MCA End of Session Report May 19, 2010

Nearly 1,800 bills and resolutions were introduced during the 2010 legislative session, by the 95th General Assembly. Only 32 Senate bills and 74 House bills were Truly Agreed to and Finally passed and sent to the Governor for his signature. Many legislators fault the tight fiscal crisis for passing the fewest number of bills since 2000.

Several priorities discussed early in the session by Republican Leadership were among the legislation passed including: ethics reform, insurance coverage for autism, stronger regulations for adult businesses, expanded informed consent requirements for abortion, the Health Care Freedom Act, changes to some of the state's college scholarship programs and tougher DWI laws.

BUDGET

Missouri Arts Council

This session for Missouri Citizens for the Arts was one of fighting for survival throughout the budget process. Due to falling revenues, the legislature was forced to cut $500 million from the proposed state budget for Fiscal Year 2011. This is on top of Governor Nixon's drastic withholds for the current fiscal year.

The Governor and the House of Representatives recommended an appropriation of $3 million from the non-resident athletes and entertainers tax to go to the Missouri Arts Council Trust Fund. They also recommended $500,000 for each of the other four Cultural Partners: Missouri State Library Networking Fund, Missouri Humanities Council, Missouri Public Broadcasting Corporation Special Fund, and the Missouri Historic Preservation Revolving Fund.

However, when the Senate Appropriations Committee was forced to cut the additional $500 million, nothing was sacred. The committee cut everyone to zero. That forced the issues into Conference Committee.

During Conference, the Chairman of the Senate Committee - Senator Rob Mayer, asked the Governor's budget person how much funding was in the Cultural Trust Fund. When she replied that there is nearly $17 million in the fund, the Conference Committee voted to zero out any new General Revenue.

The Committee did approve full requested spending authority for MAC of $9,950,000, which can be used to meet program requests for July 1, 2010 - June 30, 2011.

A minimum of $3 million transferred to the MAC Trust Fund from the non-resident athletes and entertainers tax is required annually in order to fulfill the contract amendments between Capital Incentive Program participants and the MAC Trust Board, which triggers a 5% payout, based on the $12 million matching set aside amount in the Trust, totaling a payout of $600,000 annually to the 26 CIP participants. Unfortunately, this contract will not be met this year.

Fortunately, Senate Bill 1000, which would sweep numerous state funds, died in the Senate Committee. This would be tragic to have zero new general revenue appropriated and zero funds in the Cultural Trust Fund which we have to rely on for grants.
Missouri Fine Arts Academy

It was another tough year for the Academy line item. The Governor, the Department of Elementary and Secondary Education, and the House and Senate all zeroed out the line item for the Missouri Fine Arts Academy (and the Missouri Scholars Academy). Last year, the academies were cut from $720,000 to $259,000. This year, as stated before, nothing was sacred.

OTHER LEGISLATION

Show-Me Fine Arts Initiative

Missouri Citizens for the Arts has been working closely with the Missouri Alliance for Arts Education (MAAE), to support passage of Senate Bill 734, sponsored by Senator David Pearce, R-Warrensburg, and House Bill 1274, sponsored by Rep. Bob Dixon, R-Springfield. The Division of School Improvement within the Department of Elementary and Secondary Education may ensure that each Regional Professional Development Center (RPDC) provide professional development educational assistance for fine arts.

Currently, fine arts teachers are experiencing fewer opportunities for professional development in their specialty area. There are also very few opportunities for the arts to be integrated into the school curriculum.

SB734 and HB1274, would have provided a fine arts education consultant in each RPDC across the state "to strengthen fine arts programs and to assist schools in implementing arts integration lessons and strategies in non-arts classes in Missouri public schools".

The legislation made it through the Senate and through the House Committee for Education. Unfortunately, SB734 didn't make it through the House Rules Committee on Tuesday, May 11, to go to the House floor for final debate. The session ended at 6:00 p.m. on Friday, May 14, 2010.

Senator Pearce amended the language on to the omnibus education bill (HB1543) when it went to Senate Education Committee; however, was forced to take the language out of the bill to get it passed in the Senate.
Tax Credit Reform

House Republicans refused to consider reforming the state tax credit programs. The Governor and six members of the Senate were pushing for restrictions on state tax credits and incentives, wanting them to go through the state appropriations process. The state has more than 60 tax credits that have grown to more than $600 million annually.

Ethics Reform

In the final days of session, a compromise was reached to pass a much weaker version of ethics reform. Senate Bill 844, sponsored by Senate President Pro Tem Charlie Shields, allows the Missouri Ethics Commission to investigate ethics violations without an outside complaint being filed and makes it a crime to obstruct an ethics investigation. It also requires contributions of more than $500 to incumbent officials and their challengers during legislative session be electronically reported within 48 hours; makes clear that no statewide elected official or lawmaker may offer employment where compensation is above actual expenses to another statewide elected official or lawmaker in exchange for his or her official vote; and limits the transferring of contributions among most committees. It does not include campaign donation caps.

A provision failed that would have prohibited advocates from speaking to any legislator, other than their own state representative and state senator, without registering as a lobbyist with the State Ethics Commission.

There were many issues that could not be ironed out in the last hours of the session including a jobs bill or tax credit reform and several moneysaving bills needed to help with Missouri's budget and the lack of revenues, which will guarantee the need for more withholdings and spending cuts from the Governor. Among those money savings bills was changing the states employees retirement system; eliminating two state holidays, Lincoln's birthday (Feb. 12) and Truman's birthday (May 7); and cut backs on overtime pay at 24-hour state institutions.

Proposals that would have allowed a "no-excuses needed" early voting period and requirement for a government-issued photo ID to vote, along with legislation to make it illegal for drivers of all ages to send text messages while driving all failed to pass the legislature this year.

Thanks to all who made calls and wrote letters and visited the Capitol to advocate on behalf of the Arts.

April 22, 2010 Legislative Report

The House and Senate Conference Committee discussed the differences between the two chambers on the funding for the Missouri Arts Council. The House recommended $3 million, the Senate zero. The vote was for Senate - zero.

The Senate Chairman announced the Missouri Arts Council could use their spending authority to draw money from the Missouri Cultural Trust Fund, in order to support arts programs for FY2011. He also asked Governor Nixon's Director of Budget & Planning what the Governor's current position was, and she stated "that as much as the Governor supported the arts, they would have to rely on the Trust for funding next year."

Rep. Rachel Bringer spoke up in favor of the arts and how important that funding is to Hannibal, Missouri, and the state. Senator Joan Bray asked how much was in MAC's spending authority (which is nearly $10 million).

Then the committee took the Senate position and cut the budget to zero. They cut all Cultural Partners to zero as well. Unfortunately, Public Broadcasting, Historic Preservation and Libraries do not have a fund to fall back on.

MCA is still fighting to preserve all funds in the Cultural Trust Fund which could still be swept at any time, but at least time is on our side right now. Session adjourns May 14.

Thank you to all who made calls and sent letters. Kyna Iman, MCA's Governmental Consultant, spoke with Chairman Mayer and Senator Schaefer following the vote, and they really hated to have to make the cut, but need the money to reach the $500 million cut overall. They committed to help restore the funding in better financial times.

Governor Nixon announced another $43 million of withholdings for the remainder of THIS fiscal year. We were not on that list.

April 20, 2010 Legislative Report

Conference Committee will begin on Thursday, April 22nd at 8:30 a.m.

Conference Committee members were announced this afternoon. They are: Senators Mayer, Schaeffer, Rupp, Bray and Green and Representatives Icet, Stream, Silvey, Komo and Bringer.

Please contact these elected officials to ask for their support of funding for the Missouri Arts Council and our Cultural Partners!

Sen. Rob Mayer
573-751-3859
Rob.Mayer@senate.mo.gov

Sen. Kurt Schaefer
573-751-3931
Kurt.Schaefer@senate.mo.gov

Sen. Scott Rupp
573-751-1282
Scott.Rupp@senate.mo.gov

Sen. Joan Bray
573-751-2514
JBray@senate.mo.gov

Sen. Tim Green
573-751-2420
timothy_green@senate.mo.gov

Rep. Allen Icet
573-751-1247
Allen.Icet@house.mo.gov

Rep. Rick Stream
573-751-4069
Rick.Stream@house.mo.gov

Rep. Ryan Silvey
573-751-5282
Ryan.Silvey@house.mo.gov

Rep. Sam Komo
573-751-6625
Sam.Komo@house.mo.gov

Rep. Rachel Bringer
573-751-9818
Rachel.Bringer@house.mo.gov

April 16, 2010 Legislative Report

MAC FUNDING
The Senate Appropriations Committee and full Senate zeroed out the funding from non-resident professional athletes and entertainers to the Missouri Arts Council and the four Cultural Partners:

· Missouri State Library Networking Fund,
· Missouri Humanities Council,
· Missouri Public Broadcasting Corporation Special Fund, and the
· Missouri Historic Preservation Revolving Fund.

The House appropriated $3 million for MAC and $500,000 for each of the partners.

This funding will now go to Conference Committee to be agreed upon for FY2011.

Below, please find advocacy talking points which further detail why MAC needs at least $3 million in new money in order to honor the Capital Incentive Program.

The House and the Senate did appropriate over $9 million for spending authority to allow MAC to meet grant obligations out of the Cultural Trust Fund.

ACADEMY FUNDING
Senator Kurt Schaefer made an attempt to restore the $259,000 to fund the Missouri Scholars and the Missouri Fine Arts Academy for FY2011. After much debate, the committee voted against the funding. Commissioner Chris NiCastro spoke against taking funding from the MSIP accreditation standards line item and School Improvement Training to fund the Academies. Since the House and the Senate are both at zero, there will be no conference and no funding next year for the Academies.

During full Senate debate on Wednesday, the only amendment to HB2002, was to add the $37 million for Career Ladder back in to the bill. Senator Jason Crowell and Senator Brad Lager were filibustering the bill until Senator Mayer agreed to restore the funding. The item will still have to go to conference because the House funded Career Ladder out of General Revenue and the Senate funded it out of Federal Stimulus funds.

Because state revenues are more than 13 percent below last year's income at this same time, the Senate's version of the budget bills reduced Gov. Jay Nixon's January proposal by about $500 million.

CONFERENCE COMMITTEE
All the budget bills now go to Conference to work out the differences between the House and the Senate. The conference committee has not been appointed at this time but it looks like the legislators who will be on conference committee are:

House Budget Committee - Chairman Rep. Allen Icet, R-Wildwood/St. Louis County, Vice-Chairman Rep. Rick Stream, R-Kirkwood, Ranking Minority Leader Rep. Chris Kelly, D-Columbia and two other members (one Republican/one Democrat)

Senate Appropriations Committee - Chairman Senator Rob Mayer, R-Dexter, Vice Chairman Senator Kurt Schaefer, R-Columbia, Ranking Minority Member Senator Joan Bray, D-St. Louis and two other members (one Republican/one Democrat)

In these challenging times, MCA needs your advocacy support NOW more than ever to make sure that the arts remain in the budget this session.

Below, please find a sample letter that you can personalize to get you started:

Dear __________,

In conference committee, please support funding for the Missouri Arts Council in House Bill 2007.

Funding for MAC has allowed _______ organization_________ the opportunity to do XXXXXXX in your community.

(Explain program and where you have spent the funding, or how you utilized the CIP funding for your endowment, etc.)

Please appropriate $3 million for the Missouri Cultural Trust Fund for FY2011 to sustain our programs.

Respectfully,
YOUR NAME

ADVOCACY TALKING POINTS
· A minimum of $3 million transferred to the MAC Trust Fund from the state's revenue from the Athletes' and Entertainers' Income Tax is required annually in order to fulfill the contract amendments between Capital Incentive Program participants and the MAC Trust Board, which triggers a 5% pay out, based on the $12 million matching set aside amount in the Trust, totaling a payout of $600,000 to the 26 CIP participants.

· The Missouri Department of Revenue's collection of income tax from Non-resident Professional Athletes and Entertainers for FY2009 totaled $29.5 million. Collections for FY2010, through March 31, 2010, amount to $24.6 million. By statute (RSMo143.183) "60% of the annual estimate of taxes generated from the nonresident entertainer and professional athletic team income tax shall be allocated annually to the Missouri arts council trust fund, and shall be transferred from the general revenue fund to the Missouri arts council trust fund...".

· In FY2009 the Missouri Arts Council awarded $10.2 million to 596 organizations in 132 Missouri communities. MAC's funding was provided to every Missouri Senate district and 79% of the House districts. MAC grantees (nonprofit arts and cultural organizations) produced over 11,900 arts events attended by 7.3 million people. MAC grantees provided 6,404 full and part-time jobs and hired over 47,900 artists. MAC grantees paid $121 million in salaries, which generated about $3.6 million in state tax revenues. MAC grantees generated $154 million in revenue.

· The Nonprofit Arts Industry in Missouri generates $1.1 billion in statewide economic activity. This spending -- $510.2 million by nonprofit organizations and an additional $562.5 million in event-related spending by their audiences - supports 14,893 full-time equivalent jobs, generates $742.9 million in household income to local residents, and delivers $110.6 million in local and state government revenue. (Information from a survey produced by Americans for the Arts. See full report online at https://www.missouriartscouncil.org/page.a spx?NavID=2)

· Arts Education makes a difference in Missouri schools. Nearly all students in MO public schools have opportunities to participate in fine arts education. The level of student participation in fine arts classes is significantly related to student disciplinary rates. The higher the number of fine arts courses and student enrollment in these courses, the lower the rate of infractions that require student removal from the classroom. Attendance rates are higher for districts with higher levels of student enrollment in the arts. Higher high school graduation rates correlate with student participation in arts education, as well as higher standardized test scores in Math and Communication Arts. (Information from a study provided by the Missouri Alliance for Arts Education. See full report online at http://www.moaae.org/Study-of-State- Arts-Education/text/Arts-Education-Makes-A-Difference- In-Missouri-Schools.pdf)

Conference Committee members (five from the House and five from the Senate) will be forwarded as they become available. They will most likely be the Chairmen from both the House and Senate Appropriations Committees, the Vice Chairmen, and the ranking Minority Members and others.

The conference committee will most likely begin mark-up the week of April 19.

Capitol Switchboard is 573-751-2000.

April 6, 2010 Legislative Report

MAC BUDGET
The Senate Appropriations Committee did preliminary mark-up for the budget last week. The Chairman Rob Mayer asked the line item for the Missouri Arts Council and the four Cultural Partners - public broadcasting, humanities, historic preservation, and libraries be cut to zero and closed for further debate.

This appropriation will next be discussed on the Senate floor by the entire Senate, probably the week of April 12.

Unless funding is added on the Senate floor by amendment, the Conference Committee will be conferencing on $3 million funding for MAC from the House and zero funding from the Senate.

Below, please find an article published in the St. Louis Post-Dispatch regarding this news.

http://interact.stltoday.com/blogzone/political-fix/political-fix/2010/04/senate-panel-swings-budget-ax-hits-arts-funding/

Please contact your Senator to let them know how the state budget affects your organization.

Capitol Switchboard is 573-751-2000.

ACADEMY BUDGET - ACTION NEEDED NOW!
The Senate Appropriations Committee started to cut the Missouri Fine Arts Academy to zero, however, Senator Kurt Schaefer asked to leave the line item open for further discussion. The Committee will begin a second-round of discussion on those items that were left open on Tuesday, April 6, at 9:00 a.m.

The House cut the Academies to zero, so we have to have money added to the Academy line item to be able to conference on it.

Please contact Senators on the Senate Appropriations Committee and urge their support for funding for the MFAA for FY2011. Thank Senator Schaefer for advocating for restored funding for the academies.

A list of conference committee members (five from the House and five from the Senate) will be forwarded as they become available. They will most likely be the Chairmen from both Committees - Rep. Allen Icet & Sen. Rob Mayer, the Vice Chairmen - Rep. Rick Stream & Sen. Kurt Schaefer, the ranking Minority members - Rep. Chris Kelly or Rep. Sara Lampe and Senator Joan Bray.

The conferece committee will most likely begin mark-up the week of April 19.

Senate Appropriation Committee members are:

Rob Mayer, 25th, Chairman
Kurt Schaefer, 19th, Vice-Chairman
Tom Dempsey, 23rd
Jim Lembke, 1st
David Pearce, 31st
Chuck Purgason, 33rd
Scott Rupp, 2nd
Frank Barnitz, 16th
Joan Bray, 24th
Tim Green, 13th
Yvonne Wilson, 9th