Economic Impact of the Arts in... TEXAS

sought valiantly to balance massive OVERVIEW budget shortfalls. Details on the sta- stablished in 1965 by the Texas Legisla- tus of Texas’ legislative appropriations ture as an agency of state government, during the fiscal year 2001 to fiscal year 2005 period are presented in Table 27. the Texas Commission on the Arts As documented in Table 27, (TCA) is mandated to create and foster legislative appropriations to the TCA a flourishing environment for the arts in during the review decline from $4.7 1 million in fiscal year 2001 to $4.5 mil- Texas. In order to accomplish this task, lion in fiscal year 2005, a decline of -5 the TCA provides grants, information percent. In the interim years of the and technical assistance to artists and review period, after increasing by 21 percent between fiscal years 2001 to arts organizations in a number of artistic fields, including the 2002 ($4.7 million to $5.7 million), the visual arts, theater, dance, music, media and literature across the appropriation declined by -2 percent Estate. In terms of its administration, the TCA is governed by 17 between fiscal years 2002 and 2002 ($5.7 million to $5.6 million), by a steep commissioners, appointed by the governor for a six-year term. -16 percent between fiscal years 2003 The commissioners are assisted by a staff of approximately 20 and 2004 ($5.6 million to $4.8 million), who work on preserving and expanding the arts and cultural and then by the smaller decline of -5 percent in the final year, between fiscal industries of Texas. years 2004 and 2005 ($4.8 million to The TCA receives funding from $4.5 million). several sources to implement its opera- FUNDING THE ARTS As noted earlier, one of the hall- tions including the Legislature, the fed- For a number of years, the arts marks of legislative appropriations to eral National Endowment for the Arts community, individuals and a number the arts in Texas for many years has (NEA), Texas Cultural Trust Council, of public officials in Texas have been been the fact that on a per capita ba- private donations including corpora- bemoaning the fact that on a per capita sis, Texas has consistently ranked very tions, foundations and individuals and basis the state legislative appropriation low, if not the lowest, nationally. The the sale of State of the Arts specialty to the TCA ranks it among the lowest situation in the review period did not license plates. in the country. During the fiscal crisis present a radical departure from this that swept across the country in the trend and, of the five years considered, first few years of this decade, like so per capita appropriations to the TCA many other state agencies in Texas, the ranked Texas the lowest (50th) in two TCA’s budget was slashed as the state years, 49th in one year and 46th in the remaining two years. Even among the Table 27 SLC states, Texas ranked 16th in three Legislative Appropriation to the TCA of the five years and 15th in the remain- ing two years. Fiscal Years 2001 to 2005 In response to this level of sup- Fiscal State % Per Capita Spending port from the Legislature, the TCA Year Appropriation Change Amount National Rank SLC Rank has had to rely on a range of alternate funding mechanisms both to meet its 2001 $4,739,335 $0.23 50 16 essential mandate of promoting the 2002 $5,743,976 21% $0.27 50 16 arts throughout the state and ensure 2003 $5,624,829 -2% $0.26 49 16 the existence of a number of arts 2004 $4,752,253 -16% $0.21 46 15 programs and organizations in every 2005 $4,510,252 -5% $0.20 46 15 corner of the state. For instance, providing grants to a variety of arts Source: National Assembly of State Arts Agencies, April 13, 2005

The Economic Impact of the Arts in the South | 115 vate sector and increases public awareness of its arts activities, it also disburses funds to the TCA for its operations. The spectacular flame-out of the former Houston-based, energy and trading behemoth Enron, considered one of the most powerful companies in the country until the fall of 2001, offers lessons on the negative side of relying too heavily on private dona- tions for the operation of arts and cul- tural institutions.5 Not only was Enron a major player in the Houston arts scene—the company made substantial donations to such cultural treasures as the Museum of Fine Arts, Houston Ballet, Alley Theater, Houston Sym- Kimball Art Museum, Fort Worth. Photo courtesy Kimball Art Museum. phony, Contemporary Arts Museum organizations across the state is one man Marcus and SBC), founda- and the Menil Collection—top execu- aspect of the many funding programs tions (Wallace Foundation) and tives at the company were influential undertaken by the TCA. In fiscal year individuals to finance a range figures (as purchasers of fine art, board 2006, the current fiscal year, the TCA of TCA programs, such as the members, fundraisers, promoters of approved $2.4 million in grants to arts Young Masters artist mentor- local artists) in the city’s arts scene. In organizations in an initial round of ship program, has been a main- addition, Enron had and was in the funding; an additional $637,945 will stay of TCA’s funding equation; process of acquiring a major corpo- be allocated for mini-grants, initiatives » The TCA was instrumental in rate art collection. With the crash of and partnerships during the fiscal year.2 setting up partnerships with a Enron by the end of 2001, one of the The $2.4 million distribution involved number of popular Texas artists major contributors to the arts scene in grants to 331 arts organizations in 77 (Willie Nelson, Flaco Jimenez, Houston vanished. Texas cities. Given the relatively low Beyonce) for the Texas Music level of funds appropriated by the Project, which led to a number ECONOMIC IMPACT Legislature, the TCA must rely on a of music CDs and concerts. As The economic impact of the number of alternative revenue sources a result, the TCA was able to arts continues to be a tremendously to fund its operations. Some of these distribute more than $100,000 positive development in Texas, not- include: for arts education initiatives withstanding the financial assistance » The State of the Arts specialty from the sales of CDs and con- provided by the Legislature in recent license plate program, the state’s cert proceeds; and years. Texas, in addition to maintaining best-selling, non-personalized » In 1993, the Legislature created some of the nation’s most treasured art specialty plate for nearly 10 the Texas Cultural Trust Coun- collections in a number of world-class consecutive years, has generated cil, landmark legislation that museums, also holds a number of a total of $3 million for various sought to create a true endow- unique musical festivals (Austin City TCA programs.3 In fact, these ment for the arts in Texas. The Limits, for instance) and arts events specialty license plate sales ac- goal of this endowment was “to that draw the attention of visitors and counted for about 8 percent provide a sustaining funding tourists from every part of the country of TCA’s total budget in fiscal source that will enhance arts and the globe. The throngs that attend year 2004. While these specialty education, encourage economic these various arts activities contribute plates cost an additional $30 development, and advance the significantly to the economic bottom more than the regular vehicle well-being of communities.”4 line of the local and state economies registration fee (a personalized In order to initiate the endow- at a level that far surpasses the level plate costs $70 in addition to the ment, the authorizing bill allo- of appropriation provided by both the regular fee), the TCA receives cated $2.2 million to initiate the state and federal (NEA) governments. $22 for each specialty license process, with the goal of even- In 2001, the Perryman Group, plate sold; tually collecting $200 million in a reputed economic and financial » Raising funds from private the fund. While the Council, a analysis firm based in Waco, carried sources including corporations 501(c)(3) non-profit organiza- out a detailed report of the economic (The Coca-Cola Company, Nei- tion, raises funds from the pri- impact of the arts in Texas entitled

116 | The Economic Impact of the Arts in the South The Economic Impact of the Arts in the South | 117 » The report also highlighted the per capita impact of the most “arts intensive” urban areas of the state, and according to this measure, the leaders were Dal- las ($6,654 per person), Fort Worth-Arlington ($4,397), San Antonio ($3,265), and Aus- tin-San Marcos ($3,216). Ap- proximately 5.5 percent of the economic impact of traditional cultural arts occurs in rural seg- ments of Texas; » The cultural arts were respon- sible for about 19.8 percent of the total tourism in the state; » Since the report computed the economic impact of both for-profit and non-profit arts- Elliptical gallery at the Modern Art Museum of Ft. Worth featuring Anselm Kiefer’s related activities, a breakdown Book with Wings, 1992-1994 Photography by David Woo, courtesy Modern Art Museum. of the impact of the non-profit segment of the arts industry in The Catalyst for Creativity and the Incuba- sources (more than $5.8 billion Texas indicated a net benefit of tor for Progress: The Arts, Culture and the per annum); $19 billion in total expenditures, Texas Economy.6 The purpose of the » The art industry’s impact and $9.5 billion in gross product, study was to comprehensively docu- positive economic flows extend- $5.9 billion in personal income, ment the impact of the arts on Texas, ed to all areas of the state with and more than 200,000 perma- its regions, and its metropolitan areas. the largest cultural impacts oc- nent jobs; The conclusion reached by the report curring in Dallas (30.3 percent » Within the non-profit sector, the was that the results were clear and un- of total state activity), Hous- highest level of per capita activ- ambiguous: the arts remain a vital and ton (24.1 percent), and Fort ity was recorded in Fort Worth- indispensable element of the complex Worth-Arlington (9.4 percent). Arlington ($1,890 per person), Texas economic universe. One of the In terms of the largest relative Dallas ($1,219), and Houston more noteworthy pieces of informa- effects in the state’s major urban ($1,138). Texas’ rural regions tion contained in the report involved markets, the report highlighted accounted for 6.6 percent of all the fact that in Texas, the non-profit Fort Worth-Arlington (17 per- non-profit arts activity; arts sector was a churning incubator cent of the local economy), » Arts programs played a crucial of economic activity with every dollar Dallas (16.1 percent), San An- role in the Texas educational spent by the sector creating more than gelo (16 percent), and Austin- system, contributing $3.6 bil- a $298 economic impact and $9.20 in San Marcos (15 percent). The lion in total expenditures, $1.8 state revenues. The following list con- art industry’s positive economic billion in gross product, $1.2 tains a sampling of the major findings impact covered the state’s rural billion in personal income, and contained in the report. areas too, amounting to $11.8 42,982 permanent jobs to the » Cumulatively, the arts industry billion, or 6.2 percent, of total state economy; and in Texas plays a crucial role activity in rural Texas; » A large proportion of the in the state’s economy and ac- » In terms of the economic im- educational benefits of the arts counted for $190.2 billion in pacts of such traditional arts flows from the activities of the total expenditures (12.3 percent disciplines as visual, literary, me- independent school districts of the state total), $98.4 billion dia, and performing arts on the in the state. In Texas public in gross product (13.6 percent), state economy, the report noted schools, cultural arts were re- $61.7 billion in personal income that it was substantial: $63.7 bil- sponsible for $2.2 billion in (14.6 percent), and 1.918 million lion in total expenditures, $31.5 total expenditures, $1.1 billion permanent jobs (15.7 percent). billion in gross product, $18.7 in gross product, $708.7 million In turn, this economic activity billion in personal income, and in personal income, and 24,762 was responsible for about 12.2 more than 600,000 permanent permanent jobs. percent of total state fiscal re- jobs; In sum, not only did the report depict the tremendous positive eco-

116 | The Economic Impact of the Arts in the South The Economic Impact of the Arts in the South | 117 nomic benefits emerging from a wide ganizations position themselves of positive economic benefits, amply spectrum of arts events and activities as tourism destinations. demonstrated by the data contained in across Texas, the fact that this report In terms of further enhancing the the section on the economic impact of was released over five years ago leaves state’s cultural heritage tourism poten- the arts in Texas. room for speculation that more re- tial, the TCA engages in partnerships Some of the blockbuster exhibi- cent data would indicate an economic with entities within the state’s tourism tions recently held at these different lo- impact that is even more substantial. industry, including the Texas Travel In- cations in Texas include the following: Furthermore, the report commented dustry Association, Texas Cultural and on the panoply of positive externali- Heritage Tourism Council, Texas State Nasher Sculpture Center (Dallas)9 ties that flow from a vibrant arts scene Agency Tourism Council, Tourism » The Women of Giacometti (January that far exceed those captured in the Advisory Committee, and the Texas to April 2006) marketplace and certainly outweigh the Festivals and Events Association. » Picasso: The Cubist Portraits of Fer- appropriation levels disbursed by the For instance, as a result of co- nande Olivier (February to May different levels of government. operation between these different 2004) government entities, a wide range of Dallas Museum of Art10 CULTURAL HERITAGE cultural and heritage sites are promot- ed in Texas.8 The state’s multicultural » Louis Comfort Tiffany: Artist for the TOURISM heritage—six different flags have flown Ages (May to September 2006) Texas, like a number of other over Texas—remains a major ingredi- » Modernism in American Silver: SLC states, has focused on developing ent in these cultural and heritage sites cultural heritage tourism by incorporat- 20th-Century Design (June to Sep- that range from the exhibits of the tember 2006) ing the efforts of the TCA, Texas De- heroic Buffalo Soldiers at Fort Davis in partment of Transportation (TxDOT), » Van Gogh: Sheaves of Wheat (Oc- Big Bend Country, to the tribal dances tober 2006 to January 2007) Texas Parks and Wildlife (TPWD) on the Alabama and Coushatta Indian and the Texas Historical Commission » Dialogues: Duchamp, Cornell, Johns, Reservation in the Piney Woods, to the Rauschenberg (September 2005 to (THC). These multiple agencies now Wurstfest in New Braunfels in the Hill provide the state’s division of Eco- January 2006) Country, to the exciting heritage and » East Meets West (August to No- nomic Development Tourism (EDT), culture of Mexico, to the missions in a unit within the governor’s office, vember 2005) San Antonio, to the Port of Hous- » Splendors of China’s Forbidden City: with an annual plan of action for their ton, and to the ghost towns of the respective agency’s proposed tourism The Glorious Reign of Emperor Panhandle Plains. One of the major Qianlong (November 2004 to activities for the fiscal year. In ad- considerations behind states aggres- dition, the TCA changed its existing May 2005) sively promoting cultural and heritage » Masterworks of French Painting, appropriations budget structure to ex- tourism deals with the fact that these pand one of its key goals, i.e., activities “Bonjour, Monsieur Courbet!”: The tourists, on average, spend significantly Bruyas Collection of the Musée Fa- to promote participation in the arts, to more than other types of tourists. In include cultural tourism as well. bre, Montpellier (October 2004 to Texas, for instance, cultural and heri- January 2005) In fiscal year 2005, the last year of tage tourists are reputed to spend ap- this report’s review period, highlights » Before Impressionism: French 19th- proximately $103.50 per day, compared Century Art (August 2004 to of the TCA’s efforts to foster cultural to the $81.20 per day spent by general 7 January 2005) heritage tourism in Texas included : leisure travelers. » Marketing activities such as co- » The Art of Romare Bearden (June operative marketing programs BLOCKBUSTER to September 2004) for arts organizations, public re- Kimbell Art Museum (Fort Worth)11 lations activities highlighting the EXHIBITIONS » Palace and Mosque: Islamic Art from arts and culture of Texas, and A number of Texas cities, Dallas, the Victoria and Albert Museum participation in Texas Tourism Fort Worth, Houston, possess some (April to September to 2005) Week; of the most stunning collection of » Caravaggio to Dalí: 100 Master- » Product development activi- artwork and antiquities in the world. pieces from the Wadsworth Atheneum ties including the Texas Craft Consequently, in the last few years, Museum of Art (June to Septem- Initiative, Festival and Tourism these museums have seen a surge in ber 2004) Grants, Cross Sector Partner- visitors and tourists from different » Turner and Venice (February to ships, Special Initiatives Pro- parts of the state, region, nation and May 2004) gram, and State Initiatives; and the world, all flocking to see a plethora » Genius of the French Rococo: The » Program development with of blockbuster exhibitions. As expect- Drawings of François Boucher educational and technical assis- ed, the record attendance levels experi- (1703–1770) and Boucher’s Mytho- tance programs to help arts or- enced by these museums create a slew logical Paintings: The Last Great

118 | The Economic Impact of the Arts in the South The Economic Impact of the Arts in the South | 119 Modern Art Museum of Fort Worth designed by Tadao Ando. Photography by David Woo, courtesy Modern Art Museum.

Series Reunited (January to April Nasher Sculpture Center (Dallas)12 2004) OTHER The Center, a 55,000-square An interesting development re- » The Quest for Immortality: Treasures foot building designed by acclaimed of Ancient Egypt (May to Sep- lated to the arts and cultural scene in architect Renzo Piano, opened to the Texas relates to the recent surge in ma- tember 2003) public in October 2003 and is one » jor cash and art donations to the state’s Modigliani and the Artists of Mont- of the few institutions in the world 14 parnasse (February to May 2003) impressive collection of museums. devoted to the exhibition, study, and For instance, the Dallas Museum of » From Renoir to Picasso: Masterpieces preservation of modern sculpture. from the Musée de l’Orangerie (No- Art announced in September 2005 that The collection, numbering more than it had received a series of cash gifts vember 2000 to February 2001) th 300 sculptures together with 20 cen- and art bequests valued at some $400 tury paintings and drawings, is the new million from leading collectors that BUILDING BOOM home of the renowned Raymond and will enrich the Museum’s holdings by As noted in the preceding section, Patsy Nasher Collection of modern more than 800 modern and contempo- a number of Texas cities maintain an and contemporary sculpture. The rary works, including those by masters impressive collection of artwork that Center, costing $70 million, is consid- like Monet, Willem de Kooning, Mark attracts visitors from every corner of ered a fine addition and a part of the Rothko and Gerhard Richter. Similarly, the globe, a fact that triggers a range of historic Dallas Museum of Art which in Houston, the Museum of Fine Arts economic effects. An important com- opened more than a hundred years ago increased the estimate of a gift to its panion fact that adds luster to these in 1903. Museum from its largest benefactor, an astounding cultural treasures is the ac- Modern Art Museum of Fort oil heiress who died in 2003, to about tual buildings that house them. From $450 million. While the will of philan- 13 the Kimbell Art Museum and Amon Worth thropist Caroline Wiess Law already Carter Museum in Fort Worth, to the Designed by renowned Japa- had yielded the Museum $330 million Nasher Sculpture Center in Dallas, to nese architect Tadao Ando, the Mod- in cash, in a recent development, an the Menil Collection in Houston, these ern opened to the public in December additional $100 million or more was landmark buildings, all designed by leg- 2002 and is Ando’s largest project expected when her estate was settled. endary architects, are a huge attraction outside Japan. Located in Fort Worth’s In addition, Ms. Law previously had in their own right. In the last five years, celebrated Cultural District, directly gifted an impressive collection of art- once again, a trend replicated in several opposite the Kimbell Art Museum work to the Museum. Consequently, other SLC states, several Texas cities (designed by Louis I. Kahn) and near the latest donation from the estate of have seen a building boom (both new the Amon Carter Museum (designed Ms. Law possibly makes it the largest construction and expansions) in their by Philip Johnson), the Modern com- money gift ever to a fine arts museum cultural and arts facilities. The latter prises five long, flat roofed pavilions in the country. trend, while allowing for expanded situated on a 1.5-acre pond. exhibit space, also causes cascading economic benefits both during - con struction and upon completion.

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