FBI, Fresno Police investigating $1.5 million embezzlement of Fresno’s parks tax proceeds

Fresno Police and the Federal Bureau of Investigations are investigating an allegation that an employee of a local nonprofit embezzled $1.5 million in taxpayer funds generated by Fresno’s Measure P parks tax, according to a report by Fresnoland.

Friday, the City of Fresno formally terminated its agreement with the Fresno Arts Council that delegated administration and – more importantly – distribution of taxpayer funds for the 30-year parks tax’s arts grant program.

The backstory: In August 2023, Fresno lawmakers approved a five-year contract with the Fresno Arts Council to administer and distribute grant funds for Measure P, its 30-year parks and arts tax.

As written, Measure P calls for 12% of the funds generated by the sales tax to be spent on competitive grants to nonprofits for expanding access to arts.

The contract specified that no more than 2% of the available funding for arts grants could be utilized for compensating the Fresno Arts Council.

In 2024, the City of Fresno allocated $9.4 million for its arts g rants program. In 2025, it allocated $6.3 million.

According to reports from the Munro Review, Measure P’s arts grants for 2025 were vastly delayed from being approved by the City’s Parks, Recreation and Arts Commission, with approval finally being rendered in mid-October.

Deep dive: Per the terms of its contract, the Fresno Arts Council was due to receive its allocation of Measure P tax funds, including its 2% fee, generated from June 1, 2024 through June 30, 2025 on Oct. 1, 2025. It is unclear when the investigation into the nonprofit began and whether it received its allocation for the fiscal year.

Based on reports, the City of Fresno’s agreement with the Arts Council is set to terminate on Feb. 20, 2026 due to the alleged embezzlement of tax dollars.

Following the termination, responsibility for administering and distributing the program would likely revert to city officials.

What they’re saying: Fresno Arts Council Executive Director Lillia Chavez issued a statement to outlets late Friday night implying that the alleged embezzlement occurred by an employee of the nonprofit.

“The Fresno Arts Council has been the victim of unauthorized financial transactions resulting in the loss of agency funds,” the statement read. “We have reported this to the proper authorities including the city, law enforcement, and agency partners. This is a personnel issue that is currently under investigation.”