The California Arts Council has voted to slash almost 25% from its annual organizational grant to the South Coast Repertory theater company. A lack of "ethnic diversity" on the troupe's board and staff was cited. Five of SCR's 47 board members and three of its 60 staff members are minorities. The council cited the need for SCR specifically, and other groups in general, to improve community outreach efforts. The action came during the council's annual two-day meeting here, as it awarded a total of $6.8 million to 598 groups statewide. Even with the $24,450 cut, SCR's $81,950 grant was the largest received by any Orange County organization.