BackgroundBeautifulCity.ca first introduced the idea of a tax on billboards to enhance public spaces via art during the 2002 Creative City Consultations. Since then, over 4500 people have signed a petition in support and over 60 organizations from across Toronto endorse it. According to both 2007 Environics and 2009 EKOS Polling 7/10 Torontonians are in favour. In 2007, Executive Committee directed staff to report on a billboard tax to raise revenue to enhance funding for arts and culture / enforcement. This city building idea was then singled out in multiple staff reports as achieving a broad spectrum of public support and as the most popular in the Revenue Tools Consultations. Funding art was also used as the key reason for implementing the tax in all official documents, city press releases and consultant's reports. On Nov. 4th 2009, the billboard tax to fund art and enforcement was unanimously passed by PGM Committee with all further amendments to occur at Council. On Dec. 7th 2009 Council passed the bylaw and tax at 10.4 million with a 29/12 decision. The key reason given for the decided tax level (above bylaw enforcement costs) was to support public realm improvements through arts and culture. (The necessity of the tax as a means to fund art was stated over 45 times by councillors and staff.) A motion was also separately passed that directed allotment of prospective revenue to the budgeting process. This was accompanied by explicit direction from the Budgeting Chief that in no way should this be construed as taking the revenue away from the arts – only that the regular process should be followed in disbursing the funds. According to EKOS Research, only 18% of Torontonians are supportive of a billboard tax that goes to general revenue.New Policy Doc - Recommendation for Dedication of Billboard Tax Revenue through the Budget Processhttp://www.beautifulcity.ca/bc/BC-BudgetProcess.pdf (1 mb)Rationale for Allotment to Enhancing Public Spaces with Art1) A PUBLIC GOOD WITH WIDE GEOGRAPHIC AND SECTORAL SUPPORT Enhanced funding to art in public spaces (murals, accessible programming, free festivals, outdoor performances etc.) will provide a wide public benefit to all Torontonians. Further so in that policy will include a funding formula that will benefit all city wards and put a priority on youth art and high-need communities. The proposed use of revenue towards supporting the arts in public spaces is also endorsed by some of the top environmental, sustainable transport, education, cultural and poverty reduction organizations in Toronto as well as groups located across the city. Funding the enhancement of public spaces is by its nature for all of Toronto's citizens – not only for artists as some have misunderstood.
2) BOLSTER THE CITY'S ECONOMY According to the Martin Prosperity Institute, directed investment in arts and culture dramatically improves economic competitiveness, impacting innovation, creativity and producing a more vibrant city. However, in 2008, the Institute found that "the fact that average cities around the country have expanded their cultural expenditures by more than 4 times as much as the City of Toronto has put Toronto on the low end of competitive growth." According to EKOS research 80% of Torontonians believe that government investments in arts and culture to enhance public spaces improve the local economy. The results are based on 700 respondents and are valid +/- 3.7 percentage points 19/20. (At a full GTA sample of 1200 respondents and deviation of +/-2.8, support is at 77%.)
3) FIX MARKET FAILURE, ENHANCE ACCESS AND FREEDOM OF EXPRESSIONAlmost all other forms of advertising subsidize cultural content in exchange for your attention (e.g. TV includes 45 minutes of educational or entertaining content in exchange for 15 minutes of advertising, newspapers about 50/50.) Billboards do not have to give back a visible and broader public good as people don't have a choice in viewing the messages. Billboards provide one of the cheapest, per-view forms of advertising. The 'cost' is passed on to public spaces, the look of our city and in undermining more democratic media. The billboard tax for art was sold to the public as a fair and just means for outdoor advertisers to take responsibility for their impact on the city and thus enhance freedom of expression.
4) FISCAL STABILITY MEANS STRATEGIC INVESTMENT 7.74 million (10.4 projected, minus 2.66 for enforcement [1.8] and servicing the deficit [.86]) constitutes a rounding error in the context of the total city budget (0.09 % of 8.7b). Scuttling this city building idea to solely address the current budget crisis will ultimately be counterproductive to the long-term health of the economy, competitiveness, perceived integrity of our city politicians, youth participation and even sense of ownership in Toronto. Also, consider that a McKinsey and Co. study in 2006 found that "for every 1 dollar of public arts funding in a regional economy, 8 are generated."
5) LIVE UP TO COMMITMENTS TO ENHANCE COMPETITIVENESS AND TOURIST DRAWCity Council approved the Culture Plan for the Creative City in 2003. This included increasing the per capita spending on culture to $25 by 2008. This has failed: consider Toronto's current $18 per capita spending as compared to Vancouver at $19, Montreal at $32, New York at $54 and San Francisco at $80.
6) TORONTONIANS WANT THIS TO GO TO ART – REGARDLESS OF THE EXCUSES OR CONTEXTTorontonians want this tax to increase arts funding in order to enhance the city and most notably were surveyed during peaks of the last two major budget crises. Torontonians understand the connection between culture and the process of rebuilding a healthy economy. According to Ipsos Reid, reported in Municipal World Magazine in 2007, "91% of respondents agreed that "a vibrant arts and cultural scene can be a significant contributor to a community's economy." Over half of Torontonians surveyed by EKOS stated that they would be less likely to support billboard the tax if the provision to support the arts was removed.
7) CHOOSE PROSPERITY - ATTRACT / RETAIN JOBS AND TALENTIn Successful Canadian Cities: Mission Possible (2007) The Conference Board of Canada argues "if Canada's largest cities are to become world-class centers of design, architecture, and culture, and attract young, talented, creative people, they will have to do more than invest in physical infrastructure. They will have to sustain vibrant cultures and become centers of excellence…Cities that offer a high quality of life attract and retain firms and workers in the knowledge-intensive and creative fields." Well designed public spaces also boost property values and create opportunities for small business.
8) BUILD HEALTHIER, MORE VIBRANT AND REFLECTIVE COMMUNITIESAccording to a report from the University of Pennsylvania, Social Impacts of the Arts Project "Low income neighbourhoods with higher cultural participation are four times more likely than average to have low delinquency rates. Neighbourhoods with an active arts scene are nearly three times more likely to see their poverty rates decline and their population increase." The city also needs to make significant improvements to its public spaces in preparation for the PAN-AM Games in showing a vibrant and reflective face to the world.
9) BUILD TRUST, MAINTAIN OWNERSHIP AND CIVIC PARTICIPATIONThe position of the city in all consultations, most media interviews and all publicly released reports has been that the funds will eventually go to supporting enforcement and arts and culture. Revoking the provision to improve public spaces and diverting funds to general revenue alone will be perceived as a 'bait and switch' in selling the tax to the public. Deceptive action undermines trust in the city, the legitimacy of civic participation and may produce long-term disenfranchisement for the thousands of young people who have participated in creating and pushing this policy forward for the past eight years. Widely supported, citizen led attempts to improve the city should be rewarded with actionable policy rather than wasted. Furthermore interests that bring resources to the table should not be punished with a failure to follow-through on the commitments made. Additionally, a legal challenge to the tax by the industry will be less tenable on a public relations level if the funds are allotted to the arts. Additionally at least morally questionable -- as the challenge is likely be based on a 'freedom of expression' argument.
Ideal Breakdown for Disbursing FundsThe following breakdown was approved by Alliance members: - 25% / Approx. 2m to fund accessible youth arts programming in priority neighbourhoods. The rationale for this expenditure is to diversify access to expression in public space. One possible recipient is Artreach Toronto. This organization provides accessible funding to a multitude of small youth arts organizations in marginalized communities across Toronto. The organization is critically underfunded and may not be able to continue. Artreach also builds the capacity of the client groups it funds through a variety workshops and learning opportunities.
- 25% / Approx. 2m to public realm improvements split equally / available to each Toronto ward. This would be used for arts focused streetscape improvement and small projects for each ward, community murals, greening and street festivals. One example is the Graffiti Transformation Project. This city project has an excellent history of creating partnerships with small businesses to paint over graffiti tagging with murals done by youth. This is one of the most effective and affordable solutions to graffiti tagging, engaging youth and passing on creative skills – approximately 80% of sites are never tagged again. Approximately $ 45 000 would be dedicated to artists and organizations in each Toronto ward.
- 50% / Approx. 4m to be channeled to artists, arts organizations, festivals, Local Arts Service Organizations and the Majors. This would be distributed via grants directly to artists and organizations, arts festivals, outdoor performances and projects that enliven the public realm. One example could be a variety of arts projects and ongoing programming along the planned pedestrianization of John Street. This would give a human scale and feel to the space and transform it into a top tourist destination. Investment would also serve to visually link the many cultural organizations along this street. (Bell Lightbox, AGO, OCAD, CBC, the Theatre District etc.)
