San Diego restores $10M in arts funding, reversing proposed budget cuts. Here’s how.

San Diego is reversing unpopular proposed budget cuts to arts organizations with $6 million in funding redirected away from expanding the city’s convention center and a $3 million philanthropic donation.

The deal announced Friday morning was characterized as a crucial precedent for collaborative arts funding moving forward that could help avoid the outcry that comes every spring when cuts are proposed.

“We’re calling for a regional funding approach that brings together local governments, philanthropy, businesses, tourism leaders, labor and the cultural community itself,” said Councilmember Kent Lee, who helped broker the deal with Councilmember Henry Foster. “Our vision is to build — and then to protect — something stronger than we’ve ever had before.”

The Prebys Foundation, which provided the $3 million donation, endorsed Lee’s vision for a regional partnership to adequately fund local arts.

“What is being announced today represents a new precedent for San Diego,” said Grant Oliphant, chief executive for Prebys. “Our goal is not to substitute for government. But we must and will work alongside government to strengthen the system.”

During a news conference outside City Hall, the group provided no details about how such a collaboration would work. But they said the county government, which created a $3 million grant program for arts organizations in April, would be involved.

“No single jurisdiction, foundation or organization can do this work alone,” said County Supervisor Monica Montgomery Steppe. “I look forward to the county being part of these conversations.”

The collaboration will be crucial in future years because other members of the council stressed they wouldn’t support using convention center money for arts in subsequent years.

Council President Joe LaCava said taking the money away must be a one-time move to reverse arts cuts in this year’s budget, which the council is scheduled to finalize Tuesday.

“We must weigh the importance of the convention center to our local economy,” LaCava said.

Councilmember Stephen Whitburn, whose central urban district includes the convention center and many of the city’s most prominent arts organizations, agreed.

“I think it’s a viable solution for this year, but I do not want to do that again next year,” he said. “Expanding the convention center and generating additional revenue from visitors to San Diego will benefit everyone who lives here.”

The Prebys donation was contingent on the city making at least some restoration to its $11.8 million in arts funding, which was proposed to be completely wiped out in Mayor Todd Gloria’s budget proposal.

The $6 million will come from Measure C, a hotel tax increase that provides money for homelessness programs and an eventual expansion of the convention center.

Some of the Measure C money earmarked for the convention center expansion will be rerouted this year to help pay off some debt from the center’s1998 expansion.

That will free up money normally used to make that debt payment to cover arts funding. The move initially raised legal questions, but City Attorney Heather Ferbert recently signed off.

The city could have moved $12.1 million using this method, but the city’s independent budget analyst recommended the more conservative approach of taking $6 million.

“Given the need to balance long-term convention center needs, we do not recommend that the full debt service payment be paid for from Measure C,” the IBA said. “But using Measure C to pay up to $6 million of that debt service to free up funding for arts programming could, combined with funding from other groups, provide a meaningful amount of support for arts programming.”

To bring the $9 million closer to the $11.8 million arts organizations got during the ongoing fiscal year, the city will also restore $1.35 million in grant funding for cultural events and festivals.

Lee said that makes total arts funding in the new budget $10.35 million, shrinking the year-over-year cut to $1.45 million.

When the opportunity to apply for the new county arts grants is factored in, local arts organizations could be in similar financial shape when next year is compared to this year.

Christine Martinez, leader of Arts and Culture San Diego, said Friday that she was encouraged and relieved.

“Over the last several months, San Diego’s arts and culture community came together in extraordinary ways,” she said. “Everyone united around a common belief — arts and culture matter and city investment matters.”

Bob Lehman, executive director of San Diego ART Matters, agreed.

“Today is about what happens when the people of a community come together with a shared vision,” he said.