Annual Report on State Arts Funding & Legislation, FY 2002
2001 Legislative Session, January 10, 2001- April 9, 2001

Table of Contents
Maryland State Arts Council
Table 1: MSAC Appropriations, Fiscal Years 2001 to 2002

Arts Education
Table2: Arts Education-MSDE Appropriations, Fiscal Years 2001 to 2002

Arts-Related Capital Funding
Table 3: Arts-Related Capital Investments, Fiscal Year 2002

Other Arts-Related Legislation
Smart Growth – Arts and Entertainment District Bill
Tourism Development Board- Creation of Dept. of Tourism

Maryland State Arts Council (MSAC)

The fiscal 2002 allowance for the MSAC submitted by the Governor was $13,712,605 million, an increase of $583,599 or 4.4% over the fiscal 2001 general fund allowance. The General Assembly voted to retain all but 0.02% of the proposed budget, leaving the MSAC with a total general fund appropriation of $13,710,405 million, an 8.3% increase over the previous year appropriation. 95% of this amount or $13,088,354 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 the MSAC Annual Report for FY 2002

Table 1. MSAC Appropriations Fiscal Years 2001 to 2002 *

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

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Arts Education, Maryland State Department of Education (MSDE)
A total of $2.7 million for arts education funding was approved as part of the MSDE fiscal 2002 budget for the continuing development of the Fine Arts Initiatives Grants Program instituted in fiscal year 2001, 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 2001 to 2002

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Arts-Related Capital Funding

The State Capital Bond Loan of 2001 authorized $59,220,000 in capital investments for arts institutions- $20,400,000 for state projects in higher education, $34,700,000 for non-state projects, and $4,120,000 for legislative initiatives.

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 2002

* GO Bond funding is being provided in FY 2003; the FY 2002 general fund appropriation was cancelled.
** Designated Smart Growth "Priority Funding Areas" supporting neighborhood and community revitalization in Maryland

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Other Arts-Related Legislation

Smart Growth – Arts and Entertainment District Legislation- SB586 authorizes the Secretary of the Department of Business and Economic Development to designate arts and entertainment districts within a county or municipal corporation for areas that are distinguished by physical and cultural resources, which play a vital role in the life and development of the community. The bill encourages the renovation of manufacturing, commercial, or industrial buildings to provide housing for residing artists by providing a credit (for up to ten years) against the county or municipal corporation property tax.

Additionally, Senate Bill 586 creates a subtraction modification under the Maryland income tax for the amount of income derived from the publication, production, or sale of artistic work by a qualifying residing artist. A resident artist or for profit or nonprofit organization dedicated to visual or performing arts can also receive an exemption from the local admissions and amusement tax for certain receipts if they are located in an arts and entertainment district, as well as financial assistance from the Maryland Economic Development Assistance and Authority Fund within the Department of Business and Economic Development.

For Complete Summary, Copy of Bill and MCA Testimony
Click Here

MD Tourism Development Board- Creation of Dept. of Tourism- As originally introduced, HB 9 would have created a cabinet-level Department of Tourism, making Maryland one of six states to have such a department. The department would have consisted of divisions transferred from the Department of Housing and Community Development and the Department of Business and Economic Development, including the Division of Tourism Development, the Division of Historical and Cultural Programs, the Maryland Tourism Development Board, the Maryland State Arts Council, the Commission on African American History and Culture, the Commission on Indian Affairs, and the Maryland Historic Trust.

However, as finally passed, the bill does not create a new department. Instead, House Bill 9: (1) increases the membership of the Maryland Tourism Development Board from 17 to 19 members; (2) increases the funding of the Maryland Tourism Development Board Fund from $6 million in fiscal year 2002 to $8.5 million in fiscal 2003 and each fiscal year thereafter, mandating that the Governor include in the budget funding for the Office of Tourism development not less than the FY 2001 appropriation.

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