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Albany Update:  Budget News 2008

 

Abandoned Property Passes NYS Legislature; Does it Have a Future?

Abandoned property legislation for museums passed the state legislature this session and is poised to move to the governor’s desk for signing.  There is considerable opposition to this legislation within the governor’s office of counsel.  Specifically, the concern focuses on the lack of judicial review of any abandoned material to which a museum may wish to claim title.  The bill’s sponsors and MANY believe that museums already have access to declaratory judgment of ownership in a court of law.  This is an additional and expensive burden to the already lengthy process outlined in the bill.

 

We are asking you to contact the governor’s office this week to urge him to sign this bill into law.  Refer to the following bill numbers:  A00995A/S3593A.

 

Here are some key talking points you might wish to use in your communication with him:

 

·         This bill was drafted to help museums manage abandoned property in their collections while also preserving the rights of lenders, donors and claimants to reclaim their property. 

 

·         For the purposes of the bill, “abandoned property” means 1) objects in a museum’s possession from an unknown source – also known as undocumented property – as well as 2) objects loaned to a museum but never returned to the lender – also known as unclaimed property.

 

·         The bill gives museums a legal framework to clarify and acquire title to abandoned property.  It amends existing law (1997) that provides this framework to the New York State Museum.

 

In a 2003 MANY poll:

 

  • 87% of poll respondents reported that unclaimed and undocumented property are burdens for museums regardless of size and discipline.  Current collections management and practice tend to eliminate the probability of museums having abandoned property, but many institutions, especially older ones and smaller ones, do, largely the consequence of loaned objects or artifacts dropped off for potential donations being unclaimed by their owners.

 

  • Of that 87%, more than three-quarters indicated that these objects place a moderate drain on museum resources, including staff, time, and space.  As one respondent noted, “Without legal ownership, we cannot properly care for, conserve or in many cases exhibit these (materials).”  Caring for such abandoned materials is a drain on those museums saddled with them, but at present institutions have no way to gain relief.

 

  • It is stunning that New York remains one of a handful of states (now less than 20) that does not yet have an abandoned property law for museums.  When asked what their institutions need in order to address unclaimed and undocumented items in their care, 62% of respondents specifically indicated that a legal course of action was needed.

Please send a letter or call the governor in support of this bill this week!  In doing so, refer to the following bill numbers:  A00995A/S3593A.

  

The Honorable David A. Paterson, Governor

State Capitol

Albany, New York  12224

 

T: 518-474-8390

F: 518-474-1513

 

It is critical that the governor hears how widespread the support is for this legislation.  He needs to understand the extent of the burden abandoned and unclaimed property places on many of you and he needs to know that judicial review also places an expensive burden on you.

 

2008-09 State Budget Passes:  What’s In It for Museums
The multi-billion dollar budget deficit was the primary factor in the failure of the Cultural and Museum Education Act, which remained a live issue almost until the end.  Museum advocates were hopeful that the act would receive a small amount of funding to start up the program, but even $500,000 was not in the cards.

Regent James Dawson, Chairman of the Regents’ Cultural Education Committee, told UHA/MANY conference-goers that the advocacy work done this year for the bill has laid excellent groundwork for the Act next year.  MANY is enthusiastic that the Regents will continue their support for the Act and we stand ready to participate in ongoing and future advocacy efforts.

The New York State Council on the Arts budget did not receive a lift from the legislature, as is generally the case.  The amount for grants remained at $49M, less a 2% reduction requested of all state agencies by Governor Paterson.  This will most probably mean that those museums receiving general operating support will see an automatic decrease in their next contract by 2%.

There’s some good news, too.  The Arts and Cultural Facilities Capital Grant program, which was originally part of former Governor Spitzer’s Upstate Revitalization Program, was funded at $30M.  This new program is part of the Urban Development Corporation budget and supports the preservation and expansion of cultural institutions. Eligible projects shall include capital improvements of facilities primarily involved with the arts, humanities or interpretive sciences. Individual projects funded shall be for $250,000 or more and shall be required to demonstrate the economic and social benefit of state funding.  This program awaits guidelines and an administrative structure.

Abandoned Property Bill Moves Forward in Legislature
A bill providing legal recourse for museums and historical societies to gain title to unclaimed and undocumented materials in their possession took a step forward recently when the Senate Higher Education Committee unanimously reported it out of committee on April 9th.  MANY officials believe there’s a high likelihood that the Senate will pass the bill soon.  MANY and the bill’s Assembly and Senate sponsors are at work with administration staff with the expectation of securing the governor’s signature this year.

S. 1327-A/A. 272-A – Arts Fund
This bill establishes an arts fund to receive contributions for the support of the New York State Council on the Arts through a personal income tax return check-off.  It has already passed the Assembly this year, where Jonathan Bing is the sponsor.  Contact Senator George Winner, chairman of the Investigations & Government Operations Committee, where the bill is currently under review, and Majority Leader Joseph Bruno and them him to move this bill toward a vote in the Senate.

Update - Museums, Re-enactors Worry Over Plan to Regulate Antique Firearms
An outpouring of concern regarding the regulation of ownership of antique guns, black powder weapons and muzzleloading firearms has led Democratic Assemblyman Michael Gianaris of Queens to modify the language of his bill, A09543, to exclude museums and individuals connected to bona fide reenactment groups.

"We're very pleased with the Assemblyman's willingness to work with museums and the historic reenactment communities to reach an equitable solution," said Anne Ackerson, director of the Museum Association of New York.


"It was not our intent to harm these groups," said Gianaris. "The idea was we wanted to make sure these weapons - because they can be used to inflict harm - at least have a waiting period and background check associated with them. That still ensures that people with mental illness or criminal records don't have access to these weapons."

Testimony Submitted to the Assembly Committee on Higher Education, Public Hearing on the NYS Higher Education Commission’s Preliminary Report
January 24, 2008
The Museum Association of New York applauds the work of the Commission and we strongly support the premise that an increasingly global society needs talented leaders and a skilled workforce, which is achieved through a first-class educational system. 

To that end, I am here today to remind the members of the Commission and the Assembly Higher Education Committee that the state’s 1900 chartered museums and historical societies are members of the University of the State of NY and, as such, make valuable contributions to P-16 education through programming, internship opportunities, and teaching and research collaborations with public and private institutions of higher education.

The Commission’s recommendation of Education Partnership Zones speaks to the involvement of many community partners in increasing P-12 student performance.   I urge the Commission to specifically recognize museums and heritage organizations as educational resources in this effort. 

Here’s why:

·        Museums and heritage organizations in New York State annually provide onsite and in-school programming to more that 6 million school children with a wide variety of standards-based activities lasting anywhere from a class period to a full day, and often in multiple contacts.

·        In 2006, more than 130,000 school children participated in distance learning programs offered by the state’s museums and heritage organizations.

·        Fifty percent of the institutions offering educational programming also train teachers, which is often a critical element in successful student performance.

·        Chartered museums and heritage organizations undertake their educational missions without funding from the State Education Department.  Unlike schools, libraries and public broadcasting, chartered museums and heritage organizations are incorporated and regulated by the Department, but receive no aid from it.

As Harold Skramstad, President Emeritus of the Henry Ford Museum wrote in the publication, An Agenda for American Museums in the Twenty-first Century:  “Museums have helped shape the American experience in the past, and they have the potential to play an even more aggressive role in shaping American life in the future.  They offer a powerful educational model that can help redesign and reform American education, and they can be important centers for community development and renewal.”

For these reasons, it is my hope that the Commission recognizes museums and heritage organizations as full-fledged partners in the educational landscape of New York State.

Thank you.

What is the Cultural and Museum Education Act?
As originally conceived by the Board of Regents, the Cultural and Museum Education Act would provide formula funding to chartered museums along with competitive grant programs to promote innovation in museum education.

Although the initiative was part of the State Education Department's budget submission to the governor, it failed to be included in the executive budget.

Key elements of the Cultural and Museum Education Act are these:

  • the Act is an extension of the Regents approval of new standards for chartered museums and historical societies, which were adopted in 2006
  • the Act is about helping chartered museums and historical societies to be more accountable stewards and educators
  • the Act recognizes for the first time that museums and historical societies are active participants in NYS' community of education
  • the Act is ultimately about improving student performance 

Allocation of the $30 million would include:

·         $15.5 million for formula funding to chartered museums and historical societies that offer certifiable standards-based educational programming

·         $12 million for competitive grants to fund programs that address science literacy, museum programs and resources in classrooms, enhanced exhibition, virtual learning experiences, and professional development for teachers

·         $2.5 million for assessment of the impact of museum education programming and for program administration

Furthermore, as efforts mount nationally for additional federal funding from IMLS for museums, pressure increases for states to develop funding streams to use as a match for federal money.

Museum Association of New York Position on the
Museum Education Act

At its September 2006 meeting, the Board of Regents' agreed to move forward with legislation amending the education law and arts and cultural affairs law to provide formula funding to museums and historical societies that offer verifiable standards-based educational programming to school children and teachers in grades kindergarten through twelve. 

This legislation would also amend the education law to foster innovation in museum education, and amend the arts and cultural affairs law to establish a grant program for performing arts institutions, other cultural organizations and community organizations that conduct curriculum-based educational programs for students and teachers in grades kindergarten through twelve.  An appropriation of $30 million will be sought to fund this program.

Key elements of the legislation are these:

  • the legislation is an extension of the State Education Department’s work with the Regents; it supports the new standards
  • the legislation is about helping chartered museums and historical societies to be more accountable stewards and educators
  • the legislation recognizes for the first time that museums and historical societies are active participants in NYS' community of education
  • the legislation is ultimately about improving student performance 

New York State is blessed with one of the largest and most diverse museum communities in the country.  Museums and historic sites can be found in every region of the state.  While many of our museums are world-renowned, all are significant to their local and regional communities.  New York State’s museums serve as critical resources for students, teachers, and life-long learners.  Each year, museums offer millions of New York State school children opportunities to acquire knowledge and skills they need to participate in the twenty-first century knowledge economy by providing experiential, curriculum-based programs that expand classroom lessons and supplement literacy programs.

As part of the Board of Regents’ P-16 strategy, collaborations among formal education institutions, libraries, museums, performing arts centers, businesses and social service agencies are envisioned.  Together, USNY and its collaborators can improve student performance and close critical achievement gaps.  A key element in the success of these collaborations will be the passage of the Museum Education Act.

The Museum Association of New York (MANY) is a member-based service organization that works on behalf of these vibrant organizations, providing them with networks of information and advocating for higher professional standards.  MANY played a significant role in developing revised standards, which the Regents approved in early 2006.  MANY supports the Museum Education Act as an important step in helping chartered institutions meet the rigors of the new standards.

Museum Association of New York Position on
Abandoned Property Legislation for Museums in New York State

Summary

This essential legislation will provide a crucial opportunity for museums and historical organizations to be better stewards of the outstanding collections in their care by providing legal recourse to address the accumulation of unclaimed and undocumented property in their possession while also preserving the rights of lenders, donors and claimants to reclaim their property. 

At its January 2003 meeting, the Museum Association of New York Board of Directors agreed to work closely with the New York State Legislature and stakeholders to advance passage of this legislation.

Every museum, every collecting institution, large and small, regardless of discipline, struggles with the same problems:  custody of objects lent decades ago for which it is now impossible to trace the lender, and forced custody of objects that were simply left on the doorstep.  Currently, New York State Education Law enables the State Museum to expeditiously resolve these issues.  But every other museum in the state has its hands tied:  it cannot accession the item because it does not have title; it cannot dispose of the item because of potential liabilities to the lender.  Instead, museums are forced to provide expensive, museum-quality care and storage space for things they don’t own.

In 2003, MANY conducted an informal survey regarding the need for this legislation.  Among the findings:

  • 87% of poll respondents reported that unclaimed and undocumented property are burdens for museums regardless of size and discipline.  Current collections management and practice tend to eliminate the probability of museums having abandoned property, but many institutions, especially older ones and smaller ones, do, largely the consequence of loaned objects or artifacts dropped off for potential donations being unclaimed by their owners.
     
  • Of that 87%, more than three-quarters indicated that these objects place a moderate drain on museum resources, including staff, time, and space.  As one respondent noted, “Without legal ownership, we cannot properly care for, conserve or in many cases exhibit these (materials).”  Caring for such abandoned materials is a drain on those museums saddled with them, but at present institutions have no way to gain relief.
     
  • It is stunning that New York remains one of a handful of states (now less than 20) that does not yet have an abandoned property law for museums.  When asked what their institutions need in order to address unclaimed and undocumented items in their care, 62% of respondents specifically indicated that a legal course of action was needed.

Old loans, abandoned property, and objects not serving mission-related goals (or too fragile or too dangerous to be properly cared for) are all examples of why the state’s museums and historical organizations want and need legislation that will help them meet the highest standards of public trust stewardship.  This legislation is a measure that will help preserve scarce museum resources of money, staff, and space – while incurring no additional costs to taxpayers, and imposing no “unfunded mandates” from Albany.

This Legislation and Stolen Property

The state’s museum community is acutely aware of its ethical and moral obligation to reunite stolen property with its rightful owners.  The legislation’s language always exempted stolen property from its provisions.  As the language evolved, two exceptions, which the Museum Association of New York fully supports, are specifically cited:  1) Nazi-era spoliated objects that “changed hands due to theft, seizure, confiscation, forced sale or other involuntary means in Europe during Nazi-era (1933-1945)” and 2) other stolen property reported to a law enforcement agency, insurer or The Art Loss Register.                                            

NYS:  NEW LAW DEFINES USE OF TERM 'MUSEUM'                 
A bill on Education corporation assumed names was signed by the Governor last summer and assigned Chapter 316 of Laws of 2005.  It took effect January 1. 

This law will have a major impact on those museums and other related corporations which are not chartered or incorporated under the Regents, or which came into being without the consent of the Commissioner or the Regents.  Sponsors of A.1794 were Assembly members Barbara Clark, Rhoda Jacobs, and Felix Ortiz.  Sponsors of S.1856 were Senators Kenneth LaValle, Patricia McGee, and Mary Lou Rath.

TITLE OF BILL :  An act to amend the general business law, the education law, the business corporation law, the not-for-profit corporation law, the partnership law and the limited liability company law, in relation to the use of assumed names and corporate names pertaining to education.                                                

Key provisions (taken from "Summary of Provisions" on Assembly web site):

1.  Require education corporations to obtain consent of Regents to operate under an assumed name.

2.  Require that education corporations operating under an assumed name file a copy of their assumed name certificate with the Education Department.

3.  Restrict the use of certain terms in corporate names that connote an educational purpose and to prohibit persons or corporations who are not authorized to do so by a charter from the Legislature or Regents from holding themselves out as a "museum", "arboretum" or similar cultural institution.                                      

4.  Prohibit the Secretary of State from filing an assumed name certificate for a chartered education corporation without consent of Regents.

4.  Restrict certain terms in corporate names that connote an educational purpose: "education," "museum," "arboretum,"  "history," "historical," "historical society," "library," "school," "kindergarten," "prekindergarten," "preschool," "university" or other term restricted by Education Law section 224; "conservatory," "academy," or "institute," or any abbreviation or derivative of such terms, by formally requiring consent of Commissioner.

5.  Prohibit use of or doing business under names "museum," or "arboretum" or any similar name carrying such connotation unless authorized under a special legislative charter or Regents charter or otherwise authorized by Regents or Commissioner.  Violation of this prohibition would be a misdemeanor.

6.  Give any existing entities doing business under such names one year to come into compliance by obtaining consent of Regents or Commissioner.  
 

MANY Testimony to IMLS
Submitted March 3, 2008

Testimony from the Museum Association of New York (MANY) in regard to the effectiveness of current public funding mechanisms, gaps that need to be addressed to assure high quality museum services, and/or alternative funding mechanisms that should be considered in the future.

There are approximately 1900 museums and heritage organizations chartered by the State Education Department and Department of State in New York. On average, the State Department of Education grants provisional charters to 15 new museums and heritage organizations each year.

At the urging of the Museum Association of New York, the Board of Regents of the New York State Education Department approved a vastly upgraded set of standards for all chartered museums in early 2006.  Having the full effect of law, we believe these standards are the first of their type in the country.  Along with new standards, the Department has made initial attempts to provide trustee training and peer review, again at MANY’s urging.

However, all this good work has languished to a great degree because, unlike schools, libraries and public broadcasting, which together will receive in excess of $1 billion in funding from the State Education Department in the next fiscal year, museums and heritage organizations receive no funding from this source. 

Instead, a patchwork quilt of state funding exists across a variety of agencies.  These sources include the New York State Council on the Arts (NYSCA), the Office of Parks, Recreation & Historic Preservation, the Empire State Economic Development Corporation, and discretionary funding directly from legislators.  Special programs of governors or commissioners, which rarely support general operations, are generally not continued as originally conceived beyond an individual’s tenure resulting in facilities and related programs that are difficult to sustain in the long run.  Each program is administered differently, with varying requirements for application and reporting. 

The overwhelming amount of funding available from state agencies goes toward bricks and mortar projects – expansions, new construction, and renovations – followed by curatorial and interpretive-based project support, and technical assistance.  And with the state facing a projected $4.4 billion shortfall in 2008-09, it is unclear how museums will fare this coming fiscal year as far as state funding is concerned.

New York State Council on the Arts (NYSCA)

Only the New York State Council on the Arts offers general operating support to museums.  In 2006-07, the NYSCA Museum Program assessed 212 completed applications, which represented a fraction of the total number of museums in the state.  The Museum Program awarded 179 grants in 2006-07, including general operating support grants, ranging from $2,500 to $210,000 (general operating awards ranged from $5,000 to $210,000).

In its most recent award year the Museum Program provided general operating support to 96 chartered museums, representing $3,864,975 or 72% of the overall budget of the Program. 

Office of Parks, Recreation and Historic Preservation (OPRHP)

OPRHP is the umbrella agency for several funding programs for heritage organizations and historic sites, and for zoos, botanical gardens and aquariums (ZBGA).  The Environmental Protection Fund is a competitive grant program aimed at the preservation of National Register-listed properties.  The ZBGA Program provides the stimulus to develop educational, cultural and recreational programs interpreting our natural heritage as well as support for the permanent collections of eligible institutions.  ZBGA is slated to receive $8.5 million in the state’s next fiscal year.   

The Heritage New York program began as a gubernatorial initiative that is now a program of OPRHP.  The program’s goals are to identify, preserve and interpret historic sites that are linked to a particular historical theme through community outreach and grant programs; foster organizational development of designated sites; and promote heritage tourism through a range of marketing activities.  It runs a grant program that has provided $2.4 million to date to help municipalities and not-for-profit organizations preserve and interpret a Revolutionary War Heritage Trail and Underground Railroad Heritage Trail sites.  There is no provision for operating support, and there is a great likelihood that the entire program will be considerably scaled back in the next fiscal year as the agency’s priorities shift to revitalizing the state’s park system.

Empire State Economic Development Corporation

In addition to a broad range of economic development programs, this state agency oversees tourism marketing, which offers a matching program to counties for tourism promotion.  As part of the governor’s plan to revitalize New York’s economy, a $40 million proposal in the agency’s budget for the next fiscal year is aimed at funding capital projects of cultural institutions.  Currently, eligibility criteria for institutions seeking this funding have not been established.

Counties and Cities – A Mixed Picture

At the county and municipal levels, funding for museums and heritage organizations is highly mixed depending to a great extent on the financial health of local governments.  For example, the city of Buffalo, New York, which has been under a state-appointed financial control board since 2003, cut all its cultural funding in 2001.  As the city’s financial crisis deepened and widened to include Erie County government, the Buffalo and Erie County Historical Society cut its staff by more than 50 percent and cut back its hours of operation between 2001-2005.  While that funding has slowly begun to return, the blow its absence made on the financial stability of these organizations is still being felt. 

At the opposite side of the state, the New York City Department of Cultural Affairs is the largest cultural funding agency in the nation, with an expense budget in Fiscal Year 2007 of $167 million and a capital budget of $1.4 billion over the next four years, the largest capital budget in the agency’s history. The Department extends support to the cultural community in three major ways: through funding for specific cultural organizations in exchange for cultural services offered to the citizens of New York City, through direct subsidies to 18 City-owned museums, historic house museums and heritage sites, and through capital spending for construction and renovation at designated institutions.  In 2003 the Department established the Cultural Development Fund (CDF), a competitive process for allocating program support. 

Federal Formula Funding

Indeed, the highest priority type of public funding among the New York State museum community is for general operations. Federal support of museum general operations, preferably as formula grants, recognizes and supports the educational contributions these institutions make to P-16 students and their teachers (annually 6.6 million school children), and to scholars, to life-long learners, and casual visitors totaling more than 50 million people every year. It also recognizes the economic contributions these institutions make toward the creation of livable communities by sustaining accessible hours of operations, staffing and ongoing programming.

The leverage federal formula funding for museums can provide to state governments is also critical.  This is not lost on us in New York State, where we are currently engaged in seeking parity formula funding for museums through the State Education Department.

Federal Formula Grant Coalition
 

Did you know that the Institute of Museum and Library Services (IMLS) provided $210.5 million to libraries in 2006, while museums received only $36.5 million?  Why the difference?  Federal formula grants given from IMLS directly to the states accounted for $163.7 million of IMLS’ library authorization.

Service organizations representing museums at the state, regional, and national level have joined forces to seek reauthorizing legislation for IMLS in 2009 that includes federal formula grants for museums.  This web site is dedicated to informing the museum community about the work of the Coalition, receiving comments from the field to help drive its work, and asking the museum community for strategic assistance in achieving the 2009 goal.

The Work of the Federal Formula Grants for Museums Coalition:

 

©2008
MUSEUM ASSOCIATION
OF NEW YORK
265 River Street
Troy, New York 12180

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