As experts pore over financial information from the Fresno Arts Council, city officials have a better idea of where thing stand after taking over administering the multimillion dollar arts fund.

The city finds itself in the position after the arts council informed officials of an alleged $1.5 million embezzlement of taxpayer funds by a longtime employee.

City Manager Georgeanne White at Monday’s meeting of the Fresno Parks, Recreation, and Arts Commission informed commissioners about the realities of getting artists their approved Measure P grants.

For artists, that means uncertain timelines for receiving funds. The city council and Mayor Jerry Dyer’s administration are considering using general fund revenue to make up for the stolen $1.5 million, White said, while the city awaits reimbursement by the Arts Council.

With a third round of arts funding looming, the city will also have to come up with metrics to distribute grant money to artists that meet the mission of “arts” and “culture” — two terms commissioners and artists at the meeting frequently brought up and one that White said the city is not equipped to judge.

All this while, White says the city’s information comes from the arts council — information she can’t be confident about until the nonprofit’s files and the city files are reconciled.

“All of the information we have is second hand…” White said. “I hope it’s accurate.”

Police Waiting on Search Warrant Reports Before Identifying Suspect

ABC 30 first reported that authorities suspect former Arts Council employee Suliana Caldwell of embezzling the $1.5 million. GV Wire could not independently verify that information and Fresno police were not ready to confirm that report on Tuesday.

A spokesperson with the police said they have multiple search warrants out and they are waiting for reports from the warrants to come back before they are ready to release any information. Likewise, the FBI has not released the identity yet of the alleged embezzler, the police spokesperson said.

At the dais on Monday, commissioner Laura Ward, an attorney by trade, said the “betrayal” was committed by someone who doesn’t know the $1.5 million amount triggers “severe enhancements.”

She said the Department of Justice has a 95% success rate in cases like these.

Artists Report Bounced Checks as Project Deadlines Loom

As of Feb. 6, the arts council had paid out nearly $4.7 million in 98 different awards, according to documents posted on the city’s website. That leaves 33 awardees who have not received any money. Of those who have received money, none has gotten the full amount — terms of the grants dictate that 10% of the funding amount comes after the project is completed.

Though timelines are unclear, White said the city would likely extend deadlines to get projects completed, something commission chair Kimberly McCoy agreed with.

“I think that’s only fair,” McCoy said.

Some artists, however, are reporting bounced grant checks even as projects come due.

One artist who had several Juneteenth projects planned had a check bounce, said Lori Hunter, administrative officer with the Fresno City & County Historical Society.

Another who had a project scheduled in April told the city in a letter they will no longer pursue grant money after a check from the arts council bounced, commissioner Rose Caglia told the public.

An exchange between McCoy and White became heated after McCoy said the city should be liable for artist losses. McCoy said safeguards were not sufficient, calling the city’s response a “BS show.” White countered saying in 2023, many in the arts community railed against giving the city control over distributing arts money, calling for the arts council to be in charge of distribution.

“If people want to be angry with someone, be angry with the Fresno Arts Council,” White said.

What Will Next Round of Funding Look Like?

Though getting the current, second cycle of Measure P distributed remains the top priority, White said, how to distribute the next round came up at Monday’s meeting.

White said the city does not have the capacity to determine “artistic merit” and wanted commissioners to begin considering a body to help weigh which of the likely applicants should be awarded. That might include reaching out to people outside of Fresno, White said.

“If there’s a process to where there’s a role for any sort of judgment on artistic merit … we would definitely need to engage people who have expertise in that area,” White said.

Following that call, commissioners brought up what they want for the next round of money.

For McCoy, she said that needs to start with a better definition of “culture.” In addition, commissioner Laura Ward said the program needs better marketing so that a diverse net of artists know about Measure P funding.

Several artists who spoke at the meeting talked about not receiving grant money, including a Laotian dance troupe. Many talked about “favoritism” from the Arts Council in deciding who gets funding.

Artists and commissioners talked about hiring a cultural director at the city, although White told GV Wire that with only 2% of funds available for administrative use, hiring a cultural director would likely require dipping into general fund revenue.

Less Money to More Artists or More Money to Fewer Artists?

That 2% administrative cap makes contracting with an outside group difficult, Elizabeth Laval, president of the Fresno City and County Historical Society, told GV Wire. Most federal grants allow organizations to use up to 10% of funds on administrative purposes, she said.

Laval said part of the problem artists cited with the Arts Council came from having limited resources.

Many artists turn to 501(c)3 status organizations for help applying for grants to do projects. The Historical Society will only sponsor up to six artists a year because Laval said many artists need mentorship as to how best execute the funds they’ve been given.

She said some groups will apply for upwards of a hundred grants.

“That’s ridiculous. It’s not possible to do the right thing by what ‘fiscally sponsored’ means,” Laval said.

Laval also said guidelines should be stricter. She said there was a lot of pressure to reach as many people as possible, but that came at the price of getting artists all the money they need to complete projects.

“If you give a group money and you only give them 30% of their project grant, how exactly are they going to be successful?” Laval said.