ArtServe Michigan: MCACA Budget Update

ArtServe Michigan: MCACA Budget Update

Yesterday, the Senate General Government Appropriations Subcommittee released and passed its substitute to House Bill 5880. Included in the bill was a total appropriation of $2,560,100 for the Michigan Council for Arts and Cultural Affairs, $300,000 above current year spending and $200,000 above the Governor's recommendation and the House approved appropriation for Fiscal Year 2011. The increase comes from additional anticipated federal revenue from the National Endowment for the Arts.

This current fiscal year, staffing and administrative costs are being covered primarily by the MEDC through its Job Creation Services fund. One of our concerns has been that the MCACA would have to cover its administrative costs out of the grant budget because the Governor had included no funds for staff - the House concurred with her recommendation. The Senate Subcommittee went against the Governor's recommended and House approved version of the bill by leaving the 3 FTE positions in the Job Creation Services line in the Strategic Fund budget.

Here's a summary of the differences:

Governor's Recommended and House Approved:
* MCACA - Total budget of $2,365,000
* Minus $400,000 in staffing costs
* Minus around $75,000 in unrealized funds from the tax check-off box (slated at $100,000)
* Total grant budget of around $1.8 million

Senate Substitute:
* MCACA - Total budget of $2,560,100
* Minus around $75,000 in unrealized funds from the tax check-off box (slated at $100,000)
* Total grant budget of around $2.1 - $2.2 million

While I know that there is still a long way to go in the budget process, I believe this to be a small victory. This is the first time in a long time that the Senate has chosen not to recommend a cut to the MCACA grant budget. I understand that this is still 93% below levels of 2001, but given the circumstances, I think we have much to be proud of by preserving funding for FY 2011.

I would like to thank all of the advocates residing in the subcommittee member's districts that sent emails asking them to preserve funding and include additional funds for staffing and administrative allocations. There's no doubt that your communications played a key role in ensuring that the subcommittee would choose not to recommend a cut for the first time in years.

The budget, passed by the full Appropriations Committee yesterday afternoon, will now go before the full Senate for a vote. Following its passage, the bill will be sent to conference committee where members from the Senate and House will hash out the differences. Trust that ArtServe will continue to monitor the budget situation as it progresses and will keep you informed each step of the way.

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