The gala was to feature country fiddler Jana Jae and had been scheduled March 6.
After meeting earlier this week, arts gala committee members made the decision, in large part, because of the uncertain economy.
“We certainly regret having to cancel this year’s event,” said committee chair Cindy Kirkpatrick. “But the reality is that the timing is just not very good.
“The Arts Gala depends a great deal upon corporate sponsorships, and the economic climate right now is one in which we want to be sensitive to our business community. Our local businesses have been very supportive of the Arts Gala and Southeastern, and we will certainly re-visit the possibility of bringing back the event at a later date.”