MEDIA RELEASE For Immediate Release 23 January 2006 Contact: J. James Public Information Officer 404-685-2784 jjames@gaarts.org GEORGIA GENERAL ASSEMBLY INTRODUCES MAJOR FUNDING INITIATIVE Legislation will generate millions to fund state arts and tourism industries Atlanta Members of the Georgia General Assembly announced plans today to introduce legislation proposing the creation of the Georgia Arts Trust (GAAT), an initiative that will create a new source of arts-funding revenue to supplement the state's annual budget allocation. The legislation proposes that the Georgia Arts Trust be established as a 501(c)3 entity for the purpose of creating an endowment for the arts and tourism industries that will facilitate the state's economic and community development, ensure the benefits of arts education to school children and conduct necessary research vital to arts preservation and conservation. It will operate as a charitably funded partnership between the state of Georgia and individual and corporate donors. Georgia Arts Trust Structure As a charitable entity, the Trust can receive, invest and administer funds donated by individuals or businesses or received in the form of grants from the federal government and private foundations. Georgia Council for the Arts will be contracted to provide administrative services, which minimizes expenditures by leveraging the existing staff and expertise as well as by sharing space and technology. Operation of the Trust will be governed by a Board of Trustees comprised of representatives of Georgia's congressional districts and Board members of state agencies including the Georgia Council for the Arts, Georgia Public Broadcasting, the Georgia Department of Economic Development and the Georgia Department of Education. -MORE- GEORGIA ARTS TRUST/Page 2 Additionally, a Board of Advisors will be created to ensure coordination between the Trust's activities and the state's agenda. Georgia Arts Trust Purpose There are several key reasons to introduce legislation to create the Georgia Arts Trust. The Trust will: Assist in the expansion of the non-profit arts and tourism industry Develop new resources for Georgia's arts and tourism industries and assets Increase funding for arts education in the state's K-12 primary schools Conduct essential research, revealing growth or stagnation, that enables the Trust to direct activities towards sustaining the arts and tourism industries. Although Georgia has been ranked as the 11th most giving state in the nation (Giving USA, 2005), arts funding has steadily moved further down the list, often placing Georgia between 46th and 49th. The creation of the Trust will reverse that decline by providing support to two of the state's largest industries. GAAT Funding The first step in funding the Georgia Arts Trust is a one-time $1 million allocation provided through legislative appropriation. This "seed" capital will provide resources for essential activities including, but not limited to, marketing and initial administrative costs. To increase incentives for private donations, individuals and businesses contributing to the Trust will receive a tax credit. Designed to be within the parameters of the state's other tax credits, the Georgia Arts Trust tax credit mandates a 50% cap with a maximum on the annual credit of $5,000 for individuals and $10,000 for corporations and businesses. What makes the creation of the Georgia Arts Trust truly unique in the United States, however, is the requirement that an amount equal to or greater than that contributed to the Trust must be made in the same calendar year to a Georgia non-profit arts organization for the tax credit to be available. It is this requirement that ensures that the Trust isn't viewed as competing with arts organizations for donor dollars and it provides for the state's direct support of the arts and tourism industries. -MORE- GEORGIA ARTS TRUST/Page 3 In a fiscal analysis based on data gathered from the National Center for Charitable Statistics, the Trust could see an annual income of almost $8 million. When added to the approximately $4 million allocated annually to the Georgia Council for the Arts, the state will no longer be rated among those providing limited funding for the arts. The Georgia Arts Trust will provide enough funds for Georgia to raise its per capita investment from the FY2006 amount of $.43 to $.74, moving Georgia from its FY2006 ranking of 46th place to approximately 40th. Rep. Mark Burkholter, Speaker Pro Tempore for the Georgia House of Representatives, is lead sponsor for the legislation. Also in support of the legislation are Rep. Ron Stephens (Chairman, Economic Development and Tourism Committee), Rep. Kathy Ashe (Children and Youth Committee), Rep. JoAnn McClinton (Appropriations Committee), Rep. Tom Graves (Ways and Means Committee). Georgia Council for the Arts The Georgia Council for the Arts is a state agency that provides support for nonprofit arts and cultural organizations throughout the state. Established in 1965 as the Georgia Commission on the Arts, the Georgia Council for the Arts mission is to encourage excellence in the arts, support the arts many forms of expression and make the arts available to all Georgians by providing funding, leadership, programming and other services. Funding for the Georgia Council for the Arts is provided by the Georgia General Assembly, the National Endowment for the Arts and other private and public sources. ###