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DIA Millage Proposal Raises Delicate Questions for Suburban Voters on Aug. 7

Tri-county proposals spur debates over Detroit-suburbs ties, museum finances and property tax levels.

 

Mary Cassatt, Vincent van Gogh and Diego Rivera are among candidates for local support in Metro Detroit's Aug. 7 primary elections. A millage request by the Detroit Institute of Arts – the museum displaying their art – will be on ballots in Oakland, Macomb, and Wayne counties.

Each county's elected commissioners this spring approved language for a 0.2-mill proposal to support the DIA as a regional resource. In addition to nominating candidates for congressional, state, county and local offices on Primary Day, voters will be asked to answer that yes-or-no DIA tax question.

An impassioned debate has begun to intensify, as it always does when property taxes and city-suburban relations are involved. The political landscape also is shaped by economic uncertainty and some communities' tax proposals for parks and recreation, public safety and education. Other countywide requests Aug. 7 include a .59-mill renewal for Oakland's Public Transportation Authority and a .04-mill renewal for Macomb veterans' services.

Facts and views about the DIA millage are summarized here:

Ballot language

The three county boards of commissioners this year established separate Art Institute Authorities, allowed under a 2010 state law, to submit the August millage question and monitor the use of funds if it passes. The four-sentence ballot wording (see attached PDF file) asks for a yes or no vote on a tax "to continue providing art institute services to benefit the residents" of the voter's county. The phrases "Detroit Institute of Arts," "DIA" and "museum" aren't used.

Tax impact

A levy of 0.2 mills means 20 cents per each $1,000 of taxable value. Property owners would pay $10 for every $100,000 of taxable value shown on municipal tax statements.

Duration

The 10-year tax would begin with December 2012 property tax bills and end in 2021.

Money for DIA

Voters will see one of these estimates of 2012 revenue to be generated: Macomb, $4.9 million; Oakland, $9.8 million; Wayne, $8.3 million.
In exchange, residents and school groups from counties approving the millage can visit the DIA anytime without a general admission fee.

Museum governance

Detroit owns the DIA’s collection, building and grounds. It transferred museum management last decade to a nonprofit operating authority, governed by a board of directors from the tri-county area.

Reason for proposal

"The DIA does not receive any funds from the state, city or county," the campaign's FAQ page states. "Elimination of all public funding for operations has required the museum to turn almost entirely to the private sector, an operating model that is not sustainable, particularly in the current economy."

Additional operating revenue for a decade is needed to avoid reducing the current DIA public access of 36 hours over five days each week, executives say. "An operating endowment of $72 million provides funding for approximately 20 percent of annual operations," millage campaign spokesman Bob Berg tells Patch.

Passage by all three counties, according to the online statement, "will allow an expansion of operating days and hours to better accommodate public and school groups. ... The museum's ultimate goal is to become financially self-sustaining ... [through] fundraising [that will] focus on building an operating endowment."

Impact of rejection

"The urgency of the situation requires success in all three counties for operational stability," the official statement says. "A DIA without millage support [in all three counties] will not be the DIA we know today."

The media handout suggests the possibility of "a severe reduction of museum services and programs," perhaps including the end of school tours and "opening selected galleries only on weekends." In a recent statement posted at Rochester Patch, DIA director Graham Beal concludes: "The millage will help ensure that the DIA is around for future generations to enjoy."

The museum's TV ad campaign began June 26, as reported by Crain's Detroit Business. A half-minute commercial (attached to this report) uses the tagline "Art is for everyone –it's what we save for our kids." As museum scenes are shown, a narrator says: "Imagine this: special exhibits, school field trips, art workshops – gone. The Detroit Institute of Arts is at risk of closing its doors. But we can save it by passing a low-cost millage."

Those scenarios and emotional language are crafted as part of a campaign that also includes a website, Facebook page and high-caliber consultants from the Dewey Square Group, a national political advisory firm with a Grosse Pointe office, and Berg Muirhead and Associates, a Detroit public relations agency.

Each side's arguments

Ballot proposal wording

  • Critics say: Omitting Detroit or DIA from the proposal’s wording is misleading.
  • Backers say: County election officials drafted the ballot language, which complies with the 2010 state law authorizing county Art Institute Authorities.

August vs. November vote

  • Critics say: A November vote would bring wider voter participation.
  • Director says: "While there are fewer major candidates and issues on the August ballot, there is still sufficient voter interest," DIA Director Beal said in his reply to a Rochester Patch reader's letter. "The smaller ballot allows issues-based campaigns the ability to fully make their case to voters. Less 'noise' around the presidential election allows the DIA to communicate more effectively and cost-efficiently."

Admission fees

    • Critics say: Charging visitors more would be fairer than a regional tax affecting nonusers.
    • Backers say: Admission fees of $4-$8, depending on age, provide 3 percent of DIA revenues. Closing the operating fund gap that way would make the museum far too costly for many people to visit. "The existence of the DIA benefits every resident in Michigan, especially school children in the tri-county area," the campaign site says. "A cultural resource like the DIA is ... necessary for a healthy, vibrant society and is crucial in attracting businesses to the tri-county area."

    Bailout?

      • Critics say: Suburban taxpayers shouldn’t bail out a mismanaged museum that spent $158 million on remodeling from 2001-07.
      • Backers say: "The DIA's financial situation is not due to poor management, but is a result of several factors – mainly the loss of state and city support and the recession that has made fundraising much more difficult," Beal says in his Patch letter. "The DIA has been and continues to be fiscally responsible. In addition to balancing the budget every year, the museum's financials are subjected to annual outside audits and consistently receive the highest rating."
        Spokesman Berg, a former Detroit mayoral press secretary, told Patch: "Renovations that were carried out at the DIA were badly needed, carefully planned and implemented with a goal of assuring a modern facility that will continue to serve this region for many generations." The project cut operating costs, he said in an email response, by adding "advances in building design and mechanical facilities that have occurred in the 80 years since the DIA was first opened."

      Sell the art collection

        • Critics say: The DIA has millions of dollars worth of stored art that could be sold.
        • Backers say: "We are not in the business of selling art. We hold art to be viewed by this generation and the next," DIA Chief Operating Officer Annmarie Erickson said via Twitter in May. More recently, spokesman Berg told Patch: "One of the fundamental accepted practices of major art museums worldwide as that art work cannot be sold off to cover operating expenses. Any attempt to sell art would immediately undermine the DIA's position in the art world and render it unable to cooperate with other museums in putting together exhibits such as the Rembrandt exhibit. The region would lose its standing as home to one of the world’s great museums."

        Who controls the money?

          • Critics say: Counties won't control how local tax money is used.
          • Director says: "The art authorities in each county, whose members are appointed by the commissioners and county executives, will ensure the DIA is using millage revenue only for museum operations," Beal noted at Rochester Patch. "And the DIA is required to submit an annual audit."

          Voters' voices

          Following are comments from residents around the three counties:

          • Rochester, pro-millage: "What is Michigan and the tri-county area willing to risk in lost jobs, tourism revenue and the like if we begin to lose our cultural institutions like the DIA? ... No one will want to relocate to Metro Detroit or raise a family here without cultural attractions." – Tiffany Dziurman Stozicki, 41
          • White Lake, anti-millage: "The language on the ballot for the DIA millage request does not mention that it is for the Detroit Institute of Arts. If you don't pay attention to newspapers, you're likely to think [it] was for a facility or facilities in Oakland County. ... We cannot pick up the tab for bad management of all of the Detroit facilities." – Diane M. Chrzanowski, 56, Lakes Area Tea Party member
          • Macomb Township, pro-millage: "The region should be willing to support several institutions that ... benefit the Detroit-Metro area. The Detroit Zoo and the DIA are two locations that need to be first-class to benefit the education and enjoyment of our children and depict us as an area that cares about our social environment." – Philip Langford, 57
          • Rochester, anti-millage: "This should have been placed on the November ballot when more residents will vote. Oakland County should not pick up the tab for the bad management of facilities owned by other governmental units." – Sue Ann Douglas, 68, past Republican member of Oakland County Commission
          • Livonia, pro-millage: "It would be a very significant loss if they would have to downsize their operation, restrict their hours." – Mayor Jack Kirksey, quoted by Livonia Observer
          • Rochester Hills, anti-millage: "It is important that organizations such as the DIA, Detroit Science Center, etc. are run with fiscal responsibility. ... As much as I am a strong proponent for the arts, this is a bad ballot proposal and I will be voting no." – Laurie Puscas, 52
          • Sterling Heights, pro-millage: “The DIA is not only an important educational and cultural center for Detroit, but for all southeast Michigan.” – David Flynn, Macomb County commissioner, quoted by The Romeo Observer
          • Macomb Township, anti-millage: “If the DIA is unable to sustain itself through means other than taxation, it is time to replace those in charge with others who can manage current resources and go out and seek sponsors, donors, contributors to cover expenses.” – Leo. C. Garry, 85
          Related Topics: Aug. 7 Primary Election, August Primary, DIA Millage, Detroit Institute of Arts, and Property Tax
          If you’ve decided how to vote, what is the main reason you support or oppose the millage? Tell us in the comments.

          Ophelia Marie

          2:28 pm on Thursday, June 28, 2012

          do people SERIOUSLY think it's that easy to just seek out other ways to keep the museum open? if there were other ways that guaranteed revenue, they wouldn't be doing this! also, the "poor management" comments get me every time. if it's being managed so "poorly", why don't you get in there and tell them what they're doing wrong, since you are so knowledgable on all things art, art administration, directing, etc?

          i am definitely pro-millage. i will do what it takes to keep the institution open.

          art IS for everyone! keep it in detroit!

          Reply

          Jerry Teets

          10:33 am on Friday, June 29, 2012

          This is an important opportunity to support our local treasures. The DIA is widely viewed as one of the top 5 museums in the country. Once gone, something like that could never be rebuilt. One sign of a great city is having good museums and other cultural institutions. While I don't like paying taxes, they are sometimes necessary to pay for things that need doing, and sometimes we all pay a little for the betterment of all. This is one of those times. The actual amount is very small, most households will pay from less than $10 to $20 a year. This is less than a single trip to the museum, and for that, we get free admission. Once this passes, I urge everyone to take advantage and go. You don't have to like everything there, but there is true beauty and inspiration to be had.

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          FedUp Taxpayer

          3:36 pm on Wednesday, July 4, 2012

          Sorry, I will be voting "NO".
          I say this as a long time DIA member and supporter of several DIA auxillaries.

          Among other things, Detroit can't handle providing adequate streetlights, why would I believe that the City will handle new millage funds any more prudently?

          If everyone who plans to vote "YES" would send $15 directly to the museum, it would be a greater benefit. Better still, become a member or renew your DIA membership at a higher level. Support an extra auxillary. Volunteer your time. But, don't force others via confiscatory taxes to support something that YOU want.

          In my view, another new millage tax will not be the "magic pill" that everyone seems to think it is. The funds will fall victim to the inevitable waste, fraud and abuse that seems to permeate government programs.

          Also, we already have a millage for the Zoo, where does this stop?
          (And, yeah, I'm a DZS member, too)

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          Jerry Teets

          10:27 am on Friday, July 6, 2012

          Perhaps I'm mistaken, but I don't believe the millage goes to the city, but is directly for the DIA, managed by board members from each of the 3 counties affected. Like you, we are members, and will continue to do so, even afterward.

          I don't think the DIA itself has been wasteful. The theory behind this proposal is to provide running operations funds for 10 years so the fundraising can concentrate on building the endowment to a point where it could then cover all costs from that point on.

          Unfortunately, I think that because the DIA is in the city of Detroit, there are a large percentage of metro residents that don't want a single cent to go inside the city. Some of these institutions are for everyone, and they were founded where they are when the city was a jewel of our country. If they disappear, something like this would never be rebuilt. That would be the shame.

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          Alan Stamm

          3:58 pm on Tuesday, July 10, 2012

          To confirm what Mr. Teets says in his comment, passage would provide revenues directly to the DIA, audited annually by each county's new Art Institute Authority.

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          NO Dia Tax

          10:27 am on Saturday, July 28, 2012

          It stops on August 7th, when tri-county voters exercise common sense and vote NO ! This millage is DOUBLE that of the zoo millage. It's all done in the dark of night, intentionally placed on the August primary ballot instead of the November general when voter turnout is higher. Where have the "support the DIA NOW" ads been ? Non-existent. No cuts or belt tightening has occurred since 2009. A 20% reduction in low paid staff was parlayed into an 18% raise for executives making over $200K a year. Was there any MONEY saved, or just the APPEARANCE of "budget cuts" and "belt tightening"? The CITIZENS want the INSTITUTION to succeed - that doesn't mean shoring up the pay and bennies of the senior staff. Does Detroit's police or fire chief make $200K a year? Does ANY big city manager, anywhere in the country? In this economy - doubtful.

          Alan Stamm

          3:58 pm on Tuesday, July 10, 2012

          Opinion essays in two area publications are excerpted for balance:

          * Downtown Birmingham/Bloomfield: "We recommend voting YES to fund a county arts authority, although we would have preferred to see a mandatory regional authority established, as the DIA, like the Detroit Zoo, is a regional asset. Separate county authorities acting independently are counterproductive to a regional approach to preserving worthwhile regional cultural institutions." -- July issue editorial http://bit.ly/LFFD7p

          * Crain's Detroit Business: "We have a chance to establish a steady stream of revenue for the DIA for the foreseeable future. The citizens of Southeastern Michigan have a chance to vote for a modest increase in our taxes that will give the DIA the stability it so desperately deserves.
          ". . . Do your part and be a part of our community wherever you live in Southeast Michigan. Each vote is going to be very important for our future. It's time for all of us to take a part in making Detroit and the DIA an important part of that future." -- Keith Crain, chairman of Crain Communications, Inc., July 9 column

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          NO Dia Tax

          10:27 am on Saturday, July 28, 2012

          Even The Patch noted that the DIA, Detroit Institute of Arts, or even the word MUSEUM are ABSENT in the Oakland County ballot language. We don't know WHERE the money is going, although its ASSUMED its for the DIA. So WHY DOESN'T IT SAY SO? Are we just supposes to blindly trust the government to do the right thing? Have funds set aside for ONE CAUSE ever been raided to support another? Would the DIA "raid" their own endowments? FUNNY - THEY ALREADY HAVE - TWICE. And they got two trust administrators and a Wayne County Probate Court judge to approve it, all very covertly and quietly. WHY?? We'll keep digging.....

          Gary Briggs

          10:21 pm on Tuesday, July 17, 2012

          Zoo, mass transit, DIA. These SMALL millage increases will become more and more common as cities struggle to deal with their dwindling tax base. Personally I am sick and tired of it. I just visited the Zoo after not being there for quite some time and was not impressed with any of the great updates. Keep Your DIA. Why don't all of you art lovers just volunteer to staff the museum so you can spend more time there. I will be voting NO.

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          Russ Matika

          8:23 pm on Thursday, July 26, 2012

          I don't see how the DIA, with $100 million of unrestricted funds and a total fund balance of $175 million, can claim they they'll fail (close their doors) without these millages. Part of their operating plan is to increase their fund balance to $400 million by the time the millages expire in 10 years. Doesn't sound like they're going broke to me. It just looks like they want the tri-county taxpayers to bail them out from the tax cuts they received from the state. If this was such a good plan why don't the ballot proposals mention that the County Art Institute Authorities will be turning over the monies they collect to the DIA? Why do they say an Institute Services Provider instead? Was this done to confuse voters into thinking the millages were going to support Art in their own county? Very shady.

          Reply

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