Patrons at the 2007 Ann Arbor Street Art Fair (Photo: Alan Warren via Ann Arbor News)

LANSING — Some arts organizations in the state are scrambling to develop a response to news that Gov. Jennifer Granholm’s proposed 2010 budget will eliminate grants from the Michigan Council for Arts and Cultural Affairs, an unexpected move that has arts supporters crying foul.

Jennifer Goulet, president of ArtServe Michigan, and Mike Latvis, the organization’s director of public policy, said in a phone interview Thursday that the arts advocacy group was unaware of the proposed elimination of the grants until they were announced by Budget Director Bob Emerson in testimony before a joint meeting of the Senate and House Appropriations committees.

“We’ve got a big fight,” Goulet said. “It’s a deplorable action against creativity and culture in Michigan.”

Latvis went a step further: “No governor has ever done more damage to arts and culture in Michigan as Gov. Granholm just has.”

What kind of impact are they talking about?

Latvis said this current fiscal year, the state doled out $7.9 million in arts and cultural grants. That money went to 290 organizations throughout the state and was leveraged with private funds from individuals, corporations and other donors to the tune of $310 million. Latvis said in the 2009 fiscal year, the grant money helped sustain 9,203 jobs, created 2,206 seasonal jobs and added 2,320 new jobs into Michigan’s economy.

Both Latvis and Goulet noted that those jobs added to tax revenues, as well as spending in the economy, expanding the net impact by millions of dollars. They said their organization was working on a full examination of the economic impact of the arts in the state.

Both also expressed grave concern that cutting arts funding would impact economic development activities.

“This funding cut is not only jobs to organizations and projects, but are fueling the local economy,” Goulet said. “Arts and creativity are a huge economic driver.”

In fact, Granholm has spent years touting the idea of the rise of the creative class and its importance in driving economic development as presented by author Richard Florida in his best-selling book, “The Rise of the Creative Class.” That book drove Granholm’s “Cool Cities” initiative, which identified artistic and other creative assets across the state in an attempt to keep college graduates and younger workers with technology skills from leaving Michigan.

Calls to Granholm’s office seeking comment were not returned.