THE

ARTS = BUSINESS FOR VIRGINIA

V I R G I N I A N S F O R T H E A R T S

the arts build communities

A BILLION DOLLAR

INDUSTRYVirginia’sartsandculturesectorisabilliondollarindustrythatcreatesjobsandastronger,moreskilledworkforce;generatestaxrevenues;andbuildscommunitiesculturallyandeconomically.Virginia’smorethan500non-profitartsorganizationsgeneratedirect,indirectandinducedeffectsthatcreateanannualeconomicimpactinVirginiaof:

• $849million,plus$342millioninout-of-statevisitorspending,and

• $447millioninpersonalincomeforVirginiaresidents,includingmorethan$300millioninlaborcompensationandemploymentfornearly19,000people.1

Thesesmallbusinesses–andthosecomplementarybusinessestheyhelpcreate–arekeycontributorstothejobopportunitiesandqualityoflifethatattractandretaintheworkersneededforathrivingeconomy.

AccordingtoGlenSkinner,ExecutiveDirectoroftheLENOWISCOPlanningDistrictCommissioninsouthwestVirginia,“Supportingtheartsatalllevelsiscriticallyimportantforeconomicdevelopmentefforts....Iwouldpropose,thatallthingsbeingequal,thecommunitieswithactiveartsandentertainmentvenueswillalwaysfairbetter,regardlessoftheprevailingeconomiccircumstances.”

CONNECTING CREATIVITY AND ECONOMIC COMPETITIVENESS Accordingtoa2009NationalGovernorsAssociationreport,“Anumberoffactorsunderscoretheconnectionbetweeneconomiccompetitivenessandcreativity.Forexample:

• Creativeandnewmediaindustriesaregrowinginnumberandplayingincreasinglyprominenteconomicandsocialroles;

• Companies’decisionsaboutwheretolocatetheirbusinessesoftenareinfluencedbyfactorssuchasthereadyavailabilityofacreativeworkforceandthequalityoflifeavailabletoemployees;

• Artsandculturecanplayamajorroleincommunitydevelopmentandredevelopmentbycreatingnewjobsaswellasfosteringanenvironmentandamenitiesthatattracttalentedyoungworkers;and

• Tourismcenteredonartsandculturecancontributetostateandlocaleconomicgrowthbyprovidingadiversifiedandsustainablemeansforcreatingjobsandattractingrevenue.”2

AccordingtoanarticleinNewsweek’sJuly10,2010issue,a2010“globalIBMpollof1,500CEOsidentifiedcreativityastheNo.1‘leadershipcompetency’ofthefuture.Yetit’snotjustaboutsustainingournation’seconomicgrowth.Allaroundusaremattersofnationalandinternationalimportancethatarecryingoutforcreativesolutions,fromsavingtheGulfofMexicotobringingpeacetoAfghanistantodeliveringhealthcare.Suchsolutionsemergefromahealthymarketplaceofideas,sustainedbyapopulaceconstantlycontributingoriginalideasandreceptivetotheideasofothers.”

“[We] recognize that arts pay off beyond the

personal, that a vibrant cultural life helps attract

the kind of employers the region needs. Economic

development officials know that for prospective

corporate neighbors, the arts can be as much a

part of the infrastructure as roads and schools.”

–CarolCapo,DailyPressEditorial

(HamptonRoads),Nov22,2008

the arts build communities

Adominoeffectiscreatedinregionswithavibrantartsandcultureindustry:tourismincreases;businessesthrive;newbusinessesandindustriesemerge;creative,talentedpeopleenergizetheworkforcewithinnovation;andourcompetitiveadvantageisstrengthened.Theartsdomorethanentertainandinspireus:theycreatejobs;drawastronger,moreskilledandcreativeworkforce;generatetaxrevenues;andbuildcommunitiesbothculturallyandeconomically.

The arts build … Jobs Artsorganizationsaresmallbusinesses.Smallbusinessesaccountforapproximately75%ofnewjobgrowthintheCommonwealth.3Inadditiontodirectstaff,artsorganizationsalsoemployaccountants,constructionworkers,plumbers,etc.,andgeneratebusinessesthatserveculturaltourism(e.g.,restaurants/hotels/parking).

Barter Theatre (Abingdon),oneofthetop10employersinhistoricAbingdon,contributesgreatlytotheeconomicdevelopmentintheregion,generatingtotalexpendituresamongtheorganizationanditsaudiencesofmorethan$9.4million;279full-timeequivalentjobs;localtaxes&feesof$390,874;andstatetaxes&fees

of$476,727during2008-2009.4Barterisacornerstonefortourismandculturaleventsthroughpartnershipswithlocalandregionaleconomicdevelopmentofficesthathelpattractcreativity-basedcompaniestotheregion,suchasG2KGames,Inc.(www.g2kgames.net),AdvancedVehicleResearchCenter(www.avrc.com),andRogersFoamCorporation(www.rogersfoamcorp.com).

The Richmond Symphonyisthelargestperformingartsorganizationinitsregionandincludesanorchestraof70+professionalmusicians,the115-voiceRichmondSymphonyChorusandmorethan200studentsinitsYouthOrchestraprograms.Itsorganizationandaudiencesgenerateexpendituresofmorethan$7.6million,211full-timeequivalentjobs,localtaxesandfeesof$341,709andstatetaxesandfeesof$353,345.5

The arts build … Tourism

Artmuseums,music,theatre,dancevenuesandfestivalsareacorecomponentofVirginiatourism,attractingvisitorsfromfarandwidewhosespending(intheformofmeals,hotels,gifts,taxes,etc.)leadstoincreasedrevenueforthecommunity.

HOW THE ARTS BUILD COMMUNITIES

AND THE ECONOMY

The cast of Barter Theatre’s production of TheWho’s

Tommy performs “Pinball Wizard” (2008)

Members of the Richmond Symphony

the arts build communities

The American Shakespeare Center (Staunton)hascelebratedShakespeare’stheatre,languageandhumanitybyexploringtheEnglishRenaissancestateanditspracticesthroughperformanceandeducation.Withare-creationofShakespeare’soriginalindoortheatre,theBlackfriarsPlayhouse,theCenterbringsShakespeare’splaystolifeforteachers,studentsandpeopleofallages.TheCenter’sreputationofexcellenceattractspatronswithinafour-hourdrivingradius,alongwithnationalandsomeinternationalpatrons.The Crooked Road: Virginia’s Heritage Music Trail (Southwest Virginia),listedbyUSA TODAYasoneofits15“mustsee”placestovisitinthenation,generatestourismandeconomicdevelopmentintheBlueRidgeandAppalachianregionsofSouthwestVirginia.Linkingvenuesandexperiencesthathaveexistedforyearsintoamorecoordinatedtourismexperienceforthetravelingpublic,theCrookedRoadencompasses10counties,threecities,19towns,fiveregionalplanningdistricts,twotourismorganizations,eightmajorvenuesand40affiliatedpartners.

The arts build … Creative CommunitiesAccordingtoa2009NationalGovernors’Associationreport,artsandculturecanplayamajorroleincommunitydevelopmentandredevelopmentbycreatingnewjobs,aswellasfosteringanenvironmentandamenitiesthatattracttalentedyoungworkers.

Workhouse Arts Center (Lorton),oncepartoftheD.C.correctionalcomplexandnowontheNationalRegisterofHistoricPlaces,providesvisualandperformingartsstudiosandexhibitionspaceformorethan100oftheregion’sprofessionaland

emergingartists.Itsmissionistoenrichthelivesofallwithin

itsreachbycreatingavibrantculturalcommunitythatfostersadiverseofferingofarts,education,socialandentertainmentexperiencesforpeopleofallages.From2008-2013,theWorkhouseisexpectedtogenerate$50millioninrevenueand$125millioninancillaryspendingforVirginia.6

American Shakespeare Center’s production of Hamlet (2005)

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Art students at the Workhouse Arts Center

the arts build communities

The arts build … Revitalized Communities InmanyVirginiacommunities,artsorganizationscatalyzecommunityinvestmentandgrowthbyrenovatingvacant,run-downbuildingstoserveasperformancevenuesandexhibitionspaces,whichthenspurthegrowthofadditionalpatronservices,suchasrestaurants,hotelsandgiftshops.

The Prizery (South Boston)isaregionalcommunityandfineartscenterinatownbatteredeconomicallybythe

lossesoftextilesandtobacco.ListedontheNationalRegisterofHistoricPlaces,thePrizery’s1902Italianatebuildingishometoahalf-dozencivicandartsgroupsandthelocalTourismOffice.Sinceitsaward-winning2005renovation,ThePrizeryhashelpedspawnedadowntownrenaissancewiththeopeningofnewboutiques,gourmetfoodstores,upscalerestaurants,educationalcentersandmore.StatisticsfromtheTravelIndustryAssociationfortheVirginiaTourismCorporationshowthatspendingbytravelersinHalifaxCountyincreasedfrom$29millionin2004to$31millionin2008.

The arts build … The Future WorkforceArtstudiesareimportantindevelopingthecreativityneededforaworkforcethatcancompeteinaglobaleconomy.Eighty-fivepercentofsurveyedbusinessexecutivesindicatedthattheyarecurrentlyhavingdifficultyrecruitingindividualswhopossesscreativeability;[and]thedemandforcreativepeoplewillincreaseasU.S.firmspursueinnovation.7Othercountries,includingBritainandChina,havealreadyrecognizedtheurgencyandinstitutedwidespreadeducationalreformsemphasizingcreativitythroughoutthecurricula.

The American Youth Philharmonic Orchestras (Annandale)isrecognizedasoneoftheleadingorchestraltrainingprogramsinthenationandprovidescompetitiveworld-class

V I R G I N I A N S F O R T H E A R T S

The Lincoln Theatre’s “presence and programming have greatly impacted the town’s efforts toward economic renewal. Several downtown businesses have opened since the theatre’s renovation, including a number of restaurants and gift shops. These businesses [provide] quality destinations to shop and dine while increasing revenue from new jobs and taxes.” –DavidP.Helms,MayorofMarion

the arts build communities

trainingandperformanceopportunitiesforyoungmusiciansages7to21.AYPO’sMusicBuddiesMentorshipprogramprovides1,000free,weeklymusiclessonsannuallytounderprivilegedstudentsat15publicschools.

Park Place Child Life Center (Norfolk) providesarts-basedprogrammingforchildrenages6to14inParkPlace,aprimarilyAfrican-American,economicallydisadvantagedneighborhoodinNorfolk.Surveysfromparentsandteachersreport:100%of“childrenhadbettergradesasaresultofParkPlaceChildLifeCenterparticipation;”75%showed“animprovedattitudetowardschoolwork;”100%said“studentsbenefitedfromhavingasafeplacetogoafterschool;”and87%saidthe“childhadamorepositiveattitudeinotherareasoflifeasaresultoftheirparticipationintheprogram.”8

The Podium Foundation (Richmond)operatesaliteraryjournalcalledPODIUM,whichpublishesthewritings,drawingsandexpressionsofRichmondCityPublicSchoolshigh-schoolstudents.Publishedeachspring,morethan20,000freecopiesaredistributedeachyear,andawebsite(www.PodiumFoundation.com)servesastheonlineandinteractiveplatformforstudents’creativeefforts.Studentbenefitsincluderealexperiencewithwriting,editingandworkingwithdeadlines;publishinganddesign;leadershipskills;andteambuildingandcommunicationskills.

“Not only do [arts] programs have a positive effect

on the students, they also have a positive economic

impact on our community.... The summer art

programs have a 10% return in state and local

revenue of the school system’s investment. The

program also produces approximately 35 part-time

jobs for residents of our community.”

–AliceWilliams,WiseCountyPublicSchools

“…The arts lift our spirits and help build our communities. My predecessors at Norfolk Southern were clear that the arts were key in bringing our headquarters here [Norfolk].” –DavidGoode,Retiredchairman, PresidentandCEO, NorfolkSouthernCorporation

Artwork titled “Paper airplanes” by a Podium Foundation student

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the arts build communities

FACTS ABOUT THE ARTS− There are approximately 500 not-for-

profit arts organizations and 25,000 professional artists in Virginia.9

− Current per capita funding for the arts in Virginia is at 43 cents, down from 80 cents per capita in FY 2007-08, and the lowest level of any arts agency in neighboring states. As of March 2010, North Carolina funded the arts at $.94, Maryland at $2.36, Kentucky at $.77, and West Virginia at $1.38.10

− In Virginia Beach, the arts generated $56.8 million in economic activity, 1,411 jobs, $2.3 million in local government tax revenues and $3.6 million in state government tax revenues in 2009.11

− Nationwide, the “non-profit arts sector supports more jobs than accountants and auditors, public safety officers and even lawyers and just slightly fewer than elementary school teachers.”12

Artwork titled “Paper airplanes” by a Podium Foundation student

THE BOTTOM LINETheeconomicpoweroftheartsinVirginiaisundeniable.Virginia’sartsandcultureindustrydependsonawidebaseoffundingsourcestooperate,suchasticketsales,memberships,individualandcorporatedonationsandstateandlocalgovernments.Continuedstatesupportisvitaltothesurvivalofourcultural,social,educationalandeconomicinfrastructure.

Everydollarthestateinvestsinthearts(throughtheVirginiaCommissionfortheArts)returns$7ininvestmentbycorporations,throughticketandeventsales,andinlocalgovernmentfunding.Thestateinvestmentalsoleveragesfederalmatchingfunds–$1millionin2009–fromtheNationalEndowmentfortheArts.

“…when Arlington places art near business

the result is more spending. The combination

creates jobs and tax dollars for the County

and a better quality of life for all.”

–JohnSeal,Chair

ArlingtonArtsCommission

THE VIRGINIA COMMISSION FOR THE ARTSMorethan240ofVirginia’snon-profitartsorganizationsreceivegrantfundingfromthestate-runVirginiaCommissionfortheArts(VCA).In2009alone:

• VCAfundingmadepossible39,943artseventsattendedby7.7millionpeople,includingVirginiaresidentsandout-of-state-visitors.

• VirtuallyallpubliclyfundedgranteesoftheVirginiaCommissionfortheArtsprovideservicesthatsupportK-12education.

• 1.9millionschoolchildrenparticipatedinartsactivitiesandeducationalprogramsfundedbytheVCA.

• Morethan30percentofVCAfundsgotorural,underservedareas.

• In2009,thestateinvestmentof$5.3millionwasmatchedby$39millioninprivateandlocalgovernmentsupportforthearts.

FOOTNOTES:1 WessexGroup,“TheEconomicImpact

ofArtsandCulturalOrganizationsinVirginia,”VirginiansfortheArts,2000.

2 NationalGovernorsAssociation,“TheArts&TheEconomy:UsingArtsandCulturetoStimulateStateEconomicDevelopment,”2008.

3 OfficeofGovernorBobMcDonnell,“GovernorMcDonnellAnnouncesMembersofGovernor’sSupplierAdvisoryBoard.”PressRelease,August16,2010.

4 AmericansfortheArtsEconomicProsperityCalculator,http://www.americansforthearts.org/information_services/research/services/economic_impact/aepiii_calculator.html.

5 AmericansfortheArtsEconomicProsperityCalculator.

6 WorkhouseArtsCenterWebsite,www.workhousearts.org.

7 TheConferenceBoardResearchReport1424,“ReadytoInnovate:AreEducatorsandExecutivesAlignedontheCreativeReadinessoftheU.S.Workforce,”2008.

8 ParkPlaceChildLifeCenter,ParentandTeacherSurvey,2008.

9 VirginiaCommissionfortheArts,AgencyStrategicPlan,2010-2012.

10 NationalAssemblyofStateArtsAgencies,http://www.nasaa-arts.org/Research/Grant-Making/2010_funding_and_grantmaking.pdf,2010.

11 CityofVirginiaBeach,OfficeofCulturalAffairs,NewsRelease,January5,2010.

12 AmericansfortheArts,Arts&EconomicProsperityIIIStudy,2007.

V I RGI N I A N S F OR T H E A RT S,a non-profit founded in 1992, works to

advance the arts in Virginia by increasing public awareness of the important

contributions the arts make to the life, culture, and economy of the state. The

organization works to increase the public value of and appreciation for the

arts; provides networking and professional education; and advocates for public

funding for the Virginia Commission for the Arts, which makes operating

grants essential to the state’s arts organizations. For additional profiles of

Virginia’s arts organizations, please visit the VFTA website at VaForArts.org.

V I R G I N I A N S F O R T H E A R T S

1 East Cary Street | Richmond, VA 23219 | 804-644-ARTS (2787) | FAX 804-783-0098 | VaForArts@aol.com

This document was supported in part by a grant from Altria Group.