Broader Context: Economic Downturn and the Arts
Broader Economic Context
“The contemporary art market…is a vulnerable organism, traditionally hit early and hard by economic malaise. That’s what’s happening now…. The boom that was is no more” (Cotter 2009:1).
As this foreboding quote indicates, artists and art organizations across the nation are already experiencing financial difficulties, and anticipate encountering more challenges in light of the continuing economic downturn. Organizations have to cut budgets and potentially staff, while individual artists face a tougher market.
- Potential help from the stimulus bill: one-time allocation of $50 million to the arts to prevent layoffs and restore programming
- To be distributed by the National Endowment for the Arts (NEA) in grants of $25,000 and $50,000
- 40% of money available to state and regional arts agencies
- 60% for individual organizations and working artists through direct grants
- Minnesota typically ranks high in the amount of NEA funding it receives
- This year, 31 individuals and organizations have already received a total of $768,000
- Still, great need for increased arts funding exists in Minnesota
- The McKnight foundation (leading funder of arts in MN) cut its support from $10 million to $8.6 million because of a decrease in its endowment
- Other prominent organizations (like the Minneapolis Institute of Arts and the St. Paul Chamber Orchestra) have cut staff and/or budgets
- Funding at the state level in Minnesota
- Governor Tim Pawlenty has proposed cutting arts funding in half and eliminating both the State Arts Board and the Perpich Center for Arts Education by 2011
- These potential changes indicate that the arts could lose significant support in Minnesota
- Clean Water, Land and Legacy Amendment passed by voters in 2008
- Sales tax increase to fund arts access and education
- Estimated $48 million revenue in 2010 and $54.5 in 2011
- Potentially less due to decreased consumer spending
- Governor Tim Pawlenty has proposed cutting arts funding in half and eliminating both the State Arts Board and the Perpich Center for Arts Education by 2011
- Non-monetary resources in Minnesota
- Minnesota Citizens for the Arts provided organizations with advice for dealing with the economic downturn
- Minnesota Council of Non-Profits advised organizations to seek funding from foundations instead of government grants