The geographic distribution of arts funding by the National Endowment for the Arts (NEA) and selected state art agencies is examined in this report. Data collected from the 1985 Survey of Public Participation in the Arts was used to determine if variations in geographic participation rates help explain differences in government support of the arts. Funding patterns for jazz, music, opera, musical plays, drama, ballet, and art museums were examined through an analysis of arts-related financial support in the 14 most populous U.S. states. Findings indicated that there was not a statistically significant relationship between arts funding and population distribution. However, there appeared to be a strong relationship between government funding and the relative distribution of arts organizations, and generally the relationship between government arts funding and the distribution of artists was positive. Data were tested using a number of selected models, and comparisons among them are provided. Fourteen tables and 28 endnotes are included, and appendices contain 3 additional tables showing: (1) dependent and independent variables for all 50 states; (2) participation rates for the 14 most populous states; and (3) subregions' composition and participation rates. (JHP)