$15 MILLION DCA CUTS ANNOUNCED

Yesterday, Mayor Bloomberg announced cuts to the Department of Cultural Affairs budget, as part of a sweeping package of cost reductions and tax increases aimed at closing a large revenue shortfall facing the City. A total of 9.5 percent will be cut in the current fiscal year, with an additional 2 percent reduction proposed for fiscal 2004.

The proposed, mid-year reduction requires City Council approval.

The fiscal 2003 cuts will be taken across the board and will apply equally to the City-funded institutions and recipients of Programs funds. Reductions will be based on the total amounts of current contracts or commitments, including City Council member items.

The cuts break down as follows:
The fiscal 2003 adopted budget will be cut by 9.5 percent, retroactive to July 1, 2002
For fiscal 2004, the budget will be cut a further 2 percent, bringing the full cut to 11.5 percent, and bringing the total reduction to $15 million. (These reductions are based on the adopted 2003 budget, which includes $7 million in one-time City Council member items)

It should be noted that the Cultural Affairs budget had already been significantly reduced going into the current fiscal year. The fiscal 2003 adopted budget represented a reduction of 6 percent compared to fiscal 2002. These reductions, if enacted, would bring the cumulative loss in DCA funding to 15.5 percent compared to fiscal 2002.

These proposals do not affect the capital budget. However, the November 2002 Financial Plan states, "non-safety related capital projects may also be impacted by a proposed 30 percent targeted reduction in the City's capital program beginning in Fiscal Year 2003."

As this proposal is debated and the budget process goes forward, it is necessary for every cultural organization that receives City funds and the field as a whole to calculate the impact of these reductions in terms of operations and service to the public.
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