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Budget & Finance Committee approves Metro Arts grant criteria, allocates 40% to artist "Thrive" program
Summary
The committee approved a resolution adopting grant criteria for Metro Arts that shifts funding toward individual artists through the Thrive program, establishes a fiscal sponsorship option for non‑501(c)(3) artists, and clarifies the spending window through June 30; the measure passed after an amendment and final vote.
The Metropolitan Budget & Finance Committee on Jan. 21 approved a resolution (RS 2025-961) adopting criteria for Metro Arts’ FY25 operating and Thrive grant programs and directing the agency to implement new rules for funding distribution and fiscal sponsorship.
The resolution, as amended, sets a funding split that allocates 40% of the Metro Arts grant budget to the Thrive program for individual artists and artist collectives and 60% to operating grants for organizations. The committee passed the amendment and the final resolution by unanimous votes (amendment: 13-0; final: 13-0).
Why it matters: the action changes how Metro distributes arts dollars, reducing the largest organizational awards and increasing support for independent artists and smaller organizations after a yearlong application backlog. Metro Arts staff said the changes are intended to promote a more equitable distribution of funds and to address delays in the FY25 grant cycle.
Metro Arts’ interim executive director, Ashley Bachelder, told the committee the package is meant to finish awards for applications submitted a year ago and to get the agency back on schedule for FY26. “We are already a little bit behind on FY26 as well. I expect that we'll be back before you in about 3 months asking for approval for the next year grant cycle so that we can begin to get back on track,” Bachelder said.
Key provisions and implementation details
- Allocation and award formula: The resolution directs Metro Arts to allocate 40% of the grant pool to the Thrive program (individual artists/collectives) and 60% to organization operating grants. Thrive awards will fund qualifying requests at 75% of the applicant’s requested budget (for example, a $20,000 request would receive $15,000 under the policy). Metro Arts staff said the largest single organizational award under the new formula will be $63,000, down from $187,000 in the prior cycle.
- Fiscal sponsorship: Because Metro policy and state procurement law require grants to go to nonprofit entities, the resolution permits a fiscal sponsorship model so individuals without IRS 501(c)(3) status may receive funds through a nonprofit fiscal sponsor. The policy allows fiscal sponsors to charge administrative fees of up to 10%; Metro Arts staff said sponsors are not required to charge fees.
- Effective dates and reporting: Legal and finance staff told the committee that the criteria take effect when the council approves the resolution and that award spending must be completed or obligated by June 30 of the fiscal year. Finance clarified that the contract period cannot extend past June 30 and that grantee reporting (as specified in the amendment) will be due July 15.
- Legal and budget condition: Arts counsel Tess Ortiz Marsh explained that the Metro code gives the arts commission authority to adopt funding policy and that the council approves that policy by resolution. She also noted the budget ordinance conditions the appropriation on the arts commission’s annual report and council approval of the criteria, so until the resolution is approved there is no effective policy that would permit payments for prior months of performance. "It would be just work started from this point going forward," Ortiz Marsh said when asked whether the council could authorize retroactive payments.
Discussion highlights and concerns
- Timing and back pay: Several council members pressed administration and Metro Arts about the short timeframe remaining in the fiscal year and whether the council could backdate awards so artists could be paid for work performed earlier. Legal counsel said the criteria cannot be applied retroactively; finance said funds must be spent or obligated by June 30.
- Administrative burden on small grantees: Members asked how the fiscal sponsorship requirement would affect small artists and community groups. Bachelder said Metro Arts is recruiting nonprofit partners willing to serve as fiscal sponsors and that a template letter of agreement is part of the policy package designed to clarify expectations between artists and sponsors.
- Accountability and contract terms: Committee members sought clarity on contract end dates and reporting deadlines. Metro Arts staff indicated an amendment would be filed to specify June 30 as the spend-through date and July 15 as the grantee reporting deadline; the amendment passed before the final vote.
Votes and procedural notes
- Amendment to clarify effective/spend-through dates and reporting: passed 13-0. - Final resolution (RS 2025-961) approving Metro Arts’ FY25 operating and Thrive grant criteria as amended: passed 13-0.
The committee’s action starts the process for Metro Arts to distribute awards under the new criteria for the FY25 grant pool and asks staff to complete outreach and sponsorship arrangements so payments can be made under the clarified timeline.
