California Legislature reinstated the $11.5 million Performing Arts Equitable Payroll Fund to assist performers and maintain small venues. Originally proposed for cuts by Governor Newsom, advocates expressed concern about the impact on nonprofit organizations. The fund, initiated this year, helps theaters cover increased payroll expenses due to AB5, a law that classifies artists as employees instead of independent contractors. It is available to nonprofits with revenues under $2 million, allowing them to receive reimbursements. Advocates reported substantial application numbers prior to the budget proposal cuts and aim for continued funding.
The payroll fund was established to alleviate the financial burden on small performing arts organizations due to AB5, which mandates treating artists as employees.
California Arts Advocates highlighted the urgency of the fund by noting that over $40 million in applications had been received before the funding was threatened.
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