The Ottawa International Animation Festival raised the alarm on Friday that it could lose its annual subsidy from its hometown as the city looks to balance its books.

North America’s largest animation festival urged the industry to protest a proposed $4.7-million cut in the city’s arts, culture and heritage budget, or 43%, which will eliminate funding to local festivals, including OIAF.

‘The proposed cuts include the elimination of artist grants, elimination of project grants, elimination of arts organization annual operating funding as well as the elimination of funding to festivals [including OIAF],’ Kelly Neall, managing director at OIAF, said in an open letter.

Neall added that the possible loss of its local subsidy comes on top of larger arts and culture funding cuts proposed by the federal government just before the recent federal election.

The City of Ottawa has called for public consultations on its draft 2009 budget, with hearings at city hall set for Dec. 1 and 2.