CCA Bulletin 21/07

Ottawa, June 5, 2007

The Canadian Conference of the Arts’ (CCA) Releases Its Annual In-Depth Analysis of the Federal Budget re: Arts and Culture Issues

The Canadian Conference of the Arts (CCA) is pleased to announce the publication of its annual in-depth analysis of the federal budget related to arts and culture issues.  E-mail us if you would like a copy of this year's analysis.

This document analyzes the Budget presented by the Minister of Finance, the Hon. Jim Flaherty, on March 19, 2007, by looking at federal funding to the Department of Canadian Heritage (DCH), its agencies and crown corporations, from 20050-2006 to 2007-2008.  This multi-annual comparison is necessary because 2005-2006 expenditures are understated, while those for 2006-2007 are overstated, due to the fact that the Supplementary Estimates tabled by the previous government were not adopted before the last federal election.

The analysis also looks into organizational and funding changes within the Department of Canadian Heritage; federal funding of key programs across the arts, heritage and cultural industries, and other noteworthy developments affecting the sector. 

Just The Facts

A number of key findings emerge.  First, overall cultural funding levels hold steady or rise modestly in Budget 2007-2008, which is welcome news for the sector.  There was also good news in late 2006, when the government announced close to $100 million in infrastructure funding for a number of federal cultural institutions in Ottawa, and in early 2007, when the government announced a two-year renewal of the Canadian Television Fund (but still at the same $100 M1996 level).

Notwithstanding this good news, there is ambivalence and uncertainty for the sector.  The title of this year’s budget analysis (“Sign Sign Everywhere a Sign?”) seeks to capture this ambivalence, as there are a number of signs that the government may be adopting a different federal approach to arts and culture.

There are growing signs that the Conservative government favours a greater role for the private sector in the cultural domain (e.g. the newly created Canada’s National Trust is to be managed and directed by “private-sector individuals”).  This orientation is in keeping with the government’s fall 2006 economic update. In its mid-to-long range fiscal policy plan, entitled Advantage Canada, the government commits that it will seek partnerships with the private sector.

A perfect example of this orientation is to be found in the newly created Canada’s National Trust whose mandate is to promote heritage protection. The government is only providing seed funding to the organization, with long term funding expected to come through donations. Moreover, the Fund is to be managed and directed by “private-sector individuals.”

Adding to this sense of uncertainty is the seeming reduction in openness and transparency in decision-making – e.g. the September 25, 2006 reallocation funding cuts to the Museums Assistance Program (MAP) – and the propensity of the government to postpone decisions that are very important for the sector – like the financing of the Canadian Broadcasting Corporation (CBC) or the long-awaited new museum policy.  The government still invokes the need for further studies and evaluations before making clear what its cultural policies and priorities will be.

In this context, it is difficult to feel reassured about the future of federal cultural policy and programs.  As a result, this year’s budget analysis reiterates the key message of the analysis of last year: it is more important than ever for those in the arts and culture sector to impress upon the federal government the importance of cultural policy for Canada and Canadians.

Tell Me More

The CCA urges you to read the full Budget Analysis, which is divided into four broad sections.  The first examines “the big picture” by discussing overall federal funding levels to key federal cultural institutions.  This is where, for example, one finds increases in funding for several organizations at very different levels – e.g. 51.4% for the Museum of Nature, under major renovations – to 4.1% for the Museum of Civilization, also under an infrastructure program.  Other examples: CBC’s budget stays stable (+ 0.2%) while one sees simple budget transfers from Telefilm Canada to the Canadian Television Fund.

The second section focuses on the Department of Canadian Heritage, and examines its organizational structure and program expenditures across key areas of activity.  This part reveals increases often more apparent than real, the overall funding of the Department remaining relatively stable.

The third section undertakes a detailed analysis of expenditures across cultural sub-sectors, bringing forward the main changes, challenges, and opportunities.  This section shows the detailed fluctuations in the budgets of each cultural sub-sector and suggests which files should be looked at carefully over the coming year.  Not surprisingly, because of the 2010 Winter Olympics, Sport is the sub-sector with the most impressive increases.

The final section explores a number of developments in the arts and culture sector beyond expenditures, and looks at other government-wide initiatives with potential impacts on the sector.  This is where you will find information on the Volunteer Initiative’s demise, the Federal Accountability Act and subsequent updates to the Lobbyist Registration Act, the UNESCO Convention on Cultural diversity, etc.

A Word on the Festivals Fund

In the 2007-2008 Budget, the Minister of Finance announced an investment of $60M over two years for festivals across the country.  This announcement has created much interest and raised many questions in the weeks following, including an emerging controversy about the intent of the program and the criteria and processes through which the money would be attributed.

Based on what the CCA knows at this time, it appears that the program announced in the March Budget is NOT meant to replace a similar one abruptly cut by the previous Liberal government in the context of the “sponsorship scandal” fallout.  Interestingly, responsibility for developing the criteria and processes for the program has been given to the Citizenship and Identity sector of Minister Oda’s portfolio, not to Arts and Culture. In any event, it seems highly unlikely that the $30 M earmarked for the current fiscal year will be distributed before several months, if at all in the current fiscal year.

The CCA's Analysis of the Federal Budget is available at no cost to members of the organization.  If you don't yet have your copy, send us an  e-mail.