For the past decade, Createquity has taken a technocratic approach to covering arts policy in the United States and beyond. We’re not mindless cheerleaders for arts funding; we recognize that governing requires making tradeoffs in the face of limited resources, and have argued against certain types of government arts support in the past. Nevertheless, we believe that the National Endowment for the Arts and other targeted federal agencies do valuable work and are worth saving.

Here are some perspectives on the current budget situation that you may find of use:

Are all these cuts actually going to happen?

Probably not, but that doesn’t mean the danger isn’t real. It appears that Trump’s budget was heavily influenced by staffers from the conservative Heritage Foundation, which has long targeted agencies including the NEA and CPB out of an ideological belief that the government shouldn’t be funding the arts and humanities at all. Nevertheless, the budget proposal is already running into opposition from Congressional Republicans, who are seeing it as unrealistic and poorly targeted. Furthermore, eliminating the NEA and NEH will require an actual act of Congress, not just a ratification of the president’s budget. All of that suggests it’s unlikely (though possible) that the agencies will disappear completely, at least in FY18.

That said, it seems virtually certain that we will see at least some cuts. Trump’s budget is so aggressive in so many areas that pushing back on all fronts simultaneously will be very difficult—indicative of a classic hardball negotiation technique.

How will regular people be affected if these agencies are actually eliminated?

It depends on where they live. The vast majority of foundations and individual donors concentrate their giving in the immediate geographic area around where they’re based, which means that the areas with the most wealth (largely big cities on the coasts) are also the ones that receive the most philanthropic funding. As a result, resources are few and far between for arts organizations and public radio and television stations alike in rural America.

In the NEA’s case, the agency has made a point to provide direct funding in every congressional district in the country. Perhaps even more important, though, is the NEA’s system of partnerships with state and regional arts councils, which come with a carrot of matching funds from the federal government in exchange for appropriations from state budgets to their respective state arts councils. In the years following the Great Recession when state budgets were under severe pressure, many of these state arts councils survived in no small part because of this matching fund arrangement. Meanwhile, an external assessment estimates that eliminating the Corporation for Public Broadcasting would mean 12 million people losing their access to over-the-air public television, mostly in isolated areas.

As for arts organizations, museums, and public broadcasters in other regions of the country, some will have a tough time to be sure, but the overall effect on the ecosystem would be subtle. The United States didn’t have the NEA, the NEH, CPB, or IMLS for the first 190 years or so of its existence. We believe these agencies create more value than we spend on them, but if they are eliminated, arts and culture will soldier on.

Speaking of creating value, I read that the NEA gets a return of $9 for every dollar invested. Is that true?

No, and we wish arts advocates and the agency itself would avoid using this misleading statistic. It falsely assumes that none of the matching funds leveraged by the NEA would otherwise be there for grantees if the federal funding went away. In reality, matching funds are fungible to a large degree, meaning that the non-federal money is often already committed and it’s really the government that is providing the match, not the other way around. (The big exception here is matching funds for low-budget state arts councils, as discussed above.) Framing it as a “return on investment” is even more misleading, as this implies an astronomical multiplier effect to the spending that simply has no basis in evidence.

Right. So why can’t the arts just fend for themselves on the free market?

They already do. The United States is an outlier among developed-world economies in that its arts funding system is highly decentralized and market-driven. Just 1.2% of arts organizations’ budgets comes from the federal government, so artists and arts organizations have no choice but to sink or swim in the private sector. And as noted above, for all conservatives’ trumpeting of the free market, private philanthropy isn’t very generous to the rural areas and red states that helped Trump get elected. In any case, getting rid of the NEA doesn’t get the government out of the business of funding the arts. In fact, the most significant federal arts funding sources are the Smithsonian ($840 million) and the Department of Defense ($437 million for military bands alone). Yep, that’s right: we spend three times as much on military bands as we do on the entire budget of the National Endowment for the Arts.

Not to mention, it’s a little rich to complain about nonprofit arts organizations drinking from the government trough when we give away billions of dollars in free money to for-profit industries including oil & gas, corn, and airlines.

Wait, so if the NEA is so insignificant, why bother fighting for it? Wouldn’t it be easier to just take the money and create a parallel private endowment with the same mission?

Yeah, that does sound nice, doesn’t it? Unfortunately, it probably wouldn’t work. Just to maintain current funding levels, which are well below the agency’s inflation-adjusted peak from 1992, one would have to raise an endowment of approximately $3 billion, which would rank up there with the nation’s largest private foundations. Interestingly, Kansas tried to do something like this several years ago—Governor Sam Brownback terminated the Kansas Arts Commission with the plan of setting up a new private entity, the Kansas Arts Foundation. The plan never got off the ground due to poor fundraising results, and the next year, the arts council was brought back to life under a new name.

The NEA’s budget is slight, but as a result it’s had to learn to accomplish a lot with a little (by federal government standards, anyway). The agency does important knowledge infrastructure work, most notably by organizing the Survey of Public Participation in the Arts (SPPA), conducted every five years in collaboration with Census Bureau. The SPPA provides us with widely-used statistics about arts participation that would be extremely hard to replicate with the same accuracy in the private sector, because the imprimatur of government is so important for reliable surveys. As a government agency, the NEA also possesses an important power to help set agendas in an otherwise leaderless ecosystem. The contemporary creative placemaking movement was almost entirely incubated at the NEA under the leadership of former Chairman Rocco Landesman, which looms as one of the Endowment’s biggest policy wins in recent history.

What about the argument that the arts and media are better off operating outside the influence of government?

We largely agree with this—it’s one reason why the United States is better equipped to withstand creeping authoritarianism than democracies with more centrally controlled institutions. But as noted above, America’s arts funding system is already far too weak to make political work risky for artists in the way that it is risky in some other countries. Thus, while protecting freedom of expression could be a valid argument against increasing the agencies’ budgets by too great an amount, it is not an argument for decreasing them.

What about other agencies? Is the impact on the arts limited to the Endowments, IMLS, and CPB?

Unfortunately, no. The Trump budget is very wide-ranging in its targets, and includes relevant cuts to the State Department’s Bureau of Educational and Cultural Affairs, the Interior Department’s National Heritage Areas, funding for after-school and summer enrichment programs within the Department of Education, and the Department of Housing and Urban Development’s Community Development Block Grant (CDBG) program, which helps fund low-income artist housing initiatives.

Is it wise to put energy into defending the NEA and these other agencies when there’s so much else going on (climate change, threats to immigrants, international relations, etc.)?

That’s a tough call, but we believe the answer is yes. The Trump administration represents a unique challenge for America today, and picking battles seems to play into its strategy. Legislators make the budget, legislators for the most part want to keep their jobs, and they respond to pressure from their constituents. So you know what to do. #SavetheNEA.

Cover photo credit: Felix Russell-Saw

Flo & Eddie of the Turtles – by ShellyS, Creative Commons license

In what could be a landmark case in the annals of digital music, a federal judge recently ruled that SiriusXM is liable for copyright infringement for failing to pay royalties to performers on pre-1972 songs. Though federal copyright protection applies only to recordings made on or after February 15, 1972, 1960’s band the Turtles successfully argued that the satellite radio giant has played its songs in violation of protections under California state laws. Artists and music industry executives can’t quite pop those champagne corks yet: the decision is limited to California, SiriusXM plans to appeal, and a separate suit by major labels seemed to contradict the Turtles ruling. Even so, the Turtles are continuing to push the envelope, filing a new suit against internet radio company Pandora. As these cases wind their way through the courts, a potentially clarifying initiative waits in the wings in Congress: the Respect Act would offer pre-1972 artists federal legal protection.

Major Tax News for Artists and Wealthy Collectors: In a victory for artists, the United States Tax Court ruled that even those who don’t make much money from their art still count as “professionals” in the eyes of the IRS. The implication is clear: artists with day jobs that partially fund their artistic careers can deduct art expenses from their taxable incomes. Not all artists may qualify, though – the case in question was brought by Susan Crile, a painter and printmaker whose works are held in several museums, and while she makes most of her income from her job as a professor at Hunter College, she has had a robust career, with an average annual haul of $16,000 from sales of her work. In other IRS news, the U.S. Court of Appeals for the 5th Circuit recently ruled that the estates are eligible for discounts on art that is partially owned among heirs, a ruling with potentially far-reaching implications for wealthy collectors. Michael Rushton and Donn Zaretsky provide additional analysis.

Two National Foundations Reboot their Arts Funding: The Wallace Foundation announced Building Audiences for Sustainability, a six-year, $40 million initiative to help up to 25 performing arts organizations expand their audiences and build knowledge in the field as a whole. The effort is based on insights gained from the foundation’s earlier Wallace Excellence Awards and successful practices highlighted in other research papers. Just a few days later, the $6 billion Andrew W. Mellon Foundation announced the results of its 18-month strategic planning process, which will result in the merger of separate programs for liberal arts colleges and research universities and programs for the performing arts, art history, conservation, and museums.

Los Angeles Board of Supervisors Approves Additional $54 Million for the Arts: Los Angeles County cultural organizations will gain $54 million in new government funding, increasing the originally authorized allocation of $84.7 million by a whopping 63 percent. Part of a “supplemental budget” process to divvy up hundreds of millions of dollars that went unspent in 2013-14, $28.6 million is dedicated to the John Anson Ford Theatres renovation. Other big winners include the Music Center ($6 million), La Plaza de Cultura y Artes ($5 million), and Natural History Museum ($1.7 million), all of which will see capital upgrades as a result of the new cash infusion.

Smithsonian Institution Announces a $1.5 Billion Fundraising Initiative: The Smithsonian has embarked on its first national fundraising campaign since its founding in 1846, partly in response to a decreasing appropriation from the U.S. Congress that now funds only 60 percent of its budget. With $1 billion already in the bank from 60,000 donors (including multimillion-dollar gifts from the Bill and Melinda Gates Foundation, Oprah Winfrey, David Koch, and Boeing), it appears that the Smithsonian has a great shot at raising the remaining $500 million by the campaign’s end in 2017. Major allocations will include $250 million to build the National Museum of African American History and Culture, and millions more to renovate the Renwick Gallery, National Air and Space Museum, and the National Museum of American History. A portion will also be dedicated to educational initiatives, including the digitization of many collections.

MUSICAL CHAIRS/COOL JOBS

• The White House announced Danny Marti as the nominee for “piracy czar” position enforcing trademarks and copyright.
• The NEA selected Ann Meier Baker as its new Director of Music and Opera.
• Edwin Torres, formerly of The Rockefeller Foundation, joins the de Blasio administration in New York City as the Deputy Commissioner of Cultural Affairs.
• The Artist Trust announced Shannon Roach Halberstadt as their new executive director.
• Julie Burros, formerly head of cultural planning at the Chicago Department of Cultural Affairs and Special Events, has joined the City of Boston as its new Chief of Arts and Culture.
• Santa Barbara mayor Helene Schneider announced 19 individuals as the board of directors of the new Bellosguardo Foundation.
• The Greater Philadelphia Cultural Alliance has named Maud Lyon as its new president.
• The Rockefeller Foundation seeks a New York City-based Senior Evaluation Officer. Posted September 18, no closing date.
• The Native Arts and Cultures Foundation is looking for a new Director of Programs. Salary: $115,000-$135,000. Posted October 17, no closing date.
• Two jobs are available at the Los Angeles County Arts Commission Arts for All program: Program Coordinator (Salary: $43,000-$50,000; closing date November 7) and Research Coordinator (Salary: $43,000-$50,000; closing date November 30).
• Fractured Atlas is hiring an Arts & Technology Policy Fellow. Salary: $70,825. Posted on October 8, closing date November 14.

NEW RESEARCH OF NOTE

• Drexel University researchers have been using CultureBlocks data to study the development of arts hubs in Philadelphia.
• Grantmakers in the Arts has proposed new national standards for research on individual artists, with work from our own John Carnwath.
• The NEA and WolfBrown released a report on the potential impact of choir participation on residents in a juvenile detention facility.
• New research from Harvard’s Psychology Department suggests that extraordinary arts experiences can actually lead to feelings of exclusion, not joy.
• The colorfully named “Hard Facts to Swallow” report from the UK finds that geographic disparities continue: London-based arts organizations are projected to receive four times the funding of organizations outside the capital from Arts Council England.

• Seems that New York City’s recent bill forcing schools to report out on the availability of arts education in its schools comes not a moment too soon: an audit from the state comptroller found that roughly half of seniors graduated from high school without having met arts education requirements.
• Denver is out with a bold new seven-year cultural plan, “Imagine 2020.” Among other things, it seeks to “increase the visibility of local and creative talent” by inventorying and ranking the availability of the arts in all neighborhoods, and supporting micro-art projects that can create new gathering spaces across the city.
• A federal court has ordered Google to remove the infamous “Innocence of Muslims” film from YouTube after an actress who appears on screen for only five seconds – and was told she was appearing in an adventure movie – asserted that posting the film against her wishes violates her copyright in her performance. The injunction is preliminary; Google is appealing.

MUSICAL CHAIRS

ALL ABOUT THE BENJAMINS

• The two latest articles to document artists’ struggle to make ends meet, even once they are established: on writers in London and artists in New York City.
• Hooray for practicing what you preach: the Hewlett Foundation takes stock of the two strategies of its Effective Philanthropy program – and announces that it will wind down and replace the one that the evidence suggests wasn’t working.
• Aditi Kapil from Minneapolis’s Mixed Blood Theater Company unpacks lessons from the company’s free ticket initiative, such as the idea that infrastructure costs make “free cheaper than cheap.” And thanks to to a new grant, all visitors to the Wilma Theater can now enjoy $25 tickets during the first four weeks of a show’s run. The newly flattened price structure will be in place for three years.

IN THE FIELD

• The Future of Music Coalition has been quizzing musicians on their knowledge of current copyright law, and the results are mixed, suggesting “there remains widespread confusion about the difference between musical composition and sound recordings” and musicians are generally unaware of “the changes in the digital landscape that have altered the way that money flows back to creators.”
• After managing to squeeze twelve years out of what was intended to be a three-year program, the USC Annenberg/Getty Arts Journalism Program ended with its final fellows last November.
• Getty Images has released 35 million photos to be used freely for non-commercial purposes, bowing to widespread, often ignorant infringement of its images. There are a few catches: the interface is clunkier than for paying customers, Getty can track usage data, and they reserve the right to put ads in the embedded image viewer. Now that we’ve liberated images and music, are books and movies next?
• Yes, data-driven decisions can come from cocktail napkins: Nina Simon offers a nifty example of how a simple measure of “success” can help draw comparisons across programs.
• The new performing arts center planned for the World Trade Center site, in the works for over a decade, faces an uphill battle to raise hundreds of millions of dollars for construction with former mayor and big-ticket arts champion Michael Bloomberg no longer in office. The project will have to compete with several recently-opened theater spaces of similar size as well as the nearby 9/11 Memorial & Museum.

BIG IDEAS

• An example-driven look at how grantmakers are building innovation into their programs to tackle large social problems in Stanford Social Innovation Review pairs well with this examination by four Boston Consulting Group strategists of what nurtures the “evolvability” of big companies like Google and Netflix. Meanwhile, Andrew Taylor poaches more lessons from the for-profit world by examining what the “Minimum Viable Product” familiar to tech start-ups might mean for the arts.
• March 20 was both the first day of spring and the UN’s International Day of Happiness, co-sponsored this year by Grammy winner Pharrell Williams. The designation of the day was inspired in part by Bhutan’s embrace of Gross National Happiness as a critical indicator of the country’s health. Culture is one of the pillars of GNH, so Createquity readers have special reason to celebrate.
• The Future of Digital Longform Project is out with a whopper of a report on how “long” (i.e. 5,000+-word) pieces of nonfiction are evolving, what “designing a story” can mean, and how and if writers can hope to make money from these efforts.
• Digital platforms continue to creep into the edusphere, with the College Board announcing a plan to (finally) counter the overpriced SAT-prep industry via a partnership with Khan Academy, and EdX, the only major non-profit MOOC provider, expanding its list of course partners to include NGOs and nonprofits ranging from the Smithsonian to the IMF.

RESEARCH CORNER

• Egads! First we learn we can’t always trust research; then we learn we can’t always trust the research that tells us not to trust research.
• The UK’s cultural sector’s hiring practices unfairly stifle diversity, a report from Creative and Cultural Skills finds. CCS calls out a widespread preference for unpaid workers and a tendency to hire people already known to existing employees as particular problems.
• A new report from the National Center for Arts Research has found that well under half of directors of the nation’s largest art museum directors are female, and they earn roughly three-quarters the salaries of their male counterparts.
• Southern California’s “creative industries” are booming with roughly 1 of 7 jobs in the Los Angeles area tied to the creative sector, according to the 2013 Otis Report on the Creative Economy. However, the relationship between the report and the fiscal health of the arts sector — and the economic stability of artists in the region — is murky.
• The international art and antique market, meanwhile, is  almost back to pre-recession levels. The uptick, however, is more due to the rising cost of artwork rather than an increased number of sales, suggesting a continued and worrisome creep toward a “winner take all” economy.
• The Brookings Institute tried out a badass new research methodology — a “survey with placebo” — in a recent attempt to measure the impact of advocacy organizations on the passage of school choice legislation. The method is one of several new and intriguing practices in advocacy evaluation.

• With a rare, wide-open mayoral race underway, Boston’s arts community has come together to assert some political sway of its own. The new advocacy coalition MassCreative organized a nine-candidate forum that actually pushed back a televised debate. The primary is today.
• North Carolina’s Randolph County just banned Ralph Ellison’s Invisible Man from school libraries following a parent complaint that the novel is “too much for teenagers.”

MUSICAL CHAIRS

• The Mrs. Giles Whiting Foundation welcomes Createquity’s own Daniel Reid as its new executive director and Courtney Hodell as director of the Whiting Writers’ Awards.
• The Ford Foundation announced Martin Abregú as its new vice president for the Democracy, Rights, and Justice program, and Hilary Pennington as the vice president of Education, Creativity, and Free Expression. Pennington, who previously led education initiatives at the Gates Foundation, will oversee all of Ford’s arts funding beginning October 1.
• Nearly a year after its prior president, Jeremy Nowak, resigned after eighteen months on the job, the William Penn Foundation has announced a search to fill its top leadership position, newly reframed as a “managing director.”
• John Palfrey, an expert on technology and civic engagement, is succeeding Robert Briggs as the new chair of the board of the Knight Foundation.
• G. Wayne Clough, who has served as the director of the Smithsonian Institution since 2008, will step down in October 2014.
• So long, Technology in the Arts blog; hello, Arts Management and Technology Laboratory. The rebranded/reimagined service from Carnegie Mellon’s arts management program will serve as “a research outlet for those working and learning in the arts management and technology sector,” and features interviews, case studies, research summaries, and more.

IN THE FIELD

• Nathan Zebedeo reviews Sarah Durham’s Brandraising: How Nonprofits Raise Visibility and Money Through Smart Communications for the (ahem) brand-new Fractured Atlas Book Club.
• Last week, Americans for the Arts hosted a blog salon focusing on arts education and the “trifecta of education accountability—standards, assessment, and evaluation.” The salon included a perspective from Createquity’s own Talia Gibas and a nice summary from Kristen Engebretsen, and touched on testing, teacher evaluation, the Common Core, and more.
• Speaking of accountability, Tennessee is rolling out an ambitious evaluation system for visual and performing arts teachers that relies on portfolios of student work. Teachers select samples they feel show evidence of growth over time, and submit them electronically for peer review. Time-consuming and complicated? Yep. Worth following? You bet.
• Udacity, a popular provider of online college-level courses known as MOOCs (Massive Open Online Course), has announced the launch of Open Education Alliance, bringing together leading tech companies and educators to “bridge the gap between the skills employers need and what traditional universities teach.” Is there an Open Arts Education Alliance in the near future?
• The Detroit Free Press takes an in-depth look at the embattled Detroit Institute of Arts’s long and tangled relationship with its hometown, providing insight into the current threats of deaccessioning.
• Last Wednesday, September 18, #AskaCurator Day “connect[ed] experts in venues large and small directly to gallery and museum fans across the world, inviting both parties to take to their [Twitter] handles and ask each other anything they want.” You can catch up on the conversations here.

BIG IDEAS

• “Arts Dinnervention” participants Devon Smith and Laura Zabel each reflect on the recent WESTAF-supported discussion, which brought together twelve arts leaders to consider new solutions to old problems. While the convening did not result in a singular path forward, there was one notable consensus: “the arts are not in trouble, it’s the institutions that are failing.”
• The Dallas Morning News has taken a novel approach to hiring a new art critic to its staff, a position empty since 2006. The addition of Rick Brettell, an art history professor at the University of Texas, will strengthen the news org’s arts coverage and is the second time it has worked with UT to hire a local professor as a cultural critic.
• Is it ethical for arts funders to start what they cannot finish? Diane Ragsdale, one of the official bloggers at the upcoming Grantmakers in the Arts conference, has her doubts.
• How is an artist like a social entrepreneur? Laura Callanan explores the similarities at SOCAP13.
• If you’re looking for a dose of wisdom to go with your morning cup o’ joe, start here: an array of arts leaders including Roberto Bedoya, Janet Brown, Richard Kessler, Margot Knight, and Mara Walker reflect on what they have learned from their years in the field.

RESEARCH CORNER

• Break out the champagne – the arts have stagnated! Americans for the Arts’s new 2013 National Arts Index is practically identical to last year’s, following several years of steady decline. The study finds deeper reason for optimism in the wake of the Great Recession: over the last 10 years, total private giving to all charities and the total number of workers in all occupations have been strong predictors of the health of the arts sector, and both are up.
• Jon Silpayamanant digs into the WPA Federal Music Project with an annotated bibliographic timeline and argues the WPA, as well as the Federal Emergency Relief Administration that preceded it, were crucial to classical music during the Great Depression.
• Data on the relationship between cities’ aesthetics and economic health may be soon within reach thanks to Place Pulse, a project out of MIT that asks users to rank  photos from cities as more or less “boring,” “safe,” “lively,” etc.
• A new survey conducted by the Center for Effective Philanthropy catalogs concerns about foundations from non-profits: nearly half of the respondents felt that foundations are not aware of the challenges the respondents face, and more than two-thirds believe foundations fail to use their various resources to help nonprofits with their challenges. Commentators blame power dynamics and the “inherently self-serving” structure of foundations.
• Connoisseurs of fine wines and classical music may be dismayed over recent studies examining the complexities involved in critical judgement. Turns out that experts and amateurs alike are susceptible to everything from presentation, environment, and even price (gasp!) when it comes to evaluating quality.
• When faith and evidence collide, sometimes it’s faith that wins – at least when it comes to politics. See also Margy Waller’s Uncomfortable Thoughts piece for Createquity from back in the day.

After a long lull, we’re starting to see some action on the arts and related topics at the federal level. First, the House and Senate have passed a continuing resolution enshrining the “sequester” cuts in the rest of Fiscal Year 2013, meaning that the National Endowment for the Arts and other federal agencies are sustaining a 5% decline from their originally enacted budgets. For the NEA, this means that the new budget is approximately $139 million instead of $146 million, which puts it at the lowest level since George W. Bush was president. (At the first link above, Americans for the Arts has a short video touting the importance of getting involved in Arts Advocacy Day. It’s nicely put together, but as with other videos of this type I can’t help but feel the message might be more compelling if it were accompanied by some music that the NEA actually funded.)

Second, President Obama has released his FY14 budget request. While this still needs to get through Congress, it’s significant in that it sets a likely upper bound for the budgetary appropriations of various arts-related agencies. The LA Times’s Mike Boehm reports that Obama’s budget is relatively generous to those agencies compared to previous years, providing a 4.5% increase in the aggregate above the pre-sequestration levels. The budget allocates $154.5 million to the NEA, which is right about what Americans for the Arts was pushing for but is still well below peak levels. The Smithsonian and National Gallery of Art do relatively well under the President’s proposal, while the Institute for Museum and Library Services and the Kennedy Center get lower priority. Despite the reasonably good news, Obama’s budget request also brings back a much-derided proposal to cap deductions at 28% of adjusted gross income – including the charitable deduction. (More on the charitable deduction later this week.) Watch AFTA President Bob Lynch discuss the budget proposal on PBS here.

In non-appropriations-related items, the Supreme Court has ruled 6-3 in favor of Supap Kurtsaeng, the Cornell math student who made bank by reselling Wiley textbooks purchased overseas at a cheaper price, thus preserving what’s known as the first-sale doctrine in copyright law (i.e., that you’re free to sell used items without first getting permission from the copyright owner). An ongoing legal battle between network television broadcasters and a startup called Aereo, which uses micro-sized antennas to rebroadcast over-the-air content to tablets and smartphones for a monthly fee, could have implications for internet TV more generally. Amidst all this, Federal Communications Commission Chairman Julius Genachowski has announced his retirement from his influential position affecting issues like low-power radio and net neutrality; Future of Music Coalition issues a statement on his departure, and as a bonus offers a review of Maria Pallante’s appearance before the US House to testify about potential updates to the Copyright Act. Finally, many of the critical measures in the America Invents Act patent reform legislation went into effect earlier this month; Keith Sawyer offers some analysis.

STATE AND LOCAL

This isn’t quite “news” since it’s still highly speculative, but for the first time in several years, there is a serious bid afoot to restore the California Arts Council to its former glory. The CAC had its budget cut by 94% a decade ago in the face of financial pressures on the state budget, and has languished among the worst-funded state arts councils per capita ever since. AB 580, sponsored by lawmaker Adrin Nazarian, is a bid to raise the CAC’s state appropriation from $1 million to an eye-popping $75 million, which would easily take the prize for biggest state arts funding story of the year if successful. California’s budgetary situation is arguably no better than it was when the CAC was cut in the first place, but arts advocates are hoping that Governor Jerry Brown, under whose leadership the Arts Council was brought into being back in 1975, will be the difference between this effort and three previous ones that failed (the most recent in 2009). I enjoyed this excerpt from the article:

At the hearing Tuesday, John Gallogly, executive director of L.A.’s Theatre West and a board member of the statewide advocacy group Californians for the Arts, presented each committee member with a crayon that cost 3 cents — the amount per resident that he said state government now funnels to the Arts Council if the federal and license plate money are excluded.

“We’re trying to say ‘give us a small box of crayons,'” instead of just one, Gallogly said. “You can’t create a rainbow with just one color.”

In other state news, the newly reorganized Connecticut Office of the Arts is receiving some bad press from the Connecticut Mirror. A number of arts organizations are apparently unhappy with the new creative-placemaking-oriented system for awarding grants, which relies on a cumbersome application process and out-of-state panelists who evaluate the proposals asynchronously. And Washington State has hit venues where patrons “are given the opportunity to dance” with thousands of dollars in back taxes on the basis of an obscure law dating from the 1960s that hadn’t been enforced in decades.

With the economy now four years removed from the official end of the Great Recession, we’re starting to see some recovery in local government budgets and with it, some welcome increases in arts funding revenue streams – particularly in the West. In Nevada, Clark County (which contains Las Vegas) voted to create a Percent for Art program for the first time, which will “divert 5 percent of annual room tax collections and 5 percent of the county’s share of property taxes into the Arts Fund, not to exceed $1.25 million.” In Utah’s Salt Lake City, increased tax revenues have boosted city arts funding by 14% over last year. California’s San Bernadino County, part of the fast-growing Inland Empire region, lost its arts council in 2006, but as of this year it’s back, with a budget of almost $300,000. And in Atlanta, mayor Kasim Reed seems to be proposing a 25% increase in the budget for the city’s Office of Cultural Affairs, though no one seems sure exactly what he means by that.

Meanwhile, the LA Unified School District has declared the arts a core subject for its 660,000 students but is finding that the devil is in the details, and things have gotten so bad in the Saint Paul Chamber Orchestra labor dispute that the Mayor’s office has gotten directly involved in the negotiations – though to no avail as yet.

INTERNATIONAL

What a bizarre story from Australia: just 11 days after arts minister Simon Crean unveiled the country’s new cultural policy to great acclaim, he is out of a job following a failed coup attempt aimed at Prime Minister Julia Gillard. Crean’s departure leaves the new plans in significant doubt, despite the fanfare with which they were announced. Ben Eltham has more.

Elsewhere, the news is still mostly bad but at least it’s letting up a bit. Arts Council England is taking it on the chin with yet more cuts, this time of just over 1%. In Spain, where the arts community has been deeply affected by austerity measures, arts groups are coming up with some innovative ways of coping – for example, by handing patrons carrots instead of tickets to protest/get around a punishing 21% sales tax on the latter. And in Romania, a national museum has had to partially shut its doors due to a lack of funds.

PUBLIC POLICY AND THE ARTS – FEDERAL

• The State Department, though the New England Foundation for the Arts, is funding a major new cultural diplomacy program aimed at bringing foreign artists to small and midsize cities across the United States.
• Alyssa Rosenberg apparently wasn’t done going through the arts records of the 2012 Presidential candidates; here’s her take on Barack Obama.
• The Future of Music Coalition is really developing a top-notch policy shop within its ranks. No other arts service organization I know of is as on top of current (non-NEA-related) legislation as they are. Policy Fellow Liz Allen takes a thorough look at a proposal put forward by Senator Amy Klobuchar (D-MN) that would make streaming a work without the copyright owner’s permission a felony in certain circumstances.
• Some big-name fashion designers are agitating for copyright protection of their works. I haven’t yet formed an opinion, but I have yet to read a commentary from outside of the fashion industry who thinks this is a good idea.
• Judith Dobrzynski reports that the Smithsonian’s proposed budget appropriation for FY2012 has suffered little impact from the Hide/Seek controversy late last year.
• As mentioned, the same House of Representatives budget has a 16% cut for the NEA included for next year. But at least the House defeated an amendment that would have cut an additional $10.6 million.
• Scott Walters has been hard at work analyzing the proportion of the NEA’s recently-announced Our Town grants that went to small and rural communities. Bottom line: although there were some out-of-the-way areas that received grants (more than I personally expected to see, in fact), Scott shows both that the overall distribution is still weighted towards big cities even after population size and the number of applications from different-size communities are taken into account. A follow-up post offers some interpretations.

PUBLIC POLICY AND THE ARTS – STATE AND LOCAL

• Denver has consolidated its Office of Cultural Affairs within a larger city agency, and some people are not happy about it.

PUBLIC POLICY AND THE ARTS – INTERNATIONAL

• More on the Dutch arts cuts, which are apparently supported by 60% of the population despite the fact that the burden will fall mostly on local organizations.
• An expansion of the comprehensive Compendium of Cultural Policies and Trends in Europe will include countries in Asia. When is the USA going to get in on this?
• The invaluable Christopher Madden has penned a helpful two–part rundown of New Zealand’s cultural policies.

RESEARCH CORNER

• The NEA has released a new research note looking at the proportion of the national GDP accounted for by (mostly for-profit) cultural industries including performing arts, museums, movies, music, publishing, and, uh…sports.
• CEOs for Cities finds a clear connection between walkability and real estate values. It would be an interesting research project to disentangle the effects of walkability from arts amenities in examining their shared influence on housing prices.
• Missed this nugget before: is it true that we’ve lost 50% of the arts journalism jobs in America over the past 5-8 years? Dennis Scholl doesn’t cite a source, but if so, wow.
• Pew Research is out with a new study featuring some eye-popping stats about the disparity with which the recession affected different racial groups. The median wealth of whites dropped 16%, but 53% for blacks, 54% for Asians, and an astounding 66% for Hispanics. Hispanics in particular are concentrated in states where housing values dropped through the floor, meaning that much of the drop is from plummeting home equity (made worse by increasing consumer debt). Perhaps even more amazing is the disparity between whites, blacks and Hispanics in terms of current median wealth: the median white household had 19 times as much wealth as the median black household and 15 times the wealth of the median Hispanic household in 2009; by far the highest ratios recorded since 1984. And yes, Tommer, this is relevant to the arts. I’ve said it before and I’ll say it again: it should be no great mystery why arts institutions have a hard time reaching nonwhite audiences. Sure, it’s about the content to some extent. But really, it’s about the money. (More from the Center for Social Inclusion’s Maya Wiley.)
• Here’s some more information about the UK’s new national wellbeing measurement project. Household members will answer four questions (as part of a larger survey) about how satisfied they are with their lives generally, whether they find meaning in their activities, and how happy or anxious they felt yesterday. ReadWriteWeb’s Marshall Kirkpatrick has further commentary.

SOCIAL MEDIA AND DIALOGUE

• Barry’s Blog has another gigantic forum going on this month, this time focusing on arts education. The Hewlett Foundation’s Julie Fry is co-hosting.
• Ron Evans does us all a favor, poring through the tweets from the Americans for the Arts Convention and picking out his personal top 50. (Part I; Part II)
• Devon Smith, not surprisingly, is all over Google+.

MUSICAL CHAIRS

• Leah Krauss is the new dance program officer for the Mertz Gilmore Foundation, after having previously served as a consultant.

ETC.

• RIP Tactical Philanthropy Advisors. Long live Tactical Philanthropy!
• Boo to the vandals who robbed Silent Barn of $20,000 worth of gear earlier this month. And a reminder that if you have a performance space, you need insurance!

• Remember that debate a while back about whether video games qualified as art? Well, the NEA just declared it over by including support for “digital games” in its new Art and Media program.
• To Scott Walters’s everlasting chagrin, however, the NEA is still providing funding to organizations in New York, LA, and Chicago disproportionate to the population level. Scott has more here and here. I think this is helpful and important analysis; the one thing to keep in mind is that it focuses only on grants in one discipline of one round of one the NEA’s grant programs.
• The Library of Congress, in partnership with Sony Music, has unveiled a “National Jukebox” of early sound recordings – and it got a million page views in the first 48 hours.
• Kudos to the Future of Music Coalition for staying on top of the potential implications of the AT&T/T-Mobile merger for artists. And speaking of mergers, don’t miss FMC’s collaboration with Fractured Atlas looking back at the Live Nation/Ticketmaster merger, one year later.
• A window into Finnish cultural policy.
• So now Congressmen want to micromanage the Smithsonian’s gift shops?

COMINGS AND GOINGS

• Rahm Emanuel has announced that Michelle T. Boone, formerly of the Joyce Foundation, will serve as the next Commissioner of the Chicago Department of Cultural Affairs and Special Events.
• Marc Vogl is out as program officer for the William and Flora Hewlett Foundation, and in as executive director of the Bay Area Video Coalition.
• Heather Hitchens has quit as director of the New York State Council on the Arts to take the top job at American Theatre Wing, which presents the Tony Awards. NYSCA’s budget has declined from $55 million to $35 million over the past four years.
• Blueprint Research + Design, a major consultant to foundations, is being bought out by Arabella Philanthropic Investment Advisors. As part of the transaction, Blueprint founder Lucy Bernholz will become a half-time managing director of Arabella, spending more time on writing and in her partnership with Stanford’s Center for Philanthropy and Civil Society.
• The Sloan Foundation, whose main focus is science and technology, is now getting into arts funding.

MULTI-PART BLOGSTRAVAGANZAS

• ARTSBlog has a great-looking discussion on tap this week about new business models, the 501(c)(3) legal form, and potential alternatives. The lineup of bloggers is stellar, including Diane Ragsdale, Adam Huttler, and Janet Brown.
• The indefatigable Barry Hessenius was blogging up a storm earlier this month at the 98th Arizona Town Hall focusing on arts and culture. The convening, which included addresses from Marian Godfrey and the suddenly ubiquitous Rocco Landesman, comes at a poignant moment for the state, given recent cutbacks in public funding for the arts in Arizona. Here are Barry’s reports from Day 1, Day 2, Day 3, and the final wrap-up. There’s also a 268-page background report in case you’re looking for some further light reading.
• The staff at GiveWell, the charity rating agency, spent three months living and working in Mumbai last year. They have now posted thoughts and impressions from the visit, which provide an interesting check against their working assumptions going in. Here are the notes from staff members Holden Karnofsky, Elie Hassenfeld, and Natalie Stone, as well as thoughts on evaluating local charities in India.

RESEARCH CORNER

• The long-awaited Strategic National Arts Alumni Project (SNAAP) study has finally been published. The press release puts a positive spin on the findings, noting that 92% of alumni of arts training programs who responded to the survey have work (of any kind) and that two-thirds indicated that their first job after school was a close match for what they wanted. However, I’m more intrigued by the stat that only 57% of the over 13,500 respondents have ever been a professional artist, and only 41% currently are (keep in mind that most of the survey pool graduated within the past five years). We’ll be taking a closer look at this one.
• Meanwhile, last August, student loans surpassed credit cards as the largest source of debt in the US.
• The NEA has a new research note applying data from the American Time Use Survey to the performing arts industry.
• At ARTSBlog, Lynne Kingsley reports on the unequal distribution of arts education programs by discipline (a lot more visual art and music than theater or dance). And Tim Mikulski shares recommendations from the new report on arts education from the President’s Committee on the Arts and Humanities.
• The Alliance of Artist Communities has a new study on support for dance through artist residencies.
• Rosetta Thurman reports on a new study of perceptions of diversity in the nonprofit workplace.
• Americans for the Arts aren’t the only ones doing economic impact estimates. Google says that it benefits the American economy to the tune of $64 billion – in pure profits. Take that!

CONFERENCE CRANNY

• The Cultural Policy Center at the University of Chicago has been on fire lately, and held a great-looking Emerging Practice Seminar last month. Materials from the session (including lots of video!) are available here.
• Matthew Guerrieri provides a dispatch from the Rethink Music Conference in Boston.
• Beth Kanter reports from the Center for Effective Philanthropy Conference.
• Trista Harris has video from the “Philanthropy On Trial” event at the Council on Foundations Conference.

TRENDWATCHING

• Wow. For the first time since 1992, the rate of television ownership in American households has declined. To 97%.
• Crowdfunding isn’t just for donations and loans anymore; MicroVentures is now taking tiny equity investments for new startup companies.
• The Daily Beast on Amazon.com and the future of book critics.
• Composer Jeff Harrington offers a personal history of his reliance on free content distribution as a career strategy, and relates it to the issue of class in the arts.

ETC.

• Really fascinating indictment of today’s urban planning field and the (unintended) legacy of Jane Jacobs.
• Barry Hessenius interviews Kristen Madsen, Vice President of the GRAMMY and MusiCares Foundations.
• I have to say (and no, I am not being paid for this), I am so glad I signed up for the free trial of the New York Times’s digital subscription service sponsored by Lincoln when I had the chance, and I will certainly be renewing when it runs out. Without it, I’d be missing out on great reporting like this piece on a “pop-up” restaurant that served a six-course lunch to a dozen passengers on the L train, and this exposé of some shady-sounding business practices on the part of Columbia Artists Management promoting foreign orchestras who aren’t what they seem.

As you might have heard, public funding for the arts has been under pressure at the local and especially state levels ever since the recession hit a few years ago. This year, those pressures have spread to the federal government as well, and during the recent negotiations between Democrats and Republicans in Congress to agree on a budget for the remainder of the current fiscal year and avert a government shutdown, there was worry that the National Endowment for the Arts, the Arts in Education program at the US Department of Education, and the Corporation for Public Broadcasting would face some of the heaviest burden in the drive to cut $39 billion from the current year’s budget.

As it turned out, the arts did suffer as a result of the cuts – but all things considered, it could have been worse. According to Mike Boehm’s excellent roundup at the Los Angeles Times’s Culture Monster blog, the National Endowment for the Arts‘s budget was given a haircut of 7.5% from this year’s approved level of $167.5 million to $155 million. That’s the same amount as was funneled to the Endowment two years ago, excluding one-time stimulus funding, but still below the level from 1981. The National Endowment for the Humanities, whose budget has been informally tied to the NEA’s for a few years now, saw the same cut. A reduction at the Institute for Museum and Library Services was more serious, from $282.2 million to $237.9 million – or 15.7%. Meanwhile, the US DOE’s Arts in Education program, which had been zeroed out in the temporary continuing resolution passed earlier this year due to a misconception among lawmakers that it represented an earmark, was partially reinstated at a level of $25.5 million – 36% below the original appropriation of $40 million for this year.

Other arts-and-culture-related line items were affected as follows:

• The Corporation for Public Broadcasting, which provides partial funding to both NPR and PBS, saw its budget essentially unchanged at $445 million as a result of negotiations. This was a huge loss for conservatives, who had pushed a bill defunding CPB entirely through the House of Representatives earlier this year, only to see it go nowhere in the Senate. NPR had come under attack from the right wing last year after conservative commentator and Fox News contributor Juan Williams was fired for making remarks perceived as anti-Muslim.
• The Smithsonian, another cultural institution that had drawn negative attention from Republicans as a result of a controversial exhibit at the National Portrait Gallery, also did just fine, retaining level funding at $761 million.
• On the other hand, Washington arts groups are scrambling because of a steep, seemingly mean-spirited midyear cut to the National Capital Arts and Cultural Affairs grant program. The agency’s appropriation dropped from $9.5 million to $2.5 million, a 74% drop. The NCACA money had distributed large grants to a limited number of organizations, representing nearly a fifth of some grantees’ budgets, but only two-one-hundredths of one percent of the total savings achieved by the spending bill.
• Two more federal expenditures on the arts, State Department funding for cultural exchange programs and funding for the National Gallery of Art, took modest hits of 5.5% and 7.2% respectively. The John F. Kennedy Center for the Performing Arts saw its funding remain steady.

Meanwhile, at the state level, the last couple of months have been a mixed bag. Three state arts agencies that had been at risk of elimination or drastic cuts look to be in good shape after significant local advocacy efforts on their behalf. First up, the Kansas Senate voted to override Governor Sam Brownback’s executive order to eliminate the Kansas Arts Commission last month and reinstated funding for the agency at the current year’s levels. The House’s version of the budget still zeroes out funding, however, so arts advocates still have their work cut out for them in the Sunflower State. Second, both the Washington State House and Senate have passed budgets preserving $1.1 million in funding for the Washington State Arts Commission, which Governor Christine Gregoire had proposed to cut to $250,000 and eliminate as an independent agency. Finally, both legislative houses in the Palmetto State have proposed budgets calling for essentially level funding for the South Carolina Arts Commission, in defiance of Governor Nikki Haley’s attempt to eliminate the agency.

On the other hand, pressures continue elsewhere in the country. The news is not good for the Texas Commission on the Arts, which has been taking quite a bit of heat this year. After Governor Rick Perry suggested eliminating the arts council in his State of the State address (but not in his budget), the Texas House passed a budget that zeroes out funding for the TCA. It seems the best case scenario for the TCA now is the 38% cut that was proposed in the Senate. And now two new states are on the chopping block for significant arts cuts. Governor Scott Walker, in his spare time between presiding over the most explosive labor relations battle in the country, has proposed the elimination of the Wisconsin Arts Board as a separate agency and a 68% cut for arts funding by the state. And the New Hampshire House has eliminated support for the New Hampshire State Council on the Arts entirely in the budget it has sent to the Senate in that state. The NHSCA’s state appropriation had already been cut almost in half over the past two years.

You can keep up to date with the legislative appropriations process on a state-by-state basis via the Americans for the Arts State Arts Action Network website, which also has links to the arts advocacy organizations in each state.

“Paint the Street” event hosted by ArtsWave, image by Rrrrred

Everybody likes a Top 10 list, right? Especially the nerdy ones! So here’s my contribution: the second annual list of the top ten arts policy stories from the past year. You can check out the 2009 edition here.

10. Intrinsic Impact Research Marches On

WolfBrown’s groundbreaking work on measuring “intrinsic impact” (the intangible, hard-to-define effects that arts experiences have on patrons) got a major boost in 2010, with a large project to bring the research to 15 theater companies in five cities around the country. Led by Theatre Bay Area, the endgame of this project involves a web-based toolkit that will allow rank and file arts organizations to adopt some of these methods themselves, without having to pay WolfBrown a pretty penny first. Audience surveys are already underway, and the final report and toolkit will be up and running by the end of next year.

9. Fine Arts Fund Reinvents Itself

In January 2010, a longstanding Cincinnati-based fundraising and grantmaking organization known as the Fine Arts Fund announced the results of a very interesting research study examining the attitudes of members of the public toward shared responsibility for (and benefit from) the arts. The political science perspective used in the study may have been a first for the field of arts research, and the results suggested that the field would be better off if the economic-impact- and arts-education-focused arguments that have characterized arts advocacy efforts over the past couple of decades were discarded in favor of a focus on vibrant neighborhoods and connected, engaged communities instead. Not satisfied with simply releasing a study and going about its business as usual, Fine Arts Fund took the additional, and frankly astonishing, step of wholly transforming its name (to ArtsWave), branding identity, and grantmaking priorities to bring them in line with these findings. (Disclosure: Fractured Atlas will be working with ArtsWave in early 2011 as part of this last initiative, though it had no role in the research or the strategic planning process that led up to this point.) ArtsWave’s very public metamorphosis shows that even an 83-year-old institution can still be on the leading edge.

8. Dance Theatre Workshop and Bill T. Jones Merge (And They’re Pretty Much the Only Ones)

Two years after the stock market crash of 2008 led numerous observers to predict a rash of mergers and closures in the nonprofit sector, the greatest carnage in the ranks of arts organizations has come not from the market but from the IRS (see item #7). While virtually every arts nonprofit has suffered stress in the wake of the economic recession, most have survived intact, with only a few exceptions such as the Honolulu Symphony, NYS Arts, and the Baltimore Opera — and that last one might even have been a good thing. DTW’s romance with Bill T. Jones/Arnie Zane Dance Company is without doubt both the most high-profile and the most interesting arts merger to come out of the recession so far, as the choreographer-led company joins forces with a presenting/service organization to create New York Live Arts. In the process, Bill T. Jones gets a dedicated space, and DTW gets access to greater financial resources. It looks great on paper, but then mergers often do…

7. IRS Revokes Exemption for up to 300,000 Nonprofits

This story went virtually unreported this year, but those who continually bemoan the rise in the number of nonprofits in this country had a bone thrown their way this year. The Pension Protection Act of 2006 required that all nonprofits, even those with budgets of less than $25,000 per year who had previously never been asked to file annual returns, complete the 990-N “postcard” form requesting basic information like addresses and website URLs. Those who failed to file for three years in a row risked having their tax-exempt status revoked by the IRS. Well, it turns out that nearly half of the 714,000 organizations in this budget category in fact failed to file, and after a number of temporary delays and reprieves, an unknown number were thrown overboard (the IRS will publish a complete list early next year). While most of these were likely dead organizations (indeed, some of them may never have been alive in the first place), an examination by yours truly of some of the organizations “at risk” for revocation in the San Francisco Bay Area revealed that a disproportionate number were arts organizations, and their ranks included a few that were observably still active.

6. Net Neutrality Has a Bad Year

This is a story that is very much still being told. For several years now, technology activists have been raising awareness of the issue of “network neutrality,” warning that without legislation to codify existing practices, there will be nothing to prevent internet service providers in the future from selectively crippling or blocking entirely websites that compete with their own business interests. Many see net neutrality as particularly important to the arts, given their usual position outside of (or even in opposition to) the corporate sphere. With the 2008 election of President Obama, a supporter of net neutrality legislation, there was hope that such legislation might become a reality with the current Congress. But things got complicated in 2010. First, a federal court ruled earlier this year that the Federal Communications Commission did not have authority to tell Comcast that it had to treat bittorrent transmissions on its networks the same way as everything else. While not the final legal word, it provided a strong negotiating hand to anti-net-neutrality forces. Then, Google, one of net neutrality’s staunchest supporters in the corporate arena, got into negotiations with Verizon, one of its most trenchant opponents, and came out with a compromise that left most neutrality advocates unsatisfied. Finally, just last week, President Obama’s FCC announced new guidelines that hew fairly closely to the Google/Verizon compromise, prohibiting discrimination on “wired” services but leaving the increasingly important mobile universe a veritable Wild West. (This hasn’t stopped Verizon from making noises about a legal challenge right out of the gate.) We’ll have to stay tuned to see what happens next, but with a Republican House and little evidence of broad-based passion for net neutrality among the populace, the chances for a legislative solution (the surest means to the outcome that advocates desire) seem slim for the moment.

5. State Arts Agencies Continue to Struggle

After a disastrous 2009, this year saw little respite for beleaguered state arts agencies. Despite a few success stories, such as in Rhode Island where the governor tried to cut the budget of the state arts council by over 50% only to have the cuts fully restored by his own legislature, these remained the exception rather than the rule. States and territories suffering double-digit cuts in 2010 (i.e., to their FY 2011 appropriations) included Arizona (down another 28.9% after a brutal 54% cut last year), DC, Georgia (which nearly had its council eliminated but “escaped” with only a 66% massacre), Kansas, Louisiana (where Gov. Jindal finally succeeded in squeezing nearly half the money out of the coffers), Missouri (where state officials are raiding a fund intended to provide dedicated support to the arts and humanities), New Hampshire, New York (with the largest total dollar decrease of the year by far), Northern Marianas, Oklahoma, Pennsylvania (already reeling from an exhausting and only partially successful advocacy campaign last year to save the agency), South Carolina (another state council to overcome near death in 2010), Texas (28%), Virginia, and Washington. Only Arkansas, Florida, Indiana, South Dakota, and Wyoming saw increases of a comparable magnitude.

4. Culture Wars Simmer

Ever since the 2008 election, there have been signs that the American right wing might return to the hostile stance it had adopted toward public subsidy of the arts starting in the late 1980s and continuing through the 1990s. Some of the evidence is in item #5 above: massive cuts or threats to zero out funding to arts councils by Republican governors in “red” states like Arizona, Georgia, Louisiana, and South Carolina; last year’s brouhaha over former NEA Communications Director Yosi Sergant’s attempt to involve artists in President Obama’s United We Serve initiative comes to mind as well, as do Glenn Beck’s occasional editorials on artwork associated with perceived enemies. With the election of a majority of Republicans to the House of Representatives has come new pressures on the funding of NPR, which got into an unfortunate fight with conservatives over the firing of right-wing commentator Juan Williams a few months ago. The most dramatic confrontation yet took place just last month, when a conservative news service publicized a gay-themed exhibition at the National Portrait Gallery that included a video by deceased artist and AIDS victim David Wojnarowicz with images of a crucifix covered with ants. After the controversy found its way to the ranks of Republican House leadership, the director of the Smithsonian ordered the video removed, even though the footage in question occupies only 11 seconds of the four-minute video, which itself was not a centerpiece of the exhibition. The action, unlike previous skirmishes, has produced a gigantic backlash in the visual arts community, with dozens of museums and other institutions around the world showing Wojnarowicz’s work in protest. The Andy Warhol Foundation, a major supporter of the exhibition, has also threatened to deny future funding requests from the Smithsonian. The situation seems to be under control for the moment, but don’t be surprised if things start heating up again in 2011.

3. The UK Tries American-Style Arts Funding

Feeling pressure from the economic recession, the new conservative government in England imposed cuts of 100 million pounds on the primary grantmaking agency for high-profile arts organizations on the island. The UK’s arts system has been described as a “hybrid” between the near-total private-sector dominance of American arts funding and the near-total government support seen throughout continental Europe. These cuts, totaling more than 22% of Arts Council England’s appropriation, represent a clear move toward the American side of the equation, especially when coupled with ACE’s decision to require prospective grantees, for the first time, to submit applications for funding (previously they had simply been selected by the agency though a noncompetitive process). The development is significant not only for its implications for England’s arts scene, but also as a potential bellwether for the rest of Europe, where politicians have been making noises for years about cutting back historically generous government support of artists and arts organizations and moving in the direction of greater privatization.

2. The NEA Charts a New Path

We knew that when Rocco Landesman arrived last year to take over the reins of the National Endowment for the Arts that, whatever the results, they would certainly be interesting. On that score, the agency has delivered in 2010. “Creative placemaking,” the role of the arts in revitalizing local communities economically and otherwise, is emerging as Rocco’s signature issue, with a raft of urban-focused Mayors’ Institute on City Design grants given out in 2010 and more coming in 2011 under the rubric of a new program called Our Town. The NEA has pursued a public engagement strategy beyond any in the agency’s previous history, webcasting the meetings of the National Council on the Arts (the NEA’s equivalent of a board), accepting questions via Twitter during panel discussions, and inviting a huge bevy of service organizations to take in the announcement of its strategic plan for 2012-16. It’s gone on a hiring spree, bringing marquee names like the Commonwealth of Massachusetts’s Jason Schupbach into the fold. A revitalized research department is pumping out new publications at a rapid rate, incorporating new media elements into some of them, and embracing its role as a convener, having brought together an A-list group of practitioners to consider how to measure “livability” this summer. What may turn out to be Rocco’s most far-reaching project, however, is his efforts to make inroads with heads of other federal agencies around ways in which the arts intersect with their work. Given that the budgets of departments like Agriculture, Housing and Urban Development, and Transportation dwarf the NEA’s and that the Endowment has continually been vulnerable to attacks on culture-war battlegrounds, this attempt to break down silos and “embed” the arts in other arms of the federal government is one of the smartest gambits we’ve seen in a long time.

1. Patient Protection and Affordable Care Act Passes

For years, the high cost of health insurance, especially for freelancers in our employer-centric system, has been identified by researchers and advocates as one of the biggest impediments to a thriving artist workforce. In 2010, after decades of failed attempts, Congress finally passed a comprehensive health insurance reform bill designed to counter some of the worst excesses of insurers while sharply reducing the ranks of the uninsured. To do this, everyone will be required to purchase insurance, even healthy individuals (although this mandate is currently being challenged in the courts). Fractured Atlas has a primer on the implications of the health care reform act for artists here; the short version is that by 2014, insurance companies won’t be allowed to discriminate or charge you a higher rate based on your gender or health status, take away your coverage after you get sick, deny you coverage based on a pre-existing condition, or set annual or lifetime limits on benefits. Although you will be required to buy insurance, if your income is in the low 40s or below, you’ll qualify for government assistance in paying for it. And if you’re a small business (like a theater company or gallery), you’ll likely be eligible for tax credits for giving your employees health insurance. While the full impact of the law won’t be known for years, if not decades, its provisions should disproportionately benefit artists and faciliate a significant improvement over the status quo.

Honorable mention:

• Low Power FM Radio bill passes
• Americans for the Arts introduces the National Arts Index

And as a bonus, here are my picks for the top five new (in 2010) arts blogs:

5. NYFA Blog (Michael Royce)
4. ArtsAppeal (David Zoltan)
3. 2am Theatre (various)
2. Your Town Performs (Craige Hoover)
1. Jumper (Diane Ragsdale)

(Note: had Devon Smith started 24 Usable Hours a couple of months later than she did, it surely would have made this list.)