Arts Challenge Initiative Changes

WHAT IS HAPPENING WITH THE ARTS CHALLENGE INITIATIVE?

There will be no Arts Challenge Initiative (ACI) application this year. At the Arts Board’s request, Governor Doyle recommended that funding be transferred from the Arts Challenge Initiative Program to State Aids for the Arts “to allow the board to better focus state funds to serve Wisconsin citizens.” Each subsequent version of the FY07 - FY09 biennial state budget (Joint Finance, Senate, and Assembly) has included the transfer of ACI dollars. Therefore—pending completion of the state budget—there will be no ACI application this year.

$688,800 is transferring from ACI to State Aids for the Arts. Programs under State Aids for the Arts are: Artistic Program Support 1, Artistic Program Support 2, Performing Arts Network Wisconsin, and Community Development Project Grants. The Arts Board believes that these programs align with the agency’s mission statement and help organizations meet the needs of the citizens of Wisconsin.
$90,000 will remain in ACI to serve the state’s minority arts organizations. There will be a new application process for these organizations, which are of, by, and for communities of color. Your organization will be notified about when the applications will be available if it qualifies for this program.

The biennial state budget must now go to a Legislative Conference Committee. Once this Committee completes its work, both houses of the legislature must act on the bill and then it is sent to the Governor for his vetoes and his signature.

It is important to note that all of the discussions regarding what to do with ACI have taken place as the budgets of the organizations in all of our programs have been increasing, the number of organizations to serve is increasing and the total funding available to grant has remained flat or has decreased when you factor in inflation. The discussions have also taken place during the Arts Board’s extensive planning process with significant field input.

WHY MAKE THE CHANGE?

For years people have told the Arts Board that “something has to be done about ACI.” Of course, that something depended on with whom we were talking. Here are some of the reasons why change has been suggested:

ACI was created in the 1980s to encourage the growth of organizations. Growth is no longer the best or only measure of success. Organizational capacity building and stabilization are as important. In fact, ACI penalizes groups for making prudent managerial decisions, like attempting to reduce or eliminate debt.
Some in the arts industry want the program to fund endowments, others vehemently say no.
Some want the program to be based on an average of two or three years of earned and contributed income, to eliminate the “roller coaster effect.” An example of this effect is that an organization gets a windfall donation one year, which increases its base. This makes them eligible to receive a good-sized award that year, and then no award the next.
There are many organizations (87 now) in ACI that undergo no peer panel review in our other programs. This doesn’t seem appropriate, especially in times of limited resources.

WHAT MUST I DO?

Nothing until the biennial budget is signed into law by Governor Doyle.
If you currently have an ACI grant award, you will be required to complete a final report form. (In the past the application was your final report.) You will be notified when the final report form is online.
FY08: If you have applied for and have been notified that you will be receiving a grant in FY08 from APS 1, APS 2, PAN WI, and Community Development Project Grants, your award will be larger due to the transferred funds, but will likely not be equal to that grant plus the ACI grant that you’ve received in the past.
For FY09, watch for the changes to the Arts Board’s grant programs. This fall WAB staff will travel the state to present the latest information and provide background on the new application, the application process, and the way awards will be determined.

Updated: September 12, 2007