Carol C: How were the National Endowment for the Arts and the Arizona Theatre Company funded?
I am sure you are aware that the National Endowment for the Arts is a federal agency and is funded by the federal government. Employee's health care is NOT paid by the agency (at least when I worked there).
The Arizona Theatre Company is funded by ticket sales, donations from individuals, corporations, private foundations, grants from the federal government, and state government. Less than 1% of it's budget comes from federal sources. Health care is paid for by the Company and the employee.