Governor Newson’s proposal to reverse funds for
Equitable Payroll Fund will negatively impact jobs
LOS ANGELES (May 22, 2025) — Employees at performing arts organizations across the state are expressing dismay at Governor Newsom’s May Revision proposal, which includes the reversal of funds previously committed to California’s recently instituted Performing Arts Equitable Payroll Fund.
The proposed $11.5 million cut to the Fund, which comes on top of a troubling trend of deep, disproportionate cuts to arts and culture funding in California, represents a tiny fraction of California’s budget. Eliminating the program will have little if any impact on the state’s budget deficit, yet will create outsized hardship for workers in the California performing arts sector.
“We understand that the state faces a challenging budget deficit and are prepared to support you in making difficult decisions,” states Theater Producers of Southern California board Vice President Beatrice Casagran. “However, the proposed clawback of 100% of the state’s entire investment in the Payroll Fund will eradicate six years of bipartisan legislative efforts to address cascading negative impacts that have led to dire economic instability for workers in the live arts.”
California’s performing arts sector generates significant economy activity, providing over 250,000 jobs statewide and driving a powerful multiplier effect: for every 100 performing arts jobs, an additional 156 jobs are supported in other sectors through downstream impacts. On average, each performing arts job results in $13,287 in additional state and local tax revenue. The state and local tax revenue generated by the non-profit performing arts sector is expected to exceed $433 million per year.
“How many jobs, and how much of that $433 million in annual tax revenue, are we willing to jeopardize for a one-time savings of $11.5 million?” asks Casagran. “We urge the Legislature to reject the Governor’s proposed cuts to this necessary funding. The program is built, and demand is evident, with applications to the fund coming from 38 senate districts and 66 assembly districts. The return on investment—for California’s communities, workforce, and cultural legacy—is clear.”
The urgency is real. Despite being number one for arts jobs and home to more artists than any other state, California ranks 35th in the nation for arts funding. If this program is cut California may see an exodus of its arts workforce as arts jobs will have to be cut.
According to Redlands Symphony executive director Kevin Eberle–Noel, “Without this funding, our only option will be to hire fewer musicians, reduce staff, and deliver fewer services to our community.”
For other orchestras, theaters and dance companies, these cuts present an existential threat.
“As a company that primarily employs actors and technicians of color, as well as other minorities, losing this funding would mean these vulnerable members of our community would lose a pillar of support in a system that is already jeopardized by the current federal administration,” states Towne Street Theatre COO Sarah Allyn Bauer.
Should these funds be reversed, the losers will not just be workers in the performing arts sector, but the hundreds of communities they serve and support throughout the state.
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