The Ontario government tabled its Expenditure Estimates late last week and with that comes additional details on the expenditures within each ministry. As noted in the 25 February 2016 Ontario TAA Update, spending at the Ministry of Tourism, Culture and Sport is declining just over $10 million this year. Of that amount, $6.3 million is coming from the Culture spending envelope.
The significant declines to Ontario cultural spending are:
- $2.1 million in arts sector support;
- $2 million to the Ontario Media Development Corporation;
- $1.6 million to library sector support.
With respect to the OMDC, the industry magazine Playback reports that the budget changes at the agency are more complex, with a $3.5 million base budget reduction.
There are smaller reductions of less than $500,000 to heritage sector support and the Royal Ontario Museum.
In addition, the Expenditure Estimates project that cultural media tax credits will be $25.6 million lower than last year. In 2015-16, the Ontario government introduced changes to the tax credits to lower expenditures in this area.
Finally, the Estimates show a shift of $25 million in Ontario Trillium Foundation operating expenditure, with a reduction of $25 million offset by a new investment of the same amount for Ontario 150. This is consistent with a notice from the Foundation last week cancelling their capital grant program intake, but noting the impending launch of a new community capital program.
Federal
As noted in last week’s federal budget TAA Update (22 March 2016) there are significant investments in arts and heritage federally.
Two tax changes below the radar will affect the cultural sector:
- As already reported, Ottawa’s budget eliminates the Children’s Arts Tax Credit.
- Budget 2016 also eliminates a provision made in the 2015 federal budget to exempt income tax in respect of capital gains on the disposition of private corporation shares or real estate donated to a charity. This measure stood to benefit larger charitable organizations and was part of a suite of changes around capital gains exemptions when donating to charity.
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Published courtesy of The Arts Advocate Report