On Thursday, President Obama announced his intention to nominate Jane Chu for the position of Chairman of the National Endowment for the Arts. Chu, the president and CEO of the Kauffman Center for the Performing Arts in Kansas City, MO, brings big-institution arts industry experience and a middle-America background to the job. If confirmed, she will become the first Asian American permanent chair of the NEA, although Joan Shigekawa has served that role in an interim capacity for the past year and a half. Reaction from the field has been one of pleasant surprise, but she’s getting rave reviews from back home.

Meanwhile, two of Chu’s predecessors warn that her task will be all about money, money, money. Earlier, in yet another down-to-the-wire process, the United States Congress authorized a spending bill in January covering the rest of the current fiscal year, which ends September 30, 2014. The NEA and other federal cultural agencies were essentially level-funded compared to last year’s appropriations, which is effectively a (small) raise from the amounts each agency had to work with after the so-called sequester kicked in last year. However, the NEA’s budget is still down from its recent peak of $167.5 million from fiscal year 2010, and far below its inflation-adjusted peak from the Carter years.

The budget friction is affecting the arts in other ways, too: for example, the Department of Transportation has failed to meet a deadline to require airlines to accommodate musicians’ instruments on flights because it says Congress didn’t provide it with enough funding to hire the people necessary to write the guidelines. A group of Congressional representatives led by Jim Cooper (D-TN), for its part, is calling BS and asking the DOT to get its act together. Meanwhile, the European Union is moving toward a uniform policy for instruments brought on airplanes.

It’s been a rough 2014 so far for net neutrality. Last month’s ruling by the U.S. Court of Appeals means that cable and telephone companies could privilege certain kinds of content, which could endanger the wealth of artistic innovation on the web. AT&T, for its part, says nothing is about to change – possibly because the decision leaves open other means of regulation that could be worse for internet service providers. In fact, Wired seems to think that the court order has given the FCC carte blanche to regulate the entire internet. Yet if you thought the invisible hand of the market would help secure net neutrality on its own, you might be concerned that America’s largest cable company is buying its second-largest. Time Warner Cable’s proposed merger with Comcast seems to bode ill for open Internet advocates, given that Comcast already has a monthly cap on bandwidth in place; if things continue down this road, a former FCC Commissioner warns of scenarios like cable companies bundling internet content the way that cable channels currently are, and censoring stories about their own terrible customer service. All eyes are on the FCC as it considers its next steps.

STATE AND LOCAL

While Los Angeles awaits the appointment of a head of its department of cultural affairs, new mayor Eric Garcetti met with arts leaders to drop hints on “a more cohesive arts policy” — which apparently does not include any increase in city funding. Meanwhile, alleging mismanagement, Fairfax County in Northern Virginia will pay $30 million to take control of the Lorton Arts Center and avoid foreclosure.

INTERNATIONAL

The UK’s Building a Creative Nation has been launched to create 50,000 creative sector jobs for young people ages 16 to 24 by 2016. Part of the initiative aims to combat unpaid internships in the arts industry by subsidizing 6,500 training positions. Deputy prime minister Nick Clegg claims the program is “paving the way for a new wave of young British talent,” who will contribute “billions to the economy” in the fastest-growing employment sector of the British economy in 2011-2012. Nearly 1.7 billion Britons (5.6% of the workforce) are employed in the creative industries, more than half of them in squarely cultural areas like the performing and visual arts, film, photography, and publishing.

Not all is rosy in the UK, though: Parliament is investigating the fairness of grants made by Arts Council England, which a report found gives five times as much per capita to London organizations vs. others. Philanthropic dollars are similarly concentrated. (By way of comparison, 82% of private UK arts giving went to London; in the US, according to the Foundation Center’s database, 20% of major grants go to New York State.) That might be part of the reason that space for art in London is now at such a premium. Meanwhile, the Council will require new grantees to capture, report, and share information about audience size and composition and has called on the BBC to collaborate with arts organizations.

Elsewhere in the British Isles, Creative Scotland has announced a new 10-year strategic plan; Wales’s capital city is trying to transfer responsibility for two arts venues to the private sector; Newcastle hasn’t been able to raise any money for a matching fund campaign aimed at private donors; and Irish arts funding is down 7% after having been cut for the sixth consecutive year.

In Spain, four years of funding cuts to the cultural infrastructure by that country’s right-wing and debt-ridden government have increasingly spurred protest, and now the Spanish film community is starting to fight back, claiming political conspiracy. Even Pedro Admodóvar is speaking out against what he calls Spain’s “awful cultural policy.” Elsewhere in Europe, Iceland’s state broadcaster has cut almost half its music staff. But in a bit of good news, regulators in France have decided to reverse a decision that would have raised the import tax on artworks from 7% to 10%, instead reducing it to 5.5%.

The United States Senate is considering an update to the Elementary and Secondary Education Act (ESEA), also known as No Child Left Behind. The bill contains several pro-arts revisions, but as Narric Rome explains, political constraints probably mean an agreement is still far off. The Senate did, however, add the Arts Require Timely Service (ARTS) Act to the comprehensive immigration reform bill that was passed in June; it remains to be seen whether this legislation will get out of the House intact. You can read more about the ARTS Act here.

Oh, and did you know that U.S. arts “policy” includes something like $100,000 a year to commission official government portraits of federal agency directors and Cabinet secretaries? Representative Bill Cassidy (R-LA) is having none of it, though – he’s introduced a bill to eliminate this line item from the federal budget, called (of course) the EGO Act.

STATE/LOCAL

Last time we reported on an ambitious bid to raise the California Arts Council’s annual appropriation to $75 million a year, a paradigm-shifting increase. As so often happens with these things, though, the proposal is dead on arrival, and the Council’s budget will in fact decline by 7.6% under the budget passed for next year. Advocates hope to revive the proposal next year.

Oregon arts advocates have received lots of praise for the $35-per-person tax that has led to new funding for arts education and grantmaking in Portland this year. But things are hardly going off without a hitch, as several changes have been made to the tax since it was passed that all have the effect of reducing revenue and/or costing the city money. New blogosphere entrant Joanna Woronkowicz takes a dim view of the tax as a model for arts policy.

INTERNATIONAL

This continues to be an intense year for the arts in the UK. Arts Council England is looking at a further 5% cut after numerous sacrifices small and large the last few years. This amid rumors that the Department of Media, Culture and Sport, under which ACE is housed, might be closed. And after much back and forth, the city of Westminster is proceeding with eliminating its arts funding entirely, a loss of £350,000 (about $525,000). But on the other hand, the Office of National Statistics has elected to include arts participation as a measure of national well-being.

Elsewhere in Europe, Spain is considering reducing its 21% VAT (sales tax) rate on cultural goods and services, potentially to 13%. Arts organizations in Spain had been protesting the hike in taxes, which had previously been only 8%, with such measures as selling carrots to audiences instead of tickets. Finally, the French government appears to be softening its hardline stance on digital music piracy.

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.

The internet just got a little less friendly for pirates. A new “Copyright Alert” system, the product of a voluntary agreement between internet service providers such as Comcast and AT&T, Hollywood movie studios, and major record labels, will inconvenience persistent illicit downloaders first with warnings and then stronger measures such as slowed service. The Future of Music Coalition (consistently the smartest folks in the room when it comes to the arts and copyright issues) is wary but hopeful.

STATE AND LOCAL

Governor Rick Snyder of Michigan is pushing to cut in half the state’s generous subsidy to film producers, which currently gives up to $50 million a year in credits for qualifying expenses to firms that set up shop in the state. Michigan had one of the most aggressive film incentive programs in the country just a few years ago, which attracted such productions as “Gran Torino” and “Up in the Air,” but Snyder has since put on the brakes (even as he supported a rebound last year in the state’s arts council budget).

INTERNATIONAL

My goodness, the stream of news flowing out of the United Kingdom just gets fatter and faster. First, the embattled Arts Council England has a new head in Peter Bazalgette, a former TV executive and chairman of the English National Opera. Local governments continue to cut arts budgets in the face of financial pressures: Newcastle went through with eliminating its £2.5 million culture budget despite intervention from national Labour party leaders, and is attempting to move towards a privatized model instead; Westminster (part of London) has confirmed that it’s cutting its annual £350,000 subsidy out of the picture; and Scotland’s Moray is ditching its more modest £94,000 culture budget. At least Belfast is increasing its local arts support by 27%, to £1.4 million. A survey of UK theater companies suggests that many are cutting back on productions, commissions, and cast sizes due to the cuts, though small sample size should be taken into consideration. In this environment of austerity it’s a great time for university tuition fees to be tripling for artists, but the British government is hoping that the Creative Employment Programme, a rapidly expanding paid apprenticeship system in the creative industries for youths aged 16 to 24, will offer a smooth pipeline for new grads. (Joe Patti has more.)

The combination of the eurozone crisis and austerity policies has decimated Spain’s system of public support for the arts, with funding dropping as much as half since 2009 according to a recent report. The litany of second-order impacts cited in that article includes 100 employees laid off at a single opera house in Barcelona, a cancelled Lucian Freud show at the Museo Nacionale del Prado in Madrid, and a cancelled three-year collaboration between Madrid’s Teatro Real and the Berlin Philharmonic. The Orquestra Girona is down to one concert a year. But depending on who you talk to, there are opportunities lying in wait amidst the upheaval.

Australia’s government is out with a new cultural policy, and Ben Eltham (author of A Cultural Policy Blog) declares it a hit for artists. (Annoying registration required, but it’s free.) The policy commits $236 million in Aussie dollars in mostly new money over five years to various federal arts and culture agencies and programs. The government has also chosen to adopt many of the recommendations made in an independent review of the Australia Council last year, including a controversial proposal to do away with the Council’s discipline-based system of funding. (NEA, take note!) The package even includes $4 million for a “data collection program to inform research for the sector and to  track public value of investment.” More here. And they’re considering a media reform package while they’re at it Down Under.

In other news, Russia may adopt a restrictive rule shutting out small concert promoters, China is considering royalty rights (droit de suite) for visual artists, and UNESCO has pledged to raise an $11 million fund to restore the destruction in Timbuktu, Mali, but at least one observer is skeptical that the money will be used wisely.