SOMBA K'E/YELLOWKNIFE - The Canada Council for the Arts is reviewing its grant programs and has cancelled its February application deadline, leaving Folk on the Rocks strapped for cash for its 2011 festival.

For four of the last five years the society has received funding through the Canada Council's Music Festival Program Project grant, which provides a maximum of $20,000 per festival.

In 2010, Folk on the Rocks received $18,000, said Penny Ruvinsky, executive director of the summer music festival.

"We don't have the luxury of excess funds in this society," she said. "We work from festival to festival.

"As most non-profits are in Canada, we're always walking a fine line, and it gets difficult to be able to fund what it is we need to do and to be able to ensure that our mandate continues to be honoured."

The grant suspension announcement was made last week, a few weeks before the Feb. 15 deadline.

"What we enormously regret was the shortness of the notice that this deadline was going to not happen," said Russell Kelley, head of the Canada Council's music section.

An internal review is being conducted to ensure all of the council's programs are as effective as possible, he said.

The Music Festival Program Project grant is given to non-profit groups on a year to year basis; it's not long-term funding, Kelley said, adding that Folk on the Rocks is an unusual case, having received the funding on a fairly regular basis.

On average, the festival has received $15,000 per year, he said.

"Without that support it becomes even more difficult for us to continue to do our job," said Ruvinsky.

"It's hard for presenters all across the country, which will make it hard for artists and for audiences because it's the presenters that bring the two together."

The festival's overall budget for 2011 is $630,000. Twenty per cent of that is provided by grants, Ruvinsky said.

The Canada Council grant the festival received last year was used to fund the festival's collaboration, which brings together Northern and southern artists to create an original piece of music.

Grant or no grant, Ruvinsky said the collaboration will still be included in the July 14 to 17 festival.

"It has to go on because it's a hugely popular piece of the festival," she said. "Many of the artists come up for lower wages, for lower fees than they would usually work for particularly because they are so enthralled by the collaboration, and the audience really looks forward to it."

Although the Folk on the Rocks Society is committed to the event, Ruvinsky said she isn't sure how the society will make up for the shortfall.

"We need to have a look at our budget. We have to look at where we can possibly cut from."

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