California Governor Newsom Proposes $11.5M Cuts in Arts Funding

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California Governor Gavin Newsom’s recent budget proposal sent shockwaves through the arts sector with a targeted $11.5 million cut. The budget cuts could have far-reaching consequences for music funding and the broader creative community.

While the headline figure for the cut is $11.5 million, critics argue that the true impact could be much larger. Arts advocates are estimating up to 58% cuts for certain arts programs. The $11.5 million slated for elimination comes from the Performing Arts Equitable Payroll Fund (PAEPF), a program designed to support non-profit arts organizations. That includes orchestras, music groups, and theaters with a budget of less than $2 million.

This fund was created from leftover pandemic relief money and helps these smaller organizations comply with California’s AB5 gig worker law—requiring many freelance roles to be reclassified as employees. The elimination of the PAEPF will disproportionately affect small and medium-sized organizations. Many of them rely on these funds to pay musicians, technicians, and their administrative staff.

The San Francisco Bay Area Theatre company says it expected to receive over $150,000 from the fund. Meanwhile, groups like Dance Mission Theater and Hillbarn Theatre anticipate losing six-figure grants. Arts advocates warn that the combined effect of the PAEPF budget cut and a proposed $10 million reduction to the California Arts Council’s Local Assistance Funding could result in a 58% decrease in state support for small non-profit arts organizations. They point out that this would move California’s per capita arts spending near the bottom nationally, ranking 45th out of 50 states.

These cuts are part of a broader response to California’s projected $12 billion budget deficit for 2025/26. These cuts are driven by declining revenues and increased social services costs. Governor Newsom says these reductions are necessary across the board—but the arts sector is among the hardest hit. California was doubly hit when the National Endowment for the Arts withdrew an estimated $25 million in grants across the nation.

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