Missouri Arts Council warns that proposed cuts would force steep reductions to grants across districts

Michael Donovan, executive director of the Missouri Arts Council, told the House Budget Committee the council's proposed transfers face multi‑million‑dollar reductions in the governor's FY2027 recommendation and said the cuts would have immediate effects on grant awards across the state.

Donovan told lawmakers the Arts Council's mission covers two main areas: community programming and school arts education. He said about 90% of the council's budget is paid out as grants and that if the recommended reduction is enacted "we will cut proportionally because we want to make sure that we are in every district." He described arts funding as a workforce‑readiness and economic development tool and cited the council's prior study estimating a $1.7 billion statewide economic impact and 13,000 related jobs.

Committee members asked how the council would respond operationally to the cut. Donovan said the choice is binary: reduce the number of grants or scale existing grants. He and several lawmakers stressed the importance of maintaining outreach to rural and underserved districts; Donovan said his office had worked intentionally to reach nearly 100% of senate districts and 97% of House districts this year.

Lawmakers also sought clarity on revenue sources. Donovan explained the nonresident athletes and entertainers tax (described in testimony as generating about $40 million annually) is statutorily distributed: 60% to the Arts Council, 10% each to the Humanities Council, Public Broadcasting, State Libraries and Historic Preservation — but he added that in practice the Arts Council "has never received 60%." He described the athletes tax receipts as subject to appropriation and said the revenue stream should continue over the next five years, potentially increasing with major sporting events.

Several representatives gave district examples of the "ripple effect" from arts funding, citing festivals, creative districts and school programs supported by council grants. Donovan offered to provide a legislative report and district‑by‑district breakdown to the committee and said the council would follow up with the chair.

The committee did not take a vote on the Arts Council's transfers during this hearing.