CAA News Today

In early February, President George W. Bush released his fiscal year 2006 budget, which calls for level funding for both the National Endowment for the Arts (NEA) and the National Endowment for the Humanities (NEH).

In spite of the level funding, the budget includes a proposed redistribution of $6.5 million that would result in a 30 percent cut to the NEA Challenge America program, which distributes grants for arts education and improved access to the arts, especially in underserved communities. The president’s request for a 12 percent funding boost for the Office of Museum Services, however, is encouraging.

Unfortunately, the president’s budget also proposes to eliminate funding for the Department of Education’s Arts in Education programs. This action would put at risk programs such as arts collaborations with schools, professional development for teachers, and arts programs for youths in underserved communities. In the past, funding for these programs has been restored by the Senate and accepted by the House in conference committee.

The president’s budget is the first step in the appropriations process. While his proposal serves as framework for setting the nation’s budget, Congress has the power to set its own priorities and change these funding levels. You can make your voice heard by writing to your member of Congress and urging him or her to increase funding for arts and cultures and to restore funding for arts in education programs.

Once again, CAA will be a national cosponsor of Arts Advocacy Day and Humanities Advocacy Day in 2005-we encourage our members to participate in both events.

Arts Advocacy Day takes place March 14-15, 2005. Held in Washington, D.C., this event brings together a broad cross-section of America’s national cultural organizations to underscore the importance of developing strong public policies and appropriating increased public funding for the arts, the humanities, and arts education, as well as other programs within the federal government that have an impact on the visual and performing arts.

Humanities Advocacy Day takes place April 6-7, 2005. Also held in Washington, D.C., this event provides a unique opportunity for concerned citizens to communicate to Congress the vital importance of federal support for research and education in the humanities.

For more information on how to participate in Arts Advocacy Day and Humanities Advocacy Day, please contact Rebecca Cederholm, manager of governance and advocacy, at rcederholm@collegeart.org.

In early February, President George W. Bush’s fiscal year 2004 budget was released, which calls for increases to both the National Endowment for the Arts (NEA) and the National Endowment for the Humanities (NEH) over their 2003 amounts.

The NEH in particular has received the largest requested increase in several years’-Bush is asking for an additional $25 million for the endowment’s We the People initiative on American history, culture, and civics. The president has also requested a total of $117 million for the NEA in the coming year, which is a very modest increase in the endowment’s budget over the previous year, and will only account for mandated cost-of-living increases.

Congress will draft its own version of the president’s budget over the next several months, with the goal of having it finalized in October 2003.

In advance of the November 2004 United States presidential election, CAA would like to provide our members with information on where the Democratic and Republican candidates stand vis-a-vis federal funding for the arts and humanities.

George W. Bush, the Republican Party candidate for president, has not once requested a budget cut to either the National Endowment for the Arts (NEA) or the National Endowment for the Humanities (NEH) during his tenure as president. His first budget, in fiscal year (FY) 2002, called for level funding for both the NEA and NEH. His second budget (FY 2003) called for a modest cost-of-living increase for each of the endowments. His third budget (FY 2004) included a $26 million increase for the NEH’s budget and level funding for the NEA. The increase to the NEH’s budget in FY 2004 funded the We the People initiative, which is designed to encourage and strengthen the teaching, study, and understanding of American history, culture, and ideas. The president’s fourth budget (FY 2005) includes an $18 million increase for the NEA and a $27 million increase for the NEH. The requested increase for the NEA will fund a major new initiative, American Masterpieces: Three Centuries of Artistic Genius, which will combine arts presentations with education programming to provide Americans with access to their cultural and artistic legacy. The requested increase for the NEH will continue to fund the We the People initiative.

John F. Kerry, the Democratic Party candidate for president, opposed efforts to reduce funding to the NEA and the NEH in the mid-1990s. The Senate last voted on an amendment to cut funding for the NEA in 2000; as with similar proposals in previous years, Kerry voted against the amendment, which was rejected 27 to 73. According to the Kerry campaign, he has secured millions of dollars in federal funds for arts and cultural institutions in the Commonwealth of Massachusetts while serving in the U.S. Senate, which benefited the Museum of Fine Arts, Boston, the Peabody Essex Museum, the Isabella Stewart Gardner Museum, the New Bedford Whaling Museum, Old Sturbridge Village, the John Adams Collection at the Boston Public Library, and the Museum of Science, Boston.

CAA cosponsored this year’s Humanities Advocacy Day (March 15-16, 2004), hosted by the National Humanities Alliance, and Arts Advocacy Day (March 29-31, 2004), hosted by Americans for the Arts; both took place in Washington, D.C. These two events brought together a broad cross-section of national cultural organizations, academics, and grassroots arts leaders to promote the arts, arts education, and the humanities to Congress by requesting increased support for federal cultural agencies.

CAA member Phoebe Farris of Purdue University joined CAA Executive Director Susan Ball for Humanities Advocacy Day. They visited the offices of key members of the Senate and the House Interior Appropriations Subcommittee, which deals directly with funding for federal cultural agencies, in addition to meeting other legislators. Farris, Ball, and other humanities advocates from around the country called for Congress to support President George W. Bush’s budget request of $162 million for the NEH in fiscal year (FY) 2005. This funding will support, among other things, the We the People initiative to enhance understanding of American history and culture; education programs to strengthen teaching and learning in schools, colleges, and universities; preservation and access grants to save unique historical, cultural, and intellectual recourses; and challenge grants to strengthen the institutional base of the humanities.

At Arts Advocacy Day, newly elected CAA President Ellen K. Levy joined CAA representatives Marta Teegen and Rebecca Cederholm on Capitol Hill to promote several important arts policy matters. They urged Congress to support a budget of $170 million for the National Endowment for the Arts (NEA) in FY 2005, including President Bush’s request for $18 million to fund American Masterpieces, a major new initiative at the NEA that will combine arts presentations with education programming to provide Americans with access to their cultural and artistic legacy.

Levy and Cederholm visited the offices of Senator Hillary Clinton (D-NY), Representative Louise M. Slaughter (D-NY), and Representative Jerrold L. Nadler (D-NY), among several others, to urge them to continue supporting legislation that would allow artists to take a fair-market-value tax deduction for works of art donated to nonprofit institutions. Levy, Cederholm, and other arts advocates also called on Congress to require the U.S. Citizenship and Immigration Services (USCIS) to adopt immediate reforms that would ensure timely processing of visa petitions related to nonprofit arts groups. Many nonprofit organizations confront untenable delays and uncertainties while getting approval of visa petitions for international guest artists and scholars.

Teegen visited members of the House Ways and Means Committee to discuss the Emergency Protection for Iraqi Cultural Antiquities Act of 2003. As reported in the May issue of CAA News, the Senate passed legislation that gives the president the authority to impose restrictions that prevent the import of cultural materials into the U.S. that have been illegally removed from Iraq since August 1990. The House has yet to vote on this important legislation, which is part of a larger, broadly supported tariff bill.

It’s not too late! You can still sign up to participate in Humanities Advocacy Day and Art Advocacy Day!

Once again, the College Art Association will be a national co-sponsor of Humanities Advocacy Day and Arts Advocacy Day; we strongly encourage our members to participate. Both events help to support increased funding for the National Endowment for the Arts (NEA) and the National Endowment for the Humanities (NEH).

Participants in both Humanities Advocacy Day and Arts Advocacy Day will receive legislative and policy briefings and advocacy training before making group visits to members of Congress. CAA’s deputy director will be available to schedule all visits, and CAA staff members will accompany participants in Washington on congressional visits.

Humanities Advocacy Day will take place March 15-16, 2004. Held in Washington, D.C., this event provides a unique opportunity for concerned citizens to communicate to Congress the vital importance of federal support for research and education in the humanities.

Arts Advocacy Day will take place March 19-21, 2004. Also held in the nation’s capital, this event brings together a broad cross-section of America’s national cultural organizations to underscore the importance of developing strong public funding for the arts, humanities, and arts education, as well as other programs within the federal government that have an impact on the visual and performing arts.

For information on how to participate in Humanities Advocacy Day and Arts Advocacy please contact Marta Teegen at mteegen@collegeart.org.

Once again, CAA will be a national co-sponsor of Humanities Advocacy Day and Arts Advocacy Day; we encourage our members to participate in both events.

Humanities Advocacy Day will take place March 15-16, 2004. Held in Washington, D.C., this event provides a unique opportunity for concerned citizens to communicate to Congress the vital importance of federal support for research and education in the humanities.

Arts Advocacy Day will take place March 29-31, 2004. Also held in the nation’s capital, this event brings together a broad cross-section of America’s national cultural organizations to underscore the importance of developing strong public policies and appropriating increased public funding for the arts, humanities, and arts education, as well as other programs within the federal government that have an impact on the visual and performing arts.

For information on how to participate in Humanities Advocacy Day and Arts Advocacy Day, please contact Marta Teegen at mteegen@collegeart.org.

The House-Senate 2004 Interior Appropriations Conference Committee agreed on significant budget increases for the National Endowment for the Arts ($6.7 million) and the National Endowment for the Humanities ($11.2 million). The House and the Senate approved the conference report in the fall.

The $11.2 million increase for the NEH constitutes the largest dollar increase in thirteen years. Of the new funds, about $10 million is allocated to the NEH’s We the People initiative on American history and civics. Five million of the NEA’s increase is designated for Challenge America, an initiative that makes the arts more widely available in underserved communities across the country.

With state budgets suffering, most state arts agencies have experienced cuts in funding in fiscal year (FY) 2004. Of the forty-two state arts agencies reporting a budget decrease for the current fiscal year, ten had reductions of more than 15 percent. Unfortunately, the cuts come after an already bleak FY 2003. The National Assembly of State Arts Agencies reports that forty-two states diminished their arts budgets during the last fiscal year, with California and Massachusetts alone accounting for $44 million in losses. State arts funding plunged from $410 million two years ago to about $350 million in FY 2003. Despite attempts by some state legislators to dissolve completely state arts agencies as a cost-saving measure, currently fifty state and six jurisdictional government arts agencies are still operating. The various arts agencies help to support both established and emerging local artists and art organizations through grants and programs. They also help to bring art to rural and other underserved areas of the country, providing art education in schools and, in some cases, spurring economic development through the arts.

To make up for lost income, state governors are urging arts groups to find alternative funding sources, but corporate, foundation, and individual charitable giving is drying up as well. Total gifts by the nation’s top sixty donors fell from $12.7 billion in 2001 to $4.6 billion last year, according to a survey in the February 20, 2003, issue of The Chronicle of Philanthropy. The following is a more detailed look at the status of state arts agency budgets around the country:

Arizona: Governor Janet Napolitano (D) signed a FY 2004 budget that cuts state arts funding to $1.8 million, a reduction of 16 percent from 2003. In signing, she used her line-item veto for thirty-five sections; three of those affected funding for the Arizona Commission on the Arts.

California: With the FY 2004 state budget approved, the California Arts Council’s funding has been slashed by approximately 86 percent, from $18 million in 2002-3 to $1 million. (The National Endowment for the Arts [NEA] is expected to provide a matching $1 million, and another anticipated $1 million in revenues will come in from designer license plates, bringing the expected state arts budget to $3 million.) The council reports that this total represents a contribution of less than three cents per Californian per annum, with the national average being approximately one dollar. Based on this drastic budget reduction, all of its grant programs will be suspended and half of its staff positions will be eliminated.

Colorado: The state legislature, facing a $1 billion revenue shortfall in FY 2004, reduced the Colorado Council on the Arts’ budget from $1.04 million to $200,000. After this 80 percent cut, the council took another hit when Governor Bill Owens (R) ordered it to reduce overhead costs to $40,000 a year, which meant that it was forced to vacate its office space and reduce its staff from seven to one. For a while it looked as if the state’s action would cost the council an additional $614,000 in federal funding, because the NEA only distributes its grants through viably functioning state arts councils. Fortunately, the NEA backed off their original threat to withhold the money and awarded the council $613,600, allowing it to use some of the grant money for operations expenses. However, the NEA warned that they will keep close watch to make sure federal standards are being met and made clear that the funding was not meant to set a precedent.

Florida: State lawmakers allocated just under $5.9 million for the Division of Cultural Affairs’ grants programs in FY 2004, which received $32 million last year. A $200,279 grant from the NEA boosted the total budget to just over $6 million. The division will continue some of its grant programs, though on a much smaller scale, while temporarily suspending others. The state legislature also voted to eliminate the Corporations Trust Fund (derived from corporate filing fees in the state), which until May functioned as a unique funding source for the division’s operating costs. Now, the division will be funded from nonrecurring general revenue, thus increasing the level of competition for state dollars with other agencies each year.

Massachusetts: The Massachusetts Cultural Council has been level-funded at $7.3 million for FY 2004. Last year, it suffered a 62 percent cut to its state appropriation, resulting in the elimination of eight funding programs and severe reductions to its five remaining grant programs. About 1/4 of council staff were laid off.

Michigan: The state legislature passed a FY 2004 budget that includes a 47 percent cut to art and culture grants awarded by the Council for Arts and Cultural Affairs. The council also saw a 13 percent cut to their administrative budget. That said, it could have been significantly worse, as many in the state legislature had called for a total elimination of arts funding.

Minnesota: Overall arts funding was reduced by 32 percent for the next two years. This included a 60 percent cut to the state money that supports the Minnesota State Arts Board’s operations budget, a 29 percent cut to the Regional Arts Councils, and a 30 percent cut to the board’s grant programs. The Minnesota Humanities Commission fared even worse’it lost all of its state funding for the next two years.

Missouri: Earlier this year the state removed the Missouri Arts Council from general revenue funding, meaning the council will receive none of the $3.9 million it did last year. In just two years, state support has gone from $5.3 million to zero. Despite these cuts, the council has not yet been forced to reduce its operations drastically because it is partially funded by the Missouri Cultural Trust, an endowment for the arts funded by an income tax on nonresident athletes and entertainers. A total of $3,942,520 will be used for the council next year. Of that amount, $1.3 million comes from interest on the trust fund and $700,000 is federal funding from the NEA. Unfortunately, the trust money is also in danger, because the state legislature is using the athlete-and-entertainer tax revenue to fund other state programs in an attempt to close the state’s estimated $1 billion deficit.

New Jersey: Tens of thousands of New Jersey residents spoke out against a proposal by Governor James McGreevey (D) to eliminate the New Jersey State Council on the Arts by cutting its entire $18 million budget, to help close the state’s $5 billion deficit. State legislators listened. They passed a FY 2004 budget with $16 million appropriated to the council, $2.7 million to the New Jersey Historical Commission, and $500,000 for the New Jersey Cultural Trust. As part of the budget bill, a hotel/motel occupancy tax, which provides FY 2004 cultural revenue and dedicates funding in FY 2005 for these three organizations, was also passed.

Oregon: The Oregon Arts Commission lost all of its legislative funding in March as a result of emergency cuts in FY 2003, which applied to all state services other than health and safety. In August, Governor Ted Kulongoski (D) asked that the commission and the Oregon Cultural Trust merge their administrations as a cost-saving maneuver, a suggestion that was endorsed by both organizations as well as state legislators. As a result, the commission was kept alive with a budget of $1.2 million, which represents a 50 percent decrease. The trust will continue to be funded largely by the special tax credit set in place in 2001.

Tennessee: Despite statewide fiscal problems, Tennessee has been able to raise its level of arts funding for FY 2004. The Tennessee Arts Commission’s overall budget will increase to $5.25 million, nearly 17 percent from last year, because the commission’s main funding source is derived from nontaxpayer revenue, mainly the sale of specialty license plates.

Virginia: Due to the state budget crisis, the Virginia Commission for the Arts’ grant funds were slashed by 45 percent in FY 2004. The cut follows two budget reductions ordered in FY 2003 that had already taken away $1 million from the commission’s budget. In total, the accumulated cuts have decreased the commission’s annual budget from $4.9 million to about $2.7 million.

Although states across the country have made drastic reductions to a wide variety of programs and services in order to balance their budgets, cuts to state arts agencies are especially troubling, as they will result in the loss of matching funds from the federal cultural agencies and private donors alike. Furthermore, it is often very difficult to restore an agency’s budget to the funding level it had prior to the cuts, which means that any future budget increases to state arts agencies will most likely be based on these newly reduced figures. A good source of information on state arts funding can be found on the National Assembly of State Arts Agencies (NASAA) website at www.nasaa-arts.org.

At press time, the fiscal year 2004 budgets for the National Endowment for the Humanities (NEH) and the National Endowment for the Arts (NEA) had not been finalized. In mid-July the Congress-ional Arts Caucus introduced an amendment, sponsored by Representatives Louise Slaughter (D-NY), Chris Shays (R-CT), Norm Dicks (D-WA), and Jim Leach (R-IA), to increase funding for the NEH by an additional $5 million over the House Appropriations Committee’s mark of $137 million (for a total of $142 million). The amendment also sought to increase funding for the NEA by $10 million above the committee’s mark of $117 million (for a total of $127.5 million). Thirty-five Republicans joined Democrats in passing the Congressional Arts Caucus amendment a few days after it was introduced.