Photo: newsom budget cuts impact the arts in california © Photo Credit: CA.gov

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.