Council reduces event subsidies

Facing an ever-widening budget gap, the City Council agreed Tuesday to limit the amount of money spent to subsidize city fees for festivals, arts events and award programs such as the Academy Awards and the Grammy Awards.

The city spends about $5 million annually waiving fees for nonprofit groups that hold special events.

Under the new policy, nonprofit organizations would pay 50% of the fees and salary costs associated with their events, saving the city $2.5 million a year -- a change that would make a small dent in the $430-million shortfall that the city is projecting for next year.

Block parties would not be subject to any fees, and for now the council is excluding farmers markets from the policy change.

During the last two fiscal years, the city waived about $750,000 in fees for award shows and about $1.2 million for farmers markets.

The change was approved by an 11-1 vote with Councilwoman Janice Hahn opposed.

Danielle Brazell, executive director of Arts for L.A., told the council that the change might cause events such as the Lotus Festival to be canceled.

The council will take a final vote on the measure next year.

-- Maeve Reston