Scientific & Cultural Facilities District

For the past 6 consecutive years, the Denver Classical Guitar Society has been granted Scientific & Cultural Facilities District (SCFD) monies. Because of their help, we have been able to implement and maintain several items which further our mission statement to promote the Classical Guitar in our local community. Many people have no idea what the SCFD is all about, and because it is a citizen supported initiative which will be up for re-election in a few years, we felt it appropriate to give out the following facts and info on the SCFD.

In 1988, greater Denver metropolitan-area voters created the SCFD to provide a consistent source of unrestricted funding to scientific and cultural organizations. Since then, the SCFD has funded more than 300 organizations via the 0.1 percent retail sales and use tax (a penny on every $10).

The SCFD is a great value. In 2000, the average per capita SCFD tax collection was $14.58. The SCFD facilitates the annual distribution of approximately $40 million in tax funds to organizations that “provide for the enlightenment and entertainment of the public through the production, preservation, exhibition, advancement or preservation of art, music, theater, dance, zoology, botany, natural history or cultural history.”

A 11-member board of directors oversees the distributions in accordance with the Colorado Revised Statutes. Seven board members are appointed by county commissioners (in Denver, the Denver City Council) and four members are appointed by the governor of Colorado.

By statute, SCFD recipients are currently divided into three “tiers” with each qualifying for funding in different ways:

• Tier 1
  This Tier consists of 5 institutions: Denver Museum of Nature and Science, Denver Zoo, Denver Art Museum, The Denver Center for the Performing Arts, and Denver Botanic Gardens. According to statute these 5 institutions share 65.5% of the annual distribution up to and including $38 million, and 64% exceeding $38 million. Tier I organizations must annually report usage of funds to the SCFD board.
• Tier II
  Organizations qualify for Tier II based on an annual operating income threshold, which is adjusted annually based on the Consumer Price Index. In 2011 there were 25 Tier II organizations. Tier II’s share of the SCFD distribution is 21% up to and including $38 million, and 22% exceeding $38 million. Funding at Tier II is determined based on an equal weighting of qualifying operating income and paid attendance. Tier II organizations must annually qualify and report to the SCFD board.
• Tier III
  Tier III receives 13.5% of the SCFD distribution up to and including $38 million, and 14% exceeding $38 million. Approximately 275 organizations are funded annually. County cultural councils allocate funding annually through an open grant process. The amount of funds available for distribution in each county is determined by the percentage of total sales and use tax collected in the specific county.

Citizens make it possible! In sum, the SCFD helps make Colorado a great place to live, work and play. It is the largest citizen-supported cultural initiative in the nation. The district is a jewel that not only supports a better quality of life for citizens, it is an economic asset that creates jobs, attracts new business and diversifies the economy. It is a remarkable form of self-investment that pays incredible dividends for Colorado.