NEW YORK CITY BUDGET

Expense Budget

After an intense negotiation process, the City Budget for FY 2004 was finally adopted on Friday, June 27. The City Council was able to restore an additional $6.5 million to the Department of Cultural Affairs. This follows the Mayor's $9.7 million restoration in early June. In addition to these restorations, the Council also added $8.5 million--$4.1 million for the City institutions and $4.4 million for cultural programs. This cumulative $16.2 million in restorations and $8.5 million in one-time Council add-ons brings the Cultural Affairs budget to $118.8 million for FY 2004. (Because the Council add-ons are one-time only, the baseline remains $110.3 million, a 10 percent cut from the FY 2003 baseline of $123.1 million.)

Credit goes to Mayor Michael Bloomberg and the City Council in achieving a substantial restoration of the Department of Cultural Affairs budget. Under the leadership of Speaker Gifford Miller and José Serrano, Chairman of the Cultural Affairs Committee, the Council demonstrated broad-based and strong support for the cultural community.

Executive Budget
$94.1 million

Mayor's Restoration
+ $9.7 million

Council Restoration
+ $6.5 million

Add ons
+ $8.5 million

Adopted Budget
$118.8 million

The cuts equal 13.7 percent across the board to CIG operating subsidies, and 9.7 percent across the board to programs.

Capital Budget

The Capital Budget for FY 2004 is $628.1 million, which includes an additional $63.5 million in restorations. It is not clear at this time which projects are included in the restorations.

An article appeared in The New York Times today discussing the budget restorations.

CAPITAL STUDY

The Alliance for the Arts has just released a groundbreaking study, Culture Builds New York: The Economic Impact of Capital Construction at New York City Cultural Institutions. The study demonstrates the direct and indirect economic benefits to the city from the renovation, expansion and construction of nonprofit cultural institutions such as museums, concert halls, gardens and zoos. The study covers the years 1992-2002, a period of ambitious growth and renewal for hundreds of nonprofit cultural organizations in New York City, and provides a preliminary assessment of construction planned for the years 2003-2006.

Key findings in the study reveal short- and long-term benefits of capital investment in cultural institutions.

Short term:
From 1997 to 2002, the $1.8 billion in direct capital expenditures at cultural institutions generated a total of $2.3 billion in economic activity in New York City. This economic impact includes:

An average of 2,255 full-time equivalent jobs each year over the six-year period

- $512 million in wages for New York City residents

- $36 million in personal income, corporate and sales taxes to New York City

The benefit to New York City derived from these building projects is magnified by the fact that most of the labor and management for design and construction are local.

Long term:

Investing in the nonprofit cultural facilities increases both service and audience. For example, paid attendance at the American Museum of Natural History increased almost 60 percent from 1995 to 2001 with the opening of the Rose Center, and international visitors increased to 25 percent from 7 percent of total visitors prior to its opening.

This report tells a story of success and of the economic wisdom of building and supporting cultural institutions. The benefits to the construction industry and building trades and other segments of New York City's economy are quantifiable and significant. The result of this building is an enhanced cultural infrastructure that will continue to serve the city and attract tourists and bring much-needed dollars into the City.

Copies of the full report may be downloaded from the Alliance's Web site.

DEADLINE FOR DCA PROPOSALS

The Department of Cultural Affairs has announced that the deadline for FY 2004 Public Service Proposals is July 28. Applications and other information can be found on DCA's Web site.

LMDC ANNOUNCES INVITATION TO CULTURAL INSTITUTIONS

The Lower Manhattan Development Corporation (LMDC) seeks information from institutions interested in creating an interpretative museum of the events of February 26, 1993, and September 11, 2001, at the World Trade Center site. LMDC is also seeking information from cultural institutions interested in locating or being part of cultural facilities and programs on the site. Information gathered from cultural institutions will be used to further develop World Trade Center site plans. This is not a formal Request for Proposals and will not result in the awarding of contracts or grants.

The complete guidelines for submitting information are located on LMDC's Web site at www.renewnyc.com. Cultural institutions may submit their responses until 5 p.m. on September 15, 2003. This invitation is not intended for cultural programs and facilities interested in locating beyond the World Trade Center site. Consideration for the submitted information will begin in the fall of 2003 along with information developed through other planning initiatives.

PEOPLE

Rosemary Garipoli became the Executive Director of the Campaign for Lincoln Center, as of March 3.

Mark Heiser leaves the University of California-Berkeley Cal Performances to become Managing Director of the New York State Theater, effective July 1.

Elizabeth Harpel Kehler leaves the American Ballet Theatre, where she was Executive Director.

Kevin Rampe has been named the President of the Lower Manhattan Development Corporation, effective June 17.

David R. White retires from the Dance Theater Workshop, where he was Executive Director and Producer. Marion Koltun Dienstag will succeed him, effective July 1.

This column is an ongoing feature of the Alliance for the Arts Newsletter. Please submit suggestions to advocacynews@allianceforarts.org

MUNICIPAL ART SOCIETY HONORS THE ALLIANCE FOR THE ARTS

At its 110th annual meeting at City Hall on June 30, the Municipal Art Society presented an award to the Alliance for its work in promoting the cultural life of New York City.