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Arts and Econ Prosperity The Arts Mean, Business ROBERT L. LYNCH, PRESIDENT AND CEO, AMERICANS FOR tHE ARTS The key lesson from Arts & Economic Prosperity III is that communities that invest in the arts reap the additional benefits of jobs, economic growth, and a quality of life that positions those communities to compete in our 21st century. creative economy. In my travels across the country, business and government leaders often talk to me about the challenges of funding the arts and other community needs amid shrinking resources. They worry about jobs and the economic performance of their community. How well are they competing in the high-stakes race to attract new businesses? Is their region a magnet for a skilled and creative workforce? I am continually impressed by the commitment to doing what is best for their constituents and to improving quality of life for all. The findings from Arts & Economic Prosperity III send a clear and welcome message: leaders who care about community and economic development can feel good about choosing to invest in the arts. Most of us appreciate the Intrinsic benefits of the arts-their beauty and vision; how they Inspire, soothe, provoke, and connect us. When It comes time to make tough funding choices, however; elected officials and business leaders also need to have strong and credible data that demonstrate the economic benefits of a vibrant nonprofit arts and culture Industry. Arts (. Economic Prosperity III Is our third stUdy of the nonprofit arts and culture Industry's Impact on the nation's economy. Because of their rigor and reliability, results from the 1994 and 2002 studies have become the most frequently used statistics to demonstrate the value of arts and culture locally, statewide, and nationally. This new stUdy Is our largest ever, featuring findings from 156 stUdy regions (116 cities and counties, 35 multicounty regions, and five states). Data was collected from an Impressive 6,080 nonprofit arts and culture organizations and 94,478 of their attendees across all SO states and th~ District of Columbia. By every measure, the results are Impressive! Nationally, the nonprofit arts and culture Industry'generates $166.2 billion In economic activity annually-a 24 percent Increase In just the past five years. That amount Is greater than the Gross Domestic Product of most countries. This spending supports 5.7 million full-time jobs right here In the United States-an Increase of 850,000 jobs since our 2002 stUdy. What's more, because arts and culture organizations are strongly rooted in their communities, these are jobs that necessarily remain local and cannot be shipped overseas. Our Industry also generates nearly $30 billion in revenue to local, state, and federal governments every year. By comparison, the three levels of government collectively spend less than $4 billion annually to support arts and culture-a spectacular 7:1 return on Investment that would even thrill Wall Street veterans. Arts & Economic Prosperity III has more good news for business leaders. Arts and culture organizations-businesses in their own right-leverage additional event-related spending by their audiences that pump vital revenue Into restaurants, hotels, retail stores, and other local businesses. When patrons attend a performing arts event, for example, they may park their car In a toll garage, purchase dinner at a restaurant, and elilt dessert after the show. Valuable commerce Is generated for local merchants. This stUdy shows that the typical attendee spends $27.79 per person, per event, In addition to the cost of admission. When a community attracts cultural tourists, It harnesses even greater economic rewards. Nonlocal audiences spend twice as much as their local counterparts ($40.19 VS. $1953). Arts and culture are magnets for tourists, and tourism research repeatedly shows that cultural travelers stay longer and spend more. Whether serving the local community or out-of-town visitors, a vibrant arts and culture Industry helps local businesses thrive. Right now, cities around the world are competing to attract new businesses as well as our brightest young professionals. International studies show that the winners will be communities that offer an abundance of arts and culture opportunities. As the arts flourish, so will creativity and innovation-the fuel that drives our global economy. Arts & Economic Prosperity III Is great news for those whose daily task Is to strengthen the economy and enrich quality of life. No longer do business and elected leaders need to choose between arts and economic prosperity. Nationally, as well as locally, the arts mean business! Arts &: Economic Prosperity III page J Economic Impact 'of America's Nonprofit Arts & C~lture Industry Every day, the 100,000 nonprofit arts and culture organizations that populate the nation's cities and towns are making their communities more desirable places to live and work. They provide inspiration and enjoyment to residents, beautify shared public places, and strengthen the social fabric. This study demonstrates that the nonprofit arts and culture industry is also an economic driver in these communities-a growth industry that supports jobs, generates government revenue, and is the cornerstone of tourism. Nonprofit arts and culture organizations pay their employees, purchase supplies, contract for services, and acquire assets from within their communities. Their audiences generate event-related spending for local merchants such as restaurants, retail stores, hotels, and parking garages. This study sends an important message to community leaders that support for the arts is an investment in economic well- being as well as quality onife. Nationally, the nonprofit arts and culture industry generates $166.~ billion in economic activity every year-$63.1 billion in spending by organizations and an additional $103.1 billion in event-related spending by their audiences. The impact of this activity is significant, supporting 5.7 million U.S. jobs and generating h9.6 billion in government revenue. Arts ,& Economic Prosperity III is the most comprehensive study of the nonprofit arts and culture industry ever conducted. It documents the economic impact of the nonprofit arts and' culture industry in 156 communities and regions (116 cities and counties, 35 multicounty regions, and five states), and represents all 50 states and the District of Columbia. The diverse communities range in population (four thousand to three million) and type (rural to urban). Researchers collected detailed expenditure and attendance data from 6,080 nonprofit arts and culture organizations and 94,478 of their attendees to measure ECONOMIC IMPACT OF THE NONPROFIT ARTS & CULTURE INDUSTRY (2005) (expenditures by both organizations and audiences) Full-Time Equivalent Jobs 5.7 million Local Government Revenue $ 7.9 billion Federal Income Tax Revenue' $ 12.6 billion Arts &: Economic Prosperity III page 3 total industry spending. Project economists customized input! output analysis models for each study region to provide specific and reliable economic impact data. This study uses four economic measures to define economic impact: fl1l;l-time equivalent jobs. resident household income. and revenue to local and state government. . Full- nme Equivalent (FI'E) Jobs describe the total amount oflabor employed. Economists measure FfE jobs, not the total number of employees, because it is a more accurate measure that accounts for part-time employment. . Resident Household Income (often called Personal In.come) includes salaries. wages. and entrepreneurial income paid to local residents. It is the money residents earn and use to pay for food, mortgages, and other living expenses. . Revenue to Local and State Government includes revenue from taxes (income, property, or sales) as well as funds from license fees, utility fees, filing fees, and other similar sources. Arts & Economic Prosperity III f9cuses solely on nonprofit arts and culture organizations and their audiences. It excludes spendingbyjndividualrartists and tl;1efor-profit arts and entertainment industry (e.g., Broadway or the motion picture industry). Due to the rigor with which the study was conducted, statistical extrapolations of the nation's nonprofit arts and culture sector can be made and are presented in this report. D ~ ~---- - h ~ ~ nn~-Ir. nO f)~~ ~ ww ill ~~ There is no better indicator of the spiritual health of our city, its neighborhoods, and the larger region than the state of the arts. The arts deepen our understanding of the human spirit, extend our capacity to comprehend the lives of others, allow us to imagine a more just and humane world. Through their diversity of feeling, their variety of form, their multiplicity of inspiration, the arts make our culture richer and more reflective. JONATHAN FANTON President. MacArthur Foundation Arts & Economic Prosperity III page 5 Nonprofit Arts & Culture: A Growth Industry The nation's ponprofit arts and culture industry has grown steadily sinc~ the first analysis in 199~, expanding at a rate greater than inflation. Between ~ooo and ~ooS, spending by organizations and their audiences grew ~4 percent, from $134 billion to $166.~ billion. When adjusted for inflation, this represents a healthy 11 percent increase. Gross Domestic Product, by comparison, grew at a slightly faster rate of 1~.S percent (adjusted for inflation). Spending by nonprofit arts and culture organi- zations grew 18.6 percent between ~ooo and ~ooS, from $S3.~ billion to $63.1 billion (a 4 percent increase when adjusted for inflation). Event-related spending by audiences attending a nonprofit arts and culture event increased ~8 percent duringthe same peri0d, from $80.8 billion to $103.1 billion; or 15 percent when adjusted for inflation. Audience spending was not studied in the 199~ analysis. GROWTH OF THE NONPROnT ARTS & CULTURE INDUSTRY (U.S. dollars in billions) ORGAItZATlOI EXfElIDITUIES In o o N ORGAIUZATIOII EXPEIIDITURES o o o N ORGAIlIZATIOI UPlIIDITURES N 0. 0. .- S30 H lllllld~ Audience expenditure data not collected in 1992. both organizations and audiences). Twenty-three 0 25 communfti ate increases in nonprofit a ure organization expenditures, with an average growth of 58.0 percent. Ev lated spending b a dJences grew an average of 5~.4 ;:-- -:: ,- ".~ '1: <-___._ : ' '\" '.:' '.'~' .:::'::, ,.;: >: .":"'" -_::(.-(:_. ' - _ -_ ,--::(- ,'." _,,_'<Y '~> /" ',' ":~.;<,{.-,, ry1' percent, with Just five ltie5 encfng declines. Wh . n'tOC)ether. ic activity grew 49.7 percent, expanding well ahead of not just th atlonal arts.and culture i~dustry growth rate of 24 percent, but abead ofth~ nation's Gross Domestic Product as well. The foll,owing are the 25 communities I,. this analysis: Anchorage, AK Boise, 10 Boulder, CO Broward County, FL Chandler, AZ Columbus/Franklin County, OH Dover, DE Erie County, PA Forsyth County, NC Ft. Collins, CO Glendale, CA Homer, AK Indianapolis, IN, Lehigh Valley, PA Mesa, AZ Miami-Dade County, FL Minneapolis, MN Newark, NJ P AZ Po smouth, "'H st. Cloud, MN St. Louis, MO Tempe, AZ Walnut Cre~, CA Westchester County, NY Arts &.EcoIWmic Prosperity 111 pap 6 NONPROFIT ARTS & CULTURE ORGANIZATIONS Nonprofit arts and culture organizations are active contributors to the business community. They are employers, producers, consumers, and members of chambers of commerce. as weUas key partners in the marketing and promotion of their cities and regions. Spending by nonprofit arts and culture organizations , nationally was estimated at $63.1 billion in ~005. This output supports ~.6 million U.S. jobs, provides $57.3 billion in household income. and generates $13.~ billion in total government revenue. IMPACT OF NONPROFIT ARTS & CULTURE ORGANIZATIONS Full-Time Equivalent Jobs 2.6 million Local Government Revenue $ 2.8 billion Federal Income Tax Revenue $ 6.9 billion INDUSTRY EMPLOYMENT COMPARISONS, Spending by nonprofit arts and culture organizations provides rewarding employment for more than just artists. curators" and musicians. It also directly supports builders, plumbers, accountants, printers, and an array of occupations spanning many industries. In ~005, nonprofit arts and culture organizations alone supported ~.6 million full-time equivalent jobs. Of this total, 1.3 million jobs were a result of .. direct" expenditures by nonprofit arts organizations, representing 1.01 percent ofthe U.S. workforce.ii Compared to the size of other sectors ofthe U.S. workforce, this figure is significant. Nonprofit arts and culture organizations support more' jobs than there are accountants and auditors, public safety officers, even lawyers, and just slightly fewer than elementary school teachers. The chart below provides a helpful context for the large number of jobs directly supported by nonprofit arts and culture organizations. It must be noted that the arts and culture jobs represent portions of multiple industry sectors (e.g., musicians, designers. accountants, printers), whereas the comparison groups are single job classifications. PERCENTAGE OF U.S. WORKFORCE (2005) JOBS SUPPORTED BY NONPROFIT ARTS ELEMENTARY ACCOUNTANTS SCHOOL , AUDITORS TEACHERS POLICE OFFICERS LAWYERS .... FARMING. FISHING. FORESTRY TELEMARKErERS COMPUTER POSTAL MAIL PROGRAMMERS CARRIERS PROFESSIONAL ATHLETES FIRE FIGHTERS :' , ,h- ':;' <':::-:::..:~ ,;< ,:,: ,:;';'-:: ':'~::,::-::,,",:)::; ::::'.< ~__'-:f; '<:::::. , ,'/:, ":.'i',:<,: ,:)-><_; .:: : '.:- :".<1' .4;"': ,') ,:', ,,):~ .:::'~ , Arts & Economic Prosper,lt" III us~s a so,ph,lsticated economtc analysis _ ___",_:_ _::_ :: >: --'-;--':' '~' : ':"", ,< -} - ": ::'" _ :':"''''''; <':;:::"::"':"X -<i':":'::"~'x'::_ ,'.<":; "~""':':"':'::::::-':: x .-,_:{ _''': <;.-. "," ",:' , econ'omic Impact.' It Is a system of mathematical' equations that-combine ., ,~ Input/output analysis enables e nom s to track how 'many times a the economic impact generated by each round of spending. How can a d lIed'input/out ut analysis to mea_ure itlcctf m sand economic theory. respent" wlthin economy. and be respent? Consi ing example: A theater company purchases a gallon of paint from the local hardware store for $20~ generating the direct economic impact of the expenditure. The hardware store then uses a portion of the aforementioned $20 to pay the saies clerk's salary; the sales clerk' respends some of the money for groceries; the grocery store uses some of the money to pay , its cashier; the cashier then spends some for the utility bill; and so on. The subsequent rounds of spending are the indirect economic impacts. economic Impact. The subsequent rounds of spending are all of the of the direct and indirect impacts. Note: Inter~stihglYf a dollar "ripples" very dlffere~t gh each community. which Is why each study region has Its own Across America, cities that once struggled economically are reinventing and rebuilding themselves by investing in art and culture. Both are proven catalysts for growth and economic prosperity. By creating cultural hubs, nonprofit art businesses help cities define themselves, draw tourists, and attract investment. Federal support for America's nonprofit cultural organizations must go on if we hope to continue enjoying the substantial benefits they bring. loUISE M. SLAUGHTER u.s. House of Representatives (NY) Co-Chair, Congressional Arts Caucus Arts & Economic Prosperity III page 8 A LABOR-INTENSIVE INDUSTRY Dollars spent on human resources typically stay within a community longer, thereby having a greater local economic impact. The chart below demonstrates the highly labor-intensive nature of the arts and culture industry. Nearly half ofthe typical organization's expenditures are for artists and personnel costs (43.~ percent). EXPENDITURES BY NONPROFIT ARTS & CULTURE ORGANIZATIONS (2005) (6.6~) FACILlTYI RENT Audience Spending The arts and culture industry, unlike many industries, leverages a significant amount of event-related spending by its audiences. For example, a patron attending an arts event may pay to park the car in a garage, purchase dinner at a restaurant, eat dessert after the show, and return home to pay the babysitter. This generates related commerce for local businesses such as restaurants, parking garages, hotels, and retail stores. Total event-related spending by nonprofit arts and culture audiences was an estimated ~n.r1f1A~l ( \Ar1 Rf\~ u IMPACT OF NONPROFIT ARTS & CULTURE AUDIENCES Full-Time EqUivalent Jobs 3.1 mlUlon Local Government Revenue $ 5.t billion ' Federal Income Tax Revenue $103.1 billion in ~005. This spending supports 3.1 million full-time jobs in the United States, provides $46.9 billion in household income, and generates $16,4 billion in government revenue. Nationally, the typical attendee spends an average ofh7'79 per person, per event, in addition to the cost of admission. Businesses that cater to arts and cUlture audiences reap the rewards ohhis economic activity. NONPROFIT ARTS & CULTURE ATTENDEES SPEND $27.79 PER PERSON ABOVE THE COST OF ADMISSION ($3.90) GIFTSI SOUVENIRS ($5.01) LODGING ($2.82) OTHER , ~r 0J .['1 \0 (, rrf F~ i\f\ I r f~f\ )i p.f\{1 p.f\ ~ ....---.... ~\\ n .,...... - , VISITORS SPEND MORE In addition to spending data, researchers asked respondents to provide their home zip codes. a comparison of event-related sp g by 10ca,1 and nonlocal attendees. Previous eco has shown that nonlocal attendees spend more than their local counterparts. T , spent twice Local audiences, who live in the cou y In which the event occurred, s per event In ad Ion to the cost of admission. Nonlocal attendees, those this amount, or $40.19 per person. , ; As would be expected" ,",on local attendees s significantly more In the categories of lodging, meals. and transportatl ese findings demQn e that, " '. ~ ,',:' ".'..>' " ._ ':,' ',' ~'o i .'_, ':' _, _ - ___' . -___, c .' ..." _ " , ._< ,,~': :.,": ", ',': :,' .'., -~' ,."" when a communfty rlcts arts and culture tourists,' ' '" it harnesses significant economic rewards. EVENT-RELATED SPENDING BY ~AL VS. NONLOCAL AUDIENCES LOCAL AUDIEICES NONPROFIT A Ir- · Residents are attendees who live in the c nonresidents live outside of the county. Arts &: Economic Prosperity III page 10 This report reinforces why many cities and towns across the nation are stepping up to support the continued growth of arts and culture. Not only do the arts provide a much needed social escape for many in our communities-they also help drive local economies. Having an abundance of unique arts and events means more revenue for local businesses and makes our communities more attractive to young, talented professionals-whose decisions on where to start a career or business are increasingly driven by quality of life and the availability of cultural amenities. BART PETERSON Mayor of Indianapolis, IN President, National League of Cities CULTUR As comm money. Lo Travelers · Spend more ($623 vs. $457) · Use a hotel, motel, or d-,breakfas~ (62 percent vs. 55 pe~cent) · Spend $1,000 or more 09 rcent vs. 12 percent) ger (5.2 nights vs. 3.4 nights) A 2001 research study by the Travel Industry Association of America and Partners in 'Ii mlv Indicates. that: · 65 percent of all adult travelers attended an arts and c...lture event while on a trip t was 50+ miles away from home. · 32 percent of the~e cultural travelers stayed longer because of the event. · Of those that stayed longer, 57 percent extended their trips by one or more nights. ,.tt"'% . -", ARTS VOLUNTEERISM Arts & Economic ProsperityJIlreveals a'significant contribution to nonprofit artS and mflture organizations as a result of volunteerism. The average city and county in the study had 5,174 artS volunteers who donated 191,499 hours to nonprofit arts and culture organizations, a donation valued at $3,4 ~on.v Th.e 6,080 responding organizations had an average of 1~5 volunteers who volunteered 45.3 hours each, for a total of 4,857 hours per organization. While these arts volunteers may not have an economic impact as defined in this study, they clearly have an enormous impact on their communities by helping arts and culture organizations function as a viable industry. IN-KIND CONTRIBUTIONS The organizations surveyed for this study provided data about their in-kind support (e.g., donated assets, office space. airfare, or advertising space). Seventy-one o Conclusion Nonprofit arts and culture organizations inthe United States drive a $166 billion industry-a growth industry that supports 5.7 million full-time jobs and generates nearly $30 billion in government revenue annually. Arts and culture organizations-businesses in their own right-leverage significant event-related spending by their audiences that pumps vital revenue into restaurants, hotels, retail stores, parking garages, and percent of the responding organizations received in-kind support, averaging $47,906 each during the ~005 fiscal year. C(Jrporations were the largest provider ofin-kind services. SOURCES OF IN-KIND CONTRIBUTIONS TO NONPROFIT ARTS & CULTURE ORGANIZATIONS 5.3% LOCAL ARTS ORGANIZATIONS y ~ other local businesses. This study lays to rest a common misconception: that communities support arts and culture at the expense of local economic development. In fact, communities are investing in an industry that supports jobs, generates government revenue, and is the cornerstone of tourism. This report shows conclusively that, locally as well as nationally. the arts mean business. Arts &: Economic Prosperity III page 13 About This Study The Arts & Economic Prosperity III study was (e.g., Broadway or the motion pleture industry). conducted by Americans for the Arts to document Detailed expenditure data" was collected from 6,080 the economic impact of the nonprofit arts and culture arts and culture organizations and 94,478 of their industry in 156 communities and regions (116 cities attendees. The project economists, from the Georgia and counties, 35 multicounty regions, and five states), Institute of Technology, customized Input/output representing all 50 states and the District of Columbia. analysis models for each study region to provide The diverse communities range in population (four specific andreliable economic impact data about thousand to three million) and type (rural to urban). the nonprofit arts and culture industries, specifically The study focuses solely on nonprofit arts and culture full-time equivalent Jobs, household income, and local organizations and their audiences. Public arts councils and state government revenue. and public presenting facilities/institutions are included, as are select programs embedded within another 156 LOCAL AND REGIONAL STUDY PARTNERS organization (that have their own budgets and play Americans for the Arts published a Call for Participants in 2005, seeking communities interested in participating in the Arts & Economic Prosperity III study. Of the more than 200 participants that expressed interest, 156 substantial roles in the cultural life of communities). The study excludes spending by individual artists and the for-profit arts and entertainment sector As Chairman of the Oklahoma Chamber of Commerce, I visited almost every city and town in the state. There is a visible difference in places with an active cultural community. I see people looking for places to park, stores staying open late, and restaurants packed with customers. The business day is extended and the cash registers are ringing. KEN FERGESON Chairman and CEO, NBanC Past President. American Bankers Association Arts & Economic Prosperi~ III page 1+ The arts have been and continue to be an important part of Arizona 's culture. By igniting the mind, the arts can spark new ways of thinking, communicating, and doing business. JANET NAPOLITANO Governor of Arizona Chair, National Governors Association agreed to participate and complete four participation Taxonomy of Exempt Entity codes as a guideline.vI criteria: 1) identify and code the universe of nonprofit Eligible nonprofit arts and culture organizatlons- arts and culture organizations in their study region; those whose primary purpose is to promote appreciation 2) disseminate, collect, and review for accuracy for and understanding of the visual, performing, folk, expenditure surveys from those organizations; and media arts-received a web-based survey. Sent 3) conduct audience-intercept surveys at a mil1imum of via e-mail, the survey collected detailed information 18 diverse arts events; and 4) pay a modest cost-sharing about their fiscal year 2005 expenditures in more fee <no community was refused participation for than 40 expenditure categories, including labor, local an inability to pay). and non local artists, operations, materials, facilities, and asset acquisition. Data was collected from 6,080 SURVEYS OF ORGANIZATIONS organizations for this study. Response rates for the 156 communities averaged 41.3 percent and ranged from 10.4 percent to 100 percent. Responding organizations had budgets ranging from a low of $0 to a high of Each of the 156 study regions attempted to identify its complete universe of nonprofit arts and culture organizations using the Urban Institute's National NV1 ~! 1~G~ ~ R~~~ ft(] \nT' \11 The arts benefit communities as well as individuals. Cities and towns with flourishing cultUral activities attract business and tourists and provide tremendous incentives for families. There are wonderful models in Massachusetts and across the country of communities that have integrated cultural institutions into revitalization efforts. They have strengthened their economies and greatly improved quality of life in their neighborhoods. Edward Kennedy u.s. Senate (MA) Co-Chair, Senate Cultural Caucus $159.2, million. Each study region's results are based of 673 surveys per community. The randomly selected solely on the actual survey data collected, not on fiscal respondents provided itemized expenditure data on projections. The less-than-100 percent response rates attendance-related activities such as meals, souvenirs, suggest an understatement of the economic Impact transportation, and lodging. Data was collected findings In most of the Individual study regions. throughout the year (to guard against seasonal spikes or drop-offs In attendance) as well as at a broad range SURVEYS OF AUDIENCES of events (a night at the opera will typically yield Audience-Intercept surveying, a common and accepted more spending than a Saturday children's theater research method, was completed In 152 of the 156 study production, for example). Using total attendance data regions to measure spending by audiences at nonprofit for 2005 (collected from the organization surveys), arts and culture events. Patrons were asked to complete standard statistical methods were then used to derive a short survey while attending an event. A total of a reliable estimate of total expenditures by attendees 94,478 attendees completed the survey for an average in each community. The survey respondents provided Leticia Van de Putte of expenditures by nonprofit arts and culture organl- Texas State Senate President, National Conference 0 State Legisla Information about the entire party with whom they were attending the event. Wlttt an average travel, party size of three people, this data actually represents the spending patterns of more than 280,000 attendees, significantly increasing the reliability of the data. INPUT/OUTPUT ANALYSIS To derive the most reliable economic impact data, input/output analysis Is used to measure the Impact zations and their audiences. This Is a highly regarded type of economic analysis that has been the basis , for two Nobel Prizes in economics. The models are systems of mathematical equations that combine statistical methods and economic theory in an area of study called econometrics. The analysis traces how many times a dollar is, respent within the local economy before it leaks out, and it quantifies the economic impact of each round of spending. This form of economic analysis is well suited for this study because it can be customized specifically to each community. On a personal level, I recognize the joyous celebration I experience from the arts and as a policy-maker, I recognize the tre1!lendous economic contribution of the arts, from the most sophisticated urban center to the .most precious rural community. ~~ We in the public sector need to keep in mind what an important role the arts play in economic development. Part of a community's vibrancy is defined by its arts and culture quality and diversity. All the things we do at county level to support the arts can make a difference, and I encourage county offiCials to step up to make sure their communities understand the linkage between local economic development and the arts. Linda Langston Linn County Supervisor (IA) Chair, Arts Commission, National Association of Counties Arts &: Economic Prosperity: III page 17 NATIONAL ESTIMATES To derive the national estimates, the 116 city and county study participants-multiregions and states are excluded from this analysis-were first stratified into six population groups, and an economic impact average was calculated for each group. Second, the nation's largest 12,662 cities were assigned to one of the six groups based on Its population, as supplied by the U.S. Census Bureau. Third, each city was assigned the economic impact average for its population group. Finally, the values of the cities were added together to determine the national economic impact findings. The two largest U.S. cities, New York and Los Angeles, each with more than $1 billion In organizational expenditures, were excluded from this study to avoid inflating ~he national estimates. In addition, Laguna Beach, CA, and Teton County, WY, were removed when calculating the national estimates due to their comparably high levels of economic activity in the population category. North Dakota's participation in this study shows the economic ,impact the arts can have .in rural and urban economies alike. We look forward to the state, arts council further exploring the role of arts in rural economic development. Jack Dalrymple Lieutenant Governor of North Dakota Chair Elect, National Lieutenant Governors Association ENDNOTES I ThIs f19ure Includes only Income \Ix paid on the $104.2 bI!llon In resident household Income at thel1lte of 12.1 percent, the aft"'lJe percentalJe of adjustable 9rou Income paid to the Internal Revenue Service In 2004 (latest data lVallable). · The U.s. Department of Labor Bureau of Labor statistics reports that t..... Wire 130.307.840 nonself-employed Individuals In the U.s. workforce durln9 200S. -The Hlstorlc/Cultural TrlIveler. 2001 (TrlIvelScope Survey). ~ Americans for the Arts, 2002. 'Independent Sector. 2007. ~ National Taxonomy of Exempt Entltles-developed by the National Center for Charitable statistics at the Urbiln Instltute-ls a definitive classification systtm for nonprofit or9lnlzatlons rec09nlzed as tax exempt by the Internal Revenue Code. This system divides the entire universe of nonprofit or9lnlzatlons Into 10 brnd catqorlts, IncludJn9 "Arts, Culture. and HumanltleS:-11Ie Urbiln I~ute reports that 94,314 nonprofit arts and culture ol'9anlzatlons were re91stered with the IRS In 2005, up from 74.446 In 1999. ~~AD~m ~.~~~~ Ww WW ill Arts & Ecoliomic Prosperity III page 18 Acknowledgements Americans for the Arts wishes to express Its gratitude to the many people across the country who made Arts (. Economic Prosperity III possible and assisted with its development and production. Special thanks to the Paul G. Allen Family Foundation, the John D. and Catherine T. MacArthur Foundation, and The Ruth Lilly Fund for Americans for the Arts for their financial support. Our local and statewide project partners contributed' both time and financial support. to the study. ALABAMA Cultural Alliance of Greater Birmingham ALASKA Anchorage Cultural Council Homer Council on the Arts ARIZONA Chandler Center for the Arts City of Mesa Arts and Cultural Division City of Phoenix Office of Arts and Culture City of Tempe Cultural Services Division Tucson Pima Arts Council ARKANSAS Walton Arts Center (Northwest Arkansas) CALIFORNIA Arts Council Silicon Valley (Santa Clara County) Arts Council of Sonoma County City of Fullerton Cultural Affairs City of Glendale Department of Parks, Recreation, and Community Services City of PasadenaquItural Affairs Division City of Walnut Creek Department of Arts, Recreation, and Community Services Cultural Council of Santa Cruz County Laguna Beach Alliance for the Arts North Coast Cultural Coalition (Humboldt County) Riverside Arts Council San Francisco Arts Commission Santa BarblU!l County Arts Commission, COLORADO ArtsAlive Fort Collins Bee Vradenburg Foundation (Colorado Springs) Boulder Arts Commission City of Loveland Museum and Gallery Gunnison Council for the Arts CONNECTICUT Greater Hartford Arts Council DELAWARE Delaware Division of the Arts DISTRICT OF COLUMBIA Cultural Alliance of Greater Washington D.C. Commission on the Arts and Humanities FLORIDA Bay Arts Alliance (Bay County) , Broward County Cultural Division City of Gainesville Department of Parks, Recreation, and Cultural Affairs City of Orlando Office of Communications and Neighborhood Enhancement City ofWmter Park Department of Planning and Community Development MyRegion.com (in Partnership with United Arts of Central Florida) Orange County Arts and Cultural Affairs Office Palm Beach County Cultural Council Pinellas County Cultural Affairs Department GEORGIA City of Atlanta Bureau of Cultural Affairs City of Savannah Department of Cultural Affairs HAWAII Maui Arts and Cultural Center IDAHO Boise City Arts Commission Wood River Arts Alliance ILLINOIS Champaign County Arts, Culture, and Entertainment Council Illinois Arts Alliance (Chicago) INDIANA Arts Council of Indianapolis Community Foundation of Saint Joseph County IOWA Iowa Cultural Corridor.Alliance (Cedar Rapids) KANSAS Salina Arts and Humanities Commission The Arts Council (Sedgwick County) KENTUCKY Fund for the Arts (Louisville-Jefferson County) LOUISIANA Shreveport Regional Arts Council MAINE Portland Arts and Cultural Alliance Arts & Economic Prosperity III page llO MARYLAND Arts & Humanities Council of Montgomery County Baltimore Office of Promotion and the Arts Prince George's County Arts Council MASSACHUSETTS City of Pittsfield Office of Cultural Development MICHIGAN Arts Council of Greater Kalamazoo MINNESOTA Arrowhead Regional Arts Council (Arrowhead Region) Arts and Culture Partnership (Saint Paul) Central Minnesota Arts Board ' (Central Minnesota) East Central Arts Council (East Central Minnesota) Fi\T!l Wmgs Arts Council (Brainerd Lakes Region) Lake Region Arts Council (Minnesota Lake Region) Metropolitan Regional Arts Council (Minnesota Twin Cities' Metro Region) Minneapolis Division of Cultural Affairs (Mbuleapolis) Minnesota Citizens for the Arts (State of Minnesota) Northwest RegionalArts Council (Northwest Minnesota) Prairie Lakes Regional Arts Council (South Central Minnesota) Region ~ Arts Council (North Central Minnesota) Southeast Minnesota Arts Council (Southeast Minnesota) Southwest MinnesotaArts and Humanities Council (Southwest Minnesota) St. Cloud Arts Commission (St. Cloud) St. Croix Valley Community Foundation (Washington and Chisago Counties) MISSISSIPPI Meridian Arts Council (Lauderdale County) MISSOURI St. Louis Regional Arts Commission MONTANA Missoula Cultural Council NEBRASKA Lincoln Arts Council NEVADA City of Las Vegas Division of Leisure Services (Clark County) NEW HAMPSHIRE Art-Speak (PortsmouthlSeacoastArea) NEW JERSEY NewarkArts Council New Brunswick Cultural Center NEW MEXICO Dotia Ana Arts Council NEW YORK Arts and Cultural Council of Greater Rochester Arts Council in Buffalo and Erie CountylNiagara Erie Regional Coalition Orange County Department of Planning Suffolk County Department of Economic Development, Film & Cultural Mfairs Ulster County Arts Council Westchester Arts Council NORTH CAROLINA Arts and Science Council of CharlottelMecklenburg The Arts Council of Winston -Salem and Forsyth County Asheville Area Arts Council United Arts Council of Greensboro United Arts Council of Raleigh and Wake County NORTH DAKOTA Lake Agassiz Arts Council MinotArea Council of the Arts North Dakota Council on the Arts OHIO Fine Arts Fund (Cincinnati Region) Greater Columbus Arts Council Mansfield Fine Arts Center OKLAHOMA Arts and Humanities CoUncil of Tulsa OREGON Arts Council of Southern Oregon Regional Arts and Culture Council (portland) PENNSYLVANIA Arts Council of Erie Bradford County Regional Arts Council Citizens for the Arts in Pennsylvania Cultural Council of Luzerne County Greater Philadelphia Cultural Alliance Greater Pittsburgh Arts Council Jump Street (Greater Harrisburg) Lackawanna County Council on Education and Culture LancasterArts LaurelArts (Somerset County) Lehigh Valley Arts Council ~SHINGTON AIlieaArts of What com County Bainbd,~ IslandArts and Humani~es Council City of Seattle Office of Arts. and Cultural Miaira Tacoma Economic Development Department WEST VIRGINIA Oglebay Institute (Wheeling) RHODE ISLAND City of Providence Department of Art, Culture, and Tourism . WISCONSIN Cultural Alliance of Greater Milwaukee Fox Cities Performing Arts Center , (Northeast Wisconsin Region) Oshkosh Opera House Foundation Overture Center for the Arts (Dane County) St. Croix Valley Community Foundation Viterbo College/School District of La Crosse Wausau Area Performing Arts Foundation (Marathon County) WisconsinArts Board SOUTH CAROLINA Cultural Council of Richland and Lexington Counties SOUTH DAKOTA Dahl Arts CenterlRapid City Arts Council TENNESSEE Metropolitan Nashville Arts Commission TEXAS Abilene Cultural Affairs Council City of Austin Economic Growth and Redevelopment Services Office WYOMING Center for the Arts (Teton County) UTAH Utsh Shakespearean FestiVal (Iron Countj) VERMONT Arts Council ofWmdham County Flynn Center for the Performing Arts (Greater Burlington) VIRGINIA Alexandria Commission for the Arts Arlington County Cultural Miairs Division Arts Council of Fairfax County I n~-'r-l -------:=~~:-- ~ ~-:;::::::- ~~=-=-." :.:.:.:.:_-', ~...~~~ ----- -.-..-.-.....-- .::::::::=.--.-....-.- -= r o 0~~ D w ~Q ~\ \r~ 03 ww'