Senate finance committee gives positive recommendation to Tennessee Arts Commission budget

The Senate Finance Ways and Means Committee on March 18 gave a positive recommendation to the Tennessee Arts Commission's fiscal 2026 operating budget following a staff presentation and committee questions.

Anne Pope, executive director of the Tennessee Arts Commission, told the committee the governor's recommended budget for the agency is $17.6 million, which the commission described as including about $13.6 million in state funds, $1 million in federal funds and roughly $3 million from other sources, including use of reserves. "The mission of the Arts Commission is to cultivate the arts for the benefit of all Tennesseans in their communities," Pope said during the presentation.

Committee members pressed agency staff on how those funds are allocated and on several specific programs. Pope said the commission has distributed grants to every county in the state and that demand for grants is rising; agency slides and testimony said the commission distributed $12.6 million through its regular grant programs in FY24 and received a higher volume of applications for FY26. The commission noted it has obligations from the state nonprofit arts and culture recovery fund and reported most of that funding has been awarded as grants, with a small contract balance retained for ongoing monitoring.

The commission said it proposed a small efficiency reduction of $25,500 in discretionary appropriations and a one-time use of reserves to meet increased grant demand. When asked about the planned use of $2.8 million from reserves, Pope said the commission anticipates specialty license-plate sales will replenish part of the reserve balance and that staff and the commission will review actual sales before finalizing the board-approved budget in May. "We watch it like a hawk," Pope said of reserves and specialty-plate revenue projections.

Committee members also asked about a person-centered music program funded earlier with a CMS grant (described by the commission as awarded from a nursing-home penalty fund). Pope said the program ran roughly three and a half years with extensions during the pandemic, that participating nursing homes retain equipment and training materials, and that continuation depends on future CMS action. "We don't have any funds to continue it right now," Pope said.

Senators asked for clarifications on the specialty license-plate program that is a revenue source for the Arts Commission. Agency testimony said for newly approved specialty plates the sponsoring nonprofit receives 50 percent of net proceeds, the Arts Commission receives 40 percent (used for statewide grants) and 10 percent goes to the state highway fund after production costs. Committee members requested follow-up from the Department of Revenue about the highway-fund distribution; the chair noted the Department of Revenue provided a figure for fiscal 2023 remittances to the highway fund during the meeting.

After the presentation and questions, the committee entertained a motion for a positive recommendation on the Arts Commission budget. The clerk recorded 10 ayes and the committee's recommendation was entered as positive.

Why it matters: The Arts Commission supports nonprofit arts organizations, local governments and schools across Tennessee. The budget recommendation advances the governor's proposed FY26 funding level to the next step of the legislative process and preserves grant support used by organizations across all 95 counties.

What’s next: The committee vote gives the Arts Commission budget a positive recommendation for consideration by the full Senate and further action in the legislative process.