The Indiana Arts Commission revamped the way it allocates money out of concern about future state budget cuts, which would further reduce grants available to arts organizations.

Washington, D.C.-based Americans for the Arts says the state had 9,950 arts-related businesses last year, a five-year low and down 3.9 percent from 2008.

The Indiana Arts Commission on Friday morning accepted a staff recommendation to alter its regional partnership program, but will delay action until next month.

The staff of the Indiana Arts Commission is proposing to revamp a regional partnership system that it enacted 13 years ago as a way to fund the arts in all 92 counties of the state.

A 20-percent budget reduction for the Indiana Arts Commission will affect as many as 400 grant-dependent organizations across the state. The agency’s overall budget will shrink from $4 million in 2009 to $3.2 million for the next two fiscal years.

Indiana and Indianapolis arts agencies will receive more than a half-million dollars in federal stimulus money to help save jobs at local organizations, the National Endowment for the Arts announced today. A second round of American Recovery and Reinvestment Act funding includes $250,000 for the Arts Council of Indianapolis.