Fiscal Pressures, Institutional Context, and Constituents: A Dynamic Model of States’ Arts Agency Appropriations

Abstract

This report focuses on state government appropriations to state arts agencies (SAA), a primary figure in arts and cultural policy in the United States. A dynamic panel-data estimator can identify the fiscal, institutional, and demographic determinants on SAA appropriations. Agency budgets are particularly sensitive to past appropriations, past state revenues and NEA grants, some demographic variables, party control of state government, and state budgeting rules. Federal funds attract, rather than crowd out, state appropriations. While the influence of some demographic variables may be shifting over time, income growth continues to explain much of SAA appropriations.