Costa Mesa Arts Commission raises maximum grants to $5,000, approves FY24–25 awards amid budget shortfall discussion

Costa Mesa Arts Commission members voted unanimously April 3 to raise the maximum individual arts grant from $2,500 to $5,000 and approved the commission's recommended fiscal-year 2024–25 grant awards.

Commissioners voted 7'0'to''00 on the motion to increase the maximum award and later voted 7''to'''approve the grant awards as recommended by the review panel. The panel considered 13 applications; nine met the program's eligibility criteria and, with council support for additional funds this year, all qualifying applicants will receive awards.

Why it matters: The change increases the maximum grant available to local arts organizations and individual projects but comes as staff and the public flagged a structural funding gap. The commission and speakers urged the city to seek larger, sustained revenues and to consider public-arts investments and fee waivers that would stretch limited grant dollars.

The action Loretta Garner, the city's art specialist in Parks & Community Services, presented the staff report and reminded commissioners that registration and outreach for upcoming exhibitions and programs are underway and that the arts grant program guidance had been circulated for review. Garner said the city received 13 applications this cycle and that nine met eligibility rules; she explained the review panel's scoring and said funds were assigned based on score and available monies.

A review panel made up of Jessica Watson (public art manager, City of Eugene), Vicky Schwartz (art teacher, Newport-Mesa Unified School District) and commissioner Fisher Dardarian scored applications. Staff recommended awarding funds to all qualifying applicants this year; commissioners amended the grant guidelines on a motion to raise the maximum award to $5,000 (from $2,500) and then approved the panel's grant recommendations.

What was approved and the vote - Motion: Increase the maximum arts grant award from $2,500 to $5,000. Outcome: approved, motion carries 7''to'''0. (Mover/second not specified on the record.) - Motion: Approve the FY2024'''25 arts grant funding plan and the review panel's award recommendations. Outcome: approved, motion carries 7''to'''0. (Mover/second not specified on the record.)

Garner told commissioners that, under the city's current council policy, applicants must be nonprofit organizations or use a fiscal sponsor if they are individual artists without 501(c)(3) status. Commissioners discussed whether to add a category or separate "artist" bucket in future rounds to make it easier for individual, for-profit gallery owners or unaffiliated artists to receive support through fiscal sponsorships.

Public comment and panelist perspectives Several public speakers urged the commission and the city to seek a larger, sustainable funding stream for arts programming and public art: Jim Fitzpatrick, a long-time arts advocate, told the commission he had obtained a city budget line showing roughly $400,000 annually allocated to arts from the cannabis-tax-related fund and urged the commission to "dream big" and press council for more funding. Mark Kaufman, founder and publisher of Local Arts Magazine, urged a long-term, visible program that signals Costa Mesa's "city of the arts" brand to residents and regional visitors.

Multiple grantees and local arts organizations addressed the commission during public comment, including representatives of Backhouse Dance, the Gibson Foundation and community arts groups who described education, intergenerational and community-based programs the grants would support.

Budget context and next steps City staff presented financial context for the arts master plan funding. Staff explained the arts program receives a half-percent allocation of cannabis-tax proceeds (Measure Q) but that current cannabis-tax receipts are below earlier projections. Staff said the half-percent allocation currently yields roughly $150,000 in the most recent revenue year; council has supplemented that amount from the general fund so the arts program's operating total is presently "a little over $400,000" a year. Staff projected approximately $457,000 for the next fiscal year as they continue work on the master-plan closeout and a planned update.

Commissioners and members of the public emphasized three near-term priorities: 1) pursue options that increase net funding for public art and grants, 2) explore fee waivers or discounted facility rental rates for nonprofit grantees to stretch grant dollars, and 3) consider creating a distinct artist-directed grant or an artist bucket in future guideline revisions.

Staff will return with additional recommended language and background at the commission's next meeting, including: a) suggested edits to the grant guidelines to encourage artist applications and fiscal sponsorships; b) fiscal data on current grantee organizational budgets to support any eligibility thresholds; and c) options for sponsorships and donated support to augment public funding.

Commission business and timing The Arts Commission set the next regular meeting for May 1, 2025. Commissioners asked staff to compile organizational budget data for current grantees and to draft guideline language that clarifies eligibility for individual artists using fiscal sponsors. The commission indicated it will revisit the program rules during the next meeting cycle.

Ending: The commission's funding changes take effect as the city continues a broader budget review; commissioners and community members signaled they will press for larger, durable revenue to expand grants and public art beyond this year's one-time adjustments.