Issue Brief - Disaster Relief

Action Needed

We urge Congress to support a special appropriation of $5 million for the National Endowment for the Arts (NEA) to provide disaster recovery assistance for the arts, as part of the next installment of hurricane relief funding.

Funds would be used to assist arts organizations and agencies in disaster-affected areas in conducting assessments and planning strategies toward rebuilding their capacity to serve their communities.

Talking Points

- As with other sectors of the economy, the destruction of physical property and resources was devastating for cultural and artistic institutions and so immense that groups cannot recover on their own. Artists, arts administrators, educators, and donors were dislocated and left without the space or equipment needed to work. Facilities such as theaters, museums, galleries, concert halls, and studios were severely damaged or destroyed.

- There is a misconception that federal resources are available for the arts in the hurricane-affected regions. Most federal disaster recovery assistance is designed to provide short-term assistance to individuals and businesses and covers only loss of property. There is no assistance for cultural organizations to recover from the economic loss of canceled performances and displaced audiences. At this time, all nonprofit organizations are ineligible for Small Business Association economic injury loans. Performing arts organizations are ineligible for FEMA assistance.

- Cultural tourism is a major economic force in the region, and tourism will not rebound until arts and culture rebound. Prior to the hurricane, New Orleans’s cultural institutions contributed more than $300 million to the city’s economy. Since Hurricane Katrina, most of the New Orleans-based nonprofit cultural organizations remain closed, and more than 11,000 people employed by commercial and nonprofit cultural community have lost their jobs.

- The arts are a vital component of the disaster-affected communities. The arts illuminate the human condition, bring people together, and provide a crucial vehicle for healing. Disaster recovery includes addressing the emotional and spiritual healing of the community in addition to material necessities such as a food and shelter. Displaced arts educators and artists have been key participants in creating recovery programs designed for displaced children and families. Creating, attending, and supporting the arts is cathartic.

- Hurricanes Katrina and Rita destroyed an entire region, including the traditional sources of funding and resources for recovery. The audiences, donors, corporations, and government agencies that traditionally support the arts in the community are in need of help themselves.

- Rebuilding is an ongoing process and is going to take years, not months. Seven months after Hurricane Katrina, residents and businesses have just begun to return to the affected region in significant numbers to assess damages and determine what needs to be done to rebuild. Arts organizations that are operating are doing so with little or no staff and little idea if there will be an audience for their work. These organizations need financial assistance to conduct assessments and develop strategies toward rebuilding their capacity to serve their communities.

- The NEA is uniquely qualified to help the arts recover because it has managed arts organization disaster relief efforts before and has working relationships with the cultural institutions in the affected areas. The NEA managed similar disaster relief efforts in the wake of the September 11, 2001 attacks, and the 2004 hurricanes in Florida.

Background

Disaster assistance from the federal government falls into three categories, but almost none is available to nonprofit arts organizations. The three categories are:

Arts organizations in the Gulf Coast region have a strong commitment to serving their communities, and are dedicated to being a part of the rebuilding efforts. For the arts to return to the Gulf Coast region in a robust way, communities will need access to significant, ongoing support from all sectors.

FEMA’s Public Assistance Program accounts for the bulk of federal disaster relief expenditures. State and local governments and certain nonprofit organizations can be reimbursed for the costs to repair facilities to their pre-disaster condition, as well as for costs associated with debris removal and emergency protective measures. Under current FEMA policy, performing arts facilities are not eligible to receive FEMA funding. Libraries, museums, and zoos are eligible for FEMA assistance.

The U.S. Small Business Administration gives federally subsidized physical and economic disaster loans. Physical disaster loans are available to nonprofit organizations to repair or replace disaster-damaged property not covered by insurance. Economic injury loans, which are available to help with operations costs, are at this time available only to for-profit businesses.

In September 2005, following Hurricane Katrina, Congress passed two bills with $62.3 billion in emergency supplemental funds for hurricane-related disaster relief. Congress approved a reallocation of $17.1 billion of that funding to provide for further response and recovery efforts in the regions affected by hurricanes. None of the monies went to the NEA.