Author: Arts and Education Council of Greater St. Louis

Publication Year: 1976

Media Type: Report

Summary:

St. Louis has long been known for the quality and vigor of its cultural institutions and educational resources. They serve millions of people each year, and provide important educational opportunities for hundreds of thousands of our children. In an intangible but very real way, these organizations contribute greatly to the quality of life of our community, and they do much to enhance our reputation as a major metropolitan area. However, these organizations also have a direct economic impact upon the St. Louis metropolitan area. In a very tangible way, culture is a big business here, as it is in most major urban centers.

Abstract:

St. Louis has long been known for the quality and vigor of its cultural institutions and educational resources. They serve millions of people each year, and provide important educational opportunities for hundreds of thousands of our children. In an intangible but very real way, these organizations contribute greatly to the quality of life of our community, and they do much to enhance our reputation as a major metropolitan area. However, these organizations also have a direct economic impact upon the St. Louis metropolitan area. In a very tangible way, culture is a big business here, as it is in most major urban centers.

To determine the scope of this economic impact, the 1977 Arts and Education Fund Campaign surveyed the 15 largest members of the Arts and Education Council - ten members receiving direct funding from the Campaign (listed in the introduction), as well as the McDonnell Planetarium, the museum of Science and Natural History, the Museum of Transport, the St. Louis Art Museum and the St. Louis Zoo. This is the first time that such a survey has been made here. It is by no means a comprehensive picture of the total economic value of our cultural institutions. It was not possible to study every professional, university, neighborhood, commercial or amateur cultural activity that exists here. Instead, the figures that follow give an indication - a solid indication, we feel - of the very important effect that cultural institutions do have upon the economy of Metropolitan St. Louis.

Our survey of 15 St. Louis area arts and education organizations found that in the year 1976, these organizations: Drew an attendance of more than 4.6 million people, including both St. Louis area residents and visitors. Generated $1.4 million in federal income taxes, $210,000 in state income taxes and $48,000 in St. Louis city earning taxes. Had combined operating budgets of more than $17.6 million. Paid out more than $7 million in salaries. Spent more than $10.6 million for goods and services.

We know that money put into a local economy in the form of salaries, and paid out for goods and services, changes hands a number of times before it is withdrawn from that economy as savings and taxes. To adjust for this changing of hands, economists traditionally assign a 2.5 multiplier effect. So by using this formula - money paid out for salaries and goods and services multiplied by 2.5 -.we can see that in 1976 the 15 organizations we surveyed had a total economic impact upon the St. Louis area economy of $44.1 million. (p. 2, 4).

Arts & Intersections:

Categories: Economic Impact