Author: Steinike, George C. and Stevens, Dana N.

Publication Year: 1978

Media Type: Report

Summary:

How many dollars do non-profit arts organizations add to the income of Floridians? How much of the sales of businesses in Florida arise from purchases by cultural organizations, arts patrons and arts-induced tourists? If the arts are viewed as an industrial or business sector, how does the economic size and impact of the arts sector compare with other industries in Florida? Florida's long-term growth and health depend on expansion of industries with a very particular constellation of qualities. Florida needs industries which rank: low in environmental pollution; low in fuel and energy demand; high in attractiveness to tourists; high in employment of skilled labor; high in purchases from other Florida business.

Abstract:

How many dollars do non-profit arts organizations add to the income of Floridians? How much of the sales of businesses in Florida arise from purchases by cultural organizations, arts patrons and arts-induced tourists? If the arts are viewed as an industrial or business sector, how does the economic size and impact of the arts sector compare with other industries in Florida? Florida's long-term growth and health depend on expansion of industries with a very particular constellation of qualities. Florida needs industries which rank: low in environmental pollution; low in fuel and energy demand; high in attractiveness to tourists; high in employment of skilled labor; high in purchases from other Florida business.

Clearly the arts rank at the top in the first two qualities. If they also place high in the final three economic qualities, the arts are a strategic sector, above and beyond their cultural contributions, in promoting Florida's economic growth. This study uses field-survey data and econometric methods to answer these questions. The answers are made available so that citizens and administrators in business and government as well as the arts can adequately recognize the impact of the arts in strengthening the economy and promoting economic development.

Executive summary: The distribution of income among arts organizations differs by artistic medium. Large organizations in Music and Humanities produce more than a proportional share of income for those media. Smaller organizations in Dance and Theatre generate a less than proportionate share of income. Large organizations dominate regardless of media. Nine percent of all non-profit arts organizations account for fifty percent of the income produced by all. These are organizations with annual incomes exceeding $800,000. Forty percent of the organizations had incomes below $25,000. They claimed only 3.3% of all arts organizations income.

Florida arts organizations spend 42% more than they earn from tickets, admissions, and related sources. This earnings gap is made up by contributions from business and individuals and grants from government and public agencies. The income gap in Florida is about the same as in Wisconsin and Massachusetts. Business contributed $1,517,700 to the arts in 1978. The arts, in the final analysis, produced $110,197,960 in business sales revenue during the same year.

Individuals contributed $3,693,800 and supplemented this with volunteer labor valued at $3,203,000. In the final analysis, the arts accounted for household income receipts of $51,723,000. For each dollar provided by the state of Florida, other sources provided eleven dollars. In 1978, when total state appropriations per capita were $508.40 the arts received seven cents. Among the 50 states, Florida placed 44th in appropriations for arts agencies and ranked last among all southeastern states. Non-profit arts organizations injected $27,900,000 directly into Florida's economy in 1978. Counting effects induced by circulation of this initial amount, the total stimulus was $47,700,000. The industrial impact multiplier value for each dollar spent by arts organizations is $3.11. This is only one part of the effects of the arts.

Arts patrons are a second source of stimulus. They purchased $20,300,000 directly from businesses over and above tickets and admissions. Counting the induced effects art patrons accounted for $42,900,000. Out-of-state tourists who stay in Florida a little longer because of arts attractions are a third source of arts impacts. The arts account for $33,150,000 of such tourist spending. Allowing for induced spending the total becomes $71,260,000. The arts sectorcomprising arts organizations, art patrons, and arts-induced tourists, generated $161,920,000 in sales and payrolls for business and households in Florida. Six thousand two hundred and ninety job holders in 1978 owed their positions to the non-profit arts sector.

Eighty-two percent of the arts organizations in the state consider themselves connected with community goals or programs. Seventy percent are involved in special programs for youth, the handicapped and the elderly. Music, theatre, and dance organizations present the equivalent of 35 performances per day, every day of the year, including 15 offered free. In the Visual Arts and Humanities, an average of 85 organizations were open to the public every day, including 69 open free. Fifty percent of the arts organizations provide educational activities to schools without charge. An average of 41 of these activities were presented every day of the school year. A case study showing in detail both how the arts team with community growth and how smaller cities can measure the arts' impact is presented, with Sarasota used for demonstration purposes.

CONTENTS
1. Study objective.

2. Executive summary.

3. Study design.

3.1 Universe.
3.2 Survey procedure.
3.3 Sample and universe characteristics.
3.4 Extrapolation from sample to universe.

4. Economic findings and impacts.

4.1 The earnings gap.
4.2 Sources of income.
4.3 Framework for measuring economic impacts.
4.4 Direct and induced impacts of arts organizations.
4.5 Direct and induced impacts of arts patrons.
4.6 Direct and induced impacts of tourists.
4.7 Aggregate impacts of all sources of arts spending.

5. Extra economic findings.

6. Micro-analysis: A case study.

6.1 Introduction.
6.2 Patterns of development.
6.3 The role of the arts in Sarasota.
6.4 Direct economic impact of arts organizations.
6.5 Related expenditures by arts patrons.
6.6 Arts-induced tourist expenditures.
6.7 Total economic impact of the arts.
6.8 Outreach programs.
6.9 Educational programs

Appendices:
     A.1  Roster of participating organizations.
     A.2 Survey questionnaire.
     A.3 Bibliography.

Arts & Intersections:

Categories: Economic Impact