April 6, 2015

How the Tax Code Hurts Artists
April 1st editorial from the NY Times

March 3, 2015

Connecticut  Arts Alliance (CAA) Response to 2016-17 Governor’s Budget Proposal as of March  2, 2015

The CAA monitors trends in state funding in annual competitive grant programs, the availability of arts funding for operating support, and legislative designated funds for specific arts organizations.  The CAA also collectively and individually assists and advises the Department of Economic and Community Development (DECD)/Office of the Arts and participates in various arts-related committees.  We are familiar with the State budget process and recognize that the Governor’s Budget Proposal is also an invitation for legislative and public dialogue resulting in a final document that reflects the best interests of all parties in these difficult times.  While there is much to be alarmed about in this Budget Proposal, it is an opportunity for the arts sector and their constituents and partners, along with the legislative and executive branches, to more deeply deliberate and specifically allocate State resources for the final budget.

The Numbers
In this Governor’s administration, Arts, Culture, and Tourism funding is subsumed under the Department of Economic Development comprising about 53% of the DECD’s annual budget.  The Governor’s proposed budget cuts   Arts, Culture and Tourism by about 32% from the previous year, about $7.6 million dollars.  The Arts and Culture sectors in aggregate are being cut 40%.  The total DECD budget is proposed to decrease by 20%.  However, 88% of that decrease is on the backs of arts, cultural and tourism agencies and institutions.

In addition, the Governor’s DECD budget proposes to eliminate almost all legislatively-designated grants (Line Items), a total of $9.5 million in annual grants for major anchor institutions in every major cultural community throughout the State – except for the Amistad Vessel.   This does not even include the total elimination of the $2,049,752 budget for the CT Humanities Council, a critical partner and anchor for the arts, culture, tourism and education sectors.

The Governor’s budget proposes a reduction by about 16% off all arts funding, by eliminating $4.9million in legislatively-designated grants, and increasing the Arts Commission line item allocation by $3.9 million. The arts sector has on average been flat-funded since 2004.  The total funding for the Arts in the current year is 34% less than in FY2008.   In the Governor’s proposed budget the arts would receive 43% less than 2008.

The current arts funding of $6.7 million is .03% (3/100ths of 1%) of the entire State operating budget. The arts sector has operated extremely efficiently in very difficult times.  There reaches a point where once the financial oxygen becomes so depleted, long-term damage occurs, with multiplying negative effects on every aspect of the economic, educational and cultural quality of life of the state.

This budget proposes significant reductions to arts funding that will weaken the State’s cultural capacity at a time when it is most essential for near-term statewide economic recovery.   Decreasing and even flat funding will cause organizations to close, and jobs and programs to be eliminated at a time when cultural assets are critical tools to help protect the quality-of-life safety net, provide critical educational support for public schools, strengthen tourism in the face of increase out-of-state competition, and attract new innovative businesses and jobs.

The Office of the Arts
CAA as an organization and its member institutions have worked hard to support the staff, policy-making and program management of the Office of the Arts since it lost its status as a Commission of the Arts and became a smaller office when it was folded into DECD.   The arts sector recognizes the difficulties the Office of the Arts has faced coping with wholesale changes in policies and programs, with a $1.8 million arts budget.  In discussions with the Commissioner of DECD, it has been asserted that the Office of the Arts will not be seeing any additions beyond its currently skeletal staff.  In fact, the Office of the Arts will require even greater support and assistance from the CAA, the state’s regional arts councils, and the very institutions whose funds are once again being cut if not altogether eliminated in this proposed budget.  Wholesale change in the redistribution of dwindling appropriations at a time of fiscal austerity is most likely unwise and counterproductive.

To best support the social, cultural, educational and economic revitalization of Connecticut in 2016-17, the Board of CAA urges the General Assembly  to consider these following recommendations regarding the Biennial Budget:

1. Maintain the funding for the state-designated competitive grant programs in the Arts Commission to at least the current amount of $1.8 million.  Significant increases for Arts Commission granting are desired if sufficient COA staff and professional policy direction is provided.

2. Ensure that Arts Commission grant-making policies are consistent, fair and comprehensive and support and preserve existing cultural assets while allowing for new initiatives, with the necessary staff resources to best manage its grant-making and arts services.

3. Maintain support for legislatively designated annual funds for arts producing, presenting and service organizations by returning the $4.8 million in arts line items cut in the Governors’ Budget.  These arts line items maximize the efficiency, consistency, and impact of these grants in service to the public. Line items and Arts Commission grants are essential complements of the State funding policy.

4. Protect the Connecticut Arts Endowment Fund.  Allocate the previously authorized investments into the fund, and return to investing annually at least $500,000 a year. The last allocation to increase the fund was in 2003 in the amount of $1 million.

5.  Support state bonding to finance the capital improvement, restoration and modernization of cultural facilities.

6.  Expand on new joint arts-in-education initiatives and partnerships between the Department of Education and arts and cultural institutions to increase student achievement and educational excellence in the State’s public schools.

is the leading statewide nonprofit arts advocacy organization seeking to broaden public and private understanding of and support for Connecticut arts and cultural policies and funding.  CAA is firmly committed to the critical importance of arts and cultural resources in attracting and retaining jobs and business investment, building vibrant communities, and nurturing student creativity and innovation in our schools.

Our priorities are aligned with the National Governors’ Association, which states “arts and culture are important to state economies.  Arts and culture-related industries, also known as ‘creative industries,’ provide direct economic benefits to states and communities.  They create jobs, attract investments, generate tax revenues, and stimulate local economies through tourism and consumer purchases.”

The rich array of Connecticut arts and cultural organizations, together with the contribution of individual artists and the creative industries, contributes significantly to the vitality of communities large and small.  Over 22 million people per year experience Connecticut’s cultural attractions.  The arts and culture sector generates 3.8 billion in gross state product annually.  Like for-profit entities, these organizations maximize limited resources to sustain and grow operations.  But unlike their private counterparts, they are rooted in Connecticut’s communities and will not relocate to take advantage of more desirable business incentives or lower labor costs.  Connecticut’s arts and cultural organizations that employ 40,000 people – 18,314 full-time equivalent jobs – will contribute significantly to Connecticut’s revitalization long into the future

February 26, 2015

Governor’s Proposed Biennial Budget Seriously Impacts the Arts

Governor Malloy introduced his proposed FY16-17 Budget on February 18, 2015

His proposal includes many cuts to the arts and humanities

Department of Economic Development Reductions:

  • Reduce Funding for Various Arts/Cultural Line Items:  Reduces funding for various arts and cultural programs and reallocates the balance to the Arts Commission for competitive disbursement: FY 16 ($3,094,957) FY 17 ($3,094,957)
  • Eliminate Funding for Various Grants:  Eliminates funding for various grants including Women’s Business Center, Dream It. Do It., OpSail, Schooner, Stamford Parade, Main Street Initiatives, Neighborhood Music School, Nutmeg Games, Litchfield Jazz Festival, Connecticut Invention Convention and New Haven Symphony: FY 16 ($1,373,378) FY 17 ($1,373,378)
  • Annualize FY 2015 Rescissions: FY 16 ($704,579) FY 17 ($704,579)
  • Reduce Funding for Statewide Marketing: FY 16 ($2,000,000) FY 17 ($2,000,000)
  • Eliminate Funding for Tourism Districts: FY 16 ($1,513,924) FY 17 ($1,513,924)

DECD Reallocations:

  • Reallocate Funding for Various Arts/Cultural Accounts to Arts Commission: $5,707,939 (from $1,707,939 in FY15)

State Library

  • Eliminate Funding for Connecticut Humanities

Analysis courtesy of Connecticut Association of Non-profits. For their complete analysis, visit www.ctnonprofits.org


Appropriations Committee public hearing for the Department of Economic and Community Development (DECD) budget will be held on Monday, March 2nd as follows:

-DECD Budget Presentation: 10:30 – 11:15 AM (LOB, Room 2C)

-Public Budget Hearings (Room 2C) 6:30 PM (Room 2C)

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.


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