DOCUMENT RESUME ED 225 908 SO 014 484 AUTHOR Ciai, David TITLE The Economic Impact of Ten CulturalInstitutions on the Economy of the Springfield, Illinois SMSA. INSTITUTION Johns Hppkins Univ., Baltimore, Md. Center for Metropolitan Planning and Research. SPONS AGENCY Natiohal Endowment for the Arts, Washington, D.C, PUB DATE. 80 GRANT R80-22-1N NOTE 52p.; For related documents, see SO 014480-491. PUB TYPE Reports Research/Technical (143) EDRS PRICE MF01/PC03 Plus Postage. DESCRIPTORS Arts Centers; Audiences; CommunityCharacteristics'r *Cultural Centers; Dance; *Economic Factors;Economic Research; *Expenditures; *Fihe Arts; Income; Local Government; Music; Opera; *Resource Allocation; Salariesr Theaters; *Urban Ayeas IDENTIFIERS Econometrics; *Illinois (Springfield)" ABSTRACT The impact on the economy of 10. culturalinstitutions in Springfield, Illinois, was determined bymeasuring their 1978 direct and indirect Linancial effects. Theinstitutions are the Springfield Symphony Orchestra,,SpringfieldTheatre Guild, Springfield Art Association, SpringfieldBallet, Art Collection in Illinois State Museum, Old State Capitol,Community Concert Series, Springfield Municipal Opera, Old StateCapitol Art Faire, and Great American People Show. Data gathered fromthe 10 institutions included operating and financialscharacteristics andtotal expenditures wit'6- local firms. Staff and audience surveys,tax rates and bases for all local jurisdications, local governmentexpenditures, and the number of local housing units werelalsoobtainethDirect expenditures amounted to almost $3 million. Thirteenpeement went toward local expenditures fpr goods and services, 33 percentfor salaries and wages, 14 percent filteredinto the community through local audience spending, and 38 percent through non-localeudience spending. Guest artists spent 2 percent of the total.locally.Secondary business volume* generated by ihstitution-related effectstotaled over $3 million. Revenues to local government fromthe 10 institutions came to $187,581 while costs tolocal government amounted to $110,867. (KC) --****************************:******************************************* Reprbductions supplied by EDRS are the best that canb& made from the original document. *********************************************************************** U.S. DEPARTMENT OF EDUCATION NATIONAL INSTITUTE EDUCATIONAL OF EDUCATION RESOURCES INFORMATION CENTER IERIC/ This document bin been received' from the reproduced as person qr orbanization Xorigin/mm.0 rt Minor changes have been made . reproduction quality to improve Points of viewor opinions stated in this merit do not necessarily docu represeqi official POsition orpolicy ME 'PERMISSIONTO REPRODUCE THIS MATERIAL HASBEEN GRANTED 7;-; BY - TO THE EDUCATIONAL INFORMATION RESOURCES THE ECONOMIc'IMPACT CENTeR OFTEN CULTURAL INSTITUTIONS ON THE ECONOMY OF TH,C,SPRINGFIELD, ILLINOIS 5MSk I 9r0 P The-Johns Hopkins UnAversity Ceriter for MetropoJitaq Planning and Research Principal Investigator/ , Report Written By: David Cwi Project Manager: D. Alden Smith Computer Programming!' Data Base Management: Mark Keintz Bria6 Peters_ Audience Study Sampling Design/ Se.lected Analysis: Ra'lph Taylor Technical Assistance in Design and2Ana1ysis: _ :Allen Goodman Henry Henderson Project Secretary: Patty Strott Student Assistants: Gayle Cohen Scott Holupka # A 1 Vanhier This rePort was prepared unCler grant-riumber R80-22-1N,from the Besearch Divifjon of the National Endowment for the Arts. Points .of view,or opinim; stated In this .document are those of the' author and do not-rfecessarily represent the offiCial positidn or policies of the National Endowment for the Arts, The Johns Hopkins University, or the Center for Metrdpolltan Planning and Research. 2 TABLE OF CONTENTS Page LIST OF EXHIBITS ACKNOWLEDGEMENTS ii ," 1 les PREFACE:7GANIZATION OF THE REPORT- vii SECTION I: INTRODUCTION 1 A. The History of the Project 1 B. Project Objectives 2 The.Institutions Examined in Spring-Meld 4 SECTION II; THE SPRINGFIELD ECONOMY Py ITS ARTS COMMUNITY':- AN,PVERVIEW 8 SECTION III: THE ECONOMIC EFFECTS OF TEN CULTURAL INSTITUTIONS ON THE SPRINGFIELD METROPOLITAN AREA , 4 17 ;Air/ A. Study Prpcedures 17 I Scope of Study 17 --Stddy Methods and Limitations 17 -- Data Requirements 19 Direct Effects- 20 -- Local ,Institutional.Expenditures for Goods, Services- and Salaries 22 --,Guest Artist.Spending 22 -- Audience Spending 22 . econdary Effects 26 Secgndary Business Voimme, Persbnal Incomes and Jobs 27 -,,Additional Investment-and Exp.ansion of-the, 'Local Credit Base 28 D. Government Expenditures and Revenues 29 SECTION IV: CONCLUDING CAVEATS REGARDING STUDYhNDINGS....... 35 A LIST OF EXHIBITS Page Exhibit 1 Acknowledgements iii Exhibit 2 List ofParticIpatingl Institutions 3 Exhibit 3 Demographic Data on Households . in the Springfield SMSA . 9 *Exhibit 4 Number of Various Arts, and' ,Cultural Establishments in' the Springfibld Metropolitan., Area Yellow Pages 15 Exhibit 5 Summary of Direct Effects for Ten Arts jhstitutiOns in Ihe Springfield SMSA, FY 1978 21 EXhjbit 6 Audience Summary Nta for Ten Arts InstitUtions in the Spi'ingfie1d SMSA 24 ' Exhibit 7 Seven Springfield Arts Institutions: Percentage of Audience fsbm Out- 25 of Region Exhibit 8 Sumftlary of Secondary Economic EffecSs for Ten Art5 Institutions in the Springfield SMSA,,FY 1978 ,30 Exhibit 9 Government Revenues of Ten Ants Institutions,'Springfield 32 /- SMSA, 1977-1978 Exhibit 10 Selected Revenue& and Costs to Lotal Governmpnt.Attributable to Ten Springfield ArtsInStit* utions 33 r -,/ ACKNOWLEDGEMENTS In recent years there has been a growing interest n understanding better the statusInd community impact of artistic and cultural insiitu- tions. This case study isone of six conOticted aS a continuation ofa reSearch fort begun in 1976. these efforts have been supported by the National En oviment for,the Ar'ts through-its Research Division. (The history of the entire project is described in the "IntrOduction" section to this report.) We thank.the Endowment for its support and acknowledge alsO cost sharing provided by the Johns Hopkins University and partici- ) pating agencies. The succes5ful completIon of:this six city project, was due to the efforts of a number of persons in the participating cities and institutions. We are most.pleased to acknowledge the principal project staff at Spring- board and theCenter-for theStildya.liiddlez.SizeCities at Sangamon State University: ,Charies Kirchner, Board Member of Springboard, served as Study Director. Dr. Phillip Gregg of'the Center for the Study of Middle- > Size Cities and Associate Professor of Public ACiministration.was respon- sible.for coordinating the project.including the Wide array of day-to-day tasks and responsibilities described in the technical supplement to.this' repor . Dr. John Bowman, Associate Professor of Economics at Sangamon State, assisted. Andi Rosenstein:, a student in the University's Community Arts Management Program, was Project Administrative Assistarit. Exhibit 1lists the staff persons and volunteers identified by Springboard as individuals who actively participated in the study. We want to express our than'ks TA only to them but to the institutiOnal officers and staff who 'Cooperated so magniticently in alfiphaseiofople Exhibit 1' Acknowledgements Study Director Charles Kirchner, Board Member/Springboard Study Coordinators. ft Dr. Phillip M. Gregg, Center -ror the Study of Middle-Size Cities arid Associate Professor of Public Administration at Sangamon $tate University. Dr. John Bowman, AssociateProfessor of Economics At Sangamon State 'University. Project Steering'Committee Mr. Donald Biggerstaff Bernadette Nolan President Immediate Past President Springboard Springboard, ,Nancy Evans .AndA Rosenstein Office Coordinator Community Arts Management student Springboard Intern with Springboard Sangamon State University ------- Dave-KiliMan Bob yesley 07.1, Assistant Director Center for Middle-Size Cities Springfield7Sangamon County Sangamon'State University Regional Planning Commission ther Project Staff at the Center the Study of Middle-Size Cities Ramin Behtash Kathy Oglesby Graduate Assistant Secre y John W. Foley, Sue Ann Schleder Director SecreTy Associate Profesor of Sociology Daniel 'Johnson Julie Slack Past Director Intern Professor of Sociology Community Arts Management Jan Kohl Ken Stanek Intern Graduate Assistant Communitypts Management Kathy Landahl. Kathy Mooldridge 7Gr.thate Assistant Student Worker 4 C., Exhibit 1 (cont'A) - z lieads of Participating Organizgions and thein Designates Irwin Muncy,-President Robert Evans,, Curator'of Fine iArtg 4 Springfield Symphony Orchestra , IllinOis gtate MUSQUM Mina Halliday, President , William Alderfer, Executive Director Springfield Theatre Guild. Illinois State Historical Library 'Mrs. Pauline Telford, President ,Clark Denton III, President Springfield Art Association Springfield Muni Qpera, 1977-78 William BealTer, Executive Director Richard DeFend, President. ,Springfield Art Association Spfiingfield Muni Opera, 1978-79.. e Bernard Armbruster, Chairmani 'James Graham . j. Old Capitol Art Fair 'Springfield Symphony OrcheStra . Walter Stehman, President Hans.Anker- Springfield Community Concerts SOringfield Symphony Orchestra Mrs. Charles Wainer, President Olive Foster 'Springfield Ballet'Company Assistani State Historial s r Illinois State Historical LibrarY k -Audiencé Study Volunteers Don Biggerstaff 4 Carl Volkmann' Ed Giganti Bob SwenSon Sharon Brown, .Nancy Evans Andi Rosenstein