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MUSIC COMMISSION BUDGET RECOMMENDATION FY24-25 DRAFT Date: March 4, 2023 Recommendation: Directive to City Council for the City to invest in Austin music economy initiatives to sustain, grow, and transform our music industry. Description of Recommendation to Council: The Music Commission, in support of the music community, recommends that the Austin City Council designate a minimum $3.36 Million investment for FY2024 to fuel Austin music industry growth and support the music community. The commissions recommends that the funds be invested in:  Fiscal support for the Creative Space Assistance Program – match FY23-34 funding lever. CSAP awards between $5,000 and $50,000 to commercial creative spaces facing displacement or new leases at higher and unaffordable rates. Grant funds may be used for revenue-generating space improvements, partial lease payments, and gap financing for creative space purchases. $1.5 Million/ City General Fund  Fiscal support for Music and Entertainment Division musician performance program. Funding for city-sponsored music events (festivals, street performance program, City Council and Music Commission performances) showcasing artists from each of the 10 council districts and compensated at the city-approved rate of $200 per performance per musician. $100,000 / City General Fund  Fiscal support for the Health Alliance for Austin Musicians health insurance programs.  Funding for HAAM’s health insurance navigator and insurance premium programs. $500,000 / City General Fund Initiation and fiscal support for a new disaster-related Stormy Weather Fund. Financial compensation for musicians and music workers demonstrating financial loss caused by declared disaster emergencies and resulting power failures. $800,000 per year ongoing, subject to adjust based on frequency of emergencies / Austin Energy Annual Revenue Rationale The music industry is vital to the economic and cultural life of our city and deserves the same investment as other key growth industries in Austin. 1 of 2  Music and musicians contribute significantly to Austin's economy, including our robust tourism economy.  The cost of living in Austin has risen to nearly unsustainable levels. From 2011 to 2021, the median home price in Austin increased from $193,000 to $517,000, and the median rent increased from $815 to $1,387.  Many musicians struggle to make a living in Austin due to affordability issues. According to a survey by the Austin Music Census, nearly three-quarters of musicians in Austin reported making less than $18,000 per year from music-related income.  Funding activities that provide more paid work to Austin musicians can help protect the city's economic growth. This includes supporting music venues, festivals, and events that hire local musicians, as well as initiatives that provide training and resources for musicians to build their careers and generate more income.  By investing in the music industry and supporting musicians in Austin, the city can maintain the vibrancy of its cultural identity and ensure the continued contribution of the music industry to the local economy. 2 of 2