Without the screeching and outrage of the moralists taxpayer funding, most shlock artists simply wouldn't exist.
Purveyors of trash-as-art do not thrive simply because they set out to shock and offend people - although they do tend to attract publicity in that way. Such "artists" are frequently subsidized by involuntarily contributions - often taken from the very people whose values and beliefs the same "artists" seek to ridicule. To remove the subsidy would not be censorship. If artistic works were made to stand on their own merits (for sale or lease without subsidy), easily-offended souls could still object, but would have no right to interfere with the artists' right to arrange for their private display.