Ohio Arts Council Announces Third Budget Cut For Fiscal Year 2009
by Jaclyn Reynolds

The Ohio Arts Council (OAC) has received a third budget cut for fiscal year (FY) 2009. In order to address a projected budget shortfall of over $640 million in the state budget by the end of June 2009, Governor Strickland has directed agencies to implement a 5.75 percent reduction in spending and programs. This is in addition to the 4.75 percent cut in September 2008 and the 10 percent cut to FY2008/2009 announced in April 2008. Cuts are required because the Ohio Constitution mandates a balanced budget at the end of each year.

Primary reasons for the proposed reduction:
• The accelerated and severe deterioration of the national and state economy continues to deprive Ohio of revenue.
• Exceedingly low state tax receipts. Early reports indicate that the holiday shopping season was the worst on record resulting from a weak demand and aggressive discounting by retailers.
• Medicaid spending trends will continue to exceed original estimates for FY2009.
• A huge demand for Worker’s Compensation funds. Ohio’s unemployment is projected to increase from the December level of 7.3 percent to 10.4 percent by the end of the calendar year.
• The need to protect the newly established homestead tax cut, the tuition freeze for state colleges and universities and increased funding for school districts.

The most recent budget reduction order required the OAC to reduce its fiscal year 2009 budget by 5.75 percent ($614,131). This reduces the FY2009 budget appropriation of $10,680,536 to $10,066,406.

The OAC’s primary goal was to minimize the impact this cut would have on grantees. Therefore, this cut was executed in two ways: first by reducing programs that had remaining balances, or unallocated funding, and then by cutting existing grants. Since the cut occurred six months in the fiscal year and some project grants had been paid in full, the percentage cut to available grants was slightly higher than 5.75 percent.

All unpaid grants in the following programs were reduced by 6.61 percent:
• Sustainability (over $1.5 million)
• Sustainability (under $1.5 million)
• Arts Access
• Arts Innovation
• Arts Learning – Arts Partnerships
• Building Cultural Diversity Initiative
• Capacity Building
• International Partnerships

There were unallocated funds in International Partnerships, Arts Learning – Special Projects, Artists with Disabilities Access Program and Building Cultural Diversity Initiative because these programs accept applications and award grants throughout the year. In addition there were remaining funds in Sustainability, Special Programs and Review and Assessment that were used to support the budget reduction.

The entire remaining balances in International Partnerships and Arts Learning – Special Projects, were used to help offset the reduction in the OAC budget and grant applications are no longer being accepted to these programs until fiscal year 2010 which begins July 1, 2009.

The Ohio Arts Council also reduced its administrative expenses in response to this most recent reduction. In addition, other measures the OAC has taken in response to the budget reductions in this biennium include:
• Staff reductions of 21 percent – four layoffs in April 2008, two early retirements and one resignation. All but one of the positions have been abolished from the OAC’s roster of full-time employees.
• Staff travel continues to be severely restricted for the remainder of FY2009. Beginning in April 2008, staff travel and professional development was significantly reduced.
• Attendance at conferences and workshops has been severely curtailed.
• Reduced the size of grant review panels for some programs.
• The agency will continue to streamline operations by using electronic forms of publications, applications and other communications.

Organizational grantees will receive a memo outlining the efforts we have undertaken and asking them to expect a new grant agreement in the near future. If they have questions they are being told to contact their program coordinator first.

Grants to FY09 recipients whose final reports were submitted by December 19, 2008 will not be cut.

The Ohio Arts Council is a state agency that funds and supports quality arts experiences to strengthen Ohio communities culturally, educationally and economically.

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