CCA Bulletin 25/10

September 14, 2010

The CCA Publishes its Annual Analysis of the Federal Budget

Just the Facts

Having received answers to the questions raised with the government, the Canadian Conference of the Arts (CCA) is now pleased to publish its annual Analysis of the Federal Budget from the perspective of the arts, culture and cultural industries.

The analysis of the 2010 budget examines federal funding to the Department of Canadian Heritage, cultural agencies and Crown Corporations; 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.

While there is little in the way of “bad news” in the budget – indeed, it is status quo in the funding of programs and Strategic Reviews of the Canada Council, the CBC, the National Film Board and Telefilm, which did not face any cuts – all eyes are on next year, and the shape of things to come.

Tell me more

Three main findings emerge from this year’s analysis. First, overall federal cultural funding remained relatively stable in Budget 2010, with small increases for most cultural organizations. This ‘holding pattern’ is reassuring, as was last summer’s welcome news that a number of key cultural programs were renewed for five years with healthy expenditure levels.

Second, there is legitimate reason to fear that this state of affairs may not continue. The economic recession of 2008/09 and the ongoing global economic instability are generating uncertainty. In the short term, federal expenditures have been frozen, which means that the Department of Canadian Heritage, Crown Corporations and Agencies must all find the resources needed to pay for increased salaries and operational expenses internally. Moreover, Strategic Reviews – the government’s mechanism of choice to rein in departmental spending – will now result in hard cuts.

In the long term, the government’s road map to a balanced budget includes $17.6 billion in expenditure reductions over five years, which will require real spending cuts. For the next couple of years, cultural spending through the Department of Canadian Heritage appears to be relatively safe: expenditure projections for 2011-12 and 2012-13 show steady levels of funding. But, the department will undergo a Strategic Review in 2011-12, which will require a 5% funding cut (some $60 million) for 2012-13. Moreover, funding projections beyond 2012-13 are not known at this time.

Third, adding to this concern is the sense that the government continues to approach culture without an identified long-term vision or clearly articulated policy. Lacking a clear sense of direction for cultural policy, will the sector be especially vulnerable in this period of expenditure cutbacks? One remembers the last round of budget deficit reductions…

In addition to these overall findings, a number of other important developments merit mention:

The Canada Arts Training Fund Program (formerly the National Arts Training Contribution Program) received an additional $7 million in each of 2009/10 and 2010/11 and the program was renewed in 2009 for a period of five years at an annual funding level of $24.1 million.

In 2009/10 and 2010/11, the government made significant contributions to the private sector-led Canadian Museum for Human Rights. In 2009/10, the government committed $26.7 million to the Museum and expenditures to date in 2010/11 total $55.9 million.

Funding levels to the Celebration and Commemoration Program, a program that supports community events for Canada Day, have risen substantially over the last number of years, from roughly $2 million in 2005/06, to $13 million in 2006/07, $22 million in 2007/08, $36.3 million in 2008/09, and $45.7 million in 2009/10 (including roughly $20 million for the 2010 Olympic Games Torch Relay). This year, the program’s funding stands at $11.8 million in the Main Estimates.

In a somewhat worrisome move, the government made use of Budget Bill C-9 to secure passage of major policy changes without public debate, including relaxing foreign investment restrictions in the satellite sector. The CCA has expressed its concern to both Standing Committees on Heritage and Industry that combined with existing and future trade agreements, this measure may eventually restrict the government’s capacity to support the production and availability of Canadian cultural content.

Budget 2010 announced that self-employed individuals will now have the option of registering for the Employment Insurance program to receive maternity, parental, sickness and compassionate care benefits. Given the high percentage of self-employment in the cultural sector, the change may be of benefit to some workers. For others, however, the program may not be advantageous. If an artist draws on EI benefits and is not actively creating works, any income they receive for past works will reduce the EI benefit to which they are entitled. In addition, once registered, workers cannot opt out.

What are your thoughts on this bulletin? Let us know on our blog.