AAM expects tough fights in FY 2008 to secure even modest increases in spending for the Institute of Museum and Library Services (IMLS), National Endowment for the Arts (NEA), National Endowment for the Humanities (NEH), National Science Foundation (NSF) and other federal agencies that support museums.

While the House of Representatives has moved quickly through the Democrats' first 100 hours of legislative agenda this year, the outstanding FY 2007 appropriations bills remain in limbo. Many federal agencies—including IMLS, NEA, NEH and NSF—are operating under the funding constraints of a continuing resolution that expires on Feb. 15. The agencies will release their FY 2008 funding requests on Feb. 5, when President Bush will deliver his budget proposal to congress.

The leaders of the Appropriations Committees, House Chairman David Obey (D-Wisc.) and Senate Chairman Robert Byrd (D-W.V.), have indicated that they will bring forward a year-long continuing resolution that would hold funding at FY 2006 levels. Agencies have been slow to release information on how this will affect their operations and grant-making activities. Without new funding, AAM anticipates that many agencies will have to scale back any new initiatives and reprogram funds for grant awards to cover mandatory pay raises and other overhead increases, such as rent.

Upcoming battles over federal spending are likely to be more heated with Democrats controlling both houses of Congress and a Republican in the White House. President Bush already has called for a significant reduction in the number of congressional earmarks (funding designated for a specific project or institution by Congress). Meanwhile, Democrats have approved provisions to shed more light on earmarks and reinstated rules that would require lawmakers to pay for increases in federal spending or tax cuts by increasing taxes or cutting spending elsewhere.—Eileen Goldspiel

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