There's a second aspect to this, I fear. Most funding of this kind is cyclical. A supposedly "one-time" cut-back might very easily turn into a permanent one
Unfortunately generous efforts by performers, sponsors, venues, etc to cushion the blow to preserve things "for better times ahead" are more usually turned into "proof" that organisations can perfectly well manage without the funds in future years too
When I worked at ENO in the 1980s, a new production was given 8 weeks rehearsal, and revival got 6 weeks. Now new shows are done on 5 weeks, and revivals on just 3 weeks - simply because funding cutbacks were crisis-handled, but the "crisis" became the "norm".