San Francisco’s California Institute of Arts (CCA) ensures short-term financial stability through a $45 million fundraising campaign, alleviating urgent budget deficits, prompting concerns about layoffs and potential mergers.
The success of the event depends on matching gifts from the Jen-Hsun and Lori Huang Foundation, which doubled the $22.5 million raised by more than 50 donors, including trustees, former board members and alumni. NVIDIA’s co-founder and CEO Jen-Hsun “Jensen” Huang constitutes his contribution to encourage broader support.
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After enrollment rates fell by one-third since 2019, the CCA’s financial struggle has emerged, creating a $20 million budget gap. In response, the agency laid off 23 jobs (10% of its employees) and canceled public positions in a total of 4.5% of employee positions. This turbulence coincides with a $123 million campus expansion designed by Studio Gang, which adds 82,300 square feet of studio, classroom and exhibition space.
The school, coupled with the CCA’s plight, recently filed a lawsuit with former faculty member JD Beltran, who was allegedly sentenced to unlawful dismissal after a financial mismanagement. Nearly $180,000 in her claims are missing at the center of art and public life.
Despite the school’s proximity to Silicon Valley, the CCA’s board of directors has limited technical representation, with only two members from the industry. The board is led by Lorna Meyer Calas of Merrill Lynch and Calvin B. Wheeler of Kaiser Permanente. The institution remains highly dependent on tuition and housing revenues, accounting for 85% of its $75 million operating budget. Its $40 million donation generates only $2 million a year. Enrollment in fall 2023 is 1,400 and is expected to drop to 1,250 this year.
The challenges of the CCA reflect a wider instability in arts education. The San Francisco Academy of Art filed for bankruptcy in 2023, with the Pennsylvania Academy of Fine Arts and the Academy of Arts in Philadelphia announcing its closure. Nationally, enrollment in the MFA program has declined after years of growth.
CCA President David Howse described Huang’s donation as a “transformational milestone”, emphasizing that funds cannot solve the school’s long-term financial situation. The CCA is now trying to raise more funds to strengthen academic programs, faculty and infrastructure to attract more students and ensure sustainability.
