Yesterday, Governor Schwarzenegger released his much anticipated 2008/09 Budget. As expected, it reveals a 10% across the board cut in many line item allocations. Of particular interest to the arts field is the Arts Education Block Grants, which, aside from the 10%, reduction, remains intact.

The reduction in funding is on par with other departments and we think that's just fine. But, keep in mind, this budget cycle is just beginning and we must continue to remain tuned into this process and ready to respond should any additional changes occur.

The California Arts Council is also looking at a $124,000 proposed cut. This cut will eliminate one staff position and reduce travel and training costs. However, on the positive side, the agency is looking at a slight increase in its Special Projects fund. The proposed reduction does not seem to affect the CAC's Federal allocation, which, combined with the License Plate revenue, is keeping the agency afloat. State museums and cultural institutions are not so fortunate. With already limited funding, these 10% cuts, presented as permanent, may not be recovered anytime soon.

In the meantime, these agencies will have to work harder to raise funds through private foundations, corporations and individuals. Stay tuned as this story is just beginning to develop and will continue to have many twists and turns as other sectors begin the hard fight to protect their line items.