During its 26-year existence the Arden Theatre has hosted a diverse array of talented musicians, actors, playwrights and dancers, establishing itself as a leader in performing arts among venues its size. That legacy is far from being jeopardized, however another round of provincial grants cuts means attracting top-notch talent at the Arden will come at a greater cost to the city.
The Alberta Liberals last week shed the spotlight on yet another grant program that has gone under the knife of Ed Stelmach’s Tory government. Changes to the Community Presenting Project Grant program eliminates $85,000 in funding for the Arden Theatre, affecting some 19 theatres in Alberta. The $1.6-million fund is used to reimburse theatres for the costs of paying Canadian talent in the performing, visual and literary arts, however municipally-run facilities are no longer eligible.
Culture and Community Spirit Minister Lindsay Blackett defended the changes by saying most municipal theatres are run by separate non-profit organizations. Municipal theatres were removed from the funding criteria, Blackett says, to remove “double dipping,” since municipalities are eligible for grant funding through the Municipal Sustainability Initiative (MSI) program. It’s difficult to understand the worry when the MSI is mostly geared toward capital construction, leaving sparse dollars for operating costs.
The changes came as a surprise to the city, which now, a week after the property tax rate was set, faces the task of either coming up with the $85,000 on its own or watering down the quality of acts performing at the Arden. Though the lost revenue is far from a financial hardship, it’s the latest in a string of grant cuts that have helped the province deal with its red-soaked bottom line at the expense of cities.
Two months ago the city was left with a $620,000 hole in its 2010 budget after the province terminated the Unconditional Municipal Grant Program. The money, equivalent to slightly less than a one per cent hike to municipal property taxes, was to pay for public transit and repairs to Red Willow Park. That grant cut also was justified by pointing out increasing payments through the MSI program and also led to a budget reshuffling at city hall.
There’s no disputing the value of the MSI program to municipalities dealing with the costs of crumbling roads, sewer repairs and building maintenance. St. Albert will receive $12.2 million in MSI grants this year, double last year’s amount, yet it’s substantially less than the $20 million promised when the program was announced three years ago. And while MSI dollars are up substantially compared to last year, it’s partly because the MSI program has replaced another grant fund, the Alberta Municipal Infrastructure Program. The program gave St. Albert about $10 million a year for capital spending, and unlike MSI, came with no strings attached.
Given the severe decline in natural resource revenues that has plagued Alberta since the start of last year’s economic slowdown, the province should explore all options when it comes to fiscal restraint. Cutting funding to municipalities might help the provincial balance sheet, but it only foists the problem into another arena. Ultimately, it’s residents who will bear the brunt on their property tax payment. Other levels of government can pass the buck but there’s only one taxpayer.
