The fund, which only launched this year, was meant to offset the cost of complying with laws that require theaters to treat performing artists as employees rather than independent contractors.

“This is not for big galas or events or executives,” said San Francisco State Assemblymember Matt Haney, who supports keeping the fund in the budget. “This is money that goes directly to employ artists. And we know that we need artists in the world. We certainly need artists in California right now.”

Newsom’s proposed budget comes on the heels of major federal funding cuts to the arts and humanities, and the Trump administration’s announced desire to eliminate the National Endowment for the Arts, the National Endowment for the Humanities, and the Institute of Museum and Library Services.

Opponents say cutting the state fund could have major repercussions for the arts, without significantly affecting the bottom line. “This is not going to ultimately fill out a $12 billion deficit for the state of California,” said Julie Baker, CEO of California Arts Advocates and California for the Arts, “but it is going to potentially decimate small nonprofit performing arts organizations in the state.”