Urbanowski: What California’s final budget means for arts and culture in San Jose

On Sept. 18, Gov. Gavin Newsom signed Assembly Bill 113, the 2026 Budget Bill Jr., which includes significant new investments in California’s arts, culture and creative sector. This final 2026-27 state budget includes more than $80 million in new cross-agency investment in the arts — the largest single-year expansion of state arts funding since 2021.

The budget includes an increase in funding for the California Arts Council to provide grants to arts organizations across the state; renewed funding for the Performing Arts Equitable Payroll Act to distribute funds to pay artists providing services in local communities; resources for the California Cultural Districts program, which celebrate culture and accelerate economic impact in unique, state-designated neighborhoods including San Jose’s own Japantown; and $37.2 million in passthroughs to various arts and culture organizations across the state.

All of these programs benefit residents of Santa Clara County by strengthening our local arts and cultural infrastructure, supporting artists and cultural workers, expanding access to arts experiences for youth and advancing a creative economy that contributes to our region’s economic competitiveness, workforce and quality of life.

But the momentum for this increased investment did not come from the top. It came from a persistent grassroots effort.

In November 2025, the Coalition of County Arts Agencies, which includes SVCREATES representing Santa Clara County, and California Arts Advocates — a statewide advocacy organization on whose board I serve — submitted a joint budget letter to Newsom. This letter requested an increase in the California Arts Council budget from the current $21 million to $50 million, coinciding with the council’s 50th anniversary.

In January, when Newsom’s budget proposed flat funding of $24 million for the California Arts Council, an amount lower than it was 25 years ago, local communities rose up to object to this systemic underinvestment in a sector that contributes significantly to quality of life and economic impact for residents of the state.

Artists make California vibrant, innovative and culturally rich, yet our state ranks 35th nationally in per capita arts funding. When the state budget allocates just $0.53 per person to the arts, it’s clear how little we’re investing in the creative workers who shape California’s identity and economy. Arts champions across the state decided that the time has come for our funding priorities to reflect the true value of creativity in California.

Through sustained advocacy of residents across California and the commitment of legislative champions in both chambers, our message was heard. Arts and cultural production contributes $288.9 billion to California’s economy — 7.5% of the state economy — and supports more than 821,000 arts and cultural jobs, with workers earning $136.2 billion in wages and benefits. State leadership and funding are critical to an inclusive and resilient creative economy that empowers artists, cultural workers and entrepreneurs while strengthening California’s workforce, economic competitiveness and global leadership.

I wrote about this advocacy effort in a February column, and today we celebrate its success in securing a revised budget allocation. We extend our thanks to the governor, our legislators and all our friends and neighbors who supported this campaign.

As Julie Baker, CEO of California for the Arts and California Arts Advocates, said, “Today’s budget victory is the direct result of thousands of Californians who refused to accept the chronic underfunding of arts and culture. This includes artists, cultural workers, educators, creative businesses, mayors and community members who showed up, made calls and demanded that their Legislature recognize the arts as essential public infrastructure.”

Much of these new funds will be distributed to local arts organizations and creative enterprises through competitive grant programs administered at the state level, so it will be a few months before we know exactly which San Jose and Santa Clara County residents and organizations will benefit.

However, amid the pressures of a volatile economy, reduced federal funding and a growing need for the power of the arts to heal, transform lives and connect us to our humanity and heritage, the financial need is great.  Local arts groups are well-positioned to utilize new state funds to serve and uplift residents throughout our region.

You can follow the progress of these new grant dollars through the system by signing up for the California Arts Advocates newsletter, reading the California Art Council’s weekly eblast or following your favorite local arts group. And if you need suggestions for which artists or arts events to visit, check out Content Magazine.