The arts play a
significant role in the economic health of California. A 2004 study,
The Arts: A Competitive Advantage for California II, examined
the issue of the nonprofit arts and related topics in a 2004
comprehensive report to measure the economic impact and value of the
arts and culture sector. Below are some of the report’s main
findings.
Total nonprofit arts sector
spending in California is $2.2 billion, including direct
expenditures by nonprofit arts and cultural organizations on
everything from wages and benefits to goods and services.
California’s nonprofit arts
attract 71.2 million people who in addition to admission contribute
$1 billion more to the economy.
Nonprofit arts generate millions
of dollars in tax revenue — an impact totaling nearly $300
million, as of this report.
The impact of the nonprofit arts
sector includes $2.7 billion in worker income. These worker income
impacts are comparable to those of workers in California’s
sports and recreation clubs, commercial sports and auto rental
industries.
Californians invest more than 10
million hours as volunteers for nonprofit arts organizations, valued
at more than $165.4 million.
In California in 2004, there are
more arts-related businesses (89,719) — including nonprofit
organizations — and more people employed (516,054) in the
creative industries than in any other state in the nation. Creative
Industries in California — ground-breaking research conducted
by Americans for the Arts and unveiled in Chapter 6 of this study
demonstrates that the creative industries are a significant industry
in California.
Nonprofit arts contribute to
California’s ranking as the most visited state in the nation.
The primary motivation for 6 million tourists to travel in
California is to enjoy nonprofit arts. In addition to what tourists
spend at an arts event, the costs of lodging, meals, transportation
and retail the day of an event as well as the day before or after an
event is significant. Total economic impact of tourists spending is
just under $1 billion.
Philanthropic support —
money received from foundations, individuals and corporations —
plus government subsidies total $1.06 billion and are vital to
keeping the arts accessible and affordable to all Californians.
Nonprofit arts are economic
engines in communities both small and large. In the state’s
more rural communities, arts venues are essential elements in
downtown revitalization, generating an impact of $120 million
annually. In California’s large metropolitan areas, the arts
make important contributions to urban renewal and development. In
Los Angeles County, which has the largest economic impact of the
arts in the state, $2 billion is contributed to the economy.
Californians care a great deal
about the vitality of the arts sector and would pay more in taxes to
prevent reductions in arts and cultural programming. We estimate
that the average California household is willing to pay an
additional $15.35 annually through taxes and other means to avoid a
25 percent reduction in arts events and $33.27 to avoid a 50 percent
reduction. Given California’s 11,503,000 households, it means
residents would be willing to pay $382.7 million more each year for
arts activity — a substantial difference from the state’s
current $1 million appropriation to the California Arts Council.
Californians value the role of
arts in education in the future success of children. Arts audiences
consider arts education in schools a high priority. Among the
state’s classroom teachers, 75 percent embrace the philosophy
that the arts are important in a child’s well-rounded
education. More significantly, 35 percent of the state’s
teachers integrate the arts into their classroom curriculum as a way
to help students learn.
When results of the
1994 study were compared with current findings, significant increases
were revealed:
