SALEM (AP) - State funding for arts and culture, essentially an endangered species for the last few years, is poised to make a dramatic comeback in 2007.

Gov. Ted Kulongoski's budget recommendations for the next two-year fiscal cycle which will come under legislative scrutiny starting in January, including a $2.9 million increase for the Oregon Arts Commission's $1.26 million budget.

There also is funding of a new “Main Street” program for developing historic downtowns and a return to funding for Oregon Public Broadcasting and the Oregon Historical Society.

Neither OPB nor OHS has seen any state operating money for four years.

OPB, which had received $1.7 million in general fund support until four years ago, will receive $3.75 million.

All but $1 million of that will go to meet a federal mandate that OPB's analog transponders be converted to digital, at a cost of around $100,000 each. The analog transponders must be shut down in 2009 by federal mandate.

The additional $1 million is $500,000 a year to operate the rural systems.

The alternative, OPB officials have said, is a substantial loss of service in communities such as John Day, Baker City and Pendleton.

The Oregon Historical Society, which operates a library and museum in Portland and has collections of film, photographs and artifacts spanning Oregon history, will receive $2.8 million toward its $3 million annual budget.

The money comes at a critical time for the society, which has slashed operating costs twice in 2006, laying off 12 people and canceling several unfilled positions.

“I think it will be very important for us,” said George Voigt, who joined the historical society last month as its new executive director. “It gives us a moment to catch our breath and make some exciting decisions about the future of our collections.”

Although it has remained in the governor's budget, the arts commission has been squeaking through on a lean budget of $1.26 million in the current biennium and had to do fundraising to get adequate operating funds for the cultural trust.

“Obviously, it's a big increase for us,” the commission's executive director, Christine D'Arcy, told The Statesman Journal newspaper. “We think it's a real vote of confidence in the arts commission.”

Part of the infusion of money would go to the Oregon Cultural Trust, which raises money to benefit arts, heritage and humanities, to cover marketing and promotion costs.

Money will also go to a new “Creative Oregon” initiative, designed to promote links between the arts and business, nonprofit and for-profit groups. And $500,000 would be set aside to expand training opportunities for artists.

Roger Roper, assistant director of heritage programs at the Oregon State Historic Preservation Office, said the Main Street grant will play into the goal of increasing heritage tourism.

The program's goal is to save historic buildings while revitalizing downtowns as commercial hubs.

The state coordinator will work with communities to set up local Main Street organizations and will have some money for grants, both to hire staff and for projects like facade improvements.

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Information from: Statesman Journal, http://www.statesmanjournal.com