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.