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| Arts Generate $5.4 Billion for California New Study Shows Arts Mean Business California Ranked as National Leader in Creative Industries By Adam Gottlieb SACRAMENTO - Political, business, and arts leaders today announced the results of a year-long study on the economic impact of nonprofit arts in the state. "The Arts: A Competitive Advantage for California II," commissioned by the California Arts Council (CAC), shows the nonprofit arts in California is a vibrant economic engine that produces $5.4 billion annually to the state's economy, employs more than 160,000 individuals statewide, contributes nearly $300 million in state and local taxes, and ranks California as the nation's leader in arts-related industries. Conducted by Diane L. Mataraza, Inc. and funded by The William and Flora Hewlett Foundation and the CAC, "The Arts: A Competitive Advantage for California II," is an update to the Arts Council's groundbreaking 1994 report. Employing the same methodology as the 1994 report, researchers surveyed 3,200 large and small nonprofit arts organizations across the state. The new findings represent a 152 percent increase in economic impact compared to the previous report. "This study is a dramatic marker reflecting how the arts contribute to the state's economy. The results show that investing in the arts in California pays fantastic dividends," said Arts Council Chair Barbara George. "We've always known that the arts are vital to our creative expression, now, we can say that the arts mean business," she added. The study surveyed major metropolitan areas, mid-size cities, and rural communities to develop a statistical analysis. Results show that in both urban and rural counties, the arts play a valuable role in contributing positively to an area's business climate. The study concentrates on several sub-geographic regions including: Los Angeles, Oakland, Sacramento, San Diego, San Francisco, and San Jose. The $5.4 billion economic impact of the nonprofit arts breaks down regionally: Los Angeles $1.97 billion; Oakland $344.4 million; Sacramento $124.1 million; San Diego $255.7 million; San Francisco $1.44 billion; San Jose $229.1 million; other metropolitan cities $941.9 million, and rural areas $120 million. "When you consider that nonprofit arts groups are, in fact, 10,000 small businesses, nonprofit arts groups are making a significant impact on the state's bottom line everyday," said Arts Council Director Barry Hessenius. Additionally, new research from Americans for the Arts, Creative Industries in California, shows that there are more arts-related businesses (89,719) - including nonprofit organizations - and more people employed (516,054) in the creative industries in California than any other state in the nation and nearly double that of New York in second place. Additional key findings from the study include: * Employees in the nonprofit arts sector generate $2.7 billion of economic impact. Worker income impacts are comparable to those employed in California's sports and recreation clubs, commercial sports, and auto rental industries. * Total nonprofit arts sector spending in California is $2.2 billion. This includes direct expenditures by nonprofit arts and cultural organizations on everything from salaries and benefits to goods and services. In addition to payroll, which constitutes 47.5 percent of all spending, it includes cash expenditures on items such as scripts and music scores, printing, office supplies, computers, and travel. * California's nonprofit arts attract more than 71 million including 6 million tourists. A closer look at the activities of the 71.2 million includes participants taking dance and pottery classes, attending the ballet, cultural festivals, and youngsters enrolled in arts education classes. * Audience spending in California is big business. The state's 71.2 million arts attendees spend $1 billion in off-site expenditures over the cost of admission to events and exhibitions. Off-site expenditures might include meals, transportation, parking, and fuel over the cost of arts festival admission and purchases. * Philanthropic support in California totals $1.06 billion. It is frequently argued that if the arts were to exist exclusively on ticket sales, admissions, and other participation-related income, few could afford to participate in the arts. Philanthropic support - received from foundations, individuals, and corporations including grants from the Arts Council and/or city/county arts commissions and councils - is vital to keeping the arts affordable and accessible to all residents. * Californians volunteer 10 million hours annually Arts and cultural organizations rely on community volunteers serving on boards of directors or providing pro bono legal, financial, design and other professional services. California nonprofit arts organizations' aggregate volunteer time totals 10 million hours. According to Independent Sector's 2002 Dollar Valuation of volunteer time, that is equivalent to $165.4 million. ---------------------------------------------------------------------------- The California Arts Council, a state agency, promotes artistic awareness, participation, and expression in California. Its mission is to make available and accessible quality art reflecting all of California's diverse cultures; to support the state's broad economic, educational, and social goals through the arts; to provide leadership for all levels of the arts community; and to present effective programs that add a further dimension to California's cities, schools, jobs, and creative spirit. Members of the Arts Council include: Chair Barbara George, Vice Chair Phyllis Epstein, Vice Chair Marcy Friedman, Michael Alexander, Annette Bening, Jane Boeckmann, Aurelia Mika Chang, Janet Dreisen, Steven J. Fogel, Dr. Jerrold Hiura, and Michael Rubel. |
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