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States across America are cutting arts funding. “To be sure, it is an extraordinarily difficult time for state budgets. In the mid- to late ’90s, the states enjoyed healthy revenue streams and almost universally cut taxes and increased spending, including on programs mandated by the federal government (like Medicaid and standardized testing). Now, as the economy enters a second year of doldrums, the states — 49 of which are constitutionally required to keep a balanced budget, unlike the federal government—are paying the price for their earlier optimism. Nor does the horizon look particularly rosy, thanks to the federal budget policy being pursued by the Bush administration. With the president calling not only for elimination of the dividend tax, but an acceleration of the 2001 tax cuts, states are not likely to see more revenue any time soon.”

New York artists and arts spaces are on the move again, looking for less expensive space. This year’s target area – Hell’s Kitchen in the West 30s. “It isn’t news that artists get used like detergent—cleaning up a neighborhood, then flushed away. What does seem like a huge shift is that some artists spaces are trying to buck this trend by buying buildings.”

New York’s attorney general has proposed accounting reforms for non-profits. The legislation “would require many New York-based nonprofits to certify financial statements, create audit committees to scrutinize accounting practices, and ensure a sufficient number of independent board members.” Some arts people are wary. Depending on how the legislation is written, arts groups – particularly mid-size arts groups – could have difficulty complying.