Author: Michiana Arts and Sciences Council

Publication Year: 1979

Media Type: Report

Summary:

This study was initiated by the Arts Council through a grant from the Broadway Theatre League to determine the economic impact of the arts on our community as well as to obtain an accurate picture of the current financial state of the arts in our area. The survey was conducted in the spring and early summer of 1980 among not only Arts Council members but other organizations as well. The objective was to present as accurate a representation of the arts in our community as possible.

Abstract:

This study was initiated by the Arts Council through a grant from the Broadway Theatre League to determine the economic impact of the arts on our community as well as to obtain an accurate picture of the current financial state of the arts in our area. The survey was conducted in the spring and early summer of 1980 among not only Arts Council members but other organizations as well. The objective was to present as accurate a representation of the arts in our community as possible.

Our aim was to be as realistic and as conservative as possible. As a result, the organizations studied do not include libraries and literary or horticultural groups which are not affiliated with the Arts Council. In addition where estimates were used to determine what part of a much larger budget was devoted to the arts, such as in school systems, universities and colleges, the most conservative estimate possible was used. The survey was not out to prove a specific case for the arts. It is sufficient to present the facts and let them speak for themselves.

Similarly, no attempt was made to determine or present a multiplier showing the long range economic effect of salaries or purchases on the community. Although it is recognized that these funds are paid to individuals and companies who then turn around and spend the money again, and so on through a chain, it was not felt that the multiplier effect could be determined with a precision commensurate with the accuracy of the rest of the study. It should be kept in mind, however, that such an effect does exist, and has been estimated to range from three to seven times the original amount spent. (p. 5).

The total expenses of the thirty-one represented organizations and departments for the most recent fiscal year amounted to $6,725,700. This was an increase of almost 15% over the previous fiscal year. Salaries, wages and professional service fees are the largest single expenditure among operating costs. The organizations responding to the survey employed approximately 1300 persons in administrative and programming positions on either a full time or seasonal basis. In addition to their salaries, organizations also paid $1,102,000 for such things as FICA, insurance and pensions. (p. 7)

CONTENTS
Introduction.
Survey 1980.
Robert Drevs comments.
Cultural organizations participating in this study.
Major expenses and uses of funds.
Capital expenditures.
Earned income.
Contributed income.
In-kind contributions.
Endowment income.
The earnings gap.
Sources of income.
Summary.

Arts & Intersections:

Categories: Economic Impact