Lynch, in a fascinating discussion about how the arts can be involved in all aspects of creative placemaking.

Opening Remarks

In a round of opening remarks, the panelists were asked to respond to Cisneros' statements about the arts, cities, and placemaking.

Knight Foundation Vice President of Arts Programs Dennis Scholl asked several questions including: “What role are we going to play in this urban renaissance?” (as described by Cisneros) and “How are we going to seize this moment?” More importantly, he stated unequivocally, “I want a seat at the table and a national cultural policy.”

Los Angeles County Arts Commission Executive Director Laura Zucker stated, “Arts and creativity is a special sauce...if we could bottle and resell it to people, everyone would want to buy it. The challenge is to sell it.”

Trey McIntyre Project (TMP) Executive Director John Michael Schert explained how the dance company chose to make Boise, ID, its home because founder Trey McIntyre wanted to be part of shaping the community—how the city sees itself and how others see it.

In a fine example of placemaking at its core, Schert described how vital TMP has become to the community as they were named economic development cultural ambassadors and the fact he can walk down the street and local residents know who he is and often look to TMP as a resource for guidance. 

Susan Pontious

This session was billed as one that would explore the “new normal” for public art by considering programs, events, partnerships, and policies required for sustaining vital, culturally rich communities.

Valerie Vadala Homer from Scottsdale, AZ, began by presenting the premise that traditional percent-for-art programs enabled by legislation passed by cities, counties, and states across the country in the 1960s and 80s may have become obsolete as cities approach “build out.” She presented alternatives of replacing permanent work affixed to construction with a model that focused on art events like “Glow” in Santa Monica and temporary installations that attracted audiences and enlivened the urban landscape.

Janet Echelman, best known for her ethereal “net sculptures,” showed an overview of her work, which has been funded by a variety of sources in many different kinds of locations. She spoke from an artist’s perspective about how she was adapting her work so that her dramatic installations could travel and be installed into pre-existing architectural settings.

Edward Uhlir, from Millennium Park in Chicago, showed us what can be accomplished when a city can summon astounding sums in private patronage to commission bold, daring art and architecture on a scale unprecedented in this country.

Finally, Janet Kagen gave us a tale of two cities; one was a successful project in Clinton, NC, the other was a project for the city of Durham that was aborted when it ran into opposition by other city powerbrokers. Durham then proceeded to legislate a public art ordinance so bureaucratically Byzantine that its failure was all but guaranteed. This experience caused Kagen to conclude that communities that don’t have ordinances should “stay that way.”

Nina Ozlu Tunceli

The following are some quick highlights of the Fiscal Cliff Tax Legislation that was enacted into law Monday night. The legislation only addresses major tax issues, while raising the debt ceiling limits and preventing the automatic sequestration spending cuts from beginning will be dealt with over the next two months:

• Charitable Deductions: Good news is that the charitable tax giving incentives were not specifically capped and no changes were made to the exempt status or classification of charities, such as nonprofit arts organizations. While no changes have been made in this first round of fiscal cliff negotiations, tax reform revenue raisers are still on the table as Congress and the White House negotiate staving off deep sequestration cuts in the next two months. Americans for the Arts will continue advocating the importance of this issue on behalf of the nonprofit arts sector.
• Personal Exemptions and Itemized Deductions: Unfortunately, the new tax law does reinstate both the Personal Exemption limitation and the "Pease limitation," (named after former Congressman Donald Pease (D-OH)), which will reduce the overall amount of itemized deductions (including home mortgage, charitable, local and state taxes, etc) by three percent of only that amount that exceeds the threshold (but not to exceed 80% of total itemized deductions that would have been taken). These deduction limitations are not a cap and they only kick-in for married couples earning more than $300,000 and singles earning more than $250,000 annually.

Here’s how it works: If married taxpayers earn $1 million and have total itemized deductions of $190,000 (home mortgage interest, charity donations, state/local taxes combined) in 2013, they will not be able to deduct the full $190,000 from their income. They will only be able to deduct $169,000 ($190,000 - $21,000) because the PEASE limitation rule reduces the deduction by the equivalent of 3% of the amount of their income above the $300,000 threshold ($1 million - $300,000 = $700,000 is the amount above the threshold). The reduction would then be $21,000 ($700,000 x 3% = $21,000). These rules were in effect in the 1990’s, but had been temporarily phased out during the Bush-era tax cuts in the previous decade.
• IRA Rollover: extends for two years, retroactive to 2012, allowing donors age 70½ or older to donate to charities tax-free from their IRAs. Important note: donation deadlines have been extended by a month so that donors can designate their IRA distributions to a charity in January 2013, but still have the deduction apply to tax year 2012.