Ending Arts Council Contract a Necessary Step to Build a Stronger Arts Ecosystem

Arts and music are a vital part of our community, an economic driver and crucial for the recovery of downtown Portland - and for decades the Regional Arts and Culture Council has been a part of that ecosystem supporting arts and cultural services. However, the city’s relationship with RACC has deteriorated due to a lack of transparency and responsiveness. The city must move forward with a better system.

The city has funded RACC through a sole-source contract for nearly three decades, awarding more than $7 million a year to distribute grants, run the city’s public arts program and provide other arts services. A 2018 audit, requested by the late Portland City Commissioner Nick Fish, highlighted the need for more robust city oversight of the RACC contract and its spending while also recommending that RACC conduct a strategic planning process to clarify its mission and vision. The report also called upon the city to assess the state of arts and culture and develop clear goals and a strategy to ensure that RACC's services align with the city's needs.

Since then, Portland leaders established the City Arts Program in 2018 to provide stronger oversight of the RACC contract and launched a comprehensive cultural planning process in 2020 to help establish the city and regional vision and goals for arts and culture. Unfortunately, we have not found RACC to be a collaborative partner, despite the city’s funding almost 80% of RACC's annual budget.

Specifically, RACC has not provided requested financial data about overhead expenses or complete demographic information about staff, board and other decision makers. RACC has declined to raise money to support the city’s arts priorities, and routinely cancels meetings designed to resolve contract agreements.

It has not demonstrated how it is using public funds or the impact of such funding.

This all came into public view at a city council meeting last December, when then Commissioner Jo Ann Hardesty and Commissioner Mingus Mapps highlighted their concerns. As a result, for the first time in 28 years, City Council declined to accept RACC's annual report.

RACC's shortcomings have been evident for some time. Last year, Commissioner Carmen Rubio removed "arts education coordination" responsibility and funding from RACC's contract due to RACC's poor performance supporting school districts with funding from the city’s Arts Tax. This year, I reduced the city’s investment in RACC’s bloated management and overhead expenses by $400,000 while directing RACC to spend more city dollars on grants for artists and arts organizations.

The ongoing contract with RACC will remain effective through June 2024. During this period, the city expects RACC to:

• Fulfill its obligations, which include granting the city's designated representatives non-voting positions on the RACC board.
• Provide a detailed breakdown of expenditures related to "arts education coordination services" funded by taxpayer resources from July to November 2022.
• Respond to the City Council's inquiries outlined in the December 2022 report, seeking clarity on the organization’s finances. My office relayed these requests to RACC multiple times this year; a response is still pending.

Considering RACC’s poor responsiveness, incomplete reporting and excessive administrative and program management fees, I met with the RACC board and leadership in July explaining we would end their contract.

While RACC’s mission remains valuable to Portland and the region, its stewardship of taxpayer dollars is coming up short. It is time to shift from a sole-source contract with RACC, and City Council is united in this decision.

In the future, the city will issue a series of tailored Requests for Proposals to identify partners specializing in each contracted services defined scope. RACC can apply, and any new contract with them will have greater transparency, clarity on outcomes and set limits on program management and administration expenses.

Bottom line, the future model will provide more funding directly for our vital arts community.

Portland must step up our commitment to the arts and music as they stimulate our economy and livability.

My commitment to the arts is unwavering. We intend to create and adhere to good policy and actively support our local artists and cultural organizations. We can and must do better for our arts and music ecosystem.