In case you blinked and missed it, the governor of South Carolina (GOP Governor Nikki Haley) used a line-item veto to erase the state arts commission, but the funding was quickly restored by the legislature.
This, and the Kansas story, points out something interesting: state legislatures, even Republican controlled ones, don't want to throw the arts under the bus. That's a small comfort, considering as they're willing to hack and slash so much that it just about destroys the arts council anyways, but they're not willing to let it go away. They'd like to support the arts in name only, at least.