California Arts Council 5-24-24 Meeting

Notes prepared by Teri Ball, Program Manager, CFTA

Summary notes –

This was a special meeting called to address the issues around the Governor’s May Revise proposed budget.

Full agenda and 05/24/24 meeting packet are available on the CAC website.

The meeting began with a call to order, land acknowledgement, and establishing a quorum. The meeting took place at the Japanese American Museum in Los Angeles and Ann Burroughs, President and CEO offered welcoming comments. 

Item 5: May Revise Proposal - Relocate the California Arts Council within the Governor’s Office of Business and Economic Development
by Executive Director Danielle Brazell and Deputy Director Ayanna Kiburi. 
A written copy of the presentation should be posted to the CAC website in the coming days, but these are some highlights:

The presentation began with a note that at this point there are limited details available about the proposals but the desire is to share what is known. It was also noted that the contents of the May Revise were a surprise to the CAC.

The presentation included background information on the California Arts Council and also the budget process.  Highlights are included below:

The CAC enabling legislation established the Arts Council: “to, among other findings, promote the employment of artists and those skilled in crafts in both the public and private sectors.”  It was also noted that The Governor’s Office of Business and Economic Development (GO-BIZ) is the lead entity for economic strategy and the marketing of California on issues relating to business development, private sector investment and economic growth.

The policies and allocations for the CAC’s local assistance grantmaking are set by a policy Council consisting of eleven council members; one appointed by the Senate, one by the Assembly and nine by the Governor.

Budget Process overview: On January 10 the Governor releases a budget for the following fiscal year. Mid-May the Governor releases a revised budget in light of the fiscal outlook, this has to be done by May 14th. The Legislature then reviews, debates and makes proposed revisions by June 15th. The Governor finalizes the budget 12 working days later and the budget becomes law.

The May Revise included a relocation of CAC to Governor’s Office of Economic Development (GO-BIZ), with no other changes to the authorizing structure or the policy structure of the body, or its structure, mission or scope.

This decision is not definite until the budget is finalized.

To make this change, the proposal is to revise the authorizing legislation to place CAC within GO-BIZ; facilitate a net-zero transfer to the CAC budget and staffing positions; complete the transfer by July 1, 2024.

Ex. Director Brazell posed the question to Council and the field wondering what other needs there might be, beyond grantmaking, that might be facilitated by the move.  Things like capital resources and finances. What are the possible positive impacts of being housed within GO-BIZ, and being put within an economic development frame.  She noted she is Interested in looking for new models to make the sector sustainable and resilient. She wondered what it could mean “if we are actually able to have an agency that can meet the diverse needs of California’s creative sector at scale?”

The presentation was followed by a period of public comment. There was a strong turnout for public comment and they actually ran out of time before finishing the in person speakers.

The Council then had a discussion period on this subject. The general consensus was that there is concern about the move to GO-BIZ, and that there definitely needs to be more information before this move is considered. 

Lauren Pizer Main, consultant for the Joint Committee on the Arts, made brief comments including stressing the importance of advocacy and for everyone to be contacting their representatives on these issues. 

Agenda Item 6:
Presentation on Budget Proposed Cuts by Ex. Director Brazell and Deputy Director Kiburi
The presentation had the following highlights:

- Proposed to cut $10 million from Local Assistance Budget for this year and next, and 7.8% cut to operations budget.
- The Council Proposals being made today are intended to help prevent disruption to the field if these cuts are not reversed.

Presentation was followed by Council discussion.

Agenda Item 7 – Voting item – The final vote was 4-4 and therefore failed.  There will be no change to the grant programs.
Program Policy Committee Recommendations for revision of Program Guidelines

Voting Item: The Programs Policy committee recommends that the Council vote to close the GEN-24 grant program.

Considerations for Council on Policy recommendation:
All eight 2024 programs could not possibly be funded at meaningful levels with the Governor’s proposed $10M reduction. GEN-23 awarded two-year grants to Tier 1, 2, and 3 organizations, with an additional augmentation of $400,000 for Tiers 2 and 3. Since GEN funding is active through 2025 while other 2024 programs are not yet funded, the Committee recommends that Council vote to close GEN-24. This closure would redirect resources from expanding a currently funded program to other un-funded programs.

Voting Item: The Programs Policy committee recommends that the Council vote to extend the grant application deadline from June 6 to June 20, 2024 for all open programs.

The committee presented their recommendations.  Their presentation was followed by Public Comment and full council discussion.

There was a motion to accept the committee recommendations, the vote was 4-4 so the recommendations were not approved and the programs will stay as is.  No change to the announced programs and no change to the deadlines.  The second voting item was contingent on the passage of the first item so a vote was not required on the second item.