In his report on the funding practices of the New Jersey State Council on the Arts, Secretary of State DeForest B. Soaries Jr. raised almost as many questions as he answered.

Issued a week ago, the report calls for the abolition of the North Jersey Challenge Initiative, which last year sucked $290,000 from South Jersey's share of arts council funding.

Soaries wants to re-examine the Legislature's stipulation that 25 percent of grants go to South Jersey cultural institutions. But until that review takes place, he recommends the Legislature continue to allocate one-fourth of funding to South Jersey.

Forced by the Legislature to boost funding for South Jersey, the council has increased its grants since 1998. Unless the Legislature defends South Jersey's allocation, the larger arts groups in North Jersey will once more eat into the South's share.

In his report, Soaries defends the council's decision to charge the South for statewide programs like NJN's State of the Arts. But he recommends the council alter its three- year funding cycle.

This would enable an arts group whose application is rejected to reapply in the next year for general operating support instead of waiting three years to apply again.

Soaries suggests the council create a program for under- served communities. That would benefit South Jersey. So would the funding increase he suggests for county arts agencies.

The report makes no recommendation about relaxing the four-to-one match that requires arts groups to raise four dollars for every one they receive from the council. Many South Jersey arts groups find that match onerous.

Nor does the secretary's report address the question of whether to allow emerging arts groups to count in-kind donations for the match. Most South Jersey arts groups receive valuable contributions of time and expertise from professionals, but they cannot count those contributions toward the match.

While making these recommendations, Soaries dodged the ethical issue raised by the presence of council members on the boards of the arts groups that devour a major portion of the $20 million grants budget. He also didn't address the makeup of the council.

Although South Jersey has four members on the 17-seat council, most positions of power are claimed by influential members from North Jersey.

These members set the standards for the allocation of arts council funding and write the rules which favor the better staffed and more sophisticated arts groups in the North.

Council members with clout tend to live in Essex and surrounding counties. Until all 21 counties in the state have representation, the council will not reflect the interests of the entire state.

Robert Baxter is the arts critic for the Courier-Post. He can be reached by telephone at (856) 486-2436 or by fax at ( 856) 663-2831 and by e-mail at rbaxter@courierpostonline.com.