Letters From the Creative Bureaucrat, May

I write a monthly column in Northern Arizona's arts and news monthly publication, The Noise. My column is called "Letters from the Creative Bureaucrat." Here follows "part two" of two part series on the BBB as published in the April issue column... (click here for "part one").

It’s crunch time, folks. If you live in Flagstaff, you will be (or already are) looking at a ballot due May 18 that contains five initiatives for your consideration. Thankfully, I’m here to help you sort out one of these initiatives: Prop 401. Last month, I promised I would debate myself over how I will vote on 401, the initiative to renew the BBB tax.

So without further adieu, I’ll launch into split personalities – for the good of the community:

Haven’t you been paying attention? There are protests all over the country – and four initiatives on this ballot are tax proposals. I’m struggling enough to pay my mortgage and my bills. We’re tired of this Recession. We’ve had enough and we simply cannot take it anymore.

I understand your pain, but Prop 401 doesn’t hit Flagstaff residents all that hard. On average, 73% of the tax is paid for by visitors to Flagstaff. The BBB is collected on purchases of lodging, alcoholic beverages, and restaurant dining. It’s smart business for a town to collect from the visitors who enjoy its many benefits.

It is also important to note that Prop 401 is a renewal of the BBB tax revenues – it is not asking for a tax increase. Voters first approved the initiative in 1988. The tax rate remains the same, and is pretty small, charting in at 2%.

And we use this funding for good: it serves residents — with funding for Parks and Recreation: ballparks, skating rinks, and the Flagstaff Urban Trails System. BBB revenues support tourism dollars that go into promoting our town. BBB supports arts, science and culture programs both tourists and residents enjoy: the Museum of Northern Arizona, Lowell Observatory, Flagstaff Symphony, Theatrikos, Flagstaff Open Studios, KNAU, events on Heritage Square, Pickin’ in the Pines and the Celtic Heritage Fest, to name a few.

Funding for non-profit arts and culture groups? What kind of charity are we giving out here? Those groups should be able to survive on their own in the free market, or be allowed to die.

Man, that’s cold. But I don’t totally disagree with you: arts and culture organizations should be able to survive. And they do, with or without government support. But Prop 401 is about more than that. It’s about a smart investment in programs that aim to support our community socially and economically, without taking profit.

The truth about investments in the culture of our community are this: every dollar local governments invest into arts programs will pay back $7 in local, state and federal tax. Moreover, those tourists who help keep Flagstaff above the fray in the midst of a huge Recession: they don’t come to towns where there’s nothing to do. When we promote Flagstaff, we are making a promise to those folks that this town is a great place to be. We must also deliver on that promise. Investing in arts and culture gives everyone great programs that build community and keep tourists coming back for more.

That isn’t charity. It’s smart business.

If you want to build a strong local economy, you reduce taxes so the free market can do its magic. With lesser taxes, people have more money to invest in their businesses and to make purchases.

No doubt there is value to the free market. However, a local government also works much like a business – a business that builds a strong local economy for every one of its residents. So much of Flagstaff’s economy thrives from tourism. When the BBB brings us more visitors, or invests in programs that attract residents to come out and engage the community, aren’t we building a stronger free market?

Case in point: compare Flagstaff to Prescott. Both cities position themselves as tourist destinations and as places rich in history and culture. Only Flagstaff has a true dedicated BBB Revenue stream that invests strongly in tourism, the arts, parks and jobs. Prescott, with a much smaller investment, is seeing double-digit losses in tourism revenue during this recession, while Flagstaff is weathering the storm.

Prescott historian and long-time culture advocate, Elisabeth Ruffner, recently bemoaned to me how envious she was of Flagstaff’s BBB program. She felt that Prescott would have so much more going for it – in terms of visibility and viability – if there was a dedicated BBB stream. Prescott’s a great town and deserves to be ‘on the map’ the way Flagstaff is. Prescott’s local businesses deserve it, too.

Fortunately, Flagstaff has that going for it. For all of us. We can’t let go of what makes us special.

Cheers,
JT