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Final Report of the Commission to Study the Economic Impact of the Arts and Culture in New Hampshire, HB 279, Chapter 122, Laws of 2015

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Final Report of the Commission to Study the Economic Impact of the Arts and Culture in New Hampshire, HB 279, Chapter 122, Laws of 2015 State of New Hampshire GENERAL COURT ______________ CONCORD MEMORANDUM DATE: November 1, 2016 TO: Honorable Margaret Wood Hassan, Governor Honorable Shawn N. Jasper, Speaker of the House Honorable Chuck W. Morse, President of the Senate Honorable Paul C. Smith, House Clerk Honorable Tammy L. Wright, Senate Clerk Michael York, State Librarian SUBJECT: Final Report of the Commission to Study the Economic Impact of the Arts and Culture in New Hampshire, HB 279, Chapter 122, Laws of 2015 Pursuant to RSA 19-A:14, HB 279, Chapter 122, Laws of 2015, enclosed please find the Final Report of the Commission to Study the Economic Impact of the Arts and Culture in New Hampshire. This report is filed in memory of Commissioner Van McLeod who called New Hampshire “the gateway to creativity”. Enclosure cc. commission members TDD Access: Relay NH 1-800-735-2964 COMMISSION to STUDY the ECONOMIC IMPACT of the ARTS AND CULTURE in NEW HAMPSHIRE FINAL REPORT November 1, 2016 Commission to Study the Economic Impact of the Arts and Culture in New Hampshire Dedication This report is dedicated to Commissioner Van McLeod, whose spirit of collaboration and passion for arts and culture in New Hampshire continues to inspire this Commission and the Granite State's cultural community. This report provides a snapshot of the cultural sector Van loved and advocated for throughout his entire career. Table of Contents Executive Summary 1 New Hampshire’s Cultural Sector By-the-Numbers Public Libraries 5 Preservation 7 The Arts 9 Film and Digital Media Production 11 Conclusions 13 Recommendations 14 Appendices A. An Economic Assessment of New Hampshire’s Arts and Culture Industries, Nelson A. Rockefeller Center at Dartmouth College, 2016 B. Arts and Culture Survey, New Hampshire House of Representatives, 2016 C. What Americans Believe About the Arts, Americans for the Arts, 2016 Commission to Study the Economic Impact of the Arts and Culture in New Hampshire Executive Summary Broadly defined, the culture of a state reflects the common activities, places, traditions and beliefs of the people who live there; it’s the shared way of life that we pass from one generation to the next. We also use the term culture more specifically, to refer to people and places involved with the arts, history, humanities, writing and other creative pursuits. Used this way, culture encompasses performing, visual, fine and applied arts; crafts; music; architecture; film and digital media; humanities; historic preservation; literature; folklife, libraries, and more. In New Hampshire, our culture is as varied as the state's geography and people, from the covered bridges and traditional music of our past, to the avant-garde performances and technological resources of today and tomorrow. The New Hampshire cultural community spans the public, non-profit and private sectors, driven by individuals, organizations, businesses, libraries, industries, and educational and public institutions. It creates communities worth living in, provides outstanding educational opportunities, attracts businesses looking for engaged workforces, and defines what makes New Hampshire “New Hampshire.” The importance of arts and culture is described in state law. NH RSA 21-K:1, recognizing “the essential nature of pursuits which broaden our minds and spirits and preserve our history and culture for future generations,” established the New Hampshire Department of Cultural Resources as unit of state government. The State Library, the Council on the Arts, the Division of Historical Resources and the Film & Television Office together form “a single, strong, visible cultural agency” with “equal status with other major departments of state government.” The Commission to Study the Economic Impact of the Arts and Culture in New Hampshire was established on June 8, 2015 under RSA 19-A:14 as a result of the passage of HB 279 (Chapter 122). The purpose of the Commission was to study the economic impact of arts and culture in New Hampshire and recommend ways in which the state can enhance and expand this sector of the New Hampshire economy. Members who contributed significantly to the work of the Commission include: Representative Kenneth Gidge, House Commerce and Consumer Affairs Committee Representative David Danielson, House Finance Committee Representative Fred Rice Senator Martha Fuller Clark Michael York, Acting Commissioner, New Hampshire Department of Cultural Resources and New Hampshire State Librarian Elizabeth Muzzey, Director, New Hampshire Division of Historical Resources Ginnie Lupi, Director, New Hampshire State Council on the Arts Matthew Newton, Director, New Hampshire Division of Film and Digital Media Roger Brooks, Chair, New Hampshire State Council on the Arts Mandy Merrill, New Hampshire State Council on the Arts Mary McLaughlin, New Hampshire State Council on the Arts 1 Hilary Denoncourt, New Hampshire Department of Resources and Economic Development, Division of Travel and Tourism Jennifer Goodman, New Hampshire Preservation Alliance Daniel Bérubé, New Hampshire Film and Television Commission Sarah Stewart, New Hampshire Citizens for the Arts Peter Ramsey, Executive Director, The Palace Theatre Lawrence Yerdon, Executive Director, Strawbery Banke Museum Jane Oneail, Executive Director, League of New Hampshire Craftsmen Susan Strickler, Former Executive Director, Currier Museum of Art The Commission met monthly. Activities included briefings and orientations on various aspects of arts and culture in New Hampshire, discussions on financial impacts, revenue estimates, database information, and the current size, scope, organization and degree of participation of state agencies in identifying and enhancing the economic benefit derived from arts and culture in the state. An economic assessment of New Hampshire’s arts and culture sector was conducted by undergraduate students from the Nelson A. Rockefeller Center at Dartmouth College. The Commission used much of the information contained in their report as a basis for further discussion and study. The complete report is included as Appendix A. Other activities included inviting a string quartet to play in the House Chamber prior to a session and conducting a survey of all New Hampshire legislators to determine their level of participation in the arts, thereby raising the level of awareness and support for arts and culture. A summary of the survey results is included as Appendix B. Commission Discussion Highlights In New Hampshire state government, support of arts and culture is under the purview of the Department of Cultural Resources. The Department is organized into four Divisions: New Hampshire State Library New Hampshire Division of Historical Resources New Hampshire State Council on the Arts (Division of the Arts) New Hampshire Division of Film and Digital Media New Hampshire’s cultural sector – nonprofit organizations, for-profit creative businesses and individual artists – is similar to other sectors of the state’s economy. Common expenses include personnel, promotion, travel, production costs, insurance, rent and other related costs. These factors vary depending on business type. A detailed examination of all economic factors is an essential starting point to any effort to improve private profits and public revenues. New Hampshire’s cultural sector benefits other sectors on both the production and consumer sides. Restaurants, hotels, transportation, equipment and material manufacture, advertising and others all benefit from arts and culture. The state, in turn, benefits from these activities through rooms and meals taxes, business profits taxes and property taxes. It is essential that these economics be quantified so that they can be optimized. 2 Information was presented that for every dollar of government funding to arts and culture, the return to the states is at least ten dollars, if not more. It follows that if investment is increased, profitability and state revenues will follow. Further study is needed to confirm the validity of this hypothesis. New Hampshire ranks 44th in direct state funding for the arts (FY17). Ways must be explored to improve this standing. Because of low state funding, the Department of Cultural Resources is forced to include in-kind labor contributions to meet the threshold for matching Federal funding. New Hampshire is blessed with many regional arts and cultural markets, each with its own identity, customer base, secondary markets, etc. Together they create the Granite State’s creative economy. Some pertinent statistics: Nationally, the arts and culture sector represents 4.3% of the US GDP, and enjoys a $47 billion trade surplus. There are 3,500 arts-related businesses in New Hampshire employing 10,340 people. Nonprofit arts in New Hampshire generate $115 million annually in economic activity and $11.6 million in state and local government revenue. Nonprofit arts generate $17.7 million in economic activity in Concord and $41.4 million in Portsmouth. For every 100 jobs created from new demand for the arts, 62 additional jobs are created outside the industry. It is obvious from these statistics that the cultural sector represents a potentially large source of revenue to the state, as well as small businesses throughout the state. It is therefore necessary to determine the exact sources of cultural revenue so that plans can be developed and implemented to optimize it. 3 This page intentionally blank. 4 NEW HAMPSHIRE PUBLIC LIBRARIES Libraries have been part of New Hampshire’s cultural infrastructure
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