Cutting off Governmental funding for the arts is a form of censorship. Artists would have to rely more heavily on corporate sponsors who are all too willing to use their funds to ensure their point of view is received by the public, ie Disney unwillingness to show Michael Moore's latest film.
The highpoint of gov't funding was during the 30's when many now well-known photographers, writers, etc. received valuable support. And the community as a whole is so much richer for that minimal investment.
On the downside, can you imagine if George W. appointed a Secretary of Culture - Charlton Heston & NRA would have heroic murals of their armed militia groups on every public building in America.