Here’s who benefits from the last of Sacramento’s federal coronavirus aid money
The Sacramento City Council on Tuesday awarded about $12.3 million toward tourism and the creative economy – the last of its federal coronavirus stimulus funds.
The move brings the total amount in the Coronavirus Aid, Relief, and Economic Security Act money the city has given toward the sector to about $19.8 million.
The $12.3 million includes $5.4 million the city will grant Visit Sacramento, which has laid off or furloughed most of its staff, causing a “drastic reduction” in services provided to local hotels and local businesses affiliated with the hospitality industry, a city staff report said. The organization is essential to successfully opening the new SAFE Credit Union Convention Center downtown, the staff report added.
Last year, convention and tourism business booked by Visit Sacramento generated nearly $430 million in economic impact in Sacramento and the direct support of more than 140,000 jobs, the staff report said.
The $12.3 million also includes $6.9 million for arts, tourism and the creative economy, added to a previous allocation of $7.5 million toward the category. The city has so far granted some of that money to arts education, creative businesses, cultural equity investment, individual artists, and collective/collaborative programs, the staff report said. Some of that money will go toward the Sacramento Zoo and Fairytale Town.
A handful of leaders in the arts community thanked the council for the investment.
“Because of your actions today, the Sacramento arts scene will be better prepared to return to the stage,” said Richard Lewis, CEO of Broadway Sacramento.
Mayor Darrell Steinberg said some have asked him why the city is spending money on arts and tourism.
“These sectors are part of the underpinning of growing our modern economy here,” Steinberg said during the meeting. “They’re essential. Not just for our tax base but how we feel about the vibrancy and the vitality of our community. And I know we are among the only cities in the country that have put this kind of emphasis on the creative economy and tourism through its CARES investment and I’m very proud of that.”
After the meeting, Councilwoman-Elect Katie Valenzuela said she understood artists are suffering, but was disappointed the council did not spend more of its CARES money on helping the homeless and renters – some of whom are also artists.
“There’s a reason that other jurisdictions didn’t invest their money in tourism and arts,” said Valenzuela, who will be sworn on to the council representing the central city in December. “Because there are more urgent needs, like paying rent and affording food, that should take priority during this crisis. I’m definitely not saying more investment in the arts isn’t needed, but impacted artists could also benefit from direct aid programs for everyone. When we have so many people on our street, or at risk of ending up on the street in the future, that needs to be our top priority.”
Joe Smith, advocacy director for Loaves and Fishes, said he was disappointed the council did not spend CARES money toward opening a long-awaited safe parking lot where homeless can safely sleep in their vehicles.
In addition to the $19.8 to arts, tourism and the creative economy, the council has allocated about $19.1 million of the CARES money on small business recovery; $18 million on youth and workforce training; $15.6 on homelessness and rehousing; $5.6 million on social services; and about $10 million on other items, including about $2.8 million on salaries and benefits for public safety personnel, according to the staff report. That breakdown includes figures that are slightly different than those included in a city staff report released last week.
The council will review and allocate a remaining $1.29 million in funds in the coming weeks, the city said in a news release.
The Measure U sales tax increase voters approved in 2018 was supposed to go largely toward uplifting underserved neighborhoods, but when the pandemic hit, the city redirected it toward core city services. To make up for that, Steinberg said he wanted to use the federal coronavirus money mostly toward equity projects.
Steinberg said Tuesday now that the CARES money is out the door, the city needs to continue to find ways to fund inclusive economic development, whether from Measure U sales tax revenue or other sources, each year.
“The community wants it, the community needs it, and the community loves it,” Steinberg said. “It helps uplift us all.”
