Ontario's Minister of Tourism, Culture and Sport says the Celebrate Ontario grant was created to support new and developing festivals, not established, successful events such as the Ottawa Jazz Festival, which recently learned it isn't being funded for the first time in 13 years.

The festival had applied for $290,000 and was notified on Friday, three weeks before its opening, that it had lost out.

Catherine O'Grady, the festival's executive producer, called it "catastrophic."

On Thursday, Vaughan—Woodbridge MPP Michael Tibollo told CBC Radio's Ottawa Morning the ministry believes the festival is successful enough to support itself.

"That's how the money was allocated: to ensure that the small, the medium-sized, the ones that we see have a future, [grow] to become like the jazz festival," Tibollo said.

Catherine O'Grady, executive producer of the Ottawa Jazz Festival, said they'll likely have to make up for the funding loss by cutting jobs and dipping into their savings. (CBC)

He also hinted that other big festivals could see cuts in the future.

"I'm confident the jazz festival, as well as some of the other festivals, can stand on their own and be sustainable, and that's what we're moving toward ... if they are, then those funds can be allocated to other events and other festivals, and that's how we're going to grow tourism."

Additional $200K being provided

Funding for Ottawa festivals in 2019 is down about $1 million from 2018, a reduction of about 33 per cent, according to the Ottawa Festival Network. Twelve fewer events got funding in 2019 than in 2018. As well, the network estimates:

18 festivals received a complete funding cut.

14 received a funding reduction.

4 received funding for the first time.

9 saw a funding increase.

On Thursday morning, Ottawa Mayor Jim Watson met with various festival organizers about their losses of funding, including O'Grady of the jazz festival.

Watson said he spoke to Nepean MPP Lisa MacLeod earlier in the day, who advised him that another $200,000 is being made available for the festivals most in need after the cuts.

The money will be distributed by the Ottawa Festival Network and the mayor's office, Watson said.

'We weren't consulted'

O'Grady said her festival expected to receive the funding it had asked for and has already spent it on marketing.

Tibollo called it an "unfortunate situation," but said the festival should have talked to the ministry before spending money that hadn't been awarded yet.

"I'm a little disappointed that we weren't consulted on that before the funds were spent," he said.

"The signals have all been there that the government is dealing with all kinds of issues with respect to the amount of money that has to be paid out.

"It's not a question of looking to hurt any individual festival, it's a question of trying to get to a balanced budget in five years."

In Ottawa, 27 festivals received a total of just less than $2 million for this year.

Successful Ottawa grant applicants