Baltimore watchdog flags $516,150 in ARPA-funded Artscape talent spending made without required approvals

Inspector General review centers on Artscape 2025 talent costs and budget changes

Baltimore’s Office of the Inspector General (OIG) has found that the city spent $516,150 in American Rescue Plan Act (ARPA) funds on Artscape 2025 music talent without completing required approvals, citing contract and budget-control breakdowns tied to the festival’s planning and execution.

The OIG review focused on whether spending matched the approved ARPA grant budget and whether reallocations and contract amendments followed the city’s documented authorization steps. The findings did not include an allegation of criminal wrongdoing, but they did highlight deficiencies in documentation, approval workflows, and event governance.

Key spending figures cited in the synopsis

The OIG determined that ARPA funds totaling $516,150 were used for payments associated with music performers. The review found that this amount exceeded the grant’s initial $300,000 performance allotment. Two headline acts alone were reported to have received combined payments of $365,500. Nine additional performers were paid a combined $40,650 in ARPA money, with other booking-related costs contributing to the overall talent total.

Separately, the OIG identified $582,809 in ARPA funding that was reallocated without approvals required under the grant conditions, including sign-offs tied to the Chief Recovery Officer and the Board of Estimates.

• $516,150 in ARPA funds spent on Artscape 2025 music talent costs
• $300,000 cited as the grant’s original performance/talent allotment
• $365,500 combined payments for two headline acts
• $582,809 in ARPA funds cited as reallocated without required approvals

Hospitality and VIP reception spending questioned

The OIG review also examined festival-related hospitality spending, including at least $26,546.73 in ARPA funds connected to a mayoral VIP reception during Artscape weekend, along with $6,856.82 in state funds referenced in records for the same effort. The review noted that certain hospitality riders included alcohol-related requests and that documentation was insufficient to confirm what was ultimately purchased in some instances due to missing receipts or a lack of a receipt requirement in the reviewed files.

Records also referenced direct ARPA payments totaling $10,860.25 to six vendors for VIP services. In addition, documentation cited a $10,000 ARPA payment for hosting an invitation-only Artscape after-party.

The OIG’s public synopsis framed the episode as an oversight and process failure, emphasizing the need for clearer authority lines, stronger documentation standards, and consistent budget-approval controls for large city-supported events.

City response: eligibility defended; process improvements urged

City officials argued that ARPA support for Artscape fit within the federal “revenue replacement” category and that the festival could be treated as a government service for funding purposes. The city also stated that ARPA funds were not directly used to purchase alcohol and described the VIP reception spending as covering costs such as facility rental, room setup, décor, and signage.

The OIG’s recommendation called for standard operating processes for major events like Artscape to define roles, clarify budget and contract authority, strengthen vendor selection and documentation requirements, and reduce the likelihood of unapproved reallocations or late-stage amendments that bypass formal review.