One of the longest-running heartbreak sagas in Olympia has been over funding arts in King County. Each year for the past six, the nonprofit organization 4Culture, which passes along hotel-motel tax money to the arts, has asked the legislature for certainty about those funds once they get free from funding the Kingdome and Qwest Field. Once the bonds are retired in 2020, 4Culture hopes to have a steady and substantial (37.5 percent) share of the sales tax on hotels, a device used to promote tourism in many counties around the state and not supposed to sunset.
4Culture, the nonprofit successor to the old King County Arts Commission, has long received some of this hotel-motel sales-tax, so it has a good place in line for its continuation. They've played ball with the Sonics in some years, letting arts give a high-minded cover for the sports barons. Speaker Frank Chopp holds the key to these fund, and he wants to pledge about $10 million a year of that money for low-income housing. (Chopp's demand is a political problem, since it is a serious stretch of the nexus established between taxing hotel visitors and providing benefits, like stadiums and arts, that bring more visitors.) Others like the UW, wanting a different pot of visitor money, the 0.5 percent tax on restaurants, for a remodeled Husky Stadium, further muddying the waters.
Speaker Chopp likes to keep all the supplicants waiting to the last minute, so he can then cut the deal. Last year he set a new record in cleverness by giving 4Culture a promise of the funds — expiring in a year. And he reportedly assured the arts groups that he would definitely come through this year, so long as he also got, dollar-for-dollar, his low-income housing. Now it appears he has stepped on a Senate version of the bill that gives him the money he wants but not until 2020.
The complicated bill for the visitor taxes has passed the House, stripped of Husky Stadium money, and now appears heading for defeat in the Senate. If it does make it through the Senate, it has a chance of going to the House for concurrence. Don't hold your breath. A key advocate calls it "a long shot." The nub of the problem is that a bill that funds stadiums loses about half the Democratic caucus, and one that doesn't help the jocks loses the other half.
Short primer. The lodging tax, a 2 percent tax credit for King County and other counties, was passed to build the Kingdome; when it produced more money than needed to pay Kingdome bonds, then state Sen. Jim McDermott steered the excess to the Seattle Art Museum and King County arts. Some of it was later deflected to pay for the falling roof tiles at the Kingdome and as part of the Qwest Field package for the Seahawks, putting King County arts in a temporary squeeze, 2012-20. The other visitor taxes are on car rentals (out of state companies are the owners of these fleets), restaurants, and another sales tax credit: these go to Safeco Field and are the visitor taxes promised to expire when they've done their job, around 2015. The lodging tax, which basically funds tourist promotion and construction around the state, was never supposed to expire. As for the Seattle Convention Center, that's funded by a whopping 7 percent add-on to the sales tax for hotel rooms in Seattle (2.8 percent outside Seattle but in King County). Got that?
A lesser-known aspect of this saga is another culture-funding measure that has been quietly lobbying the legislature, confusing the issue while keeping a low public profile. This is the effort to import from Denver a much-admired pattern for funding culture, arts education, "scientific institutions" (like zoos, science centers, and botanical gardens) by having local voters over four counties agree to tax themselves (either by sales tax or property tax) to create a "cultural access district." The advocates (including me for a while) agreed to keep a low profile, even while lobbying the measure in the current and previous session.
And so the arts groups, growing ever more desperate in the recession, face more uncertainty, more expensive lobbying bills, and still very low public funding. It's another illustration of how narrow the Seattle issues are for Speaker Chopp, D-Seattle. And of how the unwelcome idea of funding Husky Stadium renovations in tough times clouded everything.
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Comments:
Posted Thu, Mar 11, 11:01 a.m. Inappropriate
Wasn't this tax originally promoted (and adopted) as a temporary ad hoc measure to fund the stadiums, with no other purposes in mind? I think trying to pile on other uses and extending this tax reneges on this original promise and sows voter distrust of Olympia. These other groups seeking taxpayer funding should lobby to get their own dedicated tax streams and not try to undo the compacts that the state government has previously made with its citizens.
Posted Thu, Mar 11, 1:19 p.m. Inappropriate
Promised? Really?? Who made that promise? NO tax or fee is forever. Yes, the arts and culture are very important to our society. But, FRANKly, Frank does seem to have his priorities straight this year, when we are cutting health care for poor kids, throwing General Assistance to the Unemployable out to the wolves (to where they won't be able to panhandle anyway), and cutting other vital services for disabled, the elderly, and those teetering on the edge. You want to keep taxing us so that elitists can go the opera?
Seattle and most local governments have a 1% for the arts program that provides a lot of funding for visual installations, some fabulous (at Mariners' Stadium), and some highly questionable.
Let Poncho and the dozens of other arts funders bridge the gap right now, and then let's look at a better funding source than the stadium effort.
Posted Fri, Mar 12, 8:25 p.m. Inappropriate
Thank you for writing a story about HB 2912. It has been a challenge for outsiders like me to gleen information on it since every faction, other than 4Culture, has been pretty silent.
A development that I think could help the situation in the near future is the eventual passing of HB 3027.
The Seattle hoteliers have taken the state to court and it looks like HB 3027 is a description of the settlement (see Sec 8 of that bill). In modifies a Public Facilities District law, and creates a new Public Facilities District in King County. The primary function of this change is to isolate the Convention Center revenue from the state (after they charge a giant "fee"). The new PFD would have the authority the construct other kinds of facilities, like arenas or stadiums, if it had a funding source.
The amendment on HB 2912 by Rodney Tom that taxes athletes (#316) appears that it could have those funds go to the PFD as described in HB 3027 (assuming HB 2912 passed with such amendment).
(see the amendment on HB 2912 listed here: http://apps.leg.wa.gov/billinfo/summary.aspx?bill=2912&year;=2009 )
If/when the settlement bill is passed (maybe next session, it has a June 2011 freshness date) then a stand alone bill similar to Rodney Tom's amendment could pull the pro sports demands away from bills like HB 2912 (and HB 2252, SB 6116, etc).
There is no good answer for the Husky Stadium demands on those taxes. Either every university has that form of revenue available to them, or none (that goes for the WSU athletic dep operating funds, too).
The "workforce housing" demands on those funds are out of line. Maybe Frank Chopp didn't notice how Seattle did this, but we had a levy vote, we did not skim money off a sales tax credit. Put something on the ballot countywide, Chopp, like a grownup.
See Section 8 for who all is settling of HB 3027. Btw, this is bill is an underreported story IMO.
http://apps.leg.wa.gov/billinfo/summary.aspx?bill=3027&year;=2009
looks like there is a leveraged chance to get the Convention Center expanded.
Posted Fri, Mar 12, 8:56 p.m. Inappropriate
Re love obsolete tech
Sine you are no longer paying attention, Poncho essentially ceased operations few months ago. And your claim of “dozens of art founders” really is just a few families, long supporters of the arts, and two or three other family originated foundations that, among other things, supports the arts. And in case you haven’t noticed, loosing corporate neighbors like Boeing and WAMU, having Seafirst bought out by Bank America, and then Nations Bank, Weyerhaeuser almost disappearing, Alaska Airline merging—the list of corporate casualties who once supported the local arts scene but now no longer do is long indeed.
Twenty years ago the National Endowment for the Arts was budgeted at close to $400 million annually. Now its closer to $100 million, half of which is eaten by operational needs leaving only about $1 million per state in federal support for the arts.
Yes there are many worthy needs that tax dollars can go to. But abandoning the arts makes a statement too. It says we are a small people, a people uninspired by that which is not material, a people who’s hope and dreams all fit within range of our remote controls. A people unworthy of remembrance.
Posted Sat, Mar 13, 4:01 p.m. Inappropriate
Btw, maybe "arts" has a broken business model. That is what the "sports" are always told.
I preferred the simplicity of SB 6051, though the error of leaving Yakama short spelled doom. Attempting to right that wrong with the committee striker Ed Murray looked like he was going to try to get that done. The fact of the matter is that an "arts" only bill has as much chance of passing as a "sports" only bill now, at least when it comes to these taxes.
Time to break it up and let the votes fall where they may.