|eport #15 

National Endowment 

tor the Arts ~nomic Impact of Arts
 

Cultural Institutions
 Research Division 

January 1981 

;ase Studies in 

~,olumbus 

inneapolisiSt. Paul 

.Louis 

;alt LakeCity
 

;anAntonio
 

;pringfield
 
Economic Impact of Arts and Cultural Institutions 

Case Studies in 

Columbus 

Minneapolis/St. Paul 

St. Louis 

Salt Lake City 

San Antonio 

Springfield 

National Endowment for the Arts, Washington, D.C. 
 

This report is published by the Publishing
 

Center for Cultura! Resources as part of a
 

pilot project supported by the National Endowment for the Arts demonstrating economy
 

and efficiency in nonprofit publishing.
 

The Publishing Center’s planning, production,
 

and distribution services are available to
 

all cultural and educational groups and organizations. For further information, write
 

Publishing Center for Cultural Resources,
 

625 Broadway, New York City 10012 or telephone 212/260-2010.
 

L.ibrary of (’on~ress CataloRin~ in Publication Data 

Main entry under title:
 

Economic impact of arts and cultural
 

institutions.
 

(National Endowment for the Arts Research
 

D~vision report ; #15)
 

Bibliography: P3. Arts--Economic aspects--Middle West-­

Case studies. 2. Arts--Economic aspects-­

Utah--Salt Lake City--Case studies. 3. Arts-­

Economic aspects--Texas--San Antonio--Case
 

studies, i. Series: National Endowment for
 

the Arts. Research Divlsion. Research Division
 

report ; #15.
 S0-2899~
 [~XS07.E26 338.4’77’00973
 

ISBN 0-89062-106-3
 

Manufactured in the United States of Amer~-ca
 
 

 

 

 

 

 

 

CONTENTS
 

PREFACE 5
 

LIST OF TABLES 7
 

INTRODUCTION 9
 

Report organization 9
 

Reasons for participation i0
 

Study management i0
 

Project uses i0
 

The Baltimore pilot project 9
 

Role of additional case studies 9
 

Study sponsors and participating institutions 9
 

Data collection II
 

Weighting and estimation issues 12
 

I. AN OVERVIEW OF THE SIX-CITY STUDY 15
 

Community economic impact analysis 15
 

The arts as export earners 17
 

Direct economic effects 21
 

Influences on direct economic effects 21
 

Secondary economic effects 23
 

Influences on secondary economic effects 24
 

Government revenues and costs 24
 

Effects not examined 26
 

Policy observations 26
 

II. THE COLUMBUS ECONOMY AND
 

ARTS AND CULTURAL INSTITUTIONS 29
 

iII. THE MINNEAPOLIS/ST. PAUL ECONOMY AND
 

ARTS.AND CULTURAL INSTITUTIONS
 41
 

IV. THE ST. LOUIS ECONOMY AND
 

ARTS AND CULTURAL INSTITUT_IONS 53
 

V. THE SALT LAKE CITY ECONOMY AND
 

ARTS AND CULTURAL INSTITUTIONS 65
 

VI. THE SAN ANTONIO ECONOMY AND
 

ARTS AND CULTURAL INSTITUTIONS 77
 

VII. THE SPRINGFIELD ECONOMY AND
 

ARTS A~D CULTURAL INSTITUTIONS
 89
 

ACKNOWLEDGMENTS 101
 

REPORTS IN THE NATIONAL ENDOWMENT FOR TRE
 

ARTS RESEARCH DIVISION SERIES 103
 
 

PREFACE Agencies; and John Blaine, National Assembly of Community Arts Agencies. Individ-


The publication of this Research Division uals whose previous or parallel work con-


report culminates a five-year exploration tributed to the conceptual framework of the
 

of the economic role of arts and cultural project are cited throughout the text.
 

institutions in urban communities. While
 

numerous promising technical approaches to This publication presents the procedures,
 

this subject were proposed to the Research findings, and implications of the six-city
 

Division, resource constraints restricted study in summary form. Full project docuthe efforts to the development and ex- mentation is contained in unpublished reports
 

tensive application of a single model by and monographs which may be examined at or
 

the Center for Metropolitan Planning and obtained on interlibrary loan from the library
 

Research of The Johns Hopkins University. of the National Endowment for the Arts, 2401
 

The selected model, using a series of equa- E Street, N.W., Washington, D.C. 20506; teletions adapted from a previous study of ed- phone 202/634-7640.
 

ucational institutions, was first applied
 

to six institutions in metropolitan Balti- Cwi, David. The Economic Impact of Forty-


more. Results were published in Research Nine Cultural Institutions on the Economies
 

Division Report #6, Economic Impact of Arts of Six U.S. Cities, unpublished report.
 

and Cultural Institutions: A Model for As- (Baltimore: The Johns Hopkins University,
 

sessment and a Case Study in Baltimore Center for Metropolitan Planning andre­

(see list at the back of this report). search, 1980) .
 

The Economic Impact of Six Cultural Institutions on the Economy of the
 

The objective of the six additional case Columbus SMSA, volume I; Technical Supple-


studies reported here was to permit exam- ment, volumes II and III; unpublished reination of such local factors as city size ports. (Baltimore: The Johns Hopkins
 

and regional importance on estimated eco- University, Center for Metropolitan Plan-


nomic effects. Recognition of these fac- ning and Research, 1980).
 

tors is a necessary step to appropriate use
 

of cultural impact data in policy making The Economic Impact of Ten Culand planning for economic development. tural Institutions on the Economy of the
 

Minneapolis/St. Paul SMSA, volume I; Tech-


Few research efforts in the arts and cul- nical Supplement, volumes II and III; un­ ture have combined the energies of as many published reports. (Baltimore: The Johns
 

individuals and organizations as this six- Hopkins University, Center for Metropolitan
 

city study which was carried out through Planning and Research, 1980).
 

the assistance of local project sponsors. The
 

extensive listing of each participating The Economic Impact of Eight Culinstitution’s staff and volunteers that tural Institutions on the Economy of the
 

appears at the end of this publication only St. Louis SMSA, volume I; Technical Sumplebegins to suggest the degree of local in- ment, volumes II and III; unpublished revolvement. For the Johns Hopkins Univer- ports. (Baltimore: The Johns Hopkins
 

sity, Center for Metropolitan Planning and University, Center for Metropolitan Plan­  ̄
 Research, David Cwi served as principal in- ning and Research, 1980).
 

vestigator and provided much of the analytical material summarized in this report. The The Economic Impact of Five Culproject manager was D. Alden Smith. David rural Institutions on the Economy of the
 

Greytak of Syracuse University assisted the San Antonio SMSA, volume I; Technical Sup-


Center by developing co-efficients used to plement, volumes II and III; unpublished
 

estimate secondary economic effects. Assis- reports. (Baltimore: The Johns Hopkins
 

ring with computer programming and data base University, Center for Metropolitan Plan-


management were Mark Keintz and BrianPeters.ning and Research, 1980).
 

The audience study sampling design and se­ . The Economic Impact of Ten Cul­ lected portions of the analysis were the
 

work of Ralph B. Taylor. Technical assis- rural fnstitutions on the Economy of the
 

tance in design and analysis were provided Salt Lake City SMSA, volume I; Technical
 

by Allen Goodman and Henry Henderson, while Supplement, volumes II and III; unpublished
 

Patty Strott served as project secretary,
 reports. (Baltimore: The Johns Hopkins


University, Center for Metropolitan Plan-
 The project work was guided by an advisory
 

committee that aided in the selection of ning and Research, 1980).
 

the six study cities from a field of seventy-


five. Members of the committee were Jim
 The Economic ImDact of Ten Cul-


Gasser, The U.S. Conference of Mayors; Bette rural Institutions on the Economy of the
 

Treadwell, National League of Cities; Joan Springfield SMSA, volume I; Technical Sum-


Simmons, National Governors’ Conference; plement, volumes II and III; unpublished
 

Ken Kahn, National Assembly of State Arts reports. (Baltimore: The Johns Hookins
 
University, Center for Metropolitan Planning and Research, 1980).
 

Greytak, David, and Blackley, Dixie. Multiplier Analysis: Arts and Cultural instit~­

tions, unpublished monograph. (Syracuse:
 

The Maxwell School, Syracuse University,
 

1980).
 

Smith, D. Alden. "The Systematic Sampling
 

of Parries at Arts and Cultural Event~:
 

Weighting Procedures for Party-Specific
 

Items." (Baltimore: The Johns Hopkins
 

University, Center for Metropolitan ~lanning and Research, 1980).
 

Taylor, Ralph B. Arts Economic Impact Studies: An Examination of Some Process Issues
 

unpublished monograph. (Baltimore: The
 

Johns Hopkins University, Center for Metropolitan Planning and Research, 1980).
 

Research Division
 

Nationa! Endowment for the Arts
 

January 1981
 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIST OF TABLES	 III-5 Minneapolis/St. Paul SMSA audiences
 

I-i Audience per capita spending 19 

1-2 Direct economic effects of 

examined institutions 20 

I-3	 Government revenues as a percentage
 

of examined instititions’ operating
 

budgets 23
 

I-4	 Secondary economic effects of
 

examined institutions 24
 

i-5	 Estimated revenues and costs to
 

local government related to examined
 

institutions by city 25
 

II-i 	 Columbus SMSA demographics 30
 

II-2	 Columbus SMSA selected businesses
 

related to arts and culture 32
 

II-3	 Columbus SMSA estimated direct
 

economic effects of examined
 

institutions 33
 

11-4	 Columbus SMSA estimated audiences
 

and spending by examined
 

institutions 34
 

II-5	 Columbus SMSA audiences of
 

examined institutions by
 

residence and spending 36
 

11-6	 Columbus SMSA nonlocal audiences
 

by examined institutions 37
 

II-7" Columbus SMSA estimated secondary
 

economic effects of examined
 

institutions 38
 

11-8	 Columbus SMSA examined institutions
 

by sources of government support 39
 

Columbus SMSA estimated revenues
 

and costs to local government
 

related to examined institutions 40
 

[!I-i	 Minneapolis/St. Paul SMSA
 

demographics 42
 

lII-2	 Minneapolis/St. Paul SASA selectgd
 

businesses related to arts and
 

culture 44
 

[11-3	 Minneapolis/St. Paul SMSA
 

estimated direct economic effects
 

of examined institutions 45
 

!11-4	 Minneapolis/St. Paul SMSA
 

estimated audiences and spending
 

by examined institutions 46
 

of examined institutions by
 

residence and spending 48
 

[II-6	 Minneapolis/St. Paul SMSA
 

nonlocal audiences by
 

examined institutions 49
 

III-7 Minneapolis!St. Paul SMSA estimated
 

secondary economic effects of
 

examined institutions 50
 

III-’8	 Minneapolis/St. Paul SMSA examined
 

institutions by sources of
 

government support 51
 

[II-9	 Minneapolis/St. Paul SMSA estimated
 

revenues and costs to local
 

government related to examined
 

institutions 52
 

IV-I	 St. Louis SMSA demographics 54
 

IV-2	 St. Louis SMSA selected businesses
 

related to arts and culture 56
 

IV-3	 St. Louis SMSA estimated direct
 

economic effects of examined
 

institutions 57
 

IV-4	 St. Louis SMSA estimated audiences
 

and spending by examined
 

institutions 58
 

IV- 5	 St. Louis SMSA audiences of
 

examined institutions by
 

residence and spending 60
 

IV-6	 St. Louis SMSA nonlocal audiences
 

by examined institutions 61
 

IV-7	 St. Louis SMSA estimated secondary
 

economic effects of examined
 

institutions 62
 

IV-8 :	 St. Louis SMSA examined institutions
 

by sources of government support 63
 

IV-9	 St. Louis SMSA estimated revenues
 

and costs to local government
 

related to examined institutions 64
 

v-i	 Salt Lake City SMSA demographics 66
 

V- 2	 Salt Lake City SMSA selected
 

businesses related to arts and
 

culture 68
 

V- 3	 Salt Lake City SMSA estimated
 

direct economic effects of examined
 

institutions 69
 

V-4	 Salt Lake City SMSA estimated
 

audiences and spending by examined
 

institutions 70
 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

V-7
 

V-8
 

V- 9
 

VI-I
 

V1-2
 

VI-3
 

V1-4
 

VI-5
 

VI-6
 

VI-7
 

VI - 8
 

VI-9
 

Vii-1
 

-2i]:-2
 

\711-3
 

Salt Lake City SMSA audiences of
 

examined institutions by
 

residence and spending 72
 

Salt Lake City SMSA nonlocal
 

audiences by examined
 

institutions 73
 

Salt Lake City SMSA estimated
 

secondary economic effects of
 

examined institutions 74
 

Salt Lake City SMSA examined
 

institutions by sources of
 

~overnment support 75
 

Salt Lake City SMSA estimated
 

revenues and costs to local
 

goverP~ent related to examined
 

institutions 76
 

San Antonio SMSA demographics
 78
 

San Antonio SMSA selected
 

businesses related to arts
 

and culture 80
 

San Antonio SMSA estimated direct
 

economic effects of examined
 

institutions 81
 

San Antonio SMSA estimated
 

audiences and spending by
 

examined institutions 82
 

San Antonio SMSA audiences of
 

examined institutions by
 

residence and spending 84
 

San Antonio SMSA nonlocal audiences
 

by examined institutions 85
 

San Antonio SMSA estimated
 

secondary economic effects
 

ofexamined institutions
 86
 

San Antonio SMSA examined
 

institutions by sources of
 

government support 87
 

San Antonio SMSA estimated
 

revenues and costs to local
 

government related to examined
 

institutions ~8
 

Springfield SMSA demographics 90
 

Springfield SMSA selected
 

businesses related to arts
 

and culture 92
 

Springfield SMSA estimated direct
 

economic effects of examined
 

institutions 93
 

VII-4
 

VII-5
 

VII-6
 

VII-7
 

VII-8
 

VII-9
 

Springfield SMSA estimated
 

audiences and spending by
 

examined institutions 94
 

Springfield SMSA audiences of
 

examined institutions by
 

residence and spending 
 96
 

Springfield SMSA nonlocal audiences
 

by examined institutions 97
 

Springfield SMSA estimated
 

secondary economic effects
 

of examined institutions 98
 

Springfield SMSA examined
 

institutions by sources of
 

government support 99
 

Springfield SMSA estimated
 

revenues and costs to local
 

government related to examined
 

institutions i00
 
INTRODUCTION
 

Report organization
 

This report examines the economic impact
 

of cultural institutions on their communities. An approach developed in a pilot
 

project in Baltimore in 1976 has been
 

applied to follow-up studies in six other
 

U.S. cities. The findings are presented
 

here in summary form.
 

Chapter I of the report presents an overview of the six-city study, describing
 

technical matters of procedures and data
 

collection, and discusses traditional
 

approaches to community economic analysis
 

including the interindustry analysis used
 

here. Audience spending is examined,
 

especially in regard to the study’s restrictive protocol which attributes to
 

the institution only those expenditures
 

made by visitors who came to the community for the sole reason of using the institution. The chapter reviews direct
 

and secondary effects of culture-related
 

expenditures.
 

Succeeding chapters examine the application of economic impact analysis in the
 

six cities of the study: Columbus, Minneapolis/St. Paul, St. Louis, Salt Lake City,
 

San Antonio, and Springfield, Illinois.
 

Each city is described in terms of its
 

institutions, economy, and broader cultural community, direct and secondary
 

economic effects of selected institutions,
 

and institution-related government revenues and expenditures.
 

The Baltimore pilot project
 

The city studies presented here are a continuation of a pilot project conducted in
 

Baltimore (Research Division Report #6,
 

Economic Impact of Arts and Cultural Institutions: A Model for Assessment and a Case
 

Study in Baltimore, Washington: National
 

Endowment for the Arts, 1977; see list at
 

the back of this revort) . This project
 

sought to develop an approach to conducting
 

useful and credible cultural economic impact studies consistent with the cultural
 

field’s resource constraints. The adopted
 

approach was based on.J. Caffrey and H.
 

Isaacs’s Estimating the Impact of a College
 

or University on the Local Economy (Washington: American Council on Education,
 

1971).
 

In the Baltimore report, David Cwi and
 

Katherine Lyall sought to improve on the
 

clarity and scope of cultural economic
 

impact analysis by clearly distinguishing
 

effects on local business volume and expenditures, costs and revenues to government, and effects on personal income and
 

jobs. Needed data were acquired through
 

available institutional internal accounts,
 

audience and employee surveys, and local,
 

state, and federal documents.
 

The study focused on the Baltimore Opera,
 

the Walters Art Gallery, the Baltimore
 

Symphony, the Morris A. Mechanic Theatre,
 

the Baltimore City Ballet, the Baltimore
 

Museum of Art, Center Stage, and the Arena
 

Players. In fiscal 1976 the examined institutions and their employee households
 

spent $6.8 million in the Baltimore U.S.
 

Bureau of the Census Standard Metropolitan
 

Statistical Area or SMSA; their audiences
 

and patrons spent an additional $4.6 million in association with their attendance;
 

and their guest artists spent an additional $68,000. These institution-related
 

expenditures prompted secondary effects
 

as local businesses that benefited made
 

additional local purchases. These additional purchases were estimated to eventually total $18.5 million. In addition,
 

local governments in the Baltimore SMSA
 

incurred some $700,000 in expenditures
 

required to provide services to the institutions’ employee households. While
 

tax-exempt themselves, the institutions
 

accounted for at least $150,000 in local
 

tax revenues from such sources as retail
 

sales, income, and property taxes. It
 

was estimated that the total of institution-related spending would support some
 

770 local jobs in addition to the 404
 

provided by the institutions themselves.
 

Role of additional case studies
 

while the Baltimore pilot project served
 

to identify and refine research and analytical approaches, it did not attempt to
 

assess the role and relative importance
 

of cultural activities to the local economic development process. It was hoped
 

that additional studies would lead to
 

a better understanding of the similarities
 

and,.differences among institutions of various types and permit analysis of the economic development role of cultural institutions. Toward these ends, data were
 

analyzed utilizing traditional concepts
 

of community economic anglysis.
 

Study sponsors and participating institutions
 

To identify cities interested in conducting an economic impact case study utilizing the procedures piloted in Baltimore,
 

letters were sent to local and state arts
 

agencies and announcements were placed in
 

cultural publications. This prompted interest from some seventy cities and institutions. Approximately twenty continued
 

their interest after understanding the effort required. The six participating
 

cities were selected from this group with
 

the assistance of a national advisory com­
mittee. The resulting case studies have
 

already been released in each participating city, along with technical supplements
 

reviewing study procedures and presenting
 

the data on audience, institutions, and
 

staff used to estimate economic effects.
 

Sponsors included a state arts council, a
 

united arts fund, an arts alliance, and two
 

nonprofit arts councils. The demands imposed by data collection methods, especially the need to conduct simultaneous
 

audience studies over several weeks, sharply limited the number of institutions that
 

could be included in each of the six cities
 

of the study. Consequently, the arts and
 

cultural organizations’ data in each city
 

are best thought of as an illustrative
 

cross section rather than as a probability
 

sample.
 

Art museums and symphonies were examined
 

in all six cities; theatres in five; museums of science and art centers in four;
 

performing arts, modern dance, ballet, and
 

improving publicity to promote tourism;
 

interest in culture by municipal tourist-


development agencies; and making people
 

more aware of the needs of their local
 

cultural institutions.
 

Cultural administrators cited secondary
 

benefits to their organizations consistent
 

with an advocacy focus. In particular,
 

their interests lay in enhancing visibility and prestige, and increasing suppor=
 

from corporations and government.
 

The community leaders generally believed
 

that the study would lead to increased
 

budget allocations. Details of questionnaire procedures and findings are discussed
 

in Ralph B. Taylor’s Arts Economic Impact
 

Studies: An Examination of Some Process
 

Issues (unpublished monograph, Baltimore:
 

The John Hopkins University, Center for
 

Metropolitan Planning and Research, 1980).
 

This monograph also explore changes in expectations after completion of the study.
 

opera companies in three; museums of history Study management
 

in two; and a chamber orchestra in one.
 

Reasons for participation
 

Interviews with local study sponsors suggested that an interest in "ammunition for
 

advocacy" was a primary motivation for
 

participating in the study; they hoped also that the study would prove that there
 

were economic returns on public and private cultural funding. Sponsors hoped to
 

influence foundation as well as legislative decisions, and their interest in advocacy included enhancing the "competitiveness" of their constituency.
 

Sponsors indicated that three main benefits influenced participation by local institutions. First, the sponsor retained
 

complete administrative and financial responsibility; second, the institutions received an audi4nce survey; and third, the
 

institutions understood the study’s advocacy potential, including the fact that
 

the project was a national study involving
 

The Johns Hopkins University and the National Endomwent for the Arts, and that it
 

would reach a wide audience of cultural
 

administrators.
 

Results of interviews and a questionnaire
 

survey of cultural administrators and community leaders in the six cities indicated
 

little agreement on the leve! of anticipated value of the studies in any area but
 

advocacy. These individuals were asked to
 

report the areas in which they thought the
 

study would prove useful, some of which
 

were: long-range planning by local and
 

state arts councils; municipal budget allocations; events sponsored by local arts
 

institutions; management of institutions;
 

As already noted, the six case studies reviewed in this report were developed in
 

partnership with local sponsors and each
 

was responsible for the local data collection following procedures developed at The
 

John Hopkins University, Center for Metropolitan Planning and Research. Study coordinators selected by the local sponsors
 

varied in background and included a graduate student intern, a private consultant,
 

institution staff, and a professor at a
 

local university.
 

Coordinators from each city participated
 

in workshops held in Baltimore at Johns
 

Hopkins in October 1978. These workshops
 

were developed to orient study coordina[
 

tors to all phases of the data collection
 

process. Supplemental materials regarding
 

conduct or documentation of each data collection procedure were developed and forwarded as procedures were implemented.
 

The ability of cities to undertake these
 

tasks simultaneously was materially affected
 

by constraints in study coordinator time,
 

the ongoing availability of other local
 

study staff, and cooperation from local institutions, in the interest of data quality,


only data collection efforts that could be
 

successfully managed by local study staff
 

were encouraged. Because at any one time
 

the cities may have been engaged in differing aspects of the data collection effort,
 

constant monitoring by telephone of progress
 

and problems was necessary.
 

Project uses
 

The primary purpose of arts and cultural
 

institutions is to add to creative expresi0
 
sion and quality of life, and not to generate dollars and jobs for the community.
 

To substitute the economic value of the
 

arts for their human, spiritual, and aesthetic value could be dangerous. The economic value of the arts should be viewed
 

as a by-product and not the primary reason for their existence. It would be a
 

serious and self-defeating mistake for institutions to make artistic decisions on
 

the basis of potential economic impact.
 

However, because culture competes with other
 

activities in the city for financial support,
 

and because the cost of arts support has
 

risen, institutions wish to prove that the
 

arts benefit the community economically.
 

Economic impact studies show how money
 

flows between the arts and the local economy. They demonstrate that the cultural
 

and economic development of a community
 

can be complementary.
 

Arts and cultural economic impact studies
 

also can be used to influence resource allocations from goverrument and private
 

sources. During a 1977 National Endowment
 

for the Arts workshop, it was noted that
 

"in the competition for public dollars,
 

economic impact information was what legislators ’listened to.’ By having this
 

information available, legislators would~
 

find it easier to justify arts appropriations .... " .(David Cwi, ed., Research
 

in the Arts: Proceedings of the Conference in Policy-Related Studies of the National Endowment for the Arts, Baltimore:
 

Walter Arts Gallery, 1977). The arts return a portion of public funds, and also
 

generate economic benefits throughout the
 

community. Economic impact studies can
 

tell business owners that they are investing wisely. They are an effective consciousness-raising tool, because they alert
 

government, business, foundations, and the
 

general community to the arts. The arts
 

can gain a competitive advantage for increasingly hard-to-get funding by participating in the studies.
 

More specifically, economic impact studies
 

can affect the following areas of advocacy
 

and community planning. They can help to
 

preserve and increase local and state art
 

budgets, promote tourism, and assist in
 

long-range planning by local and state
 

arts councils. They may interest local
 

tourist development agencies in the arts,
 

provide a basis for approaching economic
 

development organizations, and assist
 

businesses (restaurants, tour operations,
 

vendors, etc.) in appraising their potential markets.
 

Economic impact studies are also useful
 

for internal policy analysis and forecasting. Organizations may learn more about
 

their operations and markets. They may
 

want to change programs to attract additional audiences. A museum, for example,
 

may be able to save money by learning more
 

about its attendancemit may be able to
 

decrease the number of days it operates
 

and increase its hours of operation on
 

other days without significantly affecting
 

its drawing power. Using study data, institutions may find they can make better
 

use of their limited reso~rces.
 

Obviously, a local organization or agency
 

c’~nsidering the initiation of an extensive
 

economic impact study should weigh the
 

costs in light of anticipated uses. Where
 

the production of advocacy material is a
 

main objective, general observations drawn
 

from this and other economic impact studies
 

may be.adequate. For such purposes, particular attention should be paid to the
 

"simple indicators" of economic effects
 

presented in Chapter I.
 

Culture and central cities. Although these
 

studies are intended to identify effects on
 

entire U.S. Bureau of the Census Standard
 

Metropolitan Statistical Areas or SMSAs,
 

economic development practitioners in central cities may have a special interest in
 

their findings. The examined events and
 

facilities were typically iQcated in the
 

central city. In addition to visitors from
 

outside the SMSA, these activities regularly
 

bring thousands of suburban residents back
 

to the city and can help draw people to redeveloped downtown and neighborhood areas.
 

This may help maintain markets for other
 

city businesses and create an urban environment attractive to residents and visitors
 

alike. The study documents cited in the
 

preface offer detailed data on audience
 

residence and distance traveled to attend
 

cultural institutions.
 

Data collection
 

To.assess the local economic effects of arts
 

and cultural institutions, each institution’s
 

d~’rect effect in terms of local spending for
 

goods and services was first identified, together with salaries and wages to local residents and loca! spending by guest artists
 

and audiences. These and other data were
 

then used to estimate secondary effects involving local businesses and government.
 

Required data on audience spending were acquired through extensive audience surveys
 

during the fall and winter of 1979.
 

Audience survey. The audience survey required the development of self-administered questionnaires, implementation procedures and management plans, and sampling
 

frames, documentation, and data handling
 

procedures relating to editing and keypunching. ̄ Audience questionnaires and procedures reflected the Baltimore pilot project and were designed to allow each city
 

to add questions.
 

ii
 
 

 

 

 

 

During the survey period, attenders at
 

the arts and cultural institutions were
 

given questionnaires. The form, after
 

identifying the study sponsors, explaining
 

its purpose, and promising anonymity to
 

participants, posed a number of compound
 

questions. The first set concerned place
 

of residence and length of time there, age,
 

number of people in the household, and years
 

of education of the respondent; also, how
 

far the respondent had come to use the institution, and how much admission had been
 

paid. The next questions concerned the
 

party with which the respondent had come:
 

how many in the party; had they spent any
 

money in connection with coming, such as
 

~ransportation, refreshments outside the
 

institution, refreshments or purchases
 

inside the institution; or expenses for
 

such matters as babysitting and parking?
 

The third group of questions singled out
 

visitors from out of town: had they come
 

expecting to attend the institution, and
 

if so was attendance the sole reason for
 

the visit; how many nights would they
 

spend in town; how many in their party,
 

and how much did the party expect to spend
 

during this visit?
 

The questions that followed explored the
 

respondent’s use and support of examined
 

cultural activities. The respondent was
 

asked, for each of the examined institutions: was he or she a member or subscriber; how many times the respondent had
 

attended in the ~last twelve months, and
 

how much money had been contributed to the
 

institution in that period over and above
 

memberships, tickets, and other fees; how
 

much had been contributed in that period
 

by the respondent to combined arts and
 

cultural fund-raising campaigns in the


£elevant city.
 

The final questions were demographic: marital status, sex, race or ethnic group,
 

total family income in the last year, employment status, and occupation.
 

Prior to the orientation workshop, study
 

coordinators gathered requisite audience
 

data for each event or day during the survey period, such as estimated attendance
 

by performance or event.
 

Separate technical supplements for each
 

city study [available through the library
 

of the National Endowment for the Arts)
 

identify sampled event days for each institutlon and present information on response rates. Response rates of 70 percent
 

and higher were common in all cities, with
 

surveys designed to obtain a minimum of
 

five hundred completed audience question-


na±res at each institution.
 

Institutional ~ i~v~ntor . Coordinat-~s w---~-~re ~-~veded with suggested procedures for securing requisite data from institutional internal financial accounts.
 

These procedures sought to be responsive
 

to institutional unwillingness to "open
 

the books" for inspection and at the same
 

time sought to gather data of sufficient
 

quality for Study purposes. A principal
 

concern was to i~entify nonlabor expenditures made with local firms. ~
 

To determine local expenditures, coordinators identified the staff person at the
 

examined institution most knowledgeable
 

about local vendors and accounts payable,


and sought the most detailed avaiiable
 

statement of institutional expenses identifying which expenditures were made locally. Invoices were inspected as a supplementary measure where necessary.
 

Additional data on attendance, staffing,


and other matters were provided in this
 

institutional data inventory, as well as
 

counts by a random number table to select
 

bank account balance dates.
 

~C_o_n~_unit data inventory
 

tors~- Stud
Y coordina­ ~c=u ~u requisite community
 data and likely local sources, and were
 

provided with an Annotated Community Data
 

Inventory intended to take account of the
 

unique features of each community. Subsequently, the documented community data
 

items were sent to local planning agencies
 

and chambers of commerce for review. Johns
 

Hopkins staff gathered specific data on
 

each city’s economy business, and employment. ’ _ .
 

~?[~rnmen~ data. To complete the relevant
 data, study staff collec~ed information on
 

governmental expenditures on all levels in


the SMSA, together with tax rates and bases for local jurisdictions.
 

~ and estimation issues
 

The data collection procedures prompted
 

the need to deal with weighting and estimation issues.
 

Audiences mhe s
 

....  ̄ -" -" ystematlc sam ’
 "  ̄ 

~uulence necessitates weightin~l~ O=~ an
 

number
 of resmondents of differinc party-sizes
 d~e to’the dlfrer!ng probabilities o~ va
 

r~ous size parties recelving questionnaires. A detailed description of this
 

procedure and caveats re~arding i~s use
 

are in a Johns Hopkins U~iversity~working
 

paper by D. Alden
 

Samplin~ Smith, "The Systematic
 of Parties at Arts and Cultural
 Events: Weighting Procedures for Party­

~f~iItems,’’ P tan Planning and Research, 1980).
 [Baltimore: Center for


12
 
Any analysis of visitors must deal with a
 

limited number of cases or small percentage of visitors in the audience on the
 

dates surveyed. These circumstances advised an analysis of visitor mean spending across all sampled institutions rather
 

than on an institutional basis. Furthermore, since some institutions had relatively few visitors outside the SMSA
 

during the sampling period, estimates of
 

total sole-reason visitors may be based
 

on a small number of sampled visitors.
 

These institutions are noted in tables in
 

individual city chapters.
 

Employees. The employee survey used ZIP
 

codes to categorize employees into local
 

taxing districts that cross political
 

boundaries. Part-time employees were
 

aggregated into full-time equivalents.
 

Estimates of local spending by institutional employees were based on their personal salary and wage income. Costs to
 

local government, however, were based on
 

employee household data, since the majority of these effects are only meaningful
 

in terms of households.
 

Community taxes. These included taxes on
 

business and residential property, sales,
 

transit, hotels, parking, gasoline, restaurants, admissions, and income. Study
 

procedures focused on institution-related
 

sales to vendors" in the SMSA and identified property taxes on business-related
 

property or inventory on an SMSA basis.
 

Consequently, the estimation of local
 

property taxes attributed to the examined
 

institutions is complex because selected taxes can change over time; there may
 

be a large number of local taxing authorities; taxing districts may overlap; data
 

such as market value or taxable value
 

and assessment ratio may not be readily
 

available; and tax policy may differ by
 

type of property--business inventories
 

may or may not be taxable at a different
 

rate than business real property.
 

Procedures required the development of an
 

aggregate tax rate for all taxing authorities and jurisdictions within a county
 

and the weighting of all counties within
 

the SMSA. This was accomplished by weighting for differences in assessment ratios
 

and property tax rates.
 

Local residential property tax attributable to institutional employees owning homes
 

can be calculated directly using average
 

property tax reported by the full-time employees in the employee survey. Property
 

taxes due to institutiona! employees who
 

rent living quarters can be estimated on
 

the assumptions that 25 percent of rentor
 

employee’s household income goes to rent
 

and that 20 percent of rent would eventually go to landlord property taxes.
 

The calculation of sales taxes must take
 

account of differing tax rates and taxable
 

transactions by local jurisdictions. The
 

aggregate of all institution, audience,
 

and guest artist spending subject to sales
 

tax is identified and then multiplied by
 

the appropriate tax rate. If only a percentage of locally generated sales tax revenues is returned to local jurisdictions,
 

spending is multiplied by that percent.
 

Jurisdictions may have differing sales tax
 

rates. If so, attributable sales taxes can
 

be apportioned by the percent of total
 

SMSA sales taxes collected in each jurisdiction.
 

Transit taxes, where applicable, were levied in a similar fashion to sales taxes
 

and treated similarly for the purposes of
 

the study.
 

To estimate hotel taxes, first the estimated number of sole-reason visitors was
 

multiplied by the average length of their
 

visit. This figure was adjusted by the
 

percent reporting spending on lodging (corrected for party size) to identify the number of paid nights in the area. According
 

to Laventhol and Horwath’s "U.S. Lodging
 

Industry, 1978," Philadelphia, 1978, the
 

average daily rate for occupancy in 1977
 

was $15.81 per person. Assuming two persons per room, this figure was multiplied
 

by the number of person nights for the
 

estimated dollar value of hotel spending
 

by sole-reason visitors. The result, plus
 

the spending on hotels by guest artists
 

(from the institutional data inventories),
 

provided an estimate of total spending at
 

hotels. This amount can be "taxed" at the
 

appropriate rate.
 

To.estimate parking revenues, assuming one
 

party per car, the adjusted number of local parties and nonlocal sole-reason parties was multiplied by the estimated percent of attenders arriving by car. This
 

figure was multiplied by the estimated
 

parking cost per car (average hours of
 

stay times average cost per hour in public
 

lots) to get the parking revenues to local
 

government for each institution.
 

Gasoline taxes were estimated by multiplying the average distance traveled by
 

the adjusted number of local and sole-


reason parties to get total miles traveled.
 

This figure was then divided by an assumed
 

twenty miles per gallon to estimate gallons
 

used. Loca! excise taxes per gallon are
 

then applied. No estimate was made of gasoline usage by the examined institutions’
 

employees or by guest artists.
 

13
 
Restaurant taxes, where applicable, can be
 

calculated directly from estimated spending in restaurants and bars, using appropriate !ocal tax rates.
 

Data on admission taxes, where applicable,
 

were provided by the institutions.
 

income tax estimates frequently involve
 

jurisdictional problems as noted previously with other tax items. One frequent nroblem is whether the tax is collected w~ere
 

the employee li~es, works, or in both
 

places. Income taxes, where applicable,
 

were calculated as described in the Baltimore pilot project report.
 

14 
CHAPTER I
 

AN OVERVIEW OF THE SIX-CITY STUDY
 

Community economic impact analysis
 

A brief introduction to several traditional approaches to the analysis and modeling
 

of community economic growth and development will provide a traditional framework
 

from within which to evaluate the impact
 

of cultural activities considered solely
 

as economic enterprises in their own right.
 

This will also assist persons interested
 

in placing case study findings within this
 

broader context.
 

The first approach, Keynesian multipliers,
 

focuses on the cascading effect of a dollar of spending in a community as it is
 

respent over and over to generate additional jobs and income. The second, the ecomomic base model approach, focuses on the
 

sources of community income, especially
 

local firms that generate income through
 

exports of goods, services, and labor.
 

The third approach, interindustry analysis,
 

explains the cascading of income through
 

the community in terms of the purchases
 

that local firms make from one another and
 

the business volume created by employee
 

spending.
 

Keynesian multipliers. Several cultural
 

economic impact studies utilize Keynesian
 

multipliers; this method of analysis is
 

based on the work of John Maynard Keynes
 

and estimates the total impact on the economy-of an injection of additional income.
 

On the Keynesian model, income is pictured
 

as rippling through the economy, being
 

spent and respent as it becomes income to
 

firms, then wages, then again income to
 

firms. Keynesian analysis traces the cascading effect of a dollar of spending in
 

a community by estimating the propensity
 

to consume when there is a change in income. The ratio of the change in consumption to the change in income is "the.marginal propensity to consume." The ratio
 

will be less than one since some portion
 

of a change of income may not be spen~ on
 

consumption due to such factors as savings
 

and taxes.
 

Keynesian analysis, when applied to a spe-.
 

cific economy, makes it possible to identify a marginal propensity to consume
 

goods and services that are produced locally. Dollars spent on imported goods


and services are a form of "leakage.~’ Taxes and savings by households and firms are
 

additional sources of leakage.
 

15
 

On the Keynesian model, as income is being spent and respent, it is reduced after
 

each round by leakage. The total of al!
 

these successively smaller fractions of
 

the original unit of income is an arithmetic multiplier that can be estimated
 

in terms of personal incomes of local
 

business volume.
 

Economic base model. The premise of the economic base model is that the growth of a
 

region or city is principally determined
 

by its status as an exporter of goods,
 

services, or labor. Export sales include
 

not only goods or services flowing out of
 

the region but expenditures in the region
 

by nonlocal buyers of goods and services
 

that are specific to the community, due
 

to such factors as geography, climate, or
 

history.
 

The community’s export industries are referred to as the basic sector of the local
 

economy. Employment and income in this
 

sector are treated as essentially a function of outside demand for the region’s
 

exports. Since no community is capable
 

of producing all the goods and services
 

it requires, leakage is inevitable. The
 

basic or export sector is important because it brings new dollars into the
 

community through export sales, providing
 

the income the community needs to purchase
 

imports and fund local growth.
 

Workers in export industries as well as
 

the export industries themselves require
 

supporting services such as trade, medical
 

and legal services, and a variety of other
 

personal services. The firms providing
 

these services are referred to as the non-


basic sector. Workers in the nonbasic
 

sector are themselves consumers of non-


basic services.
 

Thus, the theory holds that all economic
 

activity is either basic or nonbasic, and
 

that local economic growth and stability
 

are essentially determined by demand elsewhere in the world for the goods and services that comprise the export or basic
 

sector.
 

From this point of view] demand in the
 

nonbasic sector is dependent on demand
 

in the basic sector. If the basic sector expands then there is increased income available to the community allowing
 

for expansion of the nonbasic sector.
 

Consequently, industries that simply service local needs are not as important as
 

those that have a market outside the community, unless the local service industry
 

is directly linked to an export earner in
 

the sense that its absence or shrinkage
 

would have negative effects on the export
 

sector.
 
Thus, a firm may produce a product which
 

is sold locally to a manufacturer who
 

incorporates it as a part in a final product which is sold outside the community.
 

In this techno!ogical or production sense
 

the firms are linked; both would be con~
 

sidered part of the basic sector. An industry that has a limited export role
 

would be considered relativeiy unimportant
 

from the standpoint of economic base theory
 

unless it was tied technologically to export earners, especially if residents were
 

willing to substitute another locally
 

available activity rather than re!v 0n
 

imports--attend a local movie thea[re
 

rather than travel to another city for a
 

leisure activity not available locally.
 

Various techniques have been used to identify the size of a community’s basic industry and estimate the impact in the non-


basic sector of basic sector expansion.
 

The simplest approach involves the assumption that all employment in certain categories is basic. For example, it is commonly assumed that all manufacturing and
 

agricultural production is for export and
 

therefore basic, and that all construction, trade, and services are nonbasic.
 

However, many industries identified as
 

basic and nonbasic by this approach will
 

be found to have markets both within and
 

outside the local contmunity. The challenge then is to identify the extent to
 

which activity in any one industry is export oriented.
 

Once the proportion of an industry that
 

is basic or nonbasic has been determined,
 

it is possible to develop "economic base
 

multipliers." By identifying the ratio
 

of basic employment (or income) to non-


basic, it is possible to create a base
 

~ultiplier. If the ratio is 1:2 then the
 

base multiplier is three. When basic
 

employment increases by one, two other
 

jobs will be created in the nonbasic
 

sector.
 

The significance of the economic.base
 

model is clear. In effect it attempts to
 

identify firms in the region with a primarily local market and distinguish them
 

from firms which earn income through sales
 

outside the metropolitan area.
 

Available cultural impact studies tend to
 

!:ocus on the export issue by providing data
 

on the role of culture in tourist development. This is due in large measure to the
 

=ocus on performing and visual arts institutions as opposed, say, to individual
 

artists and craftworke}s or film and other
 

arts industries that incur export sales
 

through sales of their produc~s or labor
 

in other cities.
 

The institutions examined in the case
 

studies are thought to predominantly incur
 

extort sales by drawing visitors to-the
 

community, thereby contributing to tourism
 

development.
 

Data from the cit], studies can held identify the extent to which the insti[utions
 

are themselves export earners. The case
 

studies do not examine the extent to which
 

the availability of local cultural activities restrict imports, including sales
 

that might have gone for leisure, arts,
 

and other pursuits outside the community
 

had there been no locally available activities.
 

Interindustry analysis. The Keynesian
 ltiplier and economic base model approaches to economic analysis operate on
 

two basic concepts: that spending in the
 

local economy involves continuous economic
 

exchanges between households and firms as
 

well as leakage from the economy due to
 

imports and other factors.
 

The third approach, interindustry analysis,
 

examines the economy at a highly disaggregated level, tracing the flow of dollars at the household and firm level as
 

well as linkages among firms that might
 

be confusing when expressed solely in
 

terms of the economic base model.
 

To produce and sell an additional unit of
 

output, local firms require a variety of
 

resources, including goods, services, and
 

labor. This relationship is technological in the sense that the firm’s production requirements make it dependent on
 

other firms, some of which are local and
 

others that are not.
 

Direct effects refer to the purchases of
 

goods, services, and labor that a firm
 

requires to produce an additional unit of
 

output. These direct expenditures lead
 

to indirect expenditures as suppliers of
 

needed goods and services make purchases
 

Of their own in order to produce the output for the buying firm. In this way,
 

the original sale achieves a multiplier
 

effect the size of which will vary by
 

industry as a function of its requirements
 

for locally available goods, services,
 

and labor. Other things being equal, the
 

larger and more diversified the economy,
 

the more likely the needs can be supplied
 

loca!ly, and hence the higher the "multiplier."
 

Interindustry analysis addresses the
 

"linked" industry issue bv distinguishing
 

techno!ogically linked en[erprises from
 

industries linked through employee households. Firms devote a portion of their
 

business volume to purchasing the goods
 

and services they need from other businesses. Households receive a portion of
 
these sales revenues as wages. Local
 

spending by households creates additional
 

demand that also results in indirect effects among local firms. The business
 

volume created by the production requirements of technologically linked firms-­

indirect demandmcan be distinguished
 

from the "induced" demand created by
 

wages to their employees that are spent
 

locally.
 

If a drugstore is the beneficiary of
 

household demand by a wage earner in the
 

steel industry, this is treated as an
 

"induced" demand. It is not an "indirect"
 

effect of steel production because the
 

"output" of the drugstore is not required
 

in the process of making and selling steel.
 

The essential fact to bear in mind is that
 

industries are only credited with the induced demand created by their own wage bill.
 

Since labor is an input to the production
 

process, it is possible to use interindustry or input-output analysis not.only to
 

identify total local business volume assoimportant factor in attracting tourists,
 

conventions and other business visitors. I
 

stress ’important factor’ for it is quite
 

improper to ascribe to the arts the economic benefits .of visitors who in reality
 

are attracted by entirely different attributes of the urban area--gambling in Las
 

Vegas, the centrality of Chicago, the
 

beauty and sparkling ambience of San Francisco, the monumental structures and government activity in Washington, the business opportunities of Houston and the Twin
 

Citiesmand happen to visit a museum or go
 

to the theater. For the arts themselves
 

to be a powerful attractive factor, they
 

must offer a concentration that is large,
 

diverse and quite unlike the arts available
 

in dozens of other places. And, by this
 

standard, only New York and Los Angeles
 

rate; in other cities, only negligible fractions of the visitors come largely because
 

of the arts as such." (A National Conference on the Role of the Arts in Urban Economlc Development, The Minneapolis Arts
 

Commission, 1978, unpublished remarks).
 

ciated with a sale in any one industry, but Netzer emphasized that if culture is not
 

to estimate as well total jobs and salaries in the other business sectors benefitin~ from this activity. These salaries
 

represent income from sales received by
 

each firm’s employees. Total business
 

volume is then the sum of indirect transactions among firms and the induced local
 

business activity prompted by wa~es res~ent
 

locally by their employees.
 

As part of the six-city study, coefficients
 

based on input-output analysis were used
 

to estimate the indirect and induced business’volume associated with the fiscal
 

1978 local expenditures of the examined
 

institutions, their staff households, and
 

audiences. This approach is based on procedures especially commissioned for this
 

project, reported by David Greytak and
 

Dixie Blackley, in "Multiplier Analysis:
 

Arts and Cultural Institutions" (unpublished monograph, The Maxwell School, Syracuse University, 1980). The component of
 

this business volume devoted to salaries
 

was also identified. Indirect and induced
 

business volume are simply called secondary business volume for the purposes of
 

this study. Since secondary wages represent the portion of secondary business volume paid to local households as wages, the
 

two can be identified separately but are
 

not additive. Included among secondary effects are the costs and revenues to local
 

government.
 

The arts as export earners
 

In discussing the role of the arts as a
 

tourist industry, Dick Netzer has stated
 

the issue in this way: ~ .o.the arts can be
 

a simnificant ex~ort earner bv beinc an
 

the princioal factor in attracting nonresidents, then any sales to these visitors
 

are not export sales. This criterion may
 

be too restrictive as a description of export sales to the arts. However, the approach has policy utility because it focuses
 

attention on the drawing power of the arts
 

as opposed to simply their sales to tourists.
 

It may be proper to attribute economic
 

benefits to the arts and cultural institutions even if their audience was drawn to
 

the community for noncultural reasons.
 

These persons may have incurred an admission cost representing money that would
 

not have spent locally at all if it had
 

not been spent on the arts. For these
 

visitors, culture is not a substitute for
 

some other equally attractive local activity. Further, even when not solely responsible for tourist visits, the availability of arts and cultural activities
 

may act as an additional inducement to
 

visit, perhaps increasing the number of
 

visits or length of stay. In these circumstances, the availability of culture acts
 

as an additional inducement to visit,
 

allowing for other local sales as well.
 

The accurate description of arts export
 

sales aside, the essential oolicy question
 

is whether the arts create a market by
 

drawing visitors to the community or respond to a visitor market created by other
 

community advantages.
 

Restrictive mrotocol. Audience spending
 

estimates were based, as in some other economic impact studies, on an analysis of
 

self-administered questionnaires asking the
 

resmondent to renort actual or planned ex17
 
penditures in several general categories-­ reason for their beinc in the community. ~
 restaurant, bar, hotel, motel, and public
 

transportation. Other studies have attrib-
 Since examined institutions do not constiuted to cultural institutions the spending
 tute a probability sample, it would be
 of all visitors in their audiences inclu­ inappropriate to generalize in a statisti­ ding those in the citv for reasons other
 cal sense from them to the broader universe
 than cultural attendance. This study, how-
 of cultural institutions. This is especial-
 ever, adopted a protocol which limited
 ly true because institutions, even instit­ visitor s~endina that might be credited as
 utions of the same type, vary widely. It
 an impact of culture.
 is clear, however that many cultural activities are capable of creating a visitor
 Vor the murDose of this analysis, all vis-
 market on their own and that they apparent­ itor admission payments to institutions
 ly respond as well to demand bv visitors
 were counted inasmuch as they are income
 who are in the community for o[her than
 to the institution. However, it seems
 cultural reasons. ~ Of the nearly 7.2 mil-
 inappropriate to attribute to the arts and
 lion in total audiences in the six cities,
 cultural institutions the ancillary spend­ 20 percent, or 1.4 million, were visitors.
 in~ of visitors who are in the community
 Nearly 300,000 were sole-reason attenders
 for noncultural reasons but, once there, in six cities because thev came specific-
 decide to use the available culture. City
 ally for cultural reasons~
 studies therefore attribute to the arts
 

and cultural institutions the ancillary
 The variations within cities are due to a
 spending of visitors who report that they
 number of factors. The extremely high per-
 were drawn to the community solely because
 centage of visitors in Springfield aud­ of their interest in one of the examined
 iences reflects the inclusion of the Old
 cultural activities.
 State Capitol and the Art Collection,
 

Illinois State Museum. These ma]or tourist
 This protocol may be viewed as conserva­ attractions accounted for 78 oercent of
 tive. It does not, for example, credit
 total audiences and 97 percent of visitors.
 arts and cultural institutions with the
 In 5an Antonio, the Witte Museum and the
 ancillary expenditures of persons who ex-
 Museum of Transoortation account for the
 pected to attend although this was not the
 bulk of visitors. In al! cities, the in­ sole reason for the visit.
 clusion of other institutions would no
 

doubt have affected the visitor and local
 This approach has a dramatic effec~ on the
 audience mix.
 volume of tourist spendinq attributable to
 

the examined institutions by severely re-
 The data indicate that museums in the six
 stricting the number of visitors counted.
 cities have a considerably higher propor-
 In addition, the protocol excludes the
 tion of their visitors from outside t~e
 larger-spending group of culture audiences
 region than the performinc arts, ranging
 who were in the community for other reasons
 from 10.9 percent to 80.7-nercent. Non-
 and who tend to stay for a night or more.
 local performing arts audiences were al-
 T~us, the protocol can sharply limit the
 most always under I0 percent of the total.
 counted volume of visitor spendinm attributable to individual institutions~ The
 Among visitors, there was great variation
 magnitude of this effect is a function o~
 among the institutions in the percentage
 the size of the audience and the propor­ who had expected to attend when making
 tion of sole-reason attenders. The pro-
 plans to come to the community. At art,
 tocol especially affects the museums in
 science, and history museums or facilities,
 the sample, several of which reported a
 this ranged from 25.3 percent to 70.4 per-
 large volume of nonlocal attenders, pro-
 cent of visitor audiences. At performing
 portionately few of whom were in the city
 arts groups the range was from 35.3 per-
 solely to use the museums. Consequently,
 cent to 91.7 percent of visiting audiences.
 the effect of the protoco! on each citv’s
 Attending performing arts events generally
 case study is sicnificantly affected b~
 requires more advance Dlanning than other
 the nromortion of museums in the mix o~
 cultural activities. ~ong v~sitors for
 ~nsr~tutions they chose to examine.
 whom attendance at the institution was their
 

sole reason for being in the community,
 Results of audience surveys. As Dart of
 the performing arts had a higher percen­ <he case studies, self-administered aud­ tage than the museums. Again, there is
 ience surveys were conducted at each insti­ tremendous variation by inst±tution so that
 tution. This effort resulted in approx­ there are as few as 6.i percent and as many
 imately thirty thousand responses. Non-
 as 88.5 percent of sole-reason visitors in
 local audiences in the SMSA were asked to
 performing arts audiences.
 remort whether they had anticinated attending the surveyed activity when they
 

made their Dlans to come to the city. They
 Factors affectinc drawinc power. Data on
 were also asked whether, this was th~ sole
 nonlocal visi~ audiences suggest wide
 

18
 
 

variations in drawing power among individual activities, whether they are viewed
 

as attractions that contribute to a decision to visit a region or as activities
 

used once a visitor is in the community.
 

Institutions vary in type and quality; they
 

may be sold out to local audiences or may
 

not.be well known outside their community;
 

some may not be conveniently located to the
 

general public and centers of visitor activity. The cost of admission will vary
 

as will the ease with which tickets may be
 

purchased. Museums, for example, may be
 

omen daily and admission may be free, while
 

certain performing arts activities may be
 

high priced, with tickets available only at
 

the box office or by subscription, and
 

there may be only a few performances a
 

year. In these circumstances, nonlocal
 

audiences could not attend unless they
 

planned ahead.
 

Culture and central cities. Although these
 

studies are intended to identify effects
 

on the entire U.S. Bureau of the Census
 

Standard Metropolitan Statistical Area or
 

SMSA, economic development practitioners
 

in central cities may have a special interest in their findings. The examined events
 

and facilities were typically located in
 

the central city. In addition to visitors
 

from outside the SMSA, these activities
 

regularly bring thousands of suburban residents back to the city and can help draw
 

people to redeveloped downtown and neigh-


Table I-1 

Columbus
 

Minneapolis/
 

St. Paul
 

St. Louis
 

Salt Lake City
 

San Antonio
 

Audience per capita spending 

Local and 

nonlocal Total 

(sole reason) audience 

$ 3.83 $ 9.34
 

$ 4.35 $ 8.65
 

$ 3.44 $27.53
 

$ 3.56 $ 9.76
 

$ 5.66 $27.52
 

Springfield $ 4.65 $14.21
 

Table I-i indicates the range of values
 

produced by these two procedures. As the
 

more detailed audience spending tables in
 

individual city chapters show, museums
 

particularly benefit from procedures that
 

count all expenditures by all visitors
 

because of the lower incidence of sole-


reason visitors to museums.
 

borhood areas. This may help maintain mar- Questions may~ be raised also regarding lokets for other city businesses and create 


an urban environment attractive to residents and visitors alike.
 

Estimated audience spending. Tables presentlng audience summary data are found in
 

each of the six city chapters. The effect
 

of the protocol discussed above is especially significant in St. Louis. While all
 

nonlocal attenders there are estimated to
 

have spent $74.8 million, sole-reason visitors reported spending only $1.3 million.
 

Across all six cities, the figures are
 

$132.8 million and $7.3 million. In short,
 

the protocol eliminates over $120 million
 

in audience spending, over half of which
 

is accounted for by the St. Louis study
 

alone.
 

By including total spending incurred by
 

visitors during their stay, it is possible
 

to derive differing audience spending estimates depending on the protocol adopted.
 

For example, using as a base the ancillary
 

spending reported by local audiences, it
 

is possible to derive two radically different estimates of ver capita audience
 

spending, depending on whether ancillary
 

spending by all visitors is included or
 

only spending by sole-reason visitors.
 

cal audience spending. It may be argued
 

that here, too, the only audience effects
 

traceable directly to an institution are
 

audience payments for admission. If-audience members happen also to go to a bar
 

or restaurant, it is not clear how this
 

is tied to the operation of the institution
 

as a direct, indirect, or induced effect.
 

A looal resident might have gone to the
 

restaurant even if he had not gone to the
 

arts event. To claim that these ancillary
 

expenditures are an impact of cultural institutions appaars to suggest that attending an activitV causes the audience to
 

spend over and above their admission cost.
 

At issue is whether audience members would
 

have spent the money in the SMSA even if
 

they had not attended the activity.
 

In the city studies, ancillary spending by
 

local audiences and sole-reason visitors
 

was included among the direct effects attributed to the examined institutions.
 

19
 
 

Table I-2 Direct economic effects of examined institutions 

Columbus Minneapolis/ 

St. Paul St. Louis 

Local expenditures for 

goods and services 

Employee salaries and 

wages 

Local audience spending 

Nonlocal, sole-reason 

audience spending 

Guest artist spending 

$1,525,012 

$2,045,981 

$1,669,070 

$ 964,368 

$ 132,390 

40% 

32% . 

26% 

15% 

2% 

$ 7,335,778 

$10,852,362 

$ 7,339,916 

$ 2,967,612 

$ 104,223 

26% 

38% 

26% 

10% 

--­

$ 5,248,714 

$ 7,652,004 

$ 6,600,197 

$ !,290,134 

$ 119,576 

25% 

37% 

32% 

6% 

Total $6,336,821 100% $28,599,891 100% $20,910,625 100% 

Institutions 

Attendance 

Operating budgets 

Local expenditures 

6 

698,920 

$4,249,182 

$3,570,993 

i0 

2,765,448 

$21,787,947 

$18,188,148 

8 

2,503,500 

$13,922,589 

$12,900,718 

2O
 
 

Direct and secondary economic effects
 

Direct economic effects by city. Table I-2
 

presents direct economic effects for the
 

institutions examined in each city. It is
 

imoortant here to reemphasize that the
 

forty-nine institutions are not a scientific and weighted samvle of various types
 

of cultural institutions. Effects might
 

have been significantly different had
 

sponsors selected a different mix of local cultural resources. The examined institutions are best viewed as illustrative
 

of the range of differences within and
 

among institution types. They help also
 

to illuminate essential factors that determine the local impact of the arts.
 

Institution-related local expenditures.
 

The forty-nine institutions had total attendance of 7.2 million and operating budgets totaling $51 million of which 51
 

percent or $26.1 million was devoted to
 

local salaries and wages. An additional
 

$17.3 million or 34 percent of total expenditures was spent locally for goods and
 

Salt Lake City San Antonio
 

$1,804,405 30% $ 940,226 25%
 

$3,115,024 51% $1,485,402 40%
 

749,467 12% $ 692,722 19%
 

381,491 6% $ 585,469 16% 

3 ,11o --- $ 32,224 

$6,080,497 100% $3,736,043 100%
 

5
 

348,772 467,350
 

$6,104,073 $3,041,073
 

$4,919,429 $2,425,628
 

10
 

services. Overall, some 85 percent or
 

$43.4 million of total operating expenditures were spent locally for goods, services, and wages.
 

Local and visitor audiences at the institutions spent $17.5 million and $7.3 million respectively, representing 25 percent
 

and ii percent of total local expenditures
 

of $68.7 million. (Local expenditures for
 

goods and services were 25 percent of total local expenditures while local salaries and wages comprised 38 percent of
 

local spending.) Guest artists spent
 

$472,974, less than 1 percent of total
 

local expenditures.
 

The magnitude and weight of an individual
 

direct effect either by city or across
 

cities reflects the impact of individual
 

institutions. Two institutions in Spring-


field--the Illinois State Museum an~ the
 

Old State Capitol--are particularly influential with respect to the magnitude
 

and impact of nonlocal sole-reason audience
 

spending, and account for virtually all
 

such spending in Springfield.
 

Springfield Total
 

$- 396,654 13% $17,250,789 23.8%
 

$ 9,~i,461 33% $26,132,234 38.5%
 

$ 431,526 14% 517,482,898 21.5%
 

$i,133,727 38% $ 7,322,S01 15.2%
 

$ 54,451 2% $ 472,974 2.0%
 

$2,997,819 100% $68,6~I,696 100.0%
 

10 49
 

410,411 7,194,401
 

$1,912,786 S51,017,650
 

$1,378,115 $43,393,031
 

21
 
Simple indicators of institution impact.
 

For the group as a whole, the ratio of
 

total direct effects to total operating
 

expenditures was 1.34 while direct effects
 

totaled roughly $9.54 per attender. However, inspection of the data at the institution level reveals the danger of such
 

simple indicators of institution impact.
 

For example, organizations with respectable budgets but low attendance can have
 

a relatively high impact per attender. A
 

more interesting measure is simply the
 

ratio of total direct e~fects to total operating revenues. This measure ignores
 

size of institutional budget and rewards
 

local institutional spending, local audience size and spending, especially attendance and spending by sole-reason visitors.
 

Because this emphasizes sole-reason visitors, it penalizes museums.
 

This ratio for the mix of institutions in
 

each city is presented below. Springfield
 

benefits from tourist spending at the
 

sites noted earlier. 

Columbus 1.49 

Minneapolis/St. Paul 

St. Louis 

1.31 

1.50 

Salt Lake City 

San Antonio 

.99 

1.23 

Springfield 1.57 

The ratio for Salt Lake City reflects the
 

relatively small size of audiences and the
 

limited number of sole-reason visitors
 

(as compared to the institutional mix
 

identified in other cities).
 

Influences on direct economic effects
 

An institution’s direct effects as defined
 

in this report are essentially an expression of the size of its own operating budget, the percentage of it spent locally,
 

and the magnitude of sole-reason visitor
 

and local audience spending. The inclusion of audience spending and the restrictive protocol adopted for local and visitor audiences can have a significant impact on any single institution’s direct
 

effects.
 

Local spending by examined institutions.
 

As is evident from Table I-2, institutions
 

in all cities were able to meet a high
 

proportion of their operating needs locally, principally because the bulk of
 

their operating budget was devoted to local salaries and wages. This table contains the information necessary to determine for each city the proportion of total operating budgets devoted to local
 

expenditures for salaries and wages and
 

goods and services.
 

Subsidy support. The institutions examined in this study are either nonprofit corporations or government agencies. Consequently, budget size reflects not only
 

revenues earned in the marketplace but
 

the ability and wi!lingness of individuals,
 

firms, and government to provide subsidy
 

support. The history, patterns, and practice of such support vary by city. Subsidy
 

support is particularly important to museums and other facilities which offer free
 

admission and rely on "unearned" income
 

for the bulk of their operating budget.
 

There were some performing arts institutions in the sample, however, for which
 

subsidy, especially government support,
 

was the single largest source of revenue.
 

The ability of an institution to produce
 

income reflects regional market conditions
 

and the availability of public and private
 

support. Presumably, these factors are
 

responsive to the quality of an institution’s programming and management.
 

Because of the importance of revenues to
 

government that are attributable to cultural institutions, which are among the
 

secondary effects to be discussed, the extent to which an institution’s local
 

spending represented a return to the community of local, state, or federal tax
 

revenues was identified. Table I-3 gives
 

this data by city. Again, the results for
 

each city reflect only the examined institutions and may not represent the entire
 

universe of local nonprofit cultural resources.
 

As noted previously, aggregate data by
 

and across cities can be distinctly influenced by individual institutions. Once
 

again, the Springfield data reflect the
 

inclusion of the Illinois State Museum and
 

the Old Stat@ Capitol which are state
 

funded and account for 81 percent of reported operating budgets, in San Antonio,
 

the Carver Cultural Center is almost completely funded through local appropriations. In St. Louis, the Museum of Science
 

and Natural History, McDonnell Planetarium,
 

and the St. Louis Art Museum are subdistricts of the Metropolitan Zoological Park
 

and Museum District which assesses a prooerty tax for their support in St. Louis
 

City and County. Tables in the individual
 

city chapters present data on tax revenues
 

and sources for each institution.
 

For the group of forty-nine institutions
 

as a whole, eleven derived 40 percent or
 

more of operating revenues from governmental sources, nine derived 20 percent to
 

40 percent, six derived i0 percent to 20
 

percent, fifteen derived less than i0 percent, and three reported no income from
 

government; data were not available on the
 

other institutions. These data do not include an accounting of federally-funded
 

CETA positions.
 
Table I-3 Government revenues as a percentage of examined institutions’ operating budgets 

Local
 

s~ L~e city 6.3~ 

S~ ~tonio " ’ .... ~ 26.5% 

springfield i. 2 % 

Secondary economic effects
 

Earlier in this overview a basic definition was given of interindustry analysis
 

as a tool for identifying other than direct effects of spending by households and
 

firms. As part of. the city case studies
 

coefficients and multipliers derived from
 

interindustry studies have been used to
 

estimate indirect and induced business
 

volume, personal income, and jobs. For
 

the purpose of this study, these are referred to as secondary effects. While
 

study procedures allow an estimate of these
 

effeets, it cannot be inferred that none
 

would have occurred in the absence of one
 

or more of the specific institutions examined as part of this study.
 

In addition to secondary business volume,
 

income, and jobs, the study sought to estimate the initial expansion of the local
 

credit base due to bank deposits held locally by the institutions, their employees,
 

and the local businesses benefiting from
 

institution-related direct effects. Each
 

examined institution and its employees
 

provided estimates of average daily balances in checking and savings accounts. Local cash-to-business volume ratios were used
 

to estimate cash held by firms benefiting
 

from institution-related expenditures.
 

Area firms benefiting from institution-


related direct effects have, over time,
 

invested in the plant, inventory, and
 

equipment needed to support this business
 

volume. To estimate the fiscal 1978 value
 

of these investments in business property,
 

it was first necessary to estimate the
 

total value of all local business property.
 

23
 

State Federal Total 

2.2% 

3.1% 

7.8% 

14.0% 

.2% 

76.7% 

2.9% 

,3.6% 

5.8% 

i1.5% 

8.7% 

2.7% 

7.2% 

7.1% 

37.8% 

31.8% 

35.4% 

80.6% 
 

 

Business real property associated with institutional direct effects was assumed to
 

be proportional to institutional direct
 

effects as a percentage of total local
 

fiscal 1978 business volume in each city.
 

Table I-4 presents estimates of each of
 

these secondary effedts discussed earlier.
 

(This does not include salaries and jobs
 

at the examined cultural institutions.
 

The forty-nine institutions provided 1,618
 

full-time employment opportunities paying
 

$25,132,234 in salaries and wages.)
 

Influences on secondary economic effects
 

The principal influences on secondary business volume, jobs, and income are the magnitude of direct effects and local requirements of the local industries that benefit.
 

It has already been pointed out that multiplier estimates will vary inversely with
 

the volume of imports of goods, services,
 

and labor, and other forms of leakage; and
 

that the more the local economy can supply,
 

the greater the proportion of local direct
 

effects retained and respent locally.
 

Institution-related effects on the local
 

credit base are a function of the number
 

of employees, their household incomes and
 

cash management practices, together with
 

institutional practices regarding time and
 

demand accounts. These varied widely. Estimates of the current value of backup inventory, equipment, and property vary directly with local estimates of the value
 

of business property and the ratio of the
 

Table I-4 

direct effects for each city to total local business volume.
 

Government revenues and costs
 

In addition to estimating the direct and
 

secondary effects discussed earlier, this
 

study sought to identify selected fiscal
 

1978 effects on local governments attributable to the examined institutions.
 

Revenues to local governments included
 

local real estate taxes paid by the examined institutions and their employee
 

households, and a portion of business property taxes attributable to institution-


related direct effects. Other examined revenue sources included local sales and income taxes, lodging and gasoline taxes,
 

admission taxes, and parking revenues. In
 

each case study, real estate taxes accounted for the greatest portion (47 percent
 

and 76 percent) of loca! government revenues related to the examined institutions.
 

In Columbus and Minneapolis/St. Paul, about
 

50 percent of these property tax revenues
 

are attributed to assessments over time by
 

businesses responding to institution-related
 

direct effects. The proportion for Springfield is 30 percent, and for Salt Lake City
 

21 percent. Cities varied in terms of the
 

relative importance of other estimated revenue sources. Two SMSAs assessed a local
 

income tax, one assessed a restaurant tax,
 

one assessed an admission tax, while sales
 

tax estimates across cities varied by taxable items and rates.
 

Secondary economic effects of examined institutions 

Institutions
 

Business volume
 

Personal income
 

Full-time jobs
 

Initia! expansion of the
 

local credit base
 

Current value of back-up
 

inventory, equipment,
 

and property
 

Columbus
 

$10,539,968
 

4,044,301
 

574
 

$ 3,221,487
 

$ 4,442,864
 

Minneapolis/
 

St. Paul
 

i0
 

$57,211,537
 

$21,720,604
 

3,053
 

$ 6,849,136
 

$15,837,042
 

Salt Lake
 

St. Louis City
 

i0
 

$42,246,030 $9,978,282
 

515,899,168
 $3,876,184
 

2,005
 

$ 6,058,120
 $2,970,735
 

$12,445,444
 $2,408,853
 

24
 

631 
 

Costs to local governments included an estimate of the local governmental operating
 

expenditures required to provide services
 

to employee households, including the costs
 

of public instruction for households with
 

children in public schools. Local government contracts for services, grants, operating subsidies and other support were
 

also identified. Study procedures apportioned to all employee households a share
 

of local governmental operating expenditures in all areas except public education.
 

Separate cost estimates were derived for households with children in local public schools.
 

Table I-5 summarizes local revenues and expenditures attributable to examined institutions in the six cities. Amore complete
 

picture of these effects, including their
 

variation from institution to institution,
 

can be gained by examining Table 9 in each
 

city chapter. No information is available
 

which indicates whether the identified effects are typical of the broader universe
 

of local institutions or are specific to
 

the examined mix of institutions.
 

In reviewing them, bear in mind the limited
 

nature of the analysis and the procedures
 

used to derive estimates when this was
 

necessary. Sales, income, and property
 

tax estimates do not include taxes paid by
 

individuals and firms benefiting from institution-related secondary effects. In
 

addition, favorable~or unfavorable spillover effects on local business opportunities and stability have not been assessed,
 

San
 

Antonio
 

49
 

$6,185,327 $3,223,011 $129,380,000 

$2,345,260 $1,3i6,946 $ 49,202,463 

347 161 6,771 

$ 862,529 $ 901,705 $ 20,863,712
 

$1,044,720 $ 1,643,852 $ 37,822,775
 

25
 

Table I-5 Estimated revenues and costs 

to local government

related to examined institutions 

by city 

City Revenues Costs 

Columbus $ 381,251 $ 245,349 

Minneapolis/ 

St. Paul $2,135,340 $1,146,525 

St. Louis $i,i17,059 $3,987,435 

Salt Lake City $ 405,680 $ 635,590 

San Antonio $ 126,083 $ 859,749 

Springfield $ 187,581 $ 110,867 

nor has neighborhood residential quality
 

as it affects property and other tax revenues. More generally, no attempt has been
 

made to assess the governmental costs and
 

benefits assoc±ated with the more subtle
 

and indirect effects that may be associated with the arts. In addition, no information is available by which to assess
 

whether the identified effects are typical
 

of the broader universe of available local institutions or are specific to the
 

examined mix of institutions.
 

Procedures focused on sources of locally
 

generated revenues, including sales,
 

come, and property taxes, and parking and
 

other apporpriate local revenues sources.
 

Property tax revenues were the single
 

largest revenue source in each city. Property tax receipts as a percentage of estimated tax revenue are presented below. 

Columbus 58% 

Minneapolis/St. Paul 69% 

St. Louis 61% 

Salt Lake City 76% 

San Antonio 47% 

Springfield 57% 
 

 

 

 

In Columbus and Minneapolis/St. Paul, about ~ help shade decisions regarding goals, and
 

50 percent of these property tax revenues the programs best suited to achieve them.
 

are attributable to investments over time b~ The development of policy is as much a
 

businesses responding to institution-re-


fated direct effects. The proportion for
 

Springfield is 30 percent, and for Salt
 

Lake City 21 percent. Cities varied in
 

terms of the relative importance of other
 

estimated revenue sources. Two SMSAs assessed a- local income tax, one assessed a
 

restaurant tax, one assessed an admission
 

ta~, while sales tax estimates across cities and cultural advocates were posing such
 

varied by taxable items and rates, questions: "Our interviewees repeatedly
 

noted the need for studies of the economlc
 

Foregone property tax. Finally, the exam-
 impact of the arts, in connection with ad­ ined institutions include a mix of facili­ vocacy, in the sense of demonstrating that
 ties owned and operated either by government or nonprofit corporations, and therefore are tax-exempt. In several cities,
 

the lack of assessed valuation data and
 

other limitations made it impossible to
 

derive estimates of foregone property taxes.
 

Simple indicators of tax effects. For
 

reasons noted in the earlier discussion
 

of simple indicators of institution impact,
 

it is dangerous to present such indicators
 

that do not take account of differences
 

across institutions. It is interesting to
 

note, however, that when institutions are
 

aggregated, tax revenue estimates as a percentage of total institutional operating
 

expenditures are similar across cities:
 

Columbus 

Minneapolis/St. Paul 9% 

10% 

St. Louis 

Salt Lake City 8% 

7% 

San Antonio 4% 

Springfield 10% 

Effects not examined 

This report has treated arts and cultural
 

institutions quite narrowly by focusing on
 

activities considered simply as local economic enterprises. This focus may not
 

capture the tota! range of benefits to
 

local residents. It has been observed
 

that cultural institutions have a role in
 

economic development apart from the economic activity directl~ related to their
 

o~erations; that their availability affects
 

the <erceDtions, satisfactions, an~ resulting behavior of households and firms,
 

including decisions to locate in the community or remain and expand. Arts and
 

other facilities may be useful in helping
 

to create surroundings attract!ve to tourist and convention visitors, ro establish
 

a climate in which the decision to locate
 

or remain in the inner city, city, or
 

re~ion is viewed favorably.
 

Policy observations
 

Data take on policy significance when they
 

answer questions of public interest and
 

matter of asking the right questions as
 

of compiling the quality data needed for
 

answers. In an unpublished report to the
 

Arts Endowment’s Research Division, Dick
 

Netzer made the following assessment of
 

the policy significance of available economic impact literature, an assessment
 

based on his understanding of how arts


public expenditure for support of the arts
 

is a ’good buy.’ It is virtually impossible
 

to think of any other conceivable use of
 

data of this type, data that are expensive
 

to produce . . " (Final Report on a Feasibility Study for an Economic Data Program
 

on the Condition of Arts and Cultural Organizations, New York: New York University,
 

1977). Netzer’s analysis presumes that
 

these advocates are, in effect, utilizing
 

impact studies to assess the cost/benefit
 

of governmental appropriations funneled
 

through the arts and culture.
 

It is presumed that the question of cultural economic impact is framed as follows:
 

In general, do public dollars devoted to
 

culture have more impact than public money
 

spent for other purposes? Advocates are
 

aware that some decision-makers believe
 

culture is a "drain" on the local economy
 

and have concluded that this is a stumbling
 

block to increased appropriations.
 

For example, among the press reports accompanying the release of the. Salt Lake
 

City case study was an article headlined
 

"Local Arts Spell Big Business." The
 

 ̄ story quoted a staff member of the local
 

arts council who indicated that the case
 

study "should put a new light on the arts"
 

and went on to say, "It has long been the
 

assumption of certain individuals that the
 

arts are some kind of drain on the city
 

treasury. That expenditures for the arts
 

are justifiable only through an intangible
 

quotient called the ’quality of life,’
 

that the arts are somehow feeding in the
 

trough of public subsidies--subsidies that
 

by implicat±on should be eliminated." {The
 

Salt Lake City Tribune, March 30, 1980).
 

Do appropriations have any economic significance in terms of job~, and income and
 

tax revenues, and is that imDact sufficient
 

to counter the view that the arts are a net
 

"drain" on the local economy? There is
 

the clear suggestion that s~me cultural activities are responsible for as much in tax
 

revenues as they get in aDmropriatlons and
 

that they have noticeable-i{ modest impacts
 
on jobs and income in other sectors of the
 

economy. Further, it is clear that cultural programs can serve both residents and
 

visitors in a metropolitan area. Cultural
 

activities may sometimes be solely responsible for inducing persons outside metropolitan areas to make day and night trips.
 

It may be assumed that even when cultural
 

organizations are not solely responsible
 

for these visits, they may often be one
 

among other planned activities, and so may
 

directly contribute to increasing the number of audience visits.
 

At the same time, it is also clear that
 

the nonprofit institutions examined in this
 

study are small businesses that sell the
 

majority of their "output" to local residents. It is interesting in this vein to
 

note a commercial parallel, that the gross
 

sales of an average McDonald’s restaurant
 

unit totals on the average some $i million
 

annually. This is considerably larger than
 

the annual budgets of most nonprofit cultural activities. In the context of loca!
 

business volume, the examined institutions
 

have a relatively modest impact, even taking into account spending by local audiences
 

and visitors. Further, there is tremendous
 

variability among institutions and inherent
 

constraints on expanding the impact of cultural institutions considered simply as ­

local economic enterprises.
 

There are many ways to express the question
 

of economic impact. Rather than valuing
 

cultural activities simply as economic
 

enterprises in their own right, they could
 

have been investigated as tools for achieving specific development objectives. In
 

these circumstances, the decision makers
 

p~sing the economic impact question are
 

not legislators, but community development
 

agencies determining whether cultural activities have any value for their noncultural purposes.
 

This point of view may be particularly important to persons concerned with community
 

revitalization as opposed to regional economic growth. In their own right, cultural
 

activities may be only modestly important
 

as generators of business activity within
 

an SMSA. However, they may have considerably more importance for place-specific objectives. These objectives may not be expressed in terms of increasing net economic
 

benefits to the region, but devoted instead
 

to improving the distribution of economic
 

activities and investments to assure the
 

revitalization of places within the region.
 

These revitalization objectives may be expressed in terms of outcomes, e.g., the retention and attraction of firms and households, as well as in terms of the attitudinal and satisfaction dimensions that are
 

thought to induce behaviors relevant to the
 

process of community revitalization.
 

27
 

Caveats on merging cultural and economic
 

development planning. One concern during
 

the Baltimore research, discussed previously, was the potential misuse of economic
 

impact data in the development of cultural
 

policy. Programs might be favored on the
 

basis of the scale of their own direct and
 

secondary effects on the local economy. If
 

decision makers are encouraged to treat
 

investments in cultural activities because
 

they solve particular economic development
 

problems, the risk occurs of defining development objectives solely in terms of
 

short-run community revitalization goals.
 

In providing this analysis of the economic
 

effects of a sample of cultural activities,
 

it is not advocated that impact data are
 

to be used as important determinants of public policy toward arts and culture, especially in the absence of support of arts and
 

culture for their own sake.
 

The need for additional research. The cultural institutions examined in this study
 

are either nonprofit corporations or government agencies. They encompass the various
 

types of museums and performing arts activities that are the typical focus of advocacy efforts. However, the bulk of the
 

nation’s literary, visual arts, musical
 

and performing arts output is produced by
 

commercial enterprises.
 

Apart from additional questions concerning
 

the economic impact of the culture industry,
 

however it is defined, it is evident that
 

an adequate framework within which to evaluate the more indirect and subtle effects
 

claimed for cultural activities does not
 

exist. Preliminary work suggests that
 

further examinations of cultural impact
 

will require understanding the success of
 

an arts or cultural activity in its own
 

terms and how this reflects other aspects
 

of community life while contributing to
 

specific objectives.
 

~A willingness, for example, to invest in a
 

community’s cultural life will be determined by a variety of matters ranging from
 

historical and social factors to property
 

taxes, the (perceived) safety of a neighborhood, the availability of investment
 

capital, current energy and mortgage related market pressure, special city inducements to invest, changes in family
 

size and structure, suburban no-growth
 

policies, and so forth. Cultural effects
 

may vary with the quality and frequency
 

of activities. It may prove impossible
 

to develop economic models specifying the
 

community conditions under which particular levels and quality of cultural, output
 

are not only feasible but likely to achieve
 

economic development objectives. The abi!­

ity to anticipate development outcomes and
 

the imagination to use arts and culture
 

effectively in a community context may always be more art than science.
 
 

CHAPTER II
 

THE COLUMBUS ECONOMY AND
 

ARTS AND CULTURAL INSTITUTIONS
 

The following institutions in the Columbus
 

Standard Metropolitan Statistica! Area or
 

SMSA were selected for study by the Greater
 

Columbus Arts Council:
 

Ballet Metropolitan
 

Columbus Museum of Art
 

Columbus Symphony Orchestra
 

Center of Science and Industry
 

Players Theatre of Columbus
 

Columbus Association for the
 

Performing Arts (Ohio Theatre)
 

These represent a range of organizational
 

types and include some of the more well-


known local institutions. Their selection
 

resulted from locally initiated efforts
 

to identify interested organizations.
 

The successful completion of the Columbus
 

project was due to the efforts of a number of persons, including the principal
 

project staff of the Arts Council. Ric
 

Wanetik, executive director of the Council,
 

served as study director and Tim Sublette,
 

assistant director, was responsible for
 

coordinating the day-to-day tasks. Jackie
 

Brown, program associate, assisted in the
 

collection of operating and financial information. A corps of students recruited
 

through the high school art leagues helped
 

in the distribution of audience studyquesti~nnaires. Other staff persons and volunteers are identified at the end of this
 

report.
 

Columbus institutions
 

In 1878, a group of Columbus citizens decided that the city should have a place
 

in which to enjoy the visual arts. By the
 

turn of the century, an art school had
 

been organized and funds raised to house
 

an art gallery. The main building was
 

built in 1931, and a new wing opened in
 

1974. The Columbus Museum of Art (formerly the Columbus Gallery of Fine Arts)
 

houses a broad selection of paintings and
 

sculpture augmented by decorative and
 

ethnic arts objects. Lectures, classes,
 

films, and concerts are available to the
 

public.
 

The Columbus Association for the Performing Arts, formed in 1969, has restored
 

the former Loew’s and United Artists Ohio
 

Theatre, built in 1928, as a performing
 

arts center. In addition to performances
 

by the Ballet Metropolitan and the Columbus
 

Columbus ~ 

Standard Metropolitan 

Statistical Area (SMSA) 

[~ DELAWARE 

MADISON 

PlCKAWAY 

Based on U.S Oepl. of Commerce. Bureau of lhe Census,
 

Current Population Reports, Se ries P-26
 

Symphony Orchestra, the Ohio Theatre hosts
 

performances by Broadway touring shows,
 

various ethnic dance companies, jazz concerts, and movies, as well as performances
 

by many local artists and groups.
 

Players Theatre was formed as a club in
 

1923. In 1966, the theatre opened its
 

doors to the public and now produces plays
 

for adults and children, as well as offering classes and workshops. This community
 

theatre now produces six to eight major
 

productions each season.
 

Ballet Metropolitan was incorporated as a
 

club in the State of Ohio as a nonprofit
 

organization in September 1974. Ballet
 

Metropolitan presents classic and modern
 

programs; sixty-three performances were
 

planned for the 1979-80 season.
 

The Center of Science and Industry opened
 

to the public in April 1964, and is a part
 

of the Franklin County Historical Society.
 

The center’s exhibitions are primarily in
 

the fields of science, health, history,
 

and industry.
 

The Columbus Symphony, which was founded
 

in 1952, presents concerts of classical,
 

chamber, ensemble, choral, operatic, and
 

popular music. The symphony also presents free or low-cost public service
 

events for the community.
 

29
 
 

 

 

Table II-1 Columbus SMSA demographics 

Age (1977) 

18-24 

15.9% 

25-34 

16.8% 

35-49 

16.1% 

50 and over 21.7% 

Median age 27.7 

Columbus economy and the broader cultura!
 

conununity
 

An examination of the economy and broader
 

cultural community of the city and Columbus SMSA will contribute to an understanding of the effects ascribed to the six
 

examined institutions. Table II-I presents
 

useful market data such as the Effective
 

Buying Income (EBI), a measure of the buy­

- ing power of households after government
 

deductions for taxes, social insurance,
 

and lesser items; it also shows income,
 

age, education, and population information.
 

The Columbus SMSA consists of the city of
 

Columbus and the counties of Franklin]
 

Fairfield, Delaware, Pickaway, and Madison.


In this study the terms "local, ....


umbus metropolitan area," and "the Colum­ the Co!­

bus region" are used interchangeably to
 

identify the Columbus SMSA. The SMSA population is estimated to have grown from
 

1,017,847 in 1970 to 1,072,00 in 1976
 

("Population Estimates and Projections,"
 

U.S. Dept. of Commerce, Census Bureau,
 

Series P-25, No. 739, November 1978). The
 

City of Columbus is estimated to have a
 

population of approximately 530,000.
 

Columbus was established in 1812 as a
 

planned political center by an act of the
 

Ohio legislature. The city became the
 

capital of Ohio in 1816, a~d later the
 

seat of Franklin County. Today, government plays an important role in the eco-


Education (1970)
 

Less than 5 years ~
 ,.7%
 

4 years of high school or more
 

60.7%
 

4 years of college or more
 

14.0%
 

Median education
 

nomic stability of the Columbus SMSA,
 

accounting for over 19 percent of employment ("Central Ohio: 79 Outlook,,, Columbus
 

Business Forum, Columbus Area Chamber of
 

Commerce, January 1979). The State of
 

Ohio employs over twenty thousand area residents not including Ohio State University


which employs 16,241 people.
 

The federal government (excepting the armed
 

forces) employs over eleven thousand; the
 

City of Columbus approximately 7,500; the
 

Columbus Public Schools over seven thousand;
 

and Franklin County roughly 4,500.
 

The largest private employers are Western
 

Electric; F & R Lazarus Company; Sears Roebuck and Company; and Ohio Bell Telephone
 

Company, each of which employed over five
 

thousand workers. The Fisher Body division
 

of General Motors Corporation, Nationwide
 

Insurance Co., Kroger Company, and Conrail
 

each employed over three thousand workers.
 

In addition, there were twenty-six firms
 

that each employed between one thousand and
 

three thousand workers. The home offices
 

of fif+v-two ’insurance companies were lo­ cated in Columbus. Overall, 24 percent of
 

the employed work force worked in retail
 

and wholesale trade, 20 percent in manufacturing, and nearly 20 percent in services
 

and miscellaneous industries. (Employment
 

data derived from "Largest Employers in the
 

Columbus Area," Columbus RegiOnal Information Center, Columbus Area ~hamber of Commerce, May 1979.)
 

30
 

12.3 
Population (selected years) Household income (1977)
 

1960 682,962 

1970 1,017,847 

1975 1,068,514 

1977 1,082,100 

Population change 

1960-1970 +20.4% 

1970-1975 +5.8% 

The manufacturing sector of the Columbus
 

economy has undergoge a period of rapid
 

growth and diversification since the establishment of a large aircraft plant in
 

Columbus in 1941. This diversification
 

has included the establishment of major
 

plants specializing in the production of
 

space equipment, automotive parts, electrical equipment and appliances, china-


ware, glass, coated fabrics, shoes, and
 

food products. Rapid expansion has been
 

encouraged by the city’s favorable geographic location and a transportation
 

network which includes five major railroads, an extensive highway network, and
 

an airport, Port Columbus.
 

The Columbus Business Forum .reports that
 

"the movement toward a service-oriented
 

economy is reflected in the opening of
 

several new businesses in areas supporting
 

recreation and tourism, health, and other
 

social services." It reports further that
 

new restaurants are opening, and numerous
 

improvements have been developed, including the Ohio Center convention complex
 

with its companion six hundred-room Hyatt
 

Regency hotel, the three hundred-room Marriott Inn, and the HiltoD Inn East. The
 

Chamber of Commerce believes that these
 

projects have generated new confidence in
 

downtown Columbus as a place to work, shop,
 

and live; the development of downtown as
 

an entertainment and leisure center has been
 

further enhanced by the programs of Columbus arts and cultural organizations.
 

31
 

$8,000-$9,999 6.0% 

$i0,000-$14,999 18.0% 

$15,000-$24,999 33.9% 

$25,000 and over 21.2% 

1977 median household income S16,336 

1969 median household income $10,460 

Average annual change in 

per capita income 1969-74 7.2% 
 

 

 

?he examined institutions are Only six of
 

the 170 nonprofit arts and cultural organizations identified by the Greater
 

Columbus Arts Council. Although the examined institutions may typify the imnact
 

of various kinds of ’ -  ̄ ~
 

instltutlons, thev do
 available commercial and nonprofit activ­ not represent the full range of locally


ities. It is clear that the’examined institutions do not exhaust the impact of
 

the "culture industry.,, For example,
 

census data for 1970 show a total-of 2,847
 

employed writers, artists, and entertainers
 

in the Columbus SMSA, excluding individuals
 

employed in art galleries and other arts-


related positions. (2e~r~tl~s~s Live:
 

1977 see list at the back of this remortL
 ~~ Arts,;


Only 123 persons were employed full time
 

at the examined institutions. The yellow
 

pages of the Columbus metropolitan area
 

telephone directory list over one thousand
 

enterprises which can be considered culture-


related in the broadest sense. These range
 

from music, art, and theatrical suppliers
 

to book and record dealers, design firms
 

and commercial photographers. ,
 

Data on the impact of some elements of these
 

additional bus~ness sectors are available
 

Table 11-2 

from the 1977 statlstics in the U.S. Burea~j
 

of the Census County Business Patterns
 

series. Table II-2 details various data
 

on businesses Used by the general public.
 

Direct economic effects
 

The direct economic effects of the examined institutions include local spending for
 

goods and services, salaries and wages to
 

local residents, and expenditures by guest
 

artists and by local and nonlocal audiences.
 

Table II-3 presents selected data on instltutional direct effects during fiscal 1978.
 

~}nstitutional ex~end’


service~~_endl~ures for ~o~a=
 

~xamined i~ .... ~-mate~
 percent of their expenditures for goods
 *~u~uuzlons made 70


and services with local vendors and that
 

this totaled $1,525,012. The percentage
 

of nonlabor expenditures made locally by


the examined institutions ranged from 14
 

percent to 98 percent. An additional
 

$2,045,9@I was spent for salaries and


~,ages to local households. No estimate
 

has been made of the impact of additional
 

earned and other income by institutional
 

employee households, which in some instances was as high as i0 percent.
 

Columbus SMSA selected businesses related to arts and culture 

Businesses
 

Television-radio enterprises 

Music and record stores 71 585 $ 6,184,000 

Bookstores 35 167 $ 1,543,000 

Photography stores 

28 212 5 1,379,000 

Movie theatres (except drive-ins] 

21 85 $ 634,000 

32 

TOtal 

187 

32
 
 

 

 

~au
 Table 11-3 Columbus SMSA estimated direct economic effects of examined institutions 

t 

Total 

Percent 

of total 

direct 

spending 

Single 

Lowest 

institution 

Highest 

Local institution expenditures 

for goods and services $1,525,012 24% $42,800 $618,158 

Employee salaries and wages $2,045,981 32% $54,325 $743,574 

Local audience spending (other 

than ticket price) $1,669,070 26% $61,577 $663,800 

Sole-reason visitor spending $ 964,368 15% $ 5,933 $602,381 

Guest artist spending $ 132,390 2% $ 0 $116,100 

$6,336,821 99% 

33
 
Table 11-4 Columbus SMSA estimated audiences and spending by examined institutions 

Audience 

Nonlocai 

Institution Local Nonlocal 

(sole 

reasonl 

Institution 

total 

Ballet Metropolitan 22,178 3,610 .2,244 25,788 

Center of Science and Industry 159,050 53,016 !3,996 212,066 

Columbus Association for the 

Performing Arts 201,763 47,327 41,832 249,090 

Columbus Museum of Art 71,412 11,625 3,238 83,037 

Columbus Symphony Orchestra 101,670 7,653 5,248 109,323 

Players Theatre of Columbus 18,831 785 412 19,616 

Total 574,904 124,016 66,970 698,920 

34
 
Guest artist spending. Each year, cultural institutions contract with nonresident
 

designers, directors, conductors, featured
 

soloists, and touring groups. These nonresident "guest artists" were reported to
 

have spent a total of $132,390 locally.
 

No attempt has been made to estimate spending by guest artist entourage.
 

Audience spending. Decisions regarding
 

the handling of audience data can have a
 

major impact on economic effect estimates.
 

This study’s conservative approach was to
 

include the ancillary spending of visitors
 

only if attendance at the arts event was
 

their sole reason for oeing in the community. This protocol is discussed in Chapter
 

I. At some institutions, however, sole-


reason visitors are only a small percentage of total visitor attendance and spending. Many visitors indicated that they
 

had planned ahead of time to attend a
 

cultural activity although that was not
 

the sole reason for their visit. Table
 

II-4 presents a summary of audience data
 

for Columbus.
 

A~dience spending 

Local Nonlocal 

Nonlocal 

(sole 

reason) 

$ 63,651 

$ 324,462 

$ 176,592 

$2,593,414 

$ 32,314 

$201,542 

$ 663,800 

$ 195,669 

$ 359,911 

$ 61,577 

$2,315,122 

$ 568,667 

$ 374,366 

$ 38,400 

$602,381 

$ 46,627 

$ 75,571 

$ 5,933 

$1,699,070 $6,066,561 $964,368 

35 
Table 11o5 Columbus SMSA audiences of examined institutions by residence and spending 

Average for
 

all institutions
 

Audience residence
 

In Columbus
 

47.3%
 

Outside Columbus but in SMSA
 35.0%
 

Outside SMSA
 17.7%
 

Audience spending
 

Percent of local audience reporting
 72.0%
 

Per capita spending
 2.90
 

Sole-reason nonlocal audience per
 

capita spending
 $14.40
 

Not sole-reason nonlocal audience
 

per capita spending
 $89.44
 

*Due to small sample sizes, analysis of nonlocal audience
 

data was not conducted by individual institutions.
 

Single institution range
 

Lowest Highest
 

43.9%
 53.6%
 

31.2%
 42.4%
 

4.0%
 24.9%
 

53.0%
 80.0%
 

$2.04
 $3.54
 

___,
 

___,
 

36
 
cultural activities. Persons for whom at-


the SMSA attended the examined institutions
 

An estimated 124,016 visitors from outside
 

tendance at the cultural institutions was
 

during fiscal 1978. They comprised from 4 not the sole reason for visiting the compercent to 24.9 percent of total attendance, munity traveled a mean of sixty-eight miles
 

depending on the institution. Of these and spent $89.44 per capita, totaling
 

visitors, 66,970 are estimated to have vis- $5,102,194. One reason for this large difited Columbus specifically to attend the ference is that in the sole-reason group
 

institutions under study.	 only 5 percent stayed at hotels for a mean
 

of 0.26 nights, whereas in the non-solereason group 19 percent stayed at hotels
 As seen in Table II-5, local audiences
 

spent sums ranging from an average of $2.04 for a mean of 4.06 nights.
 

to $3.54 per nerson for items such as meals
 

and parking. During fiscal 1978, local
 

audiences are conservatively estimated to
 

have spent about $2.90 per capita, or
 

$1,669,070 over and above admission fees.
 

As shown in Table II-6, many other visitors
 

expected to attend while visiting Columbus,
 

but it was not their sole reason. Visitors
 

from outside the SMSA are of special interest inasmuch as their spending represents
 

"new" dollars, money which had not been in
 

the community until that time. Across all
 

examined institutions, nonlocal sole-reason
 

visitors traveled a mean of sixty-three
 

miles and reported per capita expenditures
 

of $14.40, resulting in total expenditures of


$964,368 that can be conservatively attributed to the drawing power of the examined
 

Table 11-6 Columbus SMSA nonlocal audiences by examined institutions 

Audience 

Nonlocal 

proportion 

Proportion 

of nonlocal 

Proportion 

of nonlocal 

Institution 

sample 

size 

of total 

audience 

who expected 

to attend 

who were 

sole-reason 

Ballet Metropolitan 497 14.1% 85.2% 62.3%
 

Center of Science and Industry 516 24.9% 60.2% 26.6%
 

Columbus Association for the
 531 18.8% 93.6% 88.5%
 

Performing Arts (Ohio Theatre)
 

Columbus Museum of Art
 369 13.8% 70.2% 27.7%
 

Columbus Symphony Orchestra 504 7.2% 89.3%* 67.9%*
 

Players Theatre of Columbus 476 4.0% 88.2%* 52.9%*
 

*Because of relatively small nonlocal audience,
 

these data should be treated with caution.
 

37
 
Table 11-7	 Columbus SMSA 

estimated secondary 

economic effects 

of examined institutions 

Secondary business volume 

generated by institutionrelated direct effects $10,539,968 

Secondary personal incomes 

generated by institutionrelated direct effects 

<excluding $2,045,981 in 

salaries to organizational 

employees) $ 4,044,301 

Secondary full-time jobs 

in the Columbus SMSA 

attributable to institutionrelated direct effects 

(excluding 123 full-time 

organizational employees) 574 

Initial expansion of the 

local credit base $ 3,221,487 

Current value of backup 

inventory, equipment, 

and property $ 4,442,864 

Secondary economic effects
 

Direct-effect spending leads to secondary
 

effects when the institution-related expenditures within the community are in turn
 

respent by local firms and households. The
 

study estimates the level of five secondary
 

effects of institution-related spending in
 

1978. Respending of initial dollars introduced into the loca! economy is estimated
 

to result in $10,539,968 in local secondary business volume. Of this amount, an
 

estimated $4,044,301 is paid out in wages
 

to employees. This personal income represents 574 ful!-time jobs in the Columbus SMSA.
 

Additional secondary effects include an expansion of the local credit base due to
 

deposits in local banks by the examined
 

institutions, their employees, and the
 

local businesses benefiting from institution-related direct effects. It is estimated that in fiscal 1978 average monthly
 

balances in business and employee savings
 

and checking accounts totaled $3,419,777.
 

When reduced by federal and state cash reserve requirements, this allows an initial
 

expansion of the credit base totaling
 

$3,221,487.
 

Finally, area firms benefiting from institution-related direct and secondary business activity are estimated to have
 

invested $4,442,864 in plant, inventory,
 

and equipment in support of this business
 

volume. This represents the fiscal 1978
 

value of these assets, not expenditures
 

made in fiscal 1978; a portion of the assets
 

may, however, have been acquired in that
 

year. Expenditures were not necessarily
 

made with local firms. Table II-7 presents
 

estimates for each of the secondary effects
 

discussed above.
 

38
 
 

Columbus SMSA examined institutions by sources of government support Table 11-8 

e 

Federal State Local Total
 I.~stitution
 

B-~’llet Metropolitan $ 1,375 $ 7,300 $ 3,000 $ 11,675
 

Center of Science and 

7~ustrv
 --- $30,000 $ 30,000


­01umbus Association
 

for the Performing Arts
 --- $23,800 $ 6,000 $ 29,800
 (0hio Theatre)
 

$ 50,000 $27,328 $32,350 $109,678
 C0i~!~bus Museum of Art
 

Col~bus Symphony
 

OrChestra $ 70,500 $29,550 $12,695 $112,745
 

P~-ayers Theatre of
 --- $ 6,100 $ 4,282 $ 10,382
 Columbus
 

$121,875 $94,078 $88,327 $304,280
 Total
 ~:.~.­

included grants, operating subsidies, and
 Government revenues and exDenditures
 service contracts; they are presented in
 

Table II-8. Foregone property taxes are
 In addition to estimating the direct and
 

secondary effects on businesses and indi- estimated at $171,391 in fiscal 1978.
 

viduals attributable to the examined institutions, this study has sought to estimate
 

the effect on local Columbus government revenues and expenditures in fiscal 1978. Local
 

governmental revenues examined include
 

real estate taxes paid to metropolitan
 

area jurisdictions by the examined institutions and their employee households, as
 

well as a portion of property taxes paid
 

by businesses benefiting from institution-


related direct effects. Estimates were
 

also made of local sales and income tax
 

revenues attributable to institution-


related direct effects. Additional governmental revenues identified include local
 

hotel taxes, gasoline taxes, and parking
 

revenues.
 

Estimates of costs to local governments
 

in the Columbus SMSA are based on estimates of local governmental operating
 

costs associated with the provision of
 

services to employee households including
 

the cost of public instruction for households with children in the public schools.
 

(No estimate has been made of the costs
 

associated with services to the institutions themselves.) Government expenditures
 

in support of the examined institutions
 

39
 
Table 11-9 Columbus SMSA 

estimated revenues and costs 

to local government 

related to examined institutions 

Revenues
 

Real estate taxes paid
 

by institutions, emoioyees,
 

and business proper~y
 

serving them
 $221,585
 

Locally retained sales
 

tax on institution-


related business volume
 $ 5,521
 

Local income tax revenues
 

attributable to institutional employees and their
 

households
 $ 51,215
 

State aid to local governments attributable to
 

institutional employee
 

households
 11,898
 

Hotel taxes
 

2,251
 

Gasoline tax
 4,948.
 

Parking revenues, estimated
 83,833
 

Total
 $381,251
 

Costs
 

Operating costs of local
 

governments and schools
 

for services to employee
 

households
 $157,022
 

Grants to study institutions
 $ 88,327
 

Total
 

$245,349
 

Table II-9 summarizes institution-related
 

governmental revenues and costs. Included


as costs are local governmental grants
 

and fees for servlces. In reviewina Table
 

II-9, bear in mind the limited nature of
 

this analysis. No information is available by which to judge whether or not the
 

identified effects on business, individuals,
 

and government are typical of the broader
 

universe of all Co!u~us area cultural
 

institutions. The tax effects shown are
 

specific to the examined mix of institutions.
 

Regenues to local government include real
 

estate taxes and taxes on business property devoted to servicing the institutions.
 

income taxes, sales taxes, local hotel
 

taxes, gasoline taxes, state aid to local
 

governments, and parking revenues totaled
 

$381,251 in local government revenues attributable to the examined institutions.
 

An employee survey indicates that employees at the examined institutions contribute
 

to both costs and revenues of government.
 

They live in the city of Columbus or elsewhere in Franklin County, and approximately 38 percent of them pay taxes as homeowners; they report a total of twenty-five
 

children in local public schools.
 

Sales, income, and property tax estimates
 

are undoubtedly conservative inasmuch as


no estimate has been made of taxes paid
 

by individuals benefiting from institution-related secondary effects. In addition, no attempt has been made to assess
 

the incidental effects of institutional
 

activities on surrounding taxable property


values, which may be positive or negative.
 

Finally, no attempt has been made to assess the governmental costs or benefits
 

associated with the more subtle effects
 

discussed in the overview.
 

Costs to local government included operating costs of local governments and school
 

and local government grants to the examined institutions for a total cost to local
 

government of $245,349. As noted above,
 

this does not include additional costs
 

that may be associated with specific governmental services to the examined institutions.
 

4O
 
 

CHAPTER III
 

THE MINNEAPOLIS/ST. PAUL ECONOMY AND
 

ARTS AND CULTURAL INSTITUTIONS
 

The following institutions in the Minneapolis/St. Paul Standard Metropolitan
 

Statistical Area or SMSA were selected for
 

study by the Twin Cities Metropolitan Arts
 

Alliance:
 

Children’s Theatre Company
 

Chimera Theatre
 

Cricket Theatre
 

Guthrie Theatre
 

Minneapolis Institute of Arts
 

Minnesota Dance Theatre
 

Minnesota Orchestral Association
 

St. Paul Chamber Orchestra
 

Walker Art Center
 

The Science Museum of Minnesota
 

These represent a range of organizational
 

types and include some of the more well-


known local institutions. Their selection
 

resulted from locally initiated efforts
 

to identify interested organizations.
 

The examined activities repeatedly demoni
 

strate the importance of committed groups
 

and individuals, in local cultural development. The successful completion of the
 

Minneapolis/St. Paul project was due to
 

the efforts of a number of persons, including the principal project staff of
 

the Hetropolitan Arts Alliance. William


Driver, managing director of the Alliance,
 

served as study d~rector, also coordinator the day-to-day tasks. Dr. Julien L.
 

Phillips assisted in the coordination of
 

requisite audience studies. Other staff
 

persons and volunteers who actively participated in the project are identified
 

at the end of this report.
 

Minneapolis/St. Paul institutions
 

Chimera Theatre came into existence in
 

1969 through the purchase of the remaining
 

assets of the defunct Eastside Theatre.
 

The Chimera Theatre held 290 performances
 

in 1978-79 and also over fifty educational classes.
 

The Minnesota Dance Theatre and School was
 

founded in 1961 as The Contemporary Dance
 

Playhouse by choreographe~ and artistic
 

director Loyce Houlton. It is now the largest dance organization in the Midwest with
 

twenty professional dancers, 3,600 students,
 

and thirty dance works in repertoire.
 

The Guthrie Theatre opened in 1963, largely
 

due to the efforts of Oliver Rea, Peter
 

Minneapolis/St. Paul

Standard Metropolitan

Statistical Area (SMSA) 

Zeisler, and Sir Tyron Guthrie, marking the
 

start of the regional professional theatre
 

movement. In 1979 the Guthrie presented
 

a total of twenty-one performances and presentations, and 473 workshops and classes.
 

The Minneapolis Society of Fine Arts was
 

established in 1883, and c~eated the Minneapolis Institute of Arts (MIA) in 1915.
 

The original museum building was completed
 

in 1915; a new wing was added in 1927, and
 

the building again expanded in 1974. Its
 

current collection numbers over sixty thousand works of art and presents a broad range
 

Of community education programs.
 

In 1961 the Moppet Players launched the
 

first full-time theatre for children in
 

Minnesota. In 1965 the Moppet Players became the Children’s Theatre Company of MIA,
 

and in 1973 became a member of the Minneapolis Society of Fine Arts (along with MIA
 

and the Minneapolis College of Art and Design). In 197~ the theatre company became
 

fully independent.
 

The St. Paul Chamber Orchestra was founded
 

in 1967 and consists of twenty-six full-


time professional musicians and two conductors.
 

The Cricket Theatre was founded by Bill
 

Semons in 1971. At the time of the study,
 

the Cricket Theatre was operating out of
 

41
 
 

Table II1-1 Minneapolis/St. Paul SMSA demographics 

Age (1977) 

Education (1970] 

18-24 

25-34 

35-49 

50 and over 

14.6% 

18.2% 

15. 7% 

21.3% 

Less than 5 ’years 

4 years of high school or more 

4 years of college or more 

1.7Z 

66.1% 

14.8% 

Median age 

27.9 Median education 

12.4 

a converted movie theatre in northeast Minneapolis. Since then, it has moved into


new quarters at the Hennepin Center for the
 

Arts. The Cricket Theatre is dedicated to
 

bringing new plays to the Minneapolis/st.
 

Paul area.
 

The Science Museum of Minnesota traces its
 

beginnings to 1907 when a small group of St.
 

Paul businessmen, headed by Charles W. Ames,
 

met to discuss the "intellectual and scientific growth of St. Paul." Ames proposed
 

a series of free lectures and Thomas Irvine
 

pledged financial support. The St. Paul
 

Institute of Arts and Letters was born, and
 

later became The Science Museum of Minnesota. In 1927 the museum moved to the
 

Merrlam mansion on Capitol Hill, and in 1965,
 

needing new space, it moved into a new
 

building at 30 East Tenth Street. In 1978
 

The Science Museum opened its own new build-


i~g across the street on Wabasha. The Science Museum also maintains a Planetarium
 

and exhibit hall in the Minneapolis Public
 

Library, Lee and Rose Warner Nature Center
 

near Marine-on-the-st. Croix, and Metcalf
 

Natural History Study Center at Afton.
 

Walker Art Center began as a gallery that
 

exhibited the extensive private collection
 

of paintings and prints, begun in 1874, of
 

Thomas Barlow Walker. In 1879, Walker built
 

the first public art gallery in the Midwest.
 

By the 1920s the T. B. Walker Art Galleries
 

had expanded to cover nearly a city block
 

as the Walker Art Center, which was supported by an annual operating grant from
 

the T.B. Walker Family Foundation. Since
 

by the 1970s many of Walker’s descendants
 

had left Minnesota, the art center was put
 

under the control of a board of directors
 

drawn from the Minneapolis/st. Paul community. In 1976, the foundation transferred
 

the bulk of the assets of the art center to
 

the board of directors, which launched a
 

major endowment fund drive.
 

The Minnesota Orchestra was founded in 1903
 

as the Minneapolis Symphony Orchestra. The
 

ninety-five-member orchestra is world-renowned and currently presents a fifty-twoweek season with performances in the Minne-


Sota cities of Minneapolis, St. Paul, St.
 

Joseph, and Rochester.
 

~is/st. Paul


cultura~co-~--~-~uni~ economy and the broader
 

An examination of the economy and broader
 

cultural community of the Twin Cities and


SMSA of Minneapolis/St. Paul contributes to
 

an understanding of the effects ascribed to


the eight examined arts instituzions. Table
 

III-I presents market data such as Effective Buying Income (EBI), a measure of the
 

buying power of households after government deductions for taxes, social insurance,
 

and lesser items; it also shows age, education, population, and income information.
 

The Minneapolis/st. Paul SMSA consists of
 

Hennepin, Ramsey, Anoka, Dakota, Washing42
 
Population (selected years)	 Household income (1977)
 

1960 1,482,030	 $8,000-$9,999 5.5%
 

1,965,391 S10,000-$14,999	 17.1%
 1970
 

2,010,841 $15,000-$24,999	 37.3%
 1975
 

1977
 2,042,900 $25,000 and over	 20.9%


Popu~lation change	 1977 median household income $16,915
 

Z3.0%
 1960-1970	 1969 median household income $11,682
 

1970-1975	 3.2%
 Average annual change in
 

per capita income 1969-7’4 7 .7%
 

Unless otherwise noted, the following in-
 ton, Wright, Scott, Carver, and Chisago
 

counties in Minnesota and St. Croix county	 formation is taken largely from the Greater
 

Minneapolis Chamber of Commerce’s publica-
 in Wisconsin. In this study, the terms
 

"local," "the Minneapolis/St. Paul metro- tion, ProfileuEconomic and Demographic
 

politan area, .... the Minneapolis/St. Paul Information on the Minneapolis/St. Paul
 

region," and "Twin Cities SMSA" are used Metropolitan Area (Fall, 1978).
 

interchangeably to identify the Minneapolis/
 In 1976 there were 38,457 firms in the
 St. Paul SMSA, and figures are for 1978,
 

unless otherwise specified. The 1978 pop- SMSA, of which 3,375 were involved in manufacturing, 4,114 in wholesale trade, 9,769
 ulation of the nine Minnesota counties of
 

in retail trade, and 11,046 in services.
 the SMSA was estimated to be 2,063,770,
 

and the SMSAbusiness volume $22,015,371,080. Twenty-eight of the manufacturing firms~
 

four of the retail firms, and fourteen of
 

the service firms each employed more than
 In 1977, the Twin Cities SMSA ranked fif­ one thousand people. In i[976, manufacturing
 teenth in the nation in population with
 

2,042,900, up from seventeenth in 1970 with accounted for 30 percent of the employed
 

1,965,391 (Sales and Marketing Management, work force with services accounting for


Vol. 121; No. 2, July 24, 1978, pp. 6-115).	 31.5 percent, retail trade 25.3 percent,
 

and wholesale trade l0 percent. Fortune
 

(May and June 1978) listed thirteen Twin
 The history of the area dates to the late
 

seventeenth century, when explorers passed Cities companies among its top 500 and
 

through the site of St. Paul. By 1805 an	 eleven others in its second 500 industrial
 

companies ranked by sales. Thirteen Twin
 unofficial treaty with the Sioux had been
 Cities companies were listed by Fortune
 made. St. Paul was incorporated in 1854,
 

and Minneapolis was chartered as a city in (July 1978).among the largest nonindustrial
 

corporations in the nation, well-known
 1867.
 

firms such as Control Data, Honeywell,
 

Minneapolis’s first ma~or industries were Univac (Division of Sperry Rand), 3M, Genbased on water power: sawmills and flour eral Mills, .and Pillsbury started here and
 

mills. St. Paul developed as a commercial continue to ,grow. In t~e past twenty-five
 

center, particularly for the fur trade. years Control Data has grown from infancy
 

Banking and railroading developed quickly to a corporation employing over ten thousand people locally.
 in St. Paul, as did the manufacture of boots
 

and shoes. Minneapolis advanced from a
 

flour milling center to become the country’s The growth of the electronics and related
 

science industries in Minnesota has been
 primary wheat market.
 

43
 
 

spectacular. Early in 1955 there were
 

eighty-nine SUCh firms employlng slightly


over 26,000 people; by the end of 1967
 

there were 159 companies employing over
 

87,000 people, an employment growth of 237
 

percent. A recent study by the Minnesota
 

Department of Economic Develomment showed
 

93,600 persons employed in the elec=ronlcs
 

related industries.
 

?hese firms and o~hers have helped make the
 

~win Cities one of the largest business
 

centers between Chicago an~ the West Coast.
 

The area is the dis:rlbution center for th6
 

upper Nidwest. Hinneapoiis ~s also the
 

headquarters for the Ninth Federal Reserve
 

Distric~ Sank. 

Business is attracted to Minneapolis/st.
 

Paul for several reasons, including its
 

@eographic !ocat~on and transportation services. The Twin Cities area is the hub of
 

<he upper Midwest’s transportation network
 

and is served by ten passenger airlines,
 

six bar@e lines, three interstate bus lines,
 

six freight railroads and Amtrak, and over
 

one hundred truck lines. Minneamolisi St.
 

Paul also has a strategic locatien at the
 

head of navigation on the Mississippi River


and the port now handles in excess of three
 

mlllion tons annua!ly. The Twin Cities


are the nation’s seventh largest distribution center and the third largest trucking
 

dlstributlon center, while the M~nnea~olis/~


St. Paul alrport is ranked second natienal!y
 

for remalning open year around--over seven
 

m~ll~on travelers pass through each year.
 

industrial development in the Minneapolis
 

metropolitan area continues at a rapid pace.
 

Table 111-2 

Urban renewal projects, new office buildings, retail facilitles, and shoDminG centers have totaled over $500 m!iiien in the
 

!ast ten years, in !971, four of the largest office buildings were under construction: the fifty-seven-story IDS Center,
 

the tallesr building between Chica~o and
 

San Francisco; the Federal Reserve Bank
 

Building; the Midwest Plaza: and the Peavev
 

Building. The twin-towered Hennepin Count.~.
 

Government Center was comoieted
 

Under construction at the 61me of this study
 !974.


were the First Hinneapolis-Hines Pi!isbu]v
 

Center, a two-towered commiex housing th~
 

new Pilisburv world heads~arters and the
 

First National Bank of M~nneapoiis; Northwestern National Bank’s twenty million dollar computer center ~n the Gateway area;
 

and Nor:hwestern National Life InSurance
 

Company’s twenty-story companion tower to
 

the company’s home office building. Other
 

companies expanding in the city include
 

Honeywell, Lutheran Brotherhood, and Sears
 

Roebuck and Company. in the sDrin~ of !979,
 

construction was expected to begin on :he
 

City Center pro~ect~ a S120 million complex
 

which will feature a new Donaldson’s
 

department store, shopping complex, hotel,
 

~nd the Northwestern Bank Tower.
 

The Twin Cities have also become a popular
 

convention and tourism area. The 100,000­

square-foot Minneapolis Exhibit Hall seats
 

fourteen thousand people and there are 9,500
 

seats in the adjoining main auditorium. In
 

1977 Minneapolis was the s~te for 356 conventions bringing $54 million into the area.
 

-The cultural community includes thirty-


seven art galleries, thirteen fine ar[s
 

~oinneaoolis/St. Paul SMSA selected businesses related

arts and culture 

Businesses
 

Number EmolQyees Payroll
 

:~lev~s~on-rad~o enterprises
 

Music and record stores 

155 881 $ 8,479,000 

81 711 S 5,651,000 

Bookstores 

59 279 S i,575,000 

Photography stores 

30 221 $ 1,368,000 

Movie theatres (except drive-ins) 50 1,245+ $ 2,923,000+ 

Total 

375 3,337+ S19,996,000+ 

44
 
 

Table 111-3 Minneapolis/St. Paul SMSA estimated direct economic effects of examined institutions 

Y 

Y Total 

Local institution expenditures
 

for goods and services $ 7 335,778
 

Employee salaries and wages $i0 852,362
 

Local audience spending (other
 

than ticket price) $ 7 339,916
 

Sole-reason visitor spending $ 2,967,612
 

Guest artist spending $ 104,223
 

Total direct spending $28,599,891
 

*Less than 1 percent.
 

museums and institutions, thirty-nine playhouses, and eighty-five movie theatres,
 

There are a museum of natural history, many
 

community and children’s theatres, and fine
 

libraries. Minneapolis/St. Paul is one of
 

the six locations in the United States to
 

host the Metropolitan Opera annually.
 

The examined institutions were selected
 

from the many nonprofit arts and cultural
 

organizations in the Twin Cities SMSA.
 

Although these ten may perhaps typify the
 

impact of various types of institutions,
 

they do not represent the full share or
 

locally available commercial and nonprofit
 

activities. It is clear that the examined institutions do not exhaust the impact of the "cultural industry." For example, 1970 census data show a total of
 

7,048 employed writers, artists, and entertainers in the Twin Cities SMSA, excluding individuals employed in art galleries
 

and other arts-related positions (Where
 

Artists Live: 1970, Research Division Report #5, Washinqton: ~ational Endowment
 

for the Arts, 1977; see list at back of
 

this report). Only 777 persons were employed full time at the examined institutions. The yellow pages of the Twin Cities
 

metropolitan area telephone directory list
 

over 2,600 enterprises which can be considered culture-related in the broadest
 

sense. These range from music, art, and
 

theatrical suppliers to book and record
 

Percent
 

of total Single institution
 

direct
 

spending Lowest Highest
 

26% $141,137 $1,622,068
 

38% $226,220 $1,969,802
 

26% $ 38,002 $1,777,701
 

10% $ 11,374 $I,ili,746
 

$ 0 $ 35,991
 

100%
 

dealers, design firms, and commercial photographers. Data on the impact of some
 

elements of these cultural business sectors
 

are available from the 1977 statistics in
 

the U.S. Bureau of the Census County Business Patterns series. Table III-2 details
 

various data on businesses used by the
 

general public.
 

Direct economlc effects
 

The direct economic effects of the examined
 

institutions include local spending for
 

goods and services, salaries and wages to
 

local residents, and expenditures by guest
 

artists and by local and nonlocal audiences.
 

Table III-3 presents selected data on institution-related direct economic effects
 

during fiscal 1978.
 

Local institutional expenditures for goods,
 

services, and salaries. It is estimated
 

that the examined institutions made 70 percent of their expenditures for goods and
 

services with local vendors and that this
 

totaled $7,335,778. The percentage of
 

nonlabor expenditures made locally by the
 

examined institutions ranged from 55 percent to 99 percent. An additional $10,852,362
 

was spent for salaries and wages to loca!
 

households. No estimate has been made of
 

the impact of additional earned and other
 

income by institutional employee households;
 

in some cases it was as high as 20 percent.
 

45
 
 

Table 111-4 Minneapolis/St. Paul SMSA estimated audiences and spending by examined institutions 

Audience 

Nonlocal 

Institution Local Nonlocal 

(sole 

reason) 

Institution 

total 

Children’s Theatre Company 124,027 13,781 7,166 137,808 

Chimera Theatre 

Cricket Theatre 

111,497 7,117 629 118,614 

Guthrie Theatre 

29,742 2,239 640 31,981 

Minneapolis Institute of Arts 

Minnesota Dance Theatre 

336,252 

369,000. 

84,063 

81,000 

42,032 

21,150 

420,315 

450,000 

Minnesota Orchestral Association 

10,920 697 430 11,617 

St. Paul Chamber Orchestra 

445,539 18,564 7,426 464,103 

The Science Museum of Minnesota 

33,571 1,399 455 34,970 

Walker Art Center 

541,200 118,800 24,420 660,000 

388,076 47,964 7,849 436,040 

Total 
 

 

 

Guest artist s~endin~. Each year, cultural
 

institutions contract with nonresident designers, directors, conductors, featured
 

soloists, touring groups, and others. These
 

nonresident "guest artists" were reported
 

to have spent a tota! of $104,223 locally.
 

No attempt has been made to estimate spending by guest artist entourage.
 

Audience s~ending. Decisions regarding the
 

handling of audience data can have a major
 

impact on economic effect estimates. This
 

study’s conservative approach was to include
 

the ancillary ~pending of nonlocal visitors
 

only if attendance at the arts event was
 

their sole reason for being in the community. This protocol is discussed in Chapter
 

I. At some institutions, however, sole-


reason visitors are only a small percentage of total visitor attendance and spending. Many visitors indicated that they had
 

planned ahead of time to attend, although
 

that was not the sole reason for their
 

visit. Table III-4 presents a summary of
 

audience data for Minneapolis/St. Paul.
 

An estimated 375,624 visitors from outside
 

the SMSA attended the examined institutions
 

during fiscal 1978. They comprised from
 

4.2 percent to 20.5 percent of total attendance depending on the institution. Of
 

these visitors, 112,197 are estimated to
 

have visited the Twin Cities specifically
 

to attend the institutions under study.
 

L0~al ~Nonlocal 

$. 264,178 $ 780,959 

$ i~ 326,686 $ 403,315 

$i._ 116,589 $ 126,882 

$1,311,383 $ 4,763,786 

$ 970,470 $ 4,590,208 

$ 38,002 $ 39,498 

$1,777,701 $ 1,052,008 

$ 86,949 $ 79,280 

$1,601,952 $ 6,732,306 

$ 846,006 $ 2,718,083 

$7,339,916 $21,286,325 

Nonlocal
 

(sole
 

reason)
 

$ 189,541
 

$ 16,637
 

$ 16,928
 

$1,111,746
 

$ 559,418
 

$ ii 374
 

$ 196,418
 

$ 12,035
 

$ 645,909
 

$ 207,606
 

$2,967,612
 

47
 
As seen in Table III-5, local audiences
 

spent sums ranging from an average of $2.13
 

to $3.99 per person mer visit for items
 

such as meals and parking. During fiscal
 

1978, local audiences are conservatively
 

estimated to have spent $7,339,916 over
 

and above admission fees.
 

As shown in Table III-6, many other visitors
 

expected to attend while visiting the Twin
 

Cities, but it was not their sole reason.
 

visitors from outside the SMSA are of special
 

interest inasmuch as their spending represents "new" dollars, money which had not
 

been in the community until that time.
 

Across all examined institutions, nonlocal
 

sole-reason visitors traveled a mean of
 

seventy-seven miles to attend and reported
 

per capita expenditures of $26.45, resulting in total expenditures of $2,967,610
 

that can be conservatively attributed to
 

the drawing power of the examined cultural
 

activities. Persons for whom attendance
 

at the cultural institutions was not the
 

sole reason for visiting the community traveled a mean of seventy-three miles and spent
 

$69.54 per capita, totaling $18,318,714.
 

One reason for this large difference in
 

expenditures is that in the sole-reason
 

group 18 percent stayed at hotels for a
 

mean of 0.77 nights, whereas in the nonsole-reason group 20 percent stayed at hotels
 

for a mean of 4.29 nights.
 

Table 111-6 Minneapolis/St. Paul SMSA nonlocal audiences by examined institutions 

Institution
 

Children’s Theatre Compahy
 

Chimera Theatre
 

Cricket Theatre
 

Guthrie Theatre
 

Minneapolis Institute of Arts
 

Minnesota Dance Theatre
 

Minnesota Orchestral
 

Association
 

St. Paul Chamber Orchestra
 

The Science Museum of Minnesota
 

Walker Art Center
 

Nonlocal
 

Audience proportion
 

sample of total
 

size audience
 

461 10.3%
 

638 6.0%
 

646 7.3%
 

892 20.5%
 

427 17.7%
 

450 6.1%
 

1,013 4.3%
 

931 4.2%
 

828 18.2%
 

524 11.0%
 

Proportion Proportion
 

of nonlocal of nonlocal
 

who expected who were
 

to attend sole-reason
 

81.8% 52.3%
 

35.3% 8.8%
 

65.9% 29.3%
 

91.6% 50.0%
 

75.3% 26.0%
 

96.2%* 61.5%*
 

88.6% 40.0%
 

77.1% 31.4%
 

61.4% 20.7%
 

70.4% 16.7%
 

*Because of relatively small nonlocal audience,
 

these data should be treated with caution.
 

49
 
Table 111-7	 Minneapolis/St. Paul SMSA 

estimated secondary

economic effects 

of examined institutions 

Secondary business volume
 

generated by institution-


related direct effects
 

Secondary personal incomes
 

generated by institution-


related direct effects
 

(excluding $10,852,362 in
 

salaries to organization
 

employees)
 

Secondary full-time jobs
 

in the St. Louis SMSA attributable to institution-


related direct effects
 

(excluding 777 full-time
 

organizational employees)
 

Initial expansion of the
 

local credit base
 

Current value of backup
 

inventory, equipment,
 

and property
 

Secondary economic effects
 

Direct-effect spending leads to secondary
 

effects when the institution-related expenditures within the community are in turn
 

respent by local firms and households. The
 

study estimates the level of five secondary
 

effects of institution-related spending in
 

1978. Respending of initial dollars introduced into the local economy is estimated
 

to result in $57,211,537 in local secondary
 

business volume. Of this amount, an estimated $21,720,604 is paid out in wages to
 

employees. This personal income represents
 

3,053 full-time jobs in the Minneapolis/
 

St. Paul SMSA.
 

Additional secondary effects include an expansion of the local credit base due to
 

deposits in local banks by the examined
 

institutions, their employees, and the
 

local businesses benefiting from institution-related direct effects. It is estimated that in fiscal 1978 average monthly
 

balances in business and employee savings
 

and checking accounts totaled $7,576,561.
 

When reduced by federal and state cash reserve requirements, this allows an initial
 

expansion of the credit base totaling
 

$6,849,136.
 

Finally, area firms benefiting from institution-related direct and secondary business activity are estimated to have invested $15,837,042 in plant, inventory, and
 

equipment in support of this business
 

volume. This represents the fiscal 1978
 

value of these assets, not expenditures
 

made in fiscal 1978; a portion of the
 

assets may, however, have been acquired
 

in that year. Expenditures were not necessarily made with local firms. Table
 

III-7 presents estimates for each of the
 

secondary effects discussed above.
 

Government revenues and expenditures
 

In addition to estimating the direct and
 

secondary effects on businesses and individuals attributable to the examined institutions, this study has sought to estimate
 

the effect on local Minneapolis/St. Paul
 

government revenues and expenditures in fiscal 1978.
 

$57,211,537
 

$21,720,604
 

3,053
 

$ 6,849,136
 

$15,837,042
 

5O
 
 

 

 

Table 111-8 Minneapolis/St. Paul SMSA examined institutions by sources of government support 

Institution Federal State Local Total 

Children’s Theatre Company 

Chimera Theatre 

Cricket Theatre 

Guthrie Theatre 

Minneapolis Institute of Arts 

Minnesota Dance Theatre 

Minnesota Orchestra Association 

St. Paul Chamber Orchestra 

The Science Museum of Minnesota 

Walker Art Center 

$ 37,500 

$ 7,500 

$155,000 

$119,534 

$ 16,162 

$160,000 

$ 80,000 

$214,245 

$ 75,000 

$ 14,000 

$117,285 

$107,450 

$ 44,030 

5170,000 

$ 67,795 

$ 85,295 

$ 8,000 

~18,500 

~ 6,000 

$ 8,000 

$30,000 

S 7,000 

120,500 

18,500 

21,500 

278,285 

226,984 

60,192 

338,000 

177,795 

306,540 

Total $789,941 $680,855 577,500 $1,548,296 

51
 
Table 111-9	 Minneapolis/St. Paul SMSA 

estimated revenues and costs 

to local government 

related to examined institutions 

Revenues
 

Real estate taxes paid
 

by the arts institutions,
 

their employees, and business property serving
 

the institutions
 $1,483,786
 

Admissions tax
 S !71,!01
 

Local income tax revenues
 

attributable to institutional employees and
 

their households
 $ 0
 

State aid to local governments attributable to
 

institutional employee
 

households
 $ 195,710
 

’Transient lodging tax
 $ 7,148
 

Gasoline tax
 $ 31,576
 

Parking revenues, estimated $ 246,019
 

Total
 $2,135,340
 

Costs
 

Operating costs of local
 

governments and schools
 

for services to employee
 

households
 $1,069,025
 

Grants to study institutions
 77,500
 

Total
 $i,146,525
 

Estimates of costs to local governments in
 

the Twin Cities area are basedon estimates
 

of local governmental operating costs associated with services to employee households, including the cost of public instruction for households with children in the
 

public schools but excludinm costs associated with services to the instltutions
 

themselves. Table III-9 summarizes institutution-reiated governmental costs and revenues. Included as costs are local covernmental grants and fees for servlces, in
 

reviewinm Table IIi-9, the limited nature
 

sf this analysis should be kest in m~nd.
 

No information is available by which to
 

judge whether or not the identified effects on business, individuals, and
 

ernment are tvsical of the broader uilverse
 

of Twin Cities area cultural institutions.
 

The tax effects shown are specific to the
 

examined mix of institutions.
 

Revenues to local government include real
 

estate taxes, taxes on business property
 

devoted to servicin~ the institutions, admission taxes, local hotel taxes, gasoline
 

taxes, state aid to local governments, and
 

parking revenues. These totaled $2,135,340
 

in local government revenues attributable
 

to the examined institutions. An emmloyee
 

survey indicates that employees at t~e examined institutions contribute to both costs
 

and revenues of government. They live ~n
 

the Twin Cities or in Henne~in C~unt~,, and
 

approximately 37 percent of them pay taxes


as homeowners; they report a total of 179
 

children in local public schools.
 

Sales, income, and property tax estimates
 

are undoubtedly conservative inasmuch as
 

no estimate has been m~de of taxes paid by
 

individuals benefiting from institution-


related secondary effects. In addition,


no attempt has been made to assess the incidenta! effects of institutional activities on surrounding taxable mroperty values, which may be positive or-negative.
 

Fina].ly, no attempt has been made to assess


the governmental costs or benefits associated with the more subtle effects that may
 

result from the arts, which are discussed
 

in the overview.
 

Costs to local government included oseratin@
 

costs of loca! governments and sch6ols an~
 

local governmenz grants to the examined institutions for a total cost to local government of $1,146,525. As noted earlier, this
 

does not include additional costs that may
 

be associated with specific governmental
 

services to the examined institutions.
 

52
 
 

 

CHAPTER
 

St. Louis 

THE ST. LOUIS ECONOMY AND Standard Metropolitan 

ARTS AND CULTURAL INSTITUTIONS Statistical Area (SMSA) 

The following institutions in the St Louis
 

Standard MetroPolitan Statistical Area or
 

SHSA were selected for study by the Arts
 

and Education Council of Greater St. Louis:
 

St. Louis Art Museum
 

St. Louis Conservatory and School
 

for the Arts (CASA)
 

St. Louis Symphony Orchestra
 

Missouri Botanical Garden
 

McDonnell Planetarium
 

Loretto-Hilton Repertory Theatre
 

Museum of Science and Natural History
 

Dance Concert Society
 

These represent a range of organizational
 

types and include some of the more well-


known local institutions. Their selec~on
 

resulted from locally initiated efforts
 

to identify interested organizations.
 

The successful completion of the St. Louis
 

project was due to the efforts of a number
 

of persons, including the principal project staff of the Arts and Education Council. Richard Tombaugh, executive director
 

of the Council, served as study director
 

and Joseph Davis, of Resources Management,
 

Inc., was responsible for coordinating the
 

day-to-day tasks. Other staff persons and
 

volunteers who actively participated in
 

the project are identified at the end of
 

this report.
 

St. Louis institutions
 

CASA was founded in 1974 as the result of
 

a merger between a college-level institute
 

(the St. Louis Institute of Music) and an
 

inner-city community school (the Community
 

Musis School). In 1977-78 CASA had an enrollment at four branches of more than
 

1,200 students who received instruction in
 

music, voice, dance, drama, and art.
 

The Missouri Botanical Garden opened to
 

the public in 1859, largely due to the vision of Henry Shaw, a retired businessman.
 

The first botanical garden in the United
 

States, it considers research, education,
 

and display to be its three primary functions. The library at the Missouri Botanical Garden is considered among the top four
 

or five botanical libraries in the world.
 

The Dance Concert Society was founded in
 

1966 to sponsor nationally and internationally acclaimed contemporary dance companies
 

in performance. The society’s scooe has
 

MISSOURI 

IFLOR!eSANT" 
 LOUIS
 

~ ST /  ̄ EASTST lOUIS
 

widened recently to include the sponsorship of extended educational residencies
 

of four or more companies each year.
 

The Loretto-Hilton Center was opened by
 

Webster College in 1966. The first professional theatrical company produced by
 

Webster College incurred large debts, and
 

was closed after four years of operation.
 

The theatre reopened in 1971 as an independent nonprofit corporation under an
 

arrangement that allows the theatre to use
 

college-owned facilities. In addition to
 

the main-stage program, this orofessional
 

repertory theatre also produces a touring
 

company that performs for students in elementary and junior high schools, and for
 

immobilized senior citizens.
 

The St. Louis Symphony Orchestra, the nation’s second oldest major orchestra, is
 

ranked among the best in the United States.
 

The symphony’s permanenz home is Powell
 

Symphony Hall, formerly the St. Louis Theatre, remodeled in 1968. During the 1977­

78 season there were fifuy regular subscription concerts, fifteen pops concerts,
 

uen special Christmas concerts, forty-five
 

educational concerts for children and young
 

adults, and a six-concert baroque orchestra series, all held in Powe!i Hall. The
 

symphony presented an additiona! fifty
 

Concerts in the area, and toured in thirty-


one cities.
 

The St. Louis Art Museum was founded in
 

1907. It is now a subdistrict of the
 

Metropolitan Zoological Park and Museum
 

53
 
Table IV-1 St. Louis SMSA demographics 

Age (1977) 

18-24 12.2% 

25-34 15.6% 

35-49 16.7% 

50 and over 24.9% 

Median age 29.7 

District established in 1971 by an act of
 

the Missouri State Legislature. The museum is well-known for its galleries of
 

primitive and pre-Columbian art.
 

The Museum of Science and Natural History
 

is another subdistrict of the Metropolitan
 

-Museum and was founded in 1972.
 

The McDonnell Planetarium was financed by
 

a 1956 bond issue, and opened to the public in 1963. Currently, the olanetarium
 

is also a subdistrict of the Metropolitan
 

Zoological Park and Museum District.
 

St. Louis economy and the broader cultural
 

community
 

An examination of the economy and broader
 

arts community of the city and SMSA of
 

St. Louis contributes ~o an understanding
 

of the effects ascribed to the eight examined arts institutions. Table IV-I presents
 

useful market data such as the Effective
 

Buying Income {EBI) , a measure of the buying power of households after govermment
 

deductions for taxes, social insurance,
 

and lesser items; it also shows age, education, population, and income information.
 

The St. Louis SMSA consists of the city of
 

St. Louis; the Missouri counties of Franklin, Jefferson, St. Charles, and St. Louis;
 

and the Illinois counties of Clinton, Madison, Monroe, and St. Clair. In this study,
 

Education (1970)
 

Less than 5 years 4.3%
 

4 years of high school or more 48.0%
 

4 years of college or more 10.1%
 

Median education
 

the terms "local," "the St. Louis metropolitan area," and "the St. Louis region"
 

are used interchangeahly to identify the
 

St. Louis SMSA. In 1977 the St. Louis
 

SMSA ranked twelfth in the nation with a
 

population of 2,378,000. This represented
 

a 1.3 percent drop frcm 1970, when the
 

St. Louis SMSA ranked tenth with a population of 2,410,884 (County and City Data
 

Book 1977, U.S. Dept. of Commerce, Census
 

Bureau, pp. 578, 696). The estimated nonulation in 1978 was 2,453,000 (Mark Twain
 

Bancshares) .
 

Situated on the banks of the Mississippi
 

River close to the mouth of the Missouri
 

River, St. Louis was founded as a French
 

fur-trading post in 1764. The town later
 

passed into Spanish and finally American
 

ownership, in the early nineteenth century, St. Louis became the primary staging point for pioneers moving west.
 

The St. Louis business community had fourteen Forbes 500 firms listed (May 1978) for
 

sales, with twelve St. Louis firms in the
 

top 500 for assets. Fortune (May/June i978)
 

cited twenty St. Louis industrial firms
 

among the nation’s top one thousand industries in 1977.
 

The area’s industrial sector provides the
 

greatest number of local jobs. In particular, the automobile industry is a major
 

54
 

ii.7 
Population (selected years)
 

1960
 

1970
 

1975
 

1977
 

Population change
 

1960-1970
 

1970-1975
 

2,060,i03
 

2,410,884
 

2,366,542
 

2,378,000
 

+12.4%
 

-1.7%
 

Household income (1977)
 

$8,000-$9,999
 

$i0,000-$14,999
 

$15,000-$24,999
 

$25,000 and over
 

1977 median household income
 

1969 median household income
 

Average annual change in
 

per capita income 1969-74
 

5.4%
 

16.6%
 

34.9%
 

22.3%
 

$15,876
 

510,504
 

7.3%
 

employer. At the time of this study,
 

Chrysler Corporation and General Motors
 

each employed more than five thousand persons, while Ford Motor Company and amotor
 

vehicle Darts corporation, A.C.F. Industries, each employed more than three thousand. Electrical and energy-related companies were also major emp!oyers. Emerson
 

Electric Company, Union Electric Company,
 

Southwestern Bell Telephone Company, add
 

Olin Corporation each employed more than
 

five thousand persons, while McGraw-Edison
 

Corporation employed more than three thousand. Other major employers included F~mous-Barr, Sears Roebuck and Company, Mc-


Donnell-Douglas Corporation, Monsanto
 

Company, and Washington University. In all,
 

there were ninety-six organizations that
 

each employed one thousand or more workers
 

(Large Employers of Metro St. Louis 1979,
 

Business Information Center, St. Louis
 

Regional Commerce and Growth Assoclation) .
 

The broad scope of arts activities available in greater St. Louis is indicated by
 

the large number of institutions, a total
 

of 116, that belong to the Arts and Education Council of Greater St. Louis. These
 

institutions range from music and theatre
 

groups to a public radio station and a
 

sculpture garden. The SMSA has ten colleges and universities as well as five
 

community colleges (The Arts and Education
 

Council of Greater St. Louis: 1977 Annual
 

Re__~_~, St. Louis, Mo.) .
 

55
 
The examined institutions were selected
 

from the many nonprofit arts and cultural
 

organizations in the St. Louis SMSA. Although these eight mav perhaps typify the
 

immact of various kinds of institutions,
 

they do not represent the full range of
 

locally available commercial and nonprofit
 

activities. It is clear that the examined
 

institutions do not exhaust the impact of
 

the "cultural industry." For example, census data for 1970 show a total of 5,765
 

emmloyed writers, artists, and entertainers in the St. Louis SMSA, excluding individuals employed in art galleries and
 

other arts-related mositions (Where Artists
 

Live: 1970, Research Division Remort #5.
 

Washington: National Endowment for the~Arts,
 

1977; see list at the back of this report).
 

Only 510 persons were employed full time
 

at the examined institutions. The yellow
 

pages of the St. Louis metropolitan area


telephone directory list over one thousand
 

enterprises which can be considered culture-related in the broadest sense. These
 

range from music, art, and theatrical supmliers to book and record dealers, design
 

firms, and commercial photographers.
 

Data on the impact of some elements of
 

these cultural business sectors are available from the 1977 statistics in the U.S.
 

Bureau of the Census County Business Pat-


erns series. Table IV-2 details data on
 

businesses used by the general public.
 

Direct economic effects
 

The direct economic effects of the examined institutions include local spending
 

for goods and services, salaries and wages
 

to local residents, and expenditures by
 

guest artists and by local and nonlocal
 

audiences. Table IV-3 presents selected
 

data on direct effects during fiscal 1978.
 

Local institutional expenditures for ~oods,
 

services, and salaries. It is estimated
 

that the examined institutions made 82
 

percent of their expenditures for goods
 

and services with local vendors and that
 

this totaled $5,248,714. The percentage
 

of nonlabor expenditures made locally by
 

the examined institutions ranged from 43
 

percent to 95 percent. An additional
 

$7,652,004 was spent for salaries and
 

wages to local households. No estimate
 

has been made of the impact of additional
 

earned and other income by institutional
 

employee households, which in some instances was as high as 15 percent.
 

Guest artist spending. Each year, cultural institutions contract with nonresident
 

designers, directors, conductors, featured
 

soloists, touring groups, and others. These
 

nonresident "guest artists" were reported
 

to have spent a total of $119,576 locally.
 

No attempt has been made to estimate spending by guest artist entourage.
 

Table IV-2 St. Louis SMSA selected businesses related to arts and culture 

Businesses Number Employees Payroll
 

Television-radio enterprises i16 513 $ 4,531,000 

Music and record stores 62 413 $ 2,520,000 

Bookstores 35 238 $ 1,338,000 

Photography stores 32 208 $ 1,118,000 

Movie theatres (except drive-ins) 46 626+ ~ 2,251,000+ 

Total 291 1,998+ $11,758,000+ 

56
 
 

 

Table IV-3 St. Louis SMSA estimated direct economic effects of examined institutions 

Local institution expenditures
 

for goods and services
 

Employee salaries and wages
 

Local audience spending (other
 

than ticket price)
 

Sole-reason visitor spending
 

Guest artist spending
 

Total
 

*Less than 1 percent.
 

Total
 

$ 5,248,714
 

$ 7,652,004
 

$ 6,600,197
 

$ 1,290,134
 

$ 119,576
 

$20,910,625
 

Percent
 

of total 


direct
 

spending 


25%
 

37%
 

32%
 

6%
 

---*
 

100%
 

Single institution
 

Lowest Highest
 

$60,600 $1,414,789
 

$50,043 $3,490,612
 

7,326 $i,269,028
 

2,472 $ 391,313
 

0 $ 56,980
 

57
 
Table IV-4 St. Louis SMSA estimated audiences and spending by examined institutions 

Audience 

Nonlocal 

Institution Loca! Nonlocal 

(sole 

reason) 

Institution 

total 

Dance Concert Society 8,,923 672 409 9,595
 

Loretto-Hilton Repertory Theatre 118,726 6,249 1,590 124,975
 

McDonnell Planetarium 193,946 79,217 4,024 273,163
 

Missouri Botanical Gardens 194,596 119,268 7,383 313,864
 

Museum of Science and
 

Natural History 114,945 30,555 2,221 145,500
 

St. Louis Art Museum
 574,221 212,383 11,936 786,604
 

St. Louis Conservatory and
 

School for the Arts (CASA) 7,326 227 76 7,553
 

St. Louis Symphony Orchestra 783,289 58,957 12,033 842,246
 

Total 1,995,972 507,528 39,672 2,503,500
 

58
 
 

Audience spendinm. Decisions regarding
 

the handling of audience data can have a
 

major impact on economic effect estimates.
 

This study’s conservative approach was to
 

include the ancillary spending of nonloca! visitors only if attendance at the
 

arts event was their sole reason for belng
 

in the community. This protocol is discussed in Chapter i. At some institutions,
 

however, sole-reason vlsitors are only a
 

small percentage of total visitor attendance and spending. Many visitors indicated
 

that they had planned ahead of time to attend a cultural activit~ although that was
 

not the sole reason for their visit. Table
 

IV-4 presents a summary of audience data
 

for St. Louis.
 

An estimated 507,528 visitors from outside
 

the SMSA attended the examined institutions
 

during fiscal 1978. They comprised from
 

2.6 percent to 38.4 percent of total attendance depending on the institution. Of
 

these visitors, 39,672 are estimated to
 

have visited St. Louis specifically to attend the institutions under study.
 

Audience spending
 

Nonlocal
 

(sole
 

Lo~al Nonlocal reason)
 

$ 26,769 $ 98,990 $ 13,301
 

$ 455,908 $ 920,519 $ 51,707
 

$ 647,780 $11,669,189 $ 130,860
 

$ 646,059 $17,568,967 $ 240,095
 

$ 132,187 $ 4,500,954 $ 72,227
 

$1,269,028 $31,285,424 $ 388,159
 

$ 7,326
 $ 33,439 $ 2,472 .


$3,415,140 $ 8,684,757 $ 391,313
 

$6,600,197 $74,762,239 $1,290,134
 
 

 

Table IV-5 St. Louis SMSA audiences of examined institutions by residence and spending 

Average for
 

all institutions
 

Audience residence
 

In St. Louis
 

17.6%
 

Outside St. Louis but in SMSA
 62.1%
 

Outside SMSA
 20.3%
 

Audience spending 

Percent of local audience reporting 63.0% 

Per capita spending S 3.31 

Sole-reason nonlocal audience per 

capita spending $ 32.52 

Not sole-reason nonlocal audience 

per capita spending $157.04 

*Due to small sample sizes, analysis of nonlocal audience
 

data was not conducted by individual institutions.
 

Single institution range
 

Lowest Highest
 

12.4% 26.1%
 

42.4%
 82.5%
 

2.6%
 38.4%
 

26.0% 78.0%
 

$i.00
 $4.36
 

---,
 

---,
 

6O
 
As seen in Table IV-5, local audiences
 

spent sums ranging from an average of $1.00
 

to $4.36 uer person per visit for items
 

such as meals and parking. Durinm fiscal
 

1978, local audiences are conservatively
 

estimated to have s~ent $6,600,197 over
 

and above admission fees.
 

As shown in Table IV-6, many other visitors
 

expected to attend while visiting St. Louis,
 

but it was not their sole reason. Visitors
 

from outside the SMSA are of special interest inasmuch as their spending represents "new" dollars, money which had not
 

been in the community until that time.
 

Across all examined institutions, nonlocal
 

sole-reason visitors traveled a mean of
 

eighty-two miles and reported per capita
 

expenditures of $32.52, resulting in total
 

expenditures of $1,290,134 that can be
 

conservatively attributed to the drawing
 

power of the examined cultural activities.
 

Persons for whom attendance at the cultural institutions was not the sole reason
 

for visitin~ the community traveled a mean
 

of eighty miles and sment $157.04 per capita, totaling $73,472,106. One reason for
 

this large difference is that in the sole-


reason group 22 percent stayed a~ hotels
 

=or a mean o[ 0.69 nights, whereas in the
 

non-sole-reason ~rouD 29 percent stayed at
 

hotels for a mean o~ 4.06 n=ghts.
 

Table IV-6 St. Louis SMSA nonlocal audiences by examined institutions 

Institution
 

Dance Concert Society
 

Loretto-Hilton
 

Repertory Theatre
 

McDonnell Planetarium
 

Missouri Botanical Gardens
 

Museum of Science
 

and Natural History
 

St. Louis Art Museum
 

St. Louis Conservatory and
 

School for the Arts (CASA)
 

St. Louis Symphony Orchestra
 

Nonlocal
 

Audience proportion


sample of total
 

size audience
 

837 6-7%~
 

1,162 5.1%
 

225 28.6%
 

525
 38.4%
 

534 21.4%
 

364 26.8%
 

i16 2.6%
 

728
 7.3%
 

*Because of relatively small nonlocal audiences,
 

these data should be treated with caution.
 

Proportion Proportion
 

of nonlocal of nonlocal
 

who expected who were
 

to attend sole-reason
 

80.4% 6.1%*
 

56.4%* 25.5%*
 

37.3% 5.1%
 

52.1%
 6.2%
 

53.6% 7.3%
 

66.3% 5.6%
 

100.0%* 33.3%*
 

67.3%* 20.4%*
 
Table IV-7	 St. Louis SMSA estimated seconOary 

economic effects 

of examined institutions 

Secondary business volume 

menerated by institutionrelated direct effects $42,246,030 

Secondary personal incomes 

generated by institutionrelated direct effects 

(excluding $7,652,004 

salaries to organizational 

employees) S!5,899,168 

Secondary full-time lobs 

in the St. Louis SMSA 

~ttributable to institutionrelated direct effects 

(excluding 510 full-time 

organizational employees) 2,005 

Initial expansion of the 

local credit base S 6,058,120 

Current value of backup 

inventory, equipment, 

and property $12,445,444 

Seconaary economlc e~fects
 

Direct-effect spending leads to secondary
 

effects when the institution-related expenditures within the community are in turn
 

respent by local firms and households. The
 

study eszlmates the level of five secondary
 

effects of institution-related spending in
 

1978. Respending of initial dollars introduced into the local economy ls estimated
 

to result in $42,246,030 in local secondary
 

business volume. Of this amount, an estimated $15,899,168 is paid out in wages to
 

employees. This personal income represents
 

2,005 fu!l-time jobs in the St. Louis SMSA.
 

Additional secondary effects include an expansion of the local credit base due to
 

deposits in local banks by the examined
 

institutions, their employees, and the
 

local businesses benefiting from institution-related direct effects, it is estimated that in fiscal 1!978 average monthly
 

balances in. business and employee savings
 

and checking accounts totaled $6,641,360.
 

When reduced by federal and state cash reserve requirements, this allows an initial
 

expansion of the credit base totaling
 

$6,058,120.
 

Finally, in fiscal 1978 area firms benefiting from institution-related direct and
 

secondary business act&vity are estimated
 

to have invested $12,445,444 in plant, inventory, and equipment in support of this
 

business volume. This represents the fiscal 1978 value of these assets, not expenditures made in fiscal 1978; a portion of
 

the assets may, however, have been acquired
 

in that year. Expenditures were not necessarily made with local firms. Table
 

IV-7 presents estimates for each of the
 

secondary effects discussed above.
 

Government revenues and expenditures
 

In addition to estimating the direct and
 

secondary effects on businesses and individuals attributable to the examined institutions, this study has sought to estimate
 

the effect on local St. Louis government
 

revenues and expenditures in fiscal 1978.
 

Local governmental revenues examined include real estate taxes paid to metropolitan area jurisdictions by the examined institutions and their employee households,as
 

wel! as a portion of property taxes paid by
 

businesses benefiting from institution-related direct effects. Estimates were also
 

made of local sales and income tax revenues
 

attributable to institution-related direct
 

effects. Additional governmental revenues
 

identified include local hotel taxes, gasoline taxes, and parking revenues. Government expenditures in support of examined
 

institutions included grants, operating
 

subsidies, and services, contracts; these
 

are presented in Table IV-8. No allowance
 

is made for foregone property taxes.
 
 

Table IV-8 St. Louis SMSA examined institutions by sources of government support 

Institution Federal State Local Total
 

Dance Concert Society $ 29,451 64,144 5 0 $ 30,000
 

Loretto-Hilton 

Repertory Theatre $ 106,626 S 1i5,000 276,626 

McDonnell Planetarium $ 0 0 $ 291,025 291,025 

Missouri Botanical 

Gardens $ $ 40,000 S 40,000 S 80,000 

Museum of Science 

and Natural History 0 S 538,22Z S 538,225 

St. Louis Art Museum 5215,000 81,780 $2,108,372 $2,405,152 

St. Louis Conservatory 

and School for the Arts
 

(CASA) $333,906 17,300 S 0 s 351,206
 

St. Louis Symphony Orchestra 5169,682 770,947 $ 282,876 s1,223,505
 

Total $803,039 SI,080,797 $3,375,498 $5,259,334
 
 

Table iV-9	 St. Louis SMSA
 

estimated revenues and costs
 

to local government

related to examined institutions 

Revenues
 

3eal estate taxes paid
 

by the arts institutions,
 

their employees, and business property servlng them. 683,664
 

Locally retained sales
 

tax on institution-


related business volume $ 163,500
 

Local income tax revenues
 

attributable to institutional employees 012
 

State aid to local governments attributable to
 

institutional employee
 

households $ 134,400
 

Hotel taxes	 4,266
 

Restaurant tax	 $ 69,955
 

Parking revenues, estimated $ 262
 

Total	 $1,117,059
 

Costs
 

Operating costs of local
 

governments and schools
 

for services to employee
 

households	 $ 611,937
 

Direct appropriations to
 

three of the institutions $2,937,622
 

Grants to study institutions s 437,876
 

Total	 $3,987,435
 

~!stimates of costs to [ocai covernments in
 

the St. Louis area are also based on estimates of local <over,mental o~eratinc
 

=osts associated with services to employee
 

households, includinc costs of mublic instruction for households with children ~n
 

nublic schools but excludinm costs assoc=­

aned with services to the institutions
 

nhemselves. Table iV-9 summarizes institutlon-related covernmental costs and revenues.
 

Included as cosns are local governmental
 

crants and fees for services. In revmewing Table [V-9, the limited nature of nhrs
 

analysis should be kent in mind. No ~nformation is available by which to judge
 

whether or not the identified effects on
 

buslness, individuals, and government are
 

typical of the broader universe of all St.
 

Louis area cultura! institutions. The tax
 

effects shown are snecific to the examined
 

mix of institutions.
 

Revenues to local government include real
 

estate taxes and taxes on business property, income taxes, sales taxes, local
 

hotel taxes, gasoline taxes, restauran~
 

taxes, state aid to local governments,
 

and parking revenues. These totaled
 

$1,117,059 in local government revenues
 

attributable to the examined institutions.
 

An employee survey indicated that employees
 

at examined institutions contribute to both
 

costs and revenues of government. They live
 

in the city or the county of St. Louis; approximately 46 percent of them pay taxes as
 

homeowners; they report a total of 224 children in local public schools.
 

Sales, income, and property tax estimates
 

are undoubtedly conservative inasmuch as
 

no estimate has been made of taxes paid
 

by individuals benefiting from institution-related secondary effects. In addition, no attempt has been made to assess
 

the incidental effects of institutional
 

activities on surrounding taxable property values, which may be positive or
 

negative. Finally, no attempt has been
 

made to assess the governmental costs or
 

benefits associated with the more suDtle
 

effects discussed in the overview.
 

Costs to local government included operating costs of local governments and
 

schools, local government grants to the
 

examined institutions, and direct appronriations for a total cost to local government of $3,987,435. As noted earlier, this
 

does not include additional costs that may
 

be associated with snecmfic governmental
 

services to the examined institutions.
 
CHAPTER V
 

THE SALT LAKE CITY ECONOMY A~D
 

ARTS AND CULTUP~.L II~STITUTIONS
 

The following institutions in the Salt
 

Lake City Standard Metrooolitan Statistical
 

Area or SMSA were selected for study by the
 

Utah Arts Counczl:
 

Ballet West
 

Pioneer Memorial Theatre
 

Repertory Dance Tkeatre
 

Salt Lake t.rt Center
 

Theatre 138
 

Tiffany’s Attic
 

Utah Museum of Fine Arts
 

Utah Symphony
 

Utah Omera Company
 

Ririe-Woodbury Dance Company
 

These remresent a range of organizational
 

types and ~nclude some of the more well­

.known local institutions. Their selection
 

resulted from locally initiated ef[orts
 

to identify interested organizations.
 

The successful completion of the Salt Lake
 

City project was due to the efforts of a
 

number of persons, including the principal
 

project staff of the Arts Council. Ruth
 

Draper, director of the Counci!, served
 

as study director and John M. Garbett, a
 

graduate student at the University of Utah
 

and an intern at the Council, was responsible for coordinating the day-to-day tasks.
 

M. Kristin Wallengren Garbett helDed supervise the audience surveys. Other staff
 

~rsons and volunteers who actively participated in the project are identified
 

at the end of this report.
 

Salt Lake City institutions
 

Ballet West was founded in 1963 as the Utah
 

Civic Ballet by William F. Christensen and
 

Mrs. John M. Wallace. The ballet performs
 

in the Capitol Theatre (the restored Orpheum) , which reopened October 18, 1978.
 

The Capitol mrovides office and performance facilities for Ballet West, Repertory
 

Dance Theatre, and Ririe-Woodbury Dance
 

Company. The i978-79 season included 120
 

performances bv :hlr~y-nine dancers.
 

The Repertory Dance Theatre was formed in
 

1965 as the result of a martnershim between hhe Rockefeller Foundation and the
 

University of Utah. In 1977, the university terminated its financial liability
 

with all organizations and activities not
 

involved in full-time, in-class teaching.
 

The organization’s founder, the late Virginia Tanner, also founded Salt Lake City’s
 

Salt Lake City 

Standard Metropolitan 

Statistical Area (SMSA) 

9ase~ on U S Oe~t a~ Commerce 8u,eau o: [he Census
 

Cu~rentPo~uiat~onReDor~s Series P-26
 

Children’s Dance Theatre. This professional modern dance company has a repertoire of over one hundred pieces.
 

The Utah Opera Company was founded in 1976,
 

largely due to the initiative of a native
 

son of Utah, the tenor Glade Patterson.
 

The company performs in the Capitol Theatre.
 

The 1978-79 season consisted of three productions with twelve performances. The company’s opera-in-the-schools program involved
 

free operatic programs in approximately
 

fifty schools throughout the state.
 

Pioneer Memorial Theatre grew out of the
 

University of Utah’s Theatre Department
 

in 1962 under the chairmanship of Dr. C.
 

Lowell Lees. It is housed on the campus
 

of the university and presents approximately 120 performances a year, utilizing
 

the talents of some four hundred artists.
 

Each year one of its productions tours
 

throughout Utah. The Children’s Theatre
 

Season, consisting of four plays, is also
 

presented annually.
 

The Utah Symphony omened its fortieth season in September 1979, with concerts inaugurating its newten-million-dollar home,
 

Symphony Hall. The orchestra presents over
 

two hundred concerts each season, and under
 

the direction of maestro Maurice Abravanel,
 

grew from an obscure ensemble to one of
 

the country’s major .symphony orchestras.
 
 

Table V-1 Salt Lake City SMSA demographics 

Age (1977) 

!8-24 13.8% 

25-34 15.8% 

35-49 14.7% 

50 and over 18.9% 

Median age 24.7 

The Salt Lake Art center opened its doors
 

in 1933 in the Salt Lake A}t Barn,a structure developed through the donated design
 

and construction efforts of individual
 

artists, con~munity members, and the Salt
 

Lake City Corporation. In May 1979 the art
 

center moved into new quarters in downtown
 

Salt Lake City next to Symphony Hall. The
 

center presents forty to fifty changing
 

exhibitions per year, half of which feature Utah artists. It maintains a school
 

offering approximately thirty professionally taught classes, and houses a sales
 

shop where buyers may purchase works by
 

Utah artists and craftsmen. It is the home
 

of the Utah Media Center, a forum for film
 

and video studies, and offers its space
 

for other cultural programs including music, theatre, and dance.
 

Theatre 138 was created in 1966 by three
 

energetic individuals: Ariel Ballif, artistic director; Tom Carlin, house manager;
 

and Stewart Falconer, production manager.
 

The theatre owns its building, located in
 

downtown Salt Lake City, and presents 175
 

to two hundred performances each year,
 

employing nine to twelve artists for each
 

performance. It is host to the Utah Arts
 

Council’s playwriting competition, offers
 

a children’s theatre workshop throughout
 

the year, and gives individua! acting instruction. Theatre 138 features a yearly
 

operetta and an annual musical. With Utah
 

Arts Council support, it offers a series
 

Education (1970)
 

Less than 5 years
 

1.8%
 

4 years of high school or more
 68.5%
 

4 ,years of cellege or more
 15.0%
 

Median education 12.5
 

producing new scripts by Utah playwrights.


The Utah Museum of Fine Arts is the pri.­

mary cultural resource for the visual arts
 

in the State of Utah. Founded in 1951, it
 

moved into a new building on the campus of the
 

University of Utah in 1970, and operates under


the direction of E. Frank Sanguinetti. The
 

museum presents a continuous series of
 

temporary exhibitions which bring to the
 

region treasures from other museums and
 

private collections. These reinforce the
 

museum’s own collection which is always
 

on view. Throughout the year, local and
 

national performing artists perform in the


museum’s galleries and 420-seat auditorium.
 

Chamber music series, poetry readinqs,film
 

series, and dance concerts are incl6ded in
 

its programming. The museumpresents guided
 

tours, gallery talks, and a docent training
 

course. A series of fifteen to twentv traveling exhibitions from the museum’s collections are available free of charge to
 

schools, galleries, churches, libraries,
 

and other nonprofit organizations. Selected objects from the m6seum’s collection
 

are made available to Utah teachers for
 

use in the classroom.­

The Ririe-Woodburv Dance Company was created in 1964 by co-~irectors JSan Woodburv
 

and Shirley Russon Ririe. Throumhout th$
 

year it presents some fifty forial concerts and sixty lecture-demonstrations, including two home seasons at the Capitol
 

Theatre in Salt Lake City. This modern
 

66
 
Population (selected years) Household income (1977)
 

1960 383,035 

1970 705,458 

1975 782,845 

1977 823,200 

Population change 

1960-1970 +22.4% 

1970-1975 +11.1% 

dance company offers narrated concerts,
 

children’s shows, demonstrations, narrated
 

community performances, choreography for
 

children, teacher workshops, parent-child
 

workshops, and production workshops and
 

seminars.
 

Salt Lake economy and the broader cultural
 

community
 

An examination of the economy and broader
 

cultural community of the Salt Lake SMSA
 

contributes to an understanding of the effects ascribed to the ten examined institutions. Table V-I presents useful market
 

data such as the Effective Buying Income
 

(EBI) , a measure of the buying power of
 

households after government deductions
 

for taxes, social insurance, and lesser
 

items; it also shows income, age, education,
 

and population information.
 

The Sal: Lake City/Ogden SMSA consists of
 

the Utah counties of Salt Lake, Tooele,
 

Davis, and Weber. In this study, tile terms
 

"local[," "the Salt Lake City/Ogden metro-


poli:~n area," and "the Salt Lake City/
 

Ogden region" are used interchangeahly to
 

identlfy the S:ait Lake City!Ogden SMSA. In
 

1978 zhe Salt Lake Cit%,iOgden SMSA was
 

timated to have a total momu!ation o~ 839,600
 

(Community Data Inventory, information
 

supplied bv the Bureau of Economic and
 

Business Research, University of Utah).
 

Salt Lake City itself had an estimated
 

$8,000-$9,999 ~.8% 

Si0,000-S14,999 19.4% 

$15,000-$24,999 35.2% 

$25,000 and over 18.6% 

1977 median household income
 S15,886
 

1969 median household income
 S 9,952
 

Average annual ch~noe in
 

per cacita income 1969-74 8.0%
 

populat£on of 176,200 in 1977 (Sales and
 

Marketing Management, Vol. 121, No. 2,
 

July 24, 1978, P.C.--211).
 

Salt Lake City is the state capitol of Utah
 

and the seat of Salt Lake County. The city
 

was founded in 1847 by Brigham Young and
 

approximately 1,700 settlers. Since the
 

early !900s, the local copper mines and
 

the Geneva steel plant in Utah Valley have
 

greatly contributed to the growth of metal
 

fabricating indus.tries. Other major industries include food processing, printing
 

and publishing, oil refining, the manufacture of clay products, radio equipment,
 

electronics, and textiles.
 

Salt Lake County a!one contalns twenty companies that employ over one thousand workers each and an additional thirty firms
 

that employ between five hundred ant one
 

thousand workers (Major Non-Agricultural
 

and Non-Governmental Employers, Salt Lake
 

Area Chamber of Commerce, February 1979!.
 

In 1977 the county’s civilian labor force
 

numbered 254,400, with 27 percent in wholesale and retail trade, 18.8 percent employed
 

by governments, 17.6 percen: in service and
 

miscellaneous industries, 15.3 percent in
 

manufacturing, 7.6 percent in transportation, communication, and utilities, 6.1
 

percent in financial and insurance companies, 5.7 percent in construction, and 2.6
 

percent in mining. Eighty-eight percent
 

of the nonagr~culturai work force ~s un67
 
 

affiliated with any union ("Salt Lake Spectrum," Salt Lake Area Chamber of Commerce,
 

9t. of Economic Development).
 

it Lake City is the geographic center of
 

:e eleven western states, and is the hub
 

of the interstate highway system, the western railroad network, and the west’s air
 

traffic system. The area’s transportation
 

network has sixteen major trucking firms,
 

four Class I railroads, and an internation­

~i airport served by six magor airlines.
 

Educational facilities include the University of Utah with approximately 25,000
 

students, the Utah Technical College,Westminster College, and Weber State College.
 

Among cultural facilities are the Pioneer
 

Museum, the Planetarium, the Natural History Museum, and the Hogle Zoo, all located
 

in Salt Lake City. Other cultural activities available to residents and visitors
 

range from chamber music recitals at the
 

Utah Museum of Fine Arts to rock concerts
 

at the twenty-million-dollar Salt Palace.
 

The examined institutions were selected
 

from the many nonnrofit arts and cultural
 

organizations in the Salt Lake City SMSA.
 

Although these ten may perhaps typify the
 

inrpact of various types of institutions,
 

they do not represent the full range of
 

locally available commercial and n~nprofit
 

activities. It is clear that the examined
 

institutions do not exhaust the impact of
 

the "culture industry." For example, cen-


Table V-2 

sus data for 1970 sho~ a total of 1,585
 

employed writers, artists, and entertainers in the Salt Lake City SMSA, excludin~
 

individuals employed in art galleries and
 

other arts-related positions (Where Artlsts
 

Live: 1970, Research Division Retort $5,
 

Washington: ?]ational Endowment f~r the At<s,
 

1977; see list at back of this retort) .
 

Only seventy-five persons were em~loved
 

~ull time at the examined institutions.
 

The yellow nages of the Salt Lake metronolitan area telephone directory list over one
 

thousand enterprises which c~n be consldered culture-related in the broadest sense.
 

These range from music, art, and theatrical
 

suppliers to book and record dealers,
 

design firms, and commercial photogranhers.
 

Data on the impact of some elements of
 

these cultural business sectors are available from the 1977 statistics in the U.S.
 

Bureau of the Census County Business Patterns series. Table V-2 details various
 

data on businesses used by the general nublic.
 

Direct economlc effects
 

The direct economic e =
 f~ects of the exam­ ined institutions include local spending
 

for goods and services, salaries andwaoes
 

to local residents, and expenditures ~y
 

guest artists and by local and nonlocal
 

audiences. Table V-3 presents selected
 

data on institutional direct effects during fiscal 1978.
 

Salt Lake City SMSA selected businesses related to arts and culture 

Businesses
 

Television-radio enterprises
 

Music and record stores
 

Bookstores
 

Photography stores
 

Movie theatres (except drive.ins)
 

Total 


Number Employees Payroll
 

36 203 

35 254 

15 186+ 

7 73 

41 496 

134 1,212+ 

$1,494,000
 

51,808,000
 

$ ~.i.
 

$ 253,000
 

$i, 388,000
 

$4,943,000
 
 

Table V-3 Salt Lake City SMSA estimated direct economic effects of examined institutions 

Local institution expenditures
 

for goods and services
 

Employee salaries and wages
 

Local audience spending (other
 

than ticket price)
 

Sole-reason visitor spending
 

Guest artist spending
 

Total
 

*Less than 1 percent.
 

Total
 

$1,804 405 

$3,115 024 

$ 749 467 

S 381,491 

$ 30,110 

$6,080,497
 

Percent 

of total 

d~rect 

spending 

30%
 

51%
 

12%
 

6%
 

100%
 

Single institution
 

Lowest Highest
 

Sli,486 $ 654,365
 

$14,100 $1,646,820
 

5,933 $ 216,689
 

4,375 $ 102,700
 

0 $ 23,782
 

69
 
Table V-4 Salt Lake City SMSA estimated audiences and spending by examined institutions 

Audience
 

Nonlocal
 

(sole Institution
 Institution Local
 Nonlocal reason) total
 

Ballet West 61,033 8,323
 3,052 69,356
 

Pioneer Memorial Theatre 95,880 ’ 6,120
 2,244 i02,000
 

Repertory Dance Theatre 10,044 756
 551 10,800
 

Ririe-Woodbury Dance Company 12,555
 945 689 13,500
 

Salt Lake Arts Center 9,500 500 200
 i0 000
 

Theatre 138 7 493
 741
 156 8 234
 

Tiffany’s Attic 2 025
 475 130
 2,500
 

Utah Museum of Fine Arts 60,520 7,480 1,224
 68,000
 

Utah Opera Company 7,416
 824 396
 8 240
 

Utah Symphony 50 528
 5,614 2,695 56 142
 

Total 316,994 31,778 11,337
 348,772
 

7O
 
Local institutional expenditures for goods,
 

services, and salaries. It is estimated
 

that the examined institutions made 60 percent of their expenditures for goods and
 

services with local vendors and that this
 

totaled $1,804,405. The percentage of non-


labor expenditures made locally by the examined institutions ranged from 30 percent
 

to 97 percent. An additional $3,115,024
 

was spent for salaries and wages to loca!
 

households. No estimate has been made of
 

the impact of additiona! earned and other
 

income by institutional employee households, which in some instances was almost
 

25 percent.
 

Guest artist sDendinm. Each year, cultural institutions contract with nonresident
 

designers, directors, conductors, feature~
 

soloists, touring groups, and others. These
 

nonresident "guest artists" were reported
 

to have spent a total of $30,110 locally.
 

No attempt has been made to estimate spending by guest artist entourage.
 

Audience spending
 

Nonlocal
 

(sole
 

Local Nonlocal reason)
 

$208 733 $ 652,902 $102,700 

$216 689 $ 480,086 $ 75,511 

$ 29,128 $ 59 305 $ 18,541 

$ 36,410 $ 74 131 $ 23,185 

$ 10,355 $ 39 223 $ 6 730 

$ 21 954 $ 58,128 $ 5,249 

$ 5 933 $ 37,262 $ 4 375 

$ 56 284 $ 586,772 $ 41 188
 

$ 20,987 $ 64,639 $ 13 325
 

$142,994 $ 440,393 $ 90,687
 

$749,467 $2,492,841 $381,491
 

71
 

Audience spend!ha. Decisions regarding
 

the handling of audience data can have a
 

major impact on economic effect estimates.
 

This study’s conservative approach was to
 

include the ancillary spending of nonlocal
 

visitors only if attendance at the arts
 

event was their sole reason for being in rhe
 

cummunity. This nrotoco! is discussed in
 

Chapter I. At some insti:utlons, however,
 

sole-reason visitors are only a small ~ercentace of tota! visitor attendance and
 

spending. 3{any VlSltOrS indicated that
 

they had planned ahead of time to attend
 

althouch ti~at was non the sole re~son for
 

their visit. Table V-4 presents a summar~,
 

of audience date for Salt Lake City. An
 

estimated 31,778 visitors from outside
 

the SMSA attended the examined institutions during fiscal 1978. They comprised
 

from 5 percent to 18.9 percent of total
 

attendance depending on the institution:
 

Of these visitors, 11,337 are estimated
 

to have visited Salt Lake City specmficaiiv to attend the institutions under study.
 
 

Table V-5 Salt Lake City SMSA audiences of examined institutions by residence and spending 

Single institution range
 Average for
 

all institutions
 Lowest Highest
 

Audience residence
 

In Salt Lake City
 55.5% 26.0% 69.4%
 

Outside Salt Lake City but in SMSA
 35.4%
 25.2%
 60.5%
 

Outside SMSA
 9.1%
 5.0% 18.9%
 

Audience spending
 

Percent of local audience reporting
 57.0% 25.0% 85.0%
 

Per capita spending
 $ 2.36
 $0.93
 $3.42
 

Sole-reason nonlocal audience per
 

capita spending
 $ 33.65 ---.
 

Not sole-reason nonlocal audience
 

per capita spending
 $103.29 ---, ___,
 

*Due to sample small sizes, analysis of nonlocal audience
 

data was not conducted by individual institutions.
 
As seen in Table V-5, loca! audiences snent
 

sums ranging from an average of $0.93 to
 

$3.42 per person per visit for items such
 

as meals and parking. During fiscal 1978.


local audiences are conservatively estimated to have spent $749°467 over and above
 

admission fees.
 

As shown in Table V-6, many other visitors
 

expected to attend while visiting Salt Lake
 

City, but it was not their sole reason.
 

Visitors from outside the SMSAare of special interest inasmuch as their spending
 

represents "new" dollars, money which had
 

not been in the community until that time.
 

Across all examined institutions, nonlocal
 

sole-reason visitors traveled a mean of
 

sixty-three miles and remorted per capita
 

expenditures of $33.65, resulting in total
 

exmenditures of $381,491 that can be conservativeiy attributed to the drawing
 

power of the examined cultural activities.
 

Persons for whom attendance at the cultural institutions was not the sole reason
 

for visiting the community traveled a mean
 

of sixty-one miles and sment $103.29 per
 

capita, totaling $2,111,351. One reason
 

for this large difference in expenditures
 

is that in the sole-reason croup 12 percent
 

stayed at hotels for a mean 0.80 night~, and
 

in the non-sole-reason group 25 percent
 

stayed at hotels for a mean 6.49 nights.
 ~
 

Table V-6 Salt Lake City SMSA nonlocal audiences by examined institutions 

Institution
 

Ballet West
 

Pioneer Memorial Theatre
 

Repertory Dance Theatre
 

Ririe-Woodbury Dance Company
 

Salt Lake Arts Center
 

Theatre 138
 

Tiffany’s Attic
 

Utah Museum of Fine Arts
 

Utah Opera Company
 

Utah Symphony
 

Nonlocal 

Audience 

sample proportion 

of total 

size audience 

1,682 12.5% 

1,330 5.8% 

315 6.7% 

N.A. 

161 5.0% 

266 9.2% 

291 18.9% 

178 10.9% 

N.A. N.A. 

879 9.6% 

Proportion 

of nonlocal 

Proportion 

of nonlocal 

who expected who were 

to attend sole-reason 

75.2% 36.4% 

58.8% 37.3% 

83.3%* 72.2%* 

N.A. N.A. 

60.0%* 40.0%* 

52. 6%* 21.1%* 

65.9% 27.3% 

61.1%* 16.7%* 

N.A. N.A. 

66.7% 48.3% 

*Because of relatively small nonlocal audience,
 

these data should be treated with caution.
 

73
 
 

Secondary economic effects
 

Direct-effect spending leads to secondary
 

effects when the institution-related expenditures within the community are in turn
 

respent by local firms and households. The
 

study estimates the level of five secondary
 

effects of institution-related spending in
 

1978. Respending of initial dollars introduced into the !ocal economy is estimated
 

to result in $9,978,282 in local secondary
 

business volume. Of this amount, an estimated $3,876,184 is paid out in wages to
 

employees. This personal income represents
 

631 full-time jobs in the Salt Lake City SMSA.
 

Additional secondary effects include an expansion of the local credit base due to
 

deposits in local banks by the examined
 

institutions, their employees, and the
 

local businesses benefiting from institution-related direct effects. It is estimated that in fiscal 1978 average monthly
 

balances in business and employee savings
 

and checking accounts totaled $3,169,229.
 

When reduced by federal and state cash reserve requirements, this allows an initial
 

expansion of the credit base totaling
 

$2,970,735.
 

-Finally, area firms benefiting from institution-related direct and secondary business activity are estimated to have invested $2,408,853 in plant, inventory, and
 

equipment in support of this business volume. This represents the fiscal 1978
 

value of these assets, not expenditures
 

made in fiscal 1978; a portion of these
 

assets may, however, have been acquired in
 

that year. Expenditures were not necessarily made with local firms. Table V-7
 

presents estimates for each of the secondary effects discussed above.
 

.Government revenues and expenditures
 

In addition to estimating the direct and
 

secondary effects on businesses and individuals attributable to the examined
 

institutions, this study has sought to estimate the effect on local Salt Lake City
 

institutions supported by government revenues as seen in Table V-8 in fiscal 1978.
 

Research on the implications of economic
 

impact data for regional cost-sharing of
 

arts and cultural institutions by the several units of government that comprise a mettropolitan area can be found in David Cwi’s
 

"Regional Cost-Sharing of Arts and Cultural
 

Institutions," Northeast Regional Science
 

Review, Vol. 9, 1979.
 

Table V-7
 Salt Lake City SMSA

estimated secondary

economic effects 

of examined institutions 

Secondary business volume
 

generated by institution-


related direct effects
 

Secondary personal incomes
 

generated by institution-


related direct effects
 

(excluding $3,115,024 in
 

salaries to organizational
 

employees)
 

Secondary full-time jobs
 

in the Salt Lake City SMSA
 

attributable to institution-


related direct effects
 

(excluding 75 full-time
 

organizational employees)
 

Initial expansion of the
 

local credit base
 

Current value of backup
 

inventory, equipment,
 

and property
 

$9,978,282
 

$3,876,184
 

631
 

$2,970,735
 

$2,408,853
 

74
 
Table V-8 Salt Lake City SMSA examined institutions by sources of government support 

Institution
 

Ballet West
 

Pioneer Memorial Theatre
 

Repertory Dance Theatre
 

Ririe-Woodbury Dance Company
 

Salt Lake Arts Center
 

Theatre 138
 

Tiffany’s Attic
 

Utah Museum of Fine Arts
 

Utah Opera Company
 

Utah Symphony
 

Total
 

Federal
 

67,000
 

12,000
 

24,480
 

66,110
 

15,000
 

7OO
 

N.A.
 

N.A.
 

$515,000
 

$700,290
 

State
 

$194 200
 

$ 8O 000
 

$ 45 000
 

$ 40 230
 

$ 26 000
 

S 8 200
 

N.A.
 

N.A.
 

$ 37,000
 

$375,000
 

$883,930
 

Local
 

32,800
 

$254,000
 

14 , 362
 

4,000
 

7,500
 

N.A.
 

N.A.
 

2,800
 

70,000
 

$385,462
 

Total
 

294,000
 

346,000
 

83,842
 

110,340
 

48,500
 

8,900
 

N.A.
 

N.A.
 

39,800
 

960,000
 

SI,891,382
 
 

 

 

Table V-9	 Salt Lake City SMSA

estimated revenues and costs 

to local government

related to examined institutions 

Revenues
 

Real estate taxes paid by
 

the institutions, their
 

employees, and business
 

property serving them
 $306,794
 

Locally retained sales
 

tax on institution-


related business volume
 $ 26,755
 

Local income tax revenues
 

attributable to institutional employees
 $ 0
 

State aid to local governments attributable to
 

institutional employee
 

households $ 66,192
 

Hotel taxes
 $ 758
 

Parking revenues, estimated
 $ 5,181
 

Total
 $405,680
 

Costs
 

Operating costs of local
 

governments and schools
 

for services to employee
 

households	 $250,128
 

Grants to 8 study institutions
 $385,462
 

Total
 $635,590
 

Estimates of costs to local governments in
 

the Salt Lake City area are based on estimates of local governmental operating costs
 

associated with services to employee households, including the cost of public instruction for households with children in
 

the public schools, but excluding costs
 

associated with services to the institutions themselves. Table V-9 summarize institution-related governmental costs and
 

revenues. Included as costs are local
 

governmental grants and fees for services.
 

In reviewing Table V-9, the limited nature
 

of this analysis should be keot in mind.
 

No information is available by which to
 

judge whether or not the identified effects
 

on business, individuals, and Government
 

are typical of the broader universe o~
 

Salt Lake City area cultural institutions.
 

The tax effects shown are specific to the
 

examined mix of ins[itutions.
 

Revenues to local government include real
 

estate taxes, taxes on business property
 

devoted to serving the institutions, income taxes, sales taxes, local hotel taxes,
 

state aid to local governments, and parking revenues. These totaled $405,680 in
 

local government revenues attributable to
 

the examined institutions. An employee
 

survey indicates that employees at the
 

examined institutions contribute to both
 

costs and revenues of government. They
 

live in the city of Salt Lake or in Salt
 

Lake County, and approximately 54 percent
 

of them pay taxes as homeowners; they report a total of 109 children in local public schools.
 

Sales, income, and property tax estimates
 

are undoubtedly conservative inasmuch as
 

no estimate has been made of taxes paid
 

by individuals benefiting from institution-


related secondary effects. In addition, no
 

attempt has been made to assess the incidental effects of institutional activities
 

on surrounding taxable property values,
 

which’ may be positive or negative. Finally,
 

no attempt has been made to assess the governmental costs or benefits associated with
 

the more subtle effects that may result
 

from the arts, which are discussed in the
 

overview.
 

Costs to local government include operating
 

costs of local governments and schools and
 

local government grants to [he examined
 

institutions for a total cost to local government of $635,590. As noted earlier,
 

this does not include additional costs that
 

may be associated with specific governmental services to the examined institutions.
 

76
 
CHARTER 

THE SAN ANTONIO ECONOMY AND
 

ARTS AND CULTURAL INSTITUTIONS
 

The following institutions in the San
 

Antonlo Standard Hetromoiitan Statistical
 

Area or SMSA were selected for study by
 

the Arts Counc±l of San Antonio:
 

San Antonio Symphony
 

San Antonio Opera
 

Carver Cultural Center
 

Witte :[useum
 

Huseum of Transnortation
 

These reoresent a range of organizational
 

types and include some of the more well-


known local institutions. Their selection
 

resulted from locally initiated efforts
 

to identify interested organizations.
 

The successful completion of the San
 

Antonio project was due to the effort of
 

a number of persons, including the principal project staff of the Arts Council.
 

Robert Canon, executive director of the
 

Council, served as study director and
 

Nancy Broomall, the Council’s assistant
 

director, was responsible for coordinating the day-to-day tasks. Other staff
 

persons and volunteers who actively participated in the project are identified
 

at the end of this report.
 

San Antonio institutions
 

T~e Symphony Society of San Antonio consists of the San Antonio Symphony and the
 

San Antonio Symphony Opera. The symphony
 

was founded in 1939 and currently gives
 

over 165 performances annually, including
 

a subscription series of fourteen concerts,
 

a pop serles, a mastersingers series, a
 

series of children’s concerts, and three
 

opera productions.
 

The Carver Co~unitvCultural Center opened
 

!n 1977. Constructed in 1929 and originally called the Colored Library-Auditor.~um, iz was renamed the Carver Library
 

Auditorium in 1938 and served the black
 

community, but currently programs in the
 

wisual and performing arts are offered to
 

persons of al! cultural and socioeconomic
 

backgrounds. Activities include workshops
 

and lecture demonstrations to proyide opportunities for study and learning from
 

the arts professions, classes and train-


ins to stimulate local artistic expression and creativity, and performances and
 

exhibitions of professional artists and
 

companies. The Carver Community Cultural
 

Center is a division of the City of San
 

77
 

San Antonio 

Standard Metropolitan

Statistical Area (SMSA) 

°SAN ANTONIO/ 

Based on U S Oeot ol Comme ce, 8uleau of me Census.
 

Currenl PoDula ~on ReDof[s, Ser es P-26
 

Antonio and all events are free to the
 

pub i ic.
 

The San Antonio Museum Association, established in 1923, opened its first facility, the Witte Museum, in 1926. The
 

Witte was originally devoted to displays
 

of natural history and science but through
 

the years it developed and acquired collections of art, archaeology, early Texas
 

furniture and decorative arts, photography.
 

transportation, and ethnic arts. A second
 

facility, the San Antonio Museum of Transportation, opened in 1969. The museum association has been completing work on the


San Antonio Museum of Art, an adaptive reuse of the former Lone Star Brewery industrial complex. The museum association also
 

conducts educational, publications, and
 

cor~munitv outreach programs.
 
Table VI-1 San Antonio SMSA demographics 

Age (1977)
 

18-24 14.8% 

25-34 14.2% 

35-49 15.4% 

50 and over 21.1% 

Median age
 25.5
 

San Antonio economy and the broader
 

cultural communitv
 

An examination of the economy and broader
 

cultural community of San Antonio contributes to an understanding of the effects
 

ascribed to the fiveexamined arts institutions. Table VI-I presents useful market
 

data such as the Effective Buying Income
 

(EBI), a measure of the buying power of
 

households after government deductions for
 

taxes, social insurance, and lesser items;
 

it also shows income, age, education, and
 

population information.
 

The San Antonio Bureau of the Census Standard Statistical Area (SMSA) consists of
 

Bexar, Guadalupe, and Comal counties. In
 

this study, the terms "loca!," "the San
 

Antonio metropolitan area," and "the San
 

Antonio region" are used interchangeably
 

to identify the San Antonio SMSA. In 1970
 

the population of the SMSA was 888,179,
 

with 708,582 residing in the city. The
 

1977 SMSA population was estimated to be
 

996,800.
 

San Antonio was founded on May !, 1718 by
 

a Spanish military expedition~ After the
 

Mexican revolution of 1821, San Antonio
 

became a part of Mexico. In 1836 Texas declared its independence, and nine years later
 

joined the United States.
 

In the late 1800s, San Antonio was a major
 

cattle center, and the starting point of
 

the famous Chisholm Trail. During and
 

after World War II, San Antonio became a
 

Education (1970)
 

Less than 5 years 13.6% 

4 years of high school or more 46.8% 

4 years of college or more 10.2% 

Median education
 

major military center with Fort Sam Houston of the U.S. Army and four important
 

UoS. Air Force bases. In 1978 these bases
 

employed 43,489 military personnel and
 

29,043 civilians; in addition, there were
 

26,734 retired military personnel in the
 

area ("Military Statistics: The Economic
 

Impact on San Antonio 1978," Economic Research Dept. of the Greater San Antonio
 

Chamber of Commerce). In April 1978, the
 

employed civilian work force numbered
 

376,200, including 93,500 working for federal, state, and local governments; 68,900
 

in retail and commercial trade; 68,200 in
 

service industries; 45,750 in manufacturing; 23,850 in finance, insurance, and
 

real estate; 23,750 in construction; 21,050
 

in wholesale trade; and 15,250 in transportation, communications, and utilities
 

("Business Barometer, May 1979," Economic
 

Research Dept. of the Greater San Antonio
 

Chamber of Commerce).
 

San Antonio remains the commercial and financial center for South Texas, and is
 

served by four railroads, forty-four common-carrier truck lines, a major highway
 

system, two municipal airmorts with eleven
 

scheduled airlines, and fiQe bus lines ("San
 

Antonio Facts," Economic Research Dept.
 

of the Greater San Antonio Chamber of Commerce, January i, 1979. Information in
 

thefollowing two paragraphs also derived


from this source). Other cultural events
 

attractive to residents and visitors include Fiesta San Jacinto, Texas Folklife
 

Festival, and San Antonio Livestock Exposition and Rodeo.
 

78
 

11.5 
Ponulation (selected "fears)
 

1960
 

1970
 

1975
 

1977
 

Population change
 

1960-1970
 

1970-1975
 

687,151
 

888,179
 

981,566
 

996,800
 

20.7%
 

10.0%
 

Household income (1977)
 

$8,000-$9,999
 

$10 , 000-$14 , 999
 

$15,000-$24 , 999
 

$25,000 and over
 

1977 median household income
 

1969 median household income
 

Average annual change in
 

per capita income 1969-74
 

7.7%
 

20.0%
 

28.3%
 

17.6%
 

$13,953
 

$ 7,981
 

8.2%
 

79
 
 

 

 

The examined institutions were selected
 

from the many nonprofit arts and cultural
 

organizations in th~ San Antonio SMSA.
 

;~hile these five ma ypify the impact of
 

various types of ins~itutions, they do
 

not represent the full ranme of locally
 

available commercial and nonprofit activities. It is clear that the examined institutions do not exhaust the impact of
 

the ~’culture industry." For example, census data for 1970 show a tota! of 1,979
 

employed nriters, artists, and entertainers artists and local and nonlocal audiences.
 

in the San Antonio SMSA, excluding indi-


viduals employed in art galleries and
 

other arts-related positions (Where Artists
 

Live: 1970, Research Division Report #5,
 

Washington: National Endowment for the Arts,
 

19777 see list at the back of this report).
 

There were sixty-one ful!-time employees
 

at the examined institutions. The yellow
 

pages of the San Antonio area telephone
 

directory list 1,200 enterprises which can
 

able from the 1977 statistics in the U.S.
 

Bureau of the Census Count31 Business Patterns series. Table VI-2 details various
 

data on businesses used by the general public.
 

Direct economic effects
 

The direct economic effects of the examined
 

institutions include local spending for
 

goods and services, salaries and wages to
 

local residents, and expenditures by guest


Table VI-3 presents selected data on institutional direct effects during fiscal 1978.
 

Local institutional expenditures for ~oods,
 

services, and salaries. It is estimated
 

that the examined institutions made 60 percent of their expenditures for goods and
 

services with local vendors and that this
 

totaled $940,226. The percentage of non-


labor expenditures made locally by the ex-
 be considered culture-related in the broad- amined institutions ranaed from 60 percent
 

est sense. These range from music, art, to 61 percent. An additional $1,485,402
 

and theatrical suppliers to book and record was spent for salaries and wages to local
 

dealers, design firms, and commercial Dho- households. No estimate has been made of
 

tographers, the impact of additional earned and other
 

income by institutional employee house-


Data on the impact of some elements of holds, which in some instances was as high
 

these cultural business sectors are avail- as 20 percent.
 

Table VI-2 San Antonio SMSA selected businesses related to arts and culture 

Businesses Number Employees Payroll
 

Television-radio enterprises 75
 396 $3,481,000
 

Music and record stores 47
 286 $1,698,000
 

Bookstores
 34 121 $ 663,000
 

Photography stores 9
 63 $ 386,000
 

Movie theatres (except drive-ins) 26
 431 $1,901,000
 

Total 191 1,297
 $8,129,000
 

8O
 
___ 

Table VI-3 San Antonio SMSA estimated direct economic effects of examined institutions 

Local institution expenditures
 

for goods and services
 

Employee salaries and wages
 

Local audience spending (other
 

than ticket price)
 

Sole-reason visitor spending
 

Guest artist spending
 

Total
 

*Less than 1 percent
 

Total
 

$ 940,226
 

51,485,402
 

692,722
 

585,469
 

32,224
 

$3,736,043
 

Percent
 

of total
 

direct
 

spendlng
 

25%
 

40%
 

19%
 

16%
 

100%
 

Single institution
 

Lowest Highest
 

$42,347 $481,442
 

$87,676 $981,610
 

$60,$32 $278,841
 

$22,386 $226,621
 

$ 660 * $ 23,100
 

81
 
Table Vl-4 San Antonio SMSA estimated audiences and spending by examined institutions 

Audience 

Nonlocal 

Institution Local Nonlocal 

(sole 

reason) 

Institution 

total 

Carver Cultural Center 36,121 2,719 699 38,840
 

Museum of Transportation 31,208 104,478 5,563 135,686
 

San Antonio Opera 13,026 3,674 2,756 16,700
 

San Antonio Symphony 63,993 2,666 600 66,659
 

Witte Museum 134,058 75,407 6,074 209,465
 

Total 278,406 188,944 15,692 467,350
 

82
 
 

 

Guest artist smendinm. Each year, cultural
 

~nstltutlons con<rac~ wltn nonresident
 

designers, directors, conductors, featured
 

so!oists, touring groums, and others. These
 

nonresident "guest artlsts" were reporte@
 

to have spent a total of $32,224 locailv.
 

No attempt has been made to estimate ssending by guest artist entourage.
 

Audience smendinc. Decisions regardinm the
 

handlinm of audience data can have a masor
 

impact on economic effect estimates. This
 

study’s conservative approach was to include the ancillary spending of noniocai
 

vlsitors only if attendance at the arts
 

event was their sole reason for being ~n
 

tile com_munity. This :ro<ocol is discussed
 

in Char,ter i.
 

At some institutions, however, sole-reason
 

visitors are only a small percentame of
 

total visitor attendance and smendinm.
 

Many visitors indicated that they ’had
 

mlanned ahead of time to attend although
 

that was not the sole reason for their
 

visit. Table VI-4 ~resents a summary o~
 

audience dat~ for San Antonio.
 

An estimated 188,944 visitors from outside
 

the SMSA attended the examined institutions
 

during fiscal 1978. They comprised from
 

4.5 percent to 77.7 percent of total attendance depending on the institution. Of
 

these visitors, 15,692 are estimated to
 

have visited San Antonio specifically to
 

attend the institutions under study.
 

Audience spending 

Local Nonlocal 

Nonlocal 

(sole 

reason) 

$ 65,740 

$ 76,772 

$ 60,832 

$210,537 

$278,841 

$ 236,950 

$ 9,104,858 

$ 320,175 

$ 232,332 

$ 6,571,432 

$ 26,080 

$207,556 

$102,826 

$ 22,386 

$226,621 

$692,722 $16,465,747 $585,469 

83 
Table Vl-5 San Antonio SMSA audiences of examined institutions by residence and spending 

Average for 

all institutions 

Single institution range 

Lowest Highest 

Audience residence 

In San Antonio 

Outside San Antonio but in SMSA 

Outside SMSA 

39.8% 

19.8% 

40.4% 

15.4% 

6.9% 

4.5% 

75.3% 

23.5% 

77.7% 

Audience spending 

Percent of local audience reporting 

Per capita spending 

Sole-reason nonlocal audience per 

capita spending 

60.0% 

$ 2.49 

$37.31 

45.0% 

$1.82 

95.0% 

$4.67 

Not sole-reason nonlocal audience 

per capita spending $91.66 

*Due to small sample sizes, analysis of nonlocal audience 

data was not conducted by individual institutions. 

84
 
As seen in TaDle ~7i-5, local audiences
 

spent sums ranging from an average of $i~82
 

to $4.67 ~er person per visit for items
 

such as meals and parking. During fiscal
 

1978, local audiences are conservativel,7
 

estimated to nave sment $692,722 over and
 

above admission fees.
 

As shown in Table VI-6, many other visitors
 

expected to attend while visiting San Antonio, but it was not their sole reason.
 

Visitors from outside the SMSA are of specia! interest inasmuch as their spending
 

represents "new" dollars, money which had
 

not been in the community until that time.
 

Across all examined institutions, nonloca!
 

sole-reason visitors traveled a mean of
 

eighty-two miles and reported per capita
 

expenditures of $37.31, resulting in total
 

expenditures of $585,469 that can be conservatively attributed to the drawing power
 

of the examined cultural activities. Persons for whom attendance at the cultural
 

institutions was not their sole re~son =or
 

visiting the community traveled a mean o~
 

eighty miles and spen< $69.54 per capita,
 

totaling $15,880,278.
 

Table VI-6 San Antonio SMSA nonlocai audiences by examined institutions 

Nonlocal Proportion Proportion
 

Audience proportion of nonlocal of nonlocal
 

sample of total who expected who were
 

Institution size audience to attend sole-reason
 

Carver Cultural Center 343 6.8% 45.0%* 25.0%*
 

Museum of Transportation 131 77.7% 25.3% 5.3%
 

San Antonio Opera 182 21.1% 91.7% 75.0%
 

San Antonio Symphony 705 4.5% 42.3%* 23.1%*
 

Witte Museum 554 36.9% 40.9% 8.1%
 

*Because of relatively small nonlocal audiences,
 

these data should be treated with caution.
 

85
 
 

 

Table Vl-7	 San Antonio SMSA 

estimated secondary

economic effects 

of examined institutions 

Secondary business volume
 

generated by institution-


related direct effects
 $6,185,327
 

Secondary personal incomes
 

generated by institution-


related direct effects
 

(excluding $1,485,402 in
 

salaries to organizational
 

employees]
 $2,345,~60
 

Secondary full-time jobs
 

in the St. Louis SMSA
 

attributable to institution-


related direct effects
 

(excluding 61 full-time
 

organizational employees)
 347
 

Initial expansion of the
 

local credit base
 $ 862,529
 

Current value of backup
 

inventory, but not equipment and property
 $1,044,720
 

Secondary economic effects
 

Direct-effect spending leads to secondary
 

effects when the institution-related expenditures within the community are in turn
 

respent by local firms and households. The
 

study estimates the level of five secondary
 

effects of institution-related sDending i~
 

1978. Respendingof initial doll~rs introduced into the local economy is estimated
 

to result in $6,185,327 in local secondary
 

business volume. Of this amount, an estimated $2,345,260 is paid out in wages to
 

employees. This persona! income represents
 

347 full-time jobs in the San Antonio SMSA.
 

Additional secondary effects include an expansion of the local credit base due to
 

deposits in local banks by the examined
 

institutions, their employees, and the
 

local businesses benefiting from institution-related direct effects. It is estimated that in fiscal 1978 average monthly
 

balances in business and employee savings
 

and checking accounts totaled $954,137.
 

When reduced by federal and state cash reserve requirements, this allows an initial
 

expansion of the credit base totaling
 

$862,529.
 

Finally, area firms benefiting from institution-related direct and secondary business activity are estimated to have invested $1,044,720 in plant, inventory, and
 

equipment in support of this business volume. This represents the fiscal 1978 value
 

of these assets, not expenditures made in
 

fiscal 1978; a portion of the assets may,
 

however, have been acquired in that year.
 

Expenditures were not necessarily made with
 

local firms. Table VI-7 presents estimates
 

for each of the secondary-effects discussed
 

above. ­

Government revenues and expenditures
 

In addition to estimating the direct and
 

secondary effects on businesses and individuals attributable to the examined institutions, this study has sought to estimate the effect on local San Antonio government revenues and expenditures, and the
 

institutions they support as seen in Table
 

VI-8. ~ ’
 

86
 
 

Table Vl-8 San Antonio SMSA examined institutions by sources of government support 

Institution Federal State Local Total
 

Carver Cultural Center $ 12,900 $3,840 $155,520 $ 172,260
 

San Antonio Museum Association* $ 87,000 $470,000 $ 557,000
 

Symphony Society of San Antonio** $165,000 $ $181,500 $ 346,500
 

Total $264,900 $3,840 $807,020 $1,075,760
 

*(Includes Witte Museum and San Antonio Museum of Transportation.)
 

**(Includes San Antonio Symphony and San Antonio Symphony Opera.)
 

87
 
Table Vl-9	 San Antonio SMSA 

estimated revenues and costs 

to local government

related to examined institutions 

Revenues
 

Real estate taxes maid
 

by the institutions, their
 

employees, and business
 

property serving them*
 $ 59,042
 

Locally retained sales
 

tax on institution-


related business volume
 $ 32,_218
 

Local income tax revenues
 

attributable to institutiona! employees
 $ 0
 

State aid to local governments attributable to
 

institutional employee
 

households
 $ 15,074
 

Hotel taxes
 $ 6,120
 

Taxes to local transit
 

authority
 $ 5,762
 

Parking revenues, estimated
 $ 7,867
 

Total	 $126,083
 

Costs
 

Operating costs of local
 

governments and schools
 

for services to employee
 

households
 52,729
 

Direct appropriations to
 

one institution $155,520
 

Grants to study institutions
 $651,500
 

Total
 $859,749
 

*Data unavailable for real estate taxes on
 

business property servicing the institutions.
 

Estimates of costs to local governments in
 

the San Antonio area are based on estimates
 

of local governmental operating costs associated with services to employee households, including the cost of public instruction for households with children in
 

the public schools, but excluding costs
 

associated with services to the institutions themselves. Table VI-9 summarizes institution-related governmental costs and
 

revenues. Included as costs are local governmenta! grants and fees for services.
 

In reviewing Table VI-9, the limited
 

nature of this analysis should be kent in
 

mind. No information is available b~ which
 

to judge whether or not the identified
 

effects on business, individuals, and ~overnment are typical of the broader universe
 

of San Antonio ~rea cultural institutions.
 

The tax effects shown are smecific to the
 

examined mix of institutions.
 

Revenues to local government included real
 

estate taxes paid by the institutions and
 

their employees, income taxes, local hotel
 

taxes, transit taxes, state aid to local
 

governments, and parking revenues for a
 

total of $126,083 in local government revenues attributable to the institutions.
 

An employee survey indicates that employees
 

at the examined institutions contribute to
 

both costs and revenues of government.
 

They live in the city of San Antonio or
 

elsewhere in Bexar County, and approximately


47 percent of employees are homeowners;
 

.they report a total of eighteen children in
 

local public schools.
 

Sales, income, and property tax estimates
 

are undoubtedly conservative inasmuch as
 

no estimate has been made of taxes paid by
 

individuals benefiting from institution-


related secondary effects. In addition,
 

no attempt has been made to assess the incidental effects of institutional activities
 

on surrounding taxable property values,
 

which~may be positive or negative. Finally,
 

no attempt has been made to assess the governmental costs or benefits associated with
 

the more subtle effects that may result
 

from the arts, which are discussed in the
 

overview.
 

Costs to local government include operating
 

costs of local governments and schools,
 

local government grants, and direct appropriations to the examined institutions for
 

a total cost to local government of $859,749.
 

As noted earlier, this does not include additional costs that may be associated with
 

specific governmental services to the examined institutions.
 

88
 
CHAPTER VII
 

THE SPRINGFIELD ECONOMY AND
 

ARTS AND CULTURAL INSTITUTIONS
 

The following institutions in the Springfield Standard Metropolitan Statistical


Area or SMSA were selected for study by
 

Sorincboard:
 

Springfield Symphony Orchestra
 

Springfield Theatre Guild
 

Springfield Art Association
 

Springfield Ballet
 

Art Collection, Illinois
 

State Museum
 

Old State Capitol
 

Community Concert Series
 

Springfield Municipal Opera
 

Old State Capitol Art Fair
 

Great American People Show
 

These represent a range of organizational
 

types and include some of the more well-


known local institutions. Their selection
 

resulted from locally initiated efforts
 

to identify interested organizations.
 

The successful completion of the Springfield pro3ect was due to the efforts of a
 

number of persons, including the principal
 

project staff at Springboard and the Center
 

for the Study of Middle-Size Cities at
 

Sangamon State University. Charles Kirchnet, board member of Springboard, served
 

as study director; Dr. Phillip Gregg of
 

the Center was responsible for coordinating
 

the day-to-day tasks; Dr. John Bowman,
 

a~sociate professor of economics at Sangamon State assisted; and Andi Rosenstein,
 

a student in the University’s Community
 

Arts Management Program, was project administrative assistant. Other staff persons and volunteers are identified at the
 

end of this report.
 

Springfield institutions
 

Edwards Place was deeded to the Springfield Art Association in 1913. Since
 

then, it has functioned as an art gallery,
 

museum, and art school. Later, a gallery
 

was built adjoining the house and separate studios have also been constructed.
 

The art association schedules over fifteen
 

exhibits a year as well as offering art
 

classes, workshops, lectures, and a volunteer art appreciation program in the
 

public schools.
 

The Springfield Ballet Company was formed
 

in 1975 with the merger of the Copper Coin
 

Ballet Company, founded in 1957, and the
 

Springfield 

Standard Metropolitan 

Statistical Area (SMSA) 

SPRINGFIELD 

SANGAMON 

\ 

Based on U S. Dept of Commerce. Bureau ol the Census. 

Ballet Concert Group, founded in 1964. The
 

company produces dance performances and
 

provides instructional programs :i.n dance.
 

The Great American People show was incorporated in December 1975 with a primary purpose of creating new historical
 

drama and presenting educational entertainment.
 

The Springfield Municipal Opera became a
 

not-for-profit corporation and produced
 

its first show in 1950. The Muni Opera
 

produces a series of amateur musical theatre productions durinq the summer months.
 

The Springfield Theatre Guild was incorporated in November 1947. In 1951 the
 

guild’s own theatre opened at i01 Lawrence
 

.Avenue. In 1967 the Paul Becker Hall was
 

built to the west of the first building
 

to provide additional facilities. The
 

guild presents five amateur productions
 

each season, as well as sponsorlngworkshops.
 

The Springfield Community Concert Association has a long history, starting in 1902
 

as the Springfield ~mateur Musical Club.
 

In 1931 the club joined the Community Concert Association, a division of Columbia
 

Artists Management, inc. The association
 

89
 
Table VII-1 Springfield SMSA demographics 

Age (1977) 

18-24 11.2% 

25-34 14.5% 

35-49 15.7% 

50 and over 29.3% 

Median age 31.5 

presents four concerts by notable artists
 

each year.
 

The Springfield Symphony Orchestra began
 

performing in 1922, but its curren% artistic development can be traced to 1952 when
 

Harry Farbman became conductor. The orchestra’s present schedule consists of five
 

concerts a season.
 

The Old Capitol Art Fair was initiated in
 

1961 to bring visual artists and their
 

-work into Springfield, to provide an
 

opportunity for area citizens to see and
 

purchase quality art, and to develop a
 

civic art collection.
 

The Illinois State Museum was created in
 

1877 by an act of the Illinois legislature. In 1928, a few years after the
 

museum moved into new quarters in the
 

Centennial Building, Frances Ridgely was
 

hired to develop the art department. The
 

present structure was completed in 1963.
 

The art department provides temporary exhibitions in addition to its permanent
 

collection. The museum is an agency of
 

the State of Illinois.
 

The Old State Capitol is composed of the
 

Illinois State Historical Library, founded
 

in 1889, and the Illinois State Historical
 

Society, founded in 1899. The library is
 

a state agency.
 

Education (1970)
 

Less than 5 years 3.2%
 

4 years of high school or more 56.6%
 

4 years of college or more 10.4%
 

Median education
 

Springfield economy and the broader
 

cultural community
 

An examination of the economy and broader
 

cultural community of Springfield contributes to an understanding of the
 

effects ascribed to the ten examined arts
 

institutions. Table VII-I presents useful
 

market data such as the Effective Buying
 

Income (EBI), a measure of the buying
 

power of households after government deductions for taxes, social insurance, and
 

lesser items; it also shows income, age,
 

education, and population information.
 

The Springfield Standard Metropolitan
 

Statistical Area or SMSA consists of the
 

Illinois counties of Sangamon and Menard.
 

In this study, the terms "local, .... the
 

Springfield metropolitan area," and "the
 

Springfield region" are used interchangeably to identify the Springfield SMSA,
 

unless otherwise specified. Springfield,
 

the capital of Illinois and the county
 

seat of Sangamon County, is located 190
 

miles southwest of Chicago and one hundred miles northeast of St. Louis. The
 

city is one hundred miles north of the
 

1970 center of population for the U.S.
 

and twenty miles due west of the economic
 

center, for the forty-eight contiguous
 

states.
 

Sangamon County had a 1975 population of
 

180,514, up from 171,020 in 1970 (County
 

90
 

12.2 
Ponulation (selected years)
 

1960 146,539 

1970 171,020 

1975 180,514 

1977 i85,400 

Population change
 

1960-1970
 9.8%
 

1970-1975
 5.0%
 

and City Data Book 1977, U.S. Dept. of
 

Commerce, Census Bureau). The Springfield Chamber of Commerce projects that
 

Springfield will surpass the national average for per capita income by 1990
 

(Springfield, Illinois--1990, The Greater
 

Springfield Chamber of Commerce).
 

Springfield was founded by settlers from
 

North Carolina in 1818 and became the Illinois state capitol six years later. The
 

city is well known as the home of Abraham
 

Lincoln.
 

Because Springfield is the state capitol,
 

many people in the SMSA are government
 

employees. State government and the
 

service and clerical sectors provide
 

the bulk of Springfield’s emp!o_vment.
 

In 1977, the State of Illinois was the
 

city’s largest single employer with 16,150
 

employees. Fiat Allis was second with
 

2,900 workers. Hospitals and insurance
 

companies dominated the remainder of the
 

list of major employers, with St. John’s
 

Hospital employing 2,100, Memorial Medical Center employing 1,800, and Franklin
 

Life and Horace Mann Educators Insurance
 

Companies both employing more than one
 

thousand workers (Financial Report: Cit[
 

of Springfield, Illinois: For Fiscal Year
 

March i, 1978 to Feb. 28, 1979. City of
 

Springfield, Financial Department).
 

91
 

Household income (!977)
 

$8,000-$9,999 6.3% 

$10,000-$14,999 16.8% 

$15,000-524,999 33.4% 

525,000 and over 20.7% 

1977 median household income
 $16,098
 

1969 median household income
 310,302
 

Average annual change in
 

per capita income 1969-74
 8.8%
 

Springfield is the retail trade center
 

for the surrounding agricultural area of
 

nearly ten counties with an estimated
 

population of 400,000. Sangamon County has
 

965 retail and 304 wholesale firms, and
 

the county’s 1977 retail sales approached
 

$872,000,000. The major sales categories
 

were machinery, farm products, groceries,
 

and automotive equipment. Approximately
 

71 percent of Sangamon County’s commercial
 

activity occurred in Springfield. In addition, the city serves as headquarters
 

for 125 national, regional, and state associations, and eight insurance companies.
 

Total business volume in the SMSA in 1978
 

was estimated at $1,875,392,050 (Springfield Chamber of Commerce, adjusted to 1978).
 

Springfield is served by a major highway
 

network, twenty-six major trucking firms,
 

and five railroads. Two airlines, Ozark
 

and Air Illinois, provide air service.
 

Springfield’s tourism and convention
 

business is growing. Immediately east
 

of the downtown business district is the
 

nearly completed twenty million dollar
 

Springfield Metropolitan Exposition and
 

Auditorium Authority convention center.
 

The Illinois State Fair, held in Springfield each August, attracts nearly a million visitors. Abraham Lincoln’s home and
 

tomb as well as the nineteenth-century
 

Illinois State Capitol are popular.
 
 

ballet, theatre, poetry workshops, music
 

appreciation groups, choirs, bands, and
 

the annua_~ Old CapitoJ Art Fair. Four
 

colleges ~ universit±es are located in
 

the Sprin~ £eld area. They are Sangamon
 

State University, Lincoln Land Community
 

College, Springfield College, and Southern
 

Illinois University School of Medicine.
 

The examined institutions were selected
 

from the many nonprofit arts and cultural
 

organizations in the Springfield SMSA.
 

Althouah these ten may perhaps typify the
 

impact of various types of institutions,
 

they do not represent the full range of
 

locally available commercial and nonprofit
 

activities. It is clear that the examined
 

institutions do not exhaust the impact of
 

the "culture industry." The yellow pages
 

of the Springfield metropolitan area telephone directory list over three hundred
 

enterprises which can be considered culture-


related in the broadest sense. These range
 

from music, art, and theatrical suppliers
 

to book and record dealers, design firms,
 

and commercial photographers.
 

Data on the impact of some elements of
 

these cultural business sectors are available from the 1977 statistics in the U.S.
 

Bureau of the Census County Business Patterns series. Table VII-2 details various
 

data on businesses used by the general
 

public.
 

Direct economic effects
 

The direct economic effects of the examined institutions include local spending
 

for goods and services, salaries and wages
 

to local residents, and expenditures by
 

guest artists and by local and nonlocal
 

audiences. Table VII-3 presents selected
 

data on institutional direct effects during fiscal 1978.
 

Local institutional expenditures for
 

goods, services, and salaries. It is
 

estim~ued that the examined institutions
 

made 49 percent of their expenditures for
 

goods and serwices with local vendors and
 

that this totalled $396,654. The percentage of nonlabor expenditures made locally
 

by the examined institutions ranged from
 

18 percent to 100 percent. An additional
 

$981,461 was spent for salaries and wages
 

to local households. No estimate has
 

been made of the impact of additional
 

earned and other income by institutional
 

employee households, which in some cases
 

was over 35 percent.
 

Guest artist spending. Each year, cultural institutions contract with nonresident designers, directors, conductors,
 

featured soloists, touring groups, and
 

others. These nonresident "guest artists"
 

were reported to have spent a total of
 

$54,451 locally. No estimate has been made
 

of spending by guest artist entourage.
 

Table VII-2 Springfield SMSA selected businesses related to arts and culture 

Businesses
 Number Employees Payroll
 

Television-radio enterprises
 16
 105 $ 816,000
 

Music and record stores
 9 58
 $ 380,000
 

Bookstores
 16 101 $ 351,000
 

Photography stores ___
 

Movie theatres (except drive-ins)
 7
 80 $ 235,000
 

Total
 48 344
 $i,782,000
 

92
 
 

 

 

Table VII-3 Springfield SMSA estimated direct economic effects of examined institutions 

Percent 

of total Single institution 

direct 

Total spending Lowest Highest 

Local institution expenditures 

for goods and services $ 396,654 13% $5,020 $167,914 

Employee salaries and wages $ 981,461 33% $ 240 $892,527 

Local audience spending (other 

than ticket price) $ 431,526 14% $4,421 $134,460 

Sole-reason visitor spending 51,133,737 38% $2,261 $728,488 

Guest artist spending $ 54,451 2% $ 0 $ 40,000 

Total $ 2,997,819 100% 

93
 
Table VII-4 Springfield SMSA estimated audiences and spending by examined institutions 

Audience
 

Nonlocal
 

(sole Institution
 Institution Local Nonlocal reason)
 total
 

Art Collection,
 

Illinois State Museum 81,000 69,000 15,900
 150,000
 

Community Concert Series 4,019 41
 12 4,060
 

Great American People Show 10,655 108 32
 10,763
 

Old State Capitol Art Fair
 23,250 1,750 625 25,000
 

Old State Capitol 32,653 139,204
 32,653" 171,857
 

Springfield Art Association 13,950
 1,050 375 15 000
 

Springfield Ballet 3,704
 236 134 3 940
 

Springfield Municipal Opera 13,388 558 377
 13,946
 

Springfield Symphony Orchestra 6,768 282
 190 7,050
 

Springfield Theatre Guild 7,564 1,231
 519 8,795
 

Total 196,951 213,460 50,817 410,411
 

94
 
Audience sDendinq. Decisions regarding 

the handling of audience data can have a

major impact on economic effect estimates. 

This study’s conservative approach was to 

include the ancillary spending of nonlocal 

visitors only if attendance at the arts 

event was their sole reason for being in 

the community. This ~rotocol is discussed 

in Chapter I. 

At some institutions, however, solereason visitors are only a small percentage of total visitor attendance and 

spending. Many visitors indicated that 

they had planned ahead of time to attend 

although that was not the sole reason for 

their visit. Table VII-4 presents a summary 

of audience data for Springfield. 

An estimated 213,460 visitors from outside the SMSA attended the examined institutions during fiscal 1978. They 

comprised from i.i percent to 80.7 percent of total attendance depending on the 

institution. Of these visitors, 50,817 

are estimated to have visited Springfield 

specifically to attend the institutions 

under study. 

Audience spending 

Local Nonlocal 

NonlQcal 

(sole

reason) 

$ 4,421 $ 2,261 $ 268 

$ 11,721 $ 5,956 $ 714 

$134,400 $ 3,805,390 $ 354,729 

$ 82,305 $ 96,514 $ 13,944 

$ 87,510 $ 7,677,101 $ 728,488 

$ 49,383 $ 57,908 $ 8,366 

$ 6,075 $ 13,016 $ 2,990 

$ 18,877 $ 30,774 $ --­

$ 9,543 $ 15,553 $ 4,239 

$ 27,231 $ 67,891 $ 11,578 

$431,466 $11,772,364 $1,125,316 

95 
Table VII-5 Springfield SMSA audiences of examined institutions by residence and spending 

Average for
 

all institutions
 

Audience residence 

In Springfield 37.2% 

Outside Springfield but in SMSA 10.8% 

Outside SMSA 52.0% 

Audience spending
 

Percent of local audience reporting
 40.0%
 

Per capita spending
 $ 2.19
 

Sole-reason nonlocal audience per
 

capita spending
 $22.31
 

Not sole-reason nonlocal audience
 

per capita spending
 $65.37
 

*Due to small sample sizes, analysis of nonlocal audience
 

data was not conducted by individual institutions.
 

Single institution range
 

Lowest Highest
 

11.9% 83.4%
 

7.5%
 28.6%
 

1.1%
 80.7%
 

33.0% 65.0%
 

$1.10
 $3.60
 

---* ___,
 

---* ___,
 

96
 
As can be seen from Table VII-5, local audiences spent sums ranging from an average
 

of $i.i0 to $3.60 per person per visit for
 

items such as meals and parking. During
 

fiscal 1978, local audiences are conservatively estimated to have spent $431,526
 

over and above a~mission fees.
 

As shown in Table VII-6, many other visitors
 

expected to attend while visiting Springfield, but it was not their sole reason.
 

Visitors from outside the SMSA are of
 

special interest inasmuch as their spending represents "new" dollars, money which
 

had not been in the community until that
 

time. Across all examined institutions,
 

nonlocal sole-reason visitors traveled a
 

mean of seventy-two miles and reported per
 

capita expenditures of $22.31, resulting
 

in total expenditures of $1,133,727 that
 

can be conservatively attributed to the
 

drawing power of the examined cultural
 

activities. Persons for whom attendance
 

at the cultural institutions was not their
 

sole reason for visiting the community
 

traveled a mean of eighty-seven miles and
 

spent $69.54 per capita, for a total of
 

Si0,631,972. One reason for this difference
 

in expenditures is that in the sole-reason
 

group 32 percent stayed at hotels for a
 

mean of 0.70 nights, whereas in the nonsole-reason group 38 percent staved at
 

hotels for a mean of 1.74 nights.
 

Table VII-6 Springfield SMSA nonlocal audiences by examined institutions 

Institution
 

Art Collection,
 

Illinois State Museum
 

Community Concert Series
 

Old State Capitol
 

Springfield Art Association
 

Springfield Ballet
 

Nonlocal 

Audience 

sample 

proportion 

of total 

size audience 

282 46.5% 

364 1.1% 

307 80.7% 

381 6.7% 

261 6.6% 

Springfield Symphony Orchestra 365 3.8%
 

Springfield Theatre Guild 331 14.3%
 

*Because of relatively small nonlocal audience,
 

these data should be treated with caution.
 

97
 

Proportion 

of nonlocal 

Proportion 

of nonlocal 

who expected who were 

to attend sole-reason 

56.6% 23.0% 

66.7%* 33.3%* 

67.4% 23.5% 

45.5%* 36.4%* 

78.6%* 57.1%* 

91.7%* 66.7%* 

75.6% 42.2% 
 

Table VII-7	 Springfield SMSA

estimated secondary

economic effects 

of examined institutions 

Secondary business volume 

generated by institutionrelated direct effects $3,223,01~ 

Secondary personal incomes 

generated by institutionrelated direct effects 

(excluding $981,461 in 

salaries to organizational 

employees) $1,316,946 

Secondary full-time jobs 

in the Springfield SMSA 

attributable to institutionrelated direct effects 

(excluding 72 full-time 

organizational employees 161 

Initial expansion of the 

local credit base $ 901,705 

Current value of backup 

inventory, equipment, 

and property $1,643,852 

Secondary economic effects
 

Direct-effect spending leads to secondary
 

effects when the institution-related expenditures within the community are in turn
 

respent by local firms and households. The
 

study estimates the level of five secondary
 

effects of institution-related spending in
 

1978. Respending of initial dollars introduced into the local economy is estimated
 

to result in $3,223,011 in local secondary
 

business volume. Of this amount, an estimated $1,316,946 is paid out in wages to
 

employees. This personal income represents
 

161 full-time jobs in the Springfield SMSA.
 

Additional secondary effects include an expansion of the local credit base due to
 

deposits in !ocal banks by the examined
 

institutions, their employees, and the
 

!ocal businesses benefiting from institution-related direct effects. It is estimated that in fiscal 1978 average monthly
 

balances in business and employee savings
 

and checking accounts totaled $929,607.
 

When reduced by federal and state cash reserve requirements, this allows an initial
 

expansion of the credit base totaling
 

$901,705.
 

Finally, area firms benefiting from institution-related direct and secondary business activity are estimated to have invested $1,643,852 in plant, inventory, and
 

equipment in support of this business volume. This reoresent the fiscal 1978 value
 

of these assets, not expenditures made in
 

fiscal 1978; a portion of the assets may,
 

however, have been acquired in that year.
 

Expenditures were not necessarily made
 

with local firms. Table VII-7 presents
 

estimates for each of the secondary effects discussed above.
 

Government revenues and expenditures
 

In addition to estimating the direct and
 

secondary effects on businesses and individuals attributable to the examined
 

institutions, this study has sought to estimate the effect on local Springfield government revenues and expenditures in fiscal
 

1978 of institution support; this is detailed in Table VII-8. Research on the implication of economic impact data for regional cost-sharing of arts and cultural
 

institutions by the several units of government that comprise a metropolitan area
 

can be found in David Cwi’s "Regional Cost-


Sharing of Arts and Cutlural Institutions,"
 

Northeast Regional Science Review, Voi. 9,
 

1979.
 
 

 

Table VII-8 Springfield SMSA examined institutions by sources of government support 

Institution
 

Art Collection,
 

illinois State Museum
 

Community Concert Series
 

Great American People Show
 

Old State Capitol Art Fair
 

Old State Capitol
 

Springfield Art Association
 

Springfield Ballet
 

Springfield Municipal Opera
 

Springfield Symphony Orchestra
 

Springfield Theatre Guild
 

Total
 

Federal State SMSA Total 

$ --­ $ 151,580 S --­ 151,580 

s $ s --­

$ $ 21,3"00 $ 1,250 22,550 

$ $ $ --­

$51,455 $1,289,500 SI,340,955 

$ $ 75O s 75O 

$ S s 4oo 400 

S $ $22,000 22,000 

$ $ 4,000 S 4,000 

$ $ 

$51,455 $1,467,130 $23,650 $1,542,235 

99
 
Table VII-9	 Springfield SMSA

estimated revenues and costs 

to local government

related to examined institutions 

Revenues
 

Real estate taxes paid 

by institutions, their 

employees, and business 

property serving them $107,664 

Locally retained sales 

tax on institutionrelated business volume $ 19,085 

Local income tax revenues 

attributable to institutional employees $ 0 

State aid to local governments attributable to 

institutional employee 

households $ 24,473 

Hotel taxes $ 5,956 

Gasoline tax $ 12,059 

Parking revenues, estimated $ 18,344 

Total	 $187,581
 

Costs
 

Operating costs of local
 

governments and schools
 

for services to employee
 

households	 $ 87,217
 

Grants to study institutions $ 23,650
 

Total	 $110,867
 

Estimates of costs to local governments
 

in the Springfield area are based on estimates of local governmental operating
 

costs associated with services to employee
 

households, including the cost of public
 

instruction for households with children
 

in the public schools but excluding costs
 

associated with services to the institutions themselves. Table VII-9 summarizes
 

institution-related governmental costs and
 

revenues. Included as costs are local
 

government grants and fees for services.
 

In reviewing Table VII-9, the limited
 

nature of our analysis should be kept in
 

mind. No information is available my
 

which to judge whether or not the identified effects on business, individuals, and
 

government are typical of the broader universe of Springfield area cultural institutions. The tax effects shown are specific
 

to the examined mix of institutions.
 

Revenues to local government include real
 

estate taxes, taxes on business property
 

devoted to servicing the institutions,
 

sales taxes, local hotel taxes, gasoline
 

taxes, state aid to local governments,
 

and parking revenues. These totaled
 

$187,581 in local government revenues attributable to the examined institutions.
 

An employee survey indicates that employees
 

at the examined institutions contribute
 

to both costs and revenues of government.
 

They live mainly in the city of Springfield or elsewhere in Sangamon County,
 

but ii percent live in Macon County,
 

which is not part of the Springfield
 

SMSA. Approximately 62 percent of
 

employees pay taxes as homeowners; they
 

report a total of forty-two children in
 

local public schools.
 

Sales, income, and property tax estimates
 

are undoubtedly conservative inasmuch as
 

no estimate has been made of taxes paid
 

by individuals benefiting from institution~related secondary effects. In addition, no attempt has been made to assess
 

the incidental effects of institutional
 

activities on surrounding taxable property values, which may be positive or
 

negative. Finally, no at%empt has been
 

made to assess the governmental costs or
 

benefits associated with the more subtle
 

effects that may result from the arts
 

which are discussed in the overview.
 

Costs to local government included operating costs of local governments and schools
 

and local government grants to the examined institutions for a total cost to
 

local government of $110,867. As noted
 

earlier, this does not include additional
 

costs that may be associated with specific governmental, services to the examined
 

institutions.
 

i00
 
ACKNOWLEDGMENTS (provided by study
 

coordinator in each ci<y)
 

COLUMBUS
 

Greater Columbus Arts Council: Everett H.
 

Krueger Columbus Association for the Performing Arts: Rowland C. Brown, David Ellis,
 

Don Strei~ig Columbus Symphony Orchestra:
 

Eleanor A. Gelpi, Thomas Langevin, Darrel
 

Edwards, Susan Rosenstock Players Theatre
 

of Columbus: Jules Garel, Ed Graczyk Columbus Museum of Art: John W. Kessler, Budd
 

H. Bishop, James Buchanan, Herbert W. Moore
 

Ballet Metromolitan: LaVetta Helser, Harvey
 

Roth, Jack Kamer Center of Science and Industry: Walter English, S.N. Hailock II,
 

Polly Spence, WilliamC. Schmitt, Tom Davis
 

Assisting agencies and individuals: City
 

of Columbus (Tom Moody); Columbus Area
 

Chamber of Commerce (Alfred Dietzel, James
 

Thomas); Columbus Foundation (Daniel Gal-


breath, Joseph Imberman) ; Mid-Ohio Regional
 

Planning Commission (William C. Habig,
 

James W. McPherson iII); Ohio Department
 

of Taxation (Ron Hohman, Marcia Glick,
 

Tima Bozzuto)
 

MINNEAPOLIS/ST. PAUL
 

Children’s Theatre Company: Richard H. Jackson, John Clark Donahue, Jay Bush Chimera
 

Theatre: Gloria Segal, James Borland
 

Cricket Theatre: Preston Townley, Bill
 

Semans, Marcy Dowse Guthrie Theatre: Donald Dwight, William George, Donald Schoenbaum, Donald Michaelis Minneapolis Society of Fine Arts (governing and supporting
 

organization of the Minneapolis Institute
 

of Arts): David McGlaughlin, John M. Dozier,
 

James V. Toscano, DeCourcy McIntosh Minneapolis institute of Arts: Samue! Sachs II,
 

Ruth Humleker, Timothy Fiske Minnesota
 

Dance Theatre: Philip Getts, Loyce Houlton,
 

Beverly Cnare Semon Minnesota Orchestral
 

Association: Stephen R. Pflaum, Richard M.
 

Cisek, Richard Bass, John G. Fischer, Anne
 

Cheney St. Paul Chamber Orchestra: Eugene
 

M. Warlich, Thomas Gerdom Science Museum
 

of Minnesota: John Roe, Wendel! A. Mordv
 

Walker Art Center: Alice E. Wittenberg,
 

Martin Friedman, Donald Borrman, Robert
 

Sain Metropolitan Council: Rey Boezi,
 

RoGer Israel, Sara Burstein, Victor Ward
 

Twin Cities [!etrooolitan Arts Alliance:
 

Donald Michael!s, Marcy Dowse, Doug Eichten,
 

Thomas Kigin, Dixon Bond, Ted Crawford,
 

Leigh Kamman, Karla Williams, Ronaid O!son,
 

Libby Larsen, Elizabeth H~nz, M.E.G. Roy
 

ST. LOUIS
 

Arts and Education Council of Greater St.
 

Louis: Donald Brandon, John Peters McCarthy,
 

Clarence Barksdale, Stanley Richman Participants at target institutions: David
 

Hyslop, Arthur Dye, Nancy Von Breck, David
 

Frank, Ann Des Rosie[s, Jovce Volker,
 

Christy Beckmann, Jerry Kvasnicka, Angle
 

Gross, Joe Divito, Stephen Jay, Jane Childs,
 

Michael Christopher, Peter Raven, Rick Dale},,
 

Susan Flowers, Tom Warner, Barbara Jennin~s,
 

James Wood, Susan Sullivan, Joan Bernstein,
 

Ronald Sutheriand, Donald Fraziers, Julie
 

Hershey, Rich Hugerman, Peggy Hil~est
 

Consultants: Mark Twain Bancshares
 

SALT LAKE CITY
 

Utah Arts Council: Arlev Curt~, Connie Jo
 

M. Hepworth, Lloyd Bliss, Carol Browning,
 

Gall Della Piana, Jo Ann Freed, Mrs. Jack
 

Goodman, Edward L. Hart, Daniel L. Mart!no,
 

Ronald L. Molen, Dennis Smith, Walter G.
 

Smith, Twain Tippetts, Kathryn Wilson, Lynn
 

Smith-Buckland Pioneer Memorial Theatre:
 

Kenneth J. Burton Ballet West: Robert G.
 

Bradford Salt Lake Art Center: Allen Dodworth Tiffany’s Attic: James Lewis Remertory Dance Theatre: Barry Bonifas Utah
 

Symphony: Shirl H. Swenson Theatre 138:
 

Ariel Ballif Utah Museum of Fine Arts:
 

E. Frank Sanguinetti, Josephine Theodore
 

Ririe-Woodbury Dance Company: Sandra Cummings Utah Opera Company: Rob Mickelson
 

Other participants: University of Utah
 

Bureau of Economic and Business Research
 

(Thayne Robson, Frank Hachman); Department
 

of Development Services, State of Utah
 

(J. Phillip Keene) ; Utah State Budget Office (Jed Kee) ; Salt Lake Council for the
 

Arts (Margaret Smoot) ; Division of Industrial Promotion (Dale Carpenter); Community
 

Development (Beth Jarman) ; institute of
 

ArtsAdministration, University of Utah
 

(Don S. Anderson); Four Corners Regional
 

Commission; Utah State Division of Industrial Promotion; Utah Travel Council; Utah
 

State Board of Education; Utah State Tax
 

Commlssion; Utah Foundation; Wasatch Regional Planning Commlssion; Salt Lake Area
 

Chamber of Commerce; Salt Lake County Council of Governments
 

SAN ANTONIO
 

Arts Council of San Antonio: Bernard Lifshutz, David Mumm, Michael Laquey Carver
 

Cultural Center: Jo Long San Antonio Museum Association: ~ancy Negiey, Adair
 

Sutherland, ~hili~ Bauman Symphony Society
 

of San Antonio: Hugh Foster, Nat Greenberq,
 

Ben Greene, Dick Gass, Pat Masch
 

SPRINGFIELD
 

Pro3ect steer~nm com~m~ttee: Donald Bigger-


staff, Nancy Evans, Dave Kiliman, Bernadette Nolan, Bob Wesley Other pro3ect
 

staff at the Center for the Study of
 

Middle-Size Cities: Ramin Bentash, John W.
 

Foley, Daniel Johnson, Jan Kohi, Kathy
 

Landahl, Kathy Oglesby, Sue Ann Schleder,
 

Julie Slack, Ken Stanek, Kathy Wooldridge
 

Participating organizations and desimnates:
 

!01
 
Springfield Symphony Orchestra (Irwin Muncy);
 

Springfield Theatre Guild (Mina Halliday);
 

Springfield Art Association (Pauline Tel-


ford, William Bealmer); Old Capitol Art
 

Fair (Bernard Armbruster) ; Springfield Community Concerts (Mrs. Walter Stehman) ;
 

Springfield Ballet Company (Mrs. Charles
 

Wabner); Illinois State Museum (Robert
 

Evansl; Illinois State Historical Library
 

(William Alderfer, Olive Foster); Springfield Muni Opera, 1977-78 (Clark Denton III);
 

Springfield Muni Opera, 1978-79 (Richard
 

DeFend); Springfield Symphony Orchestra
 

<James Graham, Hans Anker) Audience study
 

volunteers: Don Biggerstaff, Ed Giganti,
 

Sharon Brown, Andi Rosenstein, Roberta
 

Volkmann, Ron Keener, Linda Shiffer, John
 

Ryerson, Cordelia Burpee, Will Stonehocker,
 

_ Nancy Gregg, Darlene Nordland, Marion Richter, Duanne Dickerson, Marian Levin, Gene
 

Rubley, State Arts Agency volunteers,
 

Kevin Brown, Jack McKee, Barb Burris, Olive
 

Foster, William Bealmer, Christina Fenner,
 

Irene Barker, Caitlin Evans, Irwin Muncy,
 

Mrs. Walter Stehman, Bud Luers, Chuck
 

Janasek, William Alderfer, Carl Volkmann,
 

Bob Swenson, Nancy Evans, Joe Hills, Phil
 

Gregg, Molly D’Esposito, Linda Speece,
 

Judy DeBoldt, Linda Stonehocker, Erin Biggerstaff, Wilma Higgins, Cynthia Posegate,
 

Martha Hills, Vera Lee Williams, Lynda
 

Thompson, Jonathan Katz, Jim Bennie, Fred
 

Speece, Andrea McFadden, June McKee, Bill
 

See, Bob Evans, JoAnn Gross, Charles Kirchher, Mary Beth Roland, Pauline Telford,
 

Bonnie Wabner, Elaine Mack, Jane Luers,
 

Bonnie Janasek, Hans Anker
 

102 
REPORTS IN THE NATIONAL ENDOWMENT FOR
 

THE ARTS RESEARCH DIVISION SERIES
 

Since 1976 the Research Division of~the
 

National Endowment for the Arts has <~een
 

studying matters of interest to the arts
 

community and issuing reports based on its
 

findings. Copies of the reports may be ordered from the Publishing Center for Cultural Resources, 625 Broadway, New York
 

City 10012 at the prices noted below.
 

Checks should be made payable to "Publishing Center." Prices include postage and
 

handling; no sta~e or local sales tax is
 

applicable.
 

Employment and Unemployment of Artists:
 

1970-1975. 32 pages. April 1976. $2.50
 

#2 To Survey American Crafts: A P~anning
 

Study. 32 pages. July 1977. $2.50
 

#3 Understanding the Employment of Actors.
 

36 pages. September 1977. $2.00
 

#4 Arts and Cultural Programs on Radio and
 

Television. 92 pages. September 1977. $3.50
 

#5 Where Artists Live: 1970. 80 pages.
 

October 1977. $3.00
 

#6 Economic Impact of Arts and Cultural
 

Institutions: A Model for Assessment and
 

a Case Study in Baltimore. 96 pages.
 

November 1977. $3.50
 

#7 ~norities and Women in the Arts: 1970.
 

32 pages. January 1978. $2.50
 

#8 The State Arts Agencies in 1974: All


Present and Accounted For. 160 pages.
 

April 1978. $4.50
 

#9 Audience Studies of the Performing
 

Arts and Museums: A Critical Review. 1O6
 

pages. November 1978. $3.00
 

#i0 Self-Employment, Migration, and Household and Family Characteristics of Artists:
 

1970. 32 pages. November 1978. $2.00
 

#11 Conditions and Needs of the Professional American Theatre. 120 pages. January 1980. ISBN 0-89062-076-8 $4.50
 

#12 Ar~sts Compared by Age, Sex, and
 

Earnings ~n 1970 and 1976. 54 pages.
 

January 1980. ISBN 0-89062-077-6 52.50
 

#13 Craft Artist Membership Organizations
 

1978. 48 pages. January 1981. ISBN
 

0-89062-089-X $2.50
 

#14 Audience Development: An Examination
 

of Selected Analysis and Prediction Techniques Applied to Symphony and Theatre
 

Attendance in Four Sou<bern Cities. 48
 

pages. January 1981. ISBN 0-89062497-0
 

$2.50
 

415 Economic Impact of Arts and tultural
 

institutions: Case Studles in Columbus,
 

Minneapolis/St. Paul, St. Louis, Salt Lake
 

City, San Antonio, and Springfield. 102
 

pages. January 1981. ISBN 0-89062-106-3
 

$3.50
 

103