The Regional Arts Commission of St. Louis sought to reassure artists and the public as it faces a state audit and growing concerns about its finances, oversight and future grantmaking.
During a virtual town hall last week, RAC leaders addressed questions about funding, explained recent financial decisions and emphasized the organization’s role in supporting the region’s arts sector.
The performance audit, launched by Missouri State Auditor Scott Fitzpatrick after a whistleblower complaint, is examining whether RAC misused taxpayer funds. Unlike a financial audit, a performance audit reviews operations, compliance, efficiency and effectiveness. An initial review identified potential issues including excessive administrative costs, questionable bonuses, weaknesses in grant oversight and other expenditures that may violate state law.
“Arts strengthen our community,” said board chair Contantino Ochoa, who described the sector as a “crucial part of the region’s civic fabric.” He noted that RAC has awarded more than $100 million to artists and cultural organizations throughout St. Louis.
RAC leaders used the forum to respond to concerns and reaffirm the commission’s long-term commitment to sustaining the region’s arts ecosystem.
Ochoa also suggested that outside entities have expressed interest in redirecting arts funding. He said that in May 2024, a sports commissioner contacted RAC leadership, arguing the funds could generate a greater return on investment if spent on sports. Business and tourism leaders have also discussed shifting some hotel-motel tax revenue toward convention and sports efforts, according to reporting by the St. Louis Business Journal and the St. Louis Post-Dispatch.
During the town hall, RAC President and CEO Vanessa Cooksey acknowledged ongoing concerns about the timing of grant payments. She said fourth-quarter payments this year are being scheduled based on responsible cash management and the timing of hotel-motel tax revenues.
“We are actively exploring options for earlier payments or phased payments,” Cooksey said. “We understand timing matters for your operations,” she added, addressing grantees attending the virtual meeting.
Cooksey also pushed back on claims raised by the auditor, saying employee compensation has been appropriate and reviewed through the organization’s oversight process, according to the Business Journal.
Cooksey emphasized that her decisions are guided by a central responsibility: ensuring the arts in St. Louis remain accessible, supported and sustainable. “The decisions we make now will influence what St. Louis looks like for decades to come,” she said.
However, RAC will not accept new grant applications this year. Cooksey said the decision reflects a conservative approach based on actual, rather than projected, revenue.
According to the auditor’s office, the review is examining whether RAC exceeded a state law capping administrative expenses at 15% of annual revenue, issued bonuses that may be prohibited under the Missouri Constitution and failed to adequately follow up on some grant awards.
Founded in 1985, RAC is the region’s largest public funder of arts and culture, distributing grants to nonprofit organizations and individual artists in St. Louis city and county. The organization is funded through a dedicated share of the hotel-motel tax collected in both jurisdictions, with state law limiting how those funds can be used.
In recent years, RAC has played a key role in directing federal pandemic relief funds to the arts sector. In November 2022, the St. Louis Board of Aldermen approved $10.6 million in American Rescue Plan Act funding for the commission. So far, RAC has distributed $9.5 million of those funds, supporting 195 individual artists and 75 organizations.
Local arts leaders have said the sector supports more than 19,000 jobs and generates nearly $600 million annually in economic activity — surpassing the impact of all local sports franchises combined.
The arts community was hit hard during the COVID-19 pandemic, as tourism declined and tax revenues fell sharply. Funding for RAC dropped from $9.5 million in fiscal 2019 to $2.8 million in 2020. While revenues have since rebounded, they have not yet returned to pre-pandemic levels. RAC reported receiving $7.5 million in tax revenue in fiscal 2024.
The auditor’s findings could ultimately determine whether additional oversight or policy changes are needed, with state and local authorities responsible for addressing any confirmed issues.
The St. Louis American’s “Living It” content is produced in partnership with the Regional Arts Commission.