Assemblymember Haney and California Arts Community Restore Critical Arts Funding in Final Budget

SACRAMENTO, CA — 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,” said Haney, Chair of the Downtown Recovery Committee. “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.”

The Performing Arts Equitable Payroll Fund, created in last year’s state budget, was designed to help small, nonprofit performing arts organizations recover from pandemic-related losses, stabilize operations, and pay fair wages to artists and staff. When the Governor’s May Revision proposed eliminating the fund, arts organizations rallied with urgency, warning that the cut would jeopardize their survival.

Arts advocates, who sounded the alarms after the Governor’s May Revise proposed rescinding vital arts funding, echoed Haney’s support for the final budget agreement.

“Assemblymember Haney clearly understood the mission and we could not be more grateful for his leadership,” said Julie Baker, CEO of California Arts Advocates. “State investment in community-rooted nonprofit performing arts organizations is crucial for downtown revitalization, local economies, and social wellness. The Performing Arts Equitable Payroll Fund is a creative economy jobs program with a far-reaching return on investment. This $11.5 million appropriation will support arts jobs through payroll subsidies for small-budget nonprofit performing arts organizations statewide. The program received over $40 million in applications before being halted by the Governor's proposal. With the funding now restored, some applicants will receive awards, but not all will. We are eager to collaborate with the Legislature to secure continued funding for this vital program.”

Since 2023, California’s arts sector has already endured over $70 million in state funding cuts. The Performing Arts Equitable Payroll Fund was poised to be a stabilizing force: applications were already under review from 88% of legislative districts when the May Revision proposed eliminating the program.

For California’s neighborhoods — especially downtowns still rebounding from pandemic-era disruptions — the performing arts are more than entertainment. They are hubs of education, inclusion, and civic identity. With the funding secured in the final budget, advocates say the cultural heartbeat of the state will continue to thrive.