Annual Report on State Arts Funding & Legislation, FY 2003

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2002 Legislative Session, January 9, 2002- April 8, 2002

Table of Contents

Maryland State Arts Council
Table 1: MSAC Appropriations, Fiscal Years 2002 to 2006

Arts Education
Table 2: Arts Education-MSDE Appropriations, Fiscal Years 2002 to 2003

Arts-Related Capital Funding
Table 3: Arts-Related Capital Investments, Fiscal Year 2003

Maryland State Arts Council (MSAC)

The fiscal 2003 allowance for the MSAC submitted by the Governor was $13,762,275, an increase of $49,670 or 03.6% over the fiscal 2002 general fund allowance, reflecting greatly reduced revenue estimates of the State. The General Assembly voted to retain 88.4% of the proposed budget, leaving the MSAC with a total general fund appropriation of $12,158,557. 95% of this amount or $11.6 million is for grants to arts organizations (including line items mandated by the General Assembly), community arts development, artists in education, and individual artists.

View MCA's Testimony on behalf of the MSAC FY 2003 Budget.

Table 1: MSAC Appropriations, Fiscal Years 2002 to 2004 *

BUDGET SUMMARY Maryland State Arts Council FY 2002 Appropriation FY 2003 Appropriation FY02 to FY03 Percent Change FY 2004 Appropriation FY03 to FY04 Percent Change
State (General)
$ 13,710,405 $ 12,158,557 -11.3% $10,992,298 -9.60%
Other (Special, Federal) 591,876 658,536 11.3% 690,555 4.9%
Transfer of Agency Funds (156,292) (46,149)      
Total 14,145,989 12,770,944 -9.7% 11,682,583 -8.50%
Total Granted Funds
13,088,354 11,608,205 -11.3 10,371,521 -10.7
ARTS ORGANIZATIONS 10,458,961 8,933,667 -14.6 7,978,398 -10.7
Total Line Items 700,000 700,000 0.0% 350,000 -50.0%
American Visionary Art Museum 140,000 140,000   140,000  
Baltimore Symphony Orchestra (Touring Funds) 250,000 250,000      
National Chamber Orchestra 200,000 200,000   200,000  
Olney Theatre Center 55,000 55,000   33,000  
Round House 55,000 55,000   33,000  
COMMUNITY ARTS DEVELOPMENT 1,892,493 1,826,458 -3.5% 1,618,536 -11.40%
ARTISTS IN EDUCATION 509,000 559,000 9.8% 535,507 -4.20%
INDIVIDUAL ARTISTS (OTHER) 227,900 289,080 26.9% 239,080 -17.3%

* An Agency of the Maryland Department of Business & Economic Development; Division of Tourism, Film and the Arts


Arts Education, Maryland State Department of Education (MSDE)

A total of $2.64 million for arts education funding was approved as part of the MSDE fiscal 2003 budget for the continuing development of the Fine Arts Initiatives Grants Program which provides for funding according to a formula ($20,000 plus $1.50 per student) granted to each district pursuant to the adoption by each superintendent of a five-year plan that will enable all students to meet state standards in the arts. In addition, approximately $445,000 in State funds was allocated for arts organizations offering educational services to Maryland's public schools.

Table 2: Arts Education-MSDE Appropriations, Fiscal Years 2002 to 2003

BUDGET SUMMARY Arts Education FY 2002 Appropriation FY 2003 Appropriation FY02 to FY03 Percent Change
Fine Arts Initiatives Grants Program $ 2.7 million $ 2.64 million -2.2%
Towson University, Moving America: Maryland 200,000 200,000  
State Funding for Educational Organizations (Arts-Related) 444,818 444,818 0.0%
American Visionary Art Museum 20,000 20,000  
Arts Excel (BSO) 75,000 75,000  
Nat'l Museum of Ceramic Art & Glass 25,000 25,000  
Olney Theatre 300,000 300,000  
Ward Museum 24,818 24,818  


Arts-Related Capital Funding

The State Capital Bond Loan of 2002 authorized $3 million in new capital investments for arts institutions. Another $4,973,000 million was authorized for previously approved projects- $3,373,000 for state projects in higher education and $1,600,000 for non-state projects.

In formulating the capital budget and funding for improvements to state-owned facilities, the General Assembly reserves an amount each year for non-state owned facilities they consider worthy of State funding assistance. These General Obligation Bonds- or GO Bonds- are authorized to fund various projects related to the arts and culture, economic development, education, historic preservation, recreation, and other worthy purposes, usually on a matching fund basis. (Capital funding can also be provided through general tax revenues or general funds usually used for operating budget items.)

Table 3: Arts-Related Capital Investments, Fiscal Year 2003

State Capital Bond
Loan of 2002
Recipient FY 2003
Miscellaneous Grant Programs (By County) $ 3,000,000
Montgomery Strathmore Hall Performing Arts Center ** 3,000,000
  Funds deferred to fiscal 2004 budget 2,000,000
PREVIOUSLY FUNDED STATE PROJECTS Higher Education (By County) $ 3,373,000
Baltimore FY 2002/ Towson University, Fine Arts Building 3,373,000
  Funds deferred to fiscal 2004 budget 4,070,000
PREVIOUSLY FUNDED NON-STATE PROJECTS Miscellaneous Grant Programs (By County) $ 1,600,000
Anne Arundel FY 2001, 2002/ Maryland Hall for the Creative Arts ** 250,000
Anne Arundel FY 2001/ Quiet Waters Amphitheater 200,000
Montgomery FY 2002/ Olney Theatre Center for the Arts 500,000
Prince George's FY 2002/ Gateway Arts District ** 650,000

** Designated Smart Growth "Priority Funding Areas" supporting neighborhood and community revitalization in Maryland



Maryland Citizens for the Arts' Testimony BEFORE 2002 MARYLAND LEGISLATURE


Good afternoon Mr./Madame Chairman and Committee Members. My name is George Johnston and I am the Chairman of Maryland Citizens for the Arts. With me is Ms. Ardath Cade, our Vice Chair and former Chair of MSAC and Ms. Pamela Holt who is our Executive Director.

First off, let me thank you for allowing us to testify today on behalf of the MSACs’ budget. It has been our privilege to do so for 25 years. I think Secretary Iannucci has made the case well for the MSAC so I will be brief.

I would be remiss, however, if on behalf of Maryland Citizens, I did not thank this Committee, its Chairman and the General Assembly for their generous support of the MSAC over the years. Maryland’s support of the arts, because of your leadership and commitment, has been exemplary and visionary.

We come before the Committee today well aware of the very difficult economic circumstances facing our state and the daunting fiscal decisions which this Committee and the General Assembly face. We recognize that this may well be a year where none of us will be happy with the budget results.

Yet I come before you to urge careful consideration of the budget proposed for the MSAC. As Secretary Iannucci has stated, public funding for the arts is an investment in Maryland and its future.

Statewide Impact

The Maryland State Arts Council funds arts organizations in every one of Maryland’s jurisdictions. The program has truly statewide impact. Over 90% of its total budget is distributed to arts organizations and county arts councils. MSAC is not about bureaucracy - its personnel costs are down 25% from just 2 years ago – it is all about funding for the arts. That funding reaches virtually all of Maryland’s citizens – many through direct involvement, many more as audiences. [As you can see from the supporters here today, funding of the arts is an important priority for Maryland citizens.]

Eroding Support

It is important to appreciate that despite the best efforts of this Committee and the Legislature, the state’s support for the arts has been eroding and under the Governor’s proposed budget will diminish further. Last year, the MSAC gave up to 8.5% of the operating budgets for its grantees. In prior years, that percentage had been as high as 9.5%. Under the Governor’s proposal, that percentage will drop below 8%. Most grantees would receive less, under the proposed budget, than they did last year. If the Committee were to adopt the recommendation of the legislative analyst, to slash the grants budget by 12.5%, the funding level would tumble to well less than 7.5%.

Economic Impact

Such a reduction would directly affect the economic well-being of the state and ignores the significant contribution of the arts to Maryland’s economy. The economic data on the impact of the arts are well established:

  • In 2000, the state and local taxes paid by arts organizations were 30M – many times MSAC’s budget.
  • In addition, the arts foster job growth and consumer spending. In 2000, the economic impact of the arts on the state’s economy was more than 750M, which includes 111M in direct spending by arts organizations.
  • The arts generated more than 17k jobs in the state. Funding for the arts is also smart growth money; arts facilities serve as an anchor for redevelopment and community revitalization across the state.

Education Impact

The positive impact of the arts on education and enhancing student achievement is also well documented. Just one of the programs of the MSAC – Artists in Education – reaches tens of thousands of students in every jurisdiction in this state. Conclusion The arts contribute directly to the economic, educational and social well being of our state. We solicit your leadership in supporting the funding proposed for the Maryland State Arts Council. Thank you.

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