CalArts Addresses $15M Budget Deficit by Laying Off 12 Employees

The recent layoffs at the California Institute of the Arts (CalArts) have prompted significant concern within the arts community. The prominent arts school located in Santa Clarita announced in July that it would be dismissing 12 administrative employees, citing a $15 million deficit. This decision has sparked debate among faculty and staff who worry about its impact on the institution’s ability to cultivate new artists.

Emily Lytle-Painter, a web and digital media producer at CalArts, expressed disappointment with the layoffs and emphasized the hard work being done to better serve the student population. Discussions between union members and the administration highlighted a desire to explore alternative solutions to the financial challenges.

Tensions have been mounting since last fall when faculty and staff moved to form a union in response to stagnant wages and increasing workloads. The union, associated with United Auto Workers, was ratified in the spring, representing approximately 600 workers.

CalArts has also been grappling with declining enrollment, which has decreased by about 12 percent since the pandemic, contributing to the financial strain. Despite previously asserting the school’s fiscal soundness, President Ravi Rajan has implemented budget cuts to address the shortfall, achieving $5.5 million in savings through various measures.

In an attempt to further reduce expenses, CalArts offered voluntary separation and early retirement to around 50-60 employees, though only a fraction accepted. Consequently, the institution proceeded with the layoffs, which have faced strong opposition from the union.

Union leaders successfully negotiated for improved severance benefits for laid-off employees, including three months of pay and COBRA insurance. Although the situation remains challenging, faculty members like Thomas Leeb maintain a sense of optimism aided by the newfound union protections.

Overall, the situation at CalArts underscores the challenges arts institutions face in balancing financial sustainability with their educational missions.