As federal arts funding dwindles and local arts organizations grapple with rising costs and diminishing revenue, many Portland arts nonprofits are facing reduced financial support from the city’s arts tax this year.
In a significant shift in policy, the city has altered the distribution method of arts tax grant funding, favoring marquee arts organizations in downtown Portland while cutting support for smaller groups situated in other neighborhoods. Although a recent adjustment has provided some additional funding to certain organizations, many still receive less than they did in previous fiscal years.
Looking ahead, the city anticipates that funding levels for all groups will continue to decline.
Portland voters instituted the arts tax in 2012 with the intention of ensuring widespread access to the arts throughout the city. Annually, this tax generates roughly $12 million, with most of the funds allocated for arts teachers in the Portland area. A smaller portion is directed toward collections costs and the salary of the city’s arts education coordinator.
According to the ballot measure that established the tax, additional funds are intended for grants to nonprofit organizations and schools, aimed at providing high-quality arts access to K-12 students and making arts experiences available to underserved communities.
These grants are derived from both the arts tax and Portland’s general fund. While smaller organizations can receive grants of up to $5,000, the majority of remaining arts tax funds are distributed as General Operating Support to around 80 local nonprofits.
Previously, the Regional Arts and Culture Council managed these funds. However, in response to accusations of inefficiency and lack of transparency in 2023, the city initiated a new distribution model through the Office of Arts and Culture starting in the 2024-2025 fiscal year.
This year, over $4 million in General Operating Support grants was allocated to 80 organizations, with approximately $800,000 coming from the general fund and $3.2 million from the arts tax.
Under a previous system, the council provided supplemental “investment awards” of up to $30,000 to nonprofits, which were flexible funds based on an organization’s ability to demonstrate accessibility, equity, or advocacy in the arts.
However, this year, the city replaced that program with an “arts access questionnaire,” which asks organizations to outline the number of children and individuals from underserved communities they reach.
Now, the extra funding is directly tied to the size of each nonprofit’s budget, allowing larger organizations to receive a proportionally greater bonus.
According to Jeff Hawthorne, the grants program manager with the Office of Arts and Culture, the prior application process was considered burdensome, with many organizations opting not to pursue the extra funding.
In contrast, he reported that all organizations in the program completed the new application this year.
Unfortunately, more than half of the 80 nonprofits that received General Operating Support from the arts tax and city reported receiving less funding for the 2024-2025 fiscal year under the new system than they had the previous year.
Recently, the city allocated approximately $170,000 of additional funding to 25 organizations affected by these cuts and the unexpected loss of federal funding.
Despite this, the majority of groups that experienced funding reductions are still facing financial challenges.
The disparity between major downtown organizations and smaller entities has become more pronounced; for example, the top five recipients—Portland Center Stage, Oregon Symphony, Oregon Ballet Theatre, Portland Art Museum, and Portland Opera—received nearly $600,000 more than the previous year, while the remaining 75 organizations suffered a collective loss exceeding $100,000.
The sizable allocations to these larger organizations can be partly attributed to rent subsidies for Portland’5 Centers for the Arts buildings as well as a unique allotment by the city.
Kelly Knickerbocker, a spokesperson for the Office of Arts and Culture, explained that moving the subsidies into the General Operating Support package was intended for efficiency and transparency. By consolidating various funding streams into one grant, the city hopes to simplify financial management for these organizations.
It is important to note that these subsidies derive from Portland’s general fund and are set to expire following this fiscal year, resulting in substantial amounts—$150,000 for the Oregon Symphony and nearly $70,000 for the Oregon Ballet Theatre.
Additionally, the Portland Center Stage received $250,000 through a special allocation determined by former Mayor Ted Wheeler from previously unspent arts tax funds.
Despite these funds, the overall outcome of the 2024-2025 fiscal year showed that grants to several prominent organizations increased, while funding for smaller groups outside of downtown decreased.
Responses from arts organizations that received less funding have been widespread disappointment and concern.
For example, the Independent Publishing Resource Center, which promotes printmaking through diverse educational initiatives, saw a decrease of $19,000 compared to the previous year. Similarly, Ethos Music Center, which provides affordable music lessons, experienced an $11,000 shortfall, while Friends of Noise, which educates young people about the music industry, faced a $16,000 cut.
Highlighting the situation, Blake Shell, director of the Oregon Contemporary Center for Art, sent an email announcing the postponement of a summer exhibition due to funding shortages.
In her letter, Shell stated, “Last fall, the Office of Arts and Culture of the City of Portland ended DEIA measurements from determining funding tiers of Arts Organization support, against the intent of the voted tax code and without citizen oversight.”
Oregon Contemporary originally faced a funding decrease of $14,000 this year.
André Middleton, executive director of Friends of Noise, expressed the ramifications of reduced funding, saying, “Each dollar lost is a loss of an opportunity to invest in joy, mentorship, and education for our youth. The larger impact of diminished resources from the city will hamper our ability to use the arts to provide mentorship opportunities, facilitate youth creative expression, and develop art production professionals.”
In response to the challenges raised by the funding changes, Shell and other concerned parties began advocating for equity in funding and established the Portland Arts and Culture for Equity group.
Participants in this initiative argue that the focus of funding has shifted towards downtown Portland at the expense of communities that contribute to the arts tax.
They stress that while supporting downtown economic growth is vital, the original purpose of the arts tax was to ensure everyone in the city could access and participate in the arts.
Harper Quinn, director of the Independent Publishing Resource Center, emphasized the importance of community-based organizations: “Meaningful access to the arts means not just having access to visit art, but having access to make art as well. And it’s unfortunate that the small community-forward spaces in our neighborhoods that make the most space for creative expression, learning, and connection are the organizations that are the most negatively impacted by the change in the arts fund distribution.”
The Office of Arts and Culture actively contests some of these claims, stating that larger organizations also contribute significantly to arts education throughout the city.
Officials have maintained that the previous investment award was never specified as an “equity” award, but instead was related to broader concepts of access.
In a recent announcement, the Office of Arts and Culture revealed the additional funding of approximately $170,000, drawn from Portland’s general fund and directed to 25 organizations that receive General Operating Support.
The application process for these funds opened shortly after Shell’s initial email and was due just two weeks later.
Oregon Contemporary received $8,000 of additional support, covering just over half of what it had lost. While appreciative of the city’s responsiveness to concerns regarding equity funding, Shell noted that the tight timeline meant it was impossible to proceed with the planned exhibition this summer.
Instead, Oregon Contemporary has pivoted to hosting ticketed music shows, workshops, and a showcase of organizations involved in the Portland Arts and Culture for Equity initiative.
Unfortunately, Friends of Noise, Ethos Music Center, and the Independent Publishing Resource Center did not receive any additional funding through this allocation.
While some organizations such as Portland Playhouse and Write Around Portland ended up receiving more funding this year, a portion remained at the same level as in previous years.
When accounting for the additional funds, rent subsidies, and special allotments, roughly half of the organizations saw increases, while the remaining number experienced funding reductions.
However, as the city pivots to the upcoming fiscal year, the projection is grim, with expectations that all organizations will receive less funding.
This downturn stems from the city’s projection of dwindling financial resources. Over the past decade, the $35 arts tax rate has not changed.
Chariti Montez, director of the Office of Arts and Culture, highlighted that the total collections from the arts tax have remained stable at around $12 million, yet the effects of inflation and rising costs have been significant.
She noted that the general fund allocation to the Office of Arts and Culture is expected to decrease by approximately $1 million for the upcoming year, bringing the total support down to $3.6 million.
Despite this, there has been an additional allocation of $300,000 for art activations in vacant downtown spaces and other initiatives, although Montez admits that these additions may not sufficiently cover the needs of all Portland arts organizations.
“That’s the money that we have to do everything that the Office of Arts and Culture is supposed to do, including paying for our staff, executing arts activations, enhancing grant making, managing the city’s public art collection, cultural planning, and the city’s performing arts venues,” Montez explained.
Thus, while the Office of Arts and Culture remains committed to funding the foundational awards for the 80 General Operating Support organizations, officials do not foresee any additional funding through subsidies, special allocations, or investment awards in the coming year.
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