A series of budget bills signed by the California Legislature on July 1 have restored the $11.5 million Performing Arts Equitable Payroll Fund, intended to help pay performers and keep small performing arts venues in operation.
Governor Gavin Newsom had proposed cutting the fund in his May revision of the state budget, raising alarms for artists, venues and arts advocates. “It is going to potentially decimate small nonprofit performing arts organizations in the state,” Julie Baker, CEO of California Arts Advocates and California for the Arts, told KQED in June.
The payroll fund, which only launched this year, is meant to offset the cost of complying with AB5, the 2019 law that requires theaters to treat performing artists as employees rather than independent contractors. Since the law’s enactment, small performing arts groups have seen their payroll expenses balloon.
The Equitable Payroll Fund is only available to nonprofits with an adjusted gross revenue under $2 million; organizations submit for reimbursements on their payroll expenses.
California Arts Advocates, which announced the reinstatement of the payroll fund in a Tuesday press release, argues there is a clear need for the fund. “Over $40 million in applications were received for the program before it was halted by the Governor’s proposal,” the statement read. “Our future advocacy will focus on securing continued funding for this program.”
