Denver Metropolitan Scientific and Cultural Facilities District: 19882009

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Denver Metropolitan Scientific and Cultural
Facilities District 1988-2009 www.scfd.org
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SCFD Model

• Regional tax support for arts, culture science
• 7 counties comprise the district
• 1 penny on 10 sales and use tax
• Formulaic distribution process across Tiers I and
  II (regional)
• Tier III distributions determined by local county
  councils (community-based)
• 300 organizations funded in 2008
• 95 for General Operating Support
• 5 for Discretionary (defined in statute)
• 99.25 goes to funded entities less than 1 for
  administration
• 11-member appointed board has oversight but no
  actual discretion re funding
• Adopted by voters in 1988, reauthorized in 1996
  2004
• Currently authorized through June 2018

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Spawned by Economic Crisis

• Four major Denver institutions lost city and
  block funding in early 1980s (Zoo, Museum of
  nature Science, Art Museum, Botanic Gardens)
• Forced to charge admission for first time
• Dramatic drop in attendance
• Trustees sought replacement form of public
  support
• Polled public re types of taxes
• Sales tax chosen (1) grows (2) most likely to
  win public support (3) all residents pay and can
  benefit
• Supported by elected officials, business
  community, arts community
• First bill (1986) included only 4 facilities
  failed
• 1987 bill included three-tiered system
• Referred ballot measure passed by voters in 1988

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The Recipe That Worked for Denver

• Strong support from elected officials, business
  community leaders
• Small tax - 1 on 10
• Low administrative costs (.75)
• Objective, formulaic process
• Accountability
• Transparency

• Local control county councils board member
  from each county
• Inclusive large, medium and small orgs.
• Willingness to compromise
• Collaboration incentives
• Sunset provision (public must reauthorize)

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Distributions 2008 41.9 million591,000,000
over past 20 years

• Tier I (65.5) 5 facilities (main facility of
  each in Denver)

• Tier II (21) 27 organizations (across 7
  counties)

• Tier III (13.5) 300 local organizations
  (across 7 counties)

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Only Voters Can Change

• One cent per 10 sales and use tax
• Percentage of revenue allocated to each of the
  three Tiers
• Sunset date
• Allocation formula above 38 million

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Supporters Local Economy Benefits

• 1.7 billion economic activity (19 in 2007 over
  2005)
• 392 million in new spending
• 21.3 million in tax revenue (payroll, seat,
  sales)
• 16.4 million visits to cultural organizations
• 11.6 million free/discounted admissions
• 8,244 employed by SCFD-funded orgs in 2007
• Payroll of 119 million
• Plus for company relocations
• Plus in attracting educated workforce

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Supporters Community Benefits

• Supplements arts in education 3 million
  student contacts annually
• 1.1 million adults and children attended cultural
  classes in 2007
• Attracts talented nonprofit exec. directors,
  artistic directors, etc.
• Residents receive value with per capita cost of
  about 16 annually
• Culture strengthens the community schools
• Fosters a creative workforce
• Serves communitys diverse population and
  interests

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The Critics

• Too many organizations compete for too few
  dollars
• SCFD is cultural welfare nonprofits have
  proliferated over 20 years
• Organizations have become too reliant on SCFD
  funds
• Too Denver-centric
• Concentration of Tier I orgs. cultural
  offerings in Denver
• Counties cant individually opt-out, but home
  rule cities can
• Crowd-out effect results in less support from
  foundations and individual donors
• Tier I orgs. receive greatest and are
  guaranteed funds
• Tier III is cultural entry point for most people
  but gets smallest
• Tax funds culture for the wealthy (opera,
  symphony, etc.)
• Sales tax is regressive
• Already have too many taxes
• Past reauthorization negotiations characterized
  by greed and rancor

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Trends Impacting the Future

• Political
• Economic
• Socio-demographic
• Technological