NEA Wins Increase in Funding Bill
September 21, 2000
NEA Wins Increase in Funding Bill
IRA Rollover to Charity Bill Also Advances
A House-Senate conference committee has approved an increase of $7 million for the National Endowment for the Arts (NEA) in the negotiations over a final FY2001 Interior Appropriations Bill. This puts the total arts appropriation at $105 million.
The additional arts spending, included in the Senate’s version of the money bill authored by Sen. Slade Gorton (R-WA), was opposed by House Republican leaders until a compromise was offered directing that the new money be used for outreach and arts education to both rural and under served areas. These purposes correspond with the kinds of priorities proposed in NEA’s Challenge America initiative.
The agreement on arts funding, reached on September 20, marks the first time since 1995 that any increase for the NEA has made it successfully through the congressional appropriations process. Small cuts and level funding have been the annual outcome for the NEA appropriation. Last year, a proposal to increase money to the NEA’s budget narrowly failed in the House. A Senate vote in 1999 to add $5 million to the arts spending was then rejected by a joint conference committee.
A final settlement on all provisions in the Interior Appropriations Bill is expected to be reached before the end of the week. The fate of the bill remains uncertain, with the possibility of a presidential veto being raised by other issues in disagreement. The arts spending increase, however, is final.
The credit for the good news must be shared by all of you who have worked hard to convince your legislators in Congress that the NEA money does good work at home and the federal arts agency deserves the additional resources for getting the job done. Thanks to all of you for your steadfast dedication to our joint advocacy efforts.
IRA Rollover to Charity Bill Also Advances
On September 7th, the Senate Finance Committee unanimously passed the Comprehensive Retirement Security and Pension Reform of 2000 Act (HR1102) which contained a provision allowing taxpayers aged 70 1/2 years and older to transfer IRA funds (direct or deferred) to charities, including museums, without paying taxes. This is known as the IRA Charitable Rollover provision.
There is no tax incentive under current law to encourage transfers of excess IRA funds to chairites. Right now, withdrawals from traditional IRAs are fully taxable as income. Enactment of the IRA rollover provision is expected to greatly bebefit charities by accelerating and increasing giving by individuals, who will be able to incorporate charitable donations into their overall retirement savings plans.
ACTION NEEDED: Call Senators Paul Wellstone (202) 224-5641 (e-mail: senator@wellstone.senate.gov) and Rod Grams (202) 224-3244 (e-mail: grams@grams.senate.gov) and ask them to support the IRA Charitable Rollover provision. Thanks!