On February 23, San Francisco’s Mayor London Breed introduced a funding initiative to the Board of Supervisors, proposing a one-time allocation of $16.3 million aimed at supporting local arts companies. This proposal comes in response to a staggering decline in hotel tax revenue, which plummeted more than 80% due to the impact of the COVID-19 pandemic.

Revenue Shortfalls and Funding Needs

The city had anticipated generating approximately $25.9 million from hotel taxes for the arts during the current fiscal year. However, only $3.9 million was collected, highlighting the drastic downturn in tourism. The funding proposal, co-sponsored by several supervisors, seeks to address most of the budget shortfall by reallocating from other areas in the city’s financial plan that exceeded expectations, such as property taxes and federal reimbursements.

Significance of Arts in Recovery

Mayor Breed emphasized the importance of the arts not only for cultural vitality but also for economic recovery, stating, “As a former director of an arts and culture organization, I know how vital this funding is for our artists, our communities, and our city.” She reiterated that supporting the arts is essential in shaping the city’s identity and driving visitor engagement.

The hotel tax is crucial for funding entities like Grants for the Arts and the San Francisco Arts Commission, which collaborates with both large institutions, such as the San Francisco Symphony, and smaller organizations, like Dance Mission Theater. A significant change in 2018 through Proposition E restored a permanent funding source dedicated to the arts.

Community Response and Continued Support

Local artist Debra Walker, a member of the San Francisco Arts Commission, expressed her enthusiasm for the mayor’s initiative, highlighting the contribution of Bay Area artists during the pandemic. They have played a key role in engaging the community through various projects, including educational support and public art initiatives.

Reliance on Hotel Tax Funding

Arts organizations often rely on hotel tax funding for general operational costs such as salaries and rent, rather than earmarking funds for specific projects. Grants for the Arts serve as one of the few reliable income sources for many local groups.

For example, Golden Thread Productions, which specializes in Middle Eastern theater, uses this funding to determine its overall financial strategy. Organizations like Volti, a chamber chorus, also count on this support, with Executive Director Barbara Heroux noting its rarity and significance in the competitive landscape of arts funding.

Looking Forward

The proposal for additional funding is set to be reviewed by a committee before being presented to the full board for a vote—a process that typically spans several weeks. Richard Livingston, managing director of the Exit Theatre, underscored that city grants lend credibility, helping organizations secure funding from other sources.

As the city strives to recover from the effects of the pandemic, the mayor’s proposal is seen as a hopeful step toward revitalizing the arts sector, which has faced unprecedented challenges.