ArtServe Update: Statement on the DIA Line Item

ARTSERVE MICHIGAN UPDATE:

STATEMENT ON THE DIA LINE ITEM

If you are not already aware, last Tuesday the Detroit Institute of Arts received a line item appropriation of up to $10 million as a one-time grant supported by General Fund dollars from lapsed FY 2010 year-end funds. As we have come to understand, this action by administration officials and legislators fulfilled a prior state commitment to assist in supporting asbestos remediation expenses incurred by the DIA in its stewardship role for this government-owned building.

Founded in 1885, the Detroit Institute of Arts is one of Michigan's treasured cultural institutions, attracting thousands of visitors each year and contributing richly to the city, region and state. The funds granted will help the DIA recover a portion of those prior infrastructure costs -- moving the organization forward in its continued efforts to regain financial stability during one of this state's worst economic climates. No funds were allocated to support programs or operations.

We understand the efforts of the administration and legislature to satisfy this prior funding commitment for the Detroit Institute of Arts. However, we must also remind our leaders of the needs of the hundreds of arts, culture and arts education organizations of all sizes that contribute richly to our state and its communities.

ArtServe opposes legislative line items in principle. It is a process that negates the state-mandated, competitive, peer adjudication grant review process administered by the Michigan Council for Arts and Cultural Affairs. It is a process that eliminates the opportunity for a fair and equitable distribution of state resources to serve the public and its needs and interests.

Therefore, while we support increased funding for Michigan's arts and cultural organizations, ArtServe urges the present and incoming administration and legislature to carefully weigh the significant role of the creative sector as an economic driver and transformative force as it considers its responsibilities to invest in Michigan's arts and cultural institutions.

Arts, culture and arts education organizations contribute over 75,000 jobs and over 21,000 creative businesses to Michigan's economy. The Michigan Economic Development Corporation reported in 2008 that arts and cultural organizations furthered state cultural tourism and economic development goals by generating $1.8 billion in state tourism revenues and $1.5 billion in personal income through their employees. In an economy with a 13% unemployment rate, we should be working to retain and attract jobs in the creative sector just as we are in business and industry.

In spite of these economic benefits, the state's investment in the arts has been cut 90% since 2002, positioning Michigan as the 48th of 50 states in per capita funding for the arts. The Fiscal Year 2011 budget for the Michigan Council for Arts and Cultural Affairs is just over $2.5 million. Of that amount, only $1.4 million is supported by the state's General Fund thanks to matching funds from the National Endowment for the Arts and other sources. The state's support for arts and cultural organizations is not comparable to the attention offered for business and industry in spite of the clear economic benefits.

ArtServe urges the state leadership to work with Michigan's arts and cultural leaders to develop sustainable strategies to restore funding for the arts, culture and arts education to appropriate levels.

As always, if you have any questions or comments please feel free to contact Mike Latvis at mike@artservemichigan.org or 248-379-5897.

ArtServe Update: MCACA FY2011 OFFICIAL BUDGET

ARTSERVE MICHIGAN UPDATE:

MCACA FISCAL YEAR 2011 BUDGET

Last week, the Conference Committee on General Government met to vote on the General Government budget for Fiscal Year 2011. The total appropriation for the MCACA in Fiscal Year 2011 will be $2,560,100 - a $200,000 increase from the current Fiscal Year due to increased federal funds received from the National Endowment for the Arts.

However, while the MCACA budget was left intact, the conference report included language stating that the three council staff was to be paid out of the council's grant budget instead of the Michigan Economic Development Corporation Strategic Fund's Job Creation Services Fund. Knowing the MEDC would push for this, ArtServe spent the past few months working with legislators to include $400,000 in an administrative line for the council in the conference report. Unfortunately, due to the amount of money the legislature has to work with we were unable to get the conference committee to include money for the council's administrative staff.

In addition to losing approximately $400,000 to administrative costs, the overall MCACA budget will be decreased by an estimated $72,000 due to unrealized funds from the MCACA tax check-off. The legislature had "penciled" in $100,000 in an effort to ensure that a supplemental appropriation was not needed.

Breaking down the Conference Report for the MCACA:
- Total appropriation of $2,560,100 (of which $1,050,000 is federal money, $1,410,100 in state General Fund dollars and $100,000 in individual donations)
- Minus around $72,000 in unrealized funds from the tax check-off box (slated at $100,000 -- Michigan citizens contributed around $28,000)
- Minus approximately $400,000 in administrative costs
- Total FY 2011 grant budget of approximately $2,088,100

While the exclusion of funding for administrative staffing costs is unfortunate, it's not the end of the world as the MCACA will continue to provide limited but much needed financial support to this state's arts and cultural organizations. Moving on, I look forward to working with a new administration and legislature next year to begin recapitalizing the MCACA.

As always, if you have any questions or comments please contact Mike Latvis directly at mike@artservemichigan.org or 248-379-5897.

ArtServe Update: MCACA FY2011 Grant Info

ARTSERVE MICHIGAN UPDATE:
MCACA FY2011 GRANT INFORMATION

The Michigan Council for Arts and Cultural Affairs met to discuss and approve grant programs for Fiscal Year 2011 and has decided to move forward with the grant process using the same funding structure as the current grant cycle.

The council agreed to keep the grant programs the same as Fiscal Year 2010, but made a few changes to the grant requirements as well as providing updated deadlines. Below is a detailed report of the changes and/or requirements for each grant program.

MCACA FY 2011 Programs
1. Program for Operational and Project Support (POPS) - Changes for FY 2011:

• All MCACA applicants (except mini-grant applicants) must register with the Cultural Data Project, www.miculturaldata.org. A full data set entry will be required by January 25 in order for grantees to receive their first payment. Note: Municipalities, government organizations and other organizations that are not primarily arts and culture-focused entities (i.e. church, school) are exempt from this requirement.
• All awarded applicants are required to notify their legislators of their grant award. A copy of this letter or email must be submitted with their contract. This also includes mini-grant recipients.
• All applicants must submit an IRS Determination Letter. Due to the new Tax-exempt requirements, MCACA will be verifying current nonprofit status by checking to see if a form 990 has been filed in the last three years.
• A $50.00 non-refundable application fee will be required for this program.

2. Regional Regranting Program

• Changes---all of the above apply to regranting agencies, except no application fee. Mini-grant recipients will be required to notify legislators.

3. Services to the Field

• Changes---all of the above, except no application fee

4. Bus Grant Program

• Timeline and other minor administrative changes to this program need to be discussed by staff.

5. NLACM Retention and Engagement Youth Grant program

• NLACM members need to review program and recommend any changes.

FY 2011 Programs timeline:
September 22--- deadline for Regranters to apply
September 27--- release guidelines and open E-grant system for Program for Operational and Project Support (POPS) and Services to the Field
October 31--- most FY2010 Final Reports due
November 1--- POPS, Services to the Field, and Mini-grants deadline
December 6-17 -- Panel meetings
Mid-January--- Council meeting to announce awards

Note: Bus Grants program and New Leaders Arts Council of Michigan Retention and Engagement Youth Grant Program date are TBD.

As always, if you have any questions or comments please feel free to contact Mike Latvis at mike@artservemichigan.org or 248-3790-5897.