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DEPARTMENT OF THE INTERIOR AND RELATED AGENCIES APPROPRIATIONS FOR FISCAL YEAR 1980

TUESDAY, MARCH 13, 1979

U.S. SENATE,
SUBCOMMITTEE OF THE COMMITTEE ON APPROPRIATIONS,

Washington, D.C. The subcommittee met at 10:05 a.m., in room 1224, Everett McKinley Dirksen Office Building, Hon. Ted Stevens presiding.

Present: Senators Stevens, Hatfield, and McClure.

NATIONAL FOUNDATION ON THE ARTS AND THE

HUMANITIES

NATIONAL ENDOWMENT FOR THE ARTS

STATEMENTS OF:
LIVINGSTON L. BIDDLE, JR., CHAIRMAN, NATIONAL ENDOWMENT

FOR THE ARTS
P. DAVID SEARLES, DEPUTY CHAIRMAN, POLICY AND PLANNING
MARY ANN TIGHE, DEPUTY CHAIRMAN, PROGRAMS
L. JAMES EDGY, DEPUTY CHAIRMAN, INTERGOVERNMENTAL AF.

FAIRS

BUDGET REQUEST

Senator STEVENS. Good morning.

Today we are scheduled to hear the fiscal 1980 budget request of the National Endowment for the Arts. This request totals $154.4 million, an increase of $4.9 million over appropriations to date for fiscal 1979. The justification has already been included in the record.

In addition to the fiscal 1980 budget, we will also attempt to cover the Endowment's pending $1.4 million supplemental appropriation request for fiscal 1979, for the White House Conference on the Arts, and a February 5 reprograming request.

Mr. Biddle, we welcome you again before the committee. As always, your prepared statement will be printed in full in the record.

If you would, please introduce those with you this morning and highlight your statement and your budget request. The statement follows:]

(1279)

STATEMENT OF LIVINGSTON L. BIDDLE, JR.

It is a pleasure to come before you today to speak on behalf of the

budget request for the National Endowment for the Arts.

For Fiscal Year 1980, the Arts Endowment requests $154,400,000, an

increase of $4,965,000 over the amount appropriated for Fiscal Year

1979. The increase sought is a modest one of three per cent and it is

in line with the general moderation of Federal spending as part of

President Carter's determined effort to reduce inflation.

In this light,

even the small increase we are seeking is a sign of the Administration's

continuing and strong comitment to public funding of the arts. I might add that the toll inflation extracts from the vitality of arts activity

is a heavy one, and makes it much more difficult to bring arts of high

quality to a larger and larger public audience.

This year, the Endowment's request of $154,400,000 breaks down as follows:

$97,000,000 in program funds, a decrease of $5,160,000; $20,000,000 in

Treasury Finds, an increase of $12,500,000; $26,900,000 in Challenge

Grant funds, a decrease of $3,100,000; and $10,500,000 in administrative

funds, an increase of $725,000.

This represents a realignment of the Endonment's accounts, with a substan

tial increase in the Treasury Fund, accounting for virtually all of the increase in the Endowment's request. It is, therefore, important to put

this shift in the proper perspective.

Grants made through the Treasury Fund require an up-front cash dollar to release an equal amount of money from the Treasury, and the total match

required is three non-Federal dollars for each Federal dollar.

Unlike the Challenge Grant Program, Treasury Funds are given to support

specific projects and, as such, they serve as a supplement to regular

programming funds.

It is important to note two matters regarding the increase in the Treasury Fund. Firstly, an increase in Treasury Funds is entirely consistent with the Administration's efforts to make each Federal dollar have as much impact as possible. The additional non-Federal investment encouraged by tripling the Treasury Fund is substantial. Nevertheless, it is my belief that the additional support required from the non

Federal sector, public and private, will be provided, and that, as in

the past, all of our Treasury Funds will be utilized. Secondly, because

Treasury Funds supplement program funds, the total allocation in FY '80

to support the Endowment's discipline program areas, music, theater,

dance, etc., might fairly be viewed as $117,000,000 compared to a carparable amount in FY '79 of $109,000,000.

As we see it, then, there is some very modest growth in the amounts we

would have available for allocation to our discipline program areas, and

in these increases the Endowment would seek to redress some long-standing

problems and meet some exciting new opportunities. These are as follows:

* Literature and Visual Arts. The Endowment believes strongly that the

comerstone of all its efforts is the individual artist.

Direct fellow

ships are one effective way to insure that the Nation's most talented artists can be provided the opportunity to devote full time to their

work, and we think it is proper that the Endowment now direct a larger

share of its resources into this kind of granting activity.

While fellowships are given in a number of Endowment programs, music, theater, architecture, media, dance, the predominent number are provided

to writers and visual artists, who, to a much larger degree than in

other disciplines, create alone in solitary work. Because their art is generally not a cooperative effort, the organizational structure that

serves artists in other disciplines is much less developed in literature and the visual arts, and likely to remain so. The efficient way to

encourage our finest writers and visual artists is through expanded

assistance to individual artists.

* Theater. When the Arts Endowment was established 14 years ago, the 15 large theater companies were located primarily on the East and West coasts. Today, there are 70 large professional theater companies in 51 cities of 31 states, and another 200 smaller professional companies

throughout the country. It is not, though, just a matter of numbers.

The work produced by these new theaters reflects a flowering of new

theater productions, particularly fine new American works. Moreover, our experience indicates that once even limited support and recognition is given by the Theater Program, non-Federal sources of revenue become increasingly available, showing how well the Endowment serves as a

catalyst in the

growth and development of the arts. The Endowment is

requesting an increase to its Theater Program essentially to widen the number of theater companies receiving Endowment encouragement.

* Opera-Musical Theater. Within the last year, the National Council an the Arts formally recommended the establishment of a new Opera-Musical

Theater Program, a recommendation which we wholeheartedly endorsed. To

insure the successful beginning of the new program area, and to enable

the Arts Endowment to respond to the already growing number of requests

prompted by the formation of this program, an increase is necessary over

the amount set aside for opera.

Musical theater is one of the few distinctly American art forms. In recent years, financial pressures have mounted to limit the number of

new productions. Few new musicals are produced; most that are presented

today are revivals.

It is to keep musical theater vital that the Endow

ment has moved to provide more support for this unique American art

fom. The increase we seek will provide support for a wide variety of musical theater activities and expand the touring activity of opera and

musical theater companies.

* Media. One of the Endowment's most applauded achievements has been

its involvement in bringing to public television programs of arts

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