Virginia Beach will create a dedicated pot of money for funding the arts

Stacy Parker, The Virginian-Pilot
·3 min read

VIRGINIA BEACH — Taxes, road projects, school improvements — the usual suspects top recent budget discussions at City Hall, but a new issue also has risen this spring.

Funding for arts and culture is a priority for the city to meet the needs of its growing arts community. The city council will create a new dedicated arts fund in the fiscal year 2025 budget, and recently explored funding options.

“I’ve seen, particularly in the post-COVID environment, our arts organizations struggling,” said Councilman Michael Berlucchi, who has been outspoken about the issue.

At last Tuesday’s council meeting, City Budget Director Kevin Chatellier provided several possible sources of money that could support the arts.

Council members are in favor of using 20% of the amusement tax, which is an admission tax on concert, theater and other entertainment tickets collected city-wide. Chatellier said 20% of the amusement tax would equate to roughly $1.5 million a year.

“This is a good way to solve a problem that we’ve had for a long time, and it’s being able to do it within our existing funds,” said Vice Mayor Rosemary Wilson.

Currently, 100% of the amusement tax feeds the Tourism Investment Program (TIP) fund for tourism-related projects. It’s one of several trustee taxes, also called fiduciary taxes, collected by a business and remitted to the city. Other trustee taxes support the TIP including taxes on hotel stays, restaurant meals and cigarette sales. The fund would able to sustain the 20% amusement tax reduction without major consequences, Chatellier said.

Art initiatives in Virginia Beach have been growing in recent years, with more events — including festivals — popping up.

In 2023, Virginia Beach Arts and Humanities Commission provided $624,000 in community project grants to art organizations, but more groups requested tens of thousands of dollars outside the annual budget cycle. The council approved an additional $2 million outside the budget process for festival sponsorships and other programing.

“That demonstrated the need,” Berlucchi said. “By creating additional capacity, it allows some flexibility, creates more opportunities.”

And new groups are asking for city support. Virginia Musical Theatre, a long-established organization that holds performances at the Sandler Center, came before the city council in January with an emergency request. The 32-year-old theater company was struggling to make ends meet and needed $150,000 to complete its 2023-24 season.

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Wilson described the request as “wake-up call.”

The council also has recently heard from residents lobbying for a dedicated funding source for arts and culture. A new group of arts advocates — Citizens for VB Arts — turned out en masse at the two public budget hearings earlier this month. Members spoke about the wide-reaching benefits of art programming.

“The arts transcend all cultural backgrounds and ages as one of the connecting fabrics of community,” said Kate Pittman, executive director of the ViBe Creative District, at the April 17 budget hearing. “The arts are a driving force for attracting people to a city or a place for the quality of life benefits that the arts bring with them.”

The arts fund will be added to the proposed budget through a process called reconciliation May 7. A vote to adopt the budget will be held May 14.

Stacy Parker, 757-222-5125, stacy.parker@pilotonline.com