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Maryland State Arts Council- State Budget (1994)

Why Maryland's Arts Industry Needs HB 594

Despite tremendous strides in arts advocacy, arts funding has proved fragile and unpredictable. In the years preceding passage of the "Arts Stabilization" Bill (HB 594) in 1994, this was vividly illustrated. Drastic cuts to state arts budgets, far in excess of actual state revenue reductions, swept a nation in recession. In some cases, a new Governor came into office and refused to appropriate sufficient funds in his/her budget for the arts. In other cases, a sour economy was cited as the reason for truly draconian reductions, when in fact, arts cuts were far deeper than dictated by any actual economic downturn.

Here in Maryland, the arts budget was particularly vulnerable. Unable to add funding to the state budget submitted by the Governor, the Legislature had no means to check executive actions reducing or eliminating state arts funding. Neither could it ensure the arts would have a fair shot at obtaining an increased level of support driven by real growth in state revenues. All that changed with the passage of HB 594.

Promoting Stability, Allowing Growth: A Safeguard for the Arts

Maryland's Arts Stabilization Bill (HB 594) is one of the most important pieces of state arts legislation in the country. Under HB 594, the budget submitted by the 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. In addition, it further states that when State revenue estimates rise, as submitted by the Board of Revenue Estimates to the Governor, his or her appropriation for the arts should rise by the same percentage.

When times are good, the arts will have a fair shot at obtaining an increased level of support driven by real growth in state revenues. And when times are bad, the arts are assured an opportunity to make their case for funding, without fear of crippling cuts or elimination by the Executive branch.

By tying the arts exclusively to state revenue growth, the bill is fiscally responsible, and ensures that the arts will maintain a significant position in our society.
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BILL TEXT

HOUSE BILL 594, as amended
Introduced and read first time: January 31, 1994 (Signed and Enacted: May 2, 1994)
Assigned to: Appropriations

A BILL ENTITLED
AN ACT concerning
Maryland State Arts Council - State Budget

FOR the purpose of requiring the Governor to include certain appropriations in the annual Budget Bill for the Maryland State Arts Council; providing for the application of the Act; and generally relating to certain required appropriations for the Maryland State Arts Council.

BY adding to
     Article - State Finance and Procurement
     Section 77-325
     Annotated Code of Maryland
     (1988 Replacement Volume and 1993 Supplement)

Preamble

     WHEREAS, A strong and healthy arts community enhances the cultural landscape and educational diversity of Maryland; and
     WHEREAS, Investing in the arts is a powerful stimulus to economic development and the growth of tourism in Maryland; and
     WHEREAS, Funding for the Maryland State Arts Council had declined by almost 20% in the last three years and grants to many arts organizations have been reduced by over one-third since 1991; and
     WHEREAS, It is a goal of the General Assembly that the State eventually provide 10% of the general operating budgets of the arts organizations receiving grants from the Maryland State Arts Council; and
     WHEREAS, This legislation will provide a means for attaining that goal by ensuring that when State revenues are growing, funding for the arts will also grow commensurately; now, therefore,
     SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, That the Laws of Maryland read as follows:

Article - State Finance and Procurement

7-325.

(a)     [In this section, "Governor's proposed general fund appropriation" means
the general fund appropriation included by the Governor in the annual budget bill as
submitted to the General Assembly, before any amendment by the General Assembly.

(b)]     For each fiscal year, the [Governor's proposed general fund] GOVERNOR
SHALL INCLUDE IN THE ANNUAL BUDGET BILL SUBMITTED TO THE GENERAL
ASSEMBLY AN appropriation for the Maryland State Arts Council [shall be] IN AN
AMOUNT not less than the amount of the [Governor's proposed general fund]
appropriation for the Council AS APPROVED IN THE STATE BUDGET AS ENACTED BY
THE GENERAL ASSEMBLY for the [current] PRIOR fiscal year, increased by not less
than the percentage by which the projected total general fund revenues for the
upcoming fiscal year exceed the revised estimate of total general fund revenues for
the current fiscal year, as contained in the report of estimated State revenues
submitted by the Board of Revenue Estimates to the Governor under § 6-106(b) of
this article.

[(c)]     (B)     The Legislative Auditor has the authority to conduct a review or
audit of any recipient of a grant from the Maryland State Arts Council.

     SECTION 2. AND BE IT FURTHER ENACTED, That for the fiscal year that begins July 1, 1995, the Governor shall include in the annual Budget Bill submitted to the General Assembly a general fund appropriation for the Maryland State Arts Council in an amount not less than the actual general fund appropriation for the Council as enacted by the General Assembly for the fiscal year that began July 1, 1990.
     SECTION 3. AND BE IT FURTHER ENACTED, That Section 1 of this Act shall be applicable to all fiscal years beginning on or after July 1, 1996.
     SECTION 4. AND BE IT FURTHER ENACTED, That this Act shall take effect July 1, 1994.

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