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Arts funding from the state of Pennsylvania is changing, which could make some artists and arts organizations ineligible for grant funding.

The Pennsylvania Council on the Arts is rebranding its granting operation as a new entity called Pennsylvania Creative Industries. The new granting guidelines are in line with a new strategic plan that leans more heavily into creative entrepreneurship and economic development.

“We identified five key areas that we would be investing in, including asset development, workforce development, community development, visibility and policy,” said Karl Blischke, executive director of Pennsylvania Creative Industries.

“We’re looking at those areas as a way to raise the impact of the creative sector in Pennsylvania, and to support all the participants in it as they look to grow and be impactful for Pennsylvania,” he said.

Pennsylvania Creative Industries will distribute $9.59 million in arts grants this year, according to the state budget.

Many stakeholders across the state say the changes will remove state support for most organizations. In the Philadelphia region, about 60% of small arts organizations that had benefitted from small state grants will no longer be eligible, according to the Greater Philadelphia Cultural Alliance. In York County, that number rises to 80%.

Alliance President and CEO Patricia Aden Wilson is “gravely concerned.”

“Our smaller arts organizations are those organizations that very often define our neighborhoods,” Wilson said. “Those are those programs that are in church basements and community rec centers and are often volunteer-led. They are the touch point for arts and culture for so many people across the state. We are very concerned that these changes will eliminate or diminish the capacity of these organizations that are the life blood of our creative sector.”

Wilson said the lobbying efforts by the alliance and other arts groups across the state contributed to the Pennsylvania Creative Industries budget, which increased 12.5% over last year. But the new funding guidelines were drafted without consulting local arts leaders.

“As we lobby for their funding, where’s the transparency in how they’re going to use that funding?” Wilson said. “Where’s the accountability to their stated mission of empowering the arts and culture community?”