Arts and Humanities: Background on Funding

Order Code RS20287 Updated February 16, 2006 CRS Report for Congress Received through the CRS Web Arts and Humanities: Background on Funding Susan Boren Specialist in Social Legislation Domestic Social Policy Division Summary Funding for the arts and humanities is a perennial issue in Congress. Although arts funding represents less than 1% of the Bush Administration’s FY2007 total estimated budget authority, Congress continues to address the concern of whether federal funding is crucial to sustain arts institutions. The majority of federally funded arts and humanities programs are contained in the Department of Interior and Related Agencies appropriations bill. The Interior appropriations provide funding for the National Foundation on the Arts and the Humanities, including the National Endowment for the Arts (NEA) and the National Endowment for the Humanities (NEH). The Office of Museum Services, within the Institute of Museum and Library Services, is now under the jurisdiction of the Labor, Health and Human Services, and Education and Related Agencies appropriations. The FY2006 final Interior appropriations law (H.R. 2361, P.L. 109-54) provided $124.40 million for NEA and $140.95 million for NEH (both figures including rescissions.) The Bush Administration’s FY2007 budget would provide $124.41 million for the NEA and $140.955 million for NEH, which are very similar numbers to the final FY2006 appropriation. Background Of the estimated 200-plus arts and humanities programs scattered throughout federal agencies, it appears that the majority of arts and humanities funding is through the Department of Interior appropriations.1 President Bush’s FY2007 budget request ($2.739 trillion in estimated budget authority) includes far less than 1% for arts and humanitiesrelated spending. The NEA and the NEH combined specifically constitute an estimated 1 The federal government also provides support for the arts through tax expenditures, such as the deduction for charitable contributions to the arts, humanities, and culture on income tax and on gift and estate taxes. Congressional Research Service ˜ The Library of Congress CRS-2 0.01% of the FY2007 budget.2 The Department of Interior and Related Agencies Appropriations for FY2006 (P.L. 109-54) (including rescissions) provided a total of $124.4 million for NEA and $140.9 million for NEH, representing approximately 0.01% of total estimated budget authority ($2.758 trillion) in FY2006. Arts Programs Three of the major arts programs funded by the federal government include the NEA, the NEH, and the Office of Museum Services within the Institute of Museum and Library Services (OMS/IMLS). NEA provides direct grants to art institutions, grants for programs of national significance, and a limited number of individual grants for Literature fellowships, Jazz masters, and National Heritage Fellowships in the folk and traditional arts. NEA has awarded approximately 120,000 grants for 50 states and six U.S. jurisdictions since 1965. State arts agencies, in compliance with the congressional mandate, are now receiving over 40% of NEA grant-making funds. In addition to providing state arts grants, NEA administers the Challenge America Arts fund.3 NEH supports grants for humanities education, research, preservation, public humanities programs, and grants under the jurisdiction of 56 state humanities councils, and has initiated a “We the People” program. NEH also supports a Challenge grant program to stimulate and match private donations in support of humanities institutions. Since its creation, NEH has provided approximately 61,000 grants to all states. Within IMLS, the OMS supports general operations grants for museums, museum leadership grants, museum conservation grants, and museum assessment.4 In the past 25 years, the IMLS’s Office of Museum Services has awarded approximately 44,000 grants totaling over $400 million, aiding approximately 15,000 museums of all types. OMS is now under the jurisdiction of the Labor, Health and Human Services, and Education and Related Agencies (L-HHS-ED) appropriations instead of Interior and Related Agencies appropriations. The rationale for this transfer was that the Office of Library Services, the larger of the two components of IMLS, was already under L-HHS-ED appropriations, and having a single funding stream appeared to be simpler. FY2005 Funding For final FY2005 funding, the Consolidated Appropriations Act, 2005 (P.L. 108447) provided $121.3 million for NEA and $138.05 million for NEH. The conference added $2 million to NEA’s funding for the “American Masterpieces” program. The FY2005 Consolidated Appropriations Act provided $34.7 million for OMS within IMLS, 2 An estimate of the FY2007 total budget authority ($2.739 trillion) would include less than 0.1% of the total budget authority for arts and humanities-related spending. This figure is calculated based on programs in the FY2007 budget, and using the Catalog of Federal Domestic Assistance ([http://www.cfda.gov]) designations for arts and humanities programs. (For estimated total U.S. budget authority, see U.S. Budget, Historical Tables, FY2007, Table 5.1.) 3 The Challenge America Arts fund is a program of matching grants for arts education, outreach, and community arts activities for rural and under served areas. Because the NEA administers the Challenge America Arts fund, it is required to submit a detailed report to the House and Senate appropriations committees describing the use of funds for the Challenge America fund program. 4 The IMLS and the Office of Museum Services have been reauthorized through FY2009 by P.L. 108-81, the Museum and Library Services Act. CRS-3 $39.9 million for “Congressionally directed grants” and $205.9 million for Library programs for a total of $280.6 million for IMLS. This included $16.9 million for the “Museums for America” program, to “build the capacity of museums to serve communities through technology and education.” P.L. 108-447 also provided $35.6 million for the Arts in Education program. FY2006 Appropriations After a series of hearings, the House Subcommittee on Interior, Environment, and Related Agencies Appropriations marked up the Interior Appropriations bill on May 4, 2005. The full House Appropriations Committee met May 10, 2005 and reported H.R. 2361 (H.Rept. 109-80, May 13, 2005), providing $121.3 million for the NEA and $138.05 million for NEH. On May 19, 2005 the House passed the Interior, Environment and Related Agencies appropriations bill, H.R. 2361, by a vote of 329 to 89. The Housepassed bill would have provided $131.3 million for NEA, $10.0 million above the Administration’s FY2006 request and the FY2005 Appropriation. (See Table 1 below for additional arts-related appropriations.) A House floor amendment by Representative Slaughter was approved that increased NEA’s appropriation by $10.0 million and the NEH by $5.0 million with offsets totaling $15.0 million from the National Forest system and Department of Interior’s Departmental Management activities. Under the House passed bill, NEA’s Challenge America program was increased to $24.9 million funded under NEA grants and state partnerships. Other House floor amendments that were not agreed to would have reduced funding for the NEA. One sought to cut $15.0 million from NEA to provide $4.8 million for the Payment in Lieu of Taxes program. Another proposed cutting $30.0 million from the NEA to shift $27.5 million to the Forest Service’s Wildland Fire Management program. On June 10, the Senate Appropriations committee reported its version of H.R. 2361 (S.Rept. 109-80), and on June 29 the Senate passed H.R. 2361, providing $126.3 million for NEA and $143.05 million for NEH for FY2006. The Senate passed H.R. 2361 on June 29, 2005. The Senate Committee version and the Senate bill included $5 million in general increases to NEA and NEH. (Note: The House considered and passed H.R. 3010, the L-HHS-ED appropriations for FY2006, providing $0 for Arts in Education and $249.6 million for the IMLS. The FY2006 Senate-reported figure for Arts in Education was $35.7 million, and for IMLS was $290.1 million total, with $37.4 million for OMS.) P.L. 109-149, the Labor, HHS, and Ed Appropriations act, provided $36,547,000 for the Office of Museum Services, including $842,000 for the Museum grants for African American History and Culture, and $911,000 for Native American/Hawaiian Museum Services. It also provided $35,277,000 for Arts in Education. On August 2, 2005, the FY2006 Interior, Environment, and Related Agencies appropriations bill (H.R. 2361) was signed into law as P.L. 109-54, providing $124.4 million for NEA and $140.9 million for NEH (including across-the-board rescissions — P.L. 109-148 applied a 1% reduction for most programs.) FY2007 Budget Request The Bush Administration’s FY2007 budget proposes $124.4 million for NEA (including $14.1 million for the Challenge America Arts Fund). In the NEA budget, NEA’s direct grants would constitute an estimated $44.9 million. The new national CRS-4 initiative called American Masterpieces is proposed to be funded at $9.8 million, and includes touring programs, local presentations, and arts education programs in the fields of dance, visual arts, and music. For IMLS, the FY2007 budget proposes $262.2 million, and of that amount the Office of Museum Services (which serves an estimated 15,000 museums) would receive $41.4 million (it now includes funding for the African American Museum of History and Culture ($1.5 million) and Native American/Hawaiian museum services ($920,000). For NEH, the FY2007 budget would provide $140.95 million. NEH’s FY2007 budget proposes $15.2 million for the “We the People” initiative. These grants include model curriculum projects for schools to improve course offerings in the humanities — American history, culture, and civics. The FY2007 budget proposes $54.9 million to support NEH’s grant programs for education, research, preservation and access, and public programming in the humanities; and $31.08 million for the federal state partnership program for the 56 state humanities councils; and $14.9 million for the NEH Challenge Grants program and Treasury funds to stimulate private donations. Reauthorization of the Institute of Museum and Library Services (IMLS) The legislation authorizing the IMLS expired at the end of FY2002. However, funding was carried through appropriations law until enactment of P.L. 108-81. H.R. 13, the Museum and Library Services Act of 2003, which authorized funding for IMLS through FY2009 was signed into law on September 24, 2003 as P.L. 108-81. The provisions for P.L. 108-81 included an “obscenity clause” requiring the IMLS Director to establish procedures to prohibit funding to any project that has been “determined to be obscene” in the judgment of the courts, and require the Director in making grants to “take into account consideration of general standards of decency and respect for the diverse beliefs and values of the American public.” The law used the definition of obscenity that was formulated by the United States Supreme Court in Miller vs. California [413 U.S. 15 (1973)], and this language was carried through Interior appropriations and became amendments to the NEA statute (National Foundation on the Arts and the Humanities Act, as amended [20 U.S.C. §954(d)].5 In addition to this provision, the law also clarified the definition of museum and revised the purposes section to restate the importance of museums’ public service role of connecting the whole of society to our cultural heritage. The law required that the IMLS director carry out and publish analyses of the “impact” of museum and library services. P.L. 108-81 authorizes OMS at $38.6 million for FY2004 and “such sums” as may be necessary for FY2005-FY2009. The public law also included amendments to the National Commission on Libraries and Information Science Act and the Arts and Artifacts Indemnity Act to raise liability limits to $8 billion. For those aspects of P.L. 108-81 related to libraries, see CRS Report RL31320, Federal Aid to Libraries in the Museum and Library Services Act of 2003. 5 See CRS Report RS21509, Museum and Library Services Act of 2003: Using “Obscenity” and “Decency” Criteria in Selecting Grantees, by Andrew W. Murnane. CRS-5 Private Giving to the Arts and Humanities Giving USA, a publication by the American Association of Fundraising Counsel (AAFRC) Trust for Philanthropy, provides an annual report on philanthropy. According to Giving USA 2005, private giving to organizations in the arts, culture, and humanities category totaled $13.99 billion in 2004. This represents 5.6% of total estimated giving ($248.5 billion) in 2004. In current dollars, private giving to the arts, culture and humanities reflects an increase of 6.7% over 2003. One of the largest gifts reported in 2004 was for an estimated $500 million for the estate of Caroline Wiess Law benefitting the Houston Museum of Fine Arts. CRS-6 Table 1. FY2002-FY2007 Appropriations for Selected Arts and Humanities Programs FY2002 approp. National Endowment for the Arts (NEA) (Grants, Admin.)a Challenge America Arts Funda NEA total National Endowment for the Humanities (NEH) Office of Museum Services, IMLS Institute of Museum and Library Services (IMLS) — totalc,d Smithsoniane Kennedy Center National Gallery of Art Commission of Fine Arts Institute of American Indian, and Alaska Native Culture and Arts Development Holocaust Memorial Council Arts in Education d FY2003 approp. FY2004 approp. FY2005 approp. FY2006 Housepassed FY2006 Senatepassed FY2006 approp.b FY2007 budget request $98,234,000 $115,732,000 $120,972,000 $121,264,000 $131,264,000 $126,264,000 $124,406,000 $124,412,000 17,000,000 115,234,000 16,889,000 115,732,000 21,729,000 120,972,000 21,427,000 121,264,000 14,922,000 131,264,000 14,922,000 126,264,000 17,559,000 124,406,000 14,097,000 124,412,000 124,504,000 124,936,000 135,310,000 138,054,000 143,054,000 143,054,000 140,949,000 140,955,000 26,899,000 28,637,000 31,403,000 34,724,000 36,990,000 37,400,000c 36,547,000 41,385,000f 224,501,000 420,960,000 t518,860,000 38,310,000 85,335,000 1,224,000 243,890,000 446,096,000 t544,875,000 33,690,000 92,842,000 1,216,000 262,240,000 488,653,000 t596,279,000 32,159,000 98,225,000 1,405,000 280,564,000 489,035,000 t615,158,000 33,021,000 102,654,000 1,768,000 249,640,000 524,381,000 t615,281,000 27,800,000 113,300,000 1,893,000 290,129,000 524,135,000 t624,135,000 33,000,000 111,600,000 1,893,000 247,144,000 516,568,000 t615,097,000 30,347,000 111,141,000 1,865,000 262,240,000 537,394,000 t644,394,000 39,100,000 116,743,000 1,951,000 4,490,000 5,454,000 6,173,000 5,916,000 6,300,000 6,300,000 6,207,000 6,703,000 36,028,000 30,000,000 38,412,000 33,779,000 39,505,000 35,071,000 40,858,000 35,633,000 41,880,000 0 43,233,000 35,700,000c 42,150,000 35,277,000 43,786,000 0 a. With the exception of the FY2002 number, the NEA Grants and Administration total now includes the Challenge America Arts Fund. b. The final FY2006 appropriations in this column reflect the enacted rescissions (P.L. 109-148). c. IMLS earmarks were not allowed for FY2006 in the Labor-HHS-ED appropriations act, and there was a 1% across-the- board rescission in the final FY2006 appropriation. The total for IMLS for FY2002-FY2005 includes congressional earmarks in FY2002 ($29.5 million), FY2003 ($35.1 million), FY2004 ($32.6 million), and FY2005 ($39.9 million). d. Both IMLS and Arts in Education are under L-HHS-ED appropriations. e. The top figure for Smithsonian is for Salaries and Expenses. The lower figure in the table is the total (t = total) appropriation including repair and construction. f. The total for the Office of Museum Services includes Museum grants for African American History and Culture (P.L. 108-184) and funding for Native American/Hawaiian museum services (P.L. 108-81).