Tool #10: Protecting (and Growing) HOT

Municipal HOT funding has had a significant impact on the local arts ecosystem of both large and small communities in our great state. In fact, these funds are the largest source of public funding for the arts in Texas.

It’s important that our elected officials see the positive impact the arts have on our state and municipal economies. The good news is that, increasingly, municipalities in Texas today are recognizing that the artistic community creates an intrinsic value and that preservation of and investment in that artistic community will likely have a direct impact on tourism and the hotel and convention industries. 

The ideal situation is one in which your municipality is levying the maximum HOT and is distributing the maximum amount to the arts. If your municipality is not currently levying the maximum HOT and/or is not distributing the maximum amount to the arts, connect with your municipal leaders and advocate for the maximum in both cases. 

Of course, it’s hard to advocate for increased funding when you don’t have the data about how your community is using HOT. Remember that report we mentioned in Tool #1? If you can’t find your municipality it likely means that they have not reported their data, as required. Contact your municipal leadership and point them to the State Comptroller’s website for the guidelines for municipal HOT revenue and rate reporting (see resource below).

Or maybe HOT funding for the arts is currently at 0%. If you’ve met with your leaders about HOT, as suggested in Tool #1, and are hitting a dead end again and again, your next best step is likely coalition building within the arts community to further push for funding.

You’ll want to gather economic impact data and analysis. Check out the resources below for some places to start, including information from Americans for the Arts’ Arts & Economic Prosperity Study (AEP5), the National Association for State Arts Agencies, and the Federal Bureau of Economic Analysis. In addition, information and data about tourism can add to your argument. Below, you’ll find travel impact data provided by the “Travel Texas” in the Office of the Governor. Furthermore, reach out to Texans for the Arts Foundation—we can help you as you consider which approach you want to take.

If you have the opportunity to meet with a decision maker at the local, state, or national level, you can take along a Creative Industries: Business & Employment in the Arts report for their respective region or district in the state. These reports provide arts related business data which can be helpful to share when talking about how the arts help build and sustain economic vibrancy. Set up an account here to access these reports.

In addition, while municipal HOT funds are an important source of support for the arts, there are other public funding sources for artists and arts organizations. The Texas Commission on the Arts (TCA) and the National Endowment for the Arts (NEA) are two grant funders to be aware of if you’re not. You’ll find helpful links to both at the bottom of this page. 

If you’re a nonprofit and are wondering about your ability to advocate and/or lobby, and the distinction between the two, the definitions below are a good starting point. Discuss these definitions with your staff and board members and make sure everyone is on the same page regarding what is and isn’t appropriate for your organization.

• Advocating is "the act of pleading or arguing in favor of something such as a cause, idea or policy.” 

• Lobbying is when you are attempting to influence legislation or specific public officials to take direct action on specific legislation.

When it comes to protecting (and growing) HOT, advocating would include asking your municipal leadership to please support funding (or increasing funding) for the arts as it is an investment in your community that will lead to a higher quality of life and increased tourism. Lobbying would include asking your municipal leadership to take direct action on passing a specific ordinance or new municipal code provision to direct the expenditures of X% of HOT for the arts—a call to action on specific legislation. Both are legal by a 501(c)(3), as long as any financial investment in "lobbying" does not equal more than 20% of your total organizational budget. Note: this is not intended to constitute legal advice. Consult with a lawyer if you have questions about your organization’s involvement in lobbying.

For more information on advocating and lobbying as it pertains to nonprofit organizations, see the “Advocacy vs. Lobbying” resources below.