As state leaders search for ways to cut costs, a giant finger is pointing toward the arts.

Members of the Nevada Arts Council say Governor Jim Gibbons' proposed state budget could mean a nearly 50% percent cut to art services and programs in our state.

They say the move would mean a giant step backward for Reno development, as well as a crippling effect on our already shaky local economy.

Reverse back 15 years and downtown Reno was a different place.

"It was dark. It was dreary. Once dark hit, people didn't come downtown," said Tim Jones, Chair of the Nevada Arts Council.

There was no movie theater, no high-rise condos, and few businesses besides casinos that catered to tourists. Jones says in 1996, that all changed.

A new festival, called "Artown" entered the scene. Tourists flocked to the area and locals began spending more time downtown. Businesses noticed, and began staying open later. More businesses moved in...and the arts in Reno were alive.

"I think it's great in the summertime because we have more visitors in town," said Jessie Garibay of Reno.

"It really helps with diversity and culture and keeps everybody moving forward," said local high school student Naomi Buell.

Jones says the arts are about much more than what happens in a gallery or a concert hall. He says even those who don't appreciate art, most likely do appreciate a healthy economy.

Jones says the arts are a solution to our state financial problems, not an expenditure.

"The arts generate jobs, taxes. The arts create a generous amount of cultural tourism. All of that feeds into our city and state's economy," added Jones.

Jones says while downtown Reno once relied on casinos to stay afloat, it now relies on the arts. He says cutting arts funding could mean throwing away decades of hard work and money spent on bringing culture, development, and wealth to our area.

"You gotta get them down here for something because people don't gamble like they used to. So at least if you have those things down here, there's activity," said longtime Reno resident, Wanda Mosier.

"It's going to end up like this on the weekends, no people. That's what this area is all about. That's what makes it so beautiful. The arts," added Reno's Greg Hultquist.

Advocates for the arts say all of the downtown activities and businesses would suffer if the arts were to be paired down or cut out completely.

Already, we've seen some of the effects of the economy on arts in our area. The Nevada Opera had to cancel it's upcoming performance of "The Circus Princess." Also, the Nevada Museum of art had to shut it's doors one extra day a week to help keep costs down.