Introduction
Getting paid consistently as a performing arts worker is harder than it looks. You show up, you rehearse, you perform, but whether there’s a reliable paycheck waiting depends heavily on whether the organization hiring you can actually afford one. For many small nonprofit theater companies, dance groups, and music organizations in California, that’s been a real and worsening problem.
That’s exactly the gap that the Performing Arts Equitable Payroll Fund (PAEPF) was designed to close. If you’re an independent artist, musician, stage manager, or technician working with small nonprofits, this fund affects you, even if your name isn’t on the grant application. Here’s what it is, how it works, and why it matters to your livelihood.
What Is the Performing Arts Equitable Payroll Fund (PAEPF)?
The Performing Arts Equitable Payroll Fund, commonly known as PAEPF, is a California state grant program that reimburses small nonprofit performing arts organizations for a portion of their payroll costs. The goal is straightforward: help these organizations hire and retain employees so arts workers can count on steady, fair pay.
It’s not a loan. It’s not a competitive arts prize. It’s a payroll subsidy, structured specifically to make it more financially viable for small arts groups to keep people on staff.
How Did PAEPF Come About?
PAEPF didn’t appear overnight. Senate Bill 1116, authored by Senator Anthony Portantino, established the fund after five years of sustained grassroots and policy advocacy. The campaign was driven by a coalition of arts unions, nonprofits, and workers who saw small performing arts organizations being squeezed by rising payroll costs and increasingly complex California employment law requirements.
The bill was signed into law in late 2022. By early 2025, the program was finally open for applications , and the response was immediate and overwhelming, which we’ll get to shortly.
Who Administers the Fund?
PAEPF is administered by the California Office of the Small Business Advocate (CalOSBA) and managed day-to-day by California for the Arts, the statewide arts advocacy and service organisation.
How Does PAEPF Actually Work?
At its core, PAEPF works as a reimbursement program. Eligible organizations submit payroll records and receive a portion of those costs back from the state on a quarterly basis. It’s not advance funding; organizations spend first and are reimbursed after.
The Tiered Reimbursement Model Explained
One of the most important design features of PAEPF is its tiered structure. The smallest organizations receive the highest percentage of reimbursement, while slightly larger ones receive progressively less. This is intentional: it targets the most financially vulnerable organizations first, rather than distributing funds evenly regardless of need.
In the first round of PAEPF, individual grant amounts ranged from just over £11,000 to more than £351,000, with 46% of awardees receiving under £100,000. The fund reached organizations across 29 Senate Districts and 42 Assembly Districts, a broad geographic spread that reflects just how widespread the need is.
What Payroll Costs Are Covered?
PAEPF covers payroll expenses for anyone hired as an employee; that includes actors, musicians, directors, choreographers, technical staff, designers, and administrative workers. If you’re on payroll at an eligible organization, your wages are potentially covered by this reimbursement. The program was specifically designed to support jobs for both production and non-production employees.
Who Is Eligible for PAEPF Funding?
PAEPF targets a specific slice of the performing arts sector: small nonprofit organizations with an adjusted gross revenue under $2 million. To qualify, an organization’s primary mission must be the creation or presentation of performing arts in productions that are advertised and open to the public.
Which organizations qualify?
Eligible organizations include nonprofit theater companies, dance companies, choral groups, presenting organizations, performance venues, and local arts councils that produce or present performances. In addition to standard 501(c)(3) nonprofits, Model C fiscally sponsored organizations are also eligible, provided they operate under a valid Model C agreement and are not individual artists.
Who Is Excluded from the Program?
PAEPF is intentionally narrow in scope. The following are not eligible: after-school programs, conservatory programs, foundations, social clubs, summer camps, youth educational programs, youth performing arts groups, and individual artists who are fiscally sponsored. If your work doesn’t fit neatly within a small nonprofit structure focused on public-facing performances, you’ll need to look elsewhere for funding support.
Why Does PAEPF Matter for Independent Artists and Freelancers?
You might be wondering: if PAEPF goes to organizations rather than individuals, why should you care as a freelancer or independent artist? The answer is that your livelihood is directly tied to the financial health of the organizations that hire you.
How a Stronger Organisation Means More Work for You
When a small theater company or dance nonprofit can’t cover payroll, the first thing to go is often contract work. Freelancers and gig workers absorb the cuts before staff do. PAEPF addresses this by giving organisations more financial stability , which translates into more consistent hiring, better pay rates, and longer contract periods for the artists and technicians they bring in.
The program was projected to support as many as 20,000 full-time, part-time, and seasonal employment opportunities annually. That’s not a number to overlook. It signals that the indirect benefit to the broader arts workforce is massive.
The Bigger Picture: Arts Funding Cuts and What’s at Stake
The performing arts sector is a significant economic force. Arts and cultural economic activity in the US reached $1.17 trillion in 2023, accounting for 4.2% of GDP , outpacing transportation, agriculture, and construction. At the state level, a 2023 study found that every 100 performing arts jobs in California support an additional 156 jobs in other sectors.
Yet despite this economic contribution, California ranks just 35th in state arts funding, and the sector has faced over $70 million in state arts funding cuts since 2023, alongside major reductions to the National Endowment for the Arts. For many small performing arts organisations, PAEPF isn’t a bonus , it’s the last thread of stability keeping them operational.
What Happened When PAEPF Launched , and What’s Next?
The story of PAEPF’s first application round is a revealing one. It tells you both how urgent the need is and how fragile arts funding can be.
The 10-Day Surge: Demand That Shocked the Sector
When the program opened in March 2025, it was fully subscribed within just 10 days. Over $40 million in applications poured in before the program was even paused. Applications came from 88% of California’s legislative districts , demonstrating that this is not a regional issue but a statewide crisis.
That level of demand, in that short a window, makes the case for PAEPF better than any advocacy campaign could.
Funding Battles and the Road Ahead
Shortly after applications closed, Governor Newsom’s May Revision proposed reverting the $11.5 million allocated to PAEPF back to the General Fund, effectively cancelling the program mid-review. The response from the arts community was swift. Actors’ Equity alone activated nearly 6,000 letters to the legislature, and budget hearings saw sustained public comment from artists, organizations, and community members.
By July 2025, the funding was restored. But the fight isn’t over. Advocates are now pushing for $40 million in PAEPF funding in the next state budget cycle , a recognition that $11.5 million, while critical, only scratched the surface of what’s needed.
PAEPF Is a Signal, Not Just a Grant
For independent artists and freelancers, PAEPF represents something bigger than a single funding program. It’s a signal that arts work is real work , and that payroll equity in the creative sector is a legitimate policy goal worth fighting for.
If you work with small performing arts nonprofits in California, stay informed. Follow California for the Arts for program updates, and consider adding your voice to ongoing advocacy efforts at California Arts Advocates. The more visible the demand for sustained arts funding, the stronger the case for keeping programs like PAEPF alive and expanding them.
The arts won’t sustain themselves on passion alone. Payroll matters. And now, at least in California, there’s a fund that says so.