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Budget Watch

Federal Budget
February 6, 2006, President George W. Bush sent his 2007 budget request to Congress

President Bush’s budget requests level funding for the National Endowment for the Arts (NEA) at $124.4 million and for the National Endowment for the Humanities (NEH) at $141 million. The President has included a $4 million increase for the Office of Museum Services (OMS), bringing the agency’s total budget request to $36 million. For the sixth consecutive year, a zero funding level for the Department of Education’s Arts in Education programs has been suggested. President Bush is also recommending a cut of $53.5 million from the Corporation for Public Broadcasting (CPB).

Pennsylvania Budget
February 8, 2006, Governor Edward G. Rendell delivered his 2006-07 Budget Address

Governor Rendell’s 2006-07 budget proposal includes a $725,000 increase to the Pennsylvania Council on the Arts (PCA). This will bring the agency’s budget for grants to the arts to $15.2 million. This increase has the potential of being the first boost the agency has seen in three years, and also of bringing PCA to its highest level of funding to date.

Philadelphia Budget

On Wednesday, March 29, 2006, Cultural Alliance President Peggy Amsterdam testified on behalf of the arts and culture community by urging Philadelphia City Council to consider an increase to the Philadelphia Cultural Fund. An increase, in a year where the City will see a surplus, would assist the Cultural Fund in achieving its goal of being at $5 million by FY 2008. The Cultural Fund is the one source of operating support for arts and culture organizations located in Philadelphia.

Read Testimony

January 24, 2006, Mayor John F. Street, Esq. presented his 2007 Operating Budget and 5-Year Financial Plan to City Council

Mayor Street’s budget address proposes a $150 million bond issue to provide capital funding for “two cornerstones of the City’s economic vitality: our Arts and Culture institutions and our neighborhood commercial corridors.”

The Mayor attached his proposed arts and culture support to the “legacy” theme of his address (this being his next-to-last budget proposal) by saying that “by making these investments, we will create an enduring legacy that will sustain Philadelphia for our children and future generations.”

This bond-financing plan is drawing criticism from several individuals mainly because of the future debt it will cause. In the Philadelphia Inquirer article, Street Plan Would Boost Spending, Rob Dubow, Executive Director of the Pennsylvania Intergovernmental Cooperation Authority (PICA), is quoted as saying the $150 million bond issue proposal “would cause us a lot of concern” because over five years, this bond issue would cost $50 million.

Others expressing concern in the press:

  • Florence Cohen – widow of long-time City Councilman David Cohen – is troubled that this proposal comes in the same address in which the Mayor proposes rescinding tax cuts for the poor, a measure for which her husband fought.
  • Brett Mandel – Executive Director of the tax reform group Philadelphia Forward – is concerned about the future debt burden this will create.
  • City Councilman Brian O’Neill – would rather see the proposed funds go toward tax cuts.
  • Philadelphia Business Journal | 1/24/2006 | Street Unveils Fiscal 2007 Budget for Phila.

    Philadelphia Inquirer | 1/24/2006 | Street Promotes “Legacy” Spending in Budget Address

    Philadelphia Inquirer | 1/24/2006 | Street Plan Would Boost Spending on Culture

    Philadelphia Daily News | 1/24/2006 | Street Budget to Offer Surplus of Legacy

    Philadelphia Daily News | 1/24/2006 | At A Glance

    Philadelphia Inquirer | 1/23/2006 | Street’s Challenge: How to Sell a Budget Surplus

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