But Dunedin Fringe Arts Trust director Gareth McMillan has confirmed the "11-day, open access celebration of visual and performance art, experimentation and creative risk taking" will go ahead next year, following substantive feedback and support from the community.
"With nearly 70 people reaching out with thoughts and recommendations, the huge response really affirmed the significance of this festival to Dunedin, and to local and visiting arts practitioners."
However, the reduced funding levels meant it would go ahead with less production support than the trust normally provided, he said.
"We are sadly unable to offer the full range of services we normally provide, including a full printed programme, an opening night showcase and Fringe Award cash prizes."
He said the trust had applied for round two of the Creative New Zealand (CNZ) arts grant which would be announced on December 9.
The trust was also seriously considering crowdfunding/philanthropy to increase the financial pool for artist grants.
Despite the need to reduce some services next year, he said there were some exciting developments planned for the 2023 festival, including the return of international performers to the programme and a new initiative for Pacific artists courtesy of CNZ.
Mr McMillan said the community’s support for Fringe had been overwhelming.
"It’s really heartening to know that people love our Fringe as much as we do.
"We’ve read heartbreaking and soul-uplifting comments, and have shared these with significant decision makers."
One Fringe artist said the festival had to continue because it was a breeding ground for new talent, a workshop for existing talent and an experimental safe space for all artists.
"There are other festivals around the country, yes, but with a cost-of-living crisis going on and life just generally being that bit more expensive for southern artists who want a platform to perform to reach a wider audience, the Dunedin Fringe is a lifeline.
"Even just one year gone, it could severely impact on those people."
Registrations and applications for Fringe artist grants would open on Monday and close on January 27, 2023.
