A new Otis College Report on the Creative Economy, titled "In the Shadow of the Pandemic Cliff," was presented at the Getty Center in Los Angeles. The report, prepared by Westwood Economics and Planning Associates, analyzes financial data from 2011 to 2023 for nonprofit cultural organizations in Los Angeles County, including museums, art schools, and performing-arts groups. It reveals that while revenues for these nonprofits surged by 47% during the early pandemic years due to special relief funding, that support has since faded. By 2023, 60% of surveyed organizations reported less public funding and 51% saw declines in private donations, a trend the report calls the "Covid cliff."
The report matters because it provides concrete data to back up what many arts leaders have been experiencing: a precarious funding environment after the end of pandemic-era aid. The findings underscore the ongoing financial vulnerability of California's creative nonprofits, which play a vital role in local economies, community identity, and social justice. The report's online dashboard offers a tool for long-term planning and funding applications, making it a resource for policymakers and institutions navigating the post-pandemic landscape. Panelists from major organizations like LACMA and Destination Crenshaw confirmed the challenges, noting that tighter budgets are forcing difficult decisions about programming and staffing.