Whangarei District Council has reportedly cut funding for the arts and community sector in the city by $400,000.
The Whangarei Museum, Art Gallery and various community groups, including the Citizens Advice Bureau, are affected.
A review was held behind closed doors and the council has not yet made the result public.
But a council source says about $400,000 has been cut from the budget.
The Whangarei Museum and Heritage Park says its funding has been cut by 30%.
Director Linda Wigley says the cut is devastating - especially when the council has seen fit to make a loan of $300,000 to the Northland Rugby Union.