Business Oregon staff outline plan to create Oregon Arts and Culture Development Office under bill to merge arts boards

Business Oregon presented the Oregon Arts Commission and Oregon Cultural Trust programs to the joint Ways and Means committee on March 17 and flagged House Bill 3048, a community‑driven proposal to create a standalone arts office and a single oversight board.

Director Sipon Jing and senior program manager Leora Spanko reviewed the Cultural Trust’s funding sources — donations, license‑plate revenue and a cultural trust appropriation — and the Arts Commission’s portfolio of grant programs that support nonprofit arts organizations, artists and capital projects. Spanko said the Arts Commission funded roughly 600 nonprofit arts organizations this biennium with grants ranging from $2,000 to $30,000 and highlighted programs including sustaining arts (operating support), Arts Built Communities, arts learning, arts access (ADA alignment) and artist fellowships.

On governance, Business Oregon told the committee that House Bill 3048 would: 1) abolish the current Arts Commission and Cultural Trust boards and create a single Oregon Arts and Culture Development Board; 2) establish a new semi‑independent Oregon Arts and Cultural Development Office modeled on the Oregon Film and Video Office and transfer duties, powers, funds and grant programs currently administered by Business Oregon to the new office effective July 1 of the following biennium; and 3) keep treasury‑held arts trust accounts under Business Oregon custody while giving the new board authority over spending decisions. Agency staff said the bill is an agency concept driven by community work groups and does not create immediate budgetary impact but would change governance and operational responsibilities.

Spanko told lawmakers the Cultural Trust’s tax‑credit mechanism — where donors who give to a cultural nonprofit and to the Cultural Trust can receive a state tax credit — is unique among states and helps direct donations to cultural nonprofits. Staff said the Cultural Trust currently holds about $40 million in a treasury account and that most annual donation revenue is returned to the field as grants; programmatic expenditures include Cultural Coalitions and Tribes (county and federally recognized tribe allocations), cultural development grants and partner agency grants.

Committee members asked about timelines and how existing programs, including the Heritage Commission and Oregon Humanities partnerships, would transition; Business Oregon said the proposed office would need budget and staffing authorization and that grant funds and statutory accounts would follow the new board’s directions if the bill passes.

Ending: Business Oregon said it will provide the committee additional materials on the HB 3048 draft, the list of community work‑group members, and the timelines and mechanics for transferring programs and funds if the Legislature approves the concept.