Recommendation 20240304-013: FY24-25 Budget Recommendations — original pdf

Recommendation

MUSIC COMMISSION BUDGET RECOMMENDATION FY24-25 20240304-13 Date: March 4, 2024 Subject: Music Commission budget recommendations for FY24-25 Motioned By: Parliamentarian Oren Rosenthal Seconded By: Commissioner Lauryn Gould 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 recommends that the Austin City Council adopt the following budget recommendations: • 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/ Source: 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 / Source: 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 / Source: General Fund In addition, Music Commission recommends consideration of the following: • 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 / Source: Austin Energy Annual Revenue • Fiscal support for Austin music marketing campaign. Develop and fund regional marketing campaign to increase attendance at local live music events and increase album sales for local artists. $400,000 / Source: Hotel Occupancy Tax 1 of 2  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. • 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. Vote For: 10 (Chair Nagavalli Medicharla, Vice-Chair Anne-Charlotte Patterson, Parliamentarian Oren Rosenthal, Commissioners Nelson Aguilar, Tami Blevins, Leonard Davila, Lauryn Gould, Jonathan Mahone, Celeste Quesada, Scott Strickland) Against: 0 Abstain: 0 Absent: 0 Attest: Kim McCarson, Staff Liaison 2 of 2