December 15, 2014

Update on Federal Arts Funding from Americans for the Arts
No Cuts to the NEA in Omnibus Bill

With only two hours to spare before the federal government was scheduled to shutdown at midnight last night, the House of Representatives was able to narrowly pass the so-called “Cromnibus” (a hybrid Continuing Resolution and Omnibus bill) by a vote of 219-206. Now in the Senate’s hands, the enormous $1.1 trillion catch-all bill funds the federal government through the balance of the fiscal year to September 30, 2015, with the exception of Homeland Security which is funded only through February of next year due to political gamesmanship on immigration issues.

Thanks to effective advocacy efforts, arts funding will be kept level and stable. The National Endowment for the Arts and the National Endowment for the Humanities will each receive $146 million. The Office of Museum Services will remain at $30 million and the Arts in Education program within the U.S. Department of Education will also stay at $25 million, despite threats of being zeroed-out.  Similarly, the Corporation for Public Broadcasting (PBS, NPR) will be level-funded at $445 million.

Additionally, the House of Representatives was unable to pass a permanent extension of three charitable giving provisions, including the IRA roll-over to charities.

For more info, visit www.artsactionfund.org

November 21, 2014

Budget Update from Connecticut Association of Nonprofits, November 14, 2014

Governor Malloy Orders Emergency Budget Cuts, Restricts State Hiring to Combat SFY15 Deficit

In response to the looming $60 million revenue shortfall and $80 million budget ‘deficiencies’ or cost over-runs among stateagencies, Governor Malloy ordered emergency spending cuts
effective immediately. A memo from OPM reinforced the urgency of the matter in regard to state employee overtime work, new [state employee] hiring, and potential rescissions, or across-the-board spending cuts.

The administration has also put state contracting on hold, barring agencies from entering into new contracts and from extending or adding funds to existing contracts. In addition to executive branch agencies, OPM is requesting that higher education units, constitutional offices, and judicial and legislative branch agencies implement similar measures.

Last month, Secretary Barnes projected that the state would end the year with a $300,000 surplus. The figure was certified by state Comptroller Kevin Lembo on Nov. 1, but that was before the November consensus revenue estimates were released showing that federal grants, the gas tax, and gambling revenues were lagging behind the state’s projections.

As you may recall, Governor Malloy issued similar cuts two years ago this month to offset an even larger budget deficit. As a reminder, existing law gives the Governor statutory authority to rescind [cut] up to 5% of any line item and 3% of any fund without seeking legislative changes to the state budget. Note:Municipal aid, debt service, and state employee salaries and benefits are excluded from rescissions.

We will continue to monitor the Administration’s response and will provide the latest updates.

July 17, 2014

Congressional Updates from Americans for the Arts

July 15 - The House Subcommittee on the Interior had proposed an $8 million cut each from the FY 2015 budgets of the National Endowment of the Arts and the National Endowment for the Humanities.

We’re really pleased to report that when this bill came before the Full Appropriations Committee today, the Interior Subcommittee Chairman Ken Calvert (R-CA) announced that he had made some “manager’s amendments” to the bill. He restored the cuts to the two federal cultural agencies and now the bill moves to the House floor with a $146 million recommendation for the NEA and NEH each.

July 17 – One more piece of good legislative news coming out of Washington, DC this week. The House of Representatives passed a bill 277-130 to make permanent a series of charitable tax provisions. Specifically, two of these provisions will help nonprofit arts organizations raise private donations while offering individual taxpayers enhanced tax deductions. It’s a win-win situation. If these provisions also get passed by the Senate and signed into law by the President, they would do the following:

· Extend through April 15 the deadline for claiming charitable donations on the previous year’s tax filing.

· Encourage taxpayers 70.5 years of age or older to make a charitable donation by designating a charity to receive their automatic IRA distributions directly, instead of themselves, which would otherwise have been subject to income tax.

 

May 9, 2014

Americans for the Arts’ Creative Industries reports are now available online. Pulling data from Dun & Bradstreet, the Creative Industries: Business & Employment in the Arts reports offer a research-based approach to understanding the scope and importance of the arts to the nation’s economy. Creative Industries is the first national study that encompasses both the nonprofit and for-profit arts industries. Due to licensing agreements, you will be asked to log in and agree to the user term agreements before viewing the reports.

May 8, 2014

State Budget Update May 2014

Late last week, the legislature and the Governor agreed on a final budget for FY15.    The Committee makes no changes to the Arts Commission (arts grants)  allocation of $ 1,797,830.  A new $525,000 line item is for a consortium of seven art museums (Aldrich Contemporary Art Museum, Bruce Museum, Florence Griswold Museum, Hill-Stead Museum, Lyman Allyn Art Museum, Mattatuck Museum, and New Britain Museum of American Art).  Litchfield Jazz Festival also received a new line item allocation of $50,000.    The complete budget can be found here, with the Department of Economic and Community Development budget begining on page 11.

February 24, 2014

New Chair Nominated for the NEA

On Feburary 13, 2014 President Obama named his choice to lead the National Endowment for the Arts, which has been without a chairman for more than a year.

The president announced his intent to nominate Jane Chu, currently the president CEO of the Kauffman Center for the Performing Arts in Kansas City who also boasts a strong business background. In a statement, President Obama said, “Jane’s lifelong passion for the arts and her background in philanthropy have made her a powerful advocate for artists and arts education in Kansas City. She knows firsthand how art can open minds, transform lives and revitalize communities, and believes deeply in the importance of the arts to our national culture. I’m proud to nominate her as Chairman of the National Endowment for the Arts.”

The NEA has been without a chairman since Rocco Landesman left in November 2012. Last year, the agency was under attack by House appropriators as they sought to cut funding by 49 percent – an effort that was unsuccessful. Dr. Chu’s nomination will now be sent to the U.S. Senate Committee on Health, Education, Labor and Pensions for consideration, and then if she is approved by the committee, the full U.S. Senate for a confirmation vote.

October 25, 2013

The Arts Education Partnership compiled this chart to compare state arts education policies.

September 27, 2013

AMERICANS FOR THE ARTS RELEASES  2013 NATIONAL ARTS INDEX

Americans for the Arts 2013 Index report delivers a 2011 score of the health and vitality of the arts in the U.S. The arts have effectively leveled off in 2011 as the economy slowly and unevenly recovers from the Great Recession.

Read more about the impact of the recession and the report here: http://www.artsindexusa.org/national-arts-index

July 24, 2013

CONNECTICUT STATE BUDGET
FINAL FY14-FY15

The Connecticut State Legislature approved a biennial budget on June 2, 2013.

The Appropriations Committee established an Arts Commission and transfers funding from the Culture, Tourism and Arts grant account in the amount of $1,797,830 for both FY 14 & FY 15. This represents a reduction from $2 million from FY 13.

The Commission shall consist of one member appointed by the Governor, six members appointed by Legislative leaders, and two appointed by the Chairs of the Appropriations Committee. The Commission’s task will be reviewing and awarding competitive grants to eligible cultural, tourism, and arts organization

Other Arts and Culture Highlights:

1. Creation of the Connecticut Arts Council: Creates a 13-member council within DECD and authorizes it to establish a foundation to raise funds and receive gifts from private sources to encourage participation in, and promotion, development, acceptance, and appreciation of, artistic and cultural activities (§ 245). Allows the foundation to disburse funds and execute contracts to foster and promote the arts (§ 245). Allows the foundation to apply for and receive grants, so long as it cooperates with and avoids directly competing with other Connecticut arts organizations when doing so (§ 245).

Beginning January 15, 2014, requires the council to annually notify DECD of the total amount of matching grants arts organizations are eligible to receive from the Connecticut Arts Endowment Fund (§ 248).

2. Statewide Marketing: Funding is increased for Statewide Marketing (i.e., ‘Still Revolutionary’ Campaign) in the amount of $525,000 in each year, from the original estimated amount. Total funding: $12,000,000 each year, for FY13 & FY14.

3. Maintain Funding for Tourism Districts: Funding is maintained for the three Tourism Districts in the amount of $1,593,600 each year, for FY14 & FY15.

4. Film Production Tax Credit Moratorium: Establishes a two year moratorium on film production tax credits for FYs 14 and 15 for motion pictures that have not been designated as state certified productions prior to July 1, 2013 but there is an exception for a motion picture that conducts at least 25% of its principal photography days in a Connecticut facility that (1) receives at least $25 million in private investment and (2) opens for business on or after July 1, 2013.

 

June 6, 2013

Federal Issues: The Charitable Deduction

The House Ways and Means Committee has had 11 Working groups that have been meeting on various topics and putting together policy options looking ahead to tax reform efforts. We are continuing to monitor a possible threat to the charitable deduction.

The Alliance for Charitable Reform, has circulated a letter supporting the charitable deduction, which has been signed by more than 229 economists. The letter states that the charitable deduction is one of the least “selfish” deductions (as compared to others like the mortgage deduction). The letter ran in Politico in late April.

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