Don’t Let California Cut $11.5M in Arts Funding

Dear SFBATCO Community,

We don’t often ask this—but today, we need your voice. Governor Newsom’s May budget revision proposes cutting all $11.5 million from the Performing Arts Equitable Payroll Fund (PAEPF), a vital program created by SB 1116 to support small nonprofit arts organizations in complying with AB-5. SB 1116 was introduced to address the disproportionate burden AB-5 placed on arts organizations—while massive corporations like Uber and Lyft poured millions into Prop 22 to avoid the law entirely, nonprofits like ours were left to absorb the full impact.

We had to dramatically restructure our operations to comply, taking on significant new payroll costs to ensure artists and arts workers could be hired legally. To provide some context: in 2024, SFBATCO had only 8 year-round staff members. However, we added 97 more temporary employees to payroll over the course of the year for our productions and programs. This is not only a massive administrative burden; it is extremely expensive.

The PAEPF was supposed to be a remedy. Now the rug is being pulled out from under us—and it's a clear example of how our government can fail those without corporate power. This is an all-hands-on-deck moment. SFBATCO spent weeks applying for PAEPF support and qualified for over $150,000—funds that would directly support jobs for artists, technicians, and staff. If the fund is eliminated, we’ll be forced to make some very difficult decisions. And considering all of the other Bay Area organizations that qualify for PAEPF funding, the result could be hundreds of lost jobs in the sector.

Please join us in taking the following actions:

  1. Email the CA State budget committee at AsmBudget@asm.ca.gov and c/c the consultant of the subcommittee, Genevieve McCloy at genevieve.mccloy@asm.ca.gov. Find an email template below.

  2. Call the budget committee’s office at (916) 319-2099.

  3. Call your legislator’s office. You can fund your legislator here: https://findyourrep.legislature.ca.gov/

  4. Call the Governor’s office at (916) 445-2841

In community,

Adam Maggio
Managing Director
SFBATCO

  • To: AsmBudget@asm.ca.gov
    Cc: genevieve.mccloy@asm.ca.gov

    SUBJECT LINE: URGENT: Theatres NEED the Performing Arts Equitable Payroll Fund

    Hello, Budget Committee,

    I’ve just learned that Gavin Newsom is proposing to cut all of the funding for the Performing Arts Equitable Payroll Fund and that absolutely cannot happen.

    Post-pandemic, live theatre is deeply struggling—over 25% of Bay Area theaters have closed since 2020; an absolutely staggering statistic.

    The PAEPF grant program received such an overwhelming response that it was oversubscribed in the first 24 hours, which is very telling regarding the state of funding for the arts.

    Applicants, including organizations making a positive impact in my own community, spent a great deal of time preparing and submitting the incredibly detailed and lengthy application which are now under review and we’re expecting to hear updates at any time.

    Receiving these funds would be transformative for every organization who applied. The program’s $11.5M allotment is a drop in California’s overall budget, but will act as vital seed money to stabilize an industry that contributes 7.5% of California’s GDP. If these funds don't come through, we will continue to lose more theatres and more jobs, worsening the severe economic distress that the arts and culture industry has been experiencing for years. The recent NEA cuts and upheaval are already creating so much chaos, more cuts will only add to that, especially as many other state, city, and district grantors are also now telling us to expect significantly reduced grant funding to committed awards.

    Small nonprofit arts organizations are also small businesses, and small businesses make up the backbone of the American economy. To maintain a healthy state economy and healthy local communities, we must provide public funding for the arts industry.

    Cutting this funding is unimaginable during a time when our communities deeply need the arts. Please don't fail the small organizations striving to keep our freedom of expression alive.

    Thank you for listening,
    [Your name]

  • Phone script template you can use/revise, with additional talking points below for your consideration:

    • I’ve just learned that Gavin Newsom is proposing to cut all of the funding for the performing arts equitable payroll fund and it absolutely cannot happen

    • Live theatre is deeply struggling post-pandemic; over 25% of Bay Area theaters have closed since 2020

    • This particular grant program received such an overwhelming response that it was oversubscribed in the first 24 hours which is very telling regarding the state of funding for the arts

    • Applicants, including organizations making a positive impact in my own community, spent a great deal of time preparing and submitting the application which are now under review and we’re expecting to hear updates at any time

    • Receiving these funds would be transformative for every organization who applied

      • And we will lose more organizations if these funds don’t come through

      • The recent NEA cuts and upheaval are already creating so much chaos, more cuts will only add to that

      • The existing dollars can’t begin to fund all of the requests, but to fund none of them is unimaginable

    Additional talking points:

    • The program received such an overwhelming response that it was oversubscribed in the first 24 hours and the application portal was closed in less than 10 days.

    • Applications are under review and applicants are expecting to hear updates at any time

    • There has been more than 6 months’ work done on getting the application process to this point

    • Applicants spent a great deal of time preparing and submitting the application.

    • Not only would it be devastating to lose these desperately needed funds at this point, it would also be a big waste of money

    • If the funds are pulled now all of that work and money spent by both the state and applicants is just wasted.

    • Performing arts organizations around the state are desperately clinging to the hope of these funds, and we will lose more organizations if these funds don’t come through.

    • The recent NEA cuts and upheaval are already creating so much chaos, more cuts will only add to that

    • The existing dollars can’t begin to fund all of the requests, but to fund none of them is unimaginable

    • Jobs will be lost; small nonprofit arts organizations will shutter. This is not an exaggeration.

    • In California, the arts and culture sector contributes 7.5% of our state’s GDP. And small nonprofit arts organizations are also small businesses, and small businesses make up the backbone of the American economy.

    Phone script and talking points courtesy Annalisa Tkacheff and Melissa Mei Jones of Silicon Valley Shakespeare and Melissa Hillman from Theatre Bay Area.

SFBATCO