City reiterates facts about Arts Tax funds following recent media reports

The City of Portland is reiterating key facts about the Arts Education and Access Fund balance following recent media coverage that incorrectly states more than $8 million in Arts Tax funds is sitting unused.

Inaccurate reporting has led to mischaracterizations of the fund balance that are now being repeated across outlets, contributing to broader public misunderstanding.

The City of Portland is not holding more than $8 million in unused Arts Tax funds. Describing the fund balance as "unused" or "reserves" misrepresents both how the program works and how the funds are managed.

Arts Tax funds are actively managed and distributed throughout the year to support arts education in schools and local arts organizations. Funds are not sitting idle but are distributed throughout the year to ensure consistent support for schools and arts organizations. Disbursing all funds at once would create funding gaps later in the year.

In fiscal year 2024-25, only $330,000 (not millions) was added to the fund balance, demonstrating careful and responsible fiscal management that has maintained a positive fund balance in accordance with state law.

Fund balance over time

Because the City's annual financial reports capture the fund at or near its highest point, year-over-year figures can appear unchanged, creating the impression that funds are accumulating or going unused. However, the model above shows how theArts Access Fund balance fluctuates following a predictable annual cycle: balances rise after April tax payments and decline as funds are distributed throughout the year.

Audit findings and next steps

The City Auditor released a report this week that identified opportunities to improve accountability and strengthen reporting on the use of Arts Access Funds.

The audit did not identify misuse of funds. Instead, it highlighted opportunities to strengthen oversight, reporting, and the long-term sustainability of the Arts Tax.

Many of these recommendations are already being implemented, including updated intergovernmental agreements with participating school districts.

Related

The Arts Tax supports Portland's creative future-Pay by April 15 | Portland.gov

Arts Tax: City needs to make improvements to deliver on voter approved arts education and grants commitments | Portland.gov

New City Audit Outlines Opportunities to Strengthen Arts Access Fund | Portland.gov