PRESIDENT OBAMA FY 15 BUDGET PROPOSAL
On March 4th, 2014 President Obama released his FY15 budget proposal for the National Endowment for the Arts (NEA) and Arts in Education (AIE) programs at the U.S. Department of Education:
NEA FY15 Proposal:
The President's budget includes a request of $146 million for the National Endowment for the Arts (NEA). His proposal represents level funding from FY14 for the agency. The NEA budget experienced a rollercoaster ride last year, beginning with the President's initial proposal of $154.5 million. In the 2013 sequester, the agency suffered an additional budget cut, and during FY14 appropriations, it was threatened with a cut to $75 million. With your advocacy efforts, the NEA's final FY14 budget was announced at $146 million, a restoration to near FY12 levels. The arts community continues to advocate for $155 million for the NEA.
AIE FY15 Proposal:
The President's FY15 budget once again eliminates funding for the $25 million Arts in Education Program at the Dept. of Education in favor of consolidating the program into a broader fund for Effective Teaching and Learning for a Well-Rounded Education. The President is proposing that 10 subjects of learning--including geography, foreign language, and the arts--compete against each other for a total FY15 funding pool of only $25 million. Arts advocates are calling on Congress to maintain distinct funding for the Arts in Education Program at a level of $30 million in FY15.
The Charitable Deduction:
The President's FY15 budget proposal once again caps the charitable deduction at 28%. Numerous studies have shown that limits to charitable giving incentives may have a negative impact on giving, which could impact the services provided by nonprofits. PAA continues to urge lawmakers to protect the full value and scope of the charitable deduction.
PRESIDENT OBAMA FY 14 BUDGET PROPOSAL
The President released his FY2014 budget proposal. Due in February, the budget arrived two months later than normal and after both the House and Senate have released their own budgets. Below are highlights from the budget proposal as it effects the performing arts field.
Nonprofits Defend Charitable Giving Incentives
As budget debates once gain ramp up, the White House and Congress continue to consider imposing limits on charitable giving incentives. The President’s FY14 budget request once again includes a 28% cap on the rate of tax deductibility for charitable donations, and House and Senate budget and tax policy committees are weighing a range of potential limitations, primarily as cost-saving measures. National nonprofits are calling on Washington’s policy makers to take the charitable deduction off the revenue table once and for all. Reducing incentives to give would shrink the resources available to support community needs.
NEA Up, Arts Ed Down in White House Budget
The President’s FY14 budget proposes $154.466 million for the National Endowment for the Arts (NEA), which would nearly restore the agency to FY11 funding levels. Congressional action on the budget process will begin in the coming weeks. Funding debates in D.C. promise to be intense, and arts advocates are asking Congress to provide $155 million in NEA funding in FY14.
Arts in Education Funding
For the fifth consecutive year, the President’s budget proposes consolidating the Arts in Education program at the U.S. Department of Education into a new, broader funding pool titled “Effective Teaching Learning for a Well-Rounded Education.” This program seeks to combine support for the “arts, health education, foreign languages, civics and government, history, geography, environmental education, economics and financial literacy, and other subjects,” eliminating direct competition and federal leadership for each subject independently. With each year, the proposed total funding for the consolidated program has decreased and the FY14 request from the White House is a mere $75 million to be shared by all of the subjects. In prior years, the proposal has not been adopted on Capitol Hill, and in spite of the elimination of many other programs, Congress has protected the Arts in Education fund as a distinct program at nearly $25 million. Arts Advocates are asking Congress to provide $30 million to support the Arts in Education program at the U.S. Department of Education.