state arts action network
Meeting Minutes and State of the State Reports
June 12, 2005 SAAN State of the State Report
Hilton Austin
500 East 4th Street, Room 410
Austin, TX 78701
Sunday, June 12, 2005
8:00 a.m.–9:30 a.m.
Al Maitland, California Assembly of Local Arts Agencies
Since 1994, California has had an arts license plate. But, because of a law in California, a large percentage of the arts (and other special interest) plate’s revenues go to the environment. Since 1994, about $7 million has gone to the environment and $6 million to the arts. This has created a consumer lack of confidence in arts license plate. There is a bill moving through the legislature which would exempt the arts license plates from contributing to the environmental fund. If the bill passes, the California Arts Council will receive an additional $1 million on top of the $1.1 million it receives from the legislature, the $1.1 million from the NEA, and the $800,000 it currently receives from the arts license plates. Capwiz has become the mechanism to get the bill passed. The full Senate just passed this bill 34–1. The California Arts Council has a new director, Mural Johnson, who is the former chair of the Sacramento City Council, and who is very legislatively savvy and consequently well connected with the political network in California.
The Capwiz partnerships and collaborations have grown to include the California Cultural and Heritage Tourism Council (members include the California Preservation Foundation, California State Parks, Visitors and Conference Bureaus-Economic Development corporations and tourism marketers-statewide, the Sierra Business Council, which oversees the 23 counties of the Sierra Nevadas and the sierra conservancy and the Heritage Foundations.) The collaboration also includes the California Alliance for Arts Education, the California Association of Museums and 15 to 18 infrastructure arts organizations.
Allen Hoffman, Connecticut Committee on Culture & Tourism
One year ago, his agency was combined with film, humanities, etc. Since that time, his organization has been in the beginning stages of where we are going and who is getting money. Now, they are through the implementing stage, but face leadership issues. They did have a small increase in arts funding. Tourism funding has been taken care of. They could not have done this without the recently created grant program. They are refurbishing their state capital building, which will cost $550,000.
Jan Selman, Arts Leadership League of Georgia
It was a busy and eventful year in Georgia. The Arts Leadership League of Georgia (ALL–GA) is a new, emerging statewide advocacy group, formed in April of 2004. Just weeks after the first board meeting, they were contacted by the Telfair Museum to advocate for an Ad Valorem Tax issue. The Telfair—the oldest museum in Georgia who has never paid property tax—had just been contacted by the tax assessors office and advised that they did not meet the “ charitable” designation for the state revenue code. The assessors then reassessed the property from $150,000 to $ 3,000,000 and assessed a $300,000 tax bill. When the museum could not pay, they put a lien on the building. A subsequent discussion with the assessors reveled that the Telfair Museum was the first, but they intended to reassess all nonprofits. This had serious implications statewide. A series of brief conversations with trusted elected officials across the state reveled this issue was being closely watched, in other words, the Telfair was the first domino. ALL–GA’s research showed this is a national issue and that the results are mixed. ALL–GA convened an ad hoc committee with other statewide organizations whose constituents would be adversely affected. This strategic alliance wrote a briefing paper for the governor’s office and initiated legislation to codify language from an earlier Georgia Supreme Court ruling that stated museums did qualify as exempt. However, it was then learned that to add the language to the code would require a statewide referendum in 2006—the same year of governor’s election. ALL–GA, the committee, and other trusted advisors rejected this course of action. Finally, the state assessor’s office stated if the “state” would send a letter stating that museums met the charitable code, they would drop the issue. A letter was sent by Bart Graham, commissioner, Georgia Department of Revenue, and the issue is, at present, dead.
If you would like to download the PDF Property Tax Toolkit—a national perspective—it can be found on the National Council of Nonprofit Associations Web page, under Resources→Publications→Toolkits.
Terry Tomasello, Georgia Assembly of Community Arts Agencies
The Georgia Assembly of Community Arts Agencies (GACAA), the newest member of the SAAN, is an all-volunteer agency. Tomasello is their new president. Their mission is to increase the networking capabilities of the field. As Georgia has many small, rural communities, effective networking is very important. They are especially proud of their website, which is very extensive and provides members with a one-stop shop for information. Their annual conference was in May, with Bob Lynch and Jay Dick attending. Tomasello complimented Jan Selman, and indicated her desire to work more closely with ALL Georgia. Their main program this year is to expand their membership.
Alene Valkanas, Illinois Arts Alliance
They had their first major increase to their state arts budget in many years. The budget went from $19.6 million to $20.6 million—a $1 million increase. They attribute the increase in great part to Capwiz. They didn’t do an arts day at the capital this year, but they hosted 14 district meetings in key areas—chairs and members of the Senate and House Appropriation Committees—which were extremely effective. Concerning arts education, they are partnered with the Chicago Community Trust, have hired a strategist, and are now doing a baseline study on what is being taught in 800 school districts in Illinois. This year, as a result of heightened advocacy, the governor and the General Assembly approved $2 million for arts education, the first major monies for arts education in the budget of the State Board of Education. Their fundraiser raised over $200,000. For the second year in a row, they used the theme “Shout”—the importance of the arts. They have been doing leadership succession and development research and programs and have published three new books: a compensation survey of executives in small to midsize arts organizations; Working Easier, an organizational management tool; and Filling the Gap, a handbook for interim executive directors of arts organizations. These and the other books assisting organizations and their leaders in succession planning are available for purchase at their website, www.artsalliance.org.
Sally Gaskill, Arts Alliance Indiana, Inc.
This has been an exciting year for them legislatively. One of the biggest issues is that the legislature finally approved daylight savings time. Indiana had been one of the last holdouts, and this will make it much easier for Sally to not get confused on the time of SAAN conference calls. They elected their first Republican governor in many years. Their legislature is also controlled by the Republican Party. On the governor’s first day in office, he nullified the state employee’s collective bargaining agreement. The legislature passed the state’s budget, and the arts agency went unnoticed and received flat funding. Their Annual Arts Advocacy Day was reasonably well received. But, there were major cuts to the formula for local education and thus, arts education suffered. They are trying to create a regional arts captains program, modeled after New York and the SAAN. One of their projects over the next few months is to better use and distribute the Creative Industries report that Randy Cohen delivered at their Arts Advocacy Day breakfast. Several of her chairs wanted local Creative Industries data, and they arranged for the $800 to purchase it. She is happy about having that information. They are now working at getting a constituent in each legislative district to personally deliver the information to each state senator and representative.
Ellen Morgan, Association of Community Arts Agencies of Kansas
Their State Arts Agency funding remains level. But, the problem exists with the fact that decreased NEA funding will affect next year’s funding levels. They have a special legislative session next week which is in response to the Kansas Supreme Court issuing a ruling that the state has not provided enough money for schools. The legislature increased educational spending by $134 million this year, but the court states that it is not enough, but that it needs to be doubled. The economy is doing better, but there is a question if revenue will come in at a higher rate, or if there needs to be a tax increase. At the end of the budget debate, a house member inserted a phrase stating: any advertising that is done with state dollars must say it was paid for by state taxpayers dollars. State agencies are now including this statement in job ads, etc. They have put together a serious of workshops with Kansas Small Business Development Centers, the Kansas Department of Commerce, and others on artist development. They have had a great turnout across the state. They are also doing a programs called the Sunflower Arts Institute, which is an intense workshop limited to staff members of recipients of state arts agency grants. There will be no more that 40 participants across the state.
Trish Salerno, Arts Kentucky
This was not a budget year in the Kentucky legislature. But, Arts Kentucky is working with the Kentucky Arts Council to lay the groundwork to get an increase for next year. The biggest legislative issue this year concerned open meeting laws. Language was inserted (at the last minute) into the budget bill last year that required all arts organizations that receive money from the Kentucky Arts Council or a local government agency to have to operate under open meeting laws. Arts Kentucky was able to get a compromise that would exempt organizations that receive $25,000 and under. Arts Kentucky had a great arts advocacy day, their first in many years. It was held in conjunction with the Governor’s Awards in the Arts. Jay Dick attended and spoke on the Creative Industries Report and legislative advocacy. They were pleased that there were a lot of new people that attended the event. The Kentucky Arts Council is sponsoring a major statewide arts education survey directed toward each school district. Response so far has been excellent. The Jefferson County Public Schools (largest school system in the state) is consolidating their arts programs, which will mean that in many schools there will be only one teacher responsible for all arts subjects. The Arts Council is working with the University of Kentucky on an economic impact study, in which the craft industry will play a big part, given that the craft industry is very large in Kentucky. Louisville just finished a Cultural Blueprint which was tough to get done, but there is hope that some good things will come out of it eventually.
Pamela G. Holt, Maryland Citizens for the Arts
Maryland Citizens for the Arts (MCA) led the charge and coordinated the passage of three arts-related bills before the Maryland General Assembly. The Maryland State Arts Council’s (MSAC) budget saw an increase for the first time in three years. Legislators approved $11,280,137 for the fiscal year beginning July 1, 2005—a 2.6 percent increase. Governor Ehrlich adhered to Maryland’s Arts Stabilization Law (HB 594), including a budget amount that met the mandated a percentage increase. Under HB 594, the budget submitted by a governor must include an appropriation for the Maryland State Arts Council at least equal to the previous year's level enacted by the General Assembly. Further, when state revenue estimates rise, his or her appropriation for the arts should rise by the same percentage. This law is one of the most important pieces of arts legislation in the country.
A historic bill was established to fund public art. Maryland’s new law supports the commissioning of works of art in conjunction with new state facilities and, on a discretionary basis, at other public facilities in the state. The Secretary of Maryland’s Department of Business and Economic Development will appoint a Commission on Public Art to determine funding of individual projects under the administration of the MSAC. Although funding is not mandated, it is the expressed intent of the General Assembly that the governor include annual funding of up to $1 million in the budget beginning with FY 2007.
Expanding the range of artists who are eligible for tax benefits, the Maryland General Assembly adopted amendments that provide greater incentives for attracting artists to Arts and Entertainment Districts (A&E) statewide. Now, those who have a studio or conduct business in an A&E District may live elsewhere in that county or Baltimore City. The artistic work must be produced and sold in the district. Secondly, property tax credits may extend to include new construction and to renovation projects. MCA stressed the importance of greater flexibility and a wider range of incentives to help the districts evolve.
Sheila Smith, Minnesota Citizens for the Arts
Their state appropriations legislation is stuck in special session that will go on forever. They convinced the governor to propose stable funding for the arts this year. The governor proposes a 40 percent decrease last year. To receive level funding is a victory, as they still have a state budget deficit. The Minnesota House has two budgets, one with gambling dollars, and one without. There was one state representative who targeted nonprofits by proposing several over-reaching bills, each of which was defeated. Three of those bills were: (1) a bill that would have capped the amount of a grant from a state appropriation used for "administration" to 10 percent; (2) a bill that mandated that, as a condition of receiving an appropriation or grant from the state, no employee of a nonprofit can receive a salary that exceeds the governor; and (3) a bill that required that nonprofits whose employees receive salaries that exceed the governor's must include a list of the total compensation of the three highest-paid employees on any written solicitations seeking contributions, as a condition of receiving a grant or appropriation from the state. Minnesota Citizens for the Arts played an important role in defeating each of these bills.
Their big project is an economic impact study of the state, with 11 regional studies too. The regional studies then provide local numbers for every legislator. They are working with Ben Davidson at Americans for the Arts.
Carolyn Bye, Metropolitan Regional Arts Council (Minnesota)
Carolyn began by complimenting Minnesota Citizens for the Arts (MCA). MCA is so successful because they are bipartisan. Carolyn noted the great achievement in protecting the Arts Council’s budget from cuts in a very tight financial year, and Sheila Smith, the executive director of MCA is too modest to state that they were the major force in protecting the arts budget. Continuing her report, the Minnesota Alliance for Arts Education died/ closed this year, and Carolyn does not know how the need is going to be met. Their major project this year is a statewide economic impact study.
Nola Ruth, Missouri Association of Community Arts Agencies
They have elected a Republican governor for the first time in 40 years and this is the first time in memory that they have a Republican controlled legislature. Because of this, everything is in flux. The governor believes that the arts should get their appropriation of $10 million per year. But, the bad news is the governor only recommended $3.6 million, and the legislature only appropriated $700,000. Because of the new governor, a state government review commission has been put in place which has resulted in lots of changes. Luckily, the vice chair of commission is supportive of arts. In other news, the Missouri Arts Council has been without an executive director for six months and has no appointed council.
John Barsness, Montana Arts
In 1997, the National Trust for Historic Preservation listed a site in Montana on its “10 most endangered” properties list, and in the process took $3.9 million—half of the state's Cultural Trust's resources—and did not care where the bodies fell. It took eight years to reclaim the money. Now, the Historic Trust is back with another listing, but they will be ready for them. Last year, John delivered a paper at a "Creative Clusters" conference in England on rural economic development. He is going to Australia in August to give a follow-up report.
Judy Weiner, Alliance for New York State Arts Organizations
The Alliance had a fabulous Arts Advocacy Day, with performers and exhibitors and almost 600 members meeting with their legislators. But it was marred by disappointment. Anticipating a $2 million increase, they were assured by legislators and the leadership that they would get it. Literally, at the end of Arts Advocacy Day, the additional funding was pulled and the state arts council budget remained flat at $37.4 million. Over the previous three years, the arts had sustained a cumulative 25 percent cut. But, they do have a lot of earmarked legislation from legislators for projects in their home districts. Their legislative initiative, the Cultural Development Areas (CDA) legislation, was resubmitted and moved from conference committees to budget committees in both houses. They are hoping to see it pass this year, but that is not assured. A major new program development project is a statewide Cultural Needs Assessment. An online survey was sent to more than 3,000 organizations and is being followed up with seven regional forums to see how regions compare and contrast with the statewide survey data. In October, the Alliance is convening a “think tank” gathering, “fast-forward,” to consider the paradigm shifts in both the external and internal environments of cultural organizations and to contemplate creative ways of doing business as they consider their future.
Betty Plumb, South Carolina Arts Alliance
They had a great year, after four years of budget cuts; they have new monies to work with as they had a surplus of funds in the state’s budget for the legislature to spend. This year, the South Carolina Arts Commission will receive an increase of $421,864 to its base budget. This increase comes over the governor’s veto of $125,500 and after a series of cuts totaling 44 percent over the last four years. All new monies go to the state agencies' granting programs. They had a very successful SC Arts Advocacy Day, with 65 legislators in attendance at their Legislative Appreciation Luncheon, increased membership in their Legislative Arts Caucus, and the introduction of legislation for an Arts Awareness license plate by Arts Caucus co-chairs at the luncheon, which has since been signed in to law. The license tag will be designed by an artist, with the first 200 plates auctioned off as a fundraiser for the state agency in 2006. Their legislature also passed arts-friendly education legislation within the SC Education & Economic Development Act, a bill that increases school emphasis on career guidance and counseling and now contains language that makes the arts part of a well-rounded education. A second piece of legislation that address physical education and nutritional standards in elementary school, now provides for dance instruction to help fulfill a portion of the physical education requirement, as well as wording that states that the additional requirements for PE should not come at the expense of arts instructional time. They experienced no funding cuts within the State Department of Education arts grants/programs. They had a change in their legislative Arts Caucus when the House co-chair, who was also chair of the Ways & Means Committee, became the new Speaker of the House. (The former House Speaker is now the Ambassador to Canada.)
Tom Turk, Tennesseans for the Arts
So far, this has been an excellent legislative year. It started last fall when they hosted 12 legislative receptions around the state. This gave their supporters the ability to thank the legislators and help raise awareness for the arts. This has helped them establish an arts caucus, which has 35 members including the Speaker of the House and lieutenant governor. They hired a new lobbyist this year, who has proved to be very effective. The state agency which is the source of grant funds has a dedicated funding stream originating from the state’s special and custom license plates. They will receive at least $500,000 more in their grants budget this year, and $5.5 million overall. The operational support for state agency will remain flat. They have begun planning on the next set of regional legislative receptions.
Gretchen Johnston, Washington State Arts Alliance
Their governor’s race finally over after multiple recounts and court challenges. The arts did okay in this session and their Arts Advocacy Day went well. After two years, they were back in their state capital that had been closed for remodeling. Because of this, lots of legislators were able to join them under the capital dome for lunch. The budget is still tight, but the state economy is finally starting to rebound. There were no cuts to the arts commission budget, and it did get a slight administrative increase while many agencies suffered cuts. Through several years of advocacy work, the legislators know about the arts groups and respect them—which has helped. The push has begun to extend a revenue stream beyond 2020 for arts and heritage that is provided by the motel/hotel tax in King County (where Seattle is located.) While cultural groups had planned to work for this extension in the next few years, the Sonics basketball team decided to try to get funds from this source to renovate their arena. The county cultural agency made the decision to work with the Sonics and not try to run a separate bill for the extension. There appeared to be much more legislative support for the arts on this issue than for the Sonics, and the bill died. The effort will continue. Over the years Washington State Arts Alliance has worked to keep the arts as an essential learning requirement in state education reform law, and this was the first year that there were no attempts to strip arts education. They had a fabulous successful conference this year. Gretchen introduced Kim Thomas, her new Program Manager. They now have a new issue: the Washington State Department of Employment Security is focusing on small theaters, stating that every actor and set designer, if paid anything, must be treated as a regular employee. This might prove problematic.
Anne Katz, Arts Wisconsin
They experienced a name change as of January 1, 2005, which has been opening a lot of doors as the organization pushes the importance of the creative economy to Wisconsin. They are working statewide with economic and community development efforts. Lots of regional and local community cultural development has occurred. This bubbles up from the grassroots and is particularly important to the rural areas. They had a successful Arts Congress in October, which involved the arts and business worlds together. They are also working to revitalize arts education in Wisconsin. Their governor proposed a budget for the WI Arts Board that would restore the 10 percent cut from the last budget, and did not take out 10 percent across-the-board cuts, as happened with other state programs. Unfortunately, the Joint Finance Committee cut the budget by 5 percent. They are still in the position of trying to figure out their strategy. The governor has the opportunity to veto a lot of stuff, and they are hoping he will veto that language. The lieutenant governor is the chair of the arts board, so the veto might happen. They are working with the Department of Commerce and Tourism on the creative economy to build support with entrepreneurialism and small business developed for artist in small business. They are getting a variety of state agencies to support these initiatives.
