By Andy Graham, For The Times-Mail
agraham@heraldt.com
Indiana Gov. Mitch Daniels had high praise for the arts during October's gubernatorial debate in Bloomington.
"Art has lifted the spirit and called mankind to its highest instincts," he said then, noting that the arts help create desirable communities in which to live, citing Bloomington as an example.
But he also said the unfolding economic crisis compels even a state in relatively sound fiscal shape to shift arts funding down the list of priorities.
Tourism funding, too.
Not singled out - yet
So far, neither arts nor tourism funding has been singled out as the state works to cut where it can to meet the financial crisis, with the Indiana Arts Commission asked to cut 10 percent, the same as other state agencies, from remaining budgeted expenses for the current fiscal year that runs through June 30.
The arts commission was able to absorb most of the shortfall, $256,000, requiring only a 3.3 percent cut in the grants it awarded for fiscal 2008. Grant recipients had already received 90 percent of their money, and will still get almost two-thirds of the remaining 10 percent.
"We don't want anybody to be alarmed at this point," said Katherine Paschal, the Bloomington Area Arts Council's director of arts outreach. "The IAC has tried to insulate their partners from taking too big a hit and, currently, it's not that bad. "We'll roll with it and see where things take us from here."
Future cuts more severe?
Next budget year may be significantly tougher.
"From what we've heard, we're looking at something like $2 million (cut from arts commission funding)," said arts commission spokesman Rex Van Zant. "But I can't emphasize enough that the numbers, if accurate, are only proposals from the OMB (the Office of Management and Budget) and the governor's office at this point and might not be close to the final result."
If the $2 million figure sticks, though, that would amount to 42.5 percent of the current fiscal year's total arts commission budget of $4.6 million, some of which comes from the federal government.
"The point is, we just don't know what we're going to be looking at, but we are determined to make do," Van Zant said. "If an artist calls and asks if they should bother applying for a grant, the answer is, 'Apply now.' The deadline is coming up in February, and there is money available for the next fiscal year.
"We still have a job to do, to serve the artistic and cultural needs of the state, and whatever money we have from state or federal sources will be applied," Van Zant said. "Indiana, on a number of levels, is relatively fortunate regarding our financial position as opposed to Michigan, Ohio, California and many other states, and the sacrifices we've been asked to make have been across the board in many respects. We've been belt-tightening for 10 years or more, probably, but it's always been equitable and, without that, things could be much, much worse."
Squeeze could get tighter
The state currently has $1.7 billion in reserves, its "rainy day" fund, but the rain could turn into a monsoon. December's state revenues were $33 million below projections. There is expected to be a $736 million budget gap between revenues and allocations by the end of the fiscal year in June.
And Daniels is determined to adhere to top priorities, such as preserving property tax caps and maintaining funding levels for K-12 education. He is calling for agency budgets to be reduced by 8 percent for 2010-11, overall, with no pay hikes for state employees and limited capital spending.
According to the Howey Political Report, a newsletter focusing on Indiana state politics and government, several programs and agencies, including the Arts Commission and tourism funding, will be facing more significant cuts or elimination of programs under the governor's budget proposal.
The waiting game
But until the Legislature, which began its biennual budget session last week, passes a budget bill and the governor signs it, guesswork remains.
"We've just heard what everybody else has," Rob DeCleene of the Bloomington/Monroe County Convention and Visitors Bureau said last week. "For now, it's all rumor and speculation. I was listening to WFIU and heard a report that utilized the term 'slashing' in reference to the tourism budget and that, obviously, was not encouraging. We've always had a lower tourism budget than surrounding states, anyhow."
"But I have to say our state tourism office has done a remarkable job with what they've had to work with. They've launched some great initiatives. The two Indiana Artisan cultural tourism trails we've been awarded provide great opportunity for us, one in conjunction with Brown County and Columbus, and the other with Bedford as part of the Limestone Trail. That's a perfect example of the sort of thing the state has been doing and that we'd hate to see lose funding. Regardless, we'd try to keep it going on our own."
Spending on tourism advertising has proven effective, with $411 generated for the state economy for every dollar spent on promotion in 2007, according to a study for the Indiana Office of Tourism Development.
Bloomington's visitors bureau is remaining proactive with programs such as its current $99 Winter Package Offer, with six hotel partners offering $99 rooms along with a package of incentives worth $99, rendering the stay potentially free.
"It's about as conceptually close to a free stay as you can get," DeCleene said. "We have restaurants, attractions and retailers on board. Each hotel is providing unique incentives, gas cards, Starbucks cards, free ice skating, a lot of weather-related stuff. It'll run to March 9."
Which is about the time the final biennial budget should be taking form.
"When education is a budgetary line item next to tourism, we realize tourism will get cut," DeCleene said. "We all value education. We also have a bit of a skewed perspective here in Bloomington and Monroe County regarding the arts, as on Bloomington being an arts destination for tourists - a great perspective, but not necessarily shared by all 91 other counties."