A local artist named Ashley speaks to the Fresno City Council during a special meeting on Tuesday, Feb. 10, 2026. Photo by Ben Hensley

Federal and local law enforcement are investigating the alleged embezzlement of approximately $1.5 million in Measure P arts funding, prompting the City of Fresno to cancel its contract with the Fresno Arts Council and assume direct control of future grants.

The city is also launching a forensic financial investigation as federal law enforcement also reportedly investigates.

Fresnoland broke the story on the Fresno Arts Council embezzlement on Feb. 7.

Mayor Jerry Dyer, Council President Mike Karbassi and Council Vice President Nelson Esparza said at a special meeting Tuesday that the City of Fresno was notified by a board member of the Fresno Arts Council that an employee from the nonprofit had embezzled funds. The employee no longer works for the organization.

A criminal investigation was opened the following day by the Fresno Police Department and the FBI, city officials said.

City leaders said Fresno will pursue recovery of the funds “up to and including litigation.” They also intend to use future Measure P funding to fund organizations that were left unpaid.

City officials have yet to determine how that will occur.

 

Details of funding

According to the city, Fresno Arts Council received more than $9.7 million during the first two years of Measure P. The most recent funding cycle of more than $5.7 million was approved on Oct. 1, 2024. City officials said the Fresno Arts Council distributed “the vast majority” of second-cycle funds, but that a portion remains unpaid due to the embezzlement.

The city later denied the Fresno Arts Council’s request for a third funding cycle in October 2025, totaling over $6.6 million, citing the nonprofit’s failure to provide documentation justifying expenditures as required under its reporting obligations.

The city has canceled its contract with the Fresno Arts Council to administer future Measure P funding, according to city officials. Applications for the next funding cycle will be issued by the city.

 

Artists speak out during Tuesday meeting

Tuesday’s announcement followed the special Fresno City Council meeting where artists and nonprofit leaders urged city officials to act with urgency and transparency as uncertainty around funding continues to disrupt future arts programs.

City officials provided no new details but heard public comment focused on long-standing transparency concerns between artists and the funding process.

“For the past two years, community members have organized, testified, written letters and showed up again and again to call out lack of transparency, lack of accountability, and lack of care shown to the very communities that these funds were meant to serve,” said Ashley, an artist and Measure P grant recipient. “We were dismissed, and in some cases, we were actively intimidated.”

Ashley said that she learned Monday night that city officials had also been seeking financial reporting from the Fresno Arts Council during the same time artists were raising concerns publicly.

“That revelation made my stomach drop,” she said. “Because it means our worst fears were not only valid, but they were visible. They were known.”

City Councilmember Miguel Arias and City Manager Georgeanne White were present at an impromptu meeting Monday evening held at Dulce Upfront studio in Fresno.

 

Funding delays cause immediate harm, anxiety

Artists said delayed grant awards and disbursements have already disrupted the local art scene. Alicia Rodriguez, founder of Labyrinth Art Collective, said her organization received its funding more than halfway through the grant period.

Rodriguez said uncertainty over whether funding would be awarded stalled development and planning before funds were disbursed.

“If you don’t even know you’re getting awarded, how can you plan anything?” she said. “I don’t like booking artists or anybody else until I know I can pay them.”

Erin Burd, executive director of Arts Enrichment for All, said that all four Measure-P funded projects supported by the nonprofit have received the initial 90% disbursement.

“We have it intact inside of our bank accounts,” Burd said in an interview. “That way, they can still continue to work on their projects.”

Burd said, however, that uncertainty remains around the remaining 10% reimbursement, particularly if project timelines are extended.

“If they extend the timeline, that also extends reimbursement,” she said. “Then they have to float that 10% for another additional six months.”

Burd called on the city to act quickly to address funding and timeline issues.

“How do we fix it?” she said during public comment. “And how do we fix it expeditiously?”

Awardees who have not been fully compensated were directed to call (559) 621-2999 or email expandedarts@fresno.gov with their agreement and relevant documentation.