The Power, Peril, and Promise of the Creative Economy (House Small Business Committee hearing, January 19, 2022)
Summary
Printed record of the House Committee on Small Business hearing held January 19, 2022, The Power, Peril, and Promise of the Creative Economy, Small Business Committee Document Number 117–043. Opening statements came from Hon. Dean Phillips and Ranking Member Hon. Blaine Luetkemeyer. Witnesses were Carson Elrod, co-founder and co-leader of Be An #ArtsHero and director of government affairs at Arts Workers United; Nataki Garrett, artistic director of the Oregon Shakespeare Festival; Sandra Karas, secretary-treasurer of Actors' Equity Association; and Raeanne Presley, co-owner of Presleys' Country Jubilee, testifying for the National Independent Venue Association (NIVA) Plains Chapter. The appendix prints their statements, answers to questions from Hon. Troy Carter, and letters submitted for the record.
Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used
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“The Power, Peril, and Promise of the Creative Economy (House Small Business Committee hearing, January 19, 2022).”
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THE POWER, PERIL, AND PROMISE OF THE
CREATIVE ECONOMY
HEARING
BEFORE THE
COMMITTEE ON SMALL BUSINESS
UNITED STATES
HOUSE OF REPRESENTATIVES
ONE HUNDRED SEVENTEENTH CONGRESS
SECOND SESSION
HEARING HELD
JANUARY 19, 2022
Small Business Committee Document Number 117–043
Available via the GPO Website: www.govinfo.gov
THE POWER, PERIL, AND PROMISE OF THE CREATIVE
ECONOMY
THE POWER, PERIL, AND PROMISE OF THE
CREATIVE ECONOMY
HEARING
BEFORE THE
COMMITTEE ON SMALL BUSINESS
UNITED STATES
HOUSE OF REPRESENTATIVES
ONE HUNDRED SEVENTEENTH CONGRESS
SECOND SESSION
HEARING HELD
JANUARY 19, 2022
Small Business Committee Document Number 117–043
Available via the GPO Website: www.govinfo.gov
U.S. GOVERNMENT PUBLISHING OFFICE
46–711 WASHINGTON : 2022
HOUSE COMMITTEE ON SMALL BUSINESS
NYDIA VELÁZQUEZ, New York, Chairwoman
JARED GOLDEN, Maine
JASON CROW, Colorado
SHARICE DAVIDS, Kansas
KWEISI MFUME, Maryland
DEAN PHILLIPS, Minnesota
MARIE NEWMAN, Illinois
CAROLYN BOURDEAUX, Georgia
TROY CARTER, Louisiana
JUDY CHU, California
DWIGHT EVANS, Pennsylvania
ANTONIO DELGADO, New York
CHRISSY HOULAHAN, Pennsylvania
ANDY KIM, New Jersey
ANGIE CRAIG, Minnesota
BLAINE LUETKEMEYER, Missouri, Ranking Member
ROGER WILLIAMS, Texas
JIM HAGEDORN, Minnesota
PETE STAUBER, Minnesota
DAN MEUSER, Pennsylvania
CLAUDIA TENNEY, New York
ANDREW GARBARINO, New York
YOUNG KIM, California
BETH VAN DUYNE, Texas
BYRON DONALDS, Florida
MARIA SALAZAR, Florida
SCOTT FITZGERALD, Wisconsin
MELISSA JUNG, Majority Staff Director
ELLEN HARRINGTON, Majority Deputy Staff Director
DAVID PLANNING, Staff Director
(II)
CONTENTS
OPENING STATEMENTS
Page
Hon. Dean Phillips .................................................................................................. 1
Hon. Blaine Luetkemeyer ....................................................................................... 3
WITNESSES
Mr. Carson Elrod, Co-Founder & Co-Leader, Be An #ArtsHero, Director of
Government Affairs, Arts Workers United, Brooklyn, NY ............................... 5
Ms. Nataki Garrett, Artistic Director, Oregon Shakespeare Festival, Ashland,
OR .......................................................................................................................... 7
Ms. Sandra Karas, Secretary-Treasurer, Actors’ Equity Association, New
York, NY ............................................................................................................... 9
Ms. Raeanne Presley, Co-Owner, Presleys’ Country Jubilee (Presleys’ The-
ater), Branson, MO, testifying on behalf of the National Independent Venue
Association (NIVA), Plains Chapter, in her role as Secretary ......................... 10
APPENDIX
Prepared Statements:
Mr. Carson Elrod, Co-Founder & Co-Leader, Be An #ArtsHero, Director
of Government Affairs, Arts Workers United, Brooklyn, NY .................... 37
Ms. Nataki Garrett, Artistic Director, Oregon Shakespeare Festival, Ash-
land, OR ......................................................................................................... 57
Ms. Sandra Karas, Secretary-Treasurer, Actors’ Equity Association, New
York, NY ........................................................................................................ 60
Ms. Raeanne Presley, Co-Owner, Presleys’ Country Jubilee (Presleys’
Theater), Branson, MO, testifying on behalf of the National Inde-
pendent Venue Association (NIVA), Plains Chapter, in her role as
Secretary ........................................................................................................ 63
Questions and Answers for the Record:
Questions from Hon. Troy Carter and Answers from Mr. Carson Elrod ..... 68
Question from Hon. Troy Carter and Answers from Ms. Sandra Karas ..... 77
Additional Material for the Record:
Ann Marie Miller Letter .................................................................................. 78
Bean Gilsdorf Letter ......................................................................................... 80
Brian McClean Letter ...................................................................................... 81
Brian Marquis Letter ....................................................................................... 82
Christin Crampton Day Letter ........................................................................ 83
Craig Coogan Letter ......................................................................................... 85
Damon Grant Letter ......................................................................................... 86
David HB Drake Letter .................................................................................... 88
Deborah Stewart Letter ................................................................................... 90
DPE AFL-CIO AEMI DEI Policy Agenda ....................................................... 91
DPE - Department for Professional Employees, AFL-CIO Letter ................ 93
Emma Goidel Letter ......................................................................................... 96
Emmi S. Herman Letter .................................................................................. 98
Gabe Long Letter .............................................................................................. 99
Gwenn Seemel Letter ....................................................................................... 100
Hattie Schapiro Letter ..................................................................................... 101
J. Murphy Letter .............................................................................................. 102
Jacob Harvey Letter ......................................................................................... 103
Jacqueline K. Dace Letter ................................................................................ 104
Janet Mullet Letter .......................................................................................... 105
Jay Dunn Letter ............................................................................................... 106
Jayeesha Dutta Letter ..................................................................................... 107
Jorge Delara Letter .......................................................................................... 108
(III)
IV
Page
Additional Material for the Record—Continued
Joshua T. Bennett Letter ................................................................................. 114
Kate Robin Letter ............................................................................................. 115
Kerri Wood Einertson Statement .................................................................... 117
Lily Kephart Letter .......................................................................................... 121
Lora Bottinelli Letter ....................................................................................... 122
Mara Jill Herman Letter ................................................................................. 124
Rachael Viscidy Letter ..................................................................................... 125
San Francisco Mayor London N. Breed, Chicago Mayor Lori E. Lightfoot
and Philadelphia Mayor Jim Kenney Statement ....................................... 126
Sarah Schulz Letter ......................................................................................... 129
Susan Parks Letter .......................................................................................... 130
Vella Lovell Letter ............................................................................................ 131
William Baxter Letter ...................................................................................... 133
Winnie Holzman Letter .................................................................................... 134
Abigail Engstrand Letter ................................................................................. 135
Alex! Jimenez Letter ........................................................................................ 137
Alice Klugherz aka wonderland/wizehart Letter ........................................... 138
Amanda Andrews Letter .................................................................................. 140
Americans for the Arts ..................................................................................... 141
Andy Gaines Letter .......................................................................................... 159
Aria McKenna Letter ....................................................................................... 160
Arts Alliance Illinois ........................................................................................ 161
Arts in a Changing America ............................................................................ 162
Arts Management ............................................................................................. 164
Arts of the Bering Strait Region ..................................................................... 166
Arts Workers United ........................................................................................ 186
Authors Guild ................................................................................................... 282
Beth Jucovy Letter ........................................................................................... 291
Blue Star Contemporary .................................................................................. 292
Brooke Smiley Letter ....................................................................................... 294
Byron Lenair Letter ......................................................................................... 295
Carnegie Hall Corporation ............................................................................... 296
Craft Emergency Relief Fund .......................................................................... 300
CONTRA-TIEMPO ........................................................................................... 306
Dance/NYC ........................................................................................................ 307
Dance/USA ........................................................................................................ 316
Denise G. Johnson Letter ................................................................................ 319
Denver Arts & Venues ..................................................................................... 320
Dia Scott Letter ................................................................................................ 321
Elizabeth Miller Letter .................................................................................... 322
Eric Ragan Letter ............................................................................................. 323
Georgia Kung Letter ........................................................................................ 325
Georgy Rock - Story Lady Letter .................................................................... 326
Get Creative Workers Working Coalition ....................................................... 327
Jack Becker Letter ........................................................................................... 413
Jeanie Bergen Letter ........................................................................................ 414
Jessica Snow Letter .......................................................................................... 415
John Kristiansen New York, Inc. Letter ........................................................ 416
Kady Yellow Letter ........................................................................................... 420
Winifred Helton-Harmon Letter ...................................................................... 422
Krys Holmes Letter .......................................................................................... 423
League of American Orchestras ...................................................................... 424
League of Wisconsin Municipalities ................................................................ 428
Lesley Currier Letter ....................................................................................... 429
Lexie Peveto Letter .......................................................................................... 430
Linda Storm Letter ........................................................................................... 438
Lucy Yeghiazaryan Letter ............................................................................... 439
Mallory Portnoy Letter .................................................................................... 440
Massachusetts International Festival of the Arts ......................................... 441
Michael Grasso Letter ...................................................................................... 443
New Yorkers for Culture & Arts ..................................................................... 444
Nicolette McDermott-Ketchum Letter ............................................................ 449
OPERA America ............................................................................................... 451
Pam Breaux Letter ........................................................................................... 454
Potri Ranka Manis Letter ................................................................................ 457
Rachel Austin Letter ........................................................................................ 459
Ragan Rhodes Letter ........................................................................................ 460
V
Page
Additional Material for the Record—Continued
Recording Academy .......................................................................................... 462
Robin Bronk Letter ........................................................................................... 466
Society of Composers & Lyricists .................................................................... 468
Sophie Peyton Letter ........................................................................................ 471
Steven Kidd Letter ........................................................................................... 472
Taurie Kinoshita Letter ................................................................................... 475
Texas Folklife .................................................................................................... 476
Texans for the Arts ........................................................................................... 478
Thea Martinez Letter ....................................................................................... 480
Theatre Communications Group ..................................................................... 481
West Baltimore Re-Imagining and Redevelopment Project .......................... 485
WESTAF and the Western Arts Advocacy Network ...................................... 489
Wise Fool New Mexico ..................................................................................... 492
THE POWER, PERIL, AND PROMISE OF THE
CREATIVE ECONOMY
WEDNESDAY, JANUARY 19, 2022
HOUSE OF REPRESENTATIVES,
COMMITTEE ON SMALL BUSINESS,
Washington, DC.
The committee met, pursuant to call, at 10:00 a.m., in Room
2360, Rayburn House Office Building and via Zoom, Hon. Dean
Phillips [member of the Committee] presiding.
Present: Representatives Phillips, Golden, Mfume, Delgado,
Craig, Davids, Newman, Bourdeaux, Chu, Evans, Houlahan, Kim
of New Jersey, Luetkemeyer, Williams, Stauber, Meuser, Tenney,
Garbarino, Young Kim of California, Van Duyne, and Fitzgerald.
Mr. PHILLIPS. Good morning. I call this hearing to order.
Without objection, the Chair is authorized to declare a recess at
any time.
And I would like to begin as we always do now to note some im-
portant requirements. Let me begin by saying that standing House
and Committee rules and practice will continue to apply during re-
mote proceedings. House regulations require the Members to be
visible through a video connection throughout the proceeding, so
please keep your cameras on and remain muted until you are rec-
ognized to minimize background noise.
In the event a Member encounters technical issues that prevent
him or her from being recognized for their questioning, I will move
to the next available Member of the same party and I will recog-
nize that Member at the next appropriate time slot provided they
have returned to the proceeding. Should a Member’s time be inter-
rupted by technical issues, I will recognize that Member at the
next appropriate slot for the remainder of their time once their
issues have been resolved. In the event of technical issues, I may
need to recess the proceedings to address them.
And with that, let’s turn to today’s business.
I want to thank all of our witnesses for being here today. It is
a pleasure to have such a talented and accomplished group of wit-
nesses representing the arts sector. As you can see, I am sitting in
for Chairwoman Velázquez, who was unable to Chair this hearing
today.
The arts sector, an important sector, employs nearly 5.2 million
Americans and contributes $919 billion to our national economy. In
my congressional district, the influence of the creative economy is
all over the place. Writers, photographers, musicians, and design-
ers launch small businesses, employ workers, and help Minnesota
make it great through their art.
(1)
2
But the impact of the arts economy is not confined to America’s
largest cities. It is evident in every part of the country. America’s
675,000 art-centered businesses are present in every congressional
district throughout the nation. Unfortunately, the pandemic has
touched nearly every business in the arts economy.
Creative businesses and workers usually rely on in-person gath-
erings and live events to sustain their enterprises. However, as the
virus spread throughout the country, lead Americans to stay home
and socially distance. Ninety-nine percent of entertainment produc-
tions canceled events throughout the pandemic so far, resulting in
a loss of $557 million in ticketed admissions alone. At the height
of the pandemic, 63 percent of creative workers experienced unem-
ployment and 95 percent lost creative income.
The live events industry is a crucial component of the creative
economy that has struggled greatly throughout the pandemic. This
industry comprises not only theatres and music venues, but also
musicians and performers and those that support live events such
as planners, caterers, designers, and so much more. These workers
and small businesses have seen precipitous declines in revenue due
to the ongoing COVID-19 pandemic and related public health con-
cerns, with countless events and gatherings being canceled or de-
layed for now the third year in a row.
To help mitigate the impact of the pandemic on this industry,
Congress created the Shuttered Venue Operators Grant program,
known as SVOG, as many have come to know it. To date, the pro-
gram has delivered over $13 billion in grants to struggling venues
throughout the country. This funding has helped many businesses,
including several in my district, avoid permanent closure.
However, SVOG was not accessible to the many independent con-
tractors and small business owners that comprise the broader live
events industry, leaving them totally out in the cold. Last August,
I held a listening session with business owners in the live events
industry in Minnesota and heard heartbreaking stories of dreams
delayed and hardships faced. And 5 months later, Congress has yet
to take action.
It is crucial that we pass additional small business targeted relief
to help those small businesses most impacted by the growing ongo-
ing pandemic, including those in the live events industry itself.
These funds would help business owners keep their doors open and
workers employed, and it would help strengthen our economic re-
covery as well with the understanding that arts and culture are the
second-highest sector for value added per dollar in the United
States’ economy.
It is important to note as well, the benefits of the arts go well
beyond economic. They have a substantial impact on our country’s
social, civic, and cultural well-being. Alongside preserving and cele-
brating culture, research shows that as creative and artistic enter-
prises arise, ancillary businesses are more likely to form around
them, creating jobs and stimulating local economies.
But the wounds the pandemic inflicted on the arts economy are
deep and painful and potentially long lasting. If we want the indus-
try to return to pre-COVID trends and continue to be an economic
engine for local communities, these businesses need more support
and investment. Investing in the creative economy will help this
3
crucial sector recover while also fueling overall economic growth for
the United States.
So today, I hope this hearing allows us to examine the challenges
that those operating in the creative economy continue to face. I also
look forward to discussing policies that can help support this im-
portant sector to all of us.
With that, I would like to yield to the Ranking Member, Mr.
Luetkemeyer, for his opening statement.
Mr. LUETKEMEYER. Thank you, Mr. Chairman. And I appre-
ciate you filling in for the Chairwoman this morning.
As COVID-19 continues to disrupt daily lives, we have seen
Americans double down on their cultural and creative consumption
to regain a sense of normalcy. In addition to the creative arts abil-
ity to provide individuals with comfort, joy, and even hope during
the challenging times, the arts can also ignite economic growth and
recovery after hardship strikes. Creative organizations and enter-
prises are revenue and job generators not only within their imme-
diate sphere but also act as a catalyst, stimulating economic activ-
ity in adjacent sectors such as tourism, hospitality, transportation,
restaurants, and many others. Culture and the arts are not con-
fined only to metropolitan areas. In fact, rural and heartland com-
munities also have their own significant reservoirs of homegrown
creative assets that can be mobilized for social, cultural, and eco-
nomic good.
Nationwide, the creative economy generated an impressive 4.3
percent of our nation’s gross domestic product, or $919.7 billion in
2019. The creative arts employed nearly 5.2 million workers prior
to the pandemic, accounting for nearly 3.3 percent of the United
States’ workforce.
Unfortunately, this industry has not been immune to the
COVID-19 crisis. During the worst of the pandemic, nearly all en-
tertainment events were canceled creating significant financial
losses across the board of businesses themselves, local govern-
ments, and adjacent businesses reliant on their success.
At the same time, employment in this sector plunged, and while
there has been some increase, workers in the creative arts sphere
remain among some of the most heavily affected with 11 percent
more unemployment rates than compared to pre-pandemic levels.
2021 ushered in a tentative rebound in the creative sector over
the past year. However, there are several major stressors threat-
ening to reverse this fragile recovery. The Omicron variant of the
corona-virus threatens to usher in a new wave of closures and re-
strictions devastating to arts industries reliant on human inter-
action. The meteoric rise in inflation is manifesting in higher sup-
ply costs, threatening businesses whose financial cap is already se-
verely strained for weathering a 2-year pandemic, wage hikes, and
rents locking in at higher prices. Unlike large businesses who may
have deeper financial reserves, small businesses are often financed
by owners’ personal savings placing them in grave personal finan-
cial risk during periods of high inflation.
Increased inflation means less buying power which in turn trans-
lates to a decreased ability to hire and retain qualified employees.
Unfortunately, with last week’s Consumer Price Index reading of 7
percent and the wholesale inflation rising to 9.7 percent year over
4
year, a challenging economic environment for small business will
continue. Unlike other industries who may be able to take advan-
tage of automation and technology to replace people, the creative
arts rely deeply on human skill and ingenuity.
As a sitting Member of Congress and Ranking Member of this
Committee, it is my distinct honor and privilege to welcome our
witnesses today. I would like to thank all of you for participation.
I look forward to your conversation.
Mr. Chairman, with that I yield back.
Mr. PHILLIPS. Thank you, Mr. Luetkemeyer.
And now I would like to take a moment to explain how the hear-
ing will proceed. Each witness will have 5 minutes to provide a
statement and each Committee Member will have 5 minutes for
questioning. Please ensure that your microphone is on when you
begin speaking and that you please return to mute when you are
finished.
With that, I would like to introduce our witness for the day.
Our first witness Mr. Carson Elrod. Mr. Elrod has been a fierce
activist in the creative sector, most notably as a cofounder and co-
leader and director of Government Affairs for Arts Workers United,
Be An #ArtsHero. Arts Workers United is an arts advocacy organi-
zation dedicated to establishing the arts and culture sector of the
United States by means of support, investment, and representa-
tion. When he is not championing for arts and culture workers, Mr.
Elrod is a professional actor who has appeared in live theater, mo-
tion pictures, on Broadway, and much more.
We welcome you, Mr. Elrod.
Our second witness is Ms. Nataki Garrett. A change maker and
trailblazer, Ms. Garrett is a nationally recognized director and the
sixth artistic director of the Oregon Shakespeare Festival (OSF).
The first woman to artistically lead a $44 million theater company
and OSF’s first Black female in the role. Prior to her role at OSF,
she served as our acting artistic director at the Denver Center The-
ater Company, as well as associate dean and the co-head of the Un-
dergraduate Acting Program at the CalArts School of Theater. We
welcome you, Ms. Garrett.
Our third witness is Ms. Sandra Karas. Ms. Karas has married
her passion of arts and advocacy, serving as the secretary Treas-
urer of Actors’ Equity Association, a union of professional stage ac-
tors and stage managers in the United States. She is a licensed tax
and finance attorney and serves as the director of the New York
City Volunteer Income tax assistance program, sits on the Board
of Directors of the New York Local of Screen Actors Guild, Amer-
ican Federation of television and radio artists, and is even an actor
herself.
We welcome you, Ms. Karas.
And now I would like to yield to the Ranking Member, Mr.
Luetkemeyer, to introduce our final witness.
Mr. LUETKEMEYER. Thank you, Mr. Chairman.
Our next witness is Ms. Reanne Presley. She is a co-owner of
Presleys’ Country Jubilee Theater and Branson Visitor TV. Pres-
leys’ Theater is a multi-generational, family-owned business and
was the original live music theater in Branson, Missouri, Hosting
its first show on June 30, 1967. In addition to being a small busi-
5
ness owner, Ms. Presley is a devoted community leader. She be-
came the first woman elected Mayor of Branson in 2007 and went
on to serve 4 terms. She has previously served as branch of City
Council, all of them for 10 years. Prior to her government service,
Ms. Presley was Chair of the Missouri Tourism Commission and
served in leadership positions on several community boards, includ-
ing as Chair of the board of directors at Skaggs Community Hos-
pital and Board of Directors of the Springfield and Branson Na-
tional Airport, and the Branson Lakes Area Chamber of Commerce.
Due to her hard work and exemplary leadership skills, Ms. Presley
was honored as the recipient of the Missourian award in 2009. In
addition to her sending her own views as a small business owner,
Ms. Presley is here representing a National Independent Venues
Association (NIVA), formed in mid-April of 2020 in response to the
ill effects of the COVID-pandemic. NIVA Members include many
small, independent venues, promoters, and festivals across the en-
tire nation.
Ms. Presley, it is a pleasure having you testify before this com-
mittee. I look forward to your valuable insights I know you will
provide today. It is good to see you again. Ms. Presley and I, just
for clarification purposes, worked together when I was the Division
of Tourism Director in the State of Missouri and she was the leader
in the Brandon area for all of the different tourism activities and
venues there. So it is great to see you again, Reanne and welcome
to the Committee.
With that, Mr. Chairman, I yield back.
Mr. PHILLIPS. We are going to expect you to sing a song, Mr.
Ranking Member.
Mr. LUETKEMEYER. Well, that is a good way to have us send
everybody off.
Mr. PHILLIPS. For short hearings. Anyway, thank you, sir.
Thank you to all our witnesses for being here today.
And with that, I now recognize Mr. Elrod for your opening state-
ment for 5 minutes.
STATEMENTS OF CARSON ELROD, CO-FOUNDER & CO-LEADER,
BE AN #ARTSHERO, DIRECTOR OF GOVERNMENT AFFAIRS,
ARTS WORKERS UNITED; NATAKI GARRETT, ARTISTIC DI-
RECTOR, OREGON SHAKESPEARE FESTIVAL; SANDRA
KARAS, SECRETARY-TREASURER, ACTORS’ EQUITY ASSOCIA-
TION; RAEANNE PRESLEY, CO-OWNER, PRESLEYS’ COUNTRY
JUBILEE (PRESLEYS’ THEATER)
STATEMENT OF CARSON ELROD
Mr. ELROD. Thank you, sir. Chairman Phillips, Ranking Mem-
ber Luetkemeyer, esteemed Members of the Small Business Com-
mittee, thank you so much for your invitation to join today’s
groundbreaking hearing.
I am an arts worker. I am a professional actor and one of the
5.2 million Americans that animate our creative economy. Arts
workers like me support over 673,000 businesses, many of them
small, that add $919 billion in value to our nation’s economy. That
is five times more than agriculture and nearly $300 billion more
than all of transportation.
6
We are big business because we are local business, from Kansas
to Kentucky and Alaska to Alabama. Every state in the union is
home to tens of thousands of arts workers whose labor contributes
more than a billion dollars to each state’s GSP.
Our arts institutions are like stars that anchor a dynamic solar
system of ancillary businesses. You build a theater or a museum
and you can watch hotels, restaurants, and other small businesses
grow up around them. The socioeconomic light of our creative busi-
nesses strengthens communities and stimulates their economies.
Our nation’s creative economy is in peril. In January of 2020, I
had just been cast in a role in a television show that promised to
be a gamechanger for me both professionally and financially. On
March 13, 2020, that job evaporated and I joined 2.7 million of my
fellow arts workers for 15 months of total unemployment. During
this time, I joined Brooke Ishibashi, Jenny Grace Makholm, and
Matthew-Lee Erlbach in starting Be An #ArtsHero and Arts Work-
ers United to relentlessly campaign for federal relief, recovery, and
a hearing just like this one.
I was grateful to Congress for the Federal Pandemic Unemploy-
ment Compensation program, but even as the pandemic persists,
that pandemic relief, like my jobs, has evaporated. And without
union work, I lost my union health insurance. For the first time in
my life I am on Medicaid. My last show got canceled because I,
with my cast, caught COVID. I had an upcoming show this spring.
It has been canceled because of COVID.
My story is not unique. While I had some savings and the privi-
lege to dedicate my life to this advocacy, so many, especially in the
BIPOC, LGBTQ+ and disabled communities have been dispropor-
tionately impacted by this pandemic and they do not have it as
good as I do. And I think I have it pretty bad.
I am still haunted by a conversation I had with Patsy Bouressa
from the SIMS Foundation in Austin, Texas. They provide mental
health services for music workers. In just 1 month, four of their cli-
ents became so hopeless that they killed themselves. We cannot let
the human infrastructure of our creative economy vanish into other
industries or worse. The loss to our families, our culture, our com-
munities, and future generations and the economy would be incal-
culable.
Arts workers should be the backbone of our post-COVID recov-
ery. The creative economy is a jobs multiplier with a normal
growth rate of 4.45 percent. That is nearly double that of the rest
of the economy. And the human need to gather, to find community,
to share cultural experiences will be enormous after this pandemic.
Congress can translate that need into strategic investments that
will jumpstart the American recovery built on imagination, innova-
tion, creativity, and community. To accomplish this, I recommend
that:
Congress commission a GAO report to fully explore what Con-
gress can and should do to stabilize and stimulate the creative
economy.
Ensure that unemployed American arts workers retain unem-
ployment benefits so that arts workers can stay arts workers.
Immediately pass the Performing Arts Tax Parity Act, the Create
the Place, that HITS Arts, the Arts Education for All Act, the Cre-
7
ative Economy Revitalization Act, and the 21st Century Federal
Writers Project.
Finally, Congress should work with the president to create a sec-
retary of Arts and Culture.
You have the opportunity to ignite not just a sunrise but a
supernova of creative small businesses, triggering a chain reaction
of such socioeconomic prosperity that history will remember this
Congress as the Congress that provided the rocket fuel needed to
launch us into the new American century defined by the incredible
specialized labor of American arts workers and the 21st Century
American Creative Economy that they drive. Thank you so much.
Mr. PHILLIPS. Thank you, Mr. Elrod.
And now I would like to recognize Ms. Garrett for 5 minutes for
your opening statement. Ms. Garrett?
STATEMENT OF NATAKI GARRETT
Ms. GARRETT. Thank you very much for recognizing me, Chair-
woman Velázquez, Representative Phillips, Ranking Member
Luetkemeyer, and the Members of the Committee. I want to thank
you for inviting me to appear before you today.
I am the artistic director of the Oregon Shakespeare Festival,
otherwise known as OSF. I am honored to be with you and share
how COVID-19 has affected the arts sector, specifically OSF, to
highlight our economic and social impact and to offer ways Con-
gress can support the recovery of the creative economy.
Founded in 1935, OSF is a Member of the National Theater
Communication Groups and the Performing Arts Alliance. Prior to
the pandemic we were a $44 million flagship nonprofit theater and
one of the largest economic drivers of the southern rural Oregon
economy. In a typical year, we welcomed over 400,000 people from
all over the world to the town of Ashland, Oregon, a town of 20,000
people that has the same density of restaurants and hotels per
resident as New York and Paris. OSF generates more than a quar-
ter billion dollars of economic activity in the region annually, and
we are responsible for a full 20 percent of its economic activity
overall. Simply put, the arts are a powerful economic engine that
drives our region.
In March of 2020, we had just opened our season, my first as ar-
tistic director. Within 6 days of opening, COVID forced us to shut
it all down. We had already spent about $20 million to get the
shows ready for the stage and patrons had paid more than $6 mil-
lion for tickets that had to now be refunded. And over the next few
weeks, 90 percent of OSF’s nearly 500 employees, including actors,
crewmembers, carpenters, box office staff, craft artisans were laid
off. Eight hundred twenty-nine performances of our 11 scheduled
productions were shuttered and 2,300 community engagement and
education events were canceled. Within a month, we laid off 500.
That 500 led to 5,000 in our town and 20,000 across the region.
In September of the same year, the Alameda fire struck through
the region and destroyed more than 2,000 homes and businesses,
including the homes of some of the remaining OSF employees. We
set up a food bank, provided emergency housing, and dedicated a
significant part of our annual gala to the relief effort.
8
I am haunted by the choices I had to make to keep OSF afloat.
But it is even more difficult for the culturally-specific and smaller
venue or community-based arts organizations and their arts work-
ers. Their work has a huge impact on the creative economy and
often goes under resourced. I think about the hundreds of thou-
sands of artists around this country who drive so much of our econ-
omy but themselves live in poverty. How can we continue viewing
an industry that makes up more of our GDP than agriculture and
mining combined as a luxury or a purview of the elite? How do we
look millions of arts and cultural workers in this country in the eye
and not take simple, common sense steps to simultaneously make
their lives and our economy more secure and robust? How can we
continue cutting arts programs in schools when we know that stu-
dents who participate in arts education are more likely to go to col-
lege and less likely to go to jail? The reality is that the infusion
of federal dollars, along with the generosity of our donors and pa-
trons, without that it is likely that I would not be here today be-
cause OSF would not be here today. I am very thankful for the as-
sistance this Committee provided through the Shuttered Venue Op-
erators Grant program, formerly known as SOS and other forms of
COVID relief.
At OSF, we have a tradition. Following the curtain call of our
last outdoor play each season, every person in the company carries
a candle and silently enters a darkened theater to the strains of
Greensleeves. A veteran company Members speaks Prospero’s
speech from act IV Scene 1 of The Tempest. It is like a prayer.
‘‘Our revels now have ended . . . ’’ It is a promise, 1,200 audience
Members from all walks of life hang on every line. The candles are
extinguished and the company silently and reverently exits the the-
ater. It marks the ending of a season of hard work and beautiful
art making and the promise that the house lights will be rekindled
once more.
In 2020, I was afraid that those candles had gone out forever.
But I am here to tell you that we will make sure that the creative
economy endures. As an artistic director, I am committed to ensur-
ing that those candles burn bright and those words are spoken for
years to come.
The power you hold, you can assure the flickering candle of the
creative economy can continue to burn bright. Right now, bills such
as the Creative Economy Revitalization Act and the Performing
Arts Parity Act and the Arts for Education for All Act, bipartisan
bills that positively impact the economies of every state and enjoy
broad public support, are waiting for Congress to act. It is not a
radical act, nor is it controversial. It is recognizing a simple fact
that the arts and the artists drive local economies and at the same
time lift people out of darkness.
I thank you for this time and thank you for what you will do
next. And I look forward to your questions. Thank you very much.
Mr. PHILLIPS. Thank you so much, Ms. Garrett.
And now I would like to recognize Ms. Karas for 5 minutes for
your opening statement. Ms. Karas?
9
STATEMENT OF SANDRA KARAS
Ms. KARAS. Chairman Phillips, Ranking Member Luetkemeyer,
thank you for the invitation today. I am Sandra Karas, an actor,
Secretary-Treasurer of Actors’ Equity Association, and a Member of
SAG-AFTRA’s New York local board. I also appear before you as
a small business owner. I am a tax attorney, accountant, and finan-
cial advisor with a practice here in New York. You are going to
hear today about the power of the creative economy, and the live
arts in particular, rightly so. The arts and culture sector is respon-
sible for 5.2 million jobs and 4.3 percent of the GDP. The live arts
have a huge halo effect on small business, many of which would
not exist without the arts. Patrons spend on restaurants, parking,
taxis, hotels, childcare. Nationally, that amounts to more than
$100 billion in additional spending.
The creative economy drives revenue growth for business and
workers. The reason, unions. I am speaking to you today on behalf
of Actors’ Equity Association, the union of actors and stage man-
agers in the live theater. Our Members work across the country
Los Angeles’ 99-seat non-profits, to Kansas City’s Starlight Theater
and St. Louis’ Rep, to Buffalo’s Kavinoky Theater, and the
Wintergarden on Broadway, and everywhere in between. Our con-
tracts include healthcare and pensions. As the original gig workers,
we are the proof that companies need not choose between profits
and W-2 employee protections.
The pandemic has indeed created a crisis. While many busi-
nesses have recovered, the new variant has brought tremendous
uncertainty and job loss and a live arts performance once again
just last week had closed in IRIS. Earnings and health insurance
were put at risk. When live events close, the small businesses that
depended on them also feel the crunch. There is one way you can
help all of us arts workers. Congress has an opportunity to pass
the Performing Artist Tax Parity Act (PATPA), which modernizes
a provision enacted by President Ronald Reagan and will provide
relief to entertainment workers. Performing artists pay a high per-
centage of their income on necessary out-of-pocket costs to look for
work and stay current in the industry. We pay agents and man-
agers, transportation to auditions, maintain our websites,
headshots, video reels, and more. It can amount to 20 to 30 percent
of our gross income. Previously this was deductible. Because of an
unintended consequence of tax reform, we lost the deductions of
our unreimbursed business expenses. This means a tax increase,
often of thousands of dollars for working-class artists. I have seen
heartbreaking stories at the Volunteer Income Tax Assistance Pro-
gram, here at our Equity office, where volunteers process thou-
sands of free tax returns annually for low-income arts workers.
One young taxpayer, upon learning that his liability increased by
more than 30 percent, wondered aloud how he was going to pay his
rent.
As we return to work, the last thing we need is a tax code that
punishes us for seeking work. This bill is targeted to low-income
and middle-class taxpayers, not the high-earning stars.
I commend Representatives Chu and Buchanan for leading the
effort to pass this bill in the House. Thank you, also to Representa-
tives Newman and Garbarino for cosponsoring. I ask you all for
10
your support. PATPA is Equity’s top legislative priority and it is
endorsed by unions and employers. But it is not our only priority.
We also released a federal policy agenda for inclusion in the arts,
in partnership with our fellow arts unions. The National Endow-
ment for the Arts should create a chief diversity officer to drive in-
clusion deeper into the grant process. And we strongly support the
CROWN Act to end hair discrimination in our industry.
On behalf of all the arts unions, I want to thank the Small Busi-
ness Committee for helping to make sure that unions were treated
fairly during the pandemic by allowing access to the Paycheck Pro-
tection Program. Our staff worked harder than ever and this pro-
gram was a lifeline to them and to our employers.
I will conclude today where I started. The arts sector is a robust
contributor to our national economy because of a strong union pres-
ence, not in spite of it. In an industry where competition is keen
and there are more workers than jobs, we ensure workers have a
voice in their workplace, secure standards, and safe working condi-
tions. That is why the PRO Act has our full support. It will reform
outdated labor laws and protect against exploitation and employee
misclassification, which is unfortunately far too common in our in-
dustry. It will help the arts and culture sector, and workers, pros-
per into the next century. That is the true promise of the creative
economy.
I thank you for the privilege of appearing before you today.
Mr. PHILLIPS. Thank you, Ms. Karas.
And now, Ms. Presley, you are recognized for 5 minutes for your
opening statement.
STATEMENT OF RAEANNE PRESLEY
Ms. PRESLEY. Good morning, Chairman Phillips, Ranking
Member Luetkemeyer, and distinguished Members of this Com-
mittee. Thank you for inviting me to add my voice to today’s hear-
ing.
My name is Raeanne Presley and I join you from my home in
Branson, Missouri. I am co-owner of Presleys’ Country Jubilee,
along with my husband Steve and in-laws, Gary and Pat Presley.
As a former mayor of Branson and former Chair of the Missouri
Tourism Commission, I can attest that family friendly entertain-
ment and the creative spirit is at the heart of our community.
In 1967, the Presley family opened the original show on Highway
76. Lloyd and Bessie Presley, along with their four children,
dreamed of entertaining the fishermen and families with whole-
some comedy and music. Opening Branson’s first live music theater
on a small, unpopulated two-lane road was risky but the Presley
family was passionate about entertainment and determined to
make their living at it. They exemplify the entrepreneurial spirit
that drives our industry and helped to build our city.
This March, Presleys will open our 56th season. Our 1,500 seat
theater which started with folding chairs has expanded nine times
over the years. We now employ 70 people, produce more than 200
events each year, and have a weekly television show averaging
300,000 viewers. Our preshow features a gospel singalong in our
mezzanine, ushers to take you to your seat, Coke, popcorn, and cin-
namon nuts to enjoy. The heart of our show remains the same—
11
to provide lifelong family memories and opportunities for folks to
forget their troubles for a time.
Many Branson venues, including Presleys, were fortunate to re-
ceive Shuttered Venue Operators Grants and PPP loans. We are
grateful to our elected leaders, especially co-sponsors Representa-
tive Williams of this Committee, Representative Welch, and so
many of you who have recognized that our industry matters. With-
out your support for the Save our Stages Act, I might not be here
today to tell you about the challenges we face beyond the pan-
demic.
So let me just make sure to say thank you for this lifeline for
our industry.
The reaction of our audience when we reopened showed just how
much people need live entertainment. When the curtain went up
on that opening song, the audience stood for a sustained standing
ovation. I heard similar stories from venues coast-to-coast.
Our economy also needs live entertainment. A 2019 study
showed that for every dollar spent at a small venue, $12 of eco-
nomic activity was generated. While Branson’s population is just
over 12,000, our theater and music industry employs nearly 2,000
people and helps to bring an estimated 8.2 million visitors to our
region each year. Nationally, more than 80 percent of adult trav-
elers can be considered cultural tourists. They spend more, travel
more often, and stay longer. Simply put, independent music venues
and the creative arts are economic engines for communities nation-
wide.
Today, the rollercoaster ride of the pandemic continues. Tradi-
tionally, about 5 percent of ticket buyers do not attend a perform-
ance but now sagging consumer confidence is causing national no-
show rates as high as 50 percent. This is devastating because most
of our venues rely on in-house sales to pay core bills.
We are also now confronted with increased costs due to inflation.
Just in the past month, I have received notices of impending price
increases from our trash hauler to our concession suppliers to our
janitorial service. And like many other businesses, we face the dif-
ficult challenge of finding workers in a competitive environment.
Remote work is not an option for our business. It is especially chal-
lenging to compete with national employers who are able to offer
higher starting wages. The passing of the Save Our Stages Act was
a break we needed to survive the pandemic. Now in the face of in-
creasingly difficult economic conditions, we are looking for the
break we need in order to thrive.
I have seen the ability of the creative economy to bring Ameri-
cans to their feet. Out of pure joy amidst the darkness of the pan-
demic, I have seen the power of the creative economy to transform
a two-lane stretch of blacktop into a world-famous tourism destina-
tion.
Thank you for recognizing the importance of our industry and
the value our small businesses add to communities across America.
I urge you to keep the creative economy top of mind as you con-
sider policies affecting small businesses.
Thank you for your time and leadership.
Mr. PHILLIPS. And thank you, Ms. Presley. And to all of our
witnesses. We appreciate what you have shared with us and you
12
very much humanized an issue of great importance to all of us on
this Committee and to our country.
Now I would like to begin by recognizing myself for 5 minutes.
And Mr. Elrod, I would like to start with you. You have referenced
the pendulum of openings and closings and stops and starts of so
many entertainment businesses. And as you know better than any-
one, the live events industry in particular has been disproportion-
ately impacted by the pandemic.
So can you share a little bit more with all of us how are theater
companies in particular responding to the chaos and disruptions of
new openings and cancelations due to Omicron in particular?
Mr. ELROD. Well, I think I can speak to my own experience in
that, you know, the show that I was working on this fall, The Al-
chemist for the Red Bull Theater Company was an off-Broadway
show at the New World Stages in midtown Manhattan. And after
15 months of being completely and totally dark, finally Broadway
was starting to come back. Off-Broadway was starting to come
back. So here we were. It was a comedy. And despite the masks,
things were starting to look up and come back to normal. But just
a few weeks into our run we started to see the impacts of Omicron
all across the city as different shows had different people calling
out and especially on Broadway where shows are a little bit better
resourced with understudies and covers and replacements for ev-
erybody in the building, even those most-resourced shows were fac-
ing challenges that were ending up putting shows on hiatus or clos-
ing them altogether. So we were kind of watching from the sideline
and then on December 15th it came to us in the form of me coming
to the theater with symptoms, taking a Rapid test, seeing a posi-
tive result, and three other people in the cast got it. And without
the understudies, without the extra stagehands, the theater was
faced with only one choice and that was to close the show com-
pletely. So it is very, very hard.
As Raeanne Presley said, remote work is not an option. We all
have to be there in the building. And if we are sick, we cannot be
in the building. And you can see the consequences writ-large all
over the country anywhere people have to gather together in en-
closed spaces.
Mr. PHILLIPS. I appreciate that and also your advocacy for
more targeted relief dollars for an industry grappling with the chal-
lenges and in particular the actors and the artists that are so im-
pacted. So thank you.
Ms. Garrett, you have noted that the Oregon Shakespeare Fes-
tival received $10 million I believe in SVOG funds and also $5 mil-
lion in PPP funds. Could you share with the Committee in more
detail how those allocations helped the organization survive?
Ms. GARRETT. Yes. If you can imagine at a $44 million organi-
zation, our spend rate was $5 million a month. And even when we
had to shrink everything down to about 10 percent of our staff we
were still going through a lot of money giving back tickets and rev-
enue and that kind of a thing. And keeping our lights on and the
doors open and all of that stuff. That resource is supporting all
kinds of things including we were able to open a production last
summer. We were able to do a production, our first winter produc-
tion that opened and closed without any COVID-related closures,
13
thank God. But we are spending $200,000 a month on tests just
to try to keep people aware of whether or not they are sick or not.
We have a very kind of robust system around making sure that we
do have a lot of people covering because closing for COVID was not
a option for us to be able to open that show. And every time we
do spend money at OSF to make sure that we keep going, we take
the entire town with us. Everybody comes with us on that journey.
So the restaurants are open because of the PPP money. The hotels
are open because of the SVOG money. So in rural Oregon we are
a complete ecology interconnected with one another. And so for
every dollar that we received from the federal government, every
resource, every single dime helped to make sure that we could buoy
the entire region, especially through the fire. And now we have a
little bit of resource to be able to hopefully open this spring. We
are all crossing our fingers but this is with a lot of resource being
spent in advance to get the shows open and a lot of resource being
spent for testing.
Mr. PHILLIPS. And I thank you. I see my time is expiring so
now I would like to recognize the Ranking Member, Mr. Luetke-
meyer, for 5 minutes.
Mr. LUETKEMEYER. Thank you, Mr. Chair.
I will start out with a question for Ms. Presley here. In your tes-
timony here you talk a little bit about dealing with inflation, with
rising costs, worker problems. Can you elaborate a little bit on that
from the standpoint of how you are able to absorb those costs, how
you are able to keep going? I know you mentioned the SVOG pro-
gram as one of the ways to be helpful, and PPP. So can you paint
a fuller picture for me, please?
Ms. PRESLEY. I am happy to, Congressman Luetkemeyer.
Thank you again for allowing me to speak.
I would say that the uniqueness of a small business which there
are millions, of course throughout our nation. Inflation is certainly
going to impact in many ways as we look forward. While the PPP
money and the Save Our Stages money was critical to keeping our
employees on payroll this last year and to allow us to not borrow
an enormous amount of money to keep open, uncertainty is the fu-
ture.
In terms of inflation, my really only two options are to pass costs
along to our customers or to diminish my customer experience. And
while I am getting notices from some vendors about their increases
in price, I also know that I will simply open bills come May and
June and find that things cost more. Those are very real for all of
our small business owners. And to remind you as a small business
owner, we do not have a deep financial backstop. We are it and we
each sign agreements with our banks and our lenders to put our
homes on the line and our assets on the line. We are happy to do
that. We are happy to grow our businesses. But it is difficult. And
with the uncertainty with COVID it is unknown. We need con-
sumer confidence to rally. We need people to feel safe and want to
travel and spend their money on entertainment when they have
other needs as well.
Mr. LUETKEMEYER. You know, there is a limit and as a small
businessperson, you know, you can price some of those increase
into your higher ticket prices but there is a price point in which
14
your customer base is going to say no, we cannot afford this or no,
we are not going to do this. Or they are going to cut back on the
number of shows they go see. If you could elaborate. In Branson,
you have an enormous number of shows and not only venues but
a number of shows per day. And so a lot of people go there and
they see multiple shows over 2 or 3 days. They are going to cut
down on those number of shows if they raise price points. Have you
looked at that, what the price point would be and how much it
would affect not only yourself but your other venues there in
Branson, how much of an increase they can sustain?
Ms. PRESLEY. Well, Branson has been built on very family-
friendly, affordable entertainment. That is one of our hallmarks
and we are proud of that. There are 37 theaters right now that
host performances and that price point is frankly unknown. We
will pass along some of the cost increases to our customers in in-
creased ticket prices this next year. I wish I could say that I knew
but I do know that human nature tells me that as we have seen
at venues across the nation, people are going to not buy that extra
t-shirt. They are maybe not going to have the merchandise to take
home that they would have normally had. They may not buy as
much concession stands or food and those are really vital things for
our independent venues to help with the bottom line. I am hopeful
that our customers will stay with us and realize that they want a
quality product, and so far we have seen that to be the case but
we are always looking for ways to make a family vacation afford-
able.
Mr. LUETKEMEYER. Thank you for that.
Ms. Garrett, you made a comment that really kind of stuck with
me and that was the ripple effect of the SVOG program’s dollars.
You were saying that to keep your entertainment venue going it is
not only important to the venue and the workers themselves but
to the rest of the businesses in the area. And so would you like to
elaborate a little bit more on that? I think it is a very important
point. Ms. Garrett?
Ms. GARRETT. Yeah. Thank you very much for the question.
OSF is in a rural area so we are a kind of interdependent ecology.
Everything that we do affects everyone around us. And so when I
said that we laid off 500 people and 5,000 people lost their jobs lo-
cally, you can imagine the impact. This is a place that people
moved to with their families to work at OSF and other businesses
around here. And with our tourism at a standstill, it was very dif-
ficult for people to keep their businesses open without OSF being
open.
Mr. LUETKEMEYER. Thank you. I see my time has expired.
Thank you, Mr. Chairman. I yield back.
Mr. PHILLIPS. Thank you, sir.
And with that I now recognize Ms. Davids from Kansas, the
Chair of the Subcommittee on Economic Growth, Tax, and Capital
Access.
Ms. DAVIDS. Thank you, Chairman. And thank you everybody
for attending. And then for those who are offering testimony today,
I appreciate your time to talk about this important topic as it re-
lates to importance of the creative arts sector for our small busi-
ness community.
15
We are hearing about it, how hard the sector was hit and con-
tinues to be by this pandemic. And the artists and creative arts
small businesses have had to work really hard to overcome some
of the unique and particular challenges that are being faced. In
Kansas, the arts sector makes up around 3 percent of our state’s
GDP and employs about 50,000 Kansans.
I feel like I do have to mention I have spent some summers going
down to Branson and Lake of the Ozarks, too, reciate seeing you
on here today, Ms. Presley.
But because of the importance to Kansas, I was really proud to
be one of those folks to help create the Shuttered Venue Operators
Grants program, providing directed relief to theaters and music
venues and other performance venues.
Kansas small businesses received around $99 million in SVOG
grants last year, which really provided a lifeline to hundreds of
small business. And I have continued to advocate for additional di-
rected relief funds for these kinds of businesses. And as the most
recent variant has shown us, we are not quite out of the pandemic
yet.
So in conversations with local organizations, nonprofits like the
Arts Council of Johnson County, we know that they have been
working to support creative partners throughout the community
during the pandemic. And most recently I started focusing on small
business education and helping artists understand some best prac-
tices. You know, business and legal practices.
And so I wanted to ask Ms. Karas, do you think that the artistic
community could benefit kind of more broadly from programs like
this, business counseling and guidance especially for those small
artist-led businesses?
Ms. KARAS. Well, certainly the business owners can benefit from
any kind of development that can be offered to them in terms of
education, what is available out there for economic development,
certain trends that people often do not see when they are running
their own business. They might not see the trends that are going
on around them.
As to the ripple effect that, of course, it will have, it is on the
individuals they hire, the workers. And so everybody will benefit
from it to the extent that the education is out there. When govern-
ment gets involved in looking at very carefully an assisting busi-
ness, we all benefit. Not just the people who own the businesses
but the people who work in them. And as I stated before, the ancil-
lary businesses that benefit from all of the arts economy is some-
times immeasurable. We do not even sometimes stop and think
about who might be creating a business around something just be-
cause there is an arts employer in the area.
So, yes. The short answer is yes. I think business owners and
business developers could benefit from all the education and devel-
opment that could be available to them.
Ms. DAVIDS. Thank you.
Ms. Garrett, I was hoping to hear from you about, you know, we
heard you talk about the kind of ripples and those economic shocks
that we see, and particularly as it relates to in-person program-
ming, I am curious about your view of how we can help small busi-
16
nesses in this sector stay resilient as we think about further pan-
demic and maybe other types of disruptions.
Ms. GARRETT. So locally, I think it is important to make sure
that the federal government keeps infusing resources back into
these ecologies and communities. For mine in particular, I think
just like every other industry we are going through this sort of
great resignation. The more dollars that are lost within these in-
dustries that are interconnected, the more likely people are to leave
to go to other industries that are more likely to be able to survive.
And creative workers in particular are leaving in droves. And so
they are leaving restaurants and they are leaving theaters and
they are leaving their day job. They are leaving everything so that
they can figure out a way to survive. So more infusion of resource
would really be helpful. I thank you for the question.
Ms. DAVIDS. Thank you. I see my time has expired.
Chairman, I yield back.
Mr. PHILLIPS. The gentlelady yields back.
And now I recognize the Vice Ranking Member of the Committee,
Mr. Williams of Texas for 5 minutes.
Mr. WILLIAMS. Thank you, Mr. Chairman. And thank you to all
of our witnesses. Like all of you, I am a small business owner in
Texas. I have been for 51 years. And my father was a great singer
in the stages around at the Casa Manana in Fort Worth, Texas. So
I grew up seeing a lot of your industry.
When I talk to business owners back in Texas, they are con-
cerned about our supply chains, the out-of-control inflation and the
constant threat of tax increases coming from the Democrats in
Washington. Each one of these crises poses new challenges for
small businesses and adds additional costs for them to keep their
lights on. This leaves business owners with tough decisions in
order to keep doing what they love. They may have to reduce cap-
ital investment. They may have to hold off on hiring new employ-
ees or pass the costs if they can along to consumers and raise
prices as they are able to keep their doors open.
So Ms. Presley, my question to you is, in your testimony you
talked about how your business has struggled with the increase in
the cost of goods due to inflation. We all have that problem. Can
you discuss the adjustments your business will have to make to off-
set these cost increases? And furthermore, how do you think tax in-
creases proposed by the Democrats could affect your business?
Ms. PRESLEY. Well, thank you, Congress Williams. And thank
you as well for your sponsorship of the Save Our Stages Act.
As I said, we will open again in March, and I think some of the
difficult decisions we will make, this is the time of year when we
order the sequined jackets and costume and when we make up-
grades to our stage. When we look at hiring new performers. Those
are all decisions that I believe we will make a bit on a hope and
a prayer to be honest. We are very much focused on what is in
front of us. Not so much the unknown. We feel like with COVID
and all of the issues that you and Congress must have on your
plates, we respect that.
One thing that would be helpful I wanted to mention while I had
the opportunity is, you know, with the SBA, many of us received
grants that helped our businesses. Those grants were a bit late in
17
coming and we are hoping very much for an extension of time to
spend that money. That could make a big difference for many of
our venues. And so I wanted to put that before you as well. We are
hopeful that COVID will abate. We see that happening in the East
but not here yet. And we are very much hoping to be able to oper-
ate our businesses as we have done in the past and keep our costs
in line so that folks can have a great time.
Mr. WILLIAMS. Okay. I was the Republican lead as many of you
said today, and I appreciate that on the Save Our Stages bill that
ultimate turned into the Shuttered Venue Operators Grant Pro-
gram, better known as SVOG. This was a necessary piece of legis-
lation because it helped businesses that were some of the first to
close and the last to open as a result of the pandemic. Unfortu-
nately, the SBA took months to get this program up and running
and many venues did not survive these delays. And I applaud busi-
nesses like yours, Ms. Presley, for being so resilient and able to
hold off through this incompetency we saw at the SBA in order to
access these funds. Now, throughout this process, I worked exten-
sively with NIVA to communicate the horror stories that we were
hearing from the industry as businesses failed to get answers from
the SBA regarding the program.
So another question to you, Ms. Presley, can you expand on your
experience with the SBA and any issues you faced when attempt-
ing to receive the SVOG funds?
Ms. PRESLEY. Well, we had not worked with the SBA in the
past. I was thinking about all the things that we have gone
through in 56 years. We have been through 9/11 and gas shortages
and recessions so this one is a new one. But while our experience
with the SBA was good, we did have that delay and that certainly
made everyone tense and nervous. I will applaud NIVA and your
efforts as well, Congressman, to continue to find ways. This was a
new program, something unique, and we recognize that. So the dol-
lars did not flow as fast as we wanted them to. But that said, I
think there is a new opportunity to look at now. I know as Ms.
Karas talked about, an opportunity for SBA to expand their out-
reach to business like mine. Many people want to grow their busi-
nesses. Entrepreneurs want to start new businesses. We are sel-
dom happy with the status quo and I believe SBA could be a back-
stop for us. Could provide a lot of information and knowledge that
an entrepreneur might not have. So I will say that I look forward
to kind of renewed efforts.
Mr. WILLIAMS. Well, easier, not harder would be what we want
the SBA to understand.
Lastly, businesses across the country are struggling to find and
retain talented workers.
Mr. PHILLIPS. Mr. Williams, your time has expired, sir. I am
sorry.
Mr. WILLIAMS. My time expired. I return to you, Mr. Chair-
man.
Mr. PHILLIPS. All right. Thank you, sir.
And with that I recognize the gentlelady from Illinois, Ms. New-
man, for 5 minutes.
Ms. NEWMAN. Thank you, Mr. Chair and thank you, Ranking
Member, for putting together this great testimony today. So let me
18
start by thanking all of the witnesses on this call today. You have
brought light and love to when we desperately needed it through-
out our nation. I am a firm believer that the arts not only heal and
help us get through hard times but also unite those that typically
are not united. So thank you for your great work.
I will also say a couple of other things. Having been an assistant
producer and a copyrighter in my early career, I have very genuine
feelings on this topic because those were hard times when I had
no health care. I went without jobs for long periods of time. And
it was just a constant struggle. So I clearly have the lived experi-
ence around it but also, you are living it right now in a much more
challenging environment. So I that much more applaud your amaz-
ing work. I am also a former small business owner. So kind of a
360 on this topic. So I feel for everyone.
I have a forward-looking set of questions. And I am going to go
to Ms. Karas first. So being a Member of the Women Labor Caucus
and being a product of unions and being a strong advocate for
unions, there are just some very creative things that unions have
done over time to support their workers in these times. We may
have this issue again. I do not think we can deny that now.
So Ms. Karas, what do you think we can do to support our
unions to help our artists and creative community to be stronger?
Are there some ideas you have in a forward-looking way that would
help us anticipate further bad times at some point?
Ms. KARAS. Thank you. I appreciate this question. I have been
in unions for a long, long many years and every time I think about
what unions do for the workers it all comes down to providing the
security of a group that supports itself and supports one another.
You know, we call each other sisters and brothers in our organiza-
tions and there is a kind of a family feeling. We depend on one an-
other. My colleague, Mr. Elrod and I are in the same unions and
he knows he can depend on me and I know I can depend on him
when the going gets rough. That is what solidarity is all about. So
that is part of what unions provide for people. But moreover, the
job security while they are working to know that they are going to
be taken care of, and employers, you know, it is no accident the
biggest entertainment employers in this country and maybe in the
world hire multiple numbers of unions to do every project they
have. Why is that? Because they know what they are getting. And
that is another kind of security that we all look at. We want to
make sure that when we show up on the job we are going to be
treated decently, we get good pension, health, and other job securi-
ties. And we also know that our employers appreciate that we are
ready to show up and provide professional work in a disciplined
manner. And looking forward, I think that some of the government,
the COVID pandemic relief that our union received along with
hundreds of thousands of other businesses was a lifeline to keep
the doors open, to keep the lights on, and some semblance of staff
even if you could not keep everyone to provide securities for the in-
dustry. We provided assistance to Members who could not pay rent,
utilities, medical expenses, by donating to the Actors Fund, which
is a charity, a national charity.
Union workplaces also know that they provide better conditions
for women and people of color than nonunion employers do. And
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the wages are higher, the benefits are better. And so when workers
are looking for work, many of them want to go to unions because
they know that they will have that security. And we are seeing
that kind of interest arise among young people today throughout
the country because they know if they ban together and tell their
employer what they need, they are stronger together. So off the top
of my head those are just some of the remarkable benefits of a
union. And going forward, I think the stronger the union move-
ment is, the more the workers will be there for the American econ-
omy.
Ms. NEWMAN. Well, thank you for your comments. And yes,
well heard. I, obviously, as some of the folks mentioned, am a
strong proponent of the PATPA—because when we have stronger
unions, we have a stronger middle class. So thank you. If I
may——
Ms. CHU. [Presiding] The gentlelady’s time has expired.
Ms. NEWMAN. Okay. Thank you. I yield back. Thank you.
Ms. CHU. And now, Mr. Fitzgerald, the gentleman from Wis-
consin, is now recognized for 5 minutes.
Mr. FITZGERALD. Thank you, Madam Chair.
Ms. Karas, there has been some interest from some arts and cul-
ture organizations including in my home state of Wisconsin of tem-
porarily removing the $300 cap on charitable giving deductions to
allow more money to kind of flow into the nonprofit creative sector
which seems like obviously an easy thing to do and a good thing
to do. But you are here not only representing the Actors’ Equity As-
sociation but also their foundation. Have you guys looked at this
and do you know what the impact might be? This would be, I
guess, considered support for the Performing Arts Tax Parity Act.
Ms. KARAS. Yes, thank you very much, Congressman. You
know, of course we have looked at all the tax changes that have
come about in the Tax Cuts and Jobs Act and the recent adjust-
ments that have been made to the code and the above-the-line de-
duction for charitable contributions has certainly been a boon to
the charities who many of which thought that they, and did actu-
ally, lose contributions because of the less use of the itemized de-
duction schedule. The reduced use I should say. So yes, I think any
contributions to nonprofits are always going to be welcomed. Is it
going to have a huge effect on someone’s tax liability? Possibly not
at the rate of 300. But if it was unlimited you would see the non-
profit world be much more supported by the contributors because
they would have an incentive to do it now if they are not using the
itemized deduction schedule. So it is a definite yes. We certainly
approve of it. And while it does not have a direct effect on the Per-
forming Artist Tax Parity Act, that, too, will support businesses
and employers as workers are able to stay in the industry, feel con-
fident in the industry because they have equalized their incomes
with other taxpayers who earn the same amount of money.
Mr. FITZGERALD. Very good. Thank you for that answer.
Let me turn to Ms. Garrett. Ms. Garrett, kind of a trickier ques-
tion, something that obviously many entities are dealing with but
I know the Oregon Shakespeare Festival announced that proof of
full vaccination or a negative COVID test will be required to attend
performances in 2022. We are kind of already seeing the effects of
20
this requirement. But how much of an impact do you believe this
will have on ticket and concession sales and particularly I guess as
we get closer to spring and into the summer months?
Ms. GARRETT. So thank you very much for the question. OSF
has had for years had a very loyal patron base that comes back
year over year, over year, over year. And they love the company.
They love the artists that work here and would do anything to
make sure that those artists are saved. So what we have experi-
enced in these last few months of producing plays is a real robust
participation in making sure that you are vaccinated and you have
your card and that you have your proof of the test and, you know,
that your child has a proof of the test and everybody is willing to
go in in masks. We were kind of surprised at how compliant our
patron base is. And again, that is because we have families. We
have legacy families that have been coming here for 30 years, 40
years. Grandparents bringing grandchildren. And so there is a real
desire to make sure that everybody is safe. So it will not affect our
bottom line I do not believe because of the desire for people to be
safe. And we have had patrons say as they are standing in line
with their cards and everything, you know, thank you for doing it
this way. We want to be able to be safe, too, as we walk into these
spaces.
Mr. FITZGERALD. Yeah, I think the sands are shifting quickly
on those issues and I think we will see how that plays out.
Thank you for being here today, and I yield back, Madam Chair.
Ms. CHU. The gentleman yields back.
And now Ms. Bourdeaux from Georgia, is now recognized for 5
minutes.
Ms. BOURDEAUX. Thank you so much, Madam Chairwoman.
The creative economy is a very vital part of our nation’s economy
and enriches our communities through all sorts of cultural con-
tributions. I know after being deprived during COVID for a while,
just sitting and hearing people sing in person just was such a won-
derful, spiritual lifting up. So I personally experienced how great
it is to get back to the arts.
In my district, arts-related businesses employ an estimated
10,000 people and venues in Georgia’s 7th District received some
of the much-needed relief in the form of over $2 million through
the Shuttered Venue Operators Grant Program. But clearly more
work needs to be done.
The SVOG provided this important boost, but one of the things
we are starting to think about more now is what are we going to
do if we keep getting hit by these COVID variants over and over,
and over again going forward? And how do we need to be thinking
about how we support the arts industry? How do we support indus-
tries like this over time if that is going to be the scenario?
So I guess starting with Mr. Elrod, maybe if you could talk a lit-
tle about this and what is going on in the industry as they are
thinking about this. Obviously, theater is about being in person
and that is challenging. What do you think the creative industry
is going to need both to recover from the pandemic but also to real-
ly prepare for the long-term if this does, in fact, become something
where we are going to have to deal with it for another couple
years?
21
Mr. ELROD. Well, thank you very much for the question. I think
one of the things that is interesting is that with COVID-19, espe-
cially with Omicron, we are in a situation where we have been hit
by a tsunami. The tidal wave is in and it has not gone out. So we
do not actually know the negative impact on the entire creative
economy right now. And one of the closest things we had is that
Brookings Institution’s report from last summer, Lost art: Meas-
uring COVID-19’s devastating impact on the creative economy,
which measured losses just between April and June of 2020. And
we were talking about $150 billion in lost sales and 2.7 million un-
employed arts workers. So if you extrapolate that out and just keep
multiplying over and over and over again, you really do think
about it in terms of that star analogy that I used in my opening
speech. We are in a situation where there are possibly, probably
many black holes all over the country with lost art, lost institu-
tions, closed venues, and arts workers themselves. Ms. Garrett
talked about the workforce leaving and doing other things. And
when you think about who we are, what we do, and what we pro-
vide, you want these 5.2 million workers doing what we do. You
want all 673,000 businesses to survive this because they do anchor
local dynamic economies. So what there is to do about it is abso-
lutely all the interventions that everybody else has been talking
about. But what I was proposing in my opening testimony is a kind
of creative economy super package. If you take every piece of arts
investment legislation that has been introduced in the last couple
of years, put them together, really make sure there is robust unem-
ployment, you can put together basically a floor underneath the en-
tire industry, especially our arts workers and get us to launch into
this next phase. But because there is so much unknown and the
wave is still in, that is why I was recommending maybe a GAO re-
port or a congressional commission because I think with a $919 bil-
lion industry that has suffered this much damage and continues to
suffer this much damage, we have to take a really deep granular
look at what is happening, what has happened, and what needs to
happen for us to come back.
Ms. BOURDEAUX. Thank you. I am going to run out of time but
I want to just wrap up with this idea. So, for instance, we have in-
troduced legislation. It is called the Fresh Air Act for Business,
which is to improve ventilation in businesses. And the idea is we
need to restructure for the long haul as opposed to just give short
shots of funding in order to just make it through the crisis. And
so I just want to encourage everybody to start thinking about this.
We do not know for sure that that is what is going to end up hap-
pening but I think we need to start planning for that and start
thinking about what is the congressional response if, in fact, this
is going to be something that we need to plan for the long haul.
Thank you so much. I yield back.
Ms. CHU. The gentlelady yields back.
And now the gentlelady from Texas, Ms. Van Duyne, is recog-
nized for 5 minutes.
Ms. VAN DUYNE. Thank you very much, Chairwoman and
Ranking Member Luetkemeyer for holding this hearing.
Early in the pandemic, the effect on the creative economy was
apparent. Shows were halted, venues were shuttered due to un-
22
clear CDC guidance. State and local restrictions were constantly
shifting, making it very hard for small businesses to reopen and
stay open. After a long wait, consumers in many states, such as
Texas where I represent, are now returning to their pre-pandemic
lives. There is no doubt that one of the keys to a thriving creative
economy is an open society. States and localities across the country
should follow Texas’s model.
Unfortunately, those eager to return are now faced with new eco-
nomic challenges. Everywhere you turn, from the gas pump to the
grocery store, prices are rising the fastest in 4 decades, and that
is if you can even avoid empty shelves.
The Democrats’ response continues to be throwing more money
at the problem but at what point do we ask what we are getting
for that money? We spent taxpayer dollars paying people to stay
home from work for much of the pandemic, but it is still hurting
employers. And just last week we had the SBA’s OIG unable to tell
us what happens to the billions of dollars of fraudulent money that
is clawed back from SBA’s COVID relief programs, money that
could be highly beneficial to the very businesses that we are dis-
cussing today.
The creative sector is part of the small business economy and all
small businesses are in desperate need of solutions to inflation,
supply chain struggles, and employment shortages. What we do not
need is another frivolous, multi-trillion dollar spending package
while we are chasing down at least $100 billion in fraud. The fact
is, billions of federal dollars remain unspent and state governments
have so much access to stimulus money that they are now paying
off deficits that were created by their failure to keep a balanced
budget instead of going toward the pandemic.
I am interested, Mr. Elrod, your business is in New York City.
During the pandemic, state and local governments diverted in how
they handled restrictions in their respective communities. In each
of your communities, well, specifically in New York, how did your
state and local restrictions and regulations affect your business and
ability to operate?
Mr. ELROD. Well, in New York City, I was sitting with a friend
of mine. I was on my way to see a Broadway show on March 11th
when we were sitting in a midtown bar and our governor came on
and announced that Broadway was closing. And not far after that,
off-Broadway. And then pretty much the curtain came down and
the lights went out all across New York City. And a lot of people
in retrospect feel that March 11th was too late and that the re-
sponse was too slow and that the virus had already taken hold in
New York City, obviously, a very dense metropolitan area. As an
L train rider, I can tell you we were all in a lot of danger. And so
I believe that what happened was appropriate and prophylactic
against——
Ms. VAN DUYNE. So then you are agreeing that shutting down
was the appropriate response. And I also need to ask, did you un-
derstand that New York City, or New York has received over $272
billion in COVID relief? I am wondering how much of that $272 bil-
lion has been received by the State of New York. Do you feel like
that was appropriately spent on the arts?
23
Mr. ELROD. Well, part of the efforts I was with earlier in the
year, as Be An #Arts Hero we were deciding do we go to the state
and see if we can get American Rescue Plan funds or do we con-
tinue talking to the federal government? And the answer has to be
both. Because what we are really doing here with Be An #Arts
Hero is we are calling it CELP, the Creative Economy Literacy
Project. And what we are trying to do is talk to people like you in
state and local government and say, hey, we are in a profound
amount of trouble. And if you really want to build back in an in-
credible way, we are the way to do it. But you need to stabilize us,
put a floor underneath us, and then you can harness us as a back-
bone of a great recovery. So in my opinion, there is never going to
be enough money spent on the creative economy until everybody
understands just what a phenomenon we are and what an incred-
ible resource is available to policymakers if they would like to take
advantage of us. And that is why I have proposed this kind of
super package to stabilize us and allow us to, you know, help us
to help you build back on the other side of this. After the plague
came the Renaissance. After the 1918 Flu came the Roaring
Twenties. There is going to be a huge appetite for what we have
to offer so we need to be around to offer it and we will jumpstart
this.
Ms. VAN DUYNE. Thank you. My time is done. I yield back.
Thank you.
Mr. ELROD. Thank you.
Ms. CHU. The gentlelady’s time has expired.
And now I recognize myself for 5 minutes.
First, I want to thank Chairwoman Velázquez for calling this im-
portant hearing which I was truly looking forward to as a rep-
resentative of the Los Angeles area, which is the center of film, tel-
evision, and music. It is hard to overstate the impact that the pan-
demic has had on the creative economy. To support a strong, dura-
ble recovery for those industries that employ over 5 million workers
nationwide, we need to ensure that creative professionals are fairly
compensated for their work. And that includes musical artists, like
Members of the Recording Academy who must be fairly com-
pensated, as well as our actors of film and television.
That is why I am proud to have founded and relaunched the bi-
partisan Creative Rights Caucus with my Co-Chair, Representative
Drew Ferguson of Georgia. This caucus will continue to work to
protect the rights of content creators and I look forward to working
with you to further this goal.
I also ask for unanimous consent submit for the record testimony
from the Screen Actors Guild and the American Federation of TV
and Radio Arts (SAG-AFTRA), which represents 160,000 hard-
working professionals in the entertainment industry. And as Chair
I say, so ordered.
So now for my question. Ms. Karas and Mr. Elrod, I am proud
to have introduced H.R. 4750, the Performing Artists Tax Parity
Act of 2021. This legislation would modernize the qualified per-
forming artist tax deduction to ensure that more creative workers
can seek employment without facing steep personal expenses.
Now, I am proud to have pushed for relief for performers. For in-
stance, for the Gig Worker Pandemic Unemployment benefit and
24
for the Mixed Income Unemployment subsidy which were success-
fully included in our legislation to relieve us on the pandemic. And
I am also proud that this Committee supported theaters and
venues through the Shuttered Venue Operators Grant.
But we must do so much more to support the actors, musicians,
and artists who make performances so incredibly special. The
Qualified Performing Artist tax deduction has not been updated in
decades and currently does not meet the needs of performers.
So Ms. Karas, can you talk more about the purpose of this tax
deduction and why we need legislation to modernize it for today’s
economy?
And Mr. Elrod, I have heard from so many performers who have
to pay for extra expenses, like photo and makeup and still not get
the job necessarily. Can you tell us your stories about the expenses
that performers have to face?
Ms. Karas?
Ms. KARAS. Thank you very much, Congresswoman Chu. You
know, we also thank you for your introduction of this bill, H.R.
4750 and the support that we have gotten so far.
PATPA is a correction to an unintended consequences of what
happens when a bill is created by a president, in this case Ronald
Reagan, recognizing the value of entertainment workers in the code
and the provision itself was not indexed for inflation. Congress saw
fit to leave it in the code with the last Tax Cuts and Jobs Act tax
bill and we were grateful for that but we realized that the mod-
ernization is long overdue. What this bill dies is it levels the play-
ing field by equalizing the income that people who work in the per-
forming arts have against people who do not work in the per-
forming arts.
I will just give you a little example. You and I are both single
and I am in the performing arts and you work in an office. And
we both earn $80,000. But I am spending about 25 percent of my
gross income to pay my agent, my manager, to look for work, trans-
portation, continuing education and classes, some equipment, and
especially during the pandemic, we have all had to buy——
Ms. CHU. Ms. Karas, I would like to give time for Mr. Elrod also
to say something.
Mr. ELROD. Thank you very much. I would simply join Ms.
Karas in everything that she was saying. And just on a personal
anecdotal note, of course the challenges of the pandemic have in-
creased personal costs even while we suffered 15 months and more
of total unemployment, we are expected to have the highest quality
Internet, the highest quality computers and cameras and micro-
phones. And for the little work that we are able to do during this
time, we are still paying 10 percent agent commissions. So there
are lots and lots of out-of-pocket expenses that performing artists
have to take on. And they have actually increased during one of the
hardest moments for us. And so something like the passage of the
bill that you have introduced would help us out a lot. And thank
you for introducing it.
Ms. CHU. Thank you so much. My time has expired.
And now the gentleman from Pennsylvania, Mr. Meuser is recog-
nized for 5 minutes.
25
Mr. MEUSER. Thank you, Madam Chairwoman. I thank our
Ranking Member very much, Mr. Luetkemeyer, for bringing us all
together. Very interesting subject. Thank you for all being here.
So I want to just talk a little bit initially about the general busi-
ness concerns that your industry has and you as proprietors and
entrepreneurs and stakeholders. You know, obviously education to
create your best workers, your staff, your talent, education these
days is unbelievably high, very expensive both public and private.
So skills development must be a challenge. Taxes, certain in New
York and other cities are crazy. And the idea of increased tax on
small businesses does not in my view help at all. Keeping your em-
ployees happy, healthy, but as well, safe. You know, because I want
to ask about that a little bit, how public safety weighs in here. Ac-
cess to capital, very important. Your cash flow. You have all been
talking about that. Technology I made a note of but that is some-
thing a little bit different. Capital investment was mentioned about
the ventilators just came up briefly. What sort of additional capital
investments were made to handle COVID and just matters moving
forward. I think people are just generally more health conscious.
And your product, of course, creating that. And your customers.
Now, I understand, see, you folks were shut down, or Broadway.
I am relating this somewhat to Broadway. I cannot speak for
Branson. Shut down for about 18 months, I believe. Now, Japan
was shut down for 6 months, UK was shut down for 12, and yet
even with that build up, you are getting about 66 percent of capac-
ity now. And Japan was very big on the whole ventilator plan. UK
to an extent. They were trying to catch up afterwards. I am not so
sure what was being done on Broadway and Branson and L.A. and
other places.
But the thing is this, look, probably everybody on here has seen
The Phantom, seen Hamilton, seen Wicket and Jersey Boys and
love the theater. So we are very much advocates and proponents
of doing what it takes to help bring this extremely important in-
dustry back. I mean, I have a daughter that lives in Manhattan
and all that is very important.
So the thing is, I want to ask, what would you like to see? Be-
sides additional PPP or even if that is necessary, or the Shuttered
Venue program, what would you do differently? I mean, Monday
morning quarterback is easy. What would you do? What is your
plan moving forward? Where can we be of assistance? Because it
is also notable that, for instance, the NHL, indoor, larger arena,
understand, but they have had a record year. And yet, our enter-
tainment industry is struggling big time.
So I will ask Ms. Presley. I know you are Branson, and Mr.
Elrod, I would like to ask you, what have we learned and what
should we do moving forward that will be favorable to you all and
to your business?
Ms. PRESLEY. Well, thank you, Congressman. I appreciate the
question. It is a difficult choice. There is no way around that. I
think consumer confidence is really where we are focused as an as-
sociation with NIVA. As we have talked about, my business is here.
We are looking out for our guests and our customers and our em-
ployees. We are encouraging masks and we are encouraging vac-
cination but that is where we are here in Missouri. For other
26
venues across the nation there are multiple, multiple, rather dif-
ferent views of this. And of course, going forward with COVID it
is very hard to know.
Mr. MEUSER. And Ms. Presley, I am sorry. I probably had too
long of an opening.
Mr. Elrod, could you speak upon New York?
Mr. ELROD. Thank you very much. I think the short answer is
would it not be great to have a secretary of Arts and Culture? You
know, when we have agriculture and it is in trouble, there is a sec-
retary of Agriculture to say, ‘‘Okay, this is what needs to be done.
Let’s take a deep dive analysis.’’ If we had a secretary of the Cre-
ative Economy or Arts and Culture, somebody at the executive
level on the Domestic Policy Council who could say, ‘‘All right, look
at this $919 billion industry and this 5.2 million person workforce,
look at the jeopardy they are in. Let’s develop together the guid-
ance of what to do.’’ Right off the top of my head, obviously con-
tinuing robust unemployment for the nation’s arts workers would
be fantastic.
Mr. MEUSER. Thank you, Mr. Elrod.
I am running out of time. I will make that recommendation to
our governor of Pennsylvania. And I do believe in the Film Tax
Credit and your industry. So thank you very much.
I am sorry, Madam Chair. I yield back.
Ms. CHU. The gentleman’s time has expired.
And now the gentleman from New Jersey, Mr. Kim, is recognized
for 5 minutes.
Mr. KIM. Thank you. Thank you, Madam Chair.
I would like to start, Madam Chair, by just asking unanimous
consent to enter a letter from Our Pride New Jersey into the
record.
Ms. CHU. So ordered.
Mr. KIM. Thank you.
Our Pride New Jersey is based in Burlington. It is in my district.
And pre-COVID, there were over 19,000 arts-related businesses in
New Jersey that employed more than 80,000 people. In our state,
every art and cultural patron spends over $33 in local economies
each time they purchase a ticket for a cultural event. And that
translates into over $662 million each year in economic impact
when cultural venues are fully in operation. So the creative sector
clearly is having a real impact in terms of creating jobs and eco-
nomic activity.
But I also want to focus on another element here, which is that
it has an impact on our kids. And they have been through an awful
lot over the last couple years.
Back in April I met with the Burlington County Regional Cham-
ber of Commerce. And they connected me with an organization
called Morristown Theater Company in my district. As a nonprofit
arts organization without their own building, they were not sure if
they were eligible for the Shuttered Venue Operators Grant. They
had to get extra creative during the pandemic, even producing
shows out of a parking lot. My office was able to work with them
to confirm that they were eligible and encourage them to apply.
They ended up getting a $200,000 grant. They also utilized the
EIDL, the PPP, employee retention credits, and assistance form the
27
New Jersey Economic Development Authority. They report that
this grant, along with others, allowed them to keep their doors
open and to keep their work going forward.
Just yesterday, I checked in and they were starting rehearsal for
an upcoming production of The Little Mermaid which they are
working on with a lot of little kids in the community. And the kids
are incredibly excited that we are doing this hearing today and
shining a light on the arts and about how it impacts them.
I want these kids and kids all over the country to know that we
are listening to them. That we understand that this is not just
about business. It is about our development and it is about our
education to our kids as well.
So I just wanted to throw this out there. You know, Ms. Garrett,
I know your organization works with professional artists. But if
you are any of the other witnesses would like to speak to the im-
portance of the arts for our children, what they have missed during
this pandemic, and the benefit of investing in the arts, experi-
encing the arts education for our children and our families, and
what it is that we could try to do to just try to make up for this
lost time in terms of being able to give your kids that opportunity
to experience arts but also to be able to participate in it.
So I just kind of wanted to open it up if anyone wanted.
Ms. Garrett, if you wanted to start off.
Ms. GARRETT. I thank you for the question. You know, numer-
ous studies have shown repeatedly that arts education increases
student engagement, helps them learn positive habits and attitudes
and creativity and creative problem solving and teaches critical in-
tellectual skills and observation and helps them learn languages
and mathematics and helps them practice teamwork and all of
that. OSF has been a leader in arts education for more than 50
years. And like I said during my opening statement, you know, we
have 2,300 education and engagement programs that were com-
pletely shut down but served communities across the region. We
have students that come in from all over the West Coast to watch
our plays, to learn something from our artists, to engage in activi-
ties around creative art making. And the loss of that is twofold.
The first is that you lose access to all of those wonderful things
that we all get, we all benefit form when we learn in arts education
programs.
But you also lose that pipeline. I started in arts education pro-
gramming. Most of us who are arts workers did. We started there.
We learned about a craft and we continued to focus on it until we
mastered it. And so without introducing children, you do not have
enough people on the other end who are really interested and en-
gaged.
And here is the thing. Most of us in the arts creative economy,
we have transmittable skills. Carpenters can work in construction.
I run a multi-million dollar, multi-lateral business. I can be a CL
of a different kind of company. You know, you have to sort of thing
about it like that, that we give our skill set to this industry so that
everybody can benefit from it.
Mr. KIM. I think what you raise there about the pipeline. What
you raise there about the pipeline is great. And the last thing I will
just say and I will close is that, you know, I also felt like with my
28
own kids, I have a 4-year-old and a 6-year-old, that getting them
to engage back in arts has been a way to socialize them back into
society after, you know, specially half my 4-year-old’s life has been
in a pandemic. And getting him to go and sing and dance and other
things like that has been so rewarding.
So thank you for what you do. And Madam Chair, I turn it back
to you.
Ms. CHU. The gentleman’s time has expired.
And now the gentlelady from California, Ms. Young Kim, is rec-
ognized for 5 minutes.
Ms. YOUNG KIM. Thank you, Chairwoman, and Ranking Mem-
ber Luetkemeyer, for holding this hearing.
I want to thank all our panelists for your time and engaging in
our conversation with us.
First, Ms. Presley, in your testimony you indicated that your
business is struggling with the increased cost of goods because of
inflation. So can you look at your list of expenses and tell me which
are the biggest price increases that you have noticed in the last 6
months. And as you know, I say this because these price increases,
the inflation, it is expected to persist until well into the middle of
next year. So I wanted to hear your thoughts and elaborate how
this is going to affect your business and your planning.
Ms. PRESLEY. Thank you, Congresswoman, first.
I wish I could say that I exactly know. We are dark right now
and we will open again in March. But I certainly see increases
coming and shortages as well of the type of merchandise that we
sell. I see that in terms of our concession supplies. We saw that
last fall. Not only just price increases but we saw inability to se-
cure cups and different things that we need for our business. We
know that is real. It is unknown yet in terms of insurance costs but
we anticipate that that may happen as well. It is not any one thing
I would say. It is just cumulative and when you run a small busi-
ness like our independent venues do, it is the cumulative things
that actually are most difficult to manage.
Ms. YOUNG KIM. Sure. Well, thanks for your answer. I asked
that because if the businesses have to plan and deal with inflation
well into next year and beyond, it is clear that the problem is not
transitory and we have to deal with it; right? So I just wanted to
ask that.
But I also want to ask a question to you, Ms. Presley. I was in-
trigued by the statistic that you quote that for every dollar spent
at a small music venue, $12 of economic activity was generated for
area businesses. Can you elaborate on that study and share with
us your unique experience with the local economic ripple effect of
Presley’s Theater in Bronson?
Ms. PRESLEY. Well, thank you. Yes, I mean, I suspect if you
think back about the last time you took a vacation, you very sel-
dom go to do one thing and then leave. So we are cognizant that
when our visitors come to Branson, it is usually a visitor party of
about 3-1/2 people and they spend over $1,100 inside our commu-
nity to do things. They buy gas. They eat at the local restaurant.
They for certain go shopping. They are likely to see more things.
People tend to see over three shows when they come to Branson,
Missouri. So I see this with all of our independent venues and
29
small businesses, whether you be rural or urban. You go downtown
Chicago, you are going to see something fun at a music venue but
you are going to stop before and after. Maybe you are going to have
a drink. You took an uber to get to your destination. I think that
it is easy to see how we are able to multiply the $1 into economic
numbers that enhance our entire community. Keeps people em-
ployed.
Ms. YOUNG KIM. Thank you for your answer. You know, like
Ms. Judy Chu, I represent the State of California where we have
Hollywood and movies and entertainment is really the key, one of
the key industries in our state and we welcome everybody and we
can really expand on that dollar spent and generate that economic
activity that we talked about in Missouri.
The next question I would like to ask is to Ms. Garrett. An ongo-
ing theme that we have explored in this Committee is the supply
chain crisis. Businesses, especially the small businesses, are unable
to source goods necessary to create their products or deliver goods
to anxious customers because of the supply chain crisis. And I real-
ize that your businesses, live entertainment is not a good space
business. But have you seen any impact in this regard in the live
entertainment realm?
Ms. GARRETT. Oh, yes. Thank you very much for the question.
So because of the surge and consumer demand and COVID ware-
house closures, we had a whole myriad issues trying to open up our
shows last year and we know we are going to move into the same
problems this year. Cardboard, lumber, containers, trucks, workers,
paint. We canceled early performances because of supply chain
issues for our winter show. And people went on stage with paint
still being wet. The lumber did not arrive in time. It was still sit-
ting out on the water. The molding company had a COVID issue
so they were not able to get things through the supply chain. And
this is going to be ongoing. And after nearly 2 years of expenses
with no audience revenues, the performing arts will find them-
selves facing outsized restart costs.
Ms. CHU. The gentlelady’s time has expired.
And now the gentleman from Pennsylvania, Mr. Evans, is recog-
nized for 5 minutes.
Mr. EVANS. Thank you, Madam Chair.
Ms. Karas, I hope I get your name right, you submitted testi-
mony to the House Ways and Means Committee regarding your
views on the Qualified Performance Arts Tax deduction, a portion
of the Tax Cuts and Jobs Act. Would you mind elaborating on the
effect that this tax increase has had on working middle-class art-
ists?
Ms. KARAS. I appreciate your question, Mr. Congressman.
The very short answer is it has been discouraging. A lot of our
performing arts colleagues have decided to leave the business be-
cause they can no longer sustain the out-of-pocket costs to remain
viable. So they have taken other jobs. They have gone into other
work. And it has been unfortunate that they have had to leave the
industry. Those who have stayed have struggled because as I was
saying before, to have to spend your out-of-pocket money, a write-
off of your gross income and then be taxed equally the way some-
one else with the same wages you have is you are starting behind
30
already. So, for example, if I spend 25 percent of my gross income
on my out-of-pocket show business expenses just to stay viable and
another taxpayer with the same wages does not have it, we are
taxed the same but I have fewer dollars to spend on my home, my
rent, my utilities, my medical care. If I have a family, on any of
those costs. It is very discouraging. So we are hoping that the Per-
forming Artists Tax Parity Act will get passed with all due speed
to put us on a level playing field with taxpayers who have the same
income but do not have to spend the same amount of money to stay
in their jobs. This is vital.
And you know, the Tax Cuts and Jobs Act really stressed tax re-
lief for working middle-class taxpayers. So this is all we are asking
is to be on a level playing field, to pay our fair share of tax, no
more, but certainly no less.
Mr. EVANS. I would like to ask you a follow-up question. One
of our largest exports is entertainment. Can you talk about how
important it is, both for America and for the rest of the world, that
we support the creative economy for this reason?
Ms. KARAS. Thank you. Yes. It is rather astounding, the export
of entertainment around the world. Those of us who are in the
United States take it for granted that we can just have all of this
content at our fingertips. A lot of it is recorded. Much of it is live.
Some of the live has been streamed over the pandemic. But when
you think of the amount, the billions and billions of dollars that is
sold internationally, it is astounding. Code Section 181 to help the
employers, the production costs, the tax subsidies, you know, we
would hope that the cap would be raised on that at some point to
help those employers because the more help they have, the more
production they generate.
Well, as I said before, 4.3 percent of the GDP is the entertain-
ment sector. That is astounding. Most people do not even think
about it because it is ephemeral. There is no durable goods there.
So we are thankful for the support and we hope for all of it from
this Committee as well for the PATPA so that we can enjoy the
same level of spending if our tax burdens are equalized with those
who do not have the burdens that we do.
Mr. EVANS. Very quickly I would like to follow up with Mr.
Elrod on that same question and his response to it.
Mr. Elrod on that question?
Mr. ELROD. I think what is important is obviously there is the
socioeconomic or the economic impact of the export but there is also
the identity of America and the idea of American soft power
throughout the world. As people consume our content, our movies,
as they visit our cities, 68 percent of all tourism is for arts and cul-
tural activities. When people come here from around the world and
they take part in our creative economy, it gives them a sense of
pride and wonder and awe about the power and strength of Amer-
ica inside their collective imaginations. And then they take that
back throughout the world.
Ms. CHU. The gentleman’s time has expired.
Mr. EVANS. Thank you, Madam Chair.
Ms. CHU. Thank you.
And now I recognize the gentlelady from New York, Ms. Tenney,
for 5 minutes.
31
Ms. TENNEY. Thank you, Madam Chair, and Ranking Member
Luetkemeyer. And thanks for holding this hearing. And we appre-
ciate the insight and time of the witnesses as well. And I am hon-
ored to represent Upstate New York, which has a strong history
and culture relating to the arts. I also always wanted to be an art-
ist, but here I am, a politician now. We need a very strong eco-
system of manufacturers, designers, venues that serve artists and
musicians in our greater community, including many historic sites.
A lot of people do not realize that my hometown of Utica is where
Dick Clark went to school and got his start. Annette Funicello of
Mouseketeer fame. Joe Bonamassa, the great musician, Sawyer
Fredericks, and so many others have come from our small city, our
region, who have done an amazing job.
But another thing is on the manufacturing sector, a lot of people
do not realize that the golden artist colors you see when anyone
who is an artist knows what they are, were actually started in my
district in New Berlin—we say New Berlin, not New Berlin—New
York. And I have provided a wide arrange of oil, acrylic, watercolor
paints for earnest for many years. We also have a lot of printing
companies, including my own, but another one I would like to men-
tion is Curcio Printing in Vestal, New York, where there is a lot
of graphic design. And people do not realize I owned a newspaper,
but there is a lot of artistic venues with newspapers, designing ads
designing creative production items for customers. And we did a lot
of that.
My concern is that in so much of this, and what has happened
in my community with these great venues and great artists, is dur-
ing the pandemic these industries have suffered. If they had not
been designated essential, they were forced to shut down, forced to
lose. And thankfully for the PPP program we were able to get some
back. But a lot of these lockdowns are continuing. And even in an
unscientific way which is really put I think a real problem with es-
pecially a lot of our event spaces which we have many people who
come to perform in our region. And it concerns me that if we con-
tinue with these lockdowns, we are not going to get the reopening
and the need for even performing artists, musicians, and others to
be able to get back on stage and we will have to rely on remote
learning. And as we know, there is nothing like being there in per-
son.
So I first wanted to ask Mr. Elrod, since you were very pas-
sionate about this, I had heard from a lot of these event space own-
ers about the shutdowns or inability to have consistency and what
the rules are and how to enforce those and guidance as how to deal
with this.
From your experience in theater and performance space, do you
think that this sort of continuation of this arbitrary decision-mak-
ing and, you know, this process is helping the creative economy.
How would you make a uninformed standard so that everywhere
that our artists perform, whether they are in my community or in
New York, they know what is predictable and how to invest so they
do not waste money on resources. I am trying to protect themselves
and their audiences.
Mr. ELROD. That is a really good question. And thanks for all
that prelude. My first professional job was at the Hangar Theater
32
in Ithaca, New York, so I am familiar with upstate and it is close
and dear to me.
You know, just anecdotally from my point of view and my experi-
ence is at the beginning the shutdowns were intended to keep peo-
ple safe from the transmission of COVID-19 and those government
lockdowns did lead to this 15 to 18 month in forced unemployment
for so many arts workers. And again, when we talk about FPUC,
et cetera, it was not that arts workers were lazy and did not want
to go to work. We could not. So those were the first rounds of shut-
downs.
Now, the shutdowns that I am experiencing, or at least the ones
that I am seeing now, are not necessarily happening because of ar-
bitrary government imposition but because the workforce are get-
ting sick. So like in my neighborhood of Bushwick, Brooklyn, I fol-
low everybody on Instagram and I was going to go see a rock and
roll concert on New Year’s Eve. Well, most of the staff of the venue
got sick. They shut the venue down. And there are a lot of really
cool rock and roll clubs, et cetera, that I would love to see. And
they are all just closed because——
Ms. TENNEY. Okay. Can I reclaim my time? I just want to say
it is great, okay, so your position is the shutdowns.
I want to just ask Ms. Presley if you could weigh in on that. You
know, on inflation or the supply chain. Representative Kim got into
that a little bit with you. Can you just kind of elaborate? Is it just
people are sick or is it inflation and supply chain that is affecting
your industry? You have got 10 seconds.
Ms. PRESLEY. I have to say it is both. We certainly have seen
increased illness here this last month but we are hopeful in the
next month that we will see some of that wane. But consumer con-
fidence is still the driver and whether or not our visitors feel safe
both from the virus and to travel.
Ms. TENNEY. Thank you.
Ms. CHU. The gentlelady’s time has expired.
And now the gentlelady form Pennsylvania, Ms. Houlahan, is
recognized for 5 minutes.
Ms. HOULAHAN. Hi, thank you, Madam Chair. And thank you
so much for the panelists and their testimony today. This topic is
very, very personal to me because my daughter is, indeed, a direc-
tor of theater. A professional director of theater. In fact, she
worked out at OSF when Bill Roush was there and Jacob Padron
is one of her mentors. And so hello out there to OSF.
The creative economy plays a really large role in my community,
too, with 296 small businesses involved in the arts, entertainment,
recreation within Pennsylvania’s 6th Congressional District, which
is just outside of Philadelphia. And many people have mentioned
the Shuttered Venue Operators Grant program having been a life-
line during this time. With that said, especially with Omicron, I
know that many business workers in the creative economy are still
especially vulnerable during this public health crisis.
As Congress is trying to understand the needs for additional
COVID relief, I think we need to be smart about improving these
programs and learning from the challenges that we have experi-
enced in the programs we have rolled out.
33
With that said, I have heard from employers in my community,
like Science Explorers, which is an organization in my district
which has applied for the Paycheck Protection Program grant and
the Shuttered Venue Operators Grant. The business reached out to
my office to express their frustration because the SVOG process
was very complex and they found it to be very time consuming and
burdensome.
So my first question is to Ms. Nataki Garrett. I understand that
similar to Science Explorers at the Oregon Shakespeare Festival
also applied for both PPP and SVOG grants. Can you please de-
scribe your experiences with the Paycheck Protection Program ap-
plication compared to the Shuttered Venue Operators Grant pro-
gram. Particularly, I am wondering if there are ways where we
could be improving the SVOG program to be streamlined and ap-
proved.
Ms. GARRETT. Thank you for the question. Just to be honest
with you, I think the biggest problem was that there was not
enough information. And so our banks did not have enough infor-
mation and so they could not pass on enough information to us.
And then the other thing was the information from the SBA kept
shifting. And so we thought we would have something under con-
trol and then we were given something else. And then we had to
submit this paper and get this thing done.
We had a little bit of leeway because we had received some
CARES Act funding as well through the state. And so we had a lit-
tle bit of a buffer but a lot of my colleagues really suffered in that
time waiting for information to be clarified. It was different from
state to state and it was different actually from bank to bank. And
so I think streamlining the process would be really beneficial. And
especially if Congress were to be willing to release the $2 billion
additional funds that are left over from the SVOG back into cir-
culation to streamline a process so that we could have access to
that money, now that we have already gone through a process it
would be really, really helpful.
Ms. HOULAHAN. Thank you. And my next question is sort of a
follow-on to that to Mr. Carson Elrod. You had mentioned in your
testimony that the SVOG grants are a lifeline and that live enter-
tainment venue sector is a small fraction of the large and fragile
creative economy at large. And so I have heard similar sentiments
from businesses like my own, Science Explorers, which was ulti-
mately deemed ineligible for SVOG relief despite having had to
cancel 500 programs of their own at the start of the pandemic. How
can the SVOG program, assuming that we are able to shake loose
some more resources, increase or enhance the eligibility require-
ments to be able to be improving so that more businesses like that
business that I am mentioning could be able to receive the relief
that they need in these challenging times. Is there a way to expand
the definition or what would you recommend?
Mr. ELROD. I recommend doing exactly that. And thank you so
much for the question.
One of the earliest collaborators we had at Be An #Arts Hero
was Brian Blythe. And he works in John Kristiansen’s costume
shop in Manhattan. And he started the Costume Industry Coali-
tion, which represents over 60 highly skilled, artisanal workers,
34
and their whole job is to supply costumes to the entire ecosystem
of the creative economy. That is cruise lines, operas, rock and roll
shows, theater. I mean, they are a cornerstone of the creative econ-
omy nationally. And they had to close down completely at the be-
ginning of everything. All of their orders dried up. After the short
rounds of PPP, they had to lay everybody off. And they have been
essentially doing, you know, kind of Go Fund Me and charities.
And they were one of the industries that fell through the cracks be-
cause the SVOG grants did not really contemplate the entirety of
the creative economy. And it is really important that everybody
know that that intervention is a watershed moment in American
history between Congress and the creative economy. And there is
nobody in the creative economy that is not appreciative of what
#Save Our Stages and SVOG represents. What would be amazing
is to superfund it, expand it, and make sure that it really is a floor
for the entirety of the creative economy to get us through this mo-
ment and into the next one.
Ms. HOULAHAN. Thank you. I appreciate it.
My time has run out and I yield back, Madam Chair.
Ms. CHU. The gentlelady’s time has expired.
And now the gentleman from New York, Mr. Garbarino, is recog-
nized for 5 minutes.
Mr. GARBARINO. Thank you, Madam Chair. I appreciate the
opportunity to speak, and thank you to the Ranking Member for
having this hearing today.
Mr. Elrod, my question was similar to what Ms. Houlahan just
asked. By the way, loved you in Wedding Crashers.
I was going to ask you about the other business. I am from Long
Island, New York. You know, everybody goes to Broadway. Every-
body goes, you know, they come in and they go restaurants and not
so we had the Restaurant Revitalization Program that tried to help
some of these restaurants. But there are other parts of the creative
ecosystem. You just talked about a costume supplier. We had a lot
of people that were hurt in New York City when the film industry
and Broadway was shut down.
Can you go a little further with what you were just saying? You
talked about costumes. Who else do we need to expand it to if there
was another tranche of money coming, like who was left out?
Mr. ELROD. Oh, well, I think that is one of the things where I
would like to pivot towards like a GAO report or a congressional
commission so that you can hear from more than just four of us.
To like really get the Brian Blythes of the world in front of you to
like really talk about who was there and who was left out. I think
that would be the most important thing to do because I think one
of the problems is we do not even know what we do not know as
I was saying. The wave has come in and the damage is not yet
knowable. Also our NAICS codes do not appropriately include the
entirety of the creative economy. And so without understanding the
fullness of the creative economy, we also do not know who slipped
through the cracks.
Mr. GARBARINO. Yeah. So the dust has not completely settled
yet and you will not know probably at least until everything is up
and running again at full speed, what is missing? Okay. I under-
stand that.
35
I was in the state legislature for New York for 8 years. New York
had very generous, I thought, tax program to help bring moves and
TV shows to the state to get film credits. Congress here, we did
PPP. We did the Shuttered Venue Operators grant program. And
there are a couple people from a couple different states here. Can
you talk about what the states have done? Because we also sent
them a lot of money to help with more local issues and we have
Oregon, I think, and Missouri and New York. Have any of those
states done anything since the pandemic shut everything down to
help your industries in addition to what Congress has done?
Ms. Garrett?
Ms. GARRETT. Thank you very much for the question. Yes. So
very early in the pandemic, a group of arts organizations that were
much more highly resourced. Some of our smaller organizations got
together and lobbied for CARES Act funding. So we received as a
coalition of performing arts theaters, performing arts venues, the
ballet, the symphony, the opera. OSF at another theater called
Portland Center stage. We lobbied for $8 million in CARES Act
funding. And that was actually the thing that buoyed us and actu-
ally brought me to lobby with the Professional Nonprofit Theater
Coalition, lobby for access to SVOG funding. So once we knew we
could do it, we did it again. And we were really grateful for the
CARES Act funding. We talked to some of our other colleagues
across the country to try to help them figure out ways to lobby for
some of those resources. In these times, every little dime, every lit-
tle bit counts.
I also wanted to go back to your question to Carson. There are
a lot of theater workers who are not recognized as such—car-
penters, stitchers, ushers. A lot of those folks are only paid when
shows are running. And so they were not necessarily affected by in-
dustry-specific funds. And so being really clear about the full im-
pact across the industry, you know, our ushers work every single
time a show gets up ad they are just as important as the people
who stand on page. But there is no way to fund them except
through unemployment during the pandemic. Those are the things
that we have to think about.
Whereas, when we did do the streaming of the shows, we paid
everybody. Everybody was a part of this production. We paid every
single person. But we were not able to pay the ushers and the car-
penters did not receive any kind of funding for that.
Mr. GARBARINO. Mr. Elrod, you said you wanted to further an-
swer something?
Mr. Carson?
Mr. ELROD. Basically, exactly what Ms. Garrett said. I was
thinking of the Small Business Committee, so I think I was think-
ing of small businesses but I probably forgot to leave out the real
group of people that has been left out are the arts workers them-
selves. And that is why expanded unemployment is important.
That is why something like the Creative Economy Revitalization
Act which would give money directly to arts workers to apply their
trade and bring them into the public sphere and make festivals and
murals and public works of Art and the Arts education for All Act.
There are so many things that are in front of Congress right now
that would help so many of those people that have fallen through.
36
And I was embarrassed that it slipped my mind. Of course, the arts
workers themselves are the most important people that have kind
of been left out of the equation.
Ms. CHU. The gentleman’s time has expired.
And we have now reached to the end of our Member questions.
So I will now do my closing statement.
I want to thank our panel again for being here today. Your sto-
ries of preserving through the pandemic demonstrate the resilience
and fortitude of your industry. But it is very clear that you still
face many challenges today.
For our economy to fully recover, we must work together to over-
come the hardships and challenges facing the creative economy.
Unfortunately, we cannot reverse the damage overnight. It will
take sustained support and investment to bring these businesses
back to where they once were. We must work together to advance
policies that drive recovery in the near-term and pave the way for
future success. The American Creative Economy is one of our most
significant resources and we cannot afford to leave it behind.
With that, I would ask unanimous consent that Members have
5 legislative days to submit statements and supporting materials
for the record.
Without objection, so ordered.
And if there is no further business to come before the Committee,
we are adjourned. Thank you.
[Whereupon, at 12:03 p.m., the committee was adjourned.]
37
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Æ
File and source
- File
- CHRG-117hhrg46711.pdf
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- 50,372,160 bytes
- SHA-256
- 5c83375f0b0e5e30c4fb85f742d71d0b5dc211f5c7a487c040f0a4e2d01c603d
- Our copy
- CHRG-117hhrg46711.pdf
- Original
- www.govinfo.gov