Save the Performing Arts Equitable Payroll Fund
5/19/2025 | California Arts Advocates
On May 14, the Governor issued the “May revise” to the CA 25-26 budget. This revision included reverting $11.5 million allocated to the Performing Arts Equitable Payroll Fund (PAEPF) back to the General Fund and cancelling the program.
July 1
Thanks to the Legislature, a series of budget bills signed on July 1 restores the $11.5 million for the Performing Arts Equitable Payroll Fund that Governor Newsom proposed to cut in the May revise. This funding will now go to small budget nonprofit performing arts organizations across the state for payroll subsidies to support arts jobs. Over $40 million in applications were received for the program before it was halted by the Governor's proposal. While some applicants will receive awards, not all will. Our future advocacy will focus on securing continued funding for this program. In the meantime, please join CAA in thanking our Legislative champions and the Governor who signed the bill by downloading this easy-to-post social media toolkit.
The budget also includes a trailer bill SB 132 that expands the Film/TV tax credit from $330 million to $750 million. The second step to securing the state’s position as a global entertainment hub will come this week, as AB 1138 (Zbur), the California Film and Television Jobs Act, moves forward in the Senate Appropriations Committee.
While funding for the California Arts Council local assistance program remains flat at around $20m, a separate $2,500,000 shall be available for the Historic South Los Angeles Black Cultural District, an appropriation championed by Senator Lola Smallwood-Cuevas.
While celebrating this funding, we also hope the Legislature will restore funding to the cultural district program. This grant program, now open at the CAC, unfortunately only offers a state designation with minimal appropriation. To empower cultural districts as engines for community and economic development, restored funding is essential.
The ongoing work of securing and increasing funding for California's vital arts and culture sector demands our continued vigilance. We currently rank 39th in the U.S. for per capita investment in our state arts agency. Furthermore, California's State Budget is reliant on Federal funding, and additional cuts could lead to more budget bills this year. While we acknowledge recent advocacy successes, the effort must persist. That is why your support for our work is critical. If you are not yet a member, please consider joining today.
Press Release
Assemblymember Haney and California Arts Community Restore Critical Arts Funding in Final Budget
Assemblymember Matt Haney (D-San Francisco), Chair of the Downtown Recovery Committee, joined California artists, small theaters and venues, and arts nonprofits in celebrating the inclusion of $11.5 million in funding for the Performing Arts Equitable Payroll Fund in California’s final state budget, reversing a proposed cut in Governor Gavin Newsom’s May Revision. The funding preservation comes after months of vocal advocacy from artists, nonprofits, and lawmakers like Haney, who warned that eliminating the fund would have dealt a devastating blow to small theaters, dance companies, and music groups across the state.
"This is a huge win for our arts communities and for California’s creative economy. These small venues create vibrancy in our cities and neighborhoods. I’m proud that the Legislature recognized how essential this funding is and stood with us to keep the arts alive in California."Haney, Chair of the Downtown Recovery Committee
June 24
We are thrilled to announce a major advocacy win: the $11.5 million for the Performing Arts Equitable Payroll Fund (PAEPF) has been restored in AB/SB 102, the amended budget bill for 2025-26. Next, the bill will proceed to the Assembly and Senate for floor votes before heading to the Governor’s desk.
This achievement underscores the power of sustained advocacy, a result of the grassroots coalition work of the SB 1116 coalition, which includes Arts for LA, the Association of California Symphony Orchestras, Theatre Bay Area, Theatre Producers of Southern California and dedicated individuals in performing arts organizations across the state. It also highlights the direct lobbying strength of Actor’s Equity and CA Arts Advocates, the sole comprehensive lobbying organization for California’s arts, culture, and creative industries. As we approach our fiscal year-end, your support is essential. Join CAA today to help us reach our goal.
In addition, the bill includes funding to the California Arts Council of $2.5m for the Historic South Los Angeles Black Cultural District. These funds shall be available for expenditure or encumbrance until June 30, 2028, and up to 1 percent of this funding may be used to support administrative costs. There is also about $300,000 for two positions to provide outreach and contract or grant management activities to further expand programs into communities and populations that continue to be underrepresented in the arts. As the budget bills progress we will keep you posted on the final outcomes.
June 15
The Performing Arts Equitable Payroll Fund (PAEPF) has advanced significantly in the legislative process, with lawmakers challenging the Governor’s May Revise proposal to cut $11.5 million in funding. The PAEPF's inclusion in the legislative budget is a crucial step towards securing these vital funds.
We now await the Governor’s response to the Legislature’s budget. It is imperative to emphasize to Budget leadership and the Governor that this $11.5 million, while seemingly small in the overall California budget, is not new funding and is critical for the survival of small nonprofit arts organizations.
These organizations are essential drivers of job creation, community vitality, and downtown revitalization across California. For every 100 jobs in the performing arts, an additional 156 downstream jobs are supported. This funding is not merely a lifeline for the arts; it is fundamental for broader community and economic development. The arts deliver significant positive social and economic impact, and protecting and investing in freedom of expression is more critical now than ever. We must Save the PAEPF!
Actions You Can Take to Save the PAEPF
Join Our Letter Writing Campaign
Call Your Governor
Leave a comment on budget on the Governor's Website
Activate Your Local Press
Press release
Actors' Equity Opposes Gov. Newsom's Surprise Proposal to Make Massive Cut to California Arts Funding, Vows to Launch Coalition to Restore Funding for Small Nonprofit Arts Organizations
Equity is calling on the legislature to reverse another year of arts funding cuts in California, which ranks just 35th in state arts funding
Background
The PAEPF stemmed from five years of grassroots and grasstops advocacy and lobbying to support small budget nonprofit performing arts organizations under $2 million with payroll costs due to changes in California employment laws and increased costs of business.
The PAEPF program had opened in March as a first-come, first-served grant program and closed quickly over a 10 day period due to the demand of hundreds of California small nonprofits applying. The Governor’s revision effectively cancels the program as applications are currently under review.
The PAEPF was established by SB 1116, authored and championed by Senator Anthony Portantino has termed out of the California Legislature. Last year’s May revise also included a cut to this fund and advocates were overwhelmingly successful in getting the appropriation back in the final 24-25 budget.
Learn more about the program on the PAEPF webpage.
What CA Arts Advocates is Doing in Response
CAA was in the Capital the day of the May revise, testifying at a joint committee hearing on the Arts on the impact of the Federal cuts when the news was announced. Our CEO Julie Baker was last on the hearing agenda to testify and was able to add the surprising news of the PAEPF cut to her comments. CAA held several meetings that day to educate lawmakers to the need to reinstate the fund in the final budget negotiations. We need the Legislature to push back on this fund reversal and fight for our small nonprofit performing arts organizations. This has always been a grassroots driven campaign with lobbying support from CAA and Actors’ Equity. We were successful last year getting it reinstated and as we stated in our recent joint letter to Budget leadership: “The program is built, demand is evident, and the return on investment—for California’s communities, workforce, and cultural legacy—is clear. Let’s finish what we started.”
For the state arts agency, the CA Arts Council, the May revise does not include any further cuts to the grant program but reverses a proposal to add a staff position. We also have our legislative champions, Assembly Arts committee chair Chris Ward and Senator Smallwood-Cuevas with budget requests to restore the $5m to the agency that was lost last year and Smallwood-Cuevas has also requested a $5m restoration to the CA Cultural District Progam. We will keep you posted as we learn more about these requests.
What Happens Next
As the CA budget process unfolds, the legislature will host a series of hearings on budget topics as part of the listening phase. Due to both lobbying and pressure from advocates, the PAEPF was on the agenda of the Senate and Assembly Budget Subcommittees this week, and it may be agendized again in the next coming weeks.
And negotiations are underway as each house produces a budget that will ultimately be reconciled with the Governor’s May revise. A final reconciled budget must be passed by June 15th and signed by the Governor within 10 days after.
Here's How You Can Take Action
- Sign the petition: Demand the CA legislature to restore the Equitable Payroll Fund!
- Make phone calls: Call Your State Legislator Campaign
- Engage your local press: Use this press release template
- Activate your network: get your colleagues, audiences, board members and supporters involved - stay tuned for social media toolkits and other resources
Stay Updated!
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