<P>The California Arts Council studied how the nonprofit arts contribute to California's economic growth and job creation. We found that nonprofit arts organizations add $2.159 billion to California's economy, create 115,000 jobs and generate $77 million in state and local tax revenues.</P>
<P>[This report] is an economic analysis of the nonprofit arts sector (organizations eligible for state grants).... The analysis was based on surveys undertaken by a Los Angeles market research firm, Facts Consolidated. This summary reports the major findings of the full report.</P>
<P>Highlights:</P>
<UL>
<LI>The economic impact of the arts is substantial: Spending on the nonprofit arts directly and indirectly supports more than 115,000 California full-time and part-time jobs and adds $1 billion in income for the California economy.<BR><BR>
<LI>Nonprofit arts organizations receive $254.4 million in grants and donations. As a return on this investment, arts organizations and audiences generate more than $2 billion of spending in California.<BR><BR>
<LI>A conservative estimate shows that there were 24 million paid admissions to nonprofit California arts events in 1993, which generated spending close to $200 million in addition to tickets and admission fees.<BR><BR>
<LI>A survey of out-of-state visitors shows that the arts are a strong magnet for cultural tourists. Direct and indirect spending by such tourists was $288 million on in-state transportation and lodging, generating $158 million in income and 4,200 jobs.<BR><BR>
<LI>Nonprofit arts organizations add more than $77 million in state and local income and sales tax revenues for public services, ranging from schools to public safety.<BR><BR>
<LI>Seven arts festivals analyzed in this study generated an average of about $11 in economic activity for each $1 of cost. They generate business for local stores, restaurants and hotels.<BR><BR>
<LI>Automotive design is a $47 million business for California, with 16 major design studios employing more than 400 people on full-time basis.<BR><BR>
<LI>A survey of people working in the arts in Los Angeles County shows that they earn an average of $38,000 a year and are involved in their communities (86 percent of them vote). The case study yields a healthy profile of people who contribute and volunteer in their communities far more than the average person.<BR><BR>
<LI>The 173,000 unpaid volunteers, who donate time and labor on behalf of nonprofit arts organizations, provide a measure of just how valued the institutions are in our communities.</LI></UL>
<P>Much of this data was gleaned from five case studies on how nonprofit arts organizations interact with industrial sectors ranging from motion pictures to automotive design. Of course, nonprofit arts, though a sizable sector, is a relatively small part of California's enormous total economy. But it is a small sector with a large impact. Nonprofits spur growth and creativity in California's commercial sector, nurturing California's world-dominant position in communications, entertainment and technology.</P>
<P>Many other states have already measured the size of the arts as an economic sector and formulated the contributions they make in terms of jobs and state income. The accepted method for making this connection is to use an economic multiplier showing how dollars spent in one segment of the economy grow as they flow into other segments.</P>
<P>The California Arts Council and KPMG Peat Marwick LLP have constructed this study using customized multipliers based on conservative methodologies and utilizing best practices.</P>
<P>[For the executive summary of this report, see <EM>The Arts: A Competitive Advantage for <BR> California; Executive Summary. </EM>For highlights of this report, see <EM>The Arts: A Competitive <BR> </EM><EM>Advantage for California; Highlights of the Economic Impact Report</EM>.]</P>
<P>CONTENTS<BR>Executive Summary: <BR> Highlights. <BR> Methodology. <BR> Defining The arts industry. <BR> Surveys. <BR>Case studies: <BR> The artist in Los Angeles County. <BR> The motion picture industry in California. <BR> A case study of seven California festivals. <BR>The bottom line. <BR>Notes.</P>
<P>Chapter 1. The economic impact of the arts in California by Dr. Stephen Pollock,<BR> Policy Economics Group, KPMG Peat Marwick LLP. </P>
<P>Overview: <BR> What we found. <BR> Spending by arts organizations. <BR> Audience spending. <BR> Arts-related visitors. <BR> State revenues and the arts. <BR>Methodology: <BR> What constitutes The arts? <BR> Special factors. <BR> Focus on the quantifiable. <BR> Surveys. <BR> Economic models. <BR> Conservative approach. <BR> Income as a measure. <BR> Spending as a measure. <BR>Audience spending. <BR>2.3 million visitors - arts as an export. <BR>Tax revenues generated. <BR>Income taxes. <BR>Sales tax. <BR>Other taxes. <BR>A major employer. <BR>Summary: a sizable industry. <BR>Appendix 1A: Economic impact of spending by multicultural<BR> organizations. <BR>Appendix 1B: Economic impact of spending by multicultural<BR> audiences. <BR>Appendix 1C: Economic impact of spending by art galleries. <BR>Appendix 1D: Detailed economic impact of expenditure by arts<BR> organizations. <BR>Notes.</P>
<P>Chapter 2. The artist in Los Angeles County by Laura Zucker, Los Angeles County<BR> Music and Performing Arts Commission.</P>
<P>Overview: <BR> The survey focus. <BR> About Los Angeles County and its artists. <BR>Findings: <BR> A symbiotic relationship. <BR> Income. <BR> Job and Economic Impact. <BR> Home and work space. <BR> Civic involvement. <BR> Gender. <BR> Age. <BR> Ethnicity. <BR> A force for cultural understanding. <BR> Gender, Age and salary. <BR> Commitment to community. <BR> Why leave? <BR>Notes.</P>
<P>Chapter 3. The motion picture and television industry in California by Dr. Richard<BR> Boykin, Transfer pricing and economic analysis group, KPMG Peat<BR> Marwick LLP.</P>
<P>Introduction. <BR>The data. <BR>The film industry in California: size and distribution. <BR>Employment in the motion picture and television industry in California. <BR>Economic activity among motion picture and television industry corporations in California. <BR>Summary. <BR>Appendix 3A: California counties and apportionment data. <BR>Notes.</P>
<P>Chapter 4. A case study of seven California festivals: The arts as an economic partner<BR> by Petra Schumann, California Arts Council.</P>
<P>Overview: <BR> Festivals promote tourism. <BR> Festivals facilitate and fund community revitalization. <BR> Festivals promote education and cross-cultural understanding. <BR>Summary information. <BR>Purpose: <BR> Methodology. <BR>Definitions and caveats: <BR> Causality of economic impact: a caveat. <BR>Economic impact of festivals. <BR>The seven festivals: <BR> Monterey Jazz Festival. <BR> Economic impact. <BR> Illustration of economic impact. <BR> Visitor profile. <BR> Mill Valley Film Festival. <BR> The Half Moon Bay Art and Pumpkin Festival. <BR> El Dia D'Los Muertos Festival. <BR> San Francisco Bay Area Book Festival. <BR> Artisans' Festival at Miners' Foundry. <BR> Eighth International Los Angeles Art Fair (ART/LA 93). <BR>Summary. <BR>Appendix 4A: Formula for economic impact. <BR> Calculation. <BR>Appendix 4B: Comparative demographic information. <BR>Notes.</P>
<P>Chapter 5. Art and auto design in California by Robert Andrews, UCLA, and <BR> Ron Hill, Art Center College of Design.</P>
<P>Why California? <BR>Ranking reasons to come to California. <BR>How design studios work. <BR>Economic impact of The Sixteen on California Employment. <BR>Expenditures on goods and services. <BR>Summary. <BR>Appendix 5A: addendum on methodology. <BR>Notes.</P>
<P>Chapter 6. Musical instruments: a manufacturing industry in California by Dr. Richard<BR> Boykin, Transfer pricing and economic analysis group, KPMG Peat<BR> Marwick LLP.</P>
<P>Some findings. <BR>The data. <BR>Size and distribution. <BR>California employment. <BR>Economic activity. <BR>Making acoustic guitars: an example of a California manufacturing industry. <BR>Summary. <BR>Appendix 6A: California counties and apportionment data. <BR>Notes.</P>
<P>Sample survey questionnaires: <BR> A. California arts organizations survey. <BR> B. California arts organizations survey (short form). <BR> C. California arts survey.</P>
A 1994 California Arts Council study on how the nonprofit arts contribute to California's economic growth and job creation.
Most Commented