IAC Press Release

For Immediate Release: March 13, 2008

Contact: Jeff Morgan
Public Relations
515.281.3858
Jeff.Morgan@iowa.gov


Study: Arts generated 3,480 jobs and $347 million in and around 6 Iowa counties

Black Hawk, Montgomery, Pottawattamie, Wapello, Winneshiek, Woodbury targeted

Iowa remains nearly last in the United States for per capita investment in the arts

(DES MOINES, Iowa)— The arts generated 3,480 jobs and more than $347 million in economic impact in and around six Iowa counties targeted in a study released today by the Iowa Arts Council.

 The Economic Impact of the Arts in Iowa – A Demonstration Project of Selected Counties, conducted for IAC by the Sustainable Tourism and Environmental Program at the University of Northern Iowa, focused on Black Hawk, Montgomery, Pottawattamie, Wapello, Winneshiek and Woodbury counties, and 31 counties that surround them, for a 12-month period ending in Fall 2007.

“The results confirm what we keep seeing over and over again – the arts not only provide cultural and entertainment opportunities for Iowans and visitors, they have a profound impact on our economy,” said Cyndi Pederson, director of the Iowa Department of Cultural Affairs. “They create jobs and business opportunities for Iowans and they attract and retain a highly skilled, creative workforce that high-tech industries are looking for when deciding to relocate or expand in Iowa.”

Accounting for expenditures made by arts organizations and visitors, the total economic impact of the arts in and around the six targeted counties is below:

The study, available on-line at http://www.iowaartscouncil.org/publications_&_resources/reports.shtml, measured direct, indirect and induced economic impact of the arts in and around each targeted county.

Direct impact is defined as injections in the economy that are multiplied further, based on linkages of different economic sectors in the area. Indirect impact is measured by the total value of supplies and services delivered to arts-related businesses by the chain of businesses that serve arts organizations. Induced impact accrues when arts-related businesses and businesses in the indirect industries spend their earnings (wages, salaries, profits, rent and dividends) in goods and services in the area.

The total impact includes the sum of direct, indirect and induced effects and is the total of transactions attributable directly to expenditures of arts organizations/art visitors in the targeted counties.

In addition, the study utilized a multiplier effect that refers to the number of times a dollar “changes hands” within the community. For example, the multiplier effect happens when a theater pays an actor, the actor spends money at the grocery store, the grocery store pays its cashier, etc…

The study is one of several undertaken the past few years that measure the economic impact of the arts in Iowa:

  1. Arts & Economic Prosperity III: The Economic Impact of Nonprofit Arts and Culture Organizations and Their Audiences in the Iowa Cultural Corridor (Cedar Rapids/Iowa City) 2007
    1. Survey of 63 cultural organizations in 11 Iowa counties
    2. 2006 data indicate these organizations generate:

(Prepared by Americans for the Arts in partnership with Iowa Cultural Corridor Alliance. Report available at www.culturalcorridor.org.)

  1. The Economic Value of Arts and Cultural Organizations to the Central Iowa Economy: A Report for Bravo Greater Des Moines 2007
    1. Survey of 37 cultural, artistic, and educational venues in the Greater Des Moines area
    2. 2006 visitorship to these organizations accounted for or linked to:

(Prepared by David Swenson, Consulting Analyst. This report was funded through a grant from the Greater Des Moines Community Foundation. The report is available at http://www.iowaartscouncil.org/publications_&_resources/advocacy_info/assets/bravo_2007.pdf.)

In addition, the Travel Industry Association of America has documented 81 percent of adult travelers include a cultural event while on a trip of 50 miles or more away from home. Such travelers also bring the benefit of longer stays and higher average expenditures, in turn generating more revenue for the community.

“Think about all the benefits to building up the arts in a community,” Pederson said. “Full and part time jobs are produced, from art dealers to theatre janitors to arts festival vendors. Arts activities bring cultural diversity and vibrancy to communities, which appeals to both tourists and workers. Attendees at arts events spend money in communities, from feeding parking meters to eating at restaurants and staying at hotels. Iowa communities win big when the arts are strongly supported.”

The studies come at a time when Iowa continues to rank nearly last in the country for per capita investment in the arts.

The National Assembly of State Arts Agencies released its “Fiscal Year 2008 Legislative Appropriations Annual Survey” last month, showing Iowa remains 45th for state legislative appropriations to state arts agencies for the second year in a row. NASAA is the membership organization of the nation’s state and jurisdictional arts agencies.

The NASAA survey showed Iowa’s legislative investment in the arts is $0.42 per capita in FY2008. The national average is $1.04 per capita. IAC receives about $1.2 million in legislative appropriations annually for its programs. IAC also receives about $550,000 from the National Endowment for the Arts to support the arts in Iowa.

“When you consider how poorly we are performing with regard to our ranking together with the economic impact information we released today, you can see we are failing to capitalize on the opportunities in front of us,” Pederson said. “Think of how much more economic impact the arts could have if we could improve the investment we make in the arts in Iowa.”

According to NASAA, the top five and lowest five states for investment in the arts per capita in FY2008 are:

(Rank, state, per capita investment)

Top 5 States:
1. Hawaii, $5.21 per capita
2. Maryland, $2.70 per capita
3. New Jersey, $2.58 per capita
4. New York, $2.54 per capita
5. Delaware, $2.41 per capita

Lowest 5 States:
46. Washington, $.40 per capita
47. Arizona, $.33 per capita
48. Colorado, $.31 per capita
49. Texas, $.18 per capita
50. California, $.11 per capita

Among Iowa’s Midwest neighbors, Missouri made another leap in FY08, continuing its rapid rise from 49th in FY06 ($.08 per capita) and 33rd in FY07 ($.64 per capita) to 12th in FY08 ($1.37 per capita). Following is a list of Midwestern states, their rank and per capita investment in the arts, according to the NASAA survey:
6.   Minnesota, $1.97 per capita
12. Missouri, $1.37 per capita
26. Illinois, $0.83 per capita
29. South Dakota, $0.80 per capita
32. Nebraska, $0.71 per capita
43. Wisconsin, $0.44 per capita
45. Iowa, $0.42 per capita

 

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The Iowa Arts Council is a division of the Iowa Department of Cultural Affairs and works to enrich the quality of life for Iowans through support of the arts. Funding for the Iowa Arts Council and its programs is provided by the State of Iowa and the National Endowment for the Arts. Please visit www.iowaartscouncil.org for more information.