A comprehensive analysis of state arts agencies in the 50 states and in the District of Columbia, Puerto Rico, the U.S. Virgin Islands, Guam, and American Samoa is presented. Data were collected from interviews with agency directors and agency reports as of fiscal year 1974. The report is organized into eight chapters. Chapter 1 examines budget and finances at state and federal levels, private funds, expenditures, and types and methods of budget presentations. Chapter 2 describes mandated purposes, functions, practices, and trends of the agencies. Chapter 3 focuses on program emphases, restrictions, mandates, criteria of funding decisions, matching funds, and associated foundations. Chapter 4 details the distribution of project funds in terms of primary and secondary recipients, distribution by art form in each state, types of activity assisted, initiation and location of projects, audiences, and matching funds. Chapter 5 discusses arts agencies' relationships with departments of education, other state agencies, and local government. Chapter 6 outlines management practices and organizational structure. Chapter 7 describes characteristics, number, salaries, organization, and adequacy of state paid staff. The final chapter analyzes past developments and the future financial outlook. (KC)