Executive Director’s Update

State Economic News

The national recession and the affect of ACT 388 on South Carolina’s tax structure are having the greatest impact on the budget for fiscal year 2009-2010.  Act 388 traded homeowner property taxes for a 1-cent sales tax.  The unstable economic environment has caused less spending and therefore less state revenue.  The Office of State Budget reports a $569.7 million shortfall for the upcoming budget year. Since July, the state has cut a sixth of its budget that is now around $6.1 billion.  All state agencies received a series of mid-year funding cuts for the current fiscal year.  They have also been asked to plan on a reduction as their starting point for their FY 2009-2010 budget.

The Governor’s Budget

The General Assembly is now in session and the budget process has begun for FY 2009-2010.  Governor Mark Sanford issued his Executive Budget proposals in early January, following a series of budget hearings.   The Governor, following the advice of his “Results Team”, believes in a “Budgeting for Results Process”, which instead of “funding agencies”,  “purchases” activities and outcomes.  His $5.8 billion budget for 2009-2010, proposes spending $800 million less than his FY 2008-2009 budget bill.    

The State Budget Process

Following the introduction of the Governor’s Executive Budget in early January, the S.C. House begins working on its version of the state budget.  The process begins with agency budget presentations to members of the various House Ways and Means (HWM) subcommittees.  The recommendations of those subcommittees move to the full HWM Committee – the budget writing committee.   The HWM Committee then makes its funding recommendations in the form of a budget that then moves to the full House for consideration and a floor vote by all House members.  After the House’s version of the budget has passed, it moves to the Senate, where the budget process is much the same as the House. 

Subcommittees of the Senate Finance Committee will listen to budget presentations by the various state agencies.  They will decide on a funding level for each, and their recommendations will be sent to the full Senate Finance Committee. The Senate Finance Committee’s version of the budget will then move to the Senate floor for a vote by all Senators.

Since it is highly unlikely that the House and Senate versions of the budget would be in agreement, a Conference Committee is formed to broker the differences.  The Conference Committee is made up of 3 House members and three Senators, usually including the chairs of both the HWM and the Senate Finance Committee.  The full House and Senate vote on the outcome, and then the budget moves to the Governor’s office for his signature. 

The Governor will accept the budget or not, but more than likely, he will use his line item veto power.  These vetoes return to the House and Senate for a vote to accept (sustain) the vetoes or to “override” them (rejecting the Governor’s veto).  The goal is to conclude the budget process by the end of the session.  However, as in year’s past, the General Assembly has been called back to Columbia to finish its budget work, well in to the month of June.

Advocates can stay abreast of the budget process as it impacts funding for the arts and arts education through advocacy alerts and updates emailed by the South Carolina Arts Alliance.  Arts supporters are encouraged to stay actively involved and participate in the process.

The Governor’s Budget Regarding the State Arts Commission

Each year, Governor Sanford has proposed significant cuts to the South Carolina Arts Commission’s budget.  This year is no different.  He proposed a cut of approximately 25% and reduces funding for what his budget categorizes as “artist development funding”, critical cuts to the category of “community arts development”, and additional cuts for “pass through contributions” to Spoleto Festival USA and Penn Center.  As with many state agencies, other cuts have been proposed in the area of administration.

As in the past, the Governor also suggests creating a Department of Literary and Cultural Resources (DLCR) to include the State Library, State Museum, the Arts Commission and the Department of Archives and History.  The DLCR and a DCLR Board would be responsible for appointing the director of the agency.  The DLCR Board would have equal representation from each of the four arts and cultural agencies.  He estimates his proposed restructuring savings of the Division of Arts (currently the Arts Commission) would be $202,893.  He also proposed combining the Arts Commission and the State Museum into one facility.

The South Carolina Arts Commission – Current Budget Issues

As with all state agencies, the South Carolina Arts Commission experienced a series of funding reductions to the current fiscal year’s budget.  On December 18th, the State Budget and Control Board issued another across-the-board 7% cut to state agencies.  This brought the Arts Commission’s cumulative budget reduction to 23.9%.  However, the Arts Commission made the decision not to pass along the entire 7%  — but a 4% cut to current grantees, making their total cumulative total reduction at the 18.2% level .  The agency is withholding 25% of the original grant award pending additional mid-year cuts. 

The Arts Commission staff is required to take seven furlough days of unpaid leave, and has reduced expenses for classified positions, other operating expenses, grants and employer contributions.

Arts Commission’s Budget Request FY 2009-2010

The General Assembly has allocated $585,000 in one-time funds designated to the South Carolina Arts Commission’s grantmaking program for each of the last three years.  This money is not part of the Arts Commission’s recurring budget, and therefore, must be requested annually from the Legislature.  If the Arts Commission doesn’t receive these one-time funds in the FY 2009-10 budget for their grantmaking program, grantees can expect a 30% reduction in their grant awards.  This 30% cut will be added to the cumulative total level of cuts from FY 2008-2009. 

Certainly, the loss of the $585,000, in combination with the significant cuts to the Arts Commission’s base budget would be devastating.  It would mean cuts in the neighborhood of 65% to most grantees.  This is the most pressing budget issue for the Arts Commission at this time and certainly to its grantees.

Arts Advocates will want to contact their legislators in support of the $585,000 in one-time monies — especially if their legislator serves as a member of the House Ways & Means Committee and the Senate Finance Committee.  If their legislator does not serve on one of those Committees, their legislator can still talk to their colleagues who do serve on those important budget writing committees.

Some Arts Commission Facts

FY 2008-2009:

Operating & Project Support Grants to Organizations and Artists – 263 grants in 34 counties;
Operating Grants for Annual, Long-term & Statewide Operating Grants – 139 grants in 31 counties;
Arts Education Grants – 120 grants in 36 counties;
Arts in Basic Curriculum (ABC) Sites – 50 grants in 22 counties;
For more than 40 years, the South Carolina Arts Commission has worked to build a thriving arts environment, which is essential to the quality of life, education and economic vitality of all South Carolinians.
The leadership and vision of the Arts Commission is grounded in a public planning process, and focuses on three major domains of public participation and service:  Artist Development, Arts Education, and Community Arts Development.
The Commission has a commitment to excellence across the spectrum of South Carolina’s cultures and forms of expression.
The Commission works with a variety of programs, partnerships, staff services, and grants to serve their constituency.
They have built a statewide arts infrastructure that brings quality arts experiences to people throughout the state.
The Arts Commission has aided communities to revitalize their downtowns and attract tourism.
Through the nationally recognized Arts in Basic Curriculum Project (ABC), the Arts Commission has helped schools in every region of our state improve their performance in and through the arts.
Besides nationally recognized initiatives in arts education reform, other programs include community arts development, audience development, community design, electronic communications, and traditional arts infrastructure development.
The Arts Commission’s programs and services are supported and sustained by a committed, experienced staff of field representatives and arts discipline specialists.
The Commission expands the capacity of its services through well-established partnerships with other state agencies and institutions and private groups, extending well beyond the traditional boundaries of the arts community.
The Arts Commission’s primary source of funding is state tax dollars appropriated by the South Carolina General Assembly, with grants from the federal government through the National Endowment for the Arts, as a secondary source.  Private foundations and community sponsors provide additional financial support for Arts Commission projects.
ECONOMIC IMPACT OF THE ARTS IN S.C: 
South Carolina cultural industry generates $2.4 BILLION in economic impact for the state’s economy; another $766.249,688 in salaries and wages; more than 31,490 jobs – a significant return on the state’s investment!

ARTS EDUCATION ISSUES:

As South Carolina’s public schools have experienced more than $300 million in budget cuts during the current fiscal year, EIA funds – Education Improvement Act dollars – have also been drastically reduced.  A focus and concern for arts education advocates is preserving Arts Curricular Innovation Grants.  The Governor’s budget proposal has zeroed out funding for this important grants initiative to schools and districts with innovative arts programs. 

In dealing with the decline of EIA revenues, the Education Oversight Committee has recommended suspending the Arts Curricular Innovation Grants for FY 2010.  The money would remain in the budget but redirected to but possibly restored in the future, as funds become available.  After a series of across the board funding reductions from the EIA funds within the S. C. Department of Education’s budget, the Arts Curricular Innovation Grants are currently funded at $1,278,451 – a drastic reduction from its former $1.5 million funding level.

However, a House Ways & Means SubCommittee has recommended funding the Arts Curricular Innovation Grants program at the $1.3 million level.  

Arts Education advocates will want to contact their legislators  — and especially members of the S.C. House and Senate Education Committees to ask for their support in preserving this important funding for innovative arts education programs.  Educators and parents should add their personal experiences with these grants and programs.  A fact sheet on the Arts Curricular Innovation Grants is in the SCAA’s Arts Advocacy Handbook and at its web site along with contact information for the members of those committees.  

There seems to be some support among the public and private sector to revamp the tax structure, such as the property tax swap in Act 388, which shifted the burden of funding public education from homeowners to the private sector.

There is a push to promote “flexible funding” for school districts with maximum funding and program flexibility in the current budget year – to be able to move funds around from various categories that are earmarked for a specific program.  For example, funding for Arts Curricular Innovation Grants or Gifted and Talented/Arts monies, could be moved to another program area, thus redirecting or eliminating that crucial funding altogether. 

Currently, House Bill 3352 (H.3352) has been introduced that allows for flexibility – “transfer of funds among appropriated revenues in order to ensure the delivery of academic and arts instruction during the 2008-2009 and 2009-2010 fiscal years”.   This is a positive step for preserving arts funding and arts instructional time.  This bill, like other legislation can change at any time. 

Other education proposals include moving the school funding dollars with the student, also known as “back-packing”.  The Governor has long been in favor of restructuring education-funding categories by expanding a funding flexibility proviso into a permanent statute.  That legislation is called the Streamlined Management & Accounting Resources for Teaching or S.M.A.R.T. Funding.  This legislation passed overwhelmingly in the House in 2003, and came very close to passing in the Senate. At that time, arts advocates worked to get language in the Senate version that protected all grants, including the Arts Curricula Grants.   The S.M.A.R.T. Funding bill did not see any real action in past several years.  

The push to “roll-up” funding categories will be important in this legislative session and would certainly affect funding that has been dedicated to arts education initiatives.

The Arts Alliance and the Arts Commission will continue to monitor the work of the Senate and House Education Funding Study Committees, the Education Oversight Committee and others as these entities examine the various education funding mechanisms such as the Education Funding Act (EFA), the Education Improvement Act (EIA), and the relationship of taxation on education funding and what constitutes the Base Student Cost.  The implementation of the S.C. Education & Economic Development Act and the Student Health and Fitness Act of 2005 continues to have an impact on classroom instructional time in the arts. 

Arts education reform continues to evolve in South Carolina.  The Arts in Basic Curriculum Project (ABC) will present its 20th anniversary evaluation; the School District Fine Arts Coordinators have created a document that defines the elements of a quality arts education program; and the S.C. Alliance for Arts Education will host another Arts Education Summit this spring.   At the last Summit, representatives from the State Department of Education, the S.C. Arts Commission, the Arts Alliance and other leaders, met to work strategically to align the arts within the goals and recommendations of the State Superintendent of Education Dr. Jim Rex.

Accelerating innovation
Increasing choices within public schools
Refining the state’s accountability system to ensure maximum results and minimum testing
Elevating and reinvigorating the teaching profession
Providing fair and more equitable school funding  
Additional legislation and issues that are of interest to arts education supporters are the inclusion of “learning in and through the arts” within the Charter School, Virtual School, School Choice/Open Enrollment bills, and the 4-K Child Development Pilot Program initiative.   Arts-friendly language has been included in some previous versions of the Choice and 4-K bills.

All of these issues can change as committees meet and legislation proceeds throughout the session.  Be sure to keep up with the latest through the SCAA’s Email Advocacy Alerts and Updates and contact your legislators if these issues are important to you – especially if your legislators serve on the House Ways & Means, Senate Finance, and House and Senate Education Committees.

NOTE:  As of this writing, a new federal stimulus bill has been announced in the U.S. House of Representatives that could bring as much as $3.2 billion in one-time federal dollars for South Carolina, including a $905 million payment to wipe out the state budget deficit. 

ARTS CURRICULAR INNOVATION GRANTS
FACT SHEET

The purpose of the 2008–09 Arts Curricular Innovation Grants (ACIG) Program is to assist schools and districts to develop and implement large or small-scale arts initiatives that support quality arts education programs that significantly improve student achievement in the arts.  ACIG must promote the development and implementation of appropriate curricula, instruction, and assessment based on the 2003 South Carolina Visual and Performing Arts Academic Standards. They must also serve as the foundation to support quality arts instruction and the growth of such programs in South Carolina schools.  Successful proposals will include dance, music, theatre, the visual arts, or any combination of these arts areas.

During the 2008-09, grant cycle there were:

$2.14 million in grant requests, and
ninety-five of the 145 grant applications submitted were funded with the $1.5 million allocated from the SC Legislature less 20% from 2008 budget cuts.
The Arts Curricular Innovation Grants provide schools and districts with the funding for arts strategic planning, effective implementation of the state arts standards, standards-driven assessment, the use of scientifically-based instructional best practice strategies, and arts-specific professional development.

Ten years of ongoing research in SC schools has demonstrated increased and enhanced arts education programs have significant impact on students, schools, and teachers. Research conducted by the USC Office of Program Evaluation found that schools with quality, comprehensive arts programs greatly changed the ecology of the school. Research at these schools concludes:

higher student attendance,
fewer discipline referrals,
higher parent approval,
fewer student interruptions and more time on task,
higher teacher attendance, and
higher teacher moral.
These grants also provide quality professional development for arts teachers and classroom teachers.

Teachers and administrators from every district in the state have attended summer professional development arts institutes through the Arts Curricular Innovation Grants
Approximately 500 teachers attend these institutes each year
The South Carolina Arts Leadership for Success Academy (SCALSA) and the Arts Assessment: Student Evaluation Institute have been approved by the Program of Alternative Certification for Educators (PACE) as two of the three required courses for PACE arts teachers.
New teachers attending SCALSA have a very high retention rate. Out of 272 teachers attending SCALSA only 11 have left the teaching profession.
Research from the Office of Program Evaluation at USC supports the quality of the arts institutes funded through the Arts Curricular Innovation Grants. A five year longitudinal study reported:
Observers stated the quality of standards based arts lessons had greatly improved after attending the Curriculum Leadership Institute in the Arts
Observers also reported that after teachers attended the Arts Assessment: Student Evaluation Institute, there was marked improvement in teachers assessing students’ knowledge of the South Carolina Visual and Performing Academic Standards.
Applicants must use grant funds to achieve all of the bulleted items below:

Plan, develop, and implement arts education curricula, instruction, and assessment based on the 2003 South Carolina Visual and Performing Arts Curriculum Standards.
Develop lesson plans and curriculum guides based on the 2003 South Carolina Visual and Performing Arts Curriculum Standardsand purchase resources required to implement these lessons.
Provide for teacher professional development programs for arts specialists or appropriate classroom teachers.
A minimum of 25%of the total budgetmustbe used for scholarships for SCDE-approved 2008 arts summer professional development institutes. These include institutes on curriculum, leadership, assessment, technology, creating in the arts, and arts integration.
Hire certified arts specialists or contract with professional artists approved by the South Carolina Arts Commission (SCAC).
Administer the South Carolina Arts Assessment Program (SCAAP) as a major part of an ongoing needs assessment and evaluation.  The objective of SCAAP is to allow educators and school districts to assess students’ arts achievement based on the 2003 South Carolina Visual and Performing Arts Curriculum Standards. 
A total of 8,867 fourth grade music and visual arts students participated in SCAAP in 2008.
The test gives teachers feedback on the implementation of standards-based arts education.
SCAAP is the only fully Implemented Web–based arts assessment in the nation.
During the 2009-10, grant cycle Competitive Priority Points will be awarded for innovative practices. Applicants should include and detail innovative practices to
Enhance, accelerate, and assure student achievement in the arts,
Implement the 2003 South Carolina Visual and Performing Arts Academic Standards,
Embedded innovative practices in the grant’s strategies and action steps, and
Include strategies to more effectively engage students in their arts study.
The EIA-Arts Curricula funds (currently at approximately $1.2 million in EIA funds) in the SCDE budget have been crucial to progress in arts education in our state since the passage of Target 2000 legislation in 1989.  This funding supports the improvement of arts curricula and instruction through competitive grants to schools and school districts. Its impact is statewide as well as local, because these grant funds support statewide professional development for arts teachers that has dramatically improved arts instruction and integration with other subjects and also support a standardized arts assessment program that is an important tool for local and statewide improvement.

February, 2009
Betty Plumb, Executive Director