Author: Prepared By the Civic Federation

Publication Year:

Media Type: Report

Summary:

This report analyzes the public funding for 12 major cultural institutions in Cook County that receive property tax-based funding from the Chicago Park District or the Forest Preserve District of Cook County. It makes recommendations for alternative funding sources that could stabilize the public funding for these and other institutions.

Abstract: The study, which was funded by The Chicago Community Trust, found that cultural institutions provide substantial economic benefits to the region in addition to their primary educational and artistic missions.

According to research conducted by the University of Illinois for the Civic Federation, the institutions had a combined economic impact of over $1 billion and created almost 6,500 jobs with $273 million in wage and salary income for northeastern Illinois in 2002. The institutions, which include the Museums in the Park, the Lincoln Park Zoo, the Brookfield Zoo, and the Chicago Botanic Garden, are collectively one of the areas top employers with 4,710 employees in 2002 and generate $1.35 in additional economic activity for every dollar they spend. The institutions also attract tourists to the Chicagoland area and provide incentives for businesses and individuals to relocate here. The Museums in the Park and other local world-class institutions are not only vital to Chicagos reputation as a cultural destination but also provide essential fuel to the economy of Northeast Illinois, said Laurence Msall, president of the Civic Federation.

The report found public funding for cultural institutions has declined steadily in recent years as state and local governments struggle to reduce expenditures and limit increases in taxes. The Chicago Park District cut its operating subsidies to the Museums in the Park by $4.8 million or 13.1% between FY2001 and FY2004. The State of Illinois reduced grants to the Museums by $717,000 or 9% between FY1999 and FY2002. The institutions themselves face declining revenue from fees, charges, and investment income as well as decreased support from private subsidies and grants. Given the increasing financial pressures on governments, combined with the growing unpopularity of property taxes as a revenue source, the study concludes that the current property tax-based system of public funding should be replaced with a broader, more stable revenue base in order to secure the institutions long-term viability.

Arts & Intersections:

Categories: Organizational Planning, Funding, Financial Management, Cultural Planning, Cultural Facilities