U.S. GOVERNMENT PRINTING OFFICE

WASHINGTON : 

For sale by the Superintendent of Documents, U.S. Government Printing Office

Internet: bookstore.gpo.gov Phone: toll free (866) 512–1800; DC area (202) 512–1800

Fax: (202) 512–2104 Mail: Stop IDCC, Washington, DC 20402–0001

48–055 PDF 2009

THE ECONOMIC AND EMPLOYMENT IMPACT OF 

THE ARTS AND MUSIC INDUSTRY 

HEARING 

BEFORE THE

COMMITTEE ON 

EDUCATION AND LABOR 

U.S. HOUSE OF REPRESENTATIVES

ONE HUNDRED ELEVENTH CONGRESS 

FIRST SESSION 

HEARING HELD IN WASHINGTON, DC, MARCH 26, 2009 

Serial No. 111–12 

Printed for the use of the Committee on Education and Labor 

( 

Available on the Internet: 

http://www.gpoaccess.gov/congress/house/education/index.html 
(II) 

COMMITTEE ON EDUCATION AND LABOR 

GEORGE MILLER, California, Chairman 

Dale E. Kildee, Michigan, Vice Chairman 

Donald M. Payne, New Jersey 

Robert E. Andrews, New Jersey 

Robert C. ‘‘Bobby’’ Scott, Virginia 

Lynn C. Woolsey, California 

Rube ́n Hinojosa, Texas 

Carolyn McCarthy, New York 

John F. Tierney, Massachusetts 

Dennis J. Kucinich, Ohio 

David Wu, Oregon 

Rush D. Holt, New Jersey 

Susan A. Davis, California 

Rau ́l M. Grijalva, Arizona 

Timothy H. Bishop, New York 

Joe Sestak, Pennsylvania 

David Loebsack, Iowa 

Mazie Hirono, Hawaii 

Jason Altmire, Pennsylvania 

Phil Hare, Illinois 

Yvette D. Clarke, New York 

Joe Courtney, Connecticut 

Carol Shea-Porter, New Hampshire 

Marcia L. Fudge, Ohio 

Jared Polis, Colorado 

Paul Tonko, New York 

Pedro R. Pierluisi, Puerto Rico 

Gregorio Kilili Camacho Sablan, 

Northern Mariana Islands 

Dina Titus, Nevada 

[Vacant] 

Howard P. ‘‘Buck’’ McKeon, California, 

Senior Republican Member 

Thomas E. Petri, Wisconsin 

Peter Hoekstra, Michigan 

Michael N. Castle, Delaware 

Mark E. Souder, Indiana 

Vernon J. Ehlers, Michigan 

Judy Biggert, Illinois 

Todd Russell Platts, Pennsylvania 

Joe Wilson, South Carolina 

John Kline, Minnesota 

Cathy McMorris Rodgers, Washington 

Tom Price, Georgia 

Rob Bishop, Utah 

Brett Guthrie, Kentucky 

Bill Cassidy, Louisiana 

Tom McClintock, California 

Duncan Hunter, California 

David P. Roe, Tennessee 

Glenn Thompson, Pennsylvania 

Mark Zuckerman, Staff Director 

Sally Stroup, Republican Staff Director 
(III) 

C O N T E N T S 

Page 

Hearing held on March 26, 2009 ............................................................................ 1 

Statement of Members: 

Bishop, Hon. Rob, a Representative in Congress from the State of Utah ... 5 

McKeon, Hon. Howard P. ‘‘Buck,’’ Senior Republican Member, Committee 

on Education and Labor, prepared statement of ........................................ 55 

Miller, Hon. George, Chairman, Committee on Education and Labor ......... 1 

Prepared statement of ............................................................................... 2 

Additional submission: 

Hodes, Hon. Paul W., a Representative in Congress from the 

State of New Hampshire, prepared statement of ........................ 55 

Platts, Hon. Todd Russell, a Representative in Congress from the State 

of Pennsylvania, submissions for the record: 

‘‘Arts Presenters Tracking Survey’’ .......................................................... 57 

Press release of the Association of Performing Arts Presenters: ‘‘Field 

at a Glance: Economic Impact on Arts Presenting Activity and 

Attendance Stabilize While Fundraising Is a Concern’’ ..................... 62 

Slaughter, Hon. Louise McIntosh, a Representative in Congress from 

the State of New York .................................................................................. 3 

Prepared statement of ............................................................................... 4 

Statement of Witnesses: 

Bahr, Michael, education director, Utah Shakespearean Festival ............... 22 

Prepared statement of ............................................................................... 24 

Daly, Tim, actor and co-president, the Creative Coalition ............................ 26 

Prepared statement of ............................................................................... 28 

Responses to questions for the record ..................................................... 65 

Florino, Joanne, executive director, Triad Foundation, Inc. ......................... 33 

Prepared statement of ............................................................................... 36 

Lynch, Robert L., president and CEO, Americans for the Arts .................... 12 

Prepared statement of ............................................................................... 14 

Responses to questions for the record ..................................................... 66 

Additional submissions: 

‘‘Folk and Traditional Arts Summary’’ ............................................. 62 

‘‘Impact of the Economic Downturn on the Music Education 

Workforce and Concepts for a Positive Response’’ ....................... 63 

‘‘Impact of the Economic Downturn on Museums’’ .......................... 64 

Ridge, Bruce, chairman, International Conference of Symphony and 

Opera Musicians, American Federation of Musicians of the United 

States and Canada (AFL–CIO) .................................................................... 30 

Prepared statement of ............................................................................... 32 

Spring, Michael, director, Miami-Dade County Department of Cultural 

Affairs ............................................................................................................ 18 

Prepared statement of ............................................................................... 19 

Thomasian, John, director, Center for Best Practices, National Governors 

Association ..................................................................................................... 39 

Prepared statement of ............................................................................... 41 

(1) 

THE ECONOMIC AND EMPLOYMENT IMPACT 

OF THE ARTS AND MUSIC INDUSTRY 

Thursday, March 26, 2009 

U.S. House of Representatives 

Committee on Education and Labor 

Washington, DC 

The committee met, pursuant to call, at 10:04 a.m., in room 

2175, Rayburn House Office Building, Hon. George Miller [chairman of the committee] presiding. 

Present: Representatives Miller, Kildee, Woolsey, Kucinich, Wu, 

Loebsack, Hirono, Hare, Clarke, Shea-Porter, Fudge, Polis, Tonko, 

Titus, Platts, and Guthrie. 

Staff Present: Tylease Alli, Hearing Clerk; Catherine Brown, 

Senior Education Policy Advisor; Alice Cain, Senior Education Policy Advisor (K-12); Jody Calemine, Labor Policy Deputy Director; 

Adrienne Dunbar, Education Policy Advisor; Curtis Ellis, Legislative Fellow, Education; Denise Forte, Director of Education Policy; 

David Hartzler, Systems Administrator; Fred Jones, Staff Assistant, Education; Jessica Kahanek, Press Assistant; Stephanie 

Moore, General Counsel; Alex Nock, Deputy Staff Director; Joe 

Novotny, Chief Clerk; Rachel Racusen, Communications Director; 

Melissa Salmanowitz, Press Secretary; Margaret Young, Staff Assistant, Education; Mark Zuckerman, Staff Director; Stephanie 

Arras, Minority Legislative Assistant; James Bergeron, Minority 

Deputy Director of Education and Human Services Policy; Robert 

Borden, Minority General Counsel; Cameron Coursen, Minority Assistant Communications Director; Susan Ross, Minority Director of 

Education and Human Services Policy; and Linda Stevens, Minority Chief Clerk/Assistant to the General Counsel. 

Chairman MILLER. Morning. The Committee on Education and 

Labor will come to order, a quorum being present. And this morning we will begin our hearing on the arts and their importance to 

our country and to our economy by hearing from Congresswoman 

Louise Slaughter from New York, cochair of the Arts Caucus, a 

leader in the Arts Caucus for so many years; and Mr. Rob Bishop, 

a member of this committee from Utah. 

Congresswoman Slaughter, we are going to begin with you. You 

are recognized for 5 minutes with Mr. Bishop. 

[The statement of Mr. Miller follows:] 
2 

Prepared Statement of Hon. George Miller, Chairman, Committee on 

Education and Labor 

Today we’ll take a look at the impact of two important sectors of our economy— 

the arts and music—and how losses in these fields are impacting workers, families 

and communities across the country. Their contributions to our economy are frequently—and unfairly—overlooked. 

Our economy is in the worst crisis this nation has seen since the Great Depression. Workers are losing jobs at a rate of over 600,000 a month, families are losing 

income and benefits, and communities are suffering. The unemployment rate has hit 

a 25 year high. 

The non-profit arts and culture industries inject over $166 billion into our economy each year, according to a recent study by the Americans for the Arts. These 

sectors support 5.7 million jobs and over $104 billion in household income. 

In many places, like my home state of California, for example, the arts and music 

industries are vital engines for local economies—making up a large share of revenue 

and providing many employment opportunities. 

Spending by nonprofit arts and culture organizations provide work for more than 

just artists, curators, and musicians—they also directly support builders, plumbers, 

accountants, printers, and an array of other occupations. 

Workers in these fields are bearing a disproportionate brunt of this economic tsunami. According to research conducted by the National Endowment for the Arts, unemployment in the arts rose at a higher rate than the overall workforce in 2008. 

In fact, the unemployment rate for artists is double that of other professional 

workers. In the last quarter of 2008, the unemployment rate for artists grew by 64 

percent—for a total of 129,000 displaced workers. 

This is playing out even in the most iconic art venues. In January, more than a 

dozen Broadway shows in New York closed and Carnegie Hall has cut its schedule 

down by 10 percent. 

The Philadelphia Art Museum announced it would have to eliminate 30 positions. 

The Miami City Ballet has cut eight of its 53 dancers. 

Right here in DC, the Smithsonian has instilled a hiring freeze. 

And community theatres across the country, from Massachusetts to South Carolina to Baltimore to San Francisco, are closing their doors. 

Without the contributions and influence of the arts, our economy suffers greatly. 

Families suffer from layoffs, lost income and purchasing power. 

When we talk about arts and music, we’re not just talking about artists and musicians. We’re also talking about museums and galleries, symphonies and orchestras, 

community theatres and other non profits that shape our neighborhoods, towns and 

cities. 

This industry helps attract audiences, spurs local business development and stimulates learning in classrooms. Research shows that when students are exposed to 

arts and music, they perform better in other subjects. 

President Obama has made it clear that arts and music have a critical role to play 

in improving our workforce, our schools, and our quality of life. 

Arts, music and other cultural activities bring out our creativity and make us 

richer as individuals and communities. 

For these very reasons, President Obama’s economic recovery plan included a $50 

million investment to save jobs in the arts, supplement declines in charitable giving, 

and keep cultural activities thriving in communities. 

He isn’t the first President to recognize the importance of promoting the arts 

economy in times of recession. 

President Roosevelt made art a focal point of his New Deal to lift this nation out 

of the Great Depression. His goal was to create programs that would help every 

American, no matter how poor, how hungry, how desperate. 

He created the Works Progress Administration. This included creating a government relief program for 10,000 unemployed artists, who helped create 100,000 easel 

paintings, 18,000 sculptures, 13,000 prints, 4,000 murals and other works of art 

that have helped enrich our nation. 

When Harry Hopkins, who President Roosevelt tasked to run the program, was 

questioned about it, he responded ‘‘Hell, they’ve got to eat just like other people.’’ 

Many of these murals can still be seen in schools, post offices and other government buildings. In my district, the Vacaville Post Office proudly displays ‘‘Fruit Season,’’ an oil painting by Emrich Nicholson. 

Today’s hearing kicks off a series our committee will hold this Spring to examine 

how the arts and music can help us rebuild towns and cities and spur economic 

growth and also how they can help improve student learning. 
3 

I look forward to hearing from our witnesses about how supporting the arts and 

music can help us build a stronger America. Thank you for being here. 

STATEMENT OF HON. LOUISE M. SLAUGHTER, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF NEW YORK 

Ms. SLAUGHTER. Thank you very much Mr. Chairman. Good 

morning, everyone. All members of the committee, thank you very 

much for letting me come this morning. 

Chairman MILLER. We need you to pull that microphone closer 

to you. Is it on? Bend it down a little bit. 

Ms. SLAUGHTER. I won’t go through that again. I will just say 

good morning, everybody. 

We are going to talk about an issue that is very near and dear 

to my heart this morning, the promotion of art, music and creative 

industries as an essential feature of our local, regional and national 

economies. 

Mr. Chairman, it is such a pleasure to work with you in supporting our creative industries and our creative workforce. And I 

very much appreciate all of your efforts. As the Nation continues 

to shift from an industrial manufacturing economy to one based on 

ideas and information, cities and States increasingly recognize that 

the arts and culture are important economic assets. They create a 

hub of economic activity that helps an area become an appealing 

place to live, to visit and to conduct business. The industries also 

create jobs, attract investments, generate tax revenues and stimulate local economies through tourism and urban renewal. 

And that is why both the National Governors Association and the 

U.S. Conference of Mayors agree that investing in arts and culturerelated industries provide important economic benefits to local and 

regional economies. It is also no surprise that America’s overall 

nonprofit arts and culture industry generates $166.2 billion in economic activity every single year. The national impact of this activity is significant. It supports 5.7 million jobs and generates $29.6 

billion in government revenue. 

Unfortunately, our creative industries have not been immune to 

the ongoing economic crisis. In fact, they have been particularly 

hard hit as corporate donations decrease, consumer spending on 

arts and cultural activities dwindle, organizations struggle to maintain their budgets, and arts and humanities funding decline as 

States struggle to manage their fiscal challenges. 

Indeed, a $7 million or 20 percent budget decrease in funding for 

the New York State Council on the Arts resulted in 573 arts organizations throughout New York State receiving no funding. Moreover, the Memorial Art Gallery and the Eastman School of Music 

at the University of Rochester in my district have seen philanthropic donations from their endowments decrease by over 20 percent. And public broadcasters in my district and across the country 

are struggling to maintain exceptional access to the arts in the 

wake of budget cuts. 

Individuals who work in the creative industries are suffering. A 

report released this month by the National Endowment for the Arts 

found that unemployment rates for artists have risen more rapidly 

than for U.S. workers as a whole. A total of 129,000 artists were 

unemployed in the fourth quarter of 2008, an increase of 50,000 
4 

people, or 63 percent, from 1 year earlier. The report also found 

that the job market for artists is unlikely to improve until long 

after the U.S. economy starts to recover. 

Creative workers who are not losing their jobs are nonetheless 

still suffering. For example, the Strong National Museum of Play 

in Rochester has reduced its share of health insurance that they 

can provide their employees. And the Philharmonic Orchestra has 

been forced to reduce hours for part-time workers and eliminate 

some benefits for all of their staff. 

Clearly, now more than ever, we need to continue robust support 

for our Nation’s creative industries and workforce. They pay their 

way. Supporting the millions of people employed in the creative industries as well as the organizations, businesses, and artistic institutions which contribute to local and regional economies is simply 

an imperative this Congress must not cast aside. 

In addition to helping our workforce, artistic organizations, and 

cities survive this economic downturn, we should use this time as 

an opportunity to push for greater investment in arts education to 

prepare our children for the creative, dynamic, and innovative 

economy they will enter. Employers today in America and abroad 

are looking for imaginative and vibrant young men and women to 

fill their rosters. 

Learning through the arts reinforces crucial academic skills in 

reading, language arts, and math. Just as important, learning 

through the arts gives young people the skills they need to analyze 

and synthesize information and to solve complex problems. Educating children early and continuously in the arts will prepare 

them for work in today’s innovative and creative post-industrial society. 

Again, I thank you for the opportunity to testify before you today 

and for holding this hearing at such a crucial moment. I look forward to working with you, Mr. Chairman, and Mr. McKeon and 

others on the committee as well as everybody else in the House to 

help support our creative workforce and industries, and I thank 

you very much. 

[The statement of Ms. Slaughter follows:] 

Prepared Statement of Hon. Louise McIntosh Slaughter, a Representative 

in Congress From the State of New York 

Good morning. I would like to thank you, Chairman Miller and Ranking Member 

McKeon for the opportunity to testify before the Committee today on an issue that 

is near and dear to my heart—the promotion of art, music and creative industries 

as essential features of our local, regional, and national economies. Mr. Chairman, 

it is a pleasure to work with you in supporting our creative industries and our creative workforce, and I very much appreciate all of your efforts. 

As the nation continues to shift from an industrial manufacturing economy to one 

based on ideas and information, cities and states increasingly recognize that the 

arts and culture are important economic assets. They create a hub of economic activity that helps an area become an appealing place to live, visit and conduct business. These industries also create jobs, attract investments, generate tax revenues, 

and stimulate local economies through tourism and urban renewal. That is why 

both the National Governor’s Association and the U.S. Conference of Mayors agree 

that investing in arts and culture-related industries provide important economic 

benefits to local and regional economies. It is also no surprise that America’s overall 

nonprofit arts and culture industry generates $166.2 billion economic activity every 

year. The national impact of this activity is significant, supporting 5.7 million jobs 

and generating $29.6 billion in government revenue. 
5 

Unfortunately, our creative industries have not been immune to the ongoing economic crisis; in fact, they have been particularly hard hit as corporate donations decrease, consumer spending on arts and culture activities dwindle, organizations 

struggle to maintain their budgets, and arts and humanities funding decline as 

states struggle to manage their fiscal challenges. Indeed, a seven million dollar, or 

twenty percent budget decrease, in funding for The New York State Council on the 

Arts resulted in 573 arts organizations throughout New York State receiving no 

funding. Thirty-four of these organizations are in my congressional district. Moreover, the Memorial Art Gallery and the Eastman School of Music at the University 

of Rochester have seen philanthropic donations and their endowments decrease by 

over twenty percent. And public broadcasters in my district and across the country 

are struggling to maintain exceptional access to the arts in the wake of budget cuts. 

Individuals working in the creative industries are suffering, too. A report released 

this month by the National Endowment for the Arts found that ‘‘unemployment 

rates for artists have risen more rapidly than for U.S. workers as a whole.’’ A total 

of 129,000 artists were unemployed in the fourth quarter of 2008, an increase of 

fifty thousand people, or sixty-three percent, from one year earlier. This report also 

found that the job market for artists is unlikely to improve until long after the U.S. 

economy starts to recover. Creative workers who are not losing their jobs are nevertheless still suffering. For example, the Strong National Museum of Play in Rochester, NY has reduced their share of health insurance they can provide their employees. And the Rochester Philharmonic Orchestra has been forced to reduce hours 

for part time workers and eliminate some benefits for all of their staff. 

Clearly, now more than ever we need to continue robust support for our nation’s 

creative industries and workforce. Supporting the millions of people employed in the 

creative industries as well as the organizations, businesses and artistic institutions 

which contribute to local and regional economies is simply an imperative this Congress cannot cast aside. 

In addition to helping our workforce, artistic organizations and cities survive this 

economic downturn, we should use this time as an opportunity to push for greater 

investment in arts education to prepare our children for the creative, dynamic, and 

innovative economy they will enter. Employers today in America and abroad are 

looking for imaginative and vibrant young men and women to fill their rosters. 

Learning through the arts reinforces crucial academic skills in reading, language 

arts, and math. But just as important, learning through the arts gives young people 

the skills they need to analyze and synthesize information, and to solve complex 

problems. Educating children early and continuously in the arts will prepare them 

for the work in today’s innovative and creative postindustrial society. 

Again, I thank you for the opportunity to testify before you today, and for holding 

this hearing at such a critical moment. I look forward to working with you, Mr. 

Chairman and Mr. McKeon, as well as the rest of the Committee, to help support 

our creative workforce and industries. 

Chairman MILLER. Thank you very much. 

Congressman Bishop. 

STATEMENT OF HON. ROB BISHOP, A REPRESENTATIVE IN 

CONGRESS FROM THE STATE OF UTAH 

Mr. BISHOP OF UTAH. Well, I appreciate the opportunity of being 

here. This is a somewhat unusual position for me. I have never 

been on this side of the dais. I realize, though, that—— 

Chairman MILLER. We have hundreds of questions for you. 

Mr. BISHOP. I realize, never before have I had such uninterrupted time nor have I spoken this early in a committee hearing 

before. So this is kind of neat. In essence, though, I am testifying 

to myself so if I start giggling, I told myself a joke, and I am not 

going to share it with the rest of you. 

I have had a long tradition actually of being involved in arts, especially in the State of Utah. I was the House sponsor of what we 

passed, a percent for the arts, which was controversial at the time, 

but it actually added 1 percent to the buildings, of every State 

building, to do, simply for art additions to that. 
6 

I recognize, clearly, that even if you are the not musically inclined, everyone should learn to play the piano, simply because the 

personal decision it takes to try and learn how to do the fingering 

and to learn how to count has a remarkable achievement and a life 

skill. All kids should have auditoriums in their school, so they are 

simply taught how to be an audience. 

When I was in school, even though I was not teaching in drama, 

I was involved with the Thespians program. I conducted a play 

every year for the drama teacher to help spread out the work. I accompanied in both schools that I taught for a couple of the plays. 

I met my wife in a community theater, where she was the princess 

and I was the prince, a role that she regrets ever having accepted. 

Then, later, I became a member of the board of our community 

theater, and I was also chairman of the board. And I was there as 

the community theater decided to cut their ties with government 

spending and go out on their own and be a private community interest. Without that safety net of government spending that was 

coming to them, it was a, I thought, it was a very bold move, but 

it worked because we expanded our audience, and we simply found 

that charitable contributions were a way of continuing the product 

of a smaller, regional type of theater experience. 

There are some things though that government simply cannot do, 

regardless of the approach to it. Whenever the government gets involved in art funding, there are simply always going to be winners 

and losers. It is a subjective criteria. It will always happen that 

way. Some people will get something; some won’t. 

What I found in running my small community theater and then 

a private theater organization was, when we tried to get some kind 

of national grant, the paperwork involved and the strings attached 

basically weren’t worth it. Even when I went to the State of Utah 

with the Utah Arts Council, which was a much easier group with 

which to work, there was always the debate going on amongst 

those who gave out the money: Do we spend a lot of money on a 

few institutions to make them really good, or do you spread the 

wealth around? It doesn’t matter what the decision is; there will 

always be some winners, and there will always be some losers, because there is no such thing as objective criteria on how to spend 

money on art. It is always subjective in some particular way. 

I think the stimulus bill that we passed illustrates how that 

works. We gave in the stimulus package a whole lot of money for 

art programs. However, we did not have the time to develop a new 

criteria. So all the money went to programs that already had existing grants given to them. We didn’t actually expand the pie. We 

didn’t actually spend out to more and more institutions to try and 

help different groups. A few people got healthier. There were bigger 

winners. And, once again, there were losers. It will always be the 

situation that takes place in that kind of environment. 

That is why, when the administration talks about cutting charitable deductions, that is such a threatening situation, especially for 

smaller organizations and more rural organizations who rely specifically on those charitable donations to survive. And that is one 

of the things that is very fearful, especially because, when there 

are charitable contributions, there becomes an emotional bond, an 
7 

emotional attachment that no government-sponsored program can 

ever replicate or ever match. 

It is simply a matter of, if there is an entitlement, you are getting Federal Government money in some way. There is an entitlement mentality that you all recognize in the letters you receive 

from constituents who believe that they are entitled to something. 

That doesn’t happen when you actually have charitable contributions going forward, back and forth. 

There is in a charitable contribution an exercise in generosity 

that builds a relationship that is so important, especially for smaller arts organizations and for rural arts organizations. The giver 

gives because he recognizes there is a worth in that gift and has 

a desire to help. At the same time, the receiver, at least historically, has given something back, if nothing less or nothing more 

than gratitude. But there is always a give-and-take relationship. 

That is the bond that is development. That is why Christ said, 

you should give of yourself to the poor. He didn’t say take a knife 

and mug the first traveller that comes along and take his money 

to give to the poor, because there is a relationship that is built 

when one gives and one receives back and forth. 

There is a sense of worth between the two institutions. The giver 

cares about the gift. He cares about the functioning of that institution. He cares about how that institution will operate. And the receiver, on the other hand, also has an increased significance with 

his stewardship of that particular gift. And that is why charitable 

contributions are so essential. 

When I was running, when I was on the board and chairman of 

the board of our small theater group, it was essential that we had 

charitable contributions. And that is why what we should be doing 

in this country, especially in this environment, is trying to encourage charitable contributions; not discourage them, not in any way 

try to diminish them for whatever other tax purpose that may be 

gained. 

That, by the way, is the same concept we have in our campaigns. 

We don’t go out anymore trying to find a few big donors to fund 

campaigns. Instead, we get small contributions from a lot of people. 

And you ought to realize that when you ask somebody from a campaign, if they give you a $25 bill, that may not fund a whole lot, 

but you build a relationship with that individual. There is a bond 

that is developed. It is a strengthening tie, and that is why charitable contributions are so essential. 

And the one thing we need to do is do those types of actions that 

encourage charitable contributions. If we don’t, there are going to 

be more winners and more losers. And those losers, unfortunately, 

are going to be more smaller organizations; they are going to be 

more rural organizations, where we actually need to expand the 

arts and what it can be. 

Chairman MILLER. See how tough it is to be on that side of the 

table? Now you can jump up and come to this side of the table. 

Mr. BISHOP. Can I ask myself a question then? 

Chairman MILLER. On your own time. 

Mr. BISHOP. I apologize. I was a minute and a half over. I didn’t 

look there. I apologize for that, Mr. Chairman. 
8 

Chairman MILLER. Thank you very much, both of you, for your 

testimony and for your support. We look forward to continuing to 

work with you. Thank you so much. 

We are going to now ask our panel of witnesses to come forward, 

and I am going to recognize Mr. Lynch, Mr. Spring, Mr. Bahr, Mr. 

Daly, Mr. Ridge, Ms. Florino, and Mr. Thomasian. If you would 

come forward, please. 

The Chair is going to recognize himself for the purpose of making 

an opening statement. I was waiting for my Republican counterpart to show. Mr. Guthrie is here, and I will begin. 

Today we will look at the impact of two important sectors of our 

economy, the arts and music, and how losses in these fields are impacting workers, families, and communities across the country. 

Their contributions to our economy are frequently and unfairly 

overlooked. Our economy is in the worst crisis this Nation has seen 

since the Great Depression. Workers are losing jobs at a rate of 

over 600,000 a month. Families are losing income and benefits, and 

communities are suffering. 

The unemployment rate has hit a 25-year high. The nonprofit 

arts and cultural industries inject over $166 billion into our economy each year, according to recent studies by Americans For the 

Arts. These sectors support 5.7 million jobs and over $104 billion 

in household income. In many places, like my home State of California for example, the arts and music industries are vital engines 

of local economies, making up large shares of revenue and providing many employment opportunities. 

Spending by nonprofit arts and cultural organizations provides 

work for more than just artists, curators and musicians. They also 

directly support builders, plumbers accountants, printers and an 

array of other occupations. Workers in these fields are bearing a 

disproportionate brunt of this economic tsunami. According to research conducted by the National Endowment for the Arts, unemployment in the arts rose at a higher rate than the overall workforce in 2008. In fact, the unemployment rate for artists doubled 

that of other professional workers. In the last quarter of 2008, the 

unemployment rate by artists grew by 64 percent for a total of 

129,000 displaced workers. 

This is playing out even in the most iconic art venues. In January, more than a dozen Broadway shows in New York closed, and 

Carnegie Hall has cut its schedule down by 10 percent. The Philadelphia Art Museum announced it would eliminate 30 positions. 

The Miami City Ballet has cut 53 of its dancers. Right here in D.C., 

the Smithsonian has instilled a hiring freeze. The community theaters across the country, from Massachusetts to South Carolina, 

from Baltimore to San Francisco, are closing their doors. 

Without the contributions and influence of the arts, our economy 

suffers greatly. Families suffer from layoffs, lost income, and purchasing power. When we talk about the arts and music, we are not 

just talking about artists and musicians. We are also talking about 

museums and galleries and symphonies and orchestras, community 

theaters and nonprofits that shape our neighborhoods, our towns 

and our cities. This industry helps attract audiences, spurs local 

business development, and stimulates learning in classrooms. 
9 

Research shows that when students are exposed to arts and 

music, they perform better in other subjects. President Obama has 

made it clear that the arts and music have a critical role in improving our workforce, our schools and our quality of life. Arts and 

music and other cultural activities bring out our creativity and 

make us richer as individuals and communities. For this very reason, President Obama’s economic recovery plan included $50 million in investment to save jobs in the arts and supplement declines 

in charitable giving and keep cultural activities thriving in the 

communities. 

He isn’t the first President to recognize the importance of promoting the arts, and the arts economy, in times of recession. President Roosevelt made arts a focal point of his New Deal to lift the 

Nation out of the Great Depression. His goal was to create programs that would help every American, no matter how poor, how 

hungry or how desperate. He created the WPA administration. This 

included creating government relief programs for 10,000 unemployed artists, who helped create 100,000 easel paintings, 18,000 

sculptures, 13,000 prints, and 4,000 murals and other works of are 

that have helped enrich our Nation. When Harry Hopkins, who 

President Roosevelt tasked to run the program, was questioned 

about it, he responded, ‘‘hell they have to eat just like any other 

people.’’ 

Many of these murals can still be seen in schools, post offices and 

other government buildings. In my district, the Vacaville Post Office proudly displays ‘‘Fruit Season,’’ an oil painting by Emrich 

Nicholson, portraying the agricultural culture of that time in that 

community. 

Today’s hearing kicks off a series our committee will be holding 

this spring to examine how arts and music can help rebuild our 

towns and cities, spur economic growth, and how they can help improve student learning. I look forward to hearing from our witnesses about how supporting the arts and music can help us build 

a stronger America. And thank you very much for being here. 

Now I would like to yield to Mr. Guthrie for the purposes of making an opening statement. 

Mr. GUTHRIE. Thank you, Mr. Chairman. 

And good morning, Mr. Daly. I spent a lot of time, when I should 

have been studying, watching you on television when I was in college. 

Mr. DALY. Sorry about that. 

Mr. GUTHRIE. You had a very great show, and I enjoyed watching 

it very much. 

One of the benefits of living in a free society is that its citizens 

are free to create. This freedom has given birth to art forms that 

Americans and people around the world have enjoyed for decades. 

Take music, blues, country, jazz, rock ’n’ roll, all of them come from 

America. Then there is Broadway and Hollywood. For more than 

a century, American films, plays, musicals and TV shows have 

been loved and respected the world over. 

Mr. Chairman, we should be proud of our artists, but not just for 

their creative achievements. After all, they are in show business. 

It is a real industry that has ups and downs like any other. And 

what helps support this industry, in large measure, nonprofit and 
10 

charitable foundations. When you look beyond the superstars with 

their mansions and their millions, you find that many talented 

working artists across the country are supported this way. 

Experts say that the $43 billion that foundations give out help 

generate more than $500 billion in household income. It also contributed some $145 billion in tax revenues. That is music to a lot 

of people’s ears, especially in these times. 

But it seems President Obama wants to stop the music and send 

the band home. The Obama administration’s new budget will limit 

charitable deductions in the Tax Code. These tax deductions allow, 

even encourage, people to give to foundations and charities. Whether they contribute $25 or $25 million, a deduction applies to them. 

And foundations need these donations. 

Usually individual contributions are often their sole source of income. So if you limit charitable deductions, you limit support of the 

arts and other worthy causes. It is that simple. 

Don’t take my word for it. Ask Martin Feldstein. He is an economics professor from Harvard. He wrote an op-ed piece in The 

Washington Post yesterday about this very subject. In his article 

Feldstein says, President Obama’s proposal would effectively transfer $7 billion a year from the Nation’s charitable institutions to the 

Federal Government. This transfer, Feldstein, says would basically 

be a nationwide tax on charities. 

After speaking with Professor Feldstein, go talk to the Association of Performing Arts Presenters. In a report out this month, the 

association says that more than half of the performing groups with 

theaters and facilities have failed to meet their fundraising goals. 

As the Obama administration tinkers with the Tax Code, it is 

important that we, as Members of Congress, understand how it affects nonprofits and foundations. Whether supporting a local theater group, homeless shelter, or children’s hospital, nonprofits and 

charities play a starring role in American life. We should create 

policies that best increase philanthropy and private resources 

available for charities, including support of the arts. 

Finally, we should highlight how private charities are independent, effective, and innovative, just like American artists, including the ones with us today. And I have an American artist at 

home. My 11-year-old is active in our children’s youth theater and 

is going to be in Charlotte’s Web next month. So that is an advertisement, if you are going to be in Bowling Green, Kentucky, to 

come see them. It has really made a difference. It is a place where 

she fits in. Where other kids play sports and TV, she fits in on the 

stage and has really enjoyed it. 

Thank you, Chairman Miller, and I yield back. 

Chairman MILLER. Thank you. 

Thank you very much. Again, welcome to the committee. Thank 

you for giving us your time and your expertise. 

I am going to introduce you quickly here, and then we are going 

to begin with your testimony. 

Mr. Lynch, we are going to begin with you. When we do, when 

you begin testifying, a green light will go on in front of you. Unlike 

Mr. Bishop, you will see the red light come on. It is commanded 

that you will see the red light come on. At that point, your time 

will expire. There will be an orange light which will tell you, you 
11 

have about a minute. Five minutes is a very short period of time, 

so organize your thoughts well. But we want you to be able to be 

comfortable in delivering your testimony in a manner you think is 

coherent. 

And then we will have time for questions. This hearing will end 

by 12:00. My concern is that we are into the amendment process 

on the floor, and I am not quite sure when we will be asked to go 

to the floor for votes. And depending on those circumstances, if it 

is a long series of votes, which it may be, hopefully, we will be done 

before then. But if not, we will not hold you until after those votes. 

That is something witnesses should not have to endure, is when we 

leave the room for an hour, and you have to stay here. 

Thank you in advance. With all of those conditions, we really 

welcome your testimony. 

First, let me begin by introducing Robert L. Lynch, who is the 

president and CEO of Americans for the Arts, a national organization dedicated to advancing the arts and arts education. Under his 

24 years of leadership, the organization has grown over 50 times 

its original size. In 2005, Mr. Lynch created Americans for the Arts 

Action Fund to engage citizens in advocating arts-friendly public 

policies. Mr. Lynch plays piano, mandolin, guitar and lives in 

Washington, D.C. 

Michael Spring is the director of Miami-Dade County Department of Cultural Affairs. Michael Spring serves as director of that 

organization. For over 25 years, he has served at the department. 

He has helped build Miami-Dade County’s cultural community into 

more than $922 million annual industry comprised of more than 

1,000 nonprofit cultural groups and thousands of artists. Mr. 

Spring represents the department in numerous culture and civic 

communities, and he continues to paint and develop his interest in 

visual arts. 

Michael Bahr is education director of the Utah Shakespearean 

Festival, where he has created numerous outreach programs for 

students. As a teacher in theater arts in Utah and California 

schools, Mr. Bahr developed educational theater programs in grade 

schools, junior highs and high schools. He received many awards 

for his work, including a 2-year nomination for the Huntsman 

Award and Outstanding Teacher of the Year. 

Tim Daly serves as copresident of The Creative Coalition, a nonprofit, nonpartisan social and political advocacy organization for 

the entertainment industry. He is a veteran actor and has played 

a variety of roles in film and television. Mr. Daly received an 

Emmy nomination for Outstanding Guest Actor in a Drama Series 

for his role as J.T. in the HBO series ‘‘The Sopranos.’’ He currently 

stars in season two of ABC’s Private Practice and is also producing 

a documentary film, called ‘‘PoliWood,’’ which takes an in-depth 

look at the 2008 Presidential election. 

Bruce Ridge is chairman of the International Conference of Symphony and Opera Musicians, a conference of the American Federation of Musicians, and a member of the North Carolina Symphony, 

where he plays a double bass. Nationally, Mr. Ridge leads the conference’s work in arts and advocacy, improving labor relations 

throughout the field. He has spoken around the country to orchestral musicians and arts administrators about increasing orchestra 
12 

services to their communities through enhancing business development and strengthening arts education. 

Joanne Florino has been executive director of the Triad Foundation of Ithaca, New York, since April 2003. The Triad Foundation 

makes over $9 million in grants each year, including grants in the 

arts in locations such as Charlotte, North Carolina; Tampa, Florida; and Ithaca, New York. Prior to working at Triad, Ms. Florino 

worked as the executive director of the Parks Foundation where 

she administered grant-making programs primarily focussed in 

higher education. 

John Thomasian directs the National Governors Association Center of Best Practices, which helps Governors and their policy advisors develop and implement innovative solutions to governance and 

policy changes. The National Governors Association Center helps 

Governors and their staffs develop cutting-edge solutions to stay 

ahead of potential problems. As the center director, Mr. Thomasian 

oversees all there is of domestic policy with particular areas of expertise including energy, health care reform, homeland security infrastructure, the economy, and the arts. 

With that, let me, again, welcome you. 

Mr. Lynch, we are going to begin with you. Thank you. 

STATEMENT OF ROBERT L. LYNCH, PRESIDENT AND CEO, 

AMERICANS FOR THE ARTS 

Mr. LYNCH. Well, I want to thank you very much, Chairman Miller, for this opportunity, and also, I want to thank so many members of the committee for being here. It is very exciting to have this 

kind of a turnout. 

The opportunity here is for us to talk about the broad spectrum 

of the arts, visual art, performing art, music, theater, dance, the 

creative industries as a whole. And I want to just—I have written 

testimony that I have sent forward. I simply want to say a few 

words, a few remarks that relate to that. 

My remarks are basically that I have great news, and I have 

tough news. And you have heard some of both already as we have 

gone forward. Louise Slaughter, the great leader of our Congressional Arts Caucus, has been very articulate on talking about both 

the problems that the arts face and the opportunities here. 

The great news is this: We know that there are 686,000 organizations out there, for-profit and nonprofit organizations, in the arts. 

We know that they employ 2.8 million people. That is more than 

people realize. Right there, it is interesting to look at: 4.2 percent 

of all businesses in America, and over 2 percent of all the jobs in 

America. And it is a growth industry as a whole. 

The figures from 2008 to 2009, there is a 10 percent growth in 

the numbers of these organizations. When we take a look at these 

creative industries, if I were to take a look at Congressman Miller’s 

district, there are 1,292 businesses, arts businesses, in that district, employing 3,983 people. And simply looking at the committee 

members, each of you has a packet with those figures. 

But I look at Congresswoman Clarke’s district, 1,287 businesses 

employing 4,000 people. Congresswoman Fudge’s district, 1,416 

businesses employing 9,320 people. This is big. This is important. 

This is good news for the arts. And it is the kind of news that the 
13 

United States Conference of Mayors thought was so important that 

they, when they came forward with their 10-point plan for a better 

America to the current administration, they included the arts as 

one of the 10 points. 

Another thing that is very important for this committee, arts 

education. Arts education is at the core of creating those audiences 

and helping to create the actual artists themselves. And the Conference Board recently, the organization that all of business goes 

to for its information, came forward with a study that said that the 

businesses in the 21st Century, number one thing they want is creativity, creative 21st Century workers. But what was even more interesting is that they thought that, along with the superintendents 

of schools and other leaders in education, that the top of the list 

for creating creativity was having arts education in the schools. 

This is from the business community, not from Americans For the 

Arts. And I think that is very significant. 

If I turn to the not-for-profit community, 100,000 of those 

686,000 businesses are not-for-profit businesses. Museums, theaters and dance companies in every corner of the country, in every 

one of your districts, 5.7 million jobs come out either directly or indirectly out of that nonprofit business. You heard Congresswoman 

Slaughter mention it as a $166 billion economic impact, returning 

$29 billion to Federal, State and local tax coffers. 

One thing that I thought you here in this committee should realize is that that growth industry largely was helped in 1965 when 

you launched the current infrastructure of support in the arts in 

America today, the National Endowment for the Arts coming out 

of this committee, the State structure or State arts agencies and 

the local arts agencies across the country. The infrastructure of 

support as we know it today. What I think is exciting there is that 

there is proof with those figures that the arts mean business, big 

business in this country. 

Now for some tough news, 10,000 of those organizations are at 

risk in America; 10 percent of those organizations are at risk of 

going out of business entirely; 260,000 jobs would be lost if that 

were the case. The other 90 percent are having trouble as well, and 

there is a job loss there as well, but those figures get even bigger, 

bigger than we would want to actually look at as a loss in this 

country. 

You have heard already that artists are unemployed currently at 

twice the rate of other professionals, the National Endowment for 

the Arts. Where does the money for the arts come from in America? 

We have talked about a number of things here. But it is basically 

pretty simple. Those 100,000 nonprofit organizations get their 

money from three sources. Half their money comes from earned income. That means the ticket buyer, the person who attends an 

event is, important. And disposable income is down. So that is 

being hurt. Forty percent comes from the private sector, donations, 

corporate individual foundation. With portfolios down, that money 

is hurt. The last 10 percent comes from government, most of it 

from local government and then State government and a tiny piece 

from the Federal Government. But that Federal Government piece 

has been the part that has leveraged all the rest over the last half 

century. So I think that it is important to understand that dynamic 
14 

and then look at all of—I am not going to read the list of hundreds 

of organizations that I have here that are actually going out of 

business across the country or at risk, but I will submit that as 

part of the testimony. 

Chairman MILLER. Thank you. 

Mr. LYNCH. What I want to say is, there is hope on the horizon. 

And you have given the hope. The omnibus bill, $10 million more 

for the National Endowment for the Arts; the economic recovery 

bill, $50 million more going out through that mechanism across the 

country. That hope is important. And what it says to me is that 

the arts are important; arts jobs and arts and economic impact are 

important and bigger than most people realize. The arts in America 

are at risk. And I ask the committee to help others understand 

that the arts are not part of the problem but part of the solution 

to America’s problems. Thank you. 

[The statement of Mr. Lynch follows:] 

Prepared Statement of Robert L. Lynch, President & CEO, 

Americans for the Arts 

Americans for the Arts is pleased to submit written testimony to the House Education & Labor Committee supporting the arts and cultural workforce. I am grateful 

to Chairman George Miller and Ranking Member Buck McKeon for providing Americans for the Arts the opportunity to testify today. 

Before I begin with my statement today, I would like to congratulate Chairman 

Miller on the House passage of the GIVE Act last week. National service programs, 

when partnered with local arts organizations and art-related projects have a proven 

record of filling un-met needs. Together, national service and the arts create a powerful force, demonstrating the ability for Americans to take initiative, tap into their 

creative forces, and work together to address a broad array of community needs in 

our country. The GIVE Act legislation included a provision strengthening arts activities through national service—so thank you for that support Mr. Chairman. 

Arts at Risk Today 

Americans for the Arts estimates that 10,000 of the nation’s nonprofit arts and 

culture organizations are at risk of closing their doors in 2009, a loss of as many 

as 260,000 jobs. 

Last week, the Wall Street Journal ran an important article on this topic, ‘‘Arts 

Groups Lose Out in Fight for Funds,’’ (3/18/09) which described the challenges that 

arts organizations are facing in this current economy: 

‘‘Some cultural institutions have already folded. The Baltimore Opera’s board 

voted to liquidate the organization last week. Brandeis University officials are mired 

in controversy over a decision to sell parts of its Rose Art Museum collection. In 

January, the Minnesota Museum of American Art in St. Paul, which had existed 

in various forms since 1927, closed indefinitely. The Milwaukee Shakespeare theater 

company shuttered in October, after its main funder, a local foundation, dropped 

support. 

‘‘Many arts organizations are tightening their belts. In New York, where Wall 

Street banks have collapsed, the Metropolitan Museum of Art just cut 74 positions 

and warned it could slash another 10% of its work force by July. In Detroit, where 

General Motors Corp. and Chrysler LLC are on the verge of bankruptcy, the Detroit 

Institute of Arts reduced 20% of its staff as part of a $6 million budget cut, and 

the Detroit Opera canceled a spring production.’’ 

Two paragraphs in just one news story, the likes of which is running every day 

somewhere in America. Arts organizations, however, are not fading passively. While 

reducing staff and length of seasons, they are also providing more ‘‘pay what you 

can’’ opportunities. 

In Maryland, arts organizations are providing free admission to laid-off and furloughed state workers. In New Jersey, the opera is using vacant space at a retirement home for rehearsals and allowing residents to watch. In St. Louis, arts organizations are moving in to shopping malls to keep the property full of energy and help 

keep local merchants in business. Even in down economic times, arts organizations 

are working to strengthen their communities. 
15 

A monthly tracking survey of major performing arts centers conducted by AMS 

Planning & Research Corp of Fairfield, CT shows that a sample of major performing 

arts centers went from only 16% being behind on meeting their foundation contribution target in November 2008 to 58% of the centers falling behind in February 2009. 

The same drop was found in corporate support, 38% of the centers were behind in 

corporate support in November, and now 60% of these institutions are behind in corporate donations. 

The most recent federal statistics are from the National Endowment for the Arts 

(NEA) itself. In report released earlier this month, the NEA found that artists are 

unemployed at twice the rate of professional workers—6% vs. 3% for all professionals. The U.S. Census data shows that unemployment rates for artists have risen 

more rapidly than for U.S. workers as a whole. 

Downward Pressure on Business Support to the Arts 

In an effort to achieve more measurable results from their philanthropy, more 

businesses are reducing their charitable focus to a single funding category, such as 

health or education. This single-focus giving rarely focuses on the arts. 

The arts have been steadily losing market share of total business support, according to longitudinal research conducted by the Conference Board. While much of this 

can be attributed to a huge increase of in-kind contributions of medications by drug 

companies, further analysis still demonstrates that the arts’ ‘‘piece of the pie’’ is getting smaller. 

The Economic Recovery Bill 

Last month, with the passage of the American Recovery and Reinvestment Act, 

a special $50 million was directed to the National Endowment for the Arts to preserve and recover jobs in the arts. Thanks, to Congressional Arts Caucus Co-Chair 

Louise Slaughter and several others, the arts workforce has been thrown a much 

needed lifeline. It is hard for me to put into the proper context how grateful the 

creative community is that our sometimes overlooked contribution to the nation’s 

workforce was recognized by the new Administration and Congress. 

The NEA, more so than many federal agencies, has the infrastructure and dexterity to expedite relief to workers immediately, in accordance with the Obama Administration’s wishes that that these expenditures are of a quick and stimulative 

nature. And these are real jobs—jobs that cannot be outsourced. Creating the ability 

to extend production seasons means the employment of not just performers but of 

the entire apparatus that it takes to execute high quality performances. These jobs 

are created in the United States and stay in the United States. By keeping those 

artists, artisans, production crews, educational programs, and local businesses working, you are relieving the burden on local governments as tax revenue keeps coming 

to the public coffers and eases pressure on the social safety net. This, of course, is 

like any other industry. NEA funding is directly related to that effort. 

Economic Impact and Reach of the Arts 

In my travels across the country, business and government leaders often talk to 

me about the challenges of funding the arts and other community needs amid 
16 

shrinking resources. They worry about jobs and the economic performance of their 

community. How well are they competing in the high-stakes race to attract new 

businesses? Is their region a magnet for a skilled and creative workforce? I am continually impressed by the commitment to doing what is best for their constituents 

and to improving quality of life for all. The findings from our 2007 study, Arts & 

Economic Prosperity III, send a clear and welcome message: leaders who care about 

community and economic development can feel good about choosing to invest in the 

arts. 

Some of the members of our panel will speak about what most of us share as the 

intrinsic benefits of the arts. Especially in these uncertain times, the arts have the 

power to inspire, create outlets for untapped creativity and expression, and engage 

in a shared civic discourse. I also realize that, for some policy makers, the human 

enrichment factor of the arts is not always enough to motivate spending taxpayers’ 

money on the arts. To that point, I would add that, the arts mean business. 

Arts & Economic Prosperity Study 

Our 2007 economic impact study reveals that America’s nonprofit arts industry 

generates $166.2 billion in economic activity annually—supporting 5.7 million fulltime equivalent jobs, $104 billion in household income, and actually generating 

$29.6 billion of tax revenue back to federal, state, and local governments combined. 

Between 2000 and 2005, these figures represented a 24 percent increase in economic 

activity and growth of 850,000 jobs. 

The numbers are irrefutable; arts and culture mean business. Federal funding of 

arts and culture represents up to a 9 to 1 return on investment. $1.4 billion in total 

funding returns $12.6 billion to the federal coffers. 

No niche industry, the nonprofit arts and culture industry make up 1.01% of the 

U.S. workforce. This may seem like a small percentage until you realize that it exceeds those working in the legal and accounting professions, or police and firefighting, for example. Elementary school teachers at 1.14% are one of the few sectors that surpass this number in terms of jobs supported by any sector. 

The Arts & Economic Prosperity study has more good news for business leaders. 

Arts organizations—businesses in their own right—leverage additional event-related 

spending by their audiences that pump vital revenue into restaurants, hotels, retail 

stores, and other local businesses. When patrons attend a performing arts event, for 

example, they may park their car in a toll garage, purchase dinner at a restaurant, 

and eat dessert after the show. Valuable commerce is generated for local merchants. 
17 

Our interviews of 95,000 patrons across all 50 states show that the typical attendee 

spends $27.79 per person, per event, in addition to the cost of admission. This is 

a great benefit from the $50 million in economic recovery funding as well, since that 

spending will generate the same event-related spending. 

When a community attracts cultural tourists, it harnesses even greater economic 

rewards. 39 percent of all arts attendance is by individuals who have traveled at 

least one county away to attend the event. Nonlocal audiences spend twice as much 

as their local counterparts ($40.19 vs. $19.53). Arts and culture are magnets for 

tourists, and tourism research repeatedly shows that cultural travelers stay longer 

and spend more. Whether serving the local community or out-of-town visitors, a vibrant arts and culture industry helps local businesses thrive. 

Among the 160 communities and regions that we studied, a number of them are 

located in the districts of members of this committee and have been provided to you 

in your packets. 

For example, I offer the following: 

• Wilmington, Delaware, arts and culture organizations generate 1,372 Full-Time 

Equivalent Jobs (FTEs); $35.7 million in household income; $985,000 in taxes for 

local government; $20.5 million in event-related spending averaging $20.52 dollars 

per attendee excluding the price of admission. 

• Greater Harrisburg, Pennsylvania, arts and culture organizations generate 

2,123 FTEs; $40.1 million in household income; $2.9 million in taxes for local government; $27.7 million in event-related spending averaging $31.65 dollars per 

attendee excluding the price of admission. 

Creative Industries: Business & Employment in the Arts 

The good news about the economic benefits of the arts is that they extend beyond 

just nonprofit organizations. Provided for the committee, are maps that deliver a 

statistical mapping report of the size and scope of arts businesses in your Congressional District. Americans for the Arts defines the creative industries as both forprofit and nonprofit businesses involved in the creation or distribution of the arts. 

They are businesses that we participate in for enjoyment (such as seeing a movie, 

attending a concert, or reading a novel); engage in for business (architecture, design, 

and musical instrument manufacturing companies); and invest in to enrich community livability (such as museums, public art, performing arts centers). 

We use as our data source, Dun & Bradstreet’s national database of 14.3 million 

active businesses and 135.6 million employees in the United States. Widely acknowledged as the most comprehensive and trusted source for business profiles and 

listings, Dun & Bradstreet is recognized by both global industry associations and 

the U.S. Federal Government. 

As of January 2009, our analysis reveals that 686,076 arts businesses exist across 

the nation and employ 2.8 million individuals. The Creative Industries report demonstrates that arts-centric businesses are contributing significantly to local economies across the country—representing 4.2 percent of all businesses and 2.04 percent 

of all jobs in the United States. 

• California Congressional District 7 is home to 1,292 arts-related businesses that 

employ 3,983 people. 

• California Congressional District 25 is home to 1,693 arts-related businesses 

that employ 5,636 people. 

• New York Congressional District 4 is home to 1,605 arts-related businesses that 

employ 6,259 people. 

• Pennsylvania Congressional District 19 is home to 1,188 arts-related businesses 

that employ 6,201 people. 

Cities that want the competitive economic edge, use these data to measure their 

creative industries. With more than 686,000 arts-centric businesses employing nearly 3 million people, arts education is a critical tool in fueling the creative industries 

of the future with arts-trained workers as well as new arts consumers. We know 

from published research studies that early learning in the arts nurtures the types 

of skills and brain development that are important for individuals working in the 

new economy of ideas. We also know that there is a strong correlation between participation and learning in the arts as a child and attendance of cultural activities 

as an adult. 

Conclusion 

The arts community continues to gather research on the status of the field. I 

thank the committee for this opportunity to join you today and look forward to further working with you to preserve and bolster this important creative workforce, to 

generate economic development opportunities for our communities and to continue 

providing our country a great source of arts and cultural support. 
18 

Chairman MILLER. Thank you. 

Mr. Spring. 

STATEMENT OF MICHAEL SPRING, DIRECTOR, MIAMI–DADE 

COUNTY DEPARTMENT OF CULTURAL AFFAIRS 

Mr. SPRING. Thank you for this opportunity to talk about the economic and employment impact of the arts from a local perspective. 

For the past 27 years, our Miami-Dade County Department of 

Cultural Affairs has been at the center of one of our Nation’s most 

dynamic, diverse, and rapidly growing arts communities. In 1982, 

there were a little more than 100 nonprofit arts organizations in 

Miami. Today there are more than 1,000 arts businesses. 

I want to begin with a short story about just one of these arts 

organizations, Miami City Ballet. Each season, this 23-year-old 

company employs hundreds of people, not just the more than 50 

dancers who have established the ballet as one of our Nation’s 

great dance companies but also company administrators, accountants, carpenters, stage hands, seamstresses, teachers and physical 

therapists. Two months ago, Miami City Ballet made its triumphal 

appearance at City Center in New York City. The Times raved 

about the appearance saying, ‘‘this is as good an advertisement for 

its home city as any ballet company in America.’’ 

Less than 2 weeks later, back in Miami, the ballet announced 

that, due to the worsening economy, it was laying off dancers and 

reducing its budget by more than 25 percent for next year. There 

are more layoffs likely to come. Now I could have told this story 

from a human-interest perspective in a shameless attempt to pull 

on your heart strings. But that is not the point of my testimony 

today. 

Instead, this story points out that our cultural sector is a major 

player in promoting Miami’s new image for business and tourism. 

And it underscores the fact that arts organizations are subject to 

the very same forces affecting America’s and the world’s economic 

viability, job loss, and downsizing. 

So what did you really expect from a guy from Miami? Perhaps 

testimony about the economy’s impact on South Beach hotels and 

on our ocean-view condo market. Instead, you got a story about the 

ballet and jobs. Well, Miami-Dade County is an endlessly surprising place, even for those of us who grew up there. Our county 

government is investing more than $1 billion in cultural infrastructure that is being matched multifold by businesses and individuals. 

Our Department of Cultural Affairs is one of the largest, in terms 

of budget size, in the United States. 

Why is Miami-Dade County investing so aggressively in the arts? 

Well, the answer is really simple. Our local elected officials, our 

business leaders and the public understand that a community’s culture is the cornerstone of its economic vitality. We have the facts 

to support this. Our recent report on the arts and the local economy documented a $922 million impact by our arts and cultural industry each year. Our nonprofit cultural organizations employ more 

than 23,000 workers. The more than 12 million people who attend 

cultural events each year spend more than a half a billion dollars 

beyond just buying a ticket to performances. They park their cars 

in garages. They spend their money in restaurants, hotels and 
19 

shops before and after being energized by great theater, dance, and 

exhibition. 

These days, rhetoric in Miami that attempts to stereotype the 

arts as a frill is drowned out quickly. There is overwhelming evidence all around us that cultural facilities and nonprofit arts organizations are employing people, making our community better, improving kids’ lives and playing a catalytic role in neighborhood and 

business redevelopment. 

Now, I know the people who work in our cultural industry. They 

are passionate about what they do, and they have to be, or they 

wouldn’t be in this business. The average cultural worker in our 

community makes about $28,000 a year. That is approximately 30 

percent less than the community’s overall average salary. And like 

many other American workers, our arts employees work more than 

one job to make ends meet. 

Now, my mayor and the 13 members of our county commission 

see this phenomenal commitment every day. The budget for our 

Department of Cultural Affairs has more than quadrupled over the 

past decade. Even my exceedingly loyal staff of public servants 

knows that this is not just attributable to my charm and good 

looks. It is a recognition by our local elected leaders that the arts 

are a great investment for our community. The signal that our 

county is sending to our cultural workforce and to the business and 

individuals who support the arts is powerful. It is akin to the signal that this Congress recently sent across our Nation when $50 

million was approved for the NEA as part of the American Recovery and Reinvestment Act. It says that you understand that, like 

other industries, jobs in the cultural sector are being lost and jeopardized. It says to us that artists and cultural businesses are part 

of the solution for restarting our economy and rekindling the creativity and the character that continue to make America great. 

I urge you to reinvest even more significant resources in the arts 

to help achieve America’s economic and human recovery and revival. Thank you very much. 

[The statement of Mr. Spring follows:] 

Prepared Statement of Michael Spring, Director, Miami-Dade County 

Department of Cultural Affairs 

My name is Michael Spring and I serve as Director of the Miami-Dade County 

Department of Cultural Affairs. I am responsible for supervision of a public arts 

agency in Miami, Florida with an annual budget of more than $26 million and a 

staff of 35. Thank you for this opportunity to talk about the economic and employment impact of the arts from a local perspective. 

For the past twenty-seven years, our Miami-Dade County Department of Cultural 

Affairs has been at the epicenter of one of our nation’s most dynamic, diverse and 

rapidly growing arts communities. In 1982, there were a little more than one hundred non-profit arts organizations in our County; today, there are more than one 

thousand arts businesses. 

This growth has occurred at every level—from grassroots, neighborhood groups 

energized by our tremendous diversity to major cultural institutions like the New 

World Symphony and the Miami Art Museum. We have been enriched by the waves 

of immigration that have brought new artists and arts supporters to our community 

and by the evolution of our County from a vacation and retirement spot to a major 

international center for commerce and tourism. Recognition of Miami’s cultural stature has been accelerated by the accomplishments of our artists across the world and 

by recent phenomena like Art Basel Miami Beach, where thousands of arts travelers 

and members of the international press arrive in our community every December 

for the country’s most exciting visual arts fair. 
20 

A one thousand percent growth rate is phenomenal for any sector of our economy. 

Our first generation arts enterprises are producing new work with a distinctive 

Miami ‘‘voice’’ and are helping to create a bold new city. Our community’s goal for 

investing in the arts is not modest; it is nothing less than establishing our place 

prominently in the global entertainment and economic marketplace. 

I want to offer a short story about just one of our many outstanding arts organizations—Miami City Ballet. Each season, this 23-year old company employs hundreds 

of people—not just the more than fifty full-time dancers who have established 

Miami City Ballet as one of the nation’s great dance companies, but also company 

administrators, accountants, carpenters, stagehands, seamstresses, teachers and 

physical therapists. Two months ago, Miami City Ballet made its triumphal appearance at City Center in New York City. The New York Times raved about the performances saying, ‘‘this is as good an advertisement for its home city as any ballet 

company in America.’’ Less than two weeks later, back in Miami, the Ballet announced that due to the worsening economy, it was laying off 8 dancers and reducing its budget next season by more than 25%. There are more layoffs likely to come. 

I could have told this story from a ‘‘human interest’’ perspective of dancers who 

have trained a lifetime and have mortgages and car payments to make. Or I could 

have talked about the legendary Edward Villella, the company’s artistic director, 

who has put his heart and soul into building this company. This would have been 

a shameless attempt to pull on your heartstrings; but that is not the point of my 

testimony today. Instead, this story points out that our cultural sector is a major 

player in promoting Miami’s new image for business and tourism. It also demonstrates that the non-profit arts industry, as an employer, is an integral part of 

our local economy. And it underscores the fact that arts organizations are subject 

to the very same forces affecting America’s and the world’s economic viability. The 

results—job loss and downsizing—are jeopardizing our ability to employ people and 

sustain this cultural segment of the economy. 

Miami-Dade County is an endlessly surprising place, even for those of us who 

grew up there. It amazes visitors and even some residents that we are building one 

of the newest, major cultural centers in the world. 

Our County government is investing more than one billion dollars in cultural infrastructure that is being matched multifold by businesses and individuals. Our Department of Cultural Affairs is one of the largest in terms of budget in the nation. 

Recently, we opened a major new, $481 million performing arts center in downtown 

Miami. We are upgrading and building dozens of neighborhood cultural facilities. 

And just four years ago, the voters of our community passed a referendum by a two 

to one margin to approve more than $450 million in general obligation bonds for 

cultural facilities building projects—including new downtown, bayfront art and 

science museums. 

Why is Miami-Dade County investing so aggressively in the arts? The answer is 

very simple: our local elected officials, our business leaders and the public understand that a community’s culture is a cornerstone of its economic vitality. 

We have the facts to support this. Our recent report on the arts and the local 

economy documented a $922 million impact by Miami-Dade County’s arts and cultural industry each year. Our non-profit cultural organizations employ almost 

23,000 workers. The more than 12 million attendees to cultural events each year 

spend more than a half a billion dollars beyond buying tickets to performances. 

They park their cars in garages and spend their money in restaurants, hotels and 

shops before and after being energized by theater, dance and art exhibitions. Our 

neighborhood businesses rely on the ‘‘traffic’’ created by our non-stop calendar of 

arts activities. 

There is another powerful economic effect of the arts in our community. Cultural 

facilities and their performances and exhibitions are revitalizing our neighborhoods. 

Our Mayor and County Commission have seen the transformative effect of the arts 

on some of the most abandoned and neglected parts of our community. Miami-Dade 

is a living laboratory demonstrating how pioneering arts groups and artists have 

helped to transform places like Lincoln Road, South Beach and Little Havana from 

once forbidding to now thriving and safe neighborhoods. In fact, we designated our 

new performing arts center as the catalytic project for the tax increment district in 

the north part of downtown Miami. The Center’s effect on revitalizing this area has 

far exceeded even the most optimistic projections. Tax increment funds have grown 

ten times as much as expected. What was a part of downtown that people avoided 

is being transformed into a vibrant entertainment, education and business district. 

These days in Miami, attempts at rhetoric that stereotype the arts as a ‘‘frill’’ are 

drowned out quickly. There is overwhelming evidence all around us that cultural 

facilities and non-profit arts organizations are employing people, making our com-
21 

munity better, improving kids’ lives and playing a catalytic role in neighborhood and 

business redevelopment. 

In fact, the John S. and James L. Knight Foundation affirmed the power of the arts last year when they announced the investment of $40 million of the foundation’s funds in our community through the Knight Arts Challenge. In considering 

the most promising way to continue to transform Miami into one of the great 21st 

century cities, the Knight Foundation selected the arts as its one strategic area for 

this significant infusion of private funds. 

Our burgeoning cultural life also is a strategic element of promoting Miami as a 

tourism destination. Our Greater Miami Convention & Visitors Bureau gets it. They 

understand that a community’s cultural assets give it a competitive edge in attracting tourists and conferences. When we vie with the Caribbean for vacationers, submit our successful bids to host Super Bowls or compete for major conventions, we 

sell our destination as the ‘‘sophisticated tropics’’—featuring fabulous beaches, great 

shopping and cuisine, America’s preeminent cruise ship port and an art scene that 

entertains 24/7. 

What do our business leaders think about the arts? Our local economic development agency, the Beacon Council, did a survey of Miami businesses last year. They 

found that more than 75% of our local businesses consider having vibrant cultural 

activities as important or very important to their companies. Almost 80% support 

the arts through employee participation on boards or as volunteers with cultural organizations. 

In a survey of citizens undertaken by Miami-Dade County last October, 60% of 

our residents were very satisfied or satisfied with the quality of the cultural offerings in our community. This was up by more than 10% from the 2005 survey results. This is remarkable given the youthfulness of our cultural life and the newness 

of most of the population of our County. The vast majority of Miami-Dade’s cultural 

organizations are less than a generation old; most of the residents of our community 

were not born here. In spite of the youth of our cultural community and its audiences—and the fact that in Miami, traditions of arts-going have not yet had generations to take hold—our citizens are increasingly recognizing the quality and diversity of our arts activities. 

Even today, at a moment when disposable income for our citizens is at a premium, attendance by Miamians at concerts, museums, plays and dance performances is reported as ‘‘up’’ this season. People are expressing their priorities by what 

they are willing to purchase as their buying power diminishes. Admittedly, ticket 

sales do not make up for the significant downturn in contributions by individuals 

and businesses but our enthusiastic audiences are demonstrating that people value 

the arts as an integral part of their lives. 

For our young city, the job of reaching the children of our community is critically 

important. Like other local arts agencies across America, our Department focuses 

resources on making the arts affordable and accessible for families and kids. Cultural activities supported by our Department serve more than 2 million children annually. Our Department directly reaches thousands of kids each year with a scholarship program to make summer arts and sciences camps available to those who 

might otherwise not have the means or opportunity to go. In addition, through our 

Culture Shock Miami program, high school and college students, ages 13-22, can 

buy tickets for only $5 to almost any arts event in town. Thousands of students are 

online buying these tickets to the arts and discovering the wonder of live performances and learning about the richness of our diverse cultures. In our day care centers, in our schools and on standardized tests, we are seeing a direct correlation between a child’s involvement in the arts and success in the classroom. The arts are 

an essential part of preparing students to excel in an increasingly complex, competitive and sophisticated job marketplace. 

I know the people in our cultural workforce. They are passionate about what they 

do. They have to be or they would not be in our business. The average cultural 

worker in Miami-Dade County makes about $28,000 a year—that’s approximately 

30% less than our community’s overall average salary. Like other American workers, many arts employees work more than one job to make ends meet. Most artists 

and arts administrators work without the kinds of benefits that are offered to their 

peers employed by the for-profit sector or even government. And they are committed 

beyond reason to making sure that only the best quality product reaches our stages 

and gallery walls. They believe deeply that the arts can change lives and put this 

into action by producing programs for school kids even when money is scarce to do 

this. 

Miami-Dade County Mayor Carlos Alvarez and the thirteen members of our County Commission see this kind of phenomenal commitment every day. The budget for 

our Department of Cultural Affairs has more than quadrupled over the last decade. 
22 

This is an explicit recognition by our elected leaders that the arts are a great investment for our community. Last year, due to the enactment of statewide property reform measures, our County government had to reduce its budget by more than $200 

million. Now that’s a lot of money where I come from. I am proud to report that 

the budget for our Department of Cultural Affairs was not reduced. 

The signal that our County is sending to our cultural workforce and to the businesses and individuals who support the arts is powerful. It is akin to the signal that 

this Congress recently sent across our nation when $50 million was approved as a 

part of the American Recovery and Reinvestment Act. It says to me and the thousands of people who support and work in the arts in my town that you recognize 

the contributions that we are making every day to the economy. It says that you 

realize that non-profit cultural groups employ people in our cities who work hard, 

day and night, weekdays and weekends, to make a better life for our families and 

kids. It says that you understand that like other industries, jobs in the cultural sector are being lost and jeopardized. It says that progressive governments understand 

the amazing return on investment that adequate support for the arts produces—for 

our cities and for our people. It says to us that artists and cultural businesses are 

part of the solution for restarting our economy and rekindling the creativity and 

character that continue to make America great. 

I thank you for your support of the arts and urge you to reinvest even more significant resources as a strategic and productive way to help achieve America’s economic and human recovery and renewal. 

I am proud offer this testimony along with our nation’s leading non-profit organization for advancing the arts in our country, Americans for the Arts, where I serve 

as a board member. Together, we attest to the vitality of the arts across our country 

and to the essential role of local arts agencies, artists and arts organizations in cities and towns throughout America. We also affirm the remarkable returns being realized by progressive governments in setting policies and investing support in the 

work of non-profit arts organizations and artists. 

For an online copy of ‘‘The Impact of the Arts in Miami-Dade County’’ study 

please go to www.miamidadearts.org/Documents/Publications/ 

2008%20Arts%20Economic%20Impact%20Study.pdf 

For more information about the Miami-Dade County Department of Cultural Affairs, please go to www.miamidadearts.org. 

To see the Miami-Dade County Department of Cultural Affairs’ discount ticket 

program for high school and college students, Culture Shock Miami, please go to 

www.cultureshockmiami.com. 

For information about the thousands of intrepid local arts agencies throughout 

our nation making America’s communities more vibrant and economically successful, please go to www.americansforthearts.org. 

Chairman MILLER. Thank you. 

Mr. Bahr. 

STATEMENT OF MICHAEL BAHR, EDUCATION DIRECTOR, 

UTAH SHAKESPEAREAN FESTIVAL 

Mr. BAHR. Chairman Miller, members of the committee, I am Michael Bahr, the education director for the Utah Shakespearean 

Festival, and I am grateful for this opportunity to share the impact 

the festival has on its community and the challenges that are affecting not only us but our sister organizations across the country. 

The festival has played a large role in defining the rural town 

in which we live, and therefore, the present status of the economy 

threatens not only the arts and industry but Cedar City, Utah, 

itself. 

Let me share a little bit about the festival. The Utah Shakespearean Festival, now in its 48th year, is a destination theater 

that produces Shakespeare and other classic plays in repertory, 

and is located in rural Iron County in Cedar City, Utah, a town of 

28,000 people. The festival produces nine plays in repertory for 

130,000 attendees a year. 
23 

The average patron travels over 200 miles one-way to attend, 

with primary audiences coming from Utah, Nevada, Arizona, and 

Idaho. These patrons generate from $30 million to $35 million for 

the local economy through lodging, dining, shopping, fuel, and 

recreation. The festival’s budget for 2008 was $6.7 million. Our 

funding is approximately 75 percent earned income, that is ticket 

sales, concession, and merchandise; and 25 percent unearned income, that is grants, foundations, and gifts. 

I would encourage you to read the minutes we have before you 

about our lovely history. Let me get to the good stuff, or shall I say 

the bad stuff. 

Sales for our 2009 season are currently nearly 20 percent behind 

where we were last year. Foundations have already significantly 

reduced their gifts because of shrinking or nonexistent portfolios. 

Consequently, our budget, which was $6.7 million for the 2009 

year, is now $5.9 million. At $5.9 million, we have cut about 

$800,000 in total cost, but in reality, the cuts are much deeper. 

These cuts include the following: three full-time positions from a 

28-member staff to 25, but what really hurts is 55 seasonal positions. We have a staff of 390 total employees which is now down 

to 335. Those are actors, electricians, costumers, carpenters, company managers, et cetera, because for every one actor, there are 

seven people that support those one actors. All live musicians for 

the present season have been cut. One-week reduction in the summer season, one-week reduction in the fall season, and a two-week 

reduction in rehearsal times. Our fall season, which includes Pericles, a very large wonderful Shakespeare play, has now been reduced to Tuesdays with Morrie and the Complete Works of William 

Shakespeare, and Women in Black, all two- and three-person 

shows. 

Our theater, like other businesses, is required to pay unemployment. When an employee does not find a job after his work is finished with us, he goes to another part of the country. And when 

unemployment is found, we have to pay that unemployment. In an 

average year, we have paid approximately $60,000 to $70,000 annually in unemployment fees. Last year we saw that double to 

$130,000, and just in the month of February alone, we have paid 

$14,000 in unemployment for actors outside of our area after they 

have left our area. 

Cedar City merchants and civic leaders have already expressed 

great concerns about these cuts. We think it is clear that by cutting 

2 weeks from our season, cutting the size of our shows and the 

amount of material we buy to produce them, by cutting the number 

of employees we hire, the economic benefit to our community will 

decrease measurably. 

Cedar City benefits economically from the many visitors who 

travel to the festival each year. Various economic impact studies 

have been done. In 2002, the International Festival and Dance Association estimated the economic impact from the festival on our 

community was $64 million, and Americans for the Arts, in 2007, 

found that the nonprofit arts were $22.47 million. We see that and 

in talking with our Chamber of Commerce as about $30 million to 

$35 million. In addition to serving our own county, the festival, 
24 

through its education department, has a strong relationship with 

educational entities. 

We are part of the National Endowment for the Arts Shakespeare for a New Generation and serve 70 schools and 30,000 students annually. They have also contacted us and are worried about 

cuts happening within this area. 

Perhaps the most revealing story of the impact of the festival on 

Cedar City is the building of a new theater during the 1980s recession. And I think this is relevant now. For many years, Cedar 

City’s economy had been bolstered by active iron mines around the 

town. As the bottom fell out of the iron market during the 1980s, 

the mines were closed and jobs were lost. But the festival was still 

running at 98 percent in attendance. And so the city fathers and 

the festival said, let’s throw our money into this. And with help 

from Housing and Urban Development, we had $2.3 million that 

we invested in a $7.5 million new theater. Within 5 years, we recouped all of that cost through increases in sales and property 

taxes alone within our area. 

Art in Cedar City is not luxury. It is business. It feeds our souls 

and our families. It hires an educated and talented workforce. It 

provides positive economic impact far beyond the theater. Around 

1590, a farm boy from the country whose father dealt in sheep and 

gloves travelled to the big city of London and started writing plays. 

His plays became successful. He bought interest in his theater. He 

was a businessman, and it was good business. 

He said, ‘‘The man that hath no music in himself, nor is not 

moved with concord of sweet sounds, is fit for treason, strategems 

and spoils * * * let no such man be trusted. Mark the music.’’ 

May we preserve and mark the music, art, theater and dance 

that moves us and keeps us all human. 

Thank you. 

[The statement of Mr. Bahr follows:] 

Prepared Statement of Michael Bahr, Education Director, 

Utah Shakespearean Festival 

Chairman Miller, Members of the Committee, I am Michael Bahr, the education 

director for the Utah Shakespearean Festival, and I am grateful for this opportunity 

to share with the Committee on Education and Labor the impact the Festival has 

on its community and the challenges that are affecting not only us but also our sister organizations across the country. The Festival has played a large role in defining 

the rural town in which we live; therefore, the present status of the economy threatens not only the arts and our industry, but consequently the community I live in. 

Background 

Let me share some background about our organization so you can understand our 

present challenges: The Utah Shakespearean Festival, now in its forty-eighth season, is a destination theatre that produces Shakespeare and other classic plays in 

repertory. It is located in rural Iron County and is hosted on the campus of Southern Utah University in Cedar City, Utah, a city of 28,000 people. The Festival produces nine plays in repertory for 130,000 attendees a year. The average patron travels over 200 miles one-way to attend, with the primary audience coming from Utah, 

Nevada, Arizona, and Idaho. These patrons generate 30 to 35 million dollars for the 

local economy through lodging, dining, shopping, fuel, and recreation. The Festival’s 

budget for 2008 was $6.7 million dollars. Our funding is approximately 75 percent 

earned income (ticket sales, concessions, and merchandise) and 25 percent unearned 

income (grants, foundations, and other gifts). 

History 

In 1962, Fred C. Adams, the Festival’s founder, was a college theatre professor 

in Cedar City who had a dream of creating a Shakespearean festival in the heart 
25 

of the red rocks of southern Utah. With $1,000 donated from the local Lion’s Club, 

Adams started his first season. The first season ran for two weeks and yielded 

$3,000 in ticket sales. This left Adams with a budget of $2,000 for his second season. The Festival grew in size and scope with professional actors, designers, artisans 

and directors joining the company. The community also rallied around and caught 

the vision. Today, the Festival performs nine plays in three theatres from late June 

to late October. 

The Festival has received numerous accolades and national praise, including the 

prestigious Tony Award in the year 2000 for Outstanding Regional Theatre, the 

2001 National Governors Association Award, and the Utah Best of State Award in 

2003. 

Economic Challenges Result in Cuts 

Now, nearly 50 years later, sales for our 2009 season are currently nearly 20 percent behind where we were last year. And some foundations have already significantly reduced their gifts because of shrinking or non-existent portfolios. Based on 

what we are projecting for 2009, and our steadily increasing costs, we cut deeply 

our 2009 budget. When the cuts were finished we had dropped from a budget of 6.7 

million to 5.9 million. These cuts are even deeper than they appear because of the 

many fixed cost that could not be reduced. While it appeared to be a cut of $800,000, 

in reality it was much deeper. These cuts included the following: 

• Three full-time positions (from 28 to 25) 

• 55 seasonal positions, including actors, electricians, costumers, carpenters, company managers, etc. (from 390 to 335; for every one actor it takes seven employees 

to support them) 

• All live musicians (requiring recorded music instead) 

• A one-week reduction in the summer season 

• A one-week reduction in the fall season 

• A two-week reduction in rehearsal time 

• The replacement of two fall play titles, Pump Boys and Dinettes and Pericles 

with the much smaller and less expensive Tuesdays with Morrie and The Complete 

Works of William Shakespeare (abridged) 

• The closing of two buildings 

• The elimination of cell phones (except for three positions) 

• The establishment of a shared housing policy for company members 

• The elimination of vocal coach and dramaturgy positions in the fall season 

• Shorter ticket office hours 

• Reduced travel for recruitment, training, conferences, etc. 

• Reduced custodial and building maintenance 

In addition, the bad economy has caused some costs to skyrocket: especially unemployment. Our theatre, like other businesses, is required to pay unemployment 

when an employee does not find a job after his work is finished with us. Thus when 

another theatre closes or downsizes in another part of the country, it affects us because the artists that work for us can’t find another job. In the past we have paid 

approximately $60,000 to $70,000 annually in unemployment claims. In 2008 that 

number doubled to to $130,000. In 2009 we have budgeted for a similar amount; 

we can only hope it is enough. 

Community Economic Impact, Then and Now 

Cedar City merchants and civic leaders have already expressed great concern 

about these cuts. We have heard from many who are worried about the loss of two 

weeks of revenue from patrons and four weeks of revenue from Festival seasonal 

employees. We think it is clear that by cutting two weeks from our season, by cutting the size of our shows and the amount of materials we buy to produce them, 

by cutting the number of employees we hire, the economic benefit to our community 

will decrease measurably. 

Cedar City benefits economically from the many visitors who travel to the Festival 

each year. Various economic impact studies have attempted to track this benefit. 

One study, completed in 2002 by the International Festival and Events Association 

estimated that the economic impact of the Festival was $64,321,873. In 2007, American for the Arts in The Arts and Economic Prosperity III found that the nonprofit 

arts were a $22.47 million industry in Iron County. However, this study surveyed 

only the full-time jobs of the nonprofit industry, leaving out the vast impact of our 

seasonal employees. We at the Festival feel that the real number is somewhere between these two. But, whatever the number, the economic benefits will definitely 

decrease. 
26 

Regional Impact 

And the pain may spread. In addition to serving Iron County, the Festival, 

through its education department, has a strong relationship with educational entities across the Intermountain West. Various programs serve multiple ages and provide professional, educational outreach. For example, we are honored to be a member of the National Endowment for the Arts Shakespeare for a New Generation program. Through this program we are able to reach 30,000 students annually, from 

seventy schools in Utah, Nevada, Arizona, and Idaho. Many rural communities have 

called, fearful that our outreach programs might be cut by our budget challenges. 

We hope not, but the future is uncertain at best. 

A New Theatre Brings Revenue to Town 

Perhaps the most revealing story of the impact of the Festival on Cedar City is 

the building of a new theatre during the 1980s recession. For many years, Cedar 

City’s economy had been bolstered by active iron mines west of town. As the bottom 

fell out of the iron market, the mines were closed, jobs were lost, houses were put 

up for sale, the economy slumped. At that time, the Festival performed primarily 

in only one theatre, the Adams Shakespearean Theatre, which, despite the recession, was still operating at 98 percent capacity. The Festival and the city proposed 

an additional theatre, and in 1987/88, 2.3 million dollars were obtained from Housing and Urban Development to assist in building the 7.5 million dollar facility. Mineral lease funds, revenue that had been generated from the mines, were also used. 

Within five years of the opening of the new Randall L. Jones Theatre, Joe Melling, 

Cedar City manager, said that the money invested in the building had been recouped through an increase in sales and property tax alone. 

Art Is Not a Luxury 

Art in Cedar City is not a luxury; it is business. It feeds our souls and our families. It informs and educates our citizens. But it also fills our dinner plates, pays 

our mortgages, and enhances our standard of living. It hires an educated and talented workforce. It fills our hotels, our restaurants, our shops. It provides positive 

economic impact far beyond the theatre. 

Around 1590, a farm boy from the country whose father dealt in sheep and gloves 

traveled to the big city of London and started writing plays. He became so successful he bought interest in his own theatre; hmmm, he was a businessman. And of 

course it was good business, because everyone wanted to see the plays, because they 

were about US. His plays had a resonance for he knew the common man. He said: 

The man that hath no music in himself, 

Nor is not moved with concord of sweet sounds, 

Is fit for treasons, stratagems and spoils; 

The motions of his spirit are dull as night 

And his affections dark as Erebus: 

Let no such man be trusted. Mark the music. 

The Merchant of Venice, Act V, Scene 1 

May we preserve and ‘‘Mark the music,’’ art, theatre, and dance that moves us 

and keeps us human. 

Chairman MILLER. Thank you very much. 

Mr. Daly. 

STATEMENT OF TIM DALY, ACTOR AND CO–PRESIDENT, THE 

CREATIVE COALITION 

Mr. DALY. Thank you, Chairman Miller, members of the committee. 

My name is Tim Daly. I am here as an actor, producer, director, 

and co-president of The Creative Coalition, which is a nonprofit, 

nonpartisan public advocacy organization of the arts and entertainment community. 

I want to thank you for holding this hearing and for allowing me 

to testify and echo a lot of the things that my fellow testifiers/ 

testifees have said. 

I am not sure that enough people understand that millions of 

Americans earn their livelihoods through the arts and ancillary 
27 

professions or that the entertainment—entertainment is America’s 

second largest export. Too often we look at the arts as something 

extra, something outside of our daily lives, as a luxury item. And 

I am here to—I am on a mission to make people understand that 

arts are part of our cultural, educational and economic main 

course. They are not dessert. 

So today I would like to show you how I see things firsthand as 

a working actor in the commercial sector. I would also like to leave 

you with a couple of thoughts about ways I think we can ensure 

that our arts economy remains vibrant. First, a little background 

about how arts has impacted my own family. 

After serving in World War II in the Navy for 5 years, my dad 

moved to New York where he made his living working on Broadway and off Broadway in the theater and then later in television. 

Decades before I played a doctor on ‘‘Private Practice’’ he was 

known as Dr. Paul Lochner on a TV series called ‘‘Medical Center.’’ 

And of course my sister Tyne Daly is a wonderful and well known 

actor, and now a third generation is entering the business, including Tyne’s daughter and my own son; God help them both. My son 

needs a job, by the way. 

So my family accounts for a few of the 45,000 professional actors 

that the Bureau of Labor statistics estimates are working in the 

United States. But that number does not begin to capture the real 

employment impact of the entertainment industry. For instance, 

when a studio green lights a movie, the press is filled with news 

about the star, but the real story is the thousands of people that 

are put to work on that production. The next time you are in the 

movies, stay in your seat and watch the entire credits role to the 

end, and you will get an idea about the number of people who 

worked so hard to bring that film to the screen. And the economic 

impact on the community is enormous. 

My show ‘‘Private Practice’’ for instance, which is an hour-long 

TV drama, it takes us 9 days to shoot an episode. We employ 200 

people full time during that production season. For two of those 9 

days, we have an additional crew of 50 people on the set and each 

episode can have between 100 and 300 extras. 

But beyond that, in any single 9-day period, the show spends 

about $20,000 on food for caterers; $25,000 to $40,000 on clothes 

and costumes; $15,000 on sets and furniture; and $2,500 on dry 

cleaning, which is, I mean, that could keep a dry cleaners open, one 

TV show. And yet people seldom make that connection. But if you 

add up the numbers and the tax revenue and the money spent in 

the community by those employed on the show, you will quickly see 

how big the economic impact is. 

But I think the story is, there is a lot more to it. I have been 

thinking a lot lately about the iPod. A recent study by researchers 

at UC Irvine estimate that 14,000 jobs with wages of $753 million 

were created in the U.S. as a result of the iPod in 2006. The innovation, engineering, technology and manufacturing of this ubiquitous product would not exist without people’s desire to enjoy 

music in their daily lives. Without art, there is no iPod. So we have 

to take those jobs into account. 

Art and entertainment are important engines of our economy, 

and we can’t take that for granted. We have to invest in it like we 
28 

invest in any other sector. And here are a couple of ways we can 

do that. First, Federal support for the arts plays a pivotal role. We 

are really grateful for the expanded NEA funding in the stimulus, 

and we encourage continued and strong and growing support for 

the nonprofit arts sector. Investment is so small when one looks at 

the returns both to society and both culturally and economically. 

Second, we have got to nurture the next generation by giving our 

kids access to art in schools. I know that is primarily a State responsibility, but the economic consequences of letting arts in 

schools atrophy will be felt nationally. In rough times, arts is usually the first things to go. We need to give our kids the chance to 

exercise their imagination so that they can be the most creative 

and innovative thinkers that they can be, whether they wind up as 

artists, engineers, scientists, mathematicians, politicians, we need 

creative thinkers to compete in the global economy. 

And arts train the creative mind. If just one person’s creative 

spark catches fire, the economic impact can be enormous. I am 

thinking of the artistic vision of Shonda Rhimes, who created both 

the hit series ‘‘Grey’s Anatomy’’ and ‘‘Private Practice.’’ She is essentially an inventor who started two successful companies, two 

television shows. She is a storyteller. But what she has done is provided good jobs, pumped millions of dollars into our economy each 

week. And if a businesswoman were to open a factory employing 

thousands of people, we would hail her entrepreneurial spirit and 

see how we could support her with public policy, replicate her success. And artists can have the same economic impact. Yet we see 

her as a creator of stories and not as a creator of jobs. And we have 

got to change that misconception. 

Yes, arts inspire us. They entertain us. They reflect back to us 

our triumphs, our failures. They bring us beauty and joy. They 

challenge our beliefs. And at best, they nourish our souls. But we 

have also got to recognize that arts employ our neighbors. They 

support small businesses, create jobs and foster innovations. We 

have got to start discussing arts as part of our daily lives. And they 

are part of our culture and our education and our economic main 

course. 

Thank you for giving me the opportunity to testify. I really do 

look forward to answering your questions if you have them. And I 

mean that. 

[The statement of Mr. Daly follows:] 

Prepared Statement of Tim Daly, Actor and Co-President, 

the Creative Coalition 

Chairman Miller, Ranking Member McKeon and members of the Committee, my 

name is Tim Daly, and I am here today as an actor, producer, director, and as copresident of The Creative Coalition. The Creative Coalition is the non-profit, nonpartisan public advocacy organization of the arts and entertainment community. 

Our members are actors, directors, producers, writers, musicians, dancers, painters 

and others who make their living in performing and fine arts. I would like to thank 

you for holding this hearing and recognizing the important role that arts play in 

our economy. 

I don’t believe it is commonly known that entertainment is America’s second largest export, and millions of Americans earn their livelihoods through the arts and 

in ancillary occupations. Despite that fact, it seems to me that we too often look at 

art as something extra, a luxury item, something that is disconnected from our daily 

lives and our economy. It is my mission to make America understand that the arts 

are part of our cultural and economic main course; they are not dessert. 
29 

Today, I want to talk with you as a working actor about how I see the economic 

impact of the entertainment industry today. I’d like to follow that discussion with 

three concrete things we can do to ensure that America’s arts economy remains vibrant in the years ahead. 

Let me start with a few words about the impact of the arts on my own family. 

After serving for five years in the Navy during World War II, my father came to 

New York City and supported our family as an actor in the theatre, both on and 

off Broadway, and later, on television. Decades before I began playing a doctor on 

Private Practice, my father starred as Dr. Paul Lochner on the television series 

Medical Center. My sister Tyne is a well known actress. And now a third generation 

of Dalys, including Tyne’s daughter and my son, has entered the profession. We 

have been blessed to work in the theatre, both on and off Broadway, in non-profit 

regional theatre, in film, radio, and on television. But the story is larger. My family 

is inundated with artists. We make our livings as musicians, writers, composers, 

painters, animators, photographers, actors, directors and performance artist. We 

owe everything to the arts and to our pursuit of artistic expression. 

According to the federal Bureau of Labor Statistics, I’m one of roughly 45,000 

working professional actors in the U.S., but that number doesn’t begin to capture 

the employment impact of the entertainment industry. When an A-list star, like 

Julia Roberts, agrees to do a movie, the press is filled with the news about that individual. But the real economic story is about the thousands of people put to work 

when that movie is produced. 

Each production—whether a movie, television show or play—takes an incredible 

amount of support and behind-the-scenes labor and talent. Next time you watch a 

movie, stay in your seat until the credits stop rolling, and you’ll get a sense of the 

huge number of actors, craftsmen, editors, technicians and others who work so hard 

to bring that film to the screen. 

More importantly, take a look at the economic impact that the entertainment industry can have on a community. For example, my show, Private Practice. We just 

finished shooting our second season, and I’d like to try to give the members of the 

Committee a sense of the economics at work on an hour-long network drama. It 

takes us nine days to shoot one episode of Private Practice. We employ about 200 

people day in and day out during production season. For two of those nine days, 

we have a second crew of 50 people on set, in addition to those regularly working 

on the show, and each episode can have 100 to 300 extras. 

Look beyond those employed on the show and you’ll see the ripples spread still farther across the economy. In that nine-day period, the show spends about $20,000 

on food from outside caterers. $25,000 to $40,000 is spent on clothes and costumes, 

$2,500 on dry cleaning, and $15,000 on furniture for the sets. Again, those numbers 

are for a single episode. Add up the numbers and the sales tax, and the money 

spent in the community by those employed on the show, and it quickly becomes apparent how big the impact on the local economy can be. 

Even those numbers, though, don’t give us a complete picture of the jobs created. 

I think the employment impact needs to be viewed through a much broader lens. 

Take a technology like the iPod, for example. Here is a blockbuster product that exists to deliver entertainment to individuals. A recent study by researchers at the 

University of California, Irvine, estimated that 14,000 jobs were created in the U.S. 

as a result of the iPod in 2006, with $753 million in wages generated as a result. 

The engineering, innovation, technology and manufacturing of this ubiquitous product would not exist without people’s desire to have music in their daily lives. Without the art, there would be no iPod. 

In ways large and small, obvious and obscure, art and entertainment are important engines of our economy. But we cannot take this for granted. We must take 

steps to ensure the continued vibrancy of our arts and entertainment. We have to 

invest in the future. Here are three ways we can do that. 

First, federal support for the arts continues to play a critical role. The Creative 

Coalition strongly supported Congress’ decision to expand funding for the National 

Endowment for the Arts in the recently passed stimulus package, and we encourage 

continued strong support for the not-for-profit arts sector. The investment is so 

small when one looks at the tremendous returns that arts and entertainment pay 

back to society both culturally and economically. 

In these troubled times, we should look to President Franklin Roosevelt’s example. The New Deal’s arts programs created much-needed jobs and fostered great talents that otherwise may have been lost. The contributions of those artists to our 

culture endure, and their successful careers resulted in employment for many others 

in the years that followed. 

Second, it’s vitally important that we nurture the next generation by giving our 

kids access to art in schools. I know this is primarily a state responsibility, but the 
30 

economic consequences of letting arts in schools atrophy will be felt nationally. In 

tough times, arts education can be the first thing to go. Again, I think we make 

a fatal mistake if we view the arts simply as a luxury. We don’t need to promote 

a career in the arts, but we do need to give our kids a chance to exercise their 

imaginations so that they can be the most creative and innovative thinkers they can 

be. We need creative engineers, and mathematicians, and scientists, and yes, politicians in order to compete in the global economy. Arts train the creative mind. 

Third, it’s imperative that we change the discussion about the arts in our culture. 

We must acknowledge not only that arts inspire us, reflect back to us our triumphs 

and mistakes, bring us beauty and joy, challenge our beliefs, and enrich our souls, 

but also that we are surrounded by the work of artists every day. The arts are interwoven with engineering, with innovation, with technology, and these creators are 

part of our economic and cultural main course. 

In conclusion, I’d like to tell you about Shonda Rhimes, a writer who is the creator 

of both Grey’s Anatomy and Private Practice. It’s amazing to think that all of the 

economic activity I described surrounding Private Practice stems from her artistic 

vision. She is essentially an inventor who started two successful companies—these 

two television shows—that provide good jobs and pump millions of dollars each 

week into our economy. If a businesswoman were to open a factory employing a 

thousand people, we would hail her entrepreneurial spirit. In the arts, someone like 

Shonda Rhimes has the same economic impact. Yet we often forget that these artists are not only creators of stories, but also creators of jobs for a broad sector of 

our society. 

I thank the Committee for giving me this opportunity to testify. I look forward 

to answering any questions you may have. 

Chairman MILLER. We will take that direction. 

Mr. Ridge. 

STATEMENT OF BRUCE RIDGE, MUSICIAN AND CHAIRMAN, 

INTERNATIONAL CONFERENCE OF SYMPHONY AND OPERA 

MUSICIANS 

Mr. RIDGE. Good morning Chairman Miller and members of the 

committee. 

My name is Bruce Ridge. I am chairman of the International 

Conference of Symphony and Opera Musicians, or ICSOM, which 

is a conference of the American Federation of Musicians. I am also 

a double bassist in the North Carolina Symphony. 

On behalf of ICSOM’s thousands of members and AFM’s tens of 

thousands of members, comprising over 230 affiliated locals across 

the country, including Local 367 in Vallejo and Local 424 in Richmond, in your district, Mr. Chairman, I thank you for your attention to this issue. 

Chairman MILLER. So do they. 

Mr. RIDGE. In 1932, my orchestra was founded by the WPA. That 

was also a time of economic crisis. But instead of cutting back, we 

invested in the arts. 

Critics sometimes say that classical music is just for the elite, 

but as an orchestral musician, I know how much everyone loves to 

hear us play. And the numbers bear this out. Opera attendance has 

increased 40 percent since 1990. Classical music accounts for 12 

percent of sales on iTunes, and music schools across the country 

are seeing an all-time high in the numbers of applicants. 

Musicians don’t do it for the money. We are ultimately the Nation’s biggest donors to the arts. And we are the ones who sacrifice 

to keep orchestras alive in hard times. We happily give to the arts. 

But we must still pay doctors’ bills, make rent, and feed our families. 
31 

I have been fortunate in my career. I started playing at age 10. 

And I have worked steadily as an orchestral musician for 30 years. 

By age 15, I was a working professional in the Virginia Symphony. 

I would go from school to symphony and then play in late-night 

jazz clubs I was too young to legally get into otherwise. Back home 

by 3:00 a.m., I would be sitting in school just a few hours later. 

Although I may have started a bit younger than others, my story 

is not atypical. Many classical musicians work several jobs, driving 

from town to town as members of a Freeway Philharmonic. Some 

members work in as many as four different orchestras, each a different 2-hour commute from home and each with its own set of concerts, rehearsals and community involvement. 

In today’s economic climate, the challenges for working musicians are growing ever more serious. Many orchestras face the 

prospect of reduced seasons, layoffs, lower wages and higher health 

care premiums. This is a national problem. The musicians of the 

Cincinnati Symphony, one of the world’s finest orchestras, recently 

accepted an 11 percent pay cut. The Baltimore Opera Company has 

filed for bankruptcy. The Santa Clarita Symphony in Congressman 

McKeon’s district cancelled its 2009 season. The musicians of the 

Honolulu Symphony are now 7 weeks behind in paychecks. On a 

daily basis, my phone rings with more news of yet another orchestra’s financial crisis. 

For musicians, the losses are immeasurable. Some must sell 

their instruments to make ends meet, while others face the loss of 

their careers all together. Many of these musicians have children 

or spouses who depend on them and who also suffer from these cutbacks. How could I respond when a woodwind musician asked me 

how she could afford to take her child to a doctor after her orchestra’s proposed cutbacks? 

Our losses are everyone’s losses. If musicians can’t afford to stay 

in the profession, the Nation will lose its music. Musicians are 

small business people, patching together royalties, concert fees, and 

union benefits like session fees, pension, and health care to come 

up with a decent living. On Broadway, musicians face replacement 

by recorded music substituted for live music. In Hollywood, outsourcing film scores to musicians abroad threatens the livelihood of 

American musicians. 

Congress can make and indeed already has made a big difference 

in these musicians’ lives. The American Jobs Creation Act helped 

our recording musicians by providing tax incentives for domestic 

film production. Pension reform legislation has also helped the 

AFM keep its pension plan available to musicians. 

And Chairman Miller, we thank you for your leadership on this 

important issue. 

Several members of this committee have cosponsored H.R. 848, 

the Performance Rights Act, which gives recording artists the right 

to royalties when their performances are played over AM-FM radio. 

Recorded music makes money for radio, whereas radio doesn’t pay 

performers a single cent. The Performance Rights Act would correct 

this inequity. And we ask you to consider supporting this legislation. 

Indeed, entertainment is America’s second largest export. And 

music is essential to nearly all of its forms, either standing alone 
32 

or as part of theater, film, and television. We can count the dollars, 

but we can’t count the value of music to the American spirit. We 

saw it when the New York Philharmonic traveled to North Korea 

on a mission of diplomacy and artistry, and the Nation and the 

world were electrified by those images. And we see it here at home 

when my own WPA-founded North Carolina Symphony plays free 

concerts for tens of thousands of school children every year. I can’t 

even go to the grocery store without people telling me how much 

it meant to them when the North Carolina Symphony played at 

their school. The value of these experiences cannot be measured 

and must not be lost. And on behalf of musicians everywhere, I 

thank you for this opportunity to address the committee. 

[The statement of Mr. Ridge follows:] 

Prepared Statement of Bruce Ridge, Chairman, International Conference of 

Symphony and Opera Musicians, American Federation of Musicians of 

the United States and Canada (AFL–CIO) 

Good morning, Chairman Miller, Ranking Member McKeon and members of the 

Committee. My name is Bruce Ridge. I am Chairman of the International Conference of Symphony and Opera Musicians, or ICSOM, which is a conference of the 

American Federation of Musicians, or AFM, and I’m also a double-bassist in the 

North Carolina Symphony. On behalf of ICSOM’s thousands of members and AFM’s 

tens of thousands of members—comprising over 230 affiliated locals across the country, including Local 367 in Vallejo, CA and Local 424 in Richmond, CA in Chairman 

Miller’s district—I thank you for your attention to the impact of the economic crisis 

on the working musicians and performers ICSOM and the AFM represent. 

As you have already heard, the arts help drive the economy, build communities, 

and educate future generations. Too often forgotten, however, are the artists who 

make these contributions possible. 

As an orchestral musician, I know how much people love to hear us play; and we 

love to play for them. The numbers bear out this popular commitment to the arts: 

Opera attendance has increased 40% since 1990. Classical music accounts for 12% 

of sales on I-Tunes, and music schools across the country are seeing an all-time high 

in numbers of applicants. America’s talented young people are seeking opportunities 

to pursue their dreams of artistic excellence in record numbers. 

Musicians love their work. None of us do this for the money. It takes years of 

hard work and dedication to perfect our craft. But we must still pay doctors’ bills, 

make rent, and put food on our families’ tables. 

I’ve been fortunate in my career. I started playing at age 10, and I’ve worked 

steadily as an orchestral musician for 30 years, the past 22 of which I’ve spent in 

the North Carolina Symphony. But finding this stability has not been easy. By age 

15, I was a working professional in the Virginia Symphony. I would go from school 

to symphony, then play in late-night jazz clubs I was too young to legally get into 

otherwise. Back home by 3 am, I’d be sitting at a desk in school just a few hours 

later. Although I may have started a bit younger than others, my story is not atypical. Many classical musicians work several jobs, driving from town to town as members of a ‘‘Freeway Philharmonic.’’ Some members work in as many as four different 

orchestras—each a different two hour commute from home, and each with its own 

set of concerts, rehearsals, and community involvement. 

In today’s economic climate, the challenges for working musicians are growing 

ever more serious. Some orchestras have already folded, and many more face the 

prospect of reduced seasons, layoffs, lower wages, and higher health care premiums. 

This is a national problem. The musicians of the Cincinnati Symphony, one of the 

world’s finest orchestras, recently accepted an 11% pay cut. The Baltimore Opera 

Company has filed for bankruptcy. The Santa Clarita Symphony, in Ranking Member McKeon’s district, cancelled its 2009 season. The musicians of the Honolulu 

Symphony are now seven weeks behind in paychecks. On a daily basis my phone 

rings with more news of yet another orchestra’s financial crisis. 

For musicians, the losses are immeasurable. Some must sell their instruments to 

make ends meet, while others face the loss of their careers altogether. Many of 

these musicians have children or spouses who depend on them and who also suffer 

from these cutbacks. What could I say, when a woodwind musician whose orchestra 

faced reductions in pay and healthcare benefits asked me how she would be able 

to take her child to the doctor with the orchestra’s proposed cutbacks? 
33 

The problems extend beyond orchestral music. Musicians of all types are small 

businesspeople, patching together royalties, concert fees, and union benefits like session fees, pension, and health care to come up with a decent living. On Broadway, 

musicians face replacement by ‘‘virtual orchestras’’—recorded music substituted for 

live music. In Hollywood, outsourcing film scores to musicians abroad threatens 

American musicians’ livelihood. 

Congress can make—and indeed already has made—a big difference in these musicians’ lives. The American Jobs Creation Act helped our recording musicians by 

providing tax incentives for domestic film production. Congress has also helped the 

AFM keep its defined-benefit pension plan available to its members, and we thank 

you for your leadership on this important issue. 

Congress continues to help working musicians. Several members of the Committee 

have co-sponsored H.R. 848, the Performance Rights Act, which gives recording artists a right to royalties when their performances are played over AM-FM radio. 

Most recording artists aren’t household names. They’re background performers and 

session musicians—the behind-the-scenes artists who make music happen. Even the 

more well-known recording artists often have a narrow window of popularity; their 

songs are then played over the radio for years thereafter. But unlike other copyright 

holders, performing musicians never receive a single cent when their recordings are 

played over the AM-FM radio. The Performance Rights Act would rectify this inequity, and we ask you to consider supporting this important legislation. 

Entertainment—theater, film, video games, recordings, etc.—is America’s secondlargest export, and music is a central part of that economic enterprise. But music’s 

value as a symbol of the American spirit is incalculable. We saw it when the New 

York Philharmonic, an ICSOM and AFM-represented orchestra, traveled to North 

Korea on a mission of diplomacy and artistry. We see it here at home when my own 

North Carolina Symphony—founded during another time of economic crisis, the 

Great Depression, as part of the WPA—plays free concerts for tens of thousands of 

schoolchildren each year. Our performers cherish at these opportunities, but they 

also need to make a living. 

Thank you for your attention. 

Chairman MILLER. Thank you. 

Ms. Florino. 

STATEMENT OF JOANNE FLORINO, EXECUTIVE DIRECTOR, 

TRIAD FOUNDATION, INC. 

Ms. FLORINO. Good morning, Chairman Miller, Mr. Guthrie, and 

members of the committee. 

Thank you for the opportunity to testify before you on the value 

of foundation giving to the arts and potential threats to that giving. 

My name is Joanne Florino. I am the executive director of the 

Triad Foundation. We are based in Ithaca, New York, and we are 

a family foundation. We make over $9 million in grants each year, 

and a significant portion of our grantmaking goes toward arts education and cultural programs in the States of New York, North 

Carolina, and Florida. 

Additionally, I am here on behalf of the Alliance for Charitable 

Reform. The Alliance was founded in 2005 as a project of the Philanthropy Roundtable, which represents over 600 private foundations across the United States. ACR was formed to respond to legislative proposals on Capitol Hill that affect foundations and the 

charities they serve. 

As I know you are aware, the arts community relies heavily on 

private contributions. According to recent data by the National Endowment for the Arts, private contributions accounted for 43 percent of arts organizations financing, or $13.5 billion, compared to 

13 percent from government. 

The Triad Foundation is proud to be among the many foundations who give generously to these causes. And in our grantmaking, 
34 

we seek to expand access to the arts, expand the audience to the 

arts and expand the pool of current and future donors for the arts. 

An example is a $1 million challenge grant which Triad made to 

ImaginOn in Charlotte, North Carolina. That grant stimulated a $1 

million match by other donors in that city. ImaginOn is now the 

home of the Children’s Theater of Charlotte and the public library 

of Charlotte and Mecklenburg County Youth Services Department. 

The opportunity to co-locate those two organizations has resulted 

in outstanding programming and more accessible arts and cultural 

education programs for the youth of Charlotte, North Carolina. 

As you know, there is a proposal in President Obama’s 2010 

budget that could have a chilling effect on private giving, particularly as it relates to arts organizations. The proposal would essentially make it more expensive for individuals to contribute to charities, either directly or through foundations, by limiting the value 

of the itemized deduction individuals receive for making such gifts. 

In fact, Indiana University Center for Philanthropy estimates that 

the proposal would represent a 20 percent increase to the cost of 

giving. 

On behalf of both the Triad Foundation and the Alliance for 

Charitable Reform, I believe this proposal is a step in the wrong 

direction and comes at a time when Americans and the government 

are relying more, not less, on the nonprofit sector. 

The House Budget Committee released their budget proposal yesterday. And fortunately, their proposal excluded President Obama’s 

proposed limit on the charitable deduction. It is clear that this proposal is troubling to both Members of Congress and the charitable 

community. I do want to thank the members of the House Budget 

Committee for excluding that proposal. 

Deteriorating economic conditions are forcing charities to face 

higher demands for services with fewer resources. When we look at 

human services, we see the example of the Midnight Mission Shelter in Los Angeles, which estimates that the downturn in the economy is leading them to provide15,000 more meals each month even 

though donations are down $200,000 from the previous year. 

The arts community faces the same challenges. The Wall Street 

Journal reported that the Baltimore Opera’s board recently voted 

to liquidate the organization. And I have to say that those of us 

who work with nonprofits know that resurrecting a dead nonprofit 

is far more difficult than maintaining one. 

The Detroit Institute of the Arts reduced 20 percent of its staff 

as part of a $6 million budget cut. So this new budget proposal 

comes at a terrible time. 

According to a January 2009 study by MetLife, cash flow concerns have forced 40 percent of Americans to give less often to 

charities. And I have to believe that that is also causing the drop 

in arts audiences. 

On top of that, the Tax Policy Center estimated that the administration’s itemized charitable deduction proposal coupled with 

higher rates on individuals would result in a $9 billion drop in giving for 2011, roughly triple the yearly budget of the American Red 

Cross. 
35 

Who loses under this proposal? Those that rely most heavily on 

private giving. Organizations dedicated to arts education, music 

and cultural programs. 

Foundations have not been immune from financial losses either. 

Far from it. The philanthropic sector has sustained losses of 20 to 

45 percent of its assets. Now more than ever it is time to encourage 

as much private giving as possible. 

We respectfully request that Congress enact their policies to do 

just that, and Congress can take immediate and responsible steps 

to put more dollars in the hands of charities. 

First, we ask that Congress reduce the excise tax private foundations pay on their net investment income from 2 percent to 1 percent. The two-tiered excise tax creates a disincentive for foundations to give more in times of great need, like now. A reduction in 

the excise tax rate for all private foundations would make more 

dollars available for charities. 

Second, Congress should extend and expand the popular IRA 

charitable rollover provision, which is scheduled to expire at the 

end of 2009. That provision drives more dollars to charity by allowing Americans over the age of 70.5 to contribute up to $100,000 

from their individual retirement accounts to charity without having 

to declare the contribution as income for the year. 

Both of these provisions would stimulate and encourage additional giving to nonprofit organizations who are in desperate need 

of resources. By further incentivizing charitable giving and not discouraging it, Congress can ensure that Americans will continue to 

have access to the important and valuable services they rely on 

from our nonprofit sector. I appreciate the opportunity to appear 

before this committee and share my thoughts on these issues and 

welcome any feedback or questions you might have. 

Thank you. 

[The statement of Ms. Florino follows:] 
36 
37 
38 
39 

Chairman MILLER. Thank you. 

Mr. Thomasian. 

STATEMENT OF JOHN THOMASIAN, DIRECTOR, NATIONAL 

GOVERNORS ASSOCIATION, CENTER FOR BEST PRACTICES 

Mr. THOMASIAN. Thank you, Mr. Chairman, members of the committee. My name is John Thomasian. I am director of the National 

Governors Association Center of Best Practices. 

I appreciate the opportunity to appear before you today. I am 

going to talk briefly about a report we recently published entitled, 

‘‘Arts and the Economy: Using Arts and Culture to Stimulate State 

Economic Development.’’ 
40 

As director of the NGA Center of Best Practices, our mission is 

to provide Governors with advice and innovative ideas on the full 

range of domestic policy issues, including economic development. 

With regard to State economic strategy, our approach has been to 

help Governors inventory their natural assets and identify the competitive industries in their States. When we do this, it becomes 

clear that creative industries are valuable components of all State 

economies. 

Estimates in the number of workers employed within these industries vary widely. We heard Representative Slaughter today 

talk about 5 million. That may be a lower bound. Others have estimated it to be as high as 40 million when you look at those who 

add creative content to product. A number of Governors have documented the economic impact of the creative industries. 

Arkansas, for example, found that the arts and cultural-related 

firms employ nearly 27,000 individuals and generate almost $1 billion in personal income for Arkansas citizens. 

In North Carolina, creative industries infused $3.9 billion into 

the State’s economy in 2007. 

And in Massachusetts, the cultural sector contributed well over 

$4 billion. 

Recognizing these positive impacts, Governors have led efforts to 

foster the arts and creative industries in their States, and they 

generally employ four broad tools: grants; tax incentives; financial 

aid to education and workforce training institutions; and technical 

assistance to artists and arts-related businesses. 

Small, targeted grants are a frequently used tool. In Mississippi, 

for example, after Katrina, grants to artists in the order of approximately $5,000 were given to help the artisans and artists get back 

into their businesses. The program also included a series of workshops on business plan development and accounting to help artisans sustain their efforts. 

Tax incentives are another strategy Governors have used to spur 

cultural enterprises. Maryland designates arts and entertainment 

districts that receive property tax credits for construction of artsrelated spaces, exemptions from the State’s amusement and entertainment tax, and income tax deductions for artistic works sold by 

artists that reside within the district. As of 2008, at least eight 

other States had similar measures. 

Enhancing workforce skills through State universities and community colleges are another way Governors can assist the creative 

industries. Connecticut offers a film industry training program at 

several community colleges. The program teaches individuals the 

basics of feature film and episodic television production and also 

how to pursue entry-level freelance work in the industry. 

State universities also can bring artists and traditional industries together to stimulate new thinking and new lines of product. 

The University of California in Santa Cruz has partnered with 

local industry in the city of Santa Cruz to establish the Santa Cruz 

Design Plus Innovation Center. The center leverages local design 

talent to grow and attract design-based businesses. Innovation, 

such as the camera phone and carbon fiber bicycle frames, have 

sprung from these activities. 
41 

1 Americans for the Arts, Creative Industries in 2008: The State Report, (Washington, D.C.: 

Americans for the Arts, 2008). www.americansforthearts.org 

Finally, some programs focus on simply providing technical assistance to artists and artist entrepreneurs who are establishing 

arts-related businesses. The Alaska Native Arts Program provides 

workshops and business courses in centralized locations to address 

issues important to any small business, such as quality control, 

market analysis, pricing, and Federal and State regulations. Other 

program activities help individuals network, identify funding opportunities and reach larger markets for their work. 

In conclusion, these examples and others highlight the fact that 

the Governors are leading efforts to capitalize on the benefits creative industries can offer. Creative industries can create jobs. They 

can attract investments. They can generate tax revenues and stimulate local economies. A creative workforce, as has been discussed 

here, also can contribute to product innovation and improve the 

competitiveness of traditional industries. 

I appreciate the opportunity to talk with you today. And I look 

forward to answering any questions. Thank you. 

[The statement of Mr. Thomasian follows:] 

Prepared Statement of John Thomasian, Director, Center for Best 

Practices, National Governors Association 

Chairman Miller, Ranking Member McKeon, and members of the committee, my 

name is John Thomasian and I am the director of the National Governors Association Center for Best Practices (NGA Center). I appreciate the opportunity to testify 

before you today on the recent NGA Center report, Arts & the Economy: Using Arts 

and Culture to Stimulate State Economic Development and to discuss governors’ 

work to maximize the economic benefits of the creative industries. 

The NGA Center develops innovative solutions to today’s most pressing public policy challenges and is the only research development firm that directly serves the 

nation’s governors. The NGA Center’s policy experts provide governors advice and 

examples on a full suite of policy issues, including education, health care, homeland 

security, the environment, public safety, and economic development. 

Overview 

Conservative estimates of the number of workers employed nationwide by arts 

and culture-related industries—also known as ‘‘creative industries’’—reveal more 

than 612,000 arts businesses, which employ nearly 3 million workers.1 These figures 

represent workers employed strictly by arts-centric sectors such as museums; performing arts (including music); visual arts; film, radio, and television; design and 

publishing; and arts schools and services. However, artists and other creative workers can be found in a multitude of industries, from tourism and agriculture to technology and consumer products. Broader definitions of the creative industries—or 

‘‘creative class’’ as coined by Richard Florida—encompass those whose economic 

function is to create new ideas or creative content. By this definition, around 40 million Americans—or 30 percent of employed people—are creative sector workers. 

Creative industries are far broader than many might initially assume. Today, you 

will find artists employed by numerous sectors critical to economic development and 

international competitiveness. The technology sector, for instance, includes workers 

who specialize in graphic and web design, animation, and media arts. Corporations 

that develop consumer products rely on artists to enhance the design, look, and feel 

of their products. 

In fact, creative workers are key to America’s economic competitiveness in a global market. The market value of products is increasingly determined by a product’s 

uniqueness, performance, and aesthetic appeal, making creativity a critical competitive advantage to a wide array of industries. Apple Corporation’s popular iPod is developed through the company’s iPod Engineering team, which includes not just engineers, but also two design teams, whose job it is to conceive, design, and produce 
42 

2 Apple.com, Job Opportunities: Skills You’ll Need, (Web site). http://www.apple.com/jobs/ 

us/pro/ipod/skills.html. 3 Chris Hayter and Stephanie Casey Pierce, Arts & the Economy: Using Arts and Culture to 

Stimulate State Economic Development (Washington, D.C.: National Governors Association Center for Best Practices, 2009). http://www.nga.org/Files/pdf/0901ARTSANDECONOMY.PDF 

new iPod products. The company includes ‘‘creativity’’ among the six skills it most 

desires in its iPod Engineering employees.2

For the last several years, the NGA Center has been helping governors understand their state economies in terms of natural assets and clusters of competitive 

firms. Clusters are simply groups of related producers, suppliers, distributors, and 

intermediaries that draw advantages from their mutual proximity and relationships. 

Creative industries represent in several types of clusters, including specialty tourism, graphic and web design businesses, film making industries, and unique agricultural products (wine making for example). 

Today, governors recognize that creative industries are valuable components of 

state economies: • Creative and new media industries are growing in number and playing increasingly prominent economic and social roles; • Companies’ decisions about where to locate their businesses often are influenced 

by factors such as the ready availability of a creative workforce and the quality of 

life available to employees; and 

• Many businesses today require collaboration with artists, designers, and media 

specialist to develop innovative products. 

In addition to strengthening a state’s competitive edge and contributing revenue 

for states’ economies each year, creative industries can help revitalize weak economic areas, attract a skilled workforce, and bring in tourism dollars. For instance, 

in Louisiana the tourism industry—the state’s second-largest industry, employing 

around 144,000 people—capitalizes on the state’s rich history and culture as well 

as its unique musical and culinary heritage. The tourism industry partners with 

local musicians and artists each year to draw thousands of tourists to New Orleans, 

not for Mardi Gras, but for the New Orleans Jazz & Heritage Festival. The festival 

celebrates the cultural heritage of Louisiana through a showcase of music of every 

kind—jazz, gospel, Cajun, zydeco, blues, R&B, rock, funk, African, Latin, Caribbean, 

and folk to name a few—as well as through presentations of crafts by local artists, 

folklife exhibitions, and distinctly local culinary creations. 

In recognition of the impact creative industries have on state economic development, numerous governors have adopted a wide range of strategies designed to foster arts and culture and tap into the resulting economic benefits. 

The NGA Center’s Report and Findings 

In January, the NGA Center for Best Practices released a report, Arts & the 

Economy: Using Arts and Culture to Stimulate State Economic Development.3 The 

National Endowment for the Arts funded the report, which highlights the governors’ 

efforts to maximize the economic impact of creative industries. A copy of the full 

NGA Center report is attached to my written testimony. 

In summary, the NGA Center report found that governors are taking action to 

develop creative industries by supporting businesses and entrepreneurs; partnering 

with universities to train creative workers; encouraging collaborations between artists and traditional industries; improving local development by incorporating arts 

into community planning; and attracting tourists to their states by promoting cultural assets and products. 

The NGA Center report is not an advocacy piece for arts and culture. Rather, it 

aims to shed light on the creative cluster that many governors have identified 

through studies of their statewide and regional economies. Creative workers and 

businesses comprise a significant portion of the economy in many states. For example, creative industries in Arkansas employs nearly 27,000 individuals and generates $927 million in personal income for Arkansas citizens. Creative enterprises 

are the state’s third largest employer—after transport and logistics and perishable 

and processed foods. In North Carolina, the wages and income of workers employed 

by creative industries infused $3.9 billion into the state’s economy in 2006. And in 

Massachusetts, the 17.6 percent yearly growth of the cultural sector contributed 

$4.23 billion to the state’s economy. 

As governors identify the extent to which creative industries contribute to state 

economies, they work to support creative industries through businesses, entrepreneurs, and networks and by developing a skilled workforce for the sector to draw 

upon. Governors incorporate arts and culture into community development plans 

through the use of grants, enterprise zones, and by supporting development of art 
43 

space. Finally, they include arts and culture in state tourism strategies, particularly 

through efforts that promote unique cultural heritage or local products. 

Developing Creative Industries 

Governors are leading many different approaches to develop and strengthen 

states’ creative industries. 

North Carolina, for example, focuses energy on developing and expanding its 

crafts industry. HandMade in America in North Carolina—established in 1993 with 

assistance from the North Carolina Arts Council—encourages and enables product 

development among local craft artisans. HandMade hosts a business boot camp to 

teach business planning, marketing, and entrepreneurship skills to artists. HandMade links more than 320 regional artists, crafts producers, bed and breakfasts, 

farm tours, restaurants, and other businesses through a 200-mile-trail system that 

is part of a larger tourism marketing campaign. 

Ohio bolsters its arts-focused nonprofits through the Ohio Arts Council’s Sustainability grant program, which provides two-year grants to nonprofit organizations 

that offer broad-based, ongoing arts programs within their communities. In Texas, 

the Commission on the Arts couples grants with technical assistance to help nonprofit arts organizations build organizational capacity and strengthen business management practices. Likewise, Virginia’s Commission for the Arts provides Technical 

Assistance Grants to support nonprofit management and operations training. 

Creative industries encompass a number of small businesses and individual entrepreneurs as well as nonprofit arts organizations. In Mississippi, grants to artist-entrepreneurs emerged as a formidable post-Katrina revitalization strategy. The 

state’s Business Recovery Grant Program, awarded $5,000 grants to small arts businesses, self-employed artists, and craft enterprises affected by the storm. Recipients 

used the grants to purchase tools, equipment, and supplies to create and sell arts 

or crafts. The program, which included a series of workshops, including business 

plan development, accounting practices, and insurance needs, was featured in Governor Haley Barbour’s Recovery Expo, a 2006 forum on recovery strategies and resources. 

Working with state universities and community colleges, governors also are bolstering the business acumen of artists, to maximize economic impact. In Alaska, the 

University of Alaska Rural Extension Program provides support for artist-entrepreneurs in rural communities through the Native Arts Program, which provides 

workshops and business courses to address issues important to entrepreneurs, such 

as quality control, market analysis, pricing, and federal and state regulations. Another example is Connecticut’s Film Industry Training Program at Middlesex Community College, Norwalk Community College, and Quinnipiac University, offered by 

the Connecticut Office for Workforce Competitiveness in partnership with the Commission on Culture & Tourism. The program trains individuals who want to learn 

the basics of feature film and episodic television production and pursue entry-level 

freelance work in the industry. 

Increasingly, governors realize a competitive edge by encouraging collaborations 

among artists, designers, and product engineers in a variety of manufacturing and 

high-tech industries, especially in product design. These collaborations stimulate 

new thinking, encourage new product development, and make the most of a state’s 

collective creative and business resources. For example, The University of California 

Santa Cruz, part of the state university system, partnered with local industry and 

the city of Santa Cruz to establish the Santa Cruz Design + Innovation Center. The 

center leverages local design talent to grow design-based business and attract new 

businesses to the area. It seeks to create opportunities for networking and interdisciplinary collaboration as well as a space for teams to tackle cutting-edge design 

challenges. 

In Wisconsin, the John Michael Kohler Arts Center Arts/Industry Residency Program offers artists access to industrial technologies through residencies, workshops, 

and tours. The primary component of Arts/Industry is a residency program at 

Kohler Company, the nation’s leading manufacturer of plumbing hardware, where 

artists have the opportunity to spend two to six months creating works of art using 

industrial equipment and materials—pottery, iron, brass, and enamel—and exploring forms and concepts not possible in their own studios. The Kohler Company, in 

turn, is given fresh ideas for its product lines. For example, Kohler’s ‘‘Artist Editions’’ collection of surface-decorated plumbing fixtures grew directly out of the Arts/ 

Industry program. 

Community Development 

Arts also can play a major role in community development and redevelopment 

through job creation and improving the quality of life. Governors are helping local-
44 

ities incorporate arts into community development plans through grants to communities, technical assistance, and financial or tax incentives. Governors also designate 

select areas as ‘‘arts districts’’ to target their cultural economic development dollars. 

Utah’s Creative Communities Initiative awards grants to communities to help 

connect the arts to community building, civic engagement, community planning, and 

use of public space. These ‘‘Utah Creative Communities,’’ and received access to 

leadership training to help them leverage additional funding and community buyin. The measurable economic impact from initiative projects was $4,500 to $13,500 

per community. 

Another approach used by governors is the cultivation of strong local leadership 

for incorporating the arts into local development. The South Carolina Design Arts 

Partnership (SCDAP) is a joint initiative of the South Carolina Arts Commission 

and Clemson University. The initiative improves the quality of the state’s built environment through design education and leadership training. South Carolina’s institute provides training for the state’s mayors and municipal and county planners for 

applying design principles to planning, development, and transportation. 

Tax credits are another strategy governors employ to spur economic activity 

through cultural enterprises. For instance, Maryland created a program that designates Arts and Entertainment Districts. These districts receive property tax credits for construction of arts-related spaces, exemptions from the state’s amusement 

and entertainment tax, and income tax subtractions for artistic work sold by artists 

residing within the designated district. In return, the districts become focal points 

that attract businesses, stimulate cultural development, and foster civic pride. 

Maryland’s Arts and Entertainment Districts have achieved significant increases in 

retail occupancy rates, property value, and tourist traffic. As of 2008, seven other 

states—Indiana, Iowa, Louisiana, New Mexico, Rhode Island, Texas, and West Virginia—had similar policies in place, leading to the establishment of 58 local arts or 

cultural districts across the nation. 

The presence of cultural facilities is a key component of a productive infrastructure for economic activity through the arts. The Florida Division of Cultural Affairs’ 

Cultural Facilities Program funds the construction, renovation, and acquisition of 

cultural facilities in Florida. One of the most recent cultural facilities programs 

among states is the Massachusetts Cultural Facilities Fund. Created in 2006 as part 

of a major economic stimulus bill in Massachusetts, the fund aims to increase investments from both the public and private sectors to support the planning and development of nonprofit cultural facilities in the state. 

Tourism 

A major focus of governors’ art strategies is strengthening tourism. Many travelers pick vacation spots not only for their natural resources but also for their cultural offerings. Governors use a number of innovative strategies to tap into their 

states’ unique cultural resources as tourism assets. By encouraging cultural tourism 

and marketing their unique arts assets, governors are attracting more visitors and 

augmenting the impact of tourism as a contributor to state economies. 

Through the New York State Heritage Area Program, New York is able to offer 

state-level coordination of its cultural, natural, and historical resources. The program includes 19 ‘‘heritage areas,’’ which encompass more than 425 municipalities. 

The Heritage Area Program aims to promote and preserve cultural and historical 

areas throughout New York through a state-local partnership. The New York State 

Office of Parks, Recreation and Historic Preservation offers a guide and a brochure 

to promote the state’s heritage areas. 

Connecticut has recently instituted Culture & Tourism Partnership Grants to encourage interdisciplinary collaborations among arts, historical, film, and tourism organizations with the goal of helping localities build relationships and develop strategies to generate revenue and attract visitors. The Arts Division of the Connecticut 

Commission on Culture & Tourism administers the grants, which can be as much 

as $3,000. In 2006, projects funded by the grant program included an arts festival, 

a family-friendly museum exhibit ‘‘trail,’’ a film festival, a historic garden trail, a 

Halloween craft and event festival, and a theater package. 

Branding is an important marketing technique used in Montana to promote 

unique homemade and homegrown products of Montana artists and farmers. The 

Made in Montana (MiM) program was established in 1984 to help market products 

created, produced, or enhanced in the state by Montana residents. Likewise, the 

Kentucky Craft Marketing program uses a unique brand to help promote products 

crafted by Kentucky artists. In addition, the program supports efforts to market the 

products themselves to wholesale trade outlets, the tourism industry, and the public. It uses an annual exhibition that connects Kentucky artists and craftspeople 
45 

with national buyers for their products and serves as an information clearinghouse 

to help artisans locate sales opportunities, materials, and funding. 

New Jersey is another state that uses branding to attract tourist dollars and bolster the sales and marketing of resident artists and arts organizations. Discover Jersey Arts is a statewide campaign to promote cultural tourism, build arts audiences, 

and generate revenue for arts organizations. Sponsored by the New Jersey State 

Council on the Arts and local partners, Discover Jersey Arts uses its Web site, a 

toll-free hotline, the Jersey Arts Guide, a Jersey Arts Ticket member card program, 

and other cooperative marketing programs to promote the Discover Jersey Arts 

brand. 

Other states, like New Mexico, attract visitors by promoting unique cultural destinations. The New Mexico Fiber Arts Trails is a collaboration between the state 

and a network of fiber artists. The program promotes New Mexico’s heritage while 

boosting tourist traffic and creating opportunities for New Mexican artists. This program allows rural artists to practice their heritage and remain in their homes, 

which helps develop rural areas of the state. 

Conclusion 

As these examples—and others highlighted in the NGA Center report—demonstrate, governors are leading efforts to capitalize on the numerous benefits creative industries can offer to state economies. Through creative industries, states can 

create jobs, attract investments, generate tax revenues, and stimulate local economies through tourism and consumer purchases. In addition, creative industries are 

playing a key role in the contemporary workforce, making creative contributions to 

industries’ products and services, and infusing culture into community development. 

Thank you for having me here today to discuss the impact of creative industries 

on economic development and jobs. I look forward to answering your questions about 

the NGA Center Report. 

ATTACHMENT

NGA Center Report: Arts and the Economy: Using Arts and Culture to Stimulate 

State Economic Development. Available at: http://www.nga.org/Files/pdf/ 

0901ARTSANDECONOMY.PDF. 

Chairman MILLER. Thank you very much. Again, thank you to 

all of the witnesses for your testimony. 

Let me say at the outset that I may be in a minority here, but 

I think President Obama has raised a very fundamental question 

about fairness. That question is very simple: A family that doesn’t 

itemize its deductions gives $100 to the arts, and it costs them 

$100. A family in the 25 percent bracket, it would cost them $75 

to give that $100. And the family that is in the 35 percent bracket, 

it costs them $65 to give that $100. And the question is, should we 

cap it at 28 percent? Why would we subsidize wealthy people with 

taxpayer money to give more money to the arts than people who 

are working and make a decision, and in fact, I think about half 

of this comes from people in the lower brackets when you add it 

all up. Despite the remarkable generosity of wealthy people in 

terms of the arts, there is a huge slew of people there that are in 

that position. That is a debate for the Ways and Means Committee 

for the moment, not for us, and the Budget Committee last night. 

I just want to make that point that I think it is a question to be 

raised about tax fairness and that policy. 

Let me begin by thanking you. You make a remarkable case, a 

case that I have always believed has existed. And I see the case 

in my own district and obviously in California of the fact that the 

arts are a huge engine for economic activity however you want to 

describe it, and each of you have described it a little bit differently 

in terms of the economic activity to small businesses in Cedar City 
46 

or to a large community in Miami-Dade, to that list of credits that 

you talked about, Mr. Daly. 

When you see the TV program, you see the movie or the stage 

play, you only see the people in front. And you realize what is 

going on behind the scenes. We used to have a great tour of New 

York City with the Arts Caucus for many years for Members of 

Congress so that people could go behind and see what it took to 

manage all of that. 

Why does music come so late in the credits? 

Mr. DALY. I don’t know. It is a very interesting—— 

Chairman MILLER. It is such an integral part of a movie and can 

be overwhelming, and it comes so late. We will take the answer off 

the air, unless you really have got the answer. 

Mr. DALY. My brother-in-law is a very well known composer and 

has made his living for a long, long time composing music for television and for movies. He has been nominated for I think 23 Emmy 

awards, never won, and a Cesar award, which is the French Oscar. 

And he would be better equipped to answer that question. 

Chairman MILLER. It is just something I wondered. 

Mr. DALY. But I don’t know. It is too bad because, you know, 

honestly, music can make or break a movie. I actually saw a movie 

that my son did the other day. I saw it first at the Tribeca Film 

Festival, and it had a lot of music in it that was source music, 

music that set the tone. And of course, when it was released, they 

couldn’t afford to pay for all that music. So it had a different score. 

And I have to say, honestly, it damaged the movie considerably. So 

I guess, I don’t know, that is probably a bad thing to say. I 

shouldn’t say that publicly. But you know, music is such an important part of film. 

Chairman MILLER. Thank you. 

Mr. Bahr, in Cedar City, you have obviously made a decision that 

you are going to dramatically reduce the size of this generator that 

has brought, you say you think it is around $35 million in economic 

activity to the community. That is mainly because of the loss of 

foundation assistance. You have talked to the foundations. Obviously, we have witnessed not only people’s individual retirement 

accounts but foundation investments of all kinds have dropped dramatically. 

Mr. BAHR. There are actually three reasons. And our foundations 

have actually hung with us. But our board, in November, a lot of 

movers and shakers within the State of Utah and Las Vegas area, 

they said, with the economy doing what it is doing, we will not approve this budget unless you cut by 15 or 20 percent. And so we 

went back in necessity, and then we started looking at our presales 

and our ticket sales and what the economy was doing. So the three 

reasons were: First of all, reductions in foundations; number two, 

the recommendation from the board; and just the reality of the 

economy. 

Chairman MILLER. So the signals you were seeing when you look 

toward the summer season, the signals what you were seeing—— 

Mr. BAHR. Correct. And knowing we wouldn’t be good stewards, 

that we wouldn’t be able to pay the others. And it was a very, very 

painful process. The hardest thing for me to read there, since we 

brought up music, it costs $50,000 for us to have a pit for a live 
47 

orchestra. We, since our inception, have had a live orchestra. And 

to make that—I think that strengthens the case of the musicians 

over here—was terribly painful. But when we through the 

$50,000—when we were trying to feed nine shows, because we have 

nine shows, and those nine shows feed all of those different professions, we chose to cut and pay a synthesizer and a man to orchestrate it for $24,000. So it is a major artistic loss for us. But the 

major thing that caused us to do that was the board wisely saying, 

if we don’t prepare for this, there will be a problem here. 

Chairman MILLER. Thank you. 

I have a zillion other questions. But I know we are going to get 

jammed up so I want to give my colleagues time here. 

Mr. Platts. 

Mr. Platts is a cochair of the Arts Caucus. He had a conflict and 

was unable to be with Ms. Slaughter at the opening, but you are 

recognized for 5 minutes. 

Mr. PLATTS. Thank you, Mr. Chairman. 

First, I appreciate you holding this very important hearing and 

all of our witnesses and do regret that I wasn’t able to be here for 

my cochair’s testimony as well as the interaction with her Q&A. 

But I do appreciate all of our witnesses for both your work regarding the arts and your testimony, both written and oral, here 

today. 

If I had a chance to show you my office, it is what I call my children’s private art gallery. I have got a 10-year-old and a 12-yearold. And it is my sanctuary down here. I am one of the lucky ones. 

I commute from my district in Pennsylvania each day. And down 

here, my office, between my kids’ photos and their artwork, and it 

is interesting how it has progressed from finger painting to now 

pottery and more engaged pieces of art, paper-mache projects and 

things, and a great respite, including the performing arts. 

I meant to bring along, too, what I will call their playbills or programs. My two children, with children in two other families, have 

on a number of occasions put on their own performances with my 

wife and two other moms, and where they do invite family and 

friends to come in and actually watch performances. So we are very 

blessed in them having that exposure. Thankfully, they have gotten 

my wife’s genes when it comes to artistic talent, not mine, because 

I don’t have any. 

The testimony, I want to very much associate myself with Congresswoman Slaughter’s testimony, and three points in particular. 

First, her focus on tourism and urban renewal. I have seen that in 

my hometown of York, Pennsylvania. A great mayor, Democratic 

mayor, Mr. Chairman, you will appreciate, who has done a great 

job of economic revitalization, and the arts community has been a 

critical part of that. 

The arts district that he has created has really revitalized that 

part of the town and gotten, not just artists there; they have a tax 

credit for artists who come and live at their place of business above 

their studios and things, but it has gotten people like my wife and 

I to get down and not just visit those art shops, but also spend 

money in restaurants and things in that area as well. So the investment is very important and has a good return. 
48 

A number of you—and Mr. Daly, I think in your testimony, especially your second point, arts in education, the importance of exposing our children. We are lucky to be in a school district that my 

kids do have art every week, several times a week, and have had 

that since kindergarten, and complementing what we do at home. 

And we know how it has benefited their creative spirit and how 

that transforms itself then. So the focus on education, and Congresswoman Slaughter talked about that as well. 

And then the third point in her testimony, and it really relates, 

Ms. Florino, to your comments on the charitable giving and a concern I do have. 

And I certainly, Mr. Chairman, respect your concerns about tax 

inequity. 

And that is not just in the area of charitable contributions but 

lots of areas of inequity in our Tax Code and the complexity of it. 

But I would mention, I think, one thing in response, and that is, 

whether you—there may be an argument that someone in a higher 

bracket gets a better benefit because of their tax bracket. A lot of 

those dollars, I know in our community, go to benefit low-income 

children, programs that they could not otherwise afford to attend, 

Shakespearean program or others, and we target that assistance to 

low-income families and their children so they can come and participate in the arts. So there is a return, maybe not to the Tax 

Code, but to the performers themselves from the generous—and I 

guess longwinded introduction here to the question on the charitable aspect. 

Because I see this as a partnership where we need to make investments. And I will be testifying next week for an increase to 

NEA in the 2010 appropriations bill in joining my cochair and feel 

strongly about that. But I do see it as a partnership where it is not 

just the public doing it, meaning government in this sense, but 

partnering with the private sector. And that that is the charitable 

donations. 

And Ms. Florino, your testimony lays it out, the $9 billion projected loss from all charitable giving which will translate. My question really is to the other members of the panel who are involved 

with organizations that are a recipient of those dollars. Do you 

share that concern that if we go forward with that proposal, that 

your organizations and the artistic community in the broad sense 

are going to see a loss if we do embrace a tax policy that discourages charitable giving? And whoever would like to respond. Maybe 

we will start on the left and just go quickly. I realize I have used 

up most of my time with the question. 

Mr. LYNCH. I would just point out that the arts, as I said in my 

testimony, are funded by a very fragile ecosystem of support, a very 

fragile ecosystem. Half of it from earned income; 40 percent from 

private sector; 10 percent from government. They need every break 

they can get from every sector, essentially. Earned income, we 

want a better economy. That is probably the most important thing. 

So the things that you are doing to create a better economy, more 

disposable income. 

Government is the great stimulator. And it has been that way for 

50 years. And in my testimony, I talked about how that worked. 

We need the kinds of things that you have been doing there. 
49 

But on the private sector, the information that comes—it needs 

to be looked at more as to what incentives work. And I have heard 

some different arguments here one way or the other. But whatever 

will continue to provide more dollars is what we need. 

Mr. PLATTS. In the interest of time, to the Chair—— 

Chairman MILLER. If you could supply the answer to Mr. Platts’ 

question in writing, it would be helpful. We can contact you. We 

are going to vote soon. 

Mr. PLATTS. Thank you, Mr. Chairman. 

Chairman MILLER. Thank you, Mr. Platts. 

If I might, if we could ask if members, if we go to 3 minutes, we 

might get everybody in before the votes, because I have been given 

a note that we are going to have votes soon. So if you just limit 

yourself to one question or statement, I don’t care what you do. But 

that way we may get through. And I know you came here interested and want to ask a question. 

Mr. Kildee. 

Mr. KILDEE. Thank you, Mr. Chairman. 

I think that is a good idea. I want to expatiate on something you 

said. You talked about the importance of music in movies. Several 

months ago, my wife and I watched a program in which they 

showed a scene from a well-known movie without the music, and 

then with the music. And it was very revealing, really very—can 

you imagine watching Gone With the Wind without the music? 

That is an extremely integral part of that movie. So I can’t play 

a note. I am probably tone deaf. But all my kids are musicians. 

And I yield back the balance of my time. 

Chairman MILLER. Mr. Polis. 

Mr. POLIS. Thank you, Mr. Chairman. 

I really appreciate this testimony today. In growing up, arts put 

food on my table. My mother, Susan Polis Schultz, is a poet, and 

my father is a graphic artist. And as a result of my life experiences 

and background, I have always been a strong supporter of the arts. 

And I particularly appreciate this testimony today regarding the 

diversity of the arts and also clarifying some of the commonly held 

misconceptions with regard to this very important sector in our 

economy. 

My only quick question is with regard to arts in rural areas. If 

somebody would like to address how sometimes one of the 

misperceptions is, when people say arts, they think cities only. A 

couple of you touched upon this. But talk about how this is really 

a national issue and how it benefits rural areas. 

Mr. BAHR. I am really, really glad you bring that up because that 

is a misconception. The arts are vibrant and alive and necessary 

in rural areas. And particularly by my testimony, I mean Cedar 

City, it is important. But to go even smaller than Cedar City, there 

are, I mean, community theaters and symphonies in those areas. 

And I want to echo the importance of Federal and State dollars, because they help leverage the much larger private dollars and especially in rural areas, particularly Idaho, Utah, Nevada. 

Mr. RIDGE. If I could add to that, as a member of the North 

Carolina Symphony, we play all over the State. Perhaps one of the 

more gratifying things we do is, every year, we do a holiday pops 

tour where we are sure to get to the smallest communities in the 
50 

State that raise money for once a year, and the entire town turns 

out. They cook for us backstage. And it is a huge event. So we play 

for, apart from all the school children all over the State, we try to 

reach every community in the State. It is a really remarkable situation to see. 

Mr. POLIS. Thank you, Mr. Chairman, I yield back the remainder 

of my time. 

Chairman MILLER. Congresswoman Fudge. 

Ms. FUDGE. Thank you, Mr. Chairman. 

Thank you all. I have two very quick questions. 

Mr. Lynch, this is to you. Have you seen a shift over the years 

in response to your organization’s arts and economic prosperity report? And what do you think that shift has been? 

And the second question is to Mr. Daly. You have recommended 

in your testimony that there needs to be a change in the discourse 

about how we deal with arts in our culture. And I would like to 

know how you think we can start that discourse. 

Mr. LYNCH. I have definitely seen a shift as we have been using 

economic data. That is not what the arts are about. The arts are 

about inherent value, beauty, ugliness, insight. That is what they 

are about. But it is always a question that we get from the business community or the government. And as we have had more information about jobs and economics, we have seen at the State 

level, as has been talked about at the local level and at the Federal 

level, and more interest in investment, more understanding. So it 

has made a huge difference 

Mr. DALY. That is an interesting question. You know, I was listening to NPR the other day, and some Wall Street guy was asked 

to name something in the stimulus package that he thought was 

pork. And he went right to the $50 million for National Endowment for the Arts. And frankly, it pissed me off because it is such 

a minute portion of the budget. And that $50 million divided up 

among the many organizations will go to generate so much private 

giving and gives so many people so much joy, and it employs so 

many people. There are good investments and bad investments. 

And that is really a good investment. 

But I think the main thing that, you know, a lot of times, I think 

artists themselves, when they talk about the arts, they are a little 

bit embarrassed, and there is a little bit of confusion between what 

we see in the tabloid news and on TV programs that focus on entertainment and about the arts. You know that—when we see, you 

know, these young women sort of self-emulating on TV, which is 

horrible and a horrible example for my daughter, that does not represent the broader spectrum of artists who are out there. Most artists are hardworking, disciplined people who are vital members of 

our society. 

So we have got to start talking about it the way we talk about 

manufacturing cars and the way we talk about, you know, other 

important industries and not be sort of embarrassed and not confuse the tabloid elements of, you know, our artistic community with 

the meat and potatoes of it, you know, which is my point. It is on 

the—it is spinach. You know, it should be on the plate with the 

meat and potatoes. 

Ms. FUDGE. Thank you. 
51 

Chairman MILLER. Mr. Hare. 

Mr. HARE. A quick statement and a quick question for you, Mr. 

Daly. 

I have a son, by the way, who has a masters degree in teaching 

theater and is an actor. So if anybody is looking for somebody, you 

want to give me a call later, I would appreciate it. 

Mr. Daly, I just want to know, given this bad economic climate 

that we are in, have you seen the effect it has on TV production 

of shows, like ‘‘Private Practice’’? And with these difficult times, 

who or what are the first resources that get cut? 

Mr. DALY. As with most businesses, nowadays it seems the first 

people to get squeezed are the smallest; the people that need the 

employment the most, that make the least money and whose income depends on paying their mortgage or their rent every month 

are the first people to get squeezed. And I don’t think the entertainment industry, you know, the commercial part of it is immune 

to that. I think that happens in a lot of industries. But also there 

is an element of fear because there is less production. For instance, 

I mean, we could argue about this a lot. But when a company like 

NBC decides to put Mr. Leno on for 5 nights a week at 10:00, you 

know, that might be a good business decision on one level. But it 

puts literally tens of thousands of people out of work, not just the 

creative people. But that is, you know, 5 hours of television every 

week where the technicians, the carpenters, the painters, the designers, the actors, the drivers are not hired. So, you know, it is 

tough. And I don’t want to imply—I mean, there are parts of the 

entertainment industry that are very healthy. You know, people 

still do very well. But the little guy is getting squeezed very hard 

and is very fearful. 

Mr. HARE. Thank you, Mr. Chairman. 

Chairman MILLER. Congresswoman Clarke. 

Ms. CLARKE. Thank you, Mr. Chairman, and thank you for your 

vision. 

Like Mr. Daly, I was a bit appalled when we went through the 

American Recovery and Reinvestment Act and the whole issue of 

funding for the NEA came up, and it was kind of held with contempt by many in the political circles and spheres and oneupmanship. But I clearly recognize how vital a part of our economy 

the work of the community of arts and culture has been. 

I am from Brooklyn, New York, where it is a major source, not 

necessarily the high publicity end of things but certainly a major 

part of the growth and development, the stimulation of the communities that I serve. And so today’s hearing is very vital, I think, to 

bringing to the forefront for people how critical a component of our 

lives and our culture, our arts actually are. 

I would like to raise the question with both Mr. Lynch, Mr. Daly, 

and any others who can respond in a quick manner, what do you 

think that the diminishing of our arts and support for it means for 

us on a global scale? As oftentimes, people forget that there is 

something called global competition. And for so long, the United 

States had been seen almost in a preeminent position, even though 

we interact across cultural and global lines, we have been very 

much a part of a movement that the rest of the world had em-
52 

braced and then had come around with. So I would like to hear 

some feedback with regard to that. 

Chairman MILLER. One of you is going to get 30 seconds to answer the question. 

Mr. LYNCH. Mayors are critically interested in the arts because 

they stimulate competition, their city attracting people from other 

parts of the world. That is why. And international cultural diplomacy, visa laws, money at the State Department all mitigate 

against that because there is not enough of those things. 

Chairman MILLER. Thank you. 

Mr. Tonko. 

Mr. TONKO. Thank you, Mr. Chair. 

The arts build the crescendos in life. Without that, life is flat. 

That being said, in our earliest settings in schools, while in the 

New York State legislature, I promoted certification only for those 

teachers who can exchange the message of the arts with students. 

What can we do to inspire greater participation in our schools, to 

grow that group of artists out there, because we are such a—I 

think we are devoid at times of cultivating the arts in our students? 

Mr. BAHR. That is a huge, huge, and I love—very passionate 

about that. Every kid has to perform, so it is about encouraging 

performance and creation of art at a young, young level. And I 

think you see that—there are some great programs that are out 

there right now that I am sure they can talk about, and also the 

NEA sponsors a number of programs that way, too. But just celebrating the programs that are presently existing out there in the 

schools, I am sure you can all think of a great teacher that you 

have had in the past who taught your students or taught you because of those performances. 

Now with regards to a Federal answer, I know statewide, we actually have, in the State of Utah, the arts are huge, and it is actually part of the Utah State Office of Education to train every teacher on how to use art in the classroom. It is part of our core. And 

it is required as part of the core. It is as necessary as math and 

science. And that needs to be done nationally. But the State of 

Utah, I think, is leading the charge that way and see that as a necessary vitamin, as necessary as the spinach that Mr. Daly shared. 

Mr. DALY. I also think that it is important for all of us on this 

panel, for politicians and for people in the business community, to 

start acknowledging the arts in our daily lives. I mean, I defy anyone in this room to look around them and not see something, a tie, 

these paintings, you know, the curtains behind the chairman, every 

one of these things, designed by an artist. And the chairman himself, a work of art. 

These things are tied in with technology and design and innovation and manufacturing. It is not something else. It is everywhere 

we are. 

Chairman MILLER. Ms. Florino, you wanted to quickly say something. 

Ms. FLORINO. Yes, very quickly. I think one of the problems is 

we have kept the arts in a silo and we haven’t seen the impact on 

math education and English education. And we know that there 
53 

are plenty of studies that prove that, in fact, musical skills and 

math skills are very connected. 

And I just want to say that I think we as a foundation, along 

with many individual donors, have been looking to out-of-school experiences to make that integration. One example I want to give you 

is a family reading partnership program in Ithaca, New York, 

which we have funded for a long time and which would be categorized in many places as a literacy program. But the director of 

that program has been insistent that children not only be given 

books at birth and given books in early years but that they be 

given beautiful books. So the art of those children’s books has been 

as important in generating their interest in reading as the words 

on the page. I think the more of that we can do, the better we will 

be in the future. 

Chairman MILLER. Ms. Woolsey. 

Ms. WOOLSEY. Thank you. 

You are a perfect straight woman for me, Ms. Florino. One of our 

other efforts here on this committee is elementary, secondary education and which we will be reauthorizing. Secretary Dick Riley 

under Bill Clinton has been very—and many others—instrumental 

in our writing art and music back into the curriculum. And so 

knowing that, I am going to ask, Mr. Daly and any of you, when 

I go to the movies and I see the credits, because one of our responsibilities here is equality for girls and women, the ratio of man to 

woman is just not equal at all. I want to know why that is. Are 

we doing something in our education system? Is NEA doing something that is making it way more possible for men to survive? Or 

do you know anything about that? 

Mr. DALY. Well, that is a tough one. I do know that, since the 

dawn of drama, men have dominated, you know, theater and storytelling. And I don’t know why that is. Shakespearean plays are predominantly men. Greek plays are predominantly men. That is a 

good and, you know, really valid question. I am not sure what the 

answer is. 

Ms. WOOLSEY. Does anybody have—— 

Mr. BAHR. Refreshing, though, every one of our stage managers 

are females. And I think there is a reason for that. They know how 

to manage people. They know how to get stuff done. I don’t think 

it is an accident. Occasionally, you will have a male stage manager 

that will sneak in there. I do think that is something that needs 

to start down at that lower level, elementary to say, hey, women, 

this is something you can do. This is an industry that you can do, 

too. 

Ms. WOOLSEY. It isn’t because stage managers are underpaid? 

Mr. BAHR. Actually, all of our stage managers that work at that 

level are equity stage managers; they receive the same wage. 

Mr. DALY. I also should say that my show, ‘‘Private Practice,’’ is 

women-run. It is an estrogen heaven over there. 

Ms. WOOLSEY. I watch it. I love it. 

Mr. DALY. Women are running the whole show over there. 

Chairman MILLER. They often ask the Speaker of the House how 

she can run the Democratic Caucus in the House. She says, mother 

of five, grandmother of seven, now, I think, and I use my motherof-five voice every now and then. So it seems to work. 
54 

Mr. Platts, any final comment? 

Mr. PLATTS. Again, just my thanks for your hosting the hearing 

and all of the great testimony we have received. Hopefully 

partnering all together, we will do right by the arts. 

Chairman MILLER. Let me thank all of you for your testimony. 

We wanted to make and the President wanted to make and the 

Speaker wanted to make an important statement about the arts in 

the stimulus act, that this is an important part of our economy. 

This act was about going to those sectors of our economy where we 

could stimulate economic activity, where we could have a multiplier 

effect, whether it was construction jobs or in teaching jobs or in the 

arts. And that is what we wanted to be able to do. I think we did 

it right. Those who suggested that this was $50 million in pork, 

those are the same people that said it was pork to try and repair 

and keep from sinking into the Potomac River the Lincoln Memorial and the Jefferson Memorial, so their value systems kind of coincide and meet at that point. 

This has been a wonderful opening night, if you will. This is in 

a series of hearings. We are going to move on to education. We are 

going to move on to other aspects of the arts in our society and the 

importance of them. And thank you, all of you, for the work you 

do with education groups in your areas and in your cities and your 

industries. 

It is a remarkable thing to watch children be engaged with the 

arts. And it is not just studies. I spend a lot of time in classrooms 

around the country. I can take to you where the music and arts 

have changed the educational performance and the opportunities 

for those young children. They say the two best ways to engage 

children in fractions is with a ruler in wood shop and a baton in 

a music class. And then they will start to appreciate and understand fractions, which they always seem to stumble on, as I did. 

No wonder I was a bad French horn player. 

Geez, all these things that get revealed up here sitting as chairman. This is tough. 

But thank you so much for your time. It is valuable. It is important to us, and we are glad that you shared it with the committee. 

Before adjourning, I have got to make a unanimous consent request to open the record of last week’s hearing on the importance 

of early childhood development, later in the arts, through Tuesday, 

March 31, 2009, 14 days from the date of the hearing, during 

which members may submit extraneous material. 

So I don’t have to do that in the next hearing, I will request 

today, without objection, all members will have 14 days to submit 

extraneous material and questions for the hearing record. 

Members may want to submit questions to you. We hope that 

you would agree to respond to those questions. And again, thank 

you so much for what you do for the arts, for our communities, for 

our economy and for this committee with this morning’s hearing 

and your participation. 

With that, the committee will stand adjourned. Behind you, what 

is going on is it is a little bit like off-track betting here. I am trying 

to see if I can beat the other 208 people who haven’t voted yet. Although the clocks run out, the race is still on. And because I am 

old and fast, I think I can still do it. Thank you very much. 
55 

[The statement of Mr. McKeon follows:] 

Prepared Statement of Hon. Howard P. ‘‘Buck’’ McKeon, Senior Republican 

Member, Committee on Education and Labor 

Thank you, Chairman Miller and good morning. 

One of the benefits of living in a free society is that its citizens are free to create. 

This freedom has given birth to art forms that Americans—and people around the 

world—have enjoyed for decades. 

Take music: Blues. Country. Jazz. Rock ’n’ roll. All of them come from America. 

Then there’s Broadway and Hollywood. For more than a century, American films, 

plays, musicals and TV shows have been loved and respected the world over. 

Mr. Chairman, we should be proud of our artists, but not just for their creative 

achievements. After all, they are in show business. It’s a real industry that has ups 

and downs like any other. 

And what helps support this industry? 

In large measure, non-profit and charitable foundations. 

When you look beyond the superstars with their mansions and their millions, you 

find that many talented working artists across the country are supported this way. 

Experts say the $43 billion that foundations give out help generate more than a 

half trillion dollars in household income. It also contributed some $145 billion in tax 

revenues. 

That’s music to a lot of people’s ears—especially in these times. But it seems 

President Obama wants to stop the music and send the band home. 

The Obama Administration’s new budget would limit charitable deductions in the 

tax code. 

These tax deductions allow—even encourage—people to give to foundations and 

charities. Whether they contribute 25 dollars or 25 million, a deduction applies to 

them. 

And foundations need these donations. Usually, individual contributions are often 

their sole source of income. 

So, if you limit charitable deductions, you limit support of the arts—and other 

worthy causes. 

It’s that simple. But don’t take my word for it. 

Ask Martin Feldstein. He’s an economics professor from Harvard University. He 

wrote an op-ed piece in The Washington Post yesterday about this very subject. 

In his article, Feldstein says President Obama’s proposal would effectively transfer $7 billion a year from the nation’s charitable institutions to the federal government. 

This transfer, Feldstein says, would basically be a nationwide tax on charities. 

After speaking with Professor Feldstein, go talk to the Association of Performing 

Arts Presenters. 

In a report out this month, the association says that more than half of the performing groups with theaters and facilities have failed to meet their fundraising 

goals. 

As the Obama Administration tinkers with the tax code, it’s important that we, 

as members of Congress, understand how it affects non-profits and foundations. 

Whether it’s supporting a local theater group, homeless shelter or children’s hospital, non-profits and charities play a starring role in American life. 

We should create policies that best increase philanthropy and private resources 

available for charities, including support of the arts. 

Finally, we should highlight how private charities are independent, effective and 

innovative—just like American artists, including the ones with us today. 

Thank you, Chairman Miller. I yield back. 

[The statement of Mr. Hodes, submitted by Mr. Miller, follows:] 

Prepared Statement of Hon. Paul W. Hodes, a Representative in Congress 

From the State of New Hampshire 

I would like to thank Chairman Miller and Ranking Member McKeon for holding 

this hearing on the importance of arts and music in the economy. Investing in the 

artistic culture of our nation is critical to preserving the incredible diversity in 

America and bolstering our creative economy. The artistic community is an essential 

part of the American workforce that creates jobs, generates revenue, and brings 

communities together. 
56 

From classic poetry to modern opera to reggae, the arts create a unique space for 

expression, passion, and education. Artists express their ideas through new mediums and innovative ways to interact with the community. 

In previous difficult economic times in America, the Federal Government has recognized the importance of the creative economy, and supported artists and those 

who work in the arts. As a part of the New Deal, the Federal Art Project was established in 1935 and helped to create over 5,000 jobs for artists, including painters, 

sculptors, muralists and graphic artists. The project produced over 225,000 works 

of art for the American people across the country. The works can still be seen in 

the murals that adorn the walls of United States Post Offices all over the country. 

I strongly supported the $50 million for the National Endowment for the Arts that 

was included in the American Recovery and Reinvestment Act. This funding will 

help members of the artistic community keep their jobs and maintain the creative 

economy. According to the NEA, nonprofit arts organizations and their audiences 

generate $166.2 billion in economic activity every year, support 5.7 million jobs, and 

return nearly $30 billion in government revenue every year. The NEA additionally 

reported that for every $1 billion spent by nonprofit arts and culture organizations 

nearly 70,000 full-time-equivalent jobs are created. 

As we work together to help strengthen our economy, encouraging art and artists 

can help develop and allow for cultural centers to continue thriving. In New Hampshire, I worked hard with my community to rebuild the Capitol Center for the Arts 

and helped revitalize downtown Concord. The Capitol Center for the Arts is a performing arts center and has consistently brought jobs, created an artistic outlet, and 

has been a central location for events and programming for the community, bolstering the Concord economy. 

The Capitol Center for the Arts has also faced challenges in this difficult economy. 

In addition to cutting their workforce by 10 percent, the Capitol Center has also had 

a 20 percent drop in ticket sales this year. As a result, the artists, backstage crews, 

restaurants, hotels, and local businesses are also being negatively affected and losing revenue. 

This example is one of many artistic communities around the country which is 

feeling the pinch of our economic downturn and only demonstrates further why it 

is crucial that we continue to support and fund the arts. Arts funding encourages 

local economic growth and infuses money directly into our communities. As Congress continues to increase job opportunities in our cities and towns across the country, it is essential that artists and the creative economy not be overlooked. Artists 

not only enrich the cultural heritage of our country, but also bring Americans together to a shared community and experience. 

I appreciate the attention the Education and Labor Committee has brought to the 

important topic of arts and music in our economy. With the right support, artists 

can continue to bring jobs and revenue to our country during these tough economic 

times. 

[Additional submissions of Mr. Platts follow:] 
57 
58 
59 
60 
61 
62 

*AMS Planning and Research (Fairfield, CT) conducted this survey 

[Press release of the Association of Performing Arts Presenters] 

Field at a Glance: Economic Impact on Arts Presenting Activity and 

Attendance Stabilize While Fundraising Is a Concern 

Arts Presenters’ latest tracking survey* of presenting organizations and performing arts facilities examined the continuing impact of the economic downturn on 

the field of arts presenting during the month of February 2009. The scope, focus and 

breadth of this survey explored the economic impact on activity, ticket sales and 

fundraising among ‘presenter’ members of the Association of Performing Arts Presenters. The response pool for the recent survey includes 173 member organizations, 

of which 141 member organizations are presenters with their own facilities. Our 

members and the wider field are concerned with the overall impact the current economic shift has on the performing arts field’s operating environment and the increase in the difficulty of resolving many of the challenges presenting organizations 

had already been facing on the whole. These challenges include audience erosion, 

organizational sustainability and capacity building, adaption of multi-media and 

new technologies and leadership development. 

Managing Change: During the month of February, approximately 30% of presenters with facilities made some change to their production calendars. Over 30% 

either reduced or eliminated planned productions and a majority (57%) has reforecasted revenue, while 58% have reduced some planned expenditures. Nearly 40% of 

respondents instituted a hiring freeze; 11% have reduced fulltime headcount; and 

14% reduced part-time headcount. 

Fundraising: Among presenters with facilities, over 50% reported that fundraising 

efforts have failed to meet budgeted goals in one or more categories. Corporate philanthropy decline has affected 54% of this sample population, while 44% indicated 

they have not been able to meet individual fundraising goals. Similarly, 40% of 

those surveyed were unable to meet financial goals through foundation giving, government support and/or sponsorship contributions. 

Resident Company Programming: In all cases except theater, the majority of resident organizations in performing arts centers are reportedly behind their budget 

forecasts. 

Arts Presenters’ Member Information: 

• Representing an industry of more than 7,000 nonprofit and for-profit organizations, Arts Presenters members hail from all 50 states and 28 countries on six continents across the globe; 

• Member organizations range from large performing arts centers in major urban 

cities, outdoor festivals and rural community-focused organizations to academic institutions, artists, artist managers, agents, as well as independent producers, producing and touring companies; 

• Our membership includes a range of organizations with multi-million dollar 

budgets to individuals who are artists or performing arts professionals; two-thirds 

of the membership and wider presenting field are organizations with small budgets 

under $1.5 million (the largest segment of which is under $500,000) 

• Arts Presenters members bring performances to more than 2 million audiencegoers each week and spend in excess of $2.5 billion dollars annually; 

• Arts Presenters represents a diversity of fields including: all forms of dance, 

music, theater, family programming, puppetry, circus, magic, attractions and performance art. 

[Additional submissions of Mr. Lynch follow:] 

Folk & Traditional Arts Summary 

The health of the nation’s living cultural heritage is at risk. 

This is the message of a February 2009 national survey of the field of folk arts 

conducted by the Alliance for California Traditional Arts and the Fund for Folk Culture. 487 respondents (294 non-profit organizations and government agencies, 158 

individual artists, and 35 independent folk arts specialists) from 44 states provided 

data leading to these preliminary conclusions: 

1. Overall income is declining and job losses are increasing among artists, practitioners, cultural organizations, and funders. 74% of all respondents reported a decrease in overall income for 2008. 86% expect overall income to decrease in 2009. 

Organizations reported 7% loss of full-time jobs in 2008 and expect a 9% loss in 

2009 from layoffs and attrition. Nonprofit organizations with budgets under 
63 

$100,000 are experiencing the earliest and greatest losses, and have the least capacity to respond. 

2. A field already stretched thin is becoming increasingly fragile. 50% of the organizations responding have budgets under $100,000; 80% under $500,000. 38% have 

no cash reserves, and only 11% report cash reserves for more than 6 months. 11% 

have suspended operations, or are considering suspending operations or merging 

with another organization. 91% of folk arts programs at government agencies are 

experiencing budget cuts or expect cuts, while the demand for their support from 

artists and nonprofits has increased sharply. 

3. Traditional artists, cultural practitioners, and contractors are losing income and 

turning to other income-generating activities. 82% of artists report a decrease in 

overall income. 65% report a decreasing demand for services, the single most important source of income for artists. 37% are seeking work outside the arts. 

4. Revenue and job losses are causing sharp reductions in services and programs. 

Job losses in small-budget organizations have been the most severe, with an estimated loss of over 43% of the work force between 2008 and 2009. Organizations 

with budgets over $1 million are also struggling: 80% report decreases in income 

in 2008, rising to 90% in 2009. The top two sources of income for nonprofits are government and foundation grants. 68% of nonprofits report decreases in 2008 grant 

funding; thus far in 2009, 83% report declines. Cost—cutting by nonprofits is weakening the capacity of organizations: 25% report reductions in force and 33% reductions in programming. 

5. The support network of funding agencies and intermediary organizations is diminishing. State arts agencies, the primary funding and support resources for nonprofits involved in the folk arts, are facing drastic reductions in funding, staff positions and services. 50% of government and nonprofit funders report an average of 

18-20% declines in their funding from 2008 to 2009; most are expecting additional 

cuts in 2010. 4 cite 90-100% cuts. The Fund for Folk Culture, the only national nonprofit providing dedicated grant support to the folk and traditional arts (including 

the Artists Support Program), is closing its doors after 17 years. Four other private 

foundations providing dedicated regional support for individual folk artists report 

declines in their support. One of the four is putting its program on hiatus, pending 

further review. 

Unique Challenges for the Folk Arts 

The entire nonprofit arts sector is facing drastic declines, but in the folk arts, 

funding and services are often administered by a single position housed in a state 

arts agency or nonprofit organization. Therefore, when that single position is lost— 

and this is happening more and more often—an entire state’s delivery system of 

grants and services is gone. The majority of artists and professionals in folk arts 

work in grassroots organizations with budgets under $100,000, and these smaller 

organizations have been experiencing the earliest and greatest negative economic 

impacts. While many continue to survive, as they have in the past, with high rates 

of volunteer support, the survey indicates that volunteerism rates are down as people increasingly need to take on extra paid work. Without budget cushions or cash 

reserves, these diverse dance and music ensembles, crafts collectives, and community-based presenters are in the greatest danger of disappearing unless effective 

funding interventions are enacted quickly. Local arts councils and other mainstream 

arts agencies often do not adequately serve these grassroots groups, so special strategies will be necessary to address their needs via the network of public folk arts 

programs serving at local, state and national levels. 

Submitted by Julia Olin, National Council for the Traditional Arts (NCTA), on behalf of Preserve America’s Cultural Traditions (PACT), a consortium of major folk arts organizations. To 

obtain a copy of the full survey report, contact Amy Kitchener of the Alliance for California Traditional Arts at 559/237-9813 or akitch@actaonline.org. 

Impact of the Economic Downturn on the Music Education Workforce and 

Concepts for a Positive Response 

Observations 

1. The workforce of professional music educators in the schools is subject to the 

same contracts, and hence the same economic issues, that face educators in other 

subjects. This means that shortfalls in local property taxes (still the primary source 

of school funding across the United States) can have a devastating effect on local 

schools, and hence the music education workforce. The American Recovery and Reinvestment Act (ARRA) has devoted significant Federal funds to ameliorate this 

problem, but the strength of public schools is still dependent largely on the strength 
64 

of local economies in general. The number of layoffs that have been experienced in 

the current downturn is unknown; according to a survey of music supervisors in 

local districts conducted by MENC in November/December 2008, the majority of 

schools are planning cuts in support and organizational staff for the coming year. 

Note that this was an informal web survey, so should not be understood as limited 

in accuracy. 

2. The workforce of professional music educators in the schools may be, in some 

cases, subject to cuts that go beyond those for the education workforce in general. 

According to the survey noted above, 60 percent of respondents expect cuts to effect 

music programs specifically—and 15 percent expected those cuts to disproportionately target music programs. 

3. Anecdotally, reports from music teachers in the field lead us to believe that the 

current environment, while not leading necessarily to wholesale cuts of entire programs, is leading to cutbacks in services to children. For example, instructors who 

were on 11-month contracts, allowing them to provide summer music experiences 

to students, are being told in some cases that they are now limited to 9-month contracts. This means less income for them and less education for the students. 

4. Some principals are resorting to offering commercially-provided afterschool experiences in lieu of education during the day. (See the February 2009 GAO study, 

‘‘Access to Arts Education,’’ which was based on an elementary-school sample.) It 

is unclear whether this method will allow a significant number of students to gain 

the benefits of music education in light of other commitments on their afterschool 

time; also unclear is the extent to which this will impact the employment of music 

educators. 

Concepts for Positive Response 

1. Make certain that all local decision-makers understand that ARRA education 

monies are applicable to education in music as well as to other core academic subjects. Strong music programs help schools attain well-accepted stimulative goals, 

such as high graduation rates, high attendance rates, and high levels of educational 

attainment. This message needs to be sent as strongly as possible to local decisionmakers, who are faced with difficult fiscal decisions. 

2. Require that the status of arts education programs be reported to parents, so 

that local communities can make informed decisions about the provision of arts education to their children. 

3. Ensure that all after-school programs (at least those funded by the Endowment) 

supplement, but do not supplant, in-school offerings. This is essential because afterschool programs are not always available to all students and undermine the statutory ‘‘core academic subject’’ status of the arts. 

4. Refine, as indicated by data from the Endowment survey currently in the field, 

the process for selecting and reporting grants in education. Expand the research 

process by looking at best practices in professional development of arts educators 

in general. 

Impact of the Economic Downturn on Museums 

Why Museums Are Vital to Communities, Local Economies and Education 

• Museums employ more than a half million Americans. 

• U.S. museums spend more than $14.5 billion a year, spurring local economic 

growth. 

• There are 850 million visits per year to American museums, more than the attendance for all professional sporting events and theme parks combined (478 million 

in 2006). 

• More than one-third (35%) of U.S. museums are always free to the public, and 

more than 97% of the rest offer discounts, special fee schedules, or free admission 

days. 

• Museums spend more than $1 billion annually on K-12 educational programming, and receive more than 90 million visits each year from students in school 

groups. 

• Museums tailor educational programs in coordination with state and local curriculum standards. 

Examples of How the Economic Downturn is Affecting Museums 

• The Pacific Asia Museum in Pasadena will cut its budget by 20% this year— 

and will have to raise its $7 admission fee and begin charging for community education programs. 

• The Bowers Museum in Santa Ana will cut its budget by 10% by laying off employees and canceling or delaying exhibitions. 
65 

• To close a $2 million budget gap, the Mystic Seaport is laying off at least a 

dozen employees. Nearby Mystic Aquarium is also laying off 12 people. 

• The Museum of Florida History has suffered a cut back in staff and have had 

to pull back on ‘‘outreach’’ programs, some that previously reached senior centers 

and retirement homes. 

• The New York Coalition of Living Museums (CLM), which provides support to 

112 state organizations is facing a potential 55 percent cut in its budget. Living collections are at great risk with budget cuts, because a living museum cannot simply 

close a wing. 

• At the New York Botanical Garden, earned income is down a whopping 20%. 

The garden is planning to reduce its full-time workforce of 480 by 10% and has already eliminated about 30 jobs. The rest will be achieved through attrition and layoffs, canceled exhibitions and reduced hours. 

• 29 historic sites in Ohio have had to reduce access by two days a week. 

• The Virginia Air & Space Center is seeing record attendance, but corporate giving and school trips—which were hard hit by high gas prices earlier this year—have 

faltered. They will now be closed on Mondays, restricting public access. 

How Museums Are Part of the Solution 

• The Miami Art Museum is collaborating with Miami-Dade County schools to 

offer free school programs and teacher workshops to meet curricular guidelines. 

They’re also looking for other ways to help the students get there, as well as ways 

of getting art to students in the schools. 

• The Children’s Museum of Indianapolis is expanding its offerings for underserved (ACCESS pass providing $1 admission for those on statewide assistance, food 

stamps, etc.,) in partnership with city/county and state. 

• The Detroit Historical Society raised $190,000 at their annual gala to provide 

admission, tours and transportation to schools in the Detroit area that cannot afford 

school trips. 

• The Minnesota Children’s Museum is working to maintain its access program 

which includes admitting 1⁄3 of its visitors at free or reduced admission and 

partnering with over 50 community groups and schools. 

• The Schenectady Museum & Suits-Bueche Planetarium is offering free memberships to low-income families for each new paid membership they receive. 

• The Stuhr Museum and the Hastings Museum competed during the holidays to 

collect the most nonperishable food for local pantries in a food drive called ‘‘Sharing 

Through the Season.’’ 

• The Idaho Museum of Natural History offered free admission to anyone who 

brought in a new unwrapped gift for the Toys for Tots program this past holiday 

season. 

• The Please Touch Museum in Philadelphia, PA increased outreach efforts and 

focused on helping other organizations whose funding has been substantially cut. 

The museum—which has long worked to serve low-income and minority communities—created new programs and revamped existing ones to reach even broader 

portions of those communities more effectively. Additionally, the museum is working 

with both the City of Philadelphia and Free Library of Philadelphia to use museum 

programs to meet community needs that will result from the announced closures of 

11 branch libraries in 2009. 

[Questions for the record and their responses follow:] 

U.S. CONGRESS, 

2181 RAYBURN HOUSE OFFICE BUILDING, 

Washington, DC, April 1, 2009. 

Mr. TIM DALY, Co-President, 

The Creative Coalition, New York, NY. 

DEAR MR. DALY: Thank you for testifying at the March 26, 2009 hearing of the 

Committee on Education and Labor on ‘‘The Economic and Employment Impact of 

the Arts and Music Industry.’’ 

Representative Jared Polis (D-CO), member of the Early Childhood, Elementary 

and Secondary Education Subcommittee, member of the Healthy Families and Communities Subcommittee and member of the Health, Employment, Labor and Pensions Subcommittee has asked that you respond in writing to the following question: 

As a result of my life experiences and background, I am a strong supporter of the 

arts and have been a longtime advocate of arts education. My father is an artist 

and my mother is a poet. In addition to their inherent intellectual, spiritual and creative contributions and effects, the arts are clearly an economic engine that 
66 

strengthens and revitalizes our communities. The multiplier effect of arts spending 

is impressive: every dollar in cultural spending returns nine in federal income taxes. 

And every National Endowment for the Arts (NEA) dollar leverages seven dollars 

from other sources. In my district, we have 2,670 arts-related businesses that employ 8,292 people. These businesses stimulate innovation and play a critical role in 

building and sustaining our economy: they employ a creative workforce, spend 

money locally, generate revenue for government, attract tourists and enrich our 

local culture. 

1. What can we do to support artists and workers employed in the creative industries during these difficult economic times in addition to increasing funding for 

NEA? I am particularly interested in job training initiatives and professional development opportunities that our committee should consider during the reauthorization 

of the Workforce Investment Act. 

Please send an electronic version of your written response to the questions to the 

Committee staff by close of business on Wednesday, April 8, 2009—the date on 

which the hearing record will close. If you have any questions, please do not hesitate to contact the Committee. 

Sincerely, 

GEORGE MILLER, Chairman. 

Mr. Daly’s Responses to Questions for the Record 

As a result of my life experiences and background, I am a strong supporter of the 

arts and have been a longtime advocate of arts education. My father is an artist 

and my mother is a poet. In addition to their inherent intellectual, spiritual and creative contributions and effects, the arts are clearly an economic engine that 

strengthens and revitalizes our communities. The multiplier effect of arts spending 

is impressive: every dollar in cultural spending returns nine in federal income taxes. 

And every National Endowment for the Arts (NEA) dollar leverages seven dollars 

from other sources. In my district, we have 2,670 arts-related businesses that employ 8,292 people. These businesses stimulate innovation and play a critical role in 

building and sustaining our economy: they employ a creative workforce, spend 

money locally, generate revenue for government, attract tourists and enrich our 

local culture. 

1. What can we do to support artists and workers employed in the creative industries during these difficult economic times in addition to increasing funding for 

NEA? I am particularly interested in job training initiatives and professional development opportunities that our committee should consider during the reauthorization 

of the Workforce Investment Act. 

Response: As I emphasized in my testimony before the Committee, the arts is an 

enormous creator of jobs for American citizens. From what I know of the Workforce 

Investment Act, the statute does recognize arts training as qualified job training. 

Given that, it seems to me that there are two distinct areas to consider as the Committee reauthorizes the Act. 

First, with respect to those already working in the arts who may lose their jobs 

in this economic downturn, I think it is essential that federal aid be available to 

those individuals. In some instances, those individuals may benefit from further arts 

training. In other instances, it may be necessary for those individuals to learn skills 

outside the arts to provide for themselves and their families. The Act should provide 

both options. 

Second, with regard to disadvantaged youth who receive training under the Act, 

I believe Congress should encourage training in the arts. Arts training for younger 

people can lead to good jobs, and America will continue to need those with creative 

talents as well as those who can work behind the scenes in our arts and entertainment industries. Many of these jobs require very specialized skills, and it is essential that we train the next generation if we are to maintain our preeminent position 

as a creator of arts and entertainment for the rest of the world. 

U.S. CONGRESS, 

2181 RAYBURN HOUSE OFFICE BUILDING, 

Washington, DC, April 1, 2009. 

Mr. ROBERT L. LYNCH, President and CEO, 

Americans for the Arts, Washington, DC. 

DEAR MR. LYNCH: Thank you for testifying at the March 26, 2009 hearing of the 

Committee on Education and Labor on ‘‘The Economic and Employment Impact of 

the Arts and Music Industry.’’ 
67 

Representative Jared Polis (D-CO), member of the Early Childhood, Elementary 

and Secondary Education Subcommittee, member of the Healthy Families and Communities Subcommittee and member of the Health, Employment, Labor and Pensions Subcommittee has asked that you respond in writing to the following question: 

As a result of my life experiences and background, I am a strong supporter of the 

arts and have been a longtime advocate of arts education. My father is an artist 

and my mother is a poet. In addition to their inherent intellectual, spiritual and creative contributions and effects, the arts are clearly an economic engine that 

strengthens and revitalizes our communities. The multiplier effect of arts spending 

is impressive: every dollar in cultural spending returns nine in federal income taxes. 

And every National Endowment for the Arts (NEA) dollar leverages seven dollars 

from other sources. In my district, we have 2,670 arts-related businesses that employ 8,292 people. These businesses stimulate innovation and play a critical role in 

building and sustaining our economy: they employ a creative workforce, spend 

money locally, generate revenue for government, attract tourists and enrich our 

local culture. 

1. What can we do to support artists and workers employed in the creative industries during these difficult economic times in addition to increasing funding for 

NEA? I am particularly interested in job training initiatives and professional development opportunities that our committee should consider during the reauthorization 

of the Workforce Investment Act. 

Please send an electronic version of your written response to the questions to the 

Committee staff by close of business on Wednesday, April 8, 2009—the date on 

which the hearing record will close. If you have any questions, please do not hesitate to contact the Committee. 

Sincerely, 

GEORGE MILLER, Chairman. 

Mr. Lynch’s Responses to Questions for the Record 

It was an honor to appear before you and your committee as a witness on March 

26, 2009. As a representative of the non-profit arts community, I greatly appreciated 

the opportunity to share with you our perspective on the status of the arts workforce. I am very pleased that you have such a significant connection to the arts and 

appreciate your follow-up inquiry. 

Your question as to how the Congress can support artists and workers employed 

in the creative industries beyond the National Endowment for the Arts (NEA) is a 

key one to this growing workforce. As you know, the NEA provides grants to nonprofit arts organizations to produce and support artistic programs. However, the 

needs of the creative workforce, and of the small businesses that provide these jobs, 

extend beyond the support that the NEA can give. 

During the consideration of the economic recovery package, Americans for the 

Arts developed a number of policy recommendations for Congress (attached) that 

would provide assistance to the creative workforce. I’d like to highlight the following 

one in response to your question: 

Make Human Capital Investments in Arts Job Training The U.S. Department of 

Labor’s Adult, Dislocated Worker and Youth Program is currently administered by 

the states to ‘‘help up-skill workers and provide employment services and support 

that will increase worker employability and earning power.’’ We support that effort 

with an interest in expanding the services available to workers in the creative sector 

and through arts institutions that can provide professional development training. 

Programs such as Gallery 37, managed by the Chicago Mayor’s office but funded 

through the Workforce Investment Act, utilize the arts as an arena in which future 

workplace skills are taught by professional artists and acquired by the program recipients. Gallery 37 is an award-winning public works program that has been replicated around the country. It is an example of a progressive way to utilize workforce funds for training new skills and providing immediate benefits to localities and 

downtowns as well. 

As the national workforce becomes more focused on innovation, employees with 

skills in creativity will become more in need. Federal labor programs that can adapt 

to this change in workforce skills will better assist the communities they serve. Future consideration of the Workforce Investment Act should direct state and local 

workforce investment boards to pursue guidance that results in creative workforce 

training programs like Gallery 37. 

I hope you will keep Americans for the Arts in mind as you gather information 

and consider policy solutions towards the creative industries. We are more than 

willing to help work on this. Thank you for your leadership on this issue. 
68 

Folk and Traditional Arts Summary 

The arts mean jobs and tremendous economic activity in America and must be 

part of our country’s economic recovery. Nationally, 100,000 nonprofit arts organizations are members of the business community—employing people locally, purchasing 

goods and services within the community, and involved in the marketing and promotion of their cities and communities. Nonprofit arts organizations and their audiences generate $166.2 billion in economic activity every year, support 5.7 million 

jobs, and return nearly $30 billion in government revenue every year—proving that 

the arts are an economic driver in their communities that support jobs and generate 

government revenue. Every $1 billion in spending by nonprofit arts and culture organizations—and their audiences—results in almost 70,000 fulltimeequivalent jobs. 

By investing in the arts, we’re supporting an industry that is built on innovation 

and creativity, economic development, and the revitalization of America’s communities and downtowns. When we increase investment in the arts, we are generating 

tax revenues, jobs, and a creativitybased 21st century competitive economy. 

With these facts in hand, Americans for the Arts calls on Presidentelect Obama 

and Congress to support the following nine federal programs and proposals in their 

consideration of an economic recovery package. 

(1) Include Artists in Proposal for Unemployment & Healthcare Benefits for 

PartTime Employees 

The creative economy relies heavily on professionals that make a living from nontraditional employment structures. Artists are disproportionately selfemployed, and 

many work multiple jobs in volatile, episodic patterns; the ability to have access to 

unemployment insurance and healthcare benefits would offer critical assistance to 

this population. 

(2) Boost Arts Projects in Community Development Block Grants (CDBG) 

Provided by the U.S. Department of Housing & Urban Development (HUD) to 

mayors’ community development offices, the CDBG program provides ‘‘bricks & mortar’’ funding for a variety of state and municipal projects and is a primary government source for local arts institutions of all disciplines. Further streamlining of the 

application process would allow grant applicants to work more effectively with their 

mayor’s community development office to better prioritize cultural projects. We join 

with the U.S. Conference of Mayors in their call for $20 billion in CDBG funding 

and seek at least $2 billion in artsspecific projects to modernize, rehabilitate, and 

construct our nation’s cultural facilities. 

(3) Provide Economic Recovery Support to Federal Cultural Agencies 

Americans for the Arts calls for increasing FY 2010 annual support to the National Endowment for the Arts (NEA) to $200 million, a similar amount for the National Endowment for the Humanities, and IMLS to $269 million. All three agencies 

should receive economic recovery emergency funding to increase current grantee 

projects. 

In terms of the economic recovery proposal, the NEA should be allocated at least 

$1 billion for formula grants, based on population, to be administered through its 

current Local Arts Agency program to designated local arts agencies. LAAs are a 

unit of city or county government or designated to operate on behalf of its local government as defined in federal statute. Grants of this kind would be for the purposes 

of producing cultural and artistic programming and public art initiatives in 2009. 

These grants awarded to LAAs would a) speedily disburse local funding to all the 

arts disciplines; b) employ artists and the cultural workforce and c) serve to increase 

access to the arts in order to leverage spending by audiences. 

(4) Include Cultural Planning Through Economic Development Administration 

(EDA) 

Through the U.S. Department of Commerce, the Economic Development Administration’s Research, National, and Local Technical Assistance grant programs are essential to a community’s thoughtful planning and economic development investment 

process. These programs should meet the increasing need for local cultural district 

planning and assisting municipalities with developing the creative economy in their 

communities. 

(5) Increase Cultural Facilities Support in Rural Development Program (USDA) 

Through the U.S. Department of Agriculture, the Housing and Community Facilities program funds the construction, rehabilitation, or acquisition of ‘‘essential facilities’’ which includes cultural facilities. Since its inception, about nine percent of the 

Community Facilities funding has been directed to education and cultural facili-
69 

ties—an amount that should be increased to address the infrastructure needs of 

these rural cultural communities. 

(6) Link Transportation Enhancements (TE Program) With State Arts Agencies 

The U.S. Department of Transportation’s Transportation Enhancement program 

funds 12 general transportation enhancement activities including pedestrian and bicycle facilities, historic preservation, and public art projects. This program, administered by state transportation departments, should receive an increase in funding 

and all projects should be developed and implemented in coordination with the state 

arts agency. 

(7) Create the Artist Corps 

PresidentElect Obama’s proposal of an ‘‘Artists Corps of young artists trained to 

work in lowincome schools and their communities’’ is a proven strategy to provide 

jobs to artists seeking to share their skills, provide mentoring, and professional development to students and individuals seeking work in the creative economy. This 

proposal should be acted upon quickly to establish the Artists Corps as a national 

training initiative. 

(8) Make Human Capital Investments in Arts Job Training 

The National Governor’s Association (NGA) has proposed a $1.5 billion increase 

to the U.S. Department of Labor’s Adult, Dislocated Worker and Youth Programs 

and WagnerPeyser Act administered by the states to ‘‘help upskill workers and provide employment services and supports that will increase worker employability and 

earning power.’’ We support that effort with an interest in expanding the services 

available to workers in the creative sector and through arts institutions that can 

provide professional development training. 

(9) Appoint a SeniorLevel Administration Official with Arts Portfolio 

The president should name a seniorlevel administration official in the Executive 

Office of the President to coordinate arts and cultural policy, guiding initiatives 

from federal agencies responsible for tourism, education, economic development, cultural exchange, intellectual property policy, broadband access, and other artsrelated 

areas. The U.S. Conference of Mayors and others have made similar proposals. 

U.S. CONGRESS, 

2181 RAYBURN HOUSE OFFICE BUILDING, 

Washington, DC, April 1, 2009. 

Mr. MICHAEL BAHR, Education Director, 

Utah Shakespearean Festival, Cedar City, UT. 

DEAR MR. BAHR: Thank you for testifying at the March 26, 2009 hearing of the 

Committee on Education and Labor on ‘‘The Economic and Employment Impact of 

the Arts and Music Industry.’’ 

Representative Jared Polis (D-CO), member of the Early Childhood, Elementary 

and Secondary Education Subcommittee, member of the Healthy Families and Communities Subcommittee and member of the Health, Employment, Labor and Pensions Subcommittee has asked that you respond in writing to the following question: 

As a result of my life experiences and background, I am a strong supporter of the 

arts and have been a longtime advocate of arts education. My father is an artist 

and my mother is a poet. In addition to their inherent intellectual, spiritual and creative contributions and effects, the arts are clearly an economic engine that 

strengthens and revitalizes our communities. The multiplier effect of arts spending 

is impressive: every dollar in cultural spending returns nine in federal income taxes. 

And every National Endowment for the Arts (NEA) dollar leverages seven dollars 

from other sources. In my district, we have 2,670 arts-related businesses that employ 8,292 people. These businesses stimulate innovation and play a critical role in 

building and sustaining our economy: they employ a creative workforce, spend 

money locally, generate revenue for government, attract tourists and enrich our 

local culture. 

1. What can we do to support artists and workers employed in the creative industries during these difficult economic times in addition to increasing funding for 

NEA? I am particularly interested in job training initiatives and professional development opportunities that our committee should consider during the reauthorization 

of the Workforce Investment Act. 

Please send an electronic version of your written response to the questions to the 

Committee staff by close of business on Wednesday, April 8, 2009—the date on 
70 

which the hearing record will close. If you have any questions, please do not hesitate to contact the Committee. 

Sincerely, 

GEORGE MILLER, Chairman. 

[Whereupon, at 11:40 a.m., the committee was adjourned.] 

Æ