[House Hearing, 111 Congress]
[From the U.S. Government Publishing Office]
THE ECONOMIC AND EMPLOYMENT IMPACT OF THE ARTS AND MUSIC INDUSTRY
=======================================================================
HEARING
before the
COMMITTEE ON
EDUCATION AND LABOR
U.S. House of Representatives
ONE HUNDRED ELEVENTH CONGRESS
FIRST SESSION
__________
HEARING HELD IN WASHINGTON, DC, MARCH 26, 2009
__________
Serial No. 111-12
__________
Printed for the use of the Committee on Education and Labor
Available on the Internet:
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COMMITTEE ON EDUCATION AND LABOR
GEORGE MILLER, California, Chairman
Dale E. Kildee, Michigan, Vice Howard P. ``Buck'' McKeon,
Chairman California,
Donald M. Payne, New Jersey Senior Republican Member
Robert E. Andrews, New Jersey Thomas E. Petri, Wisconsin
Robert C. ``Bobby'' Scott, Virginia Peter Hoekstra, Michigan
Lynn C. Woolsey, California Michael N. Castle, Delaware
Ruben Hinojosa, Texas Mark E. Souder, Indiana
Carolyn McCarthy, New York Vernon J. Ehlers, Michigan
John F. Tierney, Massachusetts Judy Biggert, Illinois
Dennis J. Kucinich, Ohio Todd Russell Platts, Pennsylvania
David Wu, Oregon Joe Wilson, South Carolina
Rush D. Holt, New Jersey John Kline, Minnesota
Susan A. Davis, California Cathy McMorris Rodgers, Washington
Raul M. Grijalva, Arizona Tom Price, Georgia
Timothy H. Bishop, New York Rob Bishop, Utah
Joe Sestak, Pennsylvania Brett Guthrie, Kentucky
David Loebsack, Iowa Bill Cassidy, Louisiana
Mazie Hirono, Hawaii Tom McClintock, California
Jason Altmire, Pennsylvania Duncan Hunter, California
Phil Hare, Illinois David P. Roe, Tennessee
Yvette D. Clarke, New York Glenn Thompson, Pennsylvania
Joe Courtney, Connecticut
Carol Shea-Porter, New Hampshire
Marcia L. Fudge, Ohio
Jared Polis, Colorado
Paul Tonko, New York
Pedro R. Pierluisi, Puerto Rico
Gregorio Kilili Camacho Sablan,
Northern Mariana Islands
Dina Titus, Nevada
[Vacant]
Mark Zuckerman, Staff Director
Sally Stroup, Republican Staff Director
C O N T E N T S
----------
Page
Hearing held on March 26, 2009................................... 1
Statement of Members:
Bishop, Hon. Rob, a Representative in Congress from the State
of Utah.................................................... 5
McKeon, Hon. Howard P. ``Buck,'' Senior Republican Member,
Committee on Education and Labor, prepared statement of.... 55
Miller, Hon. George, Chairman, Committee on Education and
Labor...................................................... 1
Prepared statement of.................................... 2
Additional submission:
Hodes, Hon. Paul W., a Representative in Congress
from the State of New Hampshire, prepared statement
of................................................. 55
Platts, Hon. Todd Russell, a Representative in Congress from
the State of Pennsylvania, submissions for the record:
``Arts Presenters Tracking Survey''...................... 57
Press release of the Association of Performing Arts
Presenters: ``Field at a Glance: Economic Impact on
Arts Presenting Activity and Attendance Stabilize While
Fundraising Is a Concern''............................. 62
Slaughter, Hon. Louise McIntosh, a Representative in Congress
from the State of New York................................. 3
Prepared statement of.................................... 4
Statement of Witnesses:
Bahr, Michael, education director, Utah Shakespearean
Festival................................................... 22
Prepared statement of.................................... 24
Daly, Tim, actor and co-president, the Creative Coalition.... 26
Prepared statement of.................................... 28
Responses to questions for the record.................... 65
Florino, Joanne, executive director, Triad Foundation, Inc... 33
Prepared statement of.................................... 36
Lynch, Robert L., president and CEO, Americans for the Arts.. 12
Prepared statement of.................................... 14
Responses to questions for the record.................... 66
Additional submissions:
``Folk and Traditional Arts Summary''................ 62
``Impact of the Economic Downturn on the Music
Education Workforce and Concepts for a Positive
Response''......................................... 63
``Impact of the Economic Downturn on Museums''....... 64
Ridge, Bruce, chairman, International Conference of Symphony
and Opera Musicians, American Federation of Musicians of
the United States and Canada (AFL-CIO)..................... 30
Prepared statement of.................................... 32
Spring, Michael, director, Miami-Dade County Department of
Cultural Affairs........................................... 18
Prepared statement of.................................... 19
Thomasian, John, director, Center for Best Practices,
National Governors Association............................. 39
Prepared statement of.................................... 41
THE ECONOMIC AND EMPLOYMENT IMPACT OF THE ARTS AND MUSIC INDUSTRY
----------
Thursday, March 26, 2009
U.S. House of Representatives
Committee on Education and Labor
Washington, DC
----------
The committee met, pursuant to call, at 10:04 a.m., in room
2175, Rayburn House Office Building, Hon. George Miller
[chairman of the committee] presiding.
Present: Representatives Miller, Kildee, Woolsey, Kucinich,
Wu, Loebsack, Hirono, Hare, Clarke, Shea-Porter, Fudge, Polis,
Tonko, Titus, Platts, and Guthrie.
Staff Present: Tylease Alli, Hearing Clerk; Catherine
Brown, Senior Education Policy Advisor; Alice Cain, Senior
Education Policy Advisor (K-12); Jody Calemine, Labor Policy
Deputy Director; Adrienne Dunbar, Education Policy Advisor;
Curtis Ellis, Legislative Fellow, Education; Denise Forte,
Director of Education Policy; David Hartzler, Systems
Administrator; Fred Jones, Staff Assistant, Education; Jessica
Kahanek, Press Assistant; Stephanie Moore, General Counsel;
Alex Nock, Deputy Staff Director; Joe Novotny, Chief Clerk;
Rachel Racusen, Communications Director; Melissa Salmanowitz,
Press Secretary; Margaret Young, Staff Assistant, Education;
Mark Zuckerman, Staff Director; Stephanie Arras, Minority
Legislative Assistant; James Bergeron, Minority Deputy Director
of Education and Human Services Policy; Robert Borden, Minority
General Counsel; Cameron Coursen, Minority Assistant
Communications Director; Susan Ross, Minority Director of
Education and Human Services Policy; and Linda Stevens,
Minority Chief Clerk/Assistant to the General Counsel.
Chairman Miller. Morning. The Committee on Education and
Labor will come to order, a quorum being present. And this
morning we will begin our hearing on the arts and their
importance to our country and to our economy by hearing from
Congresswoman Louise Slaughter from New York, cochair of the
Arts Caucus, a leader in the Arts Caucus for so many years; and
Mr. Rob Bishop, a member of this committee from Utah.
Congresswoman Slaughter, we are going to begin with you.
You are recognized for 5 minutes with Mr. Bishop.
[The statement of Mr. Miller follows:]
Prepared Statement of Hon. George Miller, Chairman, Committee on
Education and Labor
Today we'll take a look at the impact of two important sectors of
our economy--the arts and music--and how losses in these fields are
impacting workers, families and communities across the country. Their
contributions to our economy are frequently--and unfairly--overlooked.
Our economy is in the worst crisis this nation has seen since the
Great Depression. Workers are losing jobs at a rate of over 600,000 a
month, families are losing income and benefits, and communities are
suffering. The unemployment rate has hit a 25 year high.
The non-profit arts and culture industries inject over $166 billion
into our economy each year, according to a recent study by the
Americans for the Arts. These sectors support 5.7 million jobs and over
$104 billion in household income.
In many places, like my home state of California, for example, the
arts and music industries are vital engines for local economies--making
up a large share of revenue and providing many employment
opportunities.
Spending by nonprofit arts and culture organizations provide work
for more than just artists, curators, and musicians--they also directly
support builders, plumbers, accountants, printers, and an array of
other occupations.
Workers in these fields are bearing a disproportionate brunt of
this economic tsunami. According to research conducted by the National
Endowment for the Arts, unemployment in the arts rose at a higher rate
than the overall workforce in 2008.
In fact, the unemployment rate for artists is double that of other
professional workers. In the last quarter of 2008, the unemployment
rate for artists grew by 64 percent--for a total of 129,000 displaced
workers.
This is playing out even in the most iconic art venues. In January,
more than a dozen Broadway shows in New York closed and Carnegie Hall
has cut its schedule down by 10 percent.
The Philadelphia Art Museum announced it would have to eliminate 30
positions. The Miami City Ballet has cut eight of its 53 dancers.
Right here in DC, the Smithsonian has instilled a hiring freeze.
And community theatres across the country, from Massachusetts to
South Carolina to Baltimore to San Francisco, are closing their doors.
Without the contributions and influence of the arts, our economy
suffers greatly. Families suffer from layoffs, lost income and
purchasing power.
When we talk about arts and music, we're not just talking about
artists and musicians. We're also talking about museums and galleries,
symphonies and orchestras, community theatres and other non profits
that shape our neighborhoods, towns and cities.
This industry helps attract audiences, spurs local business
development and stimulates learning in classrooms. Research shows that
when students are exposed to arts and music, they perform better in
other subjects.
President Obama has made it clear that arts and music have a
critical role to play in improving our workforce, our schools, and our
quality of life.
Arts, music and other cultural activities bring out our creativity
and make us richer as individuals and communities.
For these very reasons, President Obama's economic recovery plan
included a $50 million investment to save jobs in the arts, supplement
declines in charitable giving, and keep cultural activities thriving in
communities.
He isn't the first President to recognize the importance of
promoting the arts economy in times of recession.
President Roosevelt made art a focal point of his New Deal to lift
this nation out of the Great Depression. His goal was to create
programs that would help every American, no matter how poor, how
hungry, how desperate.
He created the Works Progress Administration. This included
creating a government relief program for 10,000 unemployed artists, who
helped create 100,000 easel paintings, 18,000 sculptures, 13,000
prints, 4,000 murals and other works of art that have helped enrich our
nation.
When Harry Hopkins, who President Roosevelt tasked to run the
program, was questioned about it, he responded ``Hell, they've got to
eat just like other people.''
Many of these murals can still be seen in schools, post offices and
other government buildings. In my district, the Vacaville Post Office
proudly displays ``Fruit Season,'' an oil painting by Emrich Nicholson.
Today's hearing kicks off a series our committee will hold this
Spring to examine how the arts and music can help us rebuild towns and
cities and spur economic growth and also how they can help improve
student learning.
I look forward to hearing from our witnesses about how supporting
the arts and music can help us build a stronger America. Thank you for
being here.
______
STATEMENT OF HON. LOUISE M. SLAUGHTER, A REPRESENTATIVE IN
CONGRESS FROM THE STATE OF NEW YORK
Ms. Slaughter. Thank you very much Mr. Chairman. Good
morning, everyone. All members of the committee, thank you very
much for letting me come this morning.
Chairman Miller. We need you to pull that microphone closer
to you. Is it on? Bend it down a little bit.
Ms. Slaughter. I won't go through that again. I will just
say good morning, everybody.
We are going to talk about an issue that is very near and
dear to my heart this morning, the promotion of art, music and
creative industries as an essential feature of our local,
regional and national economies.
Mr. Chairman, it is such a pleasure to work with you in
supporting our creative industries and our creative workforce.
And I very much appreciate all of your efforts. As the Nation
continues to shift from an industrial manufacturing economy to
one based on ideas and information, cities and States
increasingly recognize that the arts and culture are important
economic assets. They create a hub of economic activity that
helps an area become an appealing place to live, to visit and
to conduct business. The industries also create jobs, attract
investments, generate tax revenues and stimulate local
economies through tourism and urban renewal.
And that is why both the National Governors Association and
the U.S. Conference of Mayors agree that investing in arts and
culture-related industries provide important economic benefits
to local and regional economies. It is also no surprise that
America's overall nonprofit arts and culture industry generates
$166.2 billion in economic activity every single year. The
national impact of this activity is significant. It supports
5.7 million jobs and generates $29.6 billion in government
revenue.
Unfortunately, our creative industries have not been immune
to the ongoing economic crisis. In fact, they have been
particularly hard hit as corporate donations decrease, consumer
spending on arts and cultural activities dwindle, organizations
struggle to maintain their budgets, and arts and humanities
funding decline as States struggle to manage their fiscal
challenges.
Indeed, a $7 million or 20 percent budget decrease in
funding for the New York State Council on the Arts resulted in
573 arts organizations throughout New York State receiving no
funding. Moreover, the Memorial Art Gallery and the Eastman
School of Music at the University of Rochester in my district
have seen philanthropic donations from their endowments
decrease by over 20 percent. And public broadcasters in my
district and across the country are struggling to maintain
exceptional access to the arts in the wake of budget cuts.
Individuals who work in the creative industries are
suffering. A report released this month by the National
Endowment for the Arts found that unemployment rates for
artists have risen more rapidly than for U.S. workers as a
whole. A total of 129,000 artists were unemployed in the fourth
quarter of 2008, an increase of 50,000 people, or 63 percent,
from 1 year earlier. The report also found that the job market
for artists is unlikely to improve until long after the U.S.
economy starts to recover.
Creative workers who are not losing their jobs are
nonetheless still suffering. For example, the Strong National
Museum of Play in Rochester has reduced its share of health
insurance that they can provide their employees. And the
Philharmonic Orchestra has been forced to reduce hours for
part-time workers and eliminate some benefits for all of their
staff.
Clearly, now more than ever, we need to continue robust
support for our Nation's creative industries and workforce.
They pay their way. Supporting the millions of people employed
in the creative industries as well as the organizations,
businesses, and artistic institutions which contribute to local
and regional economies is simply an imperative this Congress
must not cast aside.
In addition to helping our workforce, artistic
organizations, and cities survive this economic downturn, we
should use this time as an opportunity to push for greater
investment in arts education to prepare our children for the
creative, dynamic, and innovative economy they will enter.
Employers today in America and abroad are looking for
imaginative and vibrant young men and women to fill their
rosters.
Learning through the arts reinforces crucial academic
skills in reading, language arts, and math. Just as important,
learning through the arts gives young people the skills they
need to analyze and synthesize information and to solve complex
problems. Educating children early and continuously in the arts
will prepare them for work in today's innovative and creative
post-industrial society.
Again, I thank you for the opportunity to testify before
you today and for holding this hearing at such a crucial
moment. I look forward to working with you, Mr. Chairman, and
Mr. McKeon and others on the committee as well as everybody
else in the House to help support our creative workforce and
industries, and I thank you very much.
[The statement of Ms. Slaughter follows:]
Prepared Statement of Hon. Louise McIntosh Slaughter, a Representative
in Congress From the State of New York
Good morning. I would like to thank you, Chairman Miller and
Ranking Member McKeon for the opportunity to testify before the
Committee today on an issue that is near and dear to my heart--the
promotion of art, music and creative industries as essential features
of our local, regional, and national economies. Mr. Chairman, it is a
pleasure to work with you in supporting our creative industries and our
creative workforce, and I very much appreciate all of your efforts.
As the nation continues to shift from an industrial manufacturing
economy to one based on ideas and information, cities and states
increasingly recognize that the arts and culture are important economic
assets. They create a hub of economic activity that helps an area
become an appealing place to live, visit and conduct business. These
industries also create jobs, attract investments, generate tax
revenues, and stimulate local economies through tourism and urban
renewal. That is why both the National Governor's Association and the
U.S. Conference of Mayors agree that investing in arts and culture-
related industries provide important economic benefits to local and
regional economies. It is also no surprise that America's overall
nonprofit arts and culture industry generates $166.2 billion economic
activity every year. The national impact of this activity is
significant, supporting 5.7 million jobs and generating $29.6 billion
in government revenue.
Unfortunately, our creative industries have not been immune to the
ongoing economic crisis; in fact, they have been particularly hard hit
as corporate donations decrease, consumer spending on arts and culture
activities dwindle, organizations struggle to maintain their budgets,
and arts and humanities funding decline as states struggle to manage
their fiscal challenges. Indeed, a seven million dollar, or twenty
percent budget decrease, in funding for The New York State Council on
the Arts resulted in 573 arts organizations throughout New York State
receiving no funding. Thirty-four of these organizations are in my
congressional district. Moreover, the Memorial Art Gallery and the
Eastman School of Music at the University of Rochester have seen
philanthropic donations and their endowments decrease by over twenty
percent. And public broadcasters in my district and across the country
are struggling to maintain exceptional access to the arts in the wake
of budget cuts.
Individuals working in the creative industries are suffering, too.
A report released this month by the National Endowment for the Arts
found that ``unemployment rates for artists have risen more rapidly
than for U.S. workers as a whole.'' A total of 129,000 artists were
unemployed in the fourth quarter of 2008, an increase of fifty thousand
people, or sixty-three percent, from one year earlier. This report also
found that the job market for artists is unlikely to improve until long
after the U.S. economy starts to recover. Creative workers who are not
losing their jobs are nevertheless still suffering. For example, the
Strong National Museum of Play in Rochester, NY has reduced their share
of health insurance they can provide their employees. And the Rochester
Philharmonic Orchestra has been forced to reduce hours for part time
workers and eliminate some benefits for all of their staff.
Clearly, now more than ever we need to continue robust support for
our nation's creative industries and workforce. Supporting the millions
of people employed in the creative industries as well as the
organizations, businesses and artistic institutions which contribute to
local and regional economies is simply an imperative this Congress
cannot cast aside.
In addition to helping our workforce, artistic organizations and
cities survive this economic downturn, we should use this time as an
opportunity to push for greater investment in arts education to prepare
our children for the creative, dynamic, and innovative economy they
will enter. Employers today in America and abroad are looking for
imaginative and vibrant young men and women to fill their rosters.
Learning through the arts reinforces crucial academic skills in
reading, language arts, and math. But just as important, learning
through the arts gives young people the skills they need to analyze and
synthesize information, and to solve complex problems. Educating
children early and continuously in the arts will prepare them for the
work in today's innovative and creative postindustrial society.
Again, I thank you for the opportunity to testify before you today,
and for holding this hearing at such a critical moment. I look forward
to working with you, Mr. Chairman and Mr. McKeon, as well as the rest
of the Committee, to help support our creative workforce and
industries.
______
Chairman Miller. Thank you very much.
Congressman Bishop.
STATEMENT OF HON. ROB BISHOP, A REPRESENTATIVE IN CONGRESS FROM
THE STATE OF UTAH
Mr. Bishop of Utah. Well, I appreciate the opportunity of
being here. This is a somewhat unusual position for me. I have
never been on this side of the dais. I realize, though, that--
--
Chairman Miller. We have hundreds of questions for you.
Mr. Bishop. I realize, never before have I had such
uninterrupted time nor have I spoken this early in a committee
hearing before. So this is kind of neat. In essence, though, I
am testifying to myself so if I start giggling, I told myself a
joke, and I am not going to share it with the rest of you.
I have had a long tradition actually of being involved in
arts, especially in the State of Utah. I was the House sponsor
of what we passed, a percent for the arts, which was
controversial at the time, but it actually added 1 percent to
the buildings, of every State building, to do, simply for art
additions to that.
I recognize, clearly, that even if you are the not
musically inclined, everyone should learn to play the piano,
simply because the personal decision it takes to try and learn
how to do the fingering and to learn how to count has a
remarkable achievement and a life skill. All kids should have
auditoriums in their school, so they are simply taught how to
be an audience.
When I was in school, even though I was not teaching in
drama, I was involved with the Thespians program. I conducted a
play every year for the drama teacher to help spread out the
work. I accompanied in both schools that I taught for a couple
of the plays. I met my wife in a community theater, where she
was the princess and I was the prince, a role that she regrets
ever having accepted.
Then, later, I became a member of the board of our
community theater, and I was also chairman of the board. And I
was there as the community theater decided to cut their ties
with government spending and go out on their own and be a
private community interest. Without that safety net of
government spending that was coming to them, it was a, I
thought, it was a very bold move, but it worked because we
expanded our audience, and we simply found that charitable
contributions were a way of continuing the product of a
smaller, regional type of theater experience.
There are some things though that government simply cannot
do, regardless of the approach to it. Whenever the government
gets involved in art funding, there are simply always going to
be winners and losers. It is a subjective criteria. It will
always happen that way. Some people will get something; some
won't.
What I found in running my small community theater and then
a private theater organization was, when we tried to get some
kind of national grant, the paperwork involved and the strings
attached basically weren't worth it. Even when I went to the
State of Utah with the Utah Arts Council, which was a much
easier group with which to work, there was always the debate
going on amongst those who gave out the money: Do we spend a
lot of money on a few institutions to make them really good, or
do you spread the wealth around? It doesn't matter what the
decision is; there will always be some winners, and there will
always be some losers, because there is no such thing as
objective criteria on how to spend money on art. It is always
subjective in some particular way.
I think the stimulus bill that we passed illustrates how
that works. We gave in the stimulus package a whole lot of
money for art programs. However, we did not have the time to
develop a new criteria. So all the money went to programs that
already had existing grants given to them. We didn't actually
expand the pie. We didn't actually spend out to more and more
institutions to try and help different groups. A few people got
healthier. There were bigger winners. And, once again, there
were losers. It will always be the situation that takes place
in that kind of environment.
That is why, when the administration talks about cutting
charitable deductions, that is such a threatening situation,
especially for smaller organizations and more rural
organizations who rely specifically on those charitable
donations to survive. And that is one of the things that is
very fearful, especially because, when there are charitable
contributions, there becomes an emotional bond, an emotional
attachment that no government-sponsored program can ever
replicate or ever match.
It is simply a matter of, if there is an entitlement, you
are getting Federal Government money in some way. There is an
entitlement mentality that you all recognize in the letters you
receive from constituents who believe that they are entitled to
something. That doesn't happen when you actually have
charitable contributions going forward, back and forth.
There is in a charitable contribution an exercise in
generosity that builds a relationship that is so important,
especially for smaller arts organizations and for rural arts
organizations. The giver gives because he recognizes there is a
worth in that gift and has a desire to help. At the same time,
the receiver, at least historically, has given something back,
if nothing less or nothing more than gratitude. But there is
always a give-and-take relationship.
That is the bond that is development. That is why Christ
said, you should give of yourself to the poor. He didn't say
take a knife and mug the first traveller that comes along and
take his money to give to the poor, because there is a
relationship that is built when one gives and one receives back
and forth.
There is a sense of worth between the two institutions. The
giver cares about the gift. He cares about the functioning of
that institution. He cares about how that institution will
operate. And the receiver, on the other hand, also has an
increased significance with his stewardship of that particular
gift. And that is why charitable contributions are so
essential.
When I was running, when I was on the board and chairman of
the board of our small theater group, it was essential that we
had charitable contributions. And that is why what we should be
doing in this country, especially in this environment, is
trying to encourage charitable contributions; not discourage
them, not in any way try to diminish them for whatever other
tax purpose that may be gained.
That, by the way, is the same concept we have in our
campaigns. We don't go out anymore trying to find a few big
donors to fund campaigns. Instead, we get small contributions
from a lot of people. And you ought to realize that when you
ask somebody from a campaign, if they give you a $25 bill, that
may not fund a whole lot, but you build a relationship with
that individual. There is a bond that is developed. It is a
strengthening tie, and that is why charitable contributions are
so essential.
And the one thing we need to do is do those types of
actions that encourage charitable contributions. If we don't,
there are going to be more winners and more losers. And those
losers, unfortunately, are going to be more smaller
organizations; they are going to be more rural organizations,
where we actually need to expand the arts and what it can be.
Chairman Miller. See how tough it is to be on that side of
the table? Now you can jump up and come to this side of the
table.
Mr. Bishop. Can I ask myself a question then?
Chairman Miller. On your own time.
Mr. Bishop. I apologize. I was a minute and a half over. I
didn't look there. I apologize for that, Mr. Chairman.
Chairman Miller. Thank you very much, both of you, for your
testimony and for your support. We look forward to continuing
to work with you. Thank you so much.
We are going to now ask our panel of witnesses to come
forward, and I am going to recognize Mr. Lynch, Mr. Spring, Mr.
Bahr, Mr. Daly, Mr. Ridge, Ms. Florino, and Mr. Thomasian. If
you would come forward, please.
The Chair is going to recognize himself for the purpose of
making an opening statement. I was waiting for my Republican
counterpart to show. Mr. Guthrie is here, and I will begin.
Today we will look at the impact of two important sectors
of our economy, the arts and music, and how losses in these
fields are impacting workers, families, and communities across
the country. Their contributions to our economy are frequently
and unfairly overlooked. Our economy is in the worst crisis
this Nation has seen since the Great Depression. Workers are
losing jobs at a rate of over 600,000 a month. Families are
losing income and benefits, and communities are suffering.
The unemployment rate has hit a 25-year high. The nonprofit
arts and cultural industries inject over $166 billion into our
economy each year, according to recent studies by Americans For
the Arts. These sectors support 5.7 million jobs and over $104
billion in household income. In many places, like my home State
of California for example, the arts and music industries are
vital engines of local economies, making up large shares of
revenue and providing many employment opportunities.
Spending by nonprofit arts and cultural organizations
provides work for more than just artists, curators and
musicians. They also directly support builders, plumbers
accountants, printers and an array of other occupations.
Workers in these fields are bearing a disproportionate brunt of
this economic tsunami. According to research conducted by the
National Endowment for the Arts, unemployment in the arts rose
at a higher rate than the overall workforce in 2008. In fact,
the unemployment rate for artists doubled that of other
professional workers. In the last quarter of 2008, the
unemployment rate by artists grew by 64 percent for a total of
129,000 displaced workers.
This is playing out even in the most iconic art venues. In
January, more than a dozen Broadway shows in New York closed,
and Carnegie Hall has cut its schedule down by 10 percent. The
Philadelphia Art Museum announced it would eliminate 30
positions. The Miami City Ballet has cut 53 of its dancers.
Right here in D.C., the Smithsonian has instilled a hiring
freeze. The community theaters across the country, from
Massachusetts to South Carolina, from Baltimore to San
Francisco, are closing their doors.
Without the contributions and influence of the arts, our
economy suffers greatly. Families suffer from layoffs, lost
income, and purchasing power. When we talk about the arts and
music, we are not just talking about artists and musicians. We
are also talking about museums and galleries and symphonies and
orchestras, community theaters and nonprofits that shape our
neighborhoods, our towns and our cities. This industry helps
attract audiences, spurs local business development, and
stimulates learning in classrooms.
Research shows that when students are exposed to arts and
music, they perform better in other subjects. President Obama
has made it clear that the arts and music have a critical role
in improving our workforce, our schools and our quality of
life. Arts and music and other cultural activities bring out
our creativity and make us richer as individuals and
communities. For this very reason, President Obama's economic
recovery plan included $50 million in investment to save jobs
in the arts and supplement declines in charitable giving and
keep cultural activities thriving in the communities.
He isn't the first President to recognize the importance of
promoting the arts, and the arts economy, in times of
recession. President Roosevelt made arts a focal point of his
New Deal to lift the Nation out of the Great Depression. His
goal was to create programs that would help every American, no
matter how poor, how hungry or how desperate. He created the
WPA administration. This included creating government relief
programs for 10,000 unemployed artists, who helped create
100,000 easel paintings, 18,000 sculptures, 13,000 prints, and
4,000 murals and other works of are that have helped enrich our
Nation. When Harry Hopkins, who President Roosevelt tasked to
run the program, was questioned about it, he responded, ``hell
they have to eat just like any other people.''
Many of these murals can still be seen in schools, post
offices and other government buildings. In my district, the
Vacaville Post Office proudly displays ``Fruit Season,'' an oil
painting by Emrich Nicholson, portraying the agricultural
culture of that time in that community.
Today's hearing kicks off a series our committee will be
holding this spring to examine how arts and music can help
rebuild our towns and cities, spur economic growth, and how
they can help improve student learning. I look forward to
hearing from our witnesses about how supporting the arts and
music can help us build a stronger America. And thank you very
much for being here.
Now I would like to yield to Mr. Guthrie for the purposes
of making an opening statement.
Mr. Guthrie. Thank you, Mr. Chairman.
And good morning, Mr. Daly. I spent a lot of time, when I
should have been studying, watching you on television when I
was in college.
Mr. Daly. Sorry about that.
Mr. Guthrie. You had a very great show, and I enjoyed
watching it very much.
One of the benefits of living in a free society is that its
citizens are free to create. This freedom has given birth to
art forms that Americans and people around the world have
enjoyed for decades. Take music, blues, country, jazz, rock 'n'
roll, all of them come from America. Then there is Broadway and
Hollywood. For more than a century, American films, plays,
musicals and TV shows have been loved and respected the world
over.
Mr. Chairman, we should be proud of our artists, but not
just for their creative achievements. After all, they are in
show business. It is a real industry that has ups and downs
like any other. And what helps support this industry, in large
measure, nonprofit and charitable foundations. When you look
beyond the superstars with their mansions and their millions,
you find that many talented working artists across the country
are supported this way.
Experts say that the $43 billion that foundations give out
help generate more than $500 billion in household income. It
also contributed some $145 billion in tax revenues. That is
music to a lot of people's ears, especially in these times.
But it seems President Obama wants to stop the music and
send the band home. The Obama administration's new budget will
limit charitable deductions in the Tax Code. These tax
deductions allow, even encourage, people to give to foundations
and charities. Whether they contribute $25 or $25 million, a
deduction applies to them. And foundations need these
donations.
Usually individual contributions are often their sole
source of income. So if you limit charitable deductions, you
limit support of the arts and other worthy causes. It is that
simple.
Don't take my word for it. Ask Martin Feldstein. He is an
economics professor from Harvard. He wrote an op-ed piece in
The Washington Post yesterday about this very subject. In his
article Feldstein says, President Obama's proposal would
effectively transfer $7 billion a year from the Nation's
charitable institutions to the Federal Government. This
transfer, Feldstein, says would basically be a nationwide tax
on charities.
After speaking with Professor Feldstein, go talk to the
Association of Performing Arts Presenters. In a report out this
month, the association says that more than half of the
performing groups with theaters and facilities have failed to
meet their fundraising goals.
As the Obama administration tinkers with the Tax Code, it
is important that we, as Members of Congress, understand how it
affects nonprofits and foundations. Whether supporting a local
theater group, homeless shelter, or children's hospital,
nonprofits and charities play a starring role in American life.
We should create policies that best increase philanthropy and
private resources available for charities, including support of
the arts.
Finally, we should highlight how private charities are
independent, effective, and innovative, just like American
artists, including the ones with us today. And I have an
American artist at home. My 11-year-old is active in our
children's youth theater and is going to be in Charlotte's Web
next month. So that is an advertisement, if you are going to be
in Bowling Green, Kentucky, to come see them. It has really
made a difference. It is a place where she fits in. Where other
kids play sports and TV, she fits in on the stage and has
really enjoyed it.
Thank you, Chairman Miller, and I yield back.
Chairman Miller. Thank you.
Thank you very much. Again, welcome to the committee. Thank
you for giving us your time and your expertise.
I am going to introduce you quickly here, and then we are
going to begin with your testimony.
Mr. Lynch, we are going to begin with you. When we do, when
you begin testifying, a green light will go on in front of you.
Unlike Mr. Bishop, you will see the red light come on. It is
commanded that you will see the red light come on. At that
point, your time will expire. There will be an orange light
which will tell you, you have about a minute. Five minutes is a
very short period of time, so organize your thoughts well. But
we want you to be able to be comfortable in delivering your
testimony in a manner you think is coherent.
And then we will have time for questions. This hearing will
end by 12:00. My concern is that we are into the amendment
process on the floor, and I am not quite sure when we will be
asked to go to the floor for votes. And depending on those
circumstances, if it is a long series of votes, which it may
be, hopefully, we will be done before then. But if not, we will
not hold you until after those votes. That is something
witnesses should not have to endure, is when we leave the room
for an hour, and you have to stay here.
Thank you in advance. With all of those conditions, we
really welcome your testimony.
First, let me begin by introducing Robert L. Lynch, who is
the president and CEO of Americans for the Arts, a national
organization dedicated to advancing the arts and arts
education. Under his 24 years of leadership, the organization
has grown over 50 times its original size. In 2005, Mr. Lynch
created Americans for the Arts Action Fund to engage citizens
in advocating arts-friendly public policies. Mr. Lynch plays
piano, mandolin, guitar and lives in Washington, D.C.
Michael Spring is the director of Miami-Dade County
Department of Cultural Affairs. Michael Spring serves as
director of that organization. For over 25 years, he has served
at the department. He has helped build Miami-Dade County's
cultural community into more than $922 million annual industry
comprised of more than 1,000 nonprofit cultural groups and
thousands of artists. Mr. Spring represents the department in
numerous culture and civic communities, and he continues to
paint and develop his interest in visual arts.
Michael Bahr is education director of the Utah
Shakespearean Festival, where he has created numerous outreach
programs for students. As a teacher in theater arts in Utah and
California schools, Mr. Bahr developed educational theater
programs in grade schools, junior highs and high schools. He
received many awards for his work, including a 2-year
nomination for the Huntsman Award and Outstanding Teacher of
the Year.
Tim Daly serves as copresident of The Creative Coalition, a
nonprofit, nonpartisan social and political advocacy
organization for the entertainment industry. He is a veteran
actor and has played a variety of roles in film and television.
Mr. Daly received an Emmy nomination for Outstanding Guest
Actor in a Drama Series for his role as J.T. in the HBO series
``The Sopranos.'' He currently stars in season two of ABC's
Private Practice and is also producing a documentary film,
called ``PoliWood,'' which takes an in-depth look at the 2008
Presidential election.
Bruce Ridge is chairman of the International Conference of
Symphony and Opera Musicians, a conference of the American
Federation of Musicians, and a member of the North Carolina
Symphony, where he plays a double bass. Nationally, Mr. Ridge
leads the conference's work in arts and advocacy, improving
labor relations throughout the field. He has spoken around the
country to orchestral musicians and arts administrators about
increasing orchestra services to their communities through
enhancing business development and strengthening arts
education.
Joanne Florino has been executive director of the Triad
Foundation of Ithaca, New York, since April 2003. The Triad
Foundation makes over $9 million in grants each year, including
grants in the arts in locations such as Charlotte, North
Carolina; Tampa, Florida; and Ithaca, New York. Prior to
working at Triad, Ms. Florino worked as the executive director
of the Parks Foundation where she administered grant-making
programs primarily focussed in higher education.
John Thomasian directs the National Governors Association
Center of Best Practices, which helps Governors and their
policy advisors develop and implement innovative solutions to
governance and policy changes. The National Governors
Association Center helps Governors and their staffs develop
cutting-edge solutions to stay ahead of potential problems. As
the center director, Mr. Thomasian oversees all there is of
domestic policy with particular areas of expertise including
energy, health care reform, homeland security infrastructure,
the economy, and the arts.
With that, let me, again, welcome you.
Mr. Lynch, we are going to begin with you. Thank you.
STATEMENT OF ROBERT L. LYNCH, PRESIDENT AND CEO, AMERICANS FOR
THE ARTS
Mr. Lynch. Well, I want to thank you very much, Chairman
Miller, for this opportunity, and also, I want to thank so many
members of the committee for being here. It is very exciting to
have this kind of a turnout.
The opportunity here is for us to talk about the broad
spectrum of the arts, visual art, performing art, music,
theater, dance, the creative industries as a whole. And I want
to just--I have written testimony that I have sent forward. I
simply want to say a few words, a few remarks that relate to
that.
My remarks are basically that I have great news, and I have
tough news. And you have heard some of both already as we have
gone forward. Louise Slaughter, the great leader of our
Congressional Arts Caucus, has been very articulate on talking
about both the problems that the arts face and the
opportunities here.
The great news is this: We know that there are 686,000
organizations out there, for-profit and nonprofit
organizations, in the arts. We know that they employ 2.8
million people. That is more than people realize. Right there,
it is interesting to look at: 4.2 percent of all businesses in
America, and over 2 percent of all the jobs in America. And it
is a growth industry as a whole.
The figures from 2008 to 2009, there is a 10 percent growth
in the numbers of these organizations. When we take a look at
these creative industries, if I were to take a look at
Congressman Miller's district, there are 1,292 businesses, arts
businesses, in that district, employing 3,983 people. And
simply looking at the committee members, each of you has a
packet with those figures.
But I look at Congresswoman Clarke's district, 1,287
businesses employing 4,000 people. Congresswoman Fudge's
district, 1,416 businesses employing 9,320 people. This is big.
This is important. This is good news for the arts. And it is
the kind of news that the United States Conference of Mayors
thought was so important that they, when they came forward with
their 10-point plan for a better America to the current
administration, they included the arts as one of the 10 points.
Another thing that is very important for this committee,
arts education. Arts education is at the core of creating those
audiences and helping to create the actual artists themselves.
And the Conference Board recently, the organization that all of
business goes to for its information, came forward with a study
that said that the businesses in the 21st Century, number one
thing they want is creativity, creative 21st Century workers.
But what was even more interesting is that they thought that,
along with the superintendents of schools and other leaders in
education, that the top of the list for creating creativity was
having arts education in the schools. This is from the business
community, not from Americans For the Arts. And I think that is
very significant.
If I turn to the not-for-profit community, 100,000 of those
686,000 businesses are not-for-profit businesses. Museums,
theaters and dance companies in every corner of the country, in
every one of your districts, 5.7 million jobs come out either
directly or indirectly out of that nonprofit business. You
heard Congresswoman Slaughter mention it as a $166 billion
economic impact, returning $29 billion to Federal, State and
local tax coffers.
One thing that I thought you here in this committee should
realize is that that growth industry largely was helped in 1965
when you launched the current infrastructure of support in the
arts in America today, the National Endowment for the Arts
coming out of this committee, the State structure or State arts
agencies and the local arts agencies across the country. The
infrastructure of support as we know it today. What I think is
exciting there is that there is proof with those figures that
the arts mean business, big business in this country.
Now for some tough news, 10,000 of those organizations are
at risk in America; 10 percent of those organizations are at
risk of going out of business entirely; 260,000 jobs would be
lost if that were the case. The other 90 percent are having
trouble as well, and there is a job loss there as well, but
those figures get even bigger, bigger than we would want to
actually look at as a loss in this country.
You have heard already that artists are unemployed
currently at twice the rate of other professionals, the
National Endowment for the Arts. Where does the money for the
arts come from in America? We have talked about a number of
things here. But it is basically pretty simple. Those 100,000
nonprofit organizations get their money from three sources.
Half their money comes from earned income. That means the
ticket buyer, the person who attends an event is, important.
And disposable income is down. So that is being hurt. Forty
percent comes from the private sector, donations, corporate
individual foundation. With portfolios down, that money is
hurt. The last 10 percent comes from government, most of it
from local government and then State government and a tiny
piece from the Federal Government. But that Federal Government
piece has been the part that has leveraged all the rest over
the last half century. So I think that it is important to
understand that dynamic and then look at all of--I am not going
to read the list of hundreds of organizations that I have here
that are actually going out of business across the country or
at risk, but I will submit that as part of the testimony.
Chairman Miller. Thank you.
Mr. Lynch. What I want to say is, there is hope on the
horizon. And you have given the hope. The omnibus bill, $10
million more for the National Endowment for the Arts; the
economic recovery bill, $50 million more going out through that
mechanism across the country. That hope is important. And what
it says to me is that the arts are important; arts jobs and
arts and economic impact are important and bigger than most
people realize. The arts in America are at risk. And I ask the
committee to help others understand that the arts are not part
of the problem but part of the solution to America's problems.
Thank you.
[The statement of Mr. Lynch follows:]
Prepared Statement of Robert L. Lynch, President & CEO,
Americans for the Arts
Americans for the Arts is pleased to submit written testimony to
the House Education & Labor Committee supporting the arts and cultural
workforce. I am grateful to Chairman George Miller and Ranking Member
Buck McKeon for providing Americans for the Arts the opportunity to
testify today.
Before I begin with my statement today, I would like to
congratulate Chairman Miller on the House passage of the GIVE Act last
week. National service programs, when partnered with local arts
organizations and art-related projects have a proven record of filling
un-met needs. Together, national service and the arts create a powerful
force, demonstrating the ability for Americans to take initiative, tap
into their creative forces, and work together to address a broad array
of community needs in our country. The GIVE Act legislation included a
provision strengthening arts activities through national service--so
thank you for that support Mr. Chairman.
Arts at Risk Today
Americans for the Arts estimates that 10,000 of the nation's
nonprofit arts and culture organizations are at risk of closing their
doors in 2009, a loss of as many as 260,000 jobs.
Last week, the Wall Street Journal ran an important article on this
topic, ``Arts Groups Lose Out in Fight for Funds,'' (3/18/09) which
described the challenges that arts organizations are facing in this
current economy:
``Some cultural institutions have already folded. The Baltimore
Opera's board voted to liquidate the organization last week. Brandeis
University officials are mired in controversy over a decision to sell
parts of its Rose Art Museum collection. In January, the Minnesota
Museum of American Art in St. Paul, which had existed in various forms
since 1927, closed indefinitely. The Milwaukee Shakespeare theater
company shuttered in October, after its main funder, a local
foundation, dropped support.
``Many arts organizations are tightening their belts. In New York,
where Wall Street banks have collapsed, the Metropolitan Museum of Art
just cut 74 positions and warned it could slash another 10% of its work
force by July. In Detroit, where General Motors Corp. and Chrysler LLC
are on the verge of bankruptcy, the Detroit Institute of Arts reduced
20% of its staff as part of a $6 million budget cut, and the Detroit
Opera canceled a spring production.''
Two paragraphs in just one news story, the likes of which is
running every day somewhere in America. Arts organizations, however,
are not fading passively. While reducing staff and length of seasons,
they are also providing more ``pay what you can'' opportunities.
In Maryland, arts organizations are providing free admission to
laid-off and furloughed state workers. In New Jersey, the opera is
using vacant space at a retirement home for rehearsals and allowing
residents to watch. In St. Louis, arts organizations are moving in to
shopping malls to keep the property full of energy and help keep local
merchants in business. Even in down economic times, arts organizations
are working to strengthen their communities.
A monthly tracking survey of major performing arts centers
conducted by AMS Planning & Research Corp of Fairfield, CT shows that a
sample of major performing arts centers went from only 16% being behind
on meeting their foundation contribution target in November 2008 to 58%
of the centers falling behind in February 2009. The same drop was found
in corporate support, 38% of the centers were behind in corporate
support in November, and now 60% of these institutions are behind in
corporate donations.
The most recent federal statistics are from the National Endowment
for the Arts (NEA) itself. In report released earlier this month, the
NEA found that artists are unemployed at twice the rate of professional
workers--6% vs. 3% for all professionals. The U.S. Census data shows
that unemployment rates for artists have risen more rapidly than for
U.S. workers as a whole.
Downward Pressure on Business Support to the Arts
In an effort to achieve more measurable results from their
philanthropy, more businesses are reducing their charitable focus to a
single funding category, such as health or education. This single-focus
giving rarely focuses on the arts.
The arts have been steadily losing market share of total business
support, according to longitudinal research conducted by the Conference
Board. While much of this can be attributed to a huge increase of in-
kind contributions of medications by drug companies, further analysis
still demonstrates that the arts' ``piece of the pie'' is getting
smaller.
The Economic Recovery Bill
Last month, with the passage of the American Recovery and
Reinvestment Act, a special $50 million was directed to the National
Endowment for the Arts to preserve and recover jobs in the arts.
Thanks, to Congressional Arts Caucus Co-Chair Louise Slaughter and
several others, the arts workforce has been thrown a much needed
lifeline. It is hard for me to put into the proper context how grateful
the creative community is that our sometimes overlooked contribution to
the nation's workforce was recognized by the new Administration and
Congress.
The NEA, more so than many federal agencies, has the infrastructure
and dexterity to expedite relief to workers immediately, in accordance
with the Obama Administration's wishes that that these expenditures are
of a quick and stimulative nature. And these are real jobs--jobs that
cannot be outsourced. Creating the ability to extend production seasons
means the employment of not just performers but of the entire apparatus
that it takes to execute high quality performances. These jobs are
created in the United States and stay in the United States. By keeping
those artists, artisans, production crews, educational programs, and
local businesses working, you are relieving the burden on local
governments as tax revenue keeps coming to the public coffers and eases
pressure on the social safety net. This, of course, is like any other
industry. NEA funding is directly related to that effort.
Economic Impact and Reach of the Arts
In my travels across the country, business and government leaders
often talk to me about the challenges of funding the arts and other
community needs amid shrinking resources. They worry about jobs and the
economic performance of their community. How well are they competing in
the high-stakes race to attract new businesses? Is their region a
magnet for a skilled and creative workforce? I am continually impressed
by the commitment to doing what is best for their constituents and to
improving quality of life for all. The findings from our 2007 study,
Arts & Economic Prosperity III, send a clear and welcome message:
leaders who care about community and economic development can feel good
about choosing to invest in the arts.
Some of the members of our panel will speak about what most of us
share as the intrinsic benefits of the arts. Especially in these
uncertain times, the arts have the power to inspire, create outlets for
untapped creativity and expression, and engage in a shared civic
discourse. I also realize that, for some policy makers, the human
enrichment factor of the arts is not always enough to motivate spending
taxpayers' money on the arts. To that point, I would add that, the arts
mean business.
Arts & Economic Prosperity Study
Our 2007 economic impact study reveals that America's nonprofit
arts industry generates $166.2 billion in economic activity annually--
supporting 5.7 million full-time equivalent jobs, $104 billion in
household income, and actually generating $29.6 billion of tax revenue
back to federal, state, and local governments combined. Between 2000
and 2005, these figures represented a 24 percent increase in economic
activity and growth of 850,000 jobs.
The numbers are irrefutable; arts and culture mean business.
Federal funding of arts and culture represents up to a 9 to 1 return on
investment. $1.4 billion in total funding returns $12.6 billion to the
federal coffers.
No niche industry, the nonprofit arts and culture industry make up
1.01% of the U.S. workforce. This may seem like a small percentage
until you realize that it exceeds those working in the legal and
accounting professions, or police and firefighting, for example.
Elementary school teachers at 1.14% are one of the few sectors that
surpass this number in terms of jobs supported by any sector.
The Arts & Economic Prosperity study has more good news for
business leaders. Arts organizations--businesses in their own right--
leverage additional event-related spending by their audiences that pump
vital revenue into restaurants, hotels, retail stores, and other local
businesses. When patrons attend a performing arts event, for example,
they may park their car in a toll garage, purchase dinner at a
restaurant, and eat dessert after the show. Valuable commerce is
generated for local merchants. Our interviews of 95,000 patrons across
all 50 states show that the typical attendee spends $27.79 per person,
per event, in addition to the cost of admission. This is a great
benefit from the $50 million in economic recovery funding as well,
since that spending will generate the same event-related spending.
When a community attracts cultural tourists, it harnesses even
greater economic rewards. 39 percent of all arts attendance is by
individuals who have traveled at least one county away to attend the
event. Nonlocal audiences spend twice as much as their local
counterparts ($40.19 vs. $19.53). Arts and culture are magnets for
tourists, and tourism research repeatedly shows that cultural travelers
stay longer and spend more. Whether serving the local community or out-
of-town visitors, a vibrant arts and culture industry helps local
businesses thrive.
Among the 160 communities and regions that we studied, a number of
them are located in the districts of members of this committee and have
been provided to you in your packets.
For example, I offer the following:
Wilmington, Delaware, arts and culture organizations
generate 1,372 Full-Time Equivalent Jobs (FTEs); $35.7 million in
household income; $985,000 in taxes for local government; $20.5 million
in event-related spending averaging $20.52 dollars per attendee
excluding the price of admission.
Greater Harrisburg, Pennsylvania, arts and culture
organizations generate 2,123 FTEs; $40.1 million in household income;
$2.9 million in taxes for local government; $27.7 million in event-
related spending averaging $31.65 dollars per attendee excluding the
price of admission.
Creative Industries: Business & Employment in the Arts
The good news about the economic benefits of the arts is that they
extend beyond just nonprofit organizations. Provided for the committee,
are maps that deliver a statistical mapping report of the size and
scope of arts businesses in your Congressional District. Americans for
the Arts defines the creative industries as both for-profit and
nonprofit businesses involved in the creation or distribution of the
arts. They are businesses that we participate in for enjoyment (such as
seeing a movie, attending a concert, or reading a novel); engage in for
business (architecture, design, and musical instrument manufacturing
companies); and invest in to enrich community livability (such as
museums, public art, performing arts centers).
We use as our data source, Dun & Bradstreet's national database of
14.3 million active businesses and 135.6 million employees in the
United States. Widely acknowledged as the most comprehensive and
trusted source for business profiles and listings, Dun & Bradstreet is
recognized by both global industry associations and the U.S. Federal
Government.
As of January 2009, our analysis reveals that 686,076 arts
businesses exist across the nation and employ 2.8 million individuals.
The Creative Industries report demonstrates that arts-centric
businesses are contributing significantly to local economies across the
country--representing 4.2 percent of all businesses and 2.04 percent of
all jobs in the United States.
California Congressional District 7 is home to 1,292 arts-
related businesses that employ 3,983 people.
California Congressional District 25 is home to 1,693
arts-related businesses that employ 5,636 people.
New York Congressional District 4 is home to 1,605 arts-
related businesses that employ 6,259 people.
Pennsylvania Congressional District 19 is home to 1,188
arts-related businesses that employ 6,201 people.
Cities that want the competitive economic edge, use these data to
measure their creative industries. With more than 686,000 arts-centric
businesses employing nearly 3 million people, arts education is a
critical tool in fueling the creative industries of the future with
arts-trained workers as well as new arts consumers. We know from
published research studies that early learning in the arts nurtures the
types of skills and brain development that are important for
individuals working in the new economy of ideas. We also know that
there is a strong correlation between participation and learning in the
arts as a child and attendance of cultural activities as an adult.
Conclusion
The arts community continues to gather research on the status of
the field. I thank the committee for this opportunity to join you today
and look forward to further working with you to preserve and bolster
this important creative workforce, to generate economic development
opportunities for our communities and to continue providing our country
a great source of arts and cultural support.
______
Chairman Miller. Thank you.
Mr. Spring.
STATEMENT OF MICHAEL SPRING, DIRECTOR, MIAMI-DADE COUNTY
DEPARTMENT OF CULTURAL AFFAIRS
Mr. Spring. Thank you for this opportunity to talk about
the economic and employment impact of the arts from a local
perspective.
For the past 27 years, our Miami-Dade County Department of
Cultural Affairs has been at the center of one of our Nation's
most dynamic, diverse, and rapidly growing arts communities. In
1982, there were a little more than 100 nonprofit arts
organizations in Miami. Today there are more than 1,000 arts
businesses.
I want to begin with a short story about just one of these
arts organizations, Miami City Ballet. Each season, this 23-
year-old company employs hundreds of people, not just the more
than 50 dancers who have established the ballet as one of our
Nation's great dance companies but also company administrators,
accountants, carpenters, stage hands, seamstresses, teachers
and physical therapists. Two months ago, Miami City Ballet made
its triumphal appearance at City Center in New York City. The
Times raved about the appearance saying, ``this is as good an
advertisement for its home city as any ballet company in
America.''
Less than 2 weeks later, back in Miami, the ballet
announced that, due to the worsening economy, it was laying off
dancers and reducing its budget by more than 25 percent for
next year. There are more layoffs likely to come. Now I could
have told this story from a human-interest perspective in a
shameless attempt to pull on your heart strings. But that is
not the point of my testimony today.
Instead, this story points out that our cultural sector is
a major player in promoting Miami's new image for business and
tourism. And it underscores the fact that arts organizations
are subject to the very same forces affecting America's and the
world's economic viability, job loss, and downsizing.
So what did you really expect from a guy from Miami?
Perhaps testimony about the economy's impact on South Beach
hotels and on our ocean-view condo market. Instead, you got a
story about the ballet and jobs. Well, Miami-Dade County is an
endlessly surprising place, even for those of us who grew up
there. Our county government is investing more than $1 billion
in cultural infrastructure that is being matched multifold by
businesses and individuals. Our Department of Cultural Affairs
is one of the largest, in terms of budget size, in the United
States.
Why is Miami-Dade County investing so aggressively in the
arts? Well, the answer is really simple. Our local elected
officials, our business leaders and the public understand that
a community's culture is the cornerstone of its economic
vitality. We have the facts to support this. Our recent report
on the arts and the local economy documented a $922 million
impact by our arts and cultural industry each year. Our
nonprofit cultural organizations employ more than 23,000
workers. The more than 12 million people who attend cultural
events each year spend more than a half a billion dollars
beyond just buying a ticket to performances. They park their
cars in garages. They spend their money in restaurants, hotels
and shops before and after being energized by great theater,
dance, and exhibition.
These days, rhetoric in Miami that attempts to stereotype
the arts as a frill is drowned out quickly. There is
overwhelming evidence all around us that cultural facilities
and nonprofit arts organizations are employing people, making
our community better, improving kids' lives and playing a
catalytic role in neighborhood and business redevelopment.
Now, I know the people who work in our cultural industry.
They are passionate about what they do, and they have to be, or
they wouldn't be in this business. The average cultural worker
in our community makes about $28,000 a year. That is
approximately 30 percent less than the community's overall
average salary. And like many other American workers, our arts
employees work more than one job to make ends meet.
Now, my mayor and the 13 members of our county commission
see this phenomenal commitment every day. The budget for our
Department of Cultural Affairs has more than quadrupled over
the past decade. Even my exceedingly loyal staff of public
servants knows that this is not just attributable to my charm
and good looks. It is a recognition by our local elected
leaders that the arts are a great investment for our community.
The signal that our county is sending to our cultural workforce
and to the business and individuals who support the arts is
powerful. It is akin to the signal that this Congress recently
sent across our Nation when $50 million was approved for the
NEA as part of the American Recovery and Reinvestment Act. It
says that you understand that, like other industries, jobs in
the cultural sector are being lost and jeopardized. It says to
us that artists and cultural businesses are part of the
solution for restarting our economy and rekindling the
creativity and the character that continue to make America
great.
I urge you to reinvest even more significant resources in
the arts to help achieve America's economic and human recovery
and revival. Thank you very much.
[The statement of Mr. Spring follows:]
Prepared Statement of Michael Spring, Director, Miami-Dade County
Department of Cultural Affairs
My name is Michael Spring and I serve as Director of the Miami-Dade
County Department of Cultural Affairs. I am responsible for supervision
of a public arts agency in Miami, Florida with an annual budget of more
than $26 million and a staff of 35. Thank you for this opportunity to
talk about the economic and employment impact of the arts from a local
perspective.
For the past twenty-seven years, our Miami-Dade County Department
of Cultural Affairs has been at the epicenter of one of our nation's
most dynamic, diverse and rapidly growing arts communities. In 1982,
there were a little more than one hundred non-profit arts organizations
in our County; today, there are more than one thousand arts businesses.
This growth has occurred at every level--from grassroots,
neighborhood groups energized by our tremendous diversity to major
cultural institutions like the New World Symphony and the Miami Art
Museum. We have been enriched by the waves of immigration that have
brought new artists and arts supporters to our community and by the
evolution of our County from a vacation and retirement spot to a major
international center for commerce and tourism. Recognition of Miami's
cultural stature has been accelerated by the accomplishments of our
artists across the world and by recent phenomena like Art Basel Miami
Beach, where thousands of arts travelers and members of the
international press arrive in our community every December for the
country's most exciting visual arts fair.
A one thousand percent growth rate is phenomenal for any sector of
our economy. Our first generation arts enterprises are producing new
work with a distinctive Miami ``voice'' and are helping to create a
bold new city. Our community's goal for investing in the arts is not
modest; it is nothing less than establishing our place prominently in
the global entertainment and economic marketplace.
I want to offer a short story about just one of our many
outstanding arts organizations--Miami City Ballet. Each season, this
23-year old company employs hundreds of people--not just the more than
fifty full-time dancers who have established Miami City Ballet as one
of the nation's great dance companies, but also company administrators,
accountants, carpenters, stagehands, seamstresses, teachers and
physical therapists. Two months ago, Miami City Ballet made its
triumphal appearance at City Center in New York City. The New York
Times raved about the performances saying, ``this is as good an
advertisement for its home city as any ballet company in America.''
Less than two weeks later, back in Miami, the Ballet announced that due
to the worsening economy, it was laying off 8 dancers and reducing its
budget next season by more than 25%. There are more layoffs likely to
come.
I could have told this story from a ``human interest'' perspective
of dancers who have trained a lifetime and have mortgages and car
payments to make. Or I could have talked about the legendary Edward
Villella, the company's artistic director, who has put his heart and
soul into building this company. This would have been a shameless
attempt to pull on your heartstrings; but that is not the point of my
testimony today. Instead, this story points out that our cultural
sector is a major player in promoting Miami's new image for business
and tourism. It also demonstrates that the non-profit arts industry, as
an employer, is an integral part of our local economy. And it
underscores the fact that arts organizations are subject to the very
same forces affecting America's and the world's economic viability. The
results--job loss and downsizing--are jeopardizing our ability to
employ people and sustain this cultural segment of the economy.
Miami-Dade County is an endlessly surprising place, even for those
of us who grew up there. It amazes visitors and even some residents
that we are building one of the newest, major cultural centers in the
world.
Our County government is investing more than one billion dollars in
cultural infrastructure that is being matched multifold by businesses
and individuals. Our Department of Cultural Affairs is one of the
largest in terms of budget in the nation. Recently, we opened a major
new, $481 million performing arts center in downtown Miami. We are
upgrading and building dozens of neighborhood cultural facilities. And
just four years ago, the voters of our community passed a referendum by
a two to one margin to approve more than $450 million in general
obligation bonds for cultural facilities building projects--including
new downtown, bayfront art and science museums.
Why is Miami-Dade County investing so aggressively in the arts? The
answer is very simple: our local elected officials, our business
leaders and the public understand that a community's culture is a
cornerstone of its economic vitality.
We have the facts to support this. Our recent report on the arts
and the local economy documented a $922 million impact by Miami-Dade
County's arts and cultural industry each year. Our non-profit cultural
organizations employ almost 23,000 workers. The more than 12 million
attendees to cultural events each year spend more than a half a billion
dollars beyond buying tickets to performances. They park their cars in
garages and spend their money in restaurants, hotels and shops before
and after being energized by theater, dance and art exhibitions. Our
neighborhood businesses rely on the ``traffic'' created by our non-stop
calendar of arts activities.
There is another powerful economic effect of the arts in our
community. Cultural facilities and their performances and exhibitions
are revitalizing our neighborhoods. Our Mayor and County Commission
have seen the transformative effect of the arts on some of the most
abandoned and neglected parts of our community. Miami-Dade is a living
laboratory demonstrating how pioneering arts groups and artists have
helped to transform places like Lincoln Road, South Beach and Little
Havana from once forbidding to now thriving and safe neighborhoods. In
fact, we designated our new performing arts center as the catalytic
project for the tax increment district in the north part of downtown
Miami. The Center's effect on revitalizing this area has far exceeded
even the most optimistic projections. Tax increment funds have grown
ten times as much as expected. What was a part of downtown that people
avoided is being transformed into a vibrant entertainment, education
and business district.
These days in Miami, attempts at rhetoric that stereotype the arts
as a ``frill'' are drowned out quickly. There is overwhelming evidence
all around us that cultural facilities and non-profit arts
organizations are employing people, making our community better,
improving kids' lives and playing a catalytic role in neighborhood and
business redevelopment.
In fact, the John S. and James L. Knight Foundation affirmed the
power of the arts last year when they announced the investment of $40
million of the foundation's funds in our community through the Knight
Arts Challenge. In considering the most promising way to continue to
transform Miami into one of the great 21st century cities, the Knight
Foundation selected the arts as its one strategic area for this
significant infusion of private funds.
Our burgeoning cultural life also is a strategic element of
promoting Miami as a tourism destination. Our Greater Miami Convention
& Visitors Bureau gets it. They understand that a community's cultural
assets give it a competitive edge in attracting tourists and
conferences. When we vie with the Caribbean for vacationers, submit our
successful bids to host Super Bowls or compete for major conventions,
we sell our destination as the ``sophisticated tropics''--featuring
fabulous beaches, great shopping and cuisine, America's preeminent
cruise ship port and an art scene that entertains 24/7.
What do our business leaders think about the arts? Our local
economic development agency, the Beacon Council, did a survey of Miami
businesses last year. They found that more than 75% of our local
businesses consider having vibrant cultural activities as important or
very important to their companies. Almost 80% support the arts through
employee participation on boards or as volunteers with cultural
organizations.
In a survey of citizens undertaken by Miami-Dade County last
October, 60% of our residents were very satisfied or satisfied with the
quality of the cultural offerings in our community. This was up by more
than 10% from the 2005 survey results. This is remarkable given the
youthfulness of our cultural life and the newness of most of the
population of our County. The vast majority of Miami-Dade's cultural
organizations are less than a generation old; most of the residents of
our community were not born here. In spite of the youth of our cultural
community and its audiences--and the fact that in Miami, traditions of
arts-going have not yet had generations to take hold--our citizens are
increasingly recognizing the quality and diversity of our arts
activities.
Even today, at a moment when disposable income for our citizens is
at a premium, attendance by Miamians at concerts, museums, plays and
dance performances is reported as ``up'' this season. People are
expressing their priorities by what they are willing to purchase as
their buying power diminishes. Admittedly, ticket sales do not make up
for the significant downturn in contributions by individuals and
businesses but our enthusiastic audiences are demonstrating that people
value the arts as an integral part of their lives.
For our young city, the job of reaching the children of our
community is critically important. Like other local arts agencies
across America, our Department focuses resources on making the arts
affordable and accessible for families and kids. Cultural activities
supported by our Department serve more than 2 million children
annually. Our Department directly reaches thousands of kids each year
with a scholarship program to make summer arts and sciences camps
available to those who might otherwise not have the means or
opportunity to go. In addition, through our Culture Shock Miami
program, high school and college students, ages 13-22, can buy tickets
for only $5 to almost any arts event in town. Thousands of students are
online buying these tickets to the arts and discovering the wonder of
live performances and learning about the richness of our diverse
cultures. In our day care centers, in our schools and on standardized
tests, we are seeing a direct correlation between a child's involvement
in the arts and success in the classroom. The arts are an essential
part of preparing students to excel in an increasingly complex,
competitive and sophisticated job marketplace.
I know the people in our cultural workforce. They are passionate
about what they do. They have to be or they would not be in our
business. The average cultural worker in Miami-Dade County makes about
$28,000 a year--that's approximately 30% less than our community's
overall average salary. Like other American workers, many arts
employees work more than one job to make ends meet. Most artists and
arts administrators work without the kinds of benefits that are offered
to their peers employed by the for-profit sector or even government.
And they are committed beyond reason to making sure that only the best
quality product reaches our stages and gallery walls. They believe
deeply that the arts can change lives and put this into action by
producing programs for school kids even when money is scarce to do
this.
Miami-Dade County Mayor Carlos Alvarez and the thirteen members of
our County Commission see this kind of phenomenal commitment every day.
The budget for our Department of Cultural Affairs has more than
quadrupled over the last decade. This is an explicit recognition by our
elected leaders that the arts are a great investment for our community.
Last year, due to the enactment of statewide property reform measures,
our County government had to reduce its budget by more than $200
million. Now that's a lot of money where I come from. I am proud to
report that the budget for our Department of Cultural Affairs was not
reduced.
The signal that our County is sending to our cultural workforce and
to the businesses and individuals who support the arts is powerful. It
is akin to the signal that this Congress recently sent across our
nation when $50 million was approved as a part of the American Recovery
and Reinvestment Act. It says to me and the thousands of people who
support and work in the arts in my town that you recognize the
contributions that we are making every day to the economy. It says that
you realize that non-profit cultural groups employ people in our cities
who work hard, day and night, weekdays and weekends, to make a better
life for our families and kids. It says that you understand that like
other industries, jobs in the cultural sector are being lost and
jeopardized. It says that progressive governments understand the
amazing return on investment that adequate support for the arts
produces--for our cities and for our people. It says to us that artists
and cultural businesses are part of the solution for restarting our
economy and rekindling the creativity and character that continue to
make America great.
I thank you for your support of the arts and urge you to reinvest
even more significant resources as a strategic and productive way to
help achieve America's economic and human recovery and renewal.
I am proud offer this testimony along with our nation's leading
non-profit organization for advancing the arts in our country,
Americans for the Arts, where I serve as a board member. Together, we
attest to the vitality of the arts across our country and to the
essential role of local arts agencies, artists and arts organizations
in cities and towns throughout America. We also affirm the remarkable
returns being realized by progressive governments in setting policies
and investing support in the work of non-profit arts organizations and
artists.
For an online copy of ``The Impact of the Arts in Miami-Dade
County'' study please go to www.miamidadearts.org/Documents/
Publications/2008%20Arts%20Economic%20Impact%20Study.pdf
For more information about the Miami-Dade County Department of
Cultural Affairs, please go to www.miamidadearts.org.
To see the Miami-Dade County Department of Cultural Affairs'
discount ticket program for high school and college students, Culture
Shock Miami, please go to www.cultureshockmiami.com.
For information about the thousands of intrepid local arts agencies
throughout our nation making America's communities more vibrant and
economically successful, please go to www.americansforthearts.org.
______
Chairman Miller. Thank you.
Mr. Bahr.
STATEMENT OF MICHAEL BAHR, EDUCATION DIRECTOR, UTAH
SHAKESPEAREAN FESTIVAL
Mr. Bahr. Chairman Miller, members of the committee, I am
Michael Bahr, the education director for the Utah Shakespearean
Festival, and I am grateful for this opportunity to share the
impact the festival has on its community and the challenges
that are affecting not only us but our sister organizations
across the country.
The festival has played a large role in defining the rural
town in which we live, and therefore, the present status of the
economy threatens not only the arts and industry but Cedar
City, Utah, itself.
Let me share a little bit about the festival. The Utah
Shakespearean Festival, now in its 48th year, is a destination
theater that produces Shakespeare and other classic plays in
repertory, and is located in rural Iron County in Cedar City,
Utah, a town of 28,000 people. The festival produces nine plays
in repertory for 130,000 attendees a year.
The average patron travels over 200 miles one-way to
attend, with primary audiences coming from Utah, Nevada,
Arizona, and Idaho. These patrons generate from $30 million to
$35 million for the local economy through lodging, dining,
shopping, fuel, and recreation. The festival's budget for 2008
was $6.7 million. Our funding is approximately 75 percent
earned income, that is ticket sales, concession, and
merchandise; and 25 percent unearned income, that is grants,
foundations, and gifts.
I would encourage you to read the minutes we have before
you about our lovely history. Let me get to the good stuff, or
shall I say the bad stuff.
Sales for our 2009 season are currently nearly 20 percent
behind where we were last year. Foundations have already
significantly reduced their gifts because of shrinking or
nonexistent portfolios. Consequently, our budget, which was
$6.7 million for the 2009 year, is now $5.9 million. At $5.9
million, we have cut about $800,000 in total cost, but in
reality, the cuts are much deeper. These cuts include the
following: three full-time positions from a 28-member staff to
25, but what really hurts is 55 seasonal positions. We have a
staff of 390 total employees which is now down to 335. Those
are actors, electricians, costumers, carpenters, company
managers, et cetera, because for every one actor, there are
seven people that support those one actors. All live musicians
for the present season have been cut. One-week reduction in the
summer season, one-week reduction in the fall season, and a
two-week reduction in rehearsal times. Our fall season, which
includes Pericles, a very large wonderful Shakespeare play, has
now been reduced to Tuesdays with Morrie and the Complete Works
of William Shakespeare, and Women in Black, all two- and three-
person shows.
Our theater, like other businesses, is required to pay
unemployment. When an employee does not find a job after his
work is finished with us, he goes to another part of the
country. And when unemployment is found, we have to pay that
unemployment. In an average year, we have paid approximately
$60,000 to $70,000 annually in unemployment fees. Last year we
saw that double to $130,000, and just in the month of February
alone, we have paid $14,000 in unemployment for actors outside
of our area after they have left our area.
Cedar City merchants and civic leaders have already
expressed great concerns about these cuts. We think it is clear
that by cutting 2 weeks from our season, cutting the size of
our shows and the amount of material we buy to produce them, by
cutting the number of employees we hire, the economic benefit
to our community will decrease measurably.
Cedar City benefits economically from the many visitors who
travel to the festival each year. Various economic impact
studies have been done. In 2002, the International Festival and
Dance Association estimated the economic impact from the
festival on our community was $64 million, and Americans for
the Arts, in 2007, found that the nonprofit arts were $22.47
million. We see that and in talking with our Chamber of
Commerce as about $30 million to $35 million. In addition to
serving our own county, the festival, through its education
department, has a strong relationship with educational
entities.
We are part of the National Endowment for the Arts
Shakespeare for a New Generation and serve 70 schools and
30,000 students annually. They have also contacted us and are
worried about cuts happening within this area.
Perhaps the most revealing story of the impact of the
festival on Cedar City is the building of a new theater during
the 1980s recession. And I think this is relevant now. For many
years, Cedar City's economy had been bolstered by active iron
mines around the town. As the bottom fell out of the iron
market during the 1980s, the mines were closed and jobs were
lost. But the festival was still running at 98 percent in
attendance. And so the city fathers and the festival said,
let's throw our money into this. And with help from Housing and
Urban Development, we had $2.3 million that we invested in a
$7.5 million new theater. Within 5 years, we recouped all of
that cost through increases in sales and property taxes alone
within our area.
Art in Cedar City is not luxury. It is business. It feeds
our souls and our families. It hires an educated and talented
workforce. It provides positive economic impact far beyond the
theater. Around 1590, a farm boy from the country whose father
dealt in sheep and gloves travelled to the big city of London
and started writing plays. His plays became successful. He
bought interest in his theater. He was a businessman, and it
was good business.
He said, ``The man that hath no music in himself, nor is
not moved with concord of sweet sounds, is fit for treason,
strategems and spoils * * * let no such man be trusted. Mark
the music.''
May we preserve and mark the music, art, theater and dance
that moves us and keeps us all human.
Thank you.
[The statement of Mr. Bahr follows:]
Prepared Statement of Michael Bahr, Education Director,
Utah Shakespearean Festival
Chairman Miller, Members of the Committee, I am Michael Bahr, the
education director for the Utah Shakespearean Festival, and I am
grateful for this opportunity to share with the Committee on Education
and Labor the impact the Festival has on its community and the
challenges that are affecting not only us but also our sister
organizations across the country. The Festival has played a large role
in defining the rural town in which we live; therefore, the present
status of the economy threatens not only the arts and our industry, but
consequently the community I live in.
Background
Let me share some background about our organization so you can
understand our present challenges: The Utah Shakespearean Festival, now
in its forty-eighth season, is a destination theatre that produces
Shakespeare and other classic plays in repertory. It is located in
rural Iron County and is hosted on the campus of Southern Utah
University in Cedar City, Utah, a city of 28,000 people. The Festival
produces nine plays in repertory for 130,000 attendees a year. The
average patron travels over 200 miles one-way to attend, with the
primary audience coming from Utah, Nevada, Arizona, and Idaho. These
patrons generate 30 to 35 million dollars for the local economy through
lodging, dining, shopping, fuel, and recreation. The Festival's budget
for 2008 was $6.7 million dollars. Our funding is approximately 75
percent earned income (ticket sales, concessions, and merchandise) and
25 percent unearned income (grants, foundations, and other gifts).
History
In 1962, Fred C. Adams, the Festival's founder, was a college
theatre professor in Cedar City who had a dream of creating a
Shakespearean festival in the heart of the red rocks of southern Utah.
With $1,000 donated from the local Lion's Club, Adams started his first
season. The first season ran for two weeks and yielded $3,000 in ticket
sales. This left Adams with a budget of $2,000 for his second season.
The Festival grew in size and scope with professional actors,
designers, artisans and directors joining the company. The community
also rallied around and caught the vision. Today, the Festival performs
nine plays in three theatres from late June to late October.
The Festival has received numerous accolades and national praise,
including the prestigious Tony Award in the year 2000 for Outstanding
Regional Theatre, the 2001 National Governors Association Award, and
the Utah Best of State Award in 2003.
Economic Challenges Result in Cuts
Now, nearly 50 years later, sales for our 2009 season are currently
nearly 20 percent behind where we were last year. And some foundations
have already significantly reduced their gifts because of shrinking or
non-existent portfolios. Based on what we are projecting for 2009, and
our steadily increasing costs, we cut deeply our 2009 budget. When the
cuts were finished we had dropped from a budget of 6.7 million to 5.9
million. These cuts are even deeper than they appear because of the
many fixed cost that could not be reduced. While it appeared to be a
cut of $800,000, in reality it was much deeper. These cuts included the
following:
Three full-time positions (from 28 to 25)
55 seasonal positions, including actors, electricians,
costumers, carpenters, company managers, etc. (from 390 to 335; for
every one actor it takes seven employees to support them)
All live musicians (requiring recorded music instead)
A one-week reduction in the summer season
A one-week reduction in the fall season
A two-week reduction in rehearsal time
The replacement of two fall play titles, Pump Boys and
Dinettes and Pericles with the much smaller and less expensive Tuesdays
with Morrie and The Complete Works of William Shakespeare (abridged)
The closing of two buildings
The elimination of cell phones (except for three
positions)
The establishment of a shared housing policy for company
members
The elimination of vocal coach and dramaturgy positions in
the fall season
Shorter ticket office hours
Reduced travel for recruitment, training, conferences,
etc.
Reduced custodial and building maintenance
In addition, the bad economy has caused some costs to skyrocket:
especially unemployment. Our theatre, like other businesses, is
required to pay unemployment when an employee does not find a job after
his work is finished with us. Thus when another theatre closes or
downsizes in another part of the country, it affects us because the
artists that work for us can't find another job. In the past we have
paid approximately $60,000 to $70,000 annually in unemployment claims.
In 2008 that number doubled to to $130,000. In 2009 we have budgeted
for a similar amount; we can only hope it is enough.
Community Economic Impact, Then and Now
Cedar City merchants and civic leaders have already expressed great
concern about these cuts. We have heard from many who are worried about
the loss of two weeks of revenue from patrons and four weeks of revenue
from Festival seasonal employees. We think it is clear that by cutting
two weeks from our season, by cutting the size of our shows and the
amount of materials we buy to produce them, by cutting the number of
employees we hire, the economic benefit to our community will decrease
measurably.
Cedar City benefits economically from the many visitors who travel
to the Festival each year. Various economic impact studies have
attempted to track this benefit. One study, completed in 2002 by the
International Festival and Events Association estimated that the
economic impact of the Festival was $64,321,873. In 2007, American for
the Arts in The Arts and Economic Prosperity III found that the
nonprofit arts were a $22.47 million industry in Iron County. However,
this study surveyed only the full-time jobs of the nonprofit industry,
leaving out the vast impact of our seasonal employees. We at the
Festival feel that the real number is somewhere between these two. But,
whatever the number, the economic benefits will definitely decrease.
Regional Impact
And the pain may spread. In addition to serving Iron County, the
Festival, through its education department, has a strong relationship
with educational entities across the Intermountain West. Various
programs serve multiple ages and provide professional, educational
outreach. For example, we are honored to be a member of the National
Endowment for the Arts Shakespeare for a New Generation program.
Through this program we are able to reach 30,000 students annually,
from seventy schools in Utah, Nevada, Arizona, and Idaho. Many rural
communities have called, fearful that our outreach programs might be
cut by our budget challenges. We hope not, but the future is uncertain
at best.
A New Theatre Brings Revenue to Town
Perhaps the most revealing story of the impact of the Festival on
Cedar City is the building of a new theatre during the 1980s recession.
For many years, Cedar City's economy had been bolstered by active iron
mines west of town. As the bottom fell out of the iron market, the
mines were closed, jobs were lost, houses were put up for sale, the
economy slumped. At that time, the Festival performed primarily in only
one theatre, the Adams Shakespearean Theatre, which, despite the
recession, was still operating at 98 percent capacity. The Festival and
the city proposed an additional theatre, and in 1987/88, 2.3 million
dollars were obtained from Housing and Urban Development to assist in
building the 7.5 million dollar facility. Mineral lease funds, revenue
that had been generated from the mines, were also used. Within five
years of the opening of the new Randall L. Jones Theatre, Joe Melling,
Cedar City manager, said that the money invested in the building had
been re-couped through an increase in sales and property tax alone.
Art Is Not a Luxury
Art in Cedar City is not a luxury; it is business. It feeds our
souls and our families. It informs and educates our citizens. But it
also fills our dinner plates, pays our mortgages, and enhances our
standard of living. It hires an educated and talented workforce. It
fills our hotels, our restaurants, our shops. It provides positive
economic impact far beyond the theatre.
Around 1590, a farm boy from the country whose father dealt in
sheep and gloves traveled to the big city of London and started writing
plays. He became so successful he bought interest in his own theatre;
hmmm, he was a businessman. And of course it was good business, because
everyone wanted to see the plays, because they were about US. His plays
had a resonance for he knew the common man. He said:
The man that hath no music in himself,
Nor is not moved with concord of sweet sounds,
Is fit for treasons, stratagems and spoils;
The motions of his spirit are dull as night
And his affections dark as Erebus:
Let no such man be trusted. Mark the music.
The Merchant of Venice, Act V,
Scene 1
May we preserve and ``Mark the music,'' art, theatre, and dance
that moves us and keeps us human.
______
Chairman Miller. Thank you very much.
Mr. Daly.
STATEMENT OF TIM DALY, ACTOR AND CO-PRESIDENT, THE CREATIVE
COALITION
Mr. Daly. Thank you, Chairman Miller, members of the
committee.
My name is Tim Daly. I am here as an actor, producer,
director, and co-president of The Creative Coalition, which is
a nonprofit, nonpartisan public advocacy organization of the
arts and entertainment community.
I want to thank you for holding this hearing and for
allowing me to testify and echo a lot of the things that my
fellow testifiers/testifees have said.
I am not sure that enough people understand that millions
of Americans earn their livelihoods through the arts and
ancillary professions or that the entertainment--entertainment
is America's second largest export. Too often we look at the
arts as something extra, something outside of our daily lives,
as a luxury item. And I am here to--I am on a mission to make
people understand that arts are part of our cultural,
educational and economic main course. They are not dessert.
So today I would like to show you how I see things
firsthand as a working actor in the commercial sector. I would
also like to leave you with a couple of thoughts about ways I
think we can ensure that our arts economy remains vibrant.
First, a little background about how arts has impacted my own
family.
After serving in World War II in the Navy for 5 years, my
dad moved to New York where he made his living working on
Broadway and off Broadway in the theater and then later in
television. Decades before I played a doctor on ``Private
Practice'' he was known as Dr. Paul Lochner on a TV series
called ``Medical Center.'' And of course my sister Tyne Daly is
a wonderful and well known actor, and now a third generation is
entering the business, including Tyne's daughter and my own
son; God help them both. My son needs a job, by the way.
So my family accounts for a few of the 45,000 professional
actors that the Bureau of Labor statistics estimates are
working in the United States. But that number does not begin to
capture the real employment impact of the entertainment
industry. For instance, when a studio green lights a movie, the
press is filled with news about the star, but the real story is
the thousands of people that are put to work on that
production. The next time you are in the movies, stay in your
seat and watch the entire credits role to the end, and you will
get an idea about the number of people who worked so hard to
bring that film to the screen. And the economic impact on the
community is enormous.
My show ``Private Practice'' for instance, which is an
hour-long TV drama, it takes us 9 days to shoot an episode. We
employ 200 people full time during that production season. For
two of those 9 days, we have an additional crew of 50 people on
the set and each episode can have between 100 and 300 extras.
But beyond that, in any single 9-day period, the show
spends about $20,000 on food for caterers; $25,000 to $40,000
on clothes and costumes; $15,000 on sets and furniture; and
$2,500 on dry cleaning, which is, I mean, that could keep a dry
cleaners open, one TV show. And yet people seldom make that
connection. But if you add up the numbers and the tax revenue
and the money spent in the community by those employed on the
show, you will quickly see how big the economic impact is.
But I think the story is, there is a lot more to it. I have
been thinking a lot lately about the iPod. A recent study by
researchers at UC Irvine estimate that 14,000 jobs with wages
of $753 million were created in the U.S. as a result of the
iPod in 2006. The innovation, engineering, technology and
manufacturing of this ubiquitous product would not exist
without people's desire to enjoy music in their daily lives.
Without art, there is no iPod. So we have to take those jobs
into account.
Art and entertainment are important engines of our economy,
and we can't take that for granted. We have to invest in it
like we invest in any other sector. And here are a couple of
ways we can do that. First, Federal support for the arts plays
a pivotal role. We are really grateful for the expanded NEA
funding in the stimulus, and we encourage continued and strong
and growing support for the nonprofit arts sector. Investment
is so small when one looks at the returns both to society and
both culturally and economically.
Second, we have got to nurture the next generation by
giving our kids access to art in schools. I know that is
primarily a State responsibility, but the economic consequences
of letting arts in schools atrophy will be felt nationally. In
rough times, arts is usually the first things to go. We need to
give our kids the chance to exercise their imagination so that
they can be the most creative and innovative thinkers that they
can be, whether they wind up as artists, engineers, scientists,
mathematicians, politicians, we need creative thinkers to
compete in the global economy.
And arts train the creative mind. If just one person's
creative spark catches fire, the economic impact can be
enormous. I am thinking of the artistic vision of Shonda
Rhimes, who created both the hit series ``Grey's Anatomy'' and
``Private Practice.'' She is essentially an inventor who
started two successful companies, two television shows. She is
a storyteller. But what she has done is provided good jobs,
pumped millions of dollars into our economy each week. And if a
businesswoman were to open a factory employing thousands of
people, we would hail her entrepreneurial spirit and see how we
could support her with public policy, replicate her success.
And artists can have the same economic impact. Yet we see her
as a creator of stories and not as a creator of jobs. And we
have got to change that misconception.
Yes, arts inspire us. They entertain us. They reflect back
to us our triumphs, our failures. They bring us beauty and joy.
They challenge our beliefs. And at best, they nourish our
souls. But we have also got to recognize that arts employ our
neighbors. They support small businesses, create jobs and
foster innovations. We have got to start discussing arts as
part of our daily lives. And they are part of our culture and
our education and our economic main course.
Thank you for giving me the opportunity to testify. I
really do look forward to answering your questions if you have
them. And I mean that.
[The statement of Mr. Daly follows:]
Prepared Statement of Tim Daly, Actor and Co-President,
the Creative Coalition
Chairman Miller, Ranking Member McKeon and members of the
Committee, my name is Tim Daly, and I am here today as an actor,
producer, director, and as co-president of The Creative Coalition. The
Creative Coalition is the non-profit, non-partisan public advocacy
organization of the arts and entertainment community. Our members are
actors, directors, producers, writers, musicians, dancers, painters and
others who make their living in performing and fine arts. I would like
to thank you for holding this hearing and recognizing the important
role that arts play in our economy.
I don't believe it is commonly known that entertainment is
America's second largest export, and millions of Americans earn their
livelihoods through the arts and in ancillary occupations. Despite that
fact, it seems to me that we too often look at art as something extra,
a luxury item, something that is disconnected from our daily lives and
our economy. It is my mission to make America understand that the arts
are part of our cultural and economic main course; they are not
dessert.
Today, I want to talk with you as a working actor about how I see
the economic impact of the entertainment industry today. I'd like to
follow that discussion with three concrete things we can do to ensure
that America's arts economy remains vibrant in the years ahead.
Let me start with a few words about the impact of the arts on my
own family. After serving for five years in the Navy during World War
II, my father came to New York City and supported our family as an
actor in the theatre, both on and off Broadway, and later, on
television. Decades before I began playing a doctor on Private
Practice, my father starred as Dr. Paul Lochner on the television
series Medical Center. My sister Tyne is a well known actress. And now
a third generation of Dalys, including Tyne's daughter and my son, has
entered the profession. We have been blessed to work in the theatre,
both on and off Broadway, in non-profit regional theatre, in film,
radio, and on television. But the story is larger. My family is
inundated with artists. We make our livings as musicians, writers,
composers, painters, animators, photographers, actors, directors and
performance artist. We owe everything to the arts and to our pursuit of
artistic expression.
According to the federal Bureau of Labor Statistics, I'm one of
roughly 45,000 working professional actors in the U.S., but that number
doesn't begin to capture the employment impact of the entertainment
industry. When an A-list star, like Julia Roberts, agrees to do a
movie, the press is filled with the news about that individual. But the
real economic story is about the thousands of people put to work when
that movie is produced.
Each production--whether a movie, television show or play--takes an
incredible amount of support and behind-the-scenes labor and talent.
Next time you watch a movie, stay in your seat until the credits stop
rolling, and you'll get a sense of the huge number of actors,
craftsmen, editors, technicians and others who work so hard to bring
that film to the screen.
More importantly, take a look at the economic impact that the
entertainment industry can have on a community. For example, my show,
Private Practice. We just finished shooting our second season, and I'd
like to try to give the members of the Committee a sense of the
economics at work on an hour-long network drama. It takes us nine days
to shoot one episode of Private Practice. We employ about 200 people
day in and day out during production season. For two of those nine
days, we have a second crew of 50 people on set, in addition to those
regularly working on the show, and each episode can have 100 to 300
extras.
Look beyond those employed on the show and you'll see the ripples
spread still farther across the economy. In that nine-day period, the
show spends about $20,000 on food from outside caterers. $25,000 to
$40,000 is spent on clothes and costumes, $2,500 on dry cleaning, and
$15,000 on furniture for the sets. Again, those numbers are for a
single episode. Add up the numbers and the sales tax, and the money
spent in the community by those employed on the show, and it quickly
becomes apparent how big the impact on the local economy can be.
Even those numbers, though, don't give us a complete picture of the
jobs created. I think the employment impact needs to be viewed through
a much broader lens. Take a technology like the iPod, for example. Here
is a blockbuster product that exists to deliver entertainment to
individuals. A recent study by researchers at the University of
California, Irvine, estimated that 14,000 jobs were created in the U.S.
as a result of the iPod in 2006, with $753 million in wages generated
as a result. The engineering, innovation, technology and manufacturing
of this ubiquitous product would not exist without people's desire to
have music in their daily lives. Without the art, there would be no
iPod.
In ways large and small, obvious and obscure, art and entertainment
are important engines of our economy. But we cannot take this for
granted. We must take steps to ensure the continued vibrancy of our
arts and entertainment. We have to invest in the future. Here are three
ways we can do that.
First, federal support for the arts continues to play a critical
role. The Creative Coalition strongly supported Congress' decision to
expand funding for the National Endowment for the Arts in the recently
passed stimulus package, and we encourage continued strong support for
the not-for-profit arts sector. The investment is so small when one
looks at the tremendous returns that arts and entertainment pay back to
society both culturally and economically.
In these troubled times, we should look to President Franklin
Roosevelt's example. The New Deal's arts programs created much-needed
jobs and fostered great talents that otherwise may have been lost. The
contributions of those artists to our culture endure, and their
successful careers resulted in employment for many others in the years
that followed.
Second, it's vitally important that we nurture the next generation
by giving our kids access to art in schools. I know this is primarily a
state responsibility, but the economic consequences of letting arts in
schools atrophy will be felt nationally. In tough times, arts education
can be the first thing to go. Again, I think we make a fatal mistake if
we view the arts simply as a luxury. We don't need to promote a career
in the arts, but we do need to give our kids a chance to exercise their
imaginations so that they can be the most creative and innovative
thinkers they can be. We need creative engineers, and mathematicians,
and scientists, and yes, politicians in order to compete in the global
economy. Arts train the creative mind.
Third, it's imperative that we change the discussion about the arts
in our culture. We must acknowledge not only that arts inspire us,
reflect back to us our triumphs and mistakes, bring us beauty and joy,
challenge our beliefs, and enrich our souls, but also that we are
surrounded by the work of artists every day. The arts are interwoven
with engineering, with innovation, with technology, and these creators
are part of our economic and cultural main course.
In conclusion, I'd like to tell you about Shonda Rhimes, a writer
who is the creator of both Grey's Anatomy and Private Practice. It's
amazing to think that all of the economic activity I described
surrounding Private Practice stems from her artistic vision. She is
essentially an inventor who started two successful companies--these two
television shows--that provide good jobs and pump millions of dollars
each week into our economy. If a businesswoman were to open a factory
employing a thousand people, we would hail her entrepreneurial spirit.
In the arts, someone like Shonda Rhimes has the same economic impact.
Yet we often forget that these artists are not only creators of
stories, but also creators of jobs for a broad sector of our society.
I thank the Committee for giving me this opportunity to testify. I
look forward to answering any questions you may have.
______
Chairman Miller. We will take that direction.
Mr. Ridge.
STATEMENT OF BRUCE RIDGE, MUSICIAN AND CHAIRMAN, INTERNATIONAL
CONFERENCE OF SYMPHONY AND OPERA MUSICIANS
Mr. Ridge. Good morning Chairman Miller and members of the
committee.
My name is Bruce Ridge. I am chairman of the International
Conference of Symphony and Opera Musicians, or ICSOM, which is
a conference of the American Federation of Musicians. I am also
a double bassist in the North Carolina Symphony.
On behalf of ICSOM's thousands of members and AFM's tens of
thousands of members, comprising over 230 affiliated locals
across the country, including Local 367 in Vallejo and Local
424 in Richmond, in your district, Mr. Chairman, I thank you
for your attention to this issue.
Chairman Miller. So do they.
Mr. Ridge. In 1932, my orchestra was founded by the WPA.
That was also a time of economic crisis. But instead of cutting
back, we invested in the arts.
Critics sometimes say that classical music is just for the
elite, but as an orchestral musician, I know how much everyone
loves to hear us play. And the numbers bear this out. Opera
attendance has increased 40 percent since 1990. Classical music
accounts for 12 percent of sales on iTunes, and music schools
across the country are seeing an all-time high in the numbers
of applicants.
Musicians don't do it for the money. We are ultimately the
Nation's biggest donors to the arts. And we are the ones who
sacrifice to keep orchestras alive in hard times. We happily
give to the arts. But we must still pay doctors' bills, make
rent, and feed our families.
I have been fortunate in my career. I started playing at
age 10. And I have worked steadily as an orchestral musician
for 30 years. By age 15, I was a working professional in the
Virginia Symphony. I would go from school to symphony and then
play in late-night jazz clubs I was too young to legally get
into otherwise. Back home by 3:00 a.m., I would be sitting in
school just a few hours later.
Although I may have started a bit younger than others, my
story is not atypical. Many classical musicians work several
jobs, driving from town to town as members of a Freeway
Philharmonic. Some members work in as many as four different
orchestras, each a different 2-hour commute from home and each
with its own set of concerts, rehearsals and community
involvement.
In today's economic climate, the challenges for working
musicians are growing ever more serious. Many orchestras face
the prospect of reduced seasons, layoffs, lower wages and
higher health care premiums. This is a national problem. The
musicians of the Cincinnati Symphony, one of the world's finest
orchestras, recently accepted an 11 percent pay cut. The
Baltimore Opera Company has filed for bankruptcy. The Santa
Clarita Symphony in Congressman McKeon's district cancelled its
2009 season. The musicians of the Honolulu Symphony are now 7
weeks behind in paychecks. On a daily basis, my phone rings
with more news of yet another orchestra's financial crisis.
For musicians, the losses are immeasurable. Some must sell
their instruments to make ends meet, while others face the loss
of their careers all together. Many of these musicians have
children or spouses who depend on them and who also suffer from
these cutbacks. How could I respond when a woodwind musician
asked me how she could afford to take her child to a doctor
after her orchestra's proposed cutbacks?
Our losses are everyone's losses. If musicians can't afford
to stay in the profession, the Nation will lose its music.
Musicians are small business people, patching together
royalties, concert fees, and union benefits like session fees,
pension, and health care to come up with a decent living. On
Broadway, musicians face replacement by recorded music
substituted for live music. In Hollywood, outsourcing film
scores to musicians abroad threatens the livelihood of American
musicians.
Congress can make and indeed already has made a big
difference in these musicians' lives. The American Jobs
Creation Act helped our recording musicians by providing tax
incentives for domestic film production. Pension reform
legislation has also helped the AFM keep its pension plan
available to musicians.
And Chairman Miller, we thank you for your leadership on
this important issue.
Several members of this committee have cosponsored H.R.
848, the Performance Rights Act, which gives recording artists
the right to royalties when their performances are played over
AM-FM radio. Recorded music makes money for radio, whereas
radio doesn't pay performers a single cent. The Performance
Rights Act would correct this inequity. And we ask you to
consider supporting this legislation.
Indeed, entertainment is America's second largest export.
And music is essential to nearly all of its forms, either
standing alone or as part of theater, film, and television. We
can count the dollars, but we can't count the value of music to
the American spirit. We saw it when the New York Philharmonic
traveled to North Korea on a mission of diplomacy and artistry,
and the Nation and the world were electrified by those images.
And we see it here at home when my own WPA-founded North
Carolina Symphony plays free concerts for tens of thousands of
school children every year. I can't even go to the grocery
store without people telling me how much it meant to them when
the North Carolina Symphony played at their school. The value
of these experiences cannot be measured and must not be lost.
And on behalf of musicians everywhere, I thank you for this
opportunity to address the committee.
[The statement of Mr. Ridge follows:]
Prepared Statement of Bruce Ridge, Chairman, International Conference
of Symphony and Opera Musicians, American Federation of Musicians of
the United States and Canada (AFL-CIO)
Good morning, Chairman Miller, Ranking Member McKeon and members of
the Committee. My name is Bruce Ridge. I am Chairman of the
International Conference of Symphony and Opera Musicians, or ICSOM,
which is a conference of the American Federation of Musicians, or AFM,
and I'm also a double-bassist in the North Carolina Symphony. On behalf
of ICSOM's thousands of members and AFM's tens of thousands of
members--comprising over 230 affiliated locals across the country,
including Local 367 in Vallejo, CA and Local 424 in Richmond, CA in
Chairman Miller's district--I thank you for your attention to the
impact of the economic crisis on the working musicians and performers
ICSOM and the AFM represent.
As you have already heard, the arts help drive the economy, build
communities, and educate future generations. Too often forgotten,
however, are the artists who make these contributions possible.
As an orchestral musician, I know how much people love to hear us
play; and we love to play for them. The numbers bear out this popular
commitment to the arts: Opera attendance has increased 40% since 1990.
Classical music accounts for 12% of sales on I-Tunes, and music schools
across the country are seeing an all-time high in numbers of
applicants. America's talented young people are seeking opportunities
to pursue their dreams of artistic excellence in record numbers.
Musicians love their work. None of us do this for the money. It
takes years of hard work and dedication to perfect our craft. But we
must still pay doctors' bills, make rent, and put food on our families'
tables.
I've been fortunate in my career. I started playing at age 10, and
I've worked steadily as an orchestral musician for 30 years, the past
22 of which I've spent in the North Carolina Symphony. But finding this
stability has not been easy. By age 15, I was a working professional in
the Virginia Symphony. I would go from school to symphony, then play in
late-night jazz clubs I was too young to legally get into otherwise.
Back home by 3 am, I'd be sitting at a desk in school just a few hours
later. Although I may have started a bit younger than others, my story
is not atypical. Many classical musicians work several jobs, driving
from town to town as members of a ``Freeway Philharmonic.'' Some
members work in as many as four different orchestras--each a different
two hour commute from home, and each with its own set of concerts,
rehearsals, and community involvement.
In today's economic climate, the challenges for working musicians
are growing ever more serious. Some orchestras have already folded, and
many more face the prospect of reduced seasons, layoffs, lower wages,
and higher health care premiums. This is a national problem. The
musicians of the Cincinnati Symphony, one of the world's finest
orchestras, recently accepted an 11% pay cut. The Baltimore Opera
Company has filed for bankruptcy. The Santa Clarita Symphony, in
Ranking Member McKeon's district, cancelled its 2009 season. The
musicians of the Honolulu Symphony are now seven weeks behind in
paychecks. On a daily basis my phone rings with more news of yet
another orchestra's financial crisis.
For musicians, the losses are immeasurable. Some must sell their
instruments to make ends meet, while others face the loss of their
careers altogether. Many of these musicians have children or spouses
who depend on them and who also suffer from these cutbacks. What could
I say, when a woodwind musician whose orchestra faced reductions in pay
and healthcare benefits asked me how she would be able to take her
child to the doctor with the orchestra's proposed cutbacks?
The problems extend beyond orchestral music. Musicians of all types
are small businesspeople, patching together royalties, concert fees,
and union benefits like session fees, pension, and health care to come
up with a decent living. On Broadway, musicians face replacement by
``virtual orchestras''--recorded music substituted for live music. In
Hollywood, outsourcing film scores to musicians abroad threatens
American musicians' livelihood.
Congress can make--and indeed already has made--a big difference in
these musicians' lives. The American Jobs Creation Act helped our
recording musicians by providing tax incentives for domestic film
production. Congress has also helped the AFM keep its defined-benefit
pension plan available to its members, and we thank you for your
leadership on this important issue.
Congress continues to help working musicians. Several members of
the Committee have co-sponsored H.R. 848, the Performance Rights Act,
which gives recording artists a right to royalties when their
performances are played over AM-FM radio. Most recording artists aren't
household names. They're background performers and session musicians--
the behind-the-scenes artists who make music happen. Even the more
well-known recording artists often have a narrow window of popularity;
their songs are then played over the radio for years thereafter. But
unlike other copyright holders, performing musicians never receive a
single cent when their recordings are played over the AM-FM radio. The
Performance Rights Act would rectify this inequity, and we ask you to
consider supporting this important legislation.
Entertainment--theater, film, video games, recordings, etc.--is
America's second-largest export, and music is a central part of that
economic enterprise. But music's value as a symbol of the American
spirit is incalculable. We saw it when the New York Philharmonic, an
ICSOM and AFM-represented orchestra, traveled to North Korea on a
mission of diplomacy and artistry. We see it here at home when my own
North Carolina Symphony--founded during another time of economic
crisis, the Great Depression, as part of the WPA--plays free concerts
for tens of thousands of schoolchildren each year. Our performers
cherish at these opportunities, but they also need to make a living.
Thank you for your attention.
______
Chairman Miller. Thank you.
Ms. Florino.
STATEMENT OF JOANNE FLORINO, EXECUTIVE DIRECTOR, TRIAD
FOUNDATION, INC.
Ms. Florino. Good morning, Chairman Miller, Mr. Guthrie,
and members of the committee.
Thank you for the opportunity to testify before you on the
value of foundation giving to the arts and potential threats to
that giving.
My name is Joanne Florino. I am the executive director of
the Triad Foundation. We are based in Ithaca, New York, and we
are a family foundation. We make over $9 million in grants each
year, and a significant portion of our grantmaking goes toward
arts education and cultural programs in the States of New York,
North Carolina, and Florida.
Additionally, I am here on behalf of the Alliance for
Charitable Reform. The Alliance was founded in 2005 as a
project of the Philanthropy Roundtable, which represents over
600 private foundations across the United States. ACR was
formed to respond to legislative proposals on Capitol Hill that
affect foundations and the charities they serve.
As I know you are aware, the arts community relies heavily
on private contributions. According to recent data by the
National Endowment for the Arts, private contributions
accounted for 43 percent of arts organizations financing, or
$13.5 billion, compared to 13 percent from government.
The Triad Foundation is proud to be among the many
foundations who give generously to these causes. And in our
grantmaking, we seek to expand access to the arts, expand the
audience to the arts and expand the pool of current and future
donors for the arts. An example is a $1 million challenge grant
which Triad made to ImaginOn in Charlotte, North Carolina. That
grant stimulated a $1 million match by other donors in that
city. ImaginOn is now the home of the Children's Theater of
Charlotte and the public library of Charlotte and Mecklenburg
County Youth Services Department. The opportunity to co-locate
those two organizations has resulted in outstanding programming
and more accessible arts and cultural education programs for
the youth of Charlotte, North Carolina.
As you know, there is a proposal in President Obama's 2010
budget that could have a chilling effect on private giving,
particularly as it relates to arts organizations. The proposal
would essentially make it more expensive for individuals to
contribute to charities, either directly or through
foundations, by limiting the value of the itemized deduction
individuals receive for making such gifts. In fact, Indiana
University Center for Philanthropy estimates that the proposal
would represent a 20 percent increase to the cost of giving.
On behalf of both the Triad Foundation and the Alliance for
Charitable Reform, I believe this proposal is a step in the
wrong direction and comes at a time when Americans and the
government are relying more, not less, on the nonprofit sector.
The House Budget Committee released their budget proposal
yesterday. And fortunately, their proposal excluded President
Obama's proposed limit on the charitable deduction. It is clear
that this proposal is troubling to both Members of Congress and
the charitable community. I do want to thank the members of the
House Budget Committee for excluding that proposal.
Deteriorating economic conditions are forcing charities to
face higher demands for services with fewer resources. When we
look at human services, we see the example of the Midnight
Mission Shelter in Los Angeles, which estimates that the
downturn in the economy is leading them to provide15,000 more
meals each month even though donations are down $200,000 from
the previous year.
The arts community faces the same challenges. The Wall
Street Journal reported that the Baltimore Opera's board
recently voted to liquidate the organization. And I have to say
that those of us who work with nonprofits know that
resurrecting a dead nonprofit is far more difficult than
maintaining one.
The Detroit Institute of the Arts reduced 20 percent of its
staff as part of a $6 million budget cut. So this new budget
proposal comes at a terrible time.
According to a January 2009 study by MetLife, cash flow
concerns have forced 40 percent of Americans to give less often
to charities. And I have to believe that that is also causing
the drop in arts audiences.
On top of that, the Tax Policy Center estimated that the
administration's itemized charitable deduction proposal coupled
with higher rates on individuals would result in a $9 billion
drop in giving for 2011, roughly triple the yearly budget of
the American Red Cross.
Who loses under this proposal? Those that rely most heavily
on private giving. Organizations dedicated to arts education,
music and cultural programs.
Foundations have not been immune from financial losses
either. Far from it. The philanthropic sector has sustained
losses of 20 to 45 percent of its assets. Now more than ever it
is time to encourage as much private giving as possible.
We respectfully request that Congress enact their policies
to do just that, and Congress can take immediate and
responsible steps to put more dollars in the hands of
charities.
First, we ask that Congress reduce the excise tax private
foundations pay on their net investment income from 2 percent
to 1 percent. The two-tiered excise tax creates a disincentive
for foundations to give more in times of great need, like now.
A reduction in the excise tax rate for all private foundations
would make more dollars available for charities.
Second, Congress should extend and expand the popular IRA
charitable rollover provision, which is scheduled to expire at
the end of 2009. That provision drives more dollars to charity
by allowing Americans over the age of 70.5 to contribute up to
$100,000 from their individual retirement accounts to charity
without having to declare the contribution as income for the
year.
Both of these provisions would stimulate and encourage
additional giving to nonprofit organizations who are in
desperate need of resources. By further incentivizing
charitable giving and not discouraging it, Congress can ensure
that Americans will continue to have access to the important
and valuable services they rely on from our nonprofit sector. I
appreciate the opportunity to appear before this committee and
share my thoughts on these issues and welcome any feedback or
questions you might have.
Thank you.
[The statement of Ms. Florino follows:]
------
Chairman Miller. Thank you.
Mr. Thomasian.
STATEMENT OF JOHN THOMASIAN, DIRECTOR, NATIONAL GOVERNORS
ASSOCIATION, CENTER FOR BEST PRACTICES
Mr. Thomasian. Thank you, Mr. Chairman, members of the
committee. My name is John Thomasian. I am director of the
National Governors Association Center of Best Practices.
I appreciate the opportunity to appear before you today. I
am going to talk briefly about a report we recently published
entitled, ``Arts and the Economy: Using Arts and Culture to
Stimulate State Economic Development.''
As director of the NGA Center of Best Practices, our
mission is to provide Governors with advice and innovative
ideas on the full range of domestic policy issues, including
economic development. With regard to State economic strategy,
our approach has been to help Governors inventory their natural
assets and identify the competitive industries in their States.
When we do this, it becomes clear that creative industries are
valuable components of all State economies.
Estimates in the number of workers employed within these
industries vary widely. We heard Representative Slaughter today
talk about 5 million. That may be a lower bound. Others have
estimated it to be as high as 40 million when you look at those
who add creative content to product. A number of Governors have
documented the economic impact of the creative industries.
Arkansas, for example, found that the arts and cultural-
related firms employ nearly 27,000 individuals and generate
almost $1 billion in personal income for Arkansas citizens.
In North Carolina, creative industries infused $3.9 billion
into the State's economy in 2007.
And in Massachusetts, the cultural sector contributed well
over $4 billion.
Recognizing these positive impacts, Governors have led
efforts to foster the arts and creative industries in their
States, and they generally employ four broad tools: grants; tax
incentives; financial aid to education and workforce training
institutions; and technical assistance to artists and arts-
related businesses.
Small, targeted grants are a frequently used tool. In
Mississippi, for example, after Katrina, grants to artists in
the order of approximately $5,000 were given to help the
artisans and artists get back into their businesses. The
program also included a series of workshops on business plan
development and accounting to help artisans sustain their
efforts.
Tax incentives are another strategy Governors have used to
spur cultural enterprises. Maryland designates arts and
entertainment districts that receive property tax credits for
construction of arts-related spaces, exemptions from the
State's amusement and entertainment tax, and income tax
deductions for artistic works sold by artists that reside
within the district. As of 2008, at least eight other States
had similar measures.
Enhancing workforce skills through State universities and
community colleges are another way Governors can assist the
creative industries. Connecticut offers a film industry
training program at several community colleges. The program
teaches individuals the basics of feature film and episodic
television production and also how to pursue entry-level
freelance work in the industry.
State universities also can bring artists and traditional
industries together to stimulate new thinking and new lines of
product. The University of California in Santa Cruz has
partnered with local industry in the city of Santa Cruz to
establish the Santa Cruz Design Plus Innovation Center. The
center leverages local design talent to grow and attract
design-based businesses. Innovation, such as the camera phone
and carbon fiber bicycle frames, have sprung from these
activities.
Finally, some programs focus on simply providing technical
assistance to artists and artist entrepreneurs who are
establishing arts-related businesses. The Alaska Native Arts
Program provides workshops and business courses in centralized
locations to address issues important to any small business,
such as quality control, market analysis, pricing, and Federal
and State regulations. Other program activities help
individuals network, identify funding opportunities and reach
larger markets for their work.
In conclusion, these examples and others highlight the fact
that the Governors are leading efforts to capitalize on the
benefits creative industries can offer. Creative industries can
create jobs. They can attract investments. They can generate
tax revenues and stimulate local economies. A creative
workforce, as has been discussed here, also can contribute to
product innovation and improve the competitiveness of
traditional industries.
I appreciate the opportunity to talk with you today. And I
look forward to answering any questions. Thank you.
[The statement of Mr. Thomasian follows:]
Prepared Statement of John Thomasian, Director, Center for Best
Practices, National Governors Association
Chairman Miller, Ranking Member McKeon, and members of the
committee, my name is John Thomasian and I am the director of the
National Governors Association Center for Best Practices (NGA Center).
I appreciate the opportunity to testify before you today on the recent
NGA Center report, Arts & the Economy: Using Arts and Culture to
Stimulate State Economic Development and to discuss governors' work to
maximize the economic benefits of the creative industries.
The NGA Center develops innovative solutions to today's most
pressing public policy challenges and is the only research development
firm that directly serves the nation's governors. The NGA Center's
policy experts provide governors advice and examples on a full suite of
policy issues, including education, health care, homeland security, the
environment, public safety, and economic development.
Overview
Conservative estimates of the number of workers employed nationwide
by arts and culture-related industries--also known as ``creative
industries''--reveal more than 612,000 arts businesses, which employ
nearly 3 million workers.\1\ These figures represent workers employed
strictly by arts-centric sectors such as museums; performing arts
(including music); visual arts; film, radio, and television; design and
publishing; and arts schools and services. However, artists and other
creative workers can be found in a multitude of industries, from
tourism and agriculture to technology and consumer products. Broader
definitions of the creative industries--or ``creative class'' as coined
by Richard Florida--encompass those whose economic function is to
create new ideas or creative content. By this definition, around 40
million Americans--or 30 percent of employed people--are creative
sector workers.
---------------------------------------------------------------------------
\1\ Americans for the Arts, Creative Industries in 2008: The State
Report, (Washington, D.C.: Americans for the Arts, 2008).
www.americansforthearts.org
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Creative industries are far broader than many might initially
assume. Today, you will find artists employed by numerous sectors
critical to economic development and international competitiveness. The
technology sector, for instance, includes workers who specialize in
graphic and web design, animation, and media arts. Corporations that
develop consumer products rely on artists to enhance the design, look,
and feel of their products.
In fact, creative workers are key to America's economic
competitiveness in a global market. The market value of products is
increasingly determined by a product's uniqueness, performance, and
aesthetic appeal, making creativity a critical competitive advantage to
a wide array of industries. Apple Corporation's popular iPod is
developed through the company's iPod Engineering team, which includes
not just engineers, but also two design teams, whose job it is to
conceive, design, and produce new iPod products. The company includes
``creativity'' among the six skills it most desires in its iPod
Engineering employees.\2\
---------------------------------------------------------------------------
\2\ Apple.com, Job Opportunities: Skills You'll Need, (Web site).
http://www.apple.com/jobs/us/pro/ipod/skills.html.
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For the last several years, the NGA Center has been helping
governors understand their state economies in terms of natural assets
and clusters of competitive firms. Clusters are simply groups of
related producers, suppliers, distributors, and intermediaries that
draw advantages from their mutual proximity and relationships. Creative
industries represent in several types of clusters, including specialty
tourism, graphic and web design businesses, film making industries, and
unique agricultural products (wine making for example).
Today, governors recognize that creative industries are valuable
components of state economies:
Creative and new media industries are growing in number
and playing increasingly prominent economic and social roles;
Companies' decisions about where to locate their
businesses often are influenced by factors such as the ready
availability of a creative workforce and the quality of life available
to employees; and
Many businesses today require collaboration with artists,
designers, and media specialist to develop innovative products.
In addition to strengthening a state's competitive edge and
contributing revenue for states' economies each year, creative
industries can help revitalize weak economic areas, attract a skilled
workforce, and bring in tourism dollars. For instance, in Louisiana the
tourism industry--the state's second-largest industry, employing around
144,000 people--capitalizes on the state's rich history and culture as
well as its unique musical and culinary heritage. The tourism industry
partners with local musicians and artists each year to draw thousands
of tourists to New Orleans, not for Mardi Gras, but for the New Orleans
Jazz & Heritage Festival. The festival celebrates the cultural heritage
of Louisiana through a showcase of music of every kind--jazz, gospel,
Cajun, zydeco, blues, R&B, rock, funk, African, Latin, Caribbean, and
folk to name a few--as well as through presentations of crafts by local
artists, folklife exhibitions, and distinctly local culinary creations.
In recognition of the impact creative industries have on state
economic development, numerous governors have adopted a wide range of
strategies designed to foster arts and culture and tap into the
resulting economic benefits.
The NGA Center's Report and Findings
In January, the NGA Center for Best Practices released a report,
Arts & the Economy: Using Arts and Culture to Stimulate State Economic
Development.\3\ The National Endowment for the Arts funded the report,
which highlights the governors' efforts to maximize the economic impact
of creative industries. A copy of the full NGA Center report is
attached to my written testimony.
---------------------------------------------------------------------------
\3\ Chris Hayter and Stephanie Casey Pierce, Arts & the Economy:
Using Arts and Culture to Stimulate State Economic Development
(Washington, D.C.: National Governors Association Center for Best
Practices, 2009). http://www.nga.org/Files/pdf/0901ARTSANDECONOMY.PDF
---------------------------------------------------------------------------
In summary, the NGA Center report found that governors are taking
action to develop creative industries by supporting businesses and
entrepreneurs; partnering with universities to train creative workers;
encouraging collaborations between artists and traditional industries;
improving local development by incorporating arts into community
planning; and attracting tourists to their states by promoting cultural
assets and products.
The NGA Center report is not an advocacy piece for arts and
culture. Rather, it aims to shed light on the creative cluster that
many governors have identified through studies of their statewide and
regional economies. Creative workers and businesses comprise a
significant portion of the economy in many states. For example,
creative industries in Arkansas employs nearly 27,000 individuals and
generates $927 million in personal income for Arkansas citizens.
Creative enterprises are the state's third largest employer--after
transport and logistics and perishable and processed foods. In North
Carolina, the wages and income of workers employed by creative
industries infused $3.9 billion into the state's economy in 2006. And
in Massachusetts, the 17.6 percent yearly growth of the cultural sector
contributed $4.23 billion to the state's economy.
As governors identify the extent to which creative industries
contribute to state economies, they work to support creative industries
through businesses, entrepreneurs, and networks and by developing a
skilled workforce for the sector to draw upon. Governors incorporate
arts and culture into community development plans through the use of
grants, enterprise zones, and by supporting development of art space.
Finally, they include arts and culture in state tourism strategies,
particularly through efforts that promote unique cultural heritage or
local products.
Developing Creative Industries
Governors are leading many different approaches to develop and
strengthen states' creative industries.
North Carolina, for example, focuses energy on developing and
expanding its crafts industry. HandMade in America in North Carolina--
established in 1993 with assistance from the North Carolina Arts
Council--encourages and enables product development among local craft
artisans. HandMade hosts a business boot camp to teach business
planning, marketing, and entrepreneurship skills to artists. HandMade
links more than 320 regional artists, crafts producers, bed and
breakfasts, farm tours, restaurants, and other businesses through a
200-mile-trail system that is part of a larger tourism marketing
campaign.
Ohio bolsters its arts-focused nonprofits through the Ohio Arts
Council's Sustainability grant program, which provides two-year grants
to nonprofit organizations that offer broad-based, ongoing arts
programs within their communities. In Texas, the Commission on the Arts
couples grants with technical assistance to help nonprofit arts
organizations build organizational capacity and strengthen business
management practices. Likewise, Virginia's Commission for the Arts
provides Technical Assistance Grants to support nonprofit management
and operations training.
Creative industries encompass a number of small businesses and
individual entrepreneurs as well as nonprofit arts organizations. In
Mississippi, grants to artist-entrepreneurs emerged as a formidable
post-Katrina revitalization strategy. The state's Business Recovery
Grant Program, awarded $5,000 grants to small arts businesses, self-
employed artists, and craft enterprises affected by the storm.
Recipients used the grants to purchase tools, equipment, and supplies
to create and sell arts or crafts. The program, which included a series
of workshops, including business plan development, accounting
practices, and insurance needs, was featured in Governor Haley
Barbour's Recovery Expo, a 2006 forum on recovery strategies and
resources.
Working with state universities and community colleges, governors
also are bolstering the business acumen of artists, to maximize
economic impact. In Alaska, the University of Alaska Rural Extension
Program provides support for artist-entrepreneurs in rural communities
through the Native Arts Program, which provides workshops and business
courses to address issues important to entrepreneurs, such as quality
control, market analysis, pricing, and federal and state regulations.
Another example is Connecticut's Film Industry Training Program at
Middlesex Community College, Norwalk Community College, and Quinnipiac
University, offered by the Connecticut Office for Workforce
Competitiveness in partnership with the Commission on Culture &
Tourism. The program trains individuals who want to learn the basics of
feature film and episodic television production and pursue entry-level
freelance work in the industry.
Increasingly, governors realize a competitive edge by encouraging
collaborations among artists, designers, and product engineers in a
variety of manufacturing and high-tech industries, especially in
product design. These collaborations stimulate new thinking, encourage
new product development, and make the most of a state's collective
creative and business resources. For example, The University of
California Santa Cruz, part of the state university system, partnered
with local industry and the city of Santa Cruz to establish the Santa
Cruz Design + Innovation Center. The center leverages local design
talent to grow design-based business and attract new businesses to the
area. It seeks to create opportunities for networking and
interdisciplinary collaboration as well as a space for teams to tackle
cutting-edge design challenges.
In Wisconsin, the John Michael Kohler Arts Center Arts/Industry
Residency Program offers artists access to industrial technologies
through residencies, workshops, and tours. The primary component of
Arts/Industry is a residency program at Kohler Company, the nation's
leading manufacturer of plumbing hardware, where artists have the
opportunity to spend two to six months creating works of art using
industrial equipment and materials--pottery, iron, brass, and enamel--
and exploring forms and concepts not possible in their own studios. The
Kohler Company, in turn, is given fresh ideas for its product lines.
For example, Kohler's ``Artist Editions'' collection of surface-
decorated plumbing fixtures grew directly out of the Arts/Industry
program.
Community Development
Arts also can play a major role in community development and
redevelopment through job creation and improving the quality of life.
Governors are helping localities incorporate arts into community
development plans through grants to communities, technical assistance,
and financial or tax incentives. Governors also designate select areas
as ``arts districts'' to target their cultural economic development
dollars.
Utah's Creative Communities Initiative awards grants to communities
to help connect the arts to community building, civic engagement,
community planning, and use of public space. These ``Utah Creative
Communities,'' and received access to leadership training to help them
leverage additional funding and community buy-in. The measurable
economic impact from initiative projects was $4,500 to $13,500 per
community.
Another approach used by governors is the cultivation of strong
local leadership for incorporating the arts into local development. The
South Carolina Design Arts Partnership (SCDAP) is a joint initiative of
the South Carolina Arts Commission and Clemson University. The
initiative improves the quality of the state's built environment
through design education and leadership training. South Carolina's
institute provides training for the state's mayors and municipal and
county planners for applying design principles to planning,
development, and transportation.
Tax credits are another strategy governors employ to spur economic
activity through cultural enterprises. For instance, Maryland created a
program that designates Arts and Entertainment Districts. These
districts receive property tax credits for construction of arts-related
spaces, exemptions from the state's amusement and entertainment tax,
and income tax subtractions for artistic work sold by artists residing
within the designated district. In return, the districts become focal
points that attract businesses, stimulate cultural development, and
foster civic pride. Maryland's Arts and Entertainment Districts have
achieved significant increases in retail occupancy rates, property
value, and tourist traffic. As of 2008, seven other states--Indiana,
Iowa, Louisiana, New Mexico, Rhode Island, Texas, and West Virginia--
had similar policies in place, leading to the establishment of 58 local
arts or cultural districts across the nation.
The presence of cultural facilities is a key component of a
productive infrastructure for economic activity through the arts. The
Florida Division of Cultural Affairs' Cultural Facilities Program funds
the construction, renovation, and acquisition of cultural facilities in
Florida. One of the most recent cultural facilities programs among
states is the Massachusetts Cultural Facilities Fund. Created in 2006
as part of a major economic stimulus bill in Massachusetts, the fund
aims to increase investments from both the public and private sectors
to support the planning and development of nonprofit cultural
facilities in the state.
Tourism
A major focus of governors' art strategies is strengthening
tourism. Many travelers pick vacation spots not only for their natural
resources but also for their cultural offerings. Governors use a number
of innovative strategies to tap into their states' unique cultural
resources as tourism assets. By encouraging cultural tourism and
marketing their unique arts assets, governors are attracting more
visitors and augmenting the impact of tourism as a contributor to state
economies.
Through the New York State Heritage Area Program, New York is able
to offer state-level coordination of its cultural, natural, and
historical resources. The program includes 19 ``heritage areas,'' which
encompass more than 425 municipalities. The Heritage Area Program aims
to promote and preserve cultural and historical areas throughout New
York through a state-local partnership. The New York State Office of
Parks, Recreation and Historic Preservation offers a guide and a
brochure to promote the state's heritage areas.
Connecticut has recently instituted Culture & Tourism Partnership
Grants to encourage interdisciplinary collaborations among arts,
historical, film, and tourism organizations with the goal of helping
localities build relationships and develop strategies to generate
revenue and attract visitors. The Arts Division of the Connecticut
Commission on Culture & Tourism administers the grants, which can be as
much as $3,000. In 2006, projects funded by the grant program included
an arts festival, a family-friendly museum exhibit ``trail,'' a film
festival, a historic garden trail, a Halloween craft and event
festival, and a theater package.
Branding is an important marketing technique used in Montana to
promote unique homemade and homegrown products of Montana artists and
farmers. The Made in Montana (MiM) program was established in 1984 to
help market products created, produced, or enhanced in the state by
Montana residents. Likewise, the Kentucky Craft Marketing program uses
a unique brand to help promote products crafted by Kentucky artists. In
addition, the program supports efforts to market the products
themselves to wholesale trade outlets, the tourism industry, and the
public. It uses an annual exhibition that connects Kentucky artists and
craftspeople with national buyers for their products and serves as an
information clearinghouse to help artisans locate sales opportunities,
materials, and funding.
New Jersey is another state that uses branding to attract tourist
dollars and bolster the sales and marketing of resident artists and
arts organizations. Discover Jersey Arts is a statewide campaign to
promote cultural tourism, build arts audiences, and generate revenue
for arts organizations. Sponsored by the New Jersey State Council on
the Arts and local partners, Discover Jersey Arts uses its Web site, a
toll-free hotline, the Jersey Arts Guide, a Jersey Arts Ticket member
card program, and other cooperative marketing programs to promote the
Discover Jersey Arts brand.
Other states, like New Mexico, attract visitors by promoting unique
cultural destinations. The New Mexico Fiber Arts Trails is a
collaboration between the state and a network of fiber artists. The
program promotes New Mexico's heritage while boosting tourist traffic
and creating opportunities for New Mexican artists. This program allows
rural artists to practice their heritage and remain in their homes,
which helps develop rural areas of the state.
Conclusion
As these examples--and others highlighted in the NGA Center
report--demonstrate, governors are leading efforts to capitalize on the
numerous benefits creative industries can offer to state economies.
Through creative industries, states can create jobs, attract
investments, generate tax revenues, and stimulate local economies
through tourism and consumer purchases. In addition, creative
industries are playing a key role in the contemporary workforce, making
creative contributions to industries' products and services, and
infusing culture into community development.
Thank you for having me here today to discuss the impact of
creative industries on economic development and jobs. I look forward to
answering your questions about the NGA Center Report.
attachment
NGA Center Report: Arts and the Economy: Using Arts and Culture to
Stimulate State Economic Development. Available at: http://www.nga.org/
Files/pdf/0901ARTSANDECONOMY.PDF.
______
Chairman Miller. Thank you very much. Again, thank you to
all of the witnesses for your testimony.
Let me say at the outset that I may be in a minority here,
but I think President Obama has raised a very fundamental
question about fairness. That question is very simple: A family
that doesn't itemize its deductions gives $100 to the arts, and
it costs them $100. A family in the 25 percent bracket, it
would cost them $75 to give that $100. And the family that is
in the 35 percent bracket, it costs them $65 to give that $100.
And the question is, should we cap it at 28 percent? Why would
we subsidize wealthy people with taxpayer money to give more
money to the arts than people who are working and make a
decision, and in fact, I think about half of this comes from
people in the lower brackets when you add it all up. Despite
the remarkable generosity of wealthy people in terms of the
arts, there is a huge slew of people there that are in that
position. That is a debate for the Ways and Means Committee for
the moment, not for us, and the Budget Committee last night. I
just want to make that point that I think it is a question to
be raised about tax fairness and that policy.
Let me begin by thanking you. You make a remarkable case, a
case that I have always believed has existed. And I see the
case in my own district and obviously in California of the fact
that the arts are a huge engine for economic activity however
you want to describe it, and each of you have described it a
little bit differently in terms of the economic activity to
small businesses in Cedar City or to a large community in
Miami-Dade, to that list of credits that you talked about, Mr.
Daly.
When you see the TV program, you see the movie or the stage
play, you only see the people in front. And you realize what is
going on behind the scenes. We used to have a great tour of New
York City with the Arts Caucus for many years for Members of
Congress so that people could go behind and see what it took to
manage all of that.
Why does music come so late in the credits?
Mr. Daly. I don't know. It is a very interesting----
Chairman Miller. It is such an integral part of a movie and
can be overwhelming, and it comes so late. We will take the
answer off the air, unless you really have got the answer.
Mr. Daly. My brother-in-law is a very well known composer
and has made his living for a long, long time composing music
for television and for movies. He has been nominated for I
think 23 Emmy awards, never won, and a Cesar award, which is
the French Oscar. And he would be better equipped to answer
that question.
Chairman Miller. It is just something I wondered.
Mr. Daly. But I don't know. It is too bad because, you
know, honestly, music can make or break a movie. I actually saw
a movie that my son did the other day. I saw it first at the
Tribeca Film Festival, and it had a lot of music in it that was
source music, music that set the tone. And of course, when it
was released, they couldn't afford to pay for all that music.
So it had a different score. And I have to say, honestly, it
damaged the movie considerably. So I guess, I don't know, that
is probably a bad thing to say. I shouldn't say that publicly.
But you know, music is such an important part of film.
Chairman Miller. Thank you.
Mr. Bahr, in Cedar City, you have obviously made a decision
that you are going to dramatically reduce the size of this
generator that has brought, you say you think it is around $35
million in economic activity to the community. That is mainly
because of the loss of foundation assistance. You have talked
to the foundations. Obviously, we have witnessed not only
people's individual retirement accounts but foundation
investments of all kinds have dropped dramatically.
Mr. Bahr. There are actually three reasons. And our
foundations have actually hung with us. But our board, in
November, a lot of movers and shakers within the State of Utah
and Las Vegas area, they said, with the economy doing what it
is doing, we will not approve this budget unless you cut by 15
or 20 percent. And so we went back in necessity, and then we
started looking at our presales and our ticket sales and what
the economy was doing. So the three reasons were: First of all,
reductions in foundations; number two, the recommendation from
the board; and just the reality of the economy.
Chairman Miller. So the signals you were seeing when you
look toward the summer season, the signals what you were
seeing----
Mr. Bahr. Correct. And knowing we wouldn't be good
stewards, that we wouldn't be able to pay the others. And it
was a very, very painful process. The hardest thing for me to
read there, since we brought up music, it costs $50,000 for us
to have a pit for a live orchestra. We, since our inception,
have had a live orchestra. And to make that--I think that
strengthens the case of the musicians over here--was terribly
painful. But when we through the $50,000--when we were trying
to feed nine shows, because we have nine shows, and those nine
shows feed all of those different professions, we chose to cut
and pay a synthesizer and a man to orchestrate it for $24,000.
So it is a major artistic loss for us. But the major thing that
caused us to do that was the board wisely saying, if we don't
prepare for this, there will be a problem here.
Chairman Miller. Thank you.
I have a zillion other questions. But I know we are going
to get jammed up so I want to give my colleagues time here.
Mr. Platts.
Mr. Platts is a cochair of the Arts Caucus. He had a
conflict and was unable to be with Ms. Slaughter at the
opening, but you are recognized for 5 minutes.
Mr. Platts. Thank you, Mr. Chairman.
First, I appreciate you holding this very important hearing
and all of our witnesses and do regret that I wasn't able to be
here for my cochair's testimony as well as the interaction with
her Q&A.
But I do appreciate all of our witnesses for both your work
regarding the arts and your testimony, both written and oral,
here today.
If I had a chance to show you my office, it is what I call
my children's private art gallery. I have got a 10-year-old and
a 12-year-old. And it is my sanctuary down here. I am one of
the lucky ones. I commute from my district in Pennsylvania each
day. And down here, my office, between my kids' photos and
their artwork, and it is interesting how it has progressed from
finger painting to now pottery and more engaged pieces of art,
paper-mache projects and things, and a great respite, including
the performing arts.
I meant to bring along, too, what I will call their
playbills or programs. My two children, with children in two
other families, have on a number of occasions put on their own
performances with my wife and two other moms, and where they do
invite family and friends to come in and actually watch
performances. So we are very blessed in them having that
exposure. Thankfully, they have gotten my wife's genes when it
comes to artistic talent, not mine, because I don't have any.
The testimony, I want to very much associate myself with
Congresswoman Slaughter's testimony, and three points in
particular. First, her focus on tourism and urban renewal. I
have seen that in my hometown of York, Pennsylvania. A great
mayor, Democratic mayor, Mr. Chairman, you will appreciate, who
has done a great job of economic revitalization, and the arts
community has been a critical part of that.
The arts district that he has created has really
revitalized that part of the town and gotten, not just artists
there; they have a tax credit for artists who come and live at
their place of business above their studios and things, but it
has gotten people like my wife and I to get down and not just
visit those art shops, but also spend money in restaurants and
things in that area as well. So the investment is very
important and has a good return.
A number of you--and Mr. Daly, I think in your testimony,
especially your second point, arts in education, the importance
of exposing our children. We are lucky to be in a school
district that my kids do have art every week, several times a
week, and have had that since kindergarten, and complementing
what we do at home. And we know how it has benefited their
creative spirit and how that transforms itself then. So the
focus on education, and Congresswoman Slaughter talked about
that as well.
And then the third point in her testimony, and it really
relates, Ms. Florino, to your comments on the charitable giving
and a concern I do have.
And I certainly, Mr. Chairman, respect your concerns about
tax inequity.
And that is not just in the area of charitable
contributions but lots of areas of inequity in our Tax Code and
the complexity of it. But I would mention, I think, one thing
in response, and that is, whether you--there may be an argument
that someone in a higher bracket gets a better benefit because
of their tax bracket. A lot of those dollars, I know in our
community, go to benefit low-income children, programs that
they could not otherwise afford to attend, Shakespearean
program or others, and we target that assistance to low-income
families and their children so they can come and participate in
the arts. So there is a return, maybe not to the Tax Code, but
to the performers themselves from the generous--and I guess
longwinded introduction here to the question on the charitable
aspect.
Because I see this as a partnership where we need to make
investments. And I will be testifying next week for an increase
to NEA in the 2010 appropriations bill in joining my cochair
and feel strongly about that. But I do see it as a partnership
where it is not just the public doing it, meaning government in
this sense, but partnering with the private sector. And that
that is the charitable donations.
And Ms. Florino, your testimony lays it out, the $9 billion
projected loss from all charitable giving which will translate.
My question really is to the other members of the panel who are
involved with organizations that are a recipient of those
dollars. Do you share that concern that if we go forward with
that proposal, that your organizations and the artistic
community in the broad sense are going to see a loss if we do
embrace a tax policy that discourages charitable giving? And
whoever would like to respond. Maybe we will start on the left
and just go quickly. I realize I have used up most of my time
with the question.
Mr. Lynch. I would just point out that the arts, as I said
in my testimony, are funded by a very fragile ecosystem of
support, a very fragile ecosystem. Half of it from earned
income; 40 percent from private sector; 10 percent from
government. They need every break they can get from every
sector, essentially. Earned income, we want a better economy.
That is probably the most important thing. So the things that
you are doing to create a better economy, more disposable
income.
Government is the great stimulator. And it has been that
way for 50 years. And in my testimony, I talked about how that
worked. We need the kinds of things that you have been doing
there.
But on the private sector, the information that comes--it
needs to be looked at more as to what incentives work. And I
have heard some different arguments here one way or the other.
But whatever will continue to provide more dollars is what we
need.
Mr. Platts. In the interest of time, to the Chair----
Chairman Miller. If you could supply the answer to Mr.
Platts' question in writing, it would be helpful. We can
contact you. We are going to vote soon.
Mr. Platts. Thank you, Mr. Chairman.
Chairman Miller. Thank you, Mr. Platts.
If I might, if we could ask if members, if we go to 3
minutes, we might get everybody in before the votes, because I
have been given a note that we are going to have votes soon. So
if you just limit yourself to one question or statement, I
don't care what you do. But that way we may get through. And I
know you came here interested and want to ask a question.
Mr. Kildee.
Mr. Kildee. Thank you, Mr. Chairman.
I think that is a good idea. I want to expatiate on
something you said. You talked about the importance of music in
movies. Several months ago, my wife and I watched a program in
which they showed a scene from a well-known movie without the
music, and then with the music. And it was very revealing,
really very--can you imagine watching Gone With the Wind
without the music? That is an extremely integral part of that
movie. So I can't play a note. I am probably tone deaf. But all
my kids are musicians.
And I yield back the balance of my time.
Chairman Miller. Mr. Polis.
Mr. Polis. Thank you, Mr. Chairman.
I really appreciate this testimony today. In growing up,
arts put food on my table. My mother, Susan Polis Schultz, is a
poet, and my father is a graphic artist. And as a result of my
life experiences and background, I have always been a strong
supporter of the arts.
And I particularly appreciate this testimony today
regarding the diversity of the arts and also clarifying some of
the commonly held misconceptions with regard to this very
important sector in our economy.
My only quick question is with regard to arts in rural
areas. If somebody would like to address how sometimes one of
the misperceptions is, when people say arts, they think cities
only. A couple of you touched upon this. But talk about how
this is really a national issue and how it benefits rural
areas.
Mr. Bahr. I am really, really glad you bring that up
because that is a misconception. The arts are vibrant and alive
and necessary in rural areas. And particularly by my testimony,
I mean Cedar City, it is important. But to go even smaller than
Cedar City, there are, I mean, community theaters and
symphonies in those areas. And I want to echo the importance of
Federal and State dollars, because they help leverage the much
larger private dollars and especially in rural areas,
particularly Idaho, Utah, Nevada.
Mr. Ridge. If I could add to that, as a member of the North
Carolina Symphony, we play all over the State. Perhaps one of
the more gratifying things we do is, every year, we do a
holiday pops tour where we are sure to get to the smallest
communities in the State that raise money for once a year, and
the entire town turns out. They cook for us backstage. And it
is a huge event. So we play for, apart from all the school
children all over the State, we try to reach every community in
the State. It is a really remarkable situation to see.
Mr. Polis. Thank you, Mr. Chairman, I yield back the
remainder of my time.
Chairman Miller. Congresswoman Fudge.
Ms. Fudge. Thank you, Mr. Chairman.
Thank you all. I have two very quick questions.
Mr. Lynch, this is to you. Have you seen a shift over the
years in response to your organization's arts and economic
prosperity report? And what do you think that shift has been?
And the second question is to Mr. Daly. You have
recommended in your testimony that there needs to be a change
in the discourse about how we deal with arts in our culture.
And I would like to know how you think we can start that
discourse.
Mr. Lynch. I have definitely seen a shift as we have been
using economic data. That is not what the arts are about. The
arts are about inherent value, beauty, ugliness, insight. That
is what they are about. But it is always a question that we get
from the business community or the government. And as we have
had more information about jobs and economics, we have seen at
the State level, as has been talked about at the local level
and at the Federal level, and more interest in investment, more
understanding. So it has made a huge difference
Mr. Daly. That is an interesting question. You know, I was
listening to NPR the other day, and some Wall Street guy was
asked to name something in the stimulus package that he thought
was pork. And he went right to the $50 million for National
Endowment for the Arts. And frankly, it pissed me off because
it is such a minute portion of the budget. And that $50 million
divided up among the many organizations will go to generate so
much private giving and gives so many people so much joy, and
it employs so many people. There are good investments and bad
investments. And that is really a good investment.
But I think the main thing that, you know, a lot of times,
I think artists themselves, when they talk about the arts, they
are a little bit embarrassed, and there is a little bit of
confusion between what we see in the tabloid news and on TV
programs that focus on entertainment and about the arts. You
know that--when we see, you know, these young women sort of
self-emulating on TV, which is horrible and a horrible example
for my daughter, that does not represent the broader spectrum
of artists who are out there. Most artists are hardworking,
disciplined people who are vital members of our society.
So we have got to start talking about it the way we talk
about manufacturing cars and the way we talk about, you know,
other important industries and not be sort of embarrassed and
not confuse the tabloid elements of, you know, our artistic
community with the meat and potatoes of it, you know, which is
my point. It is on the--it is spinach. You know, it should be
on the plate with the meat and potatoes.
Ms. Fudge. Thank you.
Chairman Miller. Mr. Hare.
Mr. Hare. A quick statement and a quick question for you,
Mr. Daly.
I have a son, by the way, who has a masters degree in
teaching theater and is an actor. So if anybody is looking for
somebody, you want to give me a call later, I would appreciate
it.
Mr. Daly, I just want to know, given this bad economic
climate that we are in, have you seen the effect it has on TV
production of shows, like ``Private Practice''? And with these
difficult times, who or what are the first resources that get
cut?
Mr. Daly. As with most businesses, nowadays it seems the
first people to get squeezed are the smallest; the people that
need the employment the most, that make the least money and
whose income depends on paying their mortgage or their rent
every month are the first people to get squeezed. And I don't
think the entertainment industry, you know, the commercial part
of it is immune to that. I think that happens in a lot of
industries. But also there is an element of fear because there
is less production. For instance, I mean, we could argue about
this a lot. But when a company like NBC decides to put Mr. Leno
on for 5 nights a week at 10:00, you know, that might be a good
business decision on one level. But it puts literally tens of
thousands of people out of work, not just the creative people.
But that is, you know, 5 hours of television every week where
the technicians, the carpenters, the painters, the designers,
the actors, the drivers are not hired. So, you know, it is
tough. And I don't want to imply--I mean, there are parts of
the entertainment industry that are very healthy. You know,
people still do very well. But the little guy is getting
squeezed very hard and is very fearful.
Mr. Hare. Thank you, Mr. Chairman.
Chairman Miller. Congresswoman Clarke.
Ms. Clarke. Thank you, Mr. Chairman, and thank you for your
vision.
Like Mr. Daly, I was a bit appalled when we went through
the American Recovery and Reinvestment Act and the whole issue
of funding for the NEA came up, and it was kind of held with
contempt by many in the political circles and spheres and one-
upmanship. But I clearly recognize how vital a part of our
economy the work of the community of arts and culture has been.
I am from Brooklyn, New York, where it is a major source,
not necessarily the high publicity end of things but certainly
a major part of the growth and development, the stimulation of
the communities that I serve. And so today's hearing is very
vital, I think, to bringing to the forefront for people how
critical a component of our lives and our culture, our arts
actually are.
I would like to raise the question with both Mr. Lynch, Mr.
Daly, and any others who can respond in a quick manner, what do
you think that the diminishing of our arts and support for it
means for us on a global scale? As oftentimes, people forget
that there is something called global competition. And for so
long, the United States had been seen almost in a preeminent
position, even though we interact across cultural and global
lines, we have been very much a part of a movement that the
rest of the world had embraced and then had come around with.
So I would like to hear some feedback with regard to that.
Chairman Miller. One of you is going to get 30 seconds to
answer the question.
Mr. Lynch. Mayors are critically interested in the arts
because they stimulate competition, their city attracting
people from other parts of the world. That is why. And
international cultural diplomacy, visa laws, money at the State
Department all mitigate against that because there is not
enough of those things.
Chairman Miller. Thank you.
Mr. Tonko.
Mr. Tonko. Thank you, Mr. Chair.
The arts build the crescendos in life. Without that, life
is flat.
That being said, in our earliest settings in schools, while
in the New York State legislature, I promoted certification
only for those teachers who can exchange the message of the
arts with students. What can we do to inspire greater
participation in our schools, to grow that group of artists out
there, because we are such a--I think we are devoid at times of
cultivating the arts in our students?
Mr. Bahr. That is a huge, huge, and I love--very passionate
about that. Every kid has to perform, so it is about
encouraging performance and creation of art at a young, young
level. And I think you see that--there are some great programs
that are out there right now that I am sure they can talk
about, and also the NEA sponsors a number of programs that way,
too. But just celebrating the programs that are presently
existing out there in the schools, I am sure you can all think
of a great teacher that you have had in the past who taught
your students or taught you because of those performances.
Now with regards to a Federal answer, I know statewide, we
actually have, in the State of Utah, the arts are huge, and it
is actually part of the Utah State Office of Education to train
every teacher on how to use art in the classroom. It is part of
our core. And it is required as part of the core. It is as
necessary as math and science. And that needs to be done
nationally. But the State of Utah, I think, is leading the
charge that way and see that as a necessary vitamin, as
necessary as the spinach that Mr. Daly shared.
Mr. Daly. I also think that it is important for all of us
on this panel, for politicians and for people in the business
community, to start acknowledging the arts in our daily lives.
I mean, I defy anyone in this room to look around them and not
see something, a tie, these paintings, you know, the curtains
behind the chairman, every one of these things, designed by an
artist. And the chairman himself, a work of art.
These things are tied in with technology and design and
innovation and manufacturing. It is not something else. It is
everywhere we are.
Chairman Miller. Ms. Florino, you wanted to quickly say
something.
Ms. Florino. Yes, very quickly. I think one of the problems
is we have kept the arts in a silo and we haven't seen the
impact on math education and English education. And we know
that there are plenty of studies that prove that, in fact,
musical skills and math skills are very connected.
And I just want to say that I think we as a foundation,
along with many individual donors, have been looking to out-of-
school experiences to make that integration. One example I want
to give you is a family reading partnership program in Ithaca,
New York, which we have funded for a long time and which would
be categorized in many places as a literacy program. But the
director of that program has been insistent that children not
only be given books at birth and given books in early years but
that they be given beautiful books. So the art of those
children's books has been as important in generating their
interest in reading as the words on the page. I think the more
of that we can do, the better we will be in the future.
Chairman Miller. Ms. Woolsey.
Ms. Woolsey. Thank you.
You are a perfect straight woman for me, Ms. Florino. One
of our other efforts here on this committee is elementary,
secondary education and which we will be reauthorizing.
Secretary Dick Riley under Bill Clinton has been very--and many
others--instrumental in our writing art and music back into the
curriculum. And so knowing that, I am going to ask, Mr. Daly
and any of you, when I go to the movies and I see the credits,
because one of our responsibilities here is equality for girls
and women, the ratio of man to woman is just not equal at all.
I want to know why that is. Are we doing something in our
education system? Is NEA doing something that is making it way
more possible for men to survive? Or do you know anything about
that?
Mr. Daly. Well, that is a tough one. I do know that, since
the dawn of drama, men have dominated, you know, theater and
storytelling. And I don't know why that is. Shakespearean plays
are predominantly men. Greek plays are predominantly men. That
is a good and, you know, really valid question. I am not sure
what the answer is.
Ms. Woolsey. Does anybody have----
Mr. Bahr. Refreshing, though, every one of our stage
managers are females. And I think there is a reason for that.
They know how to manage people. They know how to get stuff
done. I don't think it is an accident. Occasionally, you will
have a male stage manager that will sneak in there. I do think
that is something that needs to start down at that lower level,
elementary to say, hey, women, this is something you can do.
This is an industry that you can do, too.
Ms. Woolsey. It isn't because stage managers are underpaid?
Mr. Bahr. Actually, all of our stage managers that work at
that level are equity stage managers; they receive the same
wage.
Mr. Daly. I also should say that my show, ``Private
Practice,'' is women-run. It is an estrogen heaven over there.
Ms. Woolsey. I watch it. I love it.
Mr. Daly. Women are running the whole show over there.
Chairman Miller. They often ask the Speaker of the House
how she can run the Democratic Caucus in the House. She says,
mother of five, grandmother of seven, now, I think, and I use
my mother-of-five voice every now and then. So it seems to
work.
Mr. Platts, any final comment?
Mr. Platts. Again, just my thanks for your hosting the
hearing and all of the great testimony we have received.
Hopefully partnering all together, we will do right by the
arts.
Chairman Miller. Let me thank all of you for your
testimony. We wanted to make and the President wanted to make
and the Speaker wanted to make an important statement about the
arts in the stimulus act, that this is an important part of our
economy. This act was about going to those sectors of our
economy where we could stimulate economic activity, where we
could have a multiplier effect, whether it was construction
jobs or in teaching jobs or in the arts. And that is what we
wanted to be able to do. I think we did it right. Those who
suggested that this was $50 million in pork, those are the same
people that said it was pork to try and repair and keep from
sinking into the Potomac River the Lincoln Memorial and the
Jefferson Memorial, so their value systems kind of coincide and
meet at that point.
This has been a wonderful opening night, if you will. This
is in a series of hearings. We are going to move on to
education. We are going to move on to other aspects of the arts
in our society and the importance of them. And thank you, all
of you, for the work you do with education groups in your areas
and in your cities and your industries.
It is a remarkable thing to watch children be engaged with
the arts. And it is not just studies. I spend a lot of time in
classrooms around the country. I can take to you where the
music and arts have changed the educational performance and the
opportunities for those young children. They say the two best
ways to engage children in fractions is with a ruler in wood
shop and a baton in a music class. And then they will start to
appreciate and understand fractions, which they always seem to
stumble on, as I did. No wonder I was a bad French horn player.
Geez, all these things that get revealed up here sitting as
chairman. This is tough.
But thank you so much for your time. It is valuable. It is
important to us, and we are glad that you shared it with the
committee.
Before adjourning, I have got to make a unanimous consent
request to open the record of last week's hearing on the
importance of early childhood development, later in the arts,
through Tuesday, March 31, 2009, 14 days from the date of the
hearing, during which members may submit extraneous material.
So I don't have to do that in the next hearing, I will
request today, without objection, all members will have 14 days
to submit extraneous material and questions for the hearing
record.
Members may want to submit questions to you. We hope that
you would agree to respond to those questions. And again, thank
you so much for what you do for the arts, for our communities,
for our economy and for this committee with this morning's
hearing and your participation.
With that, the committee will stand adjourned. Behind you,
what is going on is it is a little bit like off-track betting
here. I am trying to see if I can beat the other 208 people who
haven't voted yet. Although the clocks run out, the race is
still on. And because I am old and fast, I think I can still do
it. Thank you very much.
[The statement of Mr. McKeon follows:]
Prepared Statement of Hon. Howard P. ``Buck'' McKeon, Senior Republican
Member, Committee on Education and Labor
Thank you, Chairman Miller and good morning.
One of the benefits of living in a free society is that its
citizens are free to create.
This freedom has given birth to art forms that Americans--and
people around the world--have enjoyed for decades.
Take music: Blues. Country. Jazz. Rock 'n' roll. All of them come
from America.
Then there's Broadway and Hollywood. For more than a century,
American films, plays, musicals and TV shows have been loved and
respected the world over.
Mr. Chairman, we should be proud of our artists, but not just for
their creative achievements. After all, they are in show business. It's
a real industry that has ups and downs like any other.
And what helps support this industry?
In large measure, non-profit and charitable foundations.
When you look beyond the superstars with their mansions and their
millions, you find that many talented working artists across the
country are supported this way.
Experts say the $43 billion that foundations give out help generate
more than a half trillion dollars in household income. It also
contributed some $145 billion in tax revenues.
That's music to a lot of people's ears--especially in these times.
But it seems President Obama wants to stop the music and send the band
home.
The Obama Administration's new budget would limit charitable
deductions in the tax code.
These tax deductions allow--even encourage--people to give to
foundations and charities. Whether they contribute 25 dollars or 25
million, a deduction applies to them.
And foundations need these donations. Usually, individual
contributions are often their sole source of income.
So, if you limit charitable deductions, you limit support of the
arts--and other worthy causes.
It's that simple. But don't take my word for it.
Ask Martin Feldstein. He's an economics professor from Harvard
University. He wrote an op-ed piece in The Washington Post yesterday
about this very subject.
In his article, Feldstein says President Obama's proposal would
effectively transfer $7 billion a year from the nation's charitable
institutions to the federal government.
This transfer, Feldstein says, would basically be a nationwide tax
on charities.
After speaking with Professor Feldstein, go talk to the Association
of Performing Arts Presenters.
In a report out this month, the association says that more than
half of the performing groups with theaters and facilities have failed
to meet their fundraising goals.
As the Obama Administration tinkers with the tax code, it's
important that we, as members of Congress, understand how it affects
non-profits and foundations.
Whether it's supporting a local theater group, homeless shelter or
children's hospital, non-profits and charities play a starring role in
American life.
We should create policies that best increase philanthropy and
private resources available for charities, including support of the
arts.
Finally, we should highlight how private charities are independent,
effective and innovative--just like American artists, including the
ones with us today.
Thank you, Chairman Miller. I yield back.
______
[The statement of Mr. Hodes, submitted by Mr. Miller,
follows:]
Prepared Statement of Hon. Paul W. Hodes, a Representative in Congress
From the State of New Hampshire
I would like to thank Chairman Miller and Ranking Member McKeon for
holding this hearing on the importance of arts and music in the
economy. Investing in the artistic culture of our nation is critical to
preserving the incredible diversity in America and bolstering our
creative economy. The artistic community is an essential part of the
American workforce that creates jobs, generates revenue, and brings
communities together.
From classic poetry to modern opera to reggae, the arts create a
unique space for expression, passion, and education. Artists express
their ideas through new mediums and innovative ways to interact with
the community.
In previous difficult economic times in America, the Federal
Government has recognized the importance of the creative economy, and
supported artists and those who work in the arts. As a part of the New
Deal, the Federal Art Project was established in 1935 and helped to
create over 5,000 jobs for artists, including painters, sculptors,
muralists and graphic artists. The project produced over 225,000 works
of art for the American people across the country. The works can still
be seen in the murals that adorn the walls of United States Post
Offices all over the country.
I strongly supported the $50 million for the National Endowment for
the Arts that was included in the American Recovery and Reinvestment
Act. This funding will help members of the artistic community keep
their jobs and maintain the creative economy. According to the NEA,
nonprofit arts organizations and their audiences generate $166.2
billion in economic activity every year, support 5.7 million jobs, and
return nearly $30 billion in government revenue every year. The NEA
additionally reported that for every $1 billion spent by nonprofit arts
and culture organizations nearly 70,000 full-time-equivalent jobs are
created.
As we work together to help strengthen our economy, encouraging art
and artists can help develop and allow for cultural centers to continue
thriving. In New Hampshire, I worked hard with my community to rebuild
the Capitol Center for the Arts and helped revitalize downtown Concord.
The Capitol Center for the Arts is a performing arts center and has
consistently brought jobs, created an artistic outlet, and has been a
central location for events and programming for the community,
bolstering the Concord economy.
The Capitol Center for the Arts has also faced challenges in this
difficult economy. In addition to cutting their workforce by 10
percent, the Capitol Center has also had a 20 percent drop in ticket
sales this year. As a result, the artists, backstage crews,
restaurants, hotels, and local businesses are also being negatively
affected and losing revenue.
This example is one of many artistic communities around the country
which is feeling the pinch of our economic downturn and only
demonstrates further why it is crucial that we continue to support and
fund the arts. Arts funding encourages local economic growth and
infuses money directly into our communities. As Congress continues to
increase job opportunities in our cities and towns across the country,
it is essential that artists and the creative economy not be
overlooked. Artists not only enrich the cultural heritage of our
country, but also bring Americans together to a shared community and
experience.
I appreciate the attention the Education and Labor Committee has
brought to the important topic of arts and music in our economy. With
the right support, artists can continue to bring jobs and revenue to
our country during these tough economic times.
______
[Additional submissions of Mr. Platts follow:]
------
[Press release of the Association of Performing Arts Presenters]
Field at a Glance: Economic Impact on Arts Presenting Activity and
Attendance Stabilize While Fundraising Is a Concern
Arts Presenters' latest tracking survey* of presenting
organizations and performing arts facilities examined the continuing
impact of the economic downturn on the field of arts presenting during
the month of February 2009. The scope, focus and breadth of this survey
explored the economic impact on activity, ticket sales and fundraising
among `presenter' members of the Association of Performing Arts
Presenters. The response pool for the recent survey includes 173 member
organizations, of which 141 member organizations are presenters with
their own facilities. Our members and the wider field are concerned
with the overall impact the current economic shift has on the
performing arts field's operating environment and the increase in the
difficulty of resolving many of the challenges presenting organizations
had already been facing on the whole. These challenges include audience
erosion, organizational sustainability and capacity building, adaption
of multi-media and new technologies and leadership development.
---------------------------------------------------------------------------
*AMS Planning and Research (Fairfield, CT) conducted this survey
---------------------------------------------------------------------------
Managing Change: During the month of February, approximately 30% of
presenters with facilities made some change to their production
calendars. Over 30% either reduced or eliminated planned productions
and a majority (57%) has reforecasted revenue, while 58% have reduced
some planned expenditures. Nearly 40% of respondents instituted a
hiring freeze; 11% have reduced fulltime headcount; and 14% reduced
part-time headcount.
Fundraising: Among presenters with facilities, over 50% reported
that fundraising efforts have failed to meet budgeted goals in one or
more categories. Corporate philanthropy decline has affected 54% of
this sample population, while 44% indicated they have not been able to
meet individual fundraising goals. Similarly, 40% of those surveyed
were unable to meet financial goals through foundation giving,
government support and/or sponsorship contributions.
Resident Company Programming: In all cases except theater, the
majority of resident organizations in performing arts centers are
reportedly behind their budget forecasts.
Arts Presenters' Member Information:
Representing an industry of more than 7,000 nonprofit and
for-profit organizations, Arts Presenters members hail from all 50
states and 28 countries on six continents across the globe;
Member organizations range from large performing arts
centers in major urban cities, outdoor festivals and rural community-
focused organizations to academic institutions, artists, artist
managers, agents, as well as independent producers, producing and
touring companies;
Our membership includes a range of organizations with
multi-million dollar budgets to individuals who are artists or
performing arts professionals; two-thirds of the membership and wider
presenting field are organizations with small budgets under $1.5
million (the largest segment of which is under $500,000)
Arts Presenters members bring performances to more than 2
million audience-goers each week and spend in excess of $2.5 billion
dollars annually;
Arts Presenters represents a diversity of fields
including: all forms of dance, music, theater, family programming,
puppetry, circus, magic, attractions and performance art.
______
[Additional submissions of Mr. Lynch follow:]
Folk & Traditional Arts Summary
The health of the nation's living cultural heritage is at risk.
This is the message of a February 2009 national survey of the field
of folk arts conducted by the Alliance for California Traditional Arts
and the Fund for Folk Culture. 487 respondents (294 non-profit
organizations and government agencies, 158 individual artists, and 35
independent folk arts specialists) from 44 states provided data leading
to these preliminary conclusions:
1. Overall income is declining and job losses are increasing among
artists, practitioners, cultural organizations, and funders. 74% of all
respondents reported a decrease in overall income for 2008. 86% expect
overall income to decrease in 2009. Organizations reported 7% loss of
full-time jobs in 2008 and expect a 9% loss in 2009 from layoffs and
attrition. Nonprofit organizations with budgets under $100,000 are
experiencing the earliest and greatest losses, and have the least
capacity to respond.
2. A field already stretched thin is becoming increasingly fragile.
50% of the organizations responding have budgets under $100,000; 80%
under $500,000. 38% have no cash reserves, and only 11% report cash
reserves for more than 6 months. 11% have suspended operations, or are
considering suspending operations or merging with another organization.
91% of folk arts programs at government agencies are experiencing
budget cuts or expect cuts, while the demand for their support from
artists and nonprofits has increased sharply.
3. Traditional artists, cultural practitioners, and contractors are
losing income and turning to other income-generating activities. 82% of
artists report a decrease in overall income. 65% report a decreasing
demand for services, the single most important source of income for
artists. 37% are seeking work outside the arts.
4. Revenue and job losses are causing sharp reductions in services
and programs. Job losses in small-budget organizations have been the
most severe, with an estimated loss of over 43% of the work force
between 2008 and 2009. Organizations with budgets over $1 million are
also struggling: 80% report decreases in income in 2008, rising to 90%
in 2009. The top two sources of income for nonprofits are government
and foundation grants. 68% of nonprofits report decreases in 2008 grant
funding; thus far in 2009, 83% report declines. Cost--cutting by
nonprofits is weakening the capacity of organizations: 25% report
reductions in force and 33% reductions in programming.
5. The support network of funding agencies and intermediary
organizations is diminishing. State arts agencies, the primary funding
and support resources for nonprofits involved in the folk arts, are
facing drastic reductions in funding, staff positions and services. 50%
of government and nonprofit funders report an average of 18-20%
declines in their funding from 2008 to 2009; most are expecting
additional cuts in 2010. 4 cite 90-100% cuts. The Fund for Folk
Culture, the only national nonprofit providing dedicated grant support
to the folk and traditional arts (including the Artists Support
Program), is closing its doors after 17 years. Four other private
foundations providing dedicated regional support for individual folk
artists report declines in their support. One of the four is putting
its program on hiatus, pending further review.
Unique Challenges for the Folk Arts
The entire nonprofit arts sector is facing drastic declines, but in
the folk arts, funding and services are often administered by a single
position housed in a state arts agency or nonprofit organization.
Therefore, when that single position is lost--and this is happening
more and more often--an entire state's delivery system of grants and
services is gone. The majority of artists and professionals in folk
arts work in grassroots organizations with budgets under $100,000, and
these smaller organizations have been experiencing the earliest and
greatest negative economic impacts. While many continue to survive, as
they have in the past, with high rates of volunteer support, the survey
indicates that volunteerism rates are down as people increasingly need
to take on extra paid work. Without budget cushions or cash reserves,
these diverse dance and music ensembles, crafts collectives, and
community-based presenters are in the greatest danger of disappearing
unless effective funding interventions are enacted quickly. Local arts
councils and other mainstream arts agencies often do not adequately
serve these grassroots groups, so special strategies will be necessary
to address their needs via the network of public folk arts programs
serving at local, state and national levels.
Submitted by Julia Olin, National Council for the Traditional Arts
(NCTA), on behalf of Preserve America's Cultural Traditions (PACT), a
consortium of major folk arts organizations. To obtain a copy of the
full survey report, contact Amy Kitchener of the Alliance for
California Traditional Arts at 559/237-9813 or [email protected].
______
Impact of the Economic Downturn on the Music Education Workforce and
Concepts for a Positive Response
Observations
1. The workforce of professional music educators in the schools is
subject to the same contracts, and hence the same economic issues, that
face educators in other subjects. This means that shortfalls in local
property taxes (still the primary source of school funding across the
United States) can have a devastating effect on local schools, and
hence the music education workforce. The American Recovery and
Reinvestment Act (ARRA) has devoted significant Federal funds to
ameliorate this problem, but the strength of public schools is still
dependent largely on the strength of local economies in general. The
number of layoffs that have been experienced in the current downturn is
unknown; according to a survey of music supervisors in local districts
conducted by MENC in November/December 2008, the majority of schools
are planning cuts in support and organizational staff for the coming
year. Note that this was an informal web survey, so should not be
understood as limited in accuracy.
2. The workforce of professional music educators in the schools may
be, in some cases, subject to cuts that go beyond those for the
education workforce in general. According to the survey noted above, 60
percent of respondents expect cuts to effect music programs
specifically--and 15 percent expected those cuts to disproportionately
target music programs.
3. Anecdotally, reports from music teachers in the field lead us to
believe that the current environment, while not leading necessarily to
wholesale cuts of entire programs, is leading to cutbacks in services
to children. For example, instructors who were on 11-month contracts,
allowing them to provide summer music experiences to students, are
being told in some cases that they are now limited to 9-month
contracts. This means less income for them and less education for the
students.
4. Some principals are resorting to offering commercially-provided
afterschool experiences in lieu of education during the day. (See the
February 2009 GAO study, ``Access to Arts Education,'' which was based
on an elementary-school sample.) It is unclear whether this method will
allow a significant number of students to gain the benefits of music
education in light of other commitments on their afterschool time; also
unclear is the extent to which this will impact the employment of music
educators.
Concepts for Positive Response
1. Make certain that all local decision-makers understand that ARRA
education monies are applicable to education in music as well as to
other core academic subjects. Strong music programs help schools attain
well-accepted stimulative goals, such as high graduation rates, high
attendance rates, and high levels of educational attainment. This
message needs to be sent as strongly as possible to local decision-
makers, who are faced with difficult fiscal decisions.
2. Require that the status of arts education programs be reported
to parents, so that local communities can make informed decisions about
the provision of arts education to their children.
3. Ensure that all after-school programs (at least those funded by
the Endowment) supplement, but do not supplant, in-school offerings.
This is essential because afterschool programs are not always available
to all students and undermine the statutory ``core academic subject''
status of the arts.
4. Refine, as indicated by data from the Endowment survey currently
in the field, the process for selecting and reporting grants in
education. Expand the research process by looking at best practices in
professional development of arts educators in general.
______
Impact of the Economic Downturn on Museums
Why Museums Are Vital to Communities, Local Economies and Education
Museums employ more than a half million Americans.
U.S. museums spend more than $14.5 billion a year,
spurring local economic growth.
There are 850 million visits per year to American museums,
more than the attendance for all professional sporting events and theme
parks combined (478 million in 2006).
More than one-third (35%) of U.S. museums are always free
to the public, and more than 97% of the rest offer discounts, special
fee schedules, or free admission days.
Museums spend more than $1 billion annually on K-12
educational programming, and receive more than 90 million visits each
year from students in school groups.
Museums tailor educational programs in coordination with
state and local curriculum standards.
Examples of How the Economic Downturn is Affecting Museums
The Pacific Asia Museum in Pasadena will cut its budget by
20% this year--and will have to raise its $7 admission fee and begin
charging for community education programs.
The Bowers Museum in Santa Ana will cut its budget by 10%
by laying off employees and canceling or delaying exhibitions.
To close a $2 million budget gap, the Mystic Seaport is
laying off at least a dozen employees. Nearby Mystic Aquarium is also
laying off 12 people.
The Museum of Florida History has suffered a cut back in
staff and have had to pull back on ``outreach'' programs, some that
previously reached senior centers and retirement homes.
The New York Coalition of Living Museums (CLM), which
provides support to 112 state organizations is facing a potential 55
percent cut in its budget. Living collections are at great risk with
budget cuts, because a living museum cannot simply close a wing.
At the New York Botanical Garden, earned income is down a
whopping 20%. The garden is planning to reduce its full-time workforce
of 480 by 10% and has already eliminated about 30 jobs. The rest will
be achieved through attrition and layoffs, canceled exhibitions and
reduced hours.
29 historic sites in Ohio have had to reduce access by two
days a week.
The Virginia Air & Space Center is seeing record
attendance, but corporate giving and school trips--which were hard hit
by high gas prices earlier this year--have faltered. They will now be
closed on Mondays, restricting public access.
How Museums Are Part of the Solution
The Miami Art Museum is collaborating with Miami-Dade
County schools to offer free school programs and teacher workshops to
meet curricular guidelines. They're also looking for other ways to help
the students get there, as well as ways of getting art to students in
the schools.
The Children's Museum of Indianapolis is expanding its
offerings for under-served (ACCESS pass providing $1 admission for
those on statewide assistance, food stamps, etc.,) in partnership with
city/county and state.
The Detroit Historical Society raised $190,000 at their
annual gala to provide admission, tours and transportation to schools
in the Detroit area that cannot afford school trips.
The Minnesota Children's Museum is working to maintain its
access program which includes admitting \1/3\ of its visitors at free
or reduced admission and partnering with over 50 community groups and
schools.
The Schenectady Museum & Suits-Bueche Planetarium is
offering free memberships to low-income families for each new paid
membership they receive.
The Stuhr Museum and the Hastings Museum competed during
the holidays to collect the most nonperishable food for local pantries
in a food drive called ``Sharing Through the Season.''
The Idaho Museum of Natural History offered free admission
to anyone who brought in a new unwrapped gift for the Toys for Tots
program this past holiday season.
The Please Touch Museum in Philadelphia, PA increased
outreach efforts and focused on helping other organizations whose
funding has been substantially cut. The museum--which has long worked
to serve low-income and minority communities--created new programs and
revamped existing ones to reach even broader portions of those
communities more effectively. Additionally, the museum is working with
both the City of Philadelphia and Free Library of Philadelphia to use
museum programs to meet community needs that will result from the
announced closures of 11 branch libraries in 2009.
______
[Questions for the record and their responses follow:]
U.S. Congress,
2181 Rayburn House Office Building,
Washington, DC, April 1, 2009.
Mr. Tim Daly, Co-President,
The Creative Coalition, New York, NY.
Dear Mr. Daly: Thank you for testifying at the March 26, 2009
hearing of the Committee on Education and Labor on ``The Economic and
Employment Impact of the Arts and Music Industry.''
Representative Jared Polis (D-CO), member of the Early Childhood,
Elementary and Secondary Education Subcommittee, member of the Healthy
Families and Communities Subcommittee and member of the Health,
Employment, Labor and Pensions Subcommittee has asked that you respond
in writing to the following question:
As a result of my life experiences and background, I am a strong
supporter of the arts and have been a longtime advocate of arts
education. My father is an artist and my mother is a poet. In addition
to their inherent intellectual, spiritual and creative contributions
and effects, the arts are clearly an economic engine that strengthens
and revitalizes our communities. The multiplier effect of arts spending
is impressive: every dollar in cultural spending returns nine in
federal income taxes. And every National Endowment for the Arts (NEA)
dollar leverages seven dollars from other sources. In my district, we
have 2,670 arts-related businesses that employ 8,292 people. These
businesses stimulate innovation and play a critical role in building
and sustaining our economy: they employ a creative workforce, spend
money locally, generate revenue for government, attract tourists and
enrich our local culture.
1. What can we do to support artists and workers employed in the
creative industries during these difficult economic times in addition
to increasing funding for NEA? I am particularly interested in job
training initiatives and professional development opportunities that
our committee should consider during the reauthorization of the
Workforce Investment Act.
Please send an electronic version of your written response to the
questions to the Committee staff by close of business on Wednesday,
April 8, 2009--the date on which the hearing record will close. If you
have any questions, please do not hesitate to contact the Committee.
Sincerely,
George Miller, Chairman.
______
Mr. Daly's Responses to Questions for the Record
As a result of my life experiences and background, I am a strong
supporter of the arts and have been a longtime advocate of arts
education. My father is an artist and my mother is a poet. In addition
to their inherent intellectual, spiritual and creative contributions
and effects, the arts are clearly an economic engine that strengthens
and revitalizes our communities. The multiplier effect of arts spending
is impressive: every dollar in cultural spending returns nine in
federal income taxes. And every National Endowment for the Arts (NEA)
dollar leverages seven dollars from other sources. In my district, we
have 2,670 arts-related businesses that employ 8,292 people. These
businesses stimulate innovation and play a critical role in building
and sustaining our economy: they employ a creative workforce, spend
money locally, generate revenue for government, attract tourists and
enrich our local culture.
1. What can we do to support artists and workers employed in the
creative industries during these difficult economic times in addition
to increasing funding for NEA? I am particularly interested in job
training initiatives and professional development opportunities that
our committee should consider during the reauthorization of the
Workforce Investment Act.
Response: As I emphasized in my testimony before the Committee, the
arts is an enormous creator of jobs for American citizens. From what I
know of the Workforce Investment Act, the statute does recognize arts
training as qualified job training. Given that, it seems to me that
there are two distinct areas to consider as the Committee reauthorizes
the Act.
First, with respect to those already working in the arts who may
lose their jobs in this economic downturn, I think it is essential that
federal aid be available to those individuals. In some instances, those
individuals may benefit from further arts training. In other instances,
it may be necessary for those individuals to learn skills outside the
arts to provide for themselves and their families. The Act should
provide both options.
Second, with regard to disadvantaged youth who receive training
under the Act, I believe Congress should encourage training in the
arts. Arts training for younger people can lead to good jobs, and
America will continue to need those with creative talents as well as
those who can work behind the scenes in our arts and entertainment
industries. Many of these jobs require very specialized skills, and it
is essential that we train the next generation if we are to maintain
our preeminent position as a creator of arts and entertainment for the
rest of the world.
______
U.S. Congress,
2181 Rayburn House Office Building,
Washington, DC, April 1, 2009.
Mr. Robert L. Lynch, President and CEO,
Americans for the Arts, Washington, DC.
Dear Mr. Lynch: Thank you for testifying at the March 26, 2009
hearing of the Committee on Education and Labor on ``The Economic and
Employment Impact of the Arts and Music Industry.''
Representative Jared Polis (D-CO), member of the Early Childhood,
Elementary and Secondary Education Subcommittee, member of the Healthy
Families and Communities Subcommittee and member of the Health,
Employment, Labor and Pensions Subcommittee has asked that you respond
in writing to the following question:
As a result of my life experiences and background, I am a strong
supporter of the arts and have been a longtime advocate of arts
education. My father is an artist and my mother is a poet. In addition
to their inherent intellectual, spiritual and creative contributions
and effects, the arts are clearly an economic engine that strengthens
and revitalizes our communities. The multiplier effect of arts spending
is impressive: every dollar in cultural spending returns nine in
federal income taxes. And every National Endowment for the Arts (NEA)
dollar leverages seven dollars from other sources. In my district, we
have 2,670 arts-related businesses that employ 8,292 people. These
businesses stimulate innovation and play a critical role in building
and sustaining our economy: they employ a creative workforce, spend
money locally, generate revenue for government, attract tourists and
enrich our local culture.
1. What can we do to support artists and workers employed in the
creative industries during these difficult economic times in addition
to increasing funding for NEA? I am particularly interested in job
training initiatives and professional development opportunities that
our committee should consider during the reauthorization of the
Workforce Investment Act.
Please send an electronic version of your written response to the
questions to the Committee staff by close of business on Wednesday,
April 8, 2009--the date on which the hearing record will close. If you
have any questions, please do not hesitate to contact the Committee.
Sincerely,
George Miller, Chairman.
______
Mr. Lynch's Responses to Questions for the Record
It was an honor to appear before you and your committee as a
witness on March 26, 2009. As a representative of the non-profit arts
community, I greatly appreciated the opportunity to share with you our
perspective on the status of the arts workforce. I am very pleased that
you have such a significant connection to the arts and appreciate your
follow-up inquiry.
Your question as to how the Congress can support artists and
workers employed in the creative industries beyond the National
Endowment for the Arts (NEA) is a key one to this growing workforce. As
you know, the NEA provides grants to nonprofit arts organizations to
produce and support artistic programs. However, the needs of the
creative workforce, and of the small businesses that provide these
jobs, extend beyond the support that the NEA can give.
During the consideration of the economic recovery package,
Americans for the Arts developed a number of policy recommendations for
Congress (attached) that would provide assistance to the creative
workforce. I'd like to highlight the following one in response to your
question:
Make Human Capital Investments in Arts Job Training The U.S.
Department of Labor's Adult, Dislocated Worker and Youth Program is
currently administered by the states to ``help up-skill workers and
provide employment services and support that will increase worker
employability and earning power.'' We support that effort with an
interest in expanding the services available to workers in the creative
sector and through arts institutions that can provide professional
development training.
Programs such as Gallery 37, managed by the Chicago Mayor's office
but funded through the Workforce Investment Act, utilize the arts as an
arena in which future workplace skills are taught by professional
artists and acquired by the program recipients. Gallery 37 is an award-
winning public works program that has been replicated around the
country. It is an example of a progressive way to utilize workforce
funds for training new skills and providing immediate benefits to
localities and downtowns as well.
As the national workforce becomes more focused on innovation,
employees with skills in creativity will become more in need. Federal
labor programs that can adapt to this change in workforce skills will
better assist the communities they serve. Future consideration of the
Workforce Investment Act should direct state and local workforce
investment boards to pursue guidance that results in creative workforce
training programs like Gallery 37.
I hope you will keep Americans for the Arts in mind as you gather
information and consider policy solutions towards the creative
industries. We are more than willing to help work on this. Thank you
for your leadership on this issue.
Folk and Traditional Arts Summary
The arts mean jobs and tremendous economic activity in America and
must be part of our country's economic recovery. Nationally, 100,000
nonprofit arts organizations are members of the business community--
employing people locally, purchasing goods and services within the
community, and involved in the marketing and promotion of their cities
and communities. Nonprofit arts organizations and their audiences
generate $166.2 billion in economic activity every year, support 5.7
million jobs, and return nearly $30 billion in government revenue every
year--proving that the arts are an economic driver in their communities
that support jobs and generate government revenue. Every $1 billion in
spending by nonprofit arts and culture organizations--and their
audiences--results in almost 70,000 fulltimeequivalent jobs.
By investing in the arts, we're supporting an industry that is
built on innovation and creativity, economic development, and the
revitalization of America's communities and downtowns. When we increase
investment in the arts, we are generating tax revenues, jobs, and a
creativitybased 21st century competitive economy.
With these facts in hand, Americans for the Arts calls on
Presidentelect Obama and Congress to support the following nine federal
programs and proposals in their consideration of an economic recovery
package.
(1) Include Artists in Proposal for Unemployment & Healthcare Benefits
for PartTime Employees
The creative economy relies heavily on professionals that make a
living from nontraditional employment structures. Artists are
disproportionately selfemployed, and many work multiple jobs in
volatile, episodic patterns; the ability to have access to unemployment
insurance and healthcare benefits would offer critical assistance to
this population.
(2) Boost Arts Projects in Community Development Block Grants (CDBG)
Provided by the U.S. Department of Housing & Urban Development
(HUD) to mayors' community development offices, the CDBG program
provides ``bricks & mortar'' funding for a variety of state and
municipal projects and is a primary government source for local arts
institutions of all disciplines. Further streamlining of the
application process would allow grant applicants to work more
effectively with their mayor's community development office to better
prioritize cultural projects. We join with the U.S. Conference of
Mayors in their call for $20 billion in CDBG funding and seek at least
$2 billion in artsspecific projects to modernize, rehabilitate, and
construct our nation's cultural facilities.
(3) Provide Economic Recovery Support to Federal Cultural Agencies
Americans for the Arts calls for increasing FY 2010 annual support
to the National Endowment for the Arts (NEA) to $200 million, a similar
amount for the National Endowment for the Humanities, and IMLS to $269
million. All three agencies should receive economic recovery emergency
funding to increase current grantee projects.
In terms of the economic recovery proposal, the NEA should be
allocated at least $1 billion for formula grants, based on population,
to be administered through its current Local Arts Agency program to
designated local arts agencies. LAAs are a unit of city or county
government or designated to operate on behalf of its local government
as defined in federal statute. Grants of this kind would be for the
purposes of producing cultural and artistic programming and public art
initiatives in 2009. These grants awarded to LAAs would a) speedily
disburse local funding to all the arts disciplines; b) employ artists
and the cultural workforce and c) serve to increase access to the arts
in order to leverage spending by audiences.
(4) Include Cultural Planning Through Economic Development
Administration (EDA)
Through the U.S. Department of Commerce, the Economic Development
Administration's Research, National, and Local Technical Assistance
grant programs are essential to a community's thoughtful planning and
economic development investment process. These programs should meet the
increasing need for local cultural district planning and assisting
municipalities with developing the creative economy in their
communities.
(5) Increase Cultural Facilities Support in Rural Development Program
(USDA)
Through the U.S. Department of Agriculture, the Housing and
Community Facilities program funds the construction, rehabilitation, or
acquisition of ``essential facilities'' which includes cultural
facilities. Since its inception, about nine percent of the Community
Facilities funding has been directed to education and cultural
facilities--an amount that should be increased to address the
infrastructure needs of these rural cultural communities.
(6) Link Transportation Enhancements (TE Program) With State Arts
Agencies
The U.S. Department of Transportation's Transportation Enhancement
program funds 12 general transportation enhancement activities
including pedestrian and bicycle facilities, historic preservation, and
public art projects. This program, administered by state transportation
departments, should receive an increase in funding and all projects
should be developed and implemented in coordination with the state arts
agency.
(7) Create the Artist Corps
PresidentElect Obama's proposal of an ``Artists Corps of young
artists trained to work in lowincome schools and their communities'' is
a proven strategy to provide jobs to artists seeking to share their
skills, provide mentoring, and professional development to students and
individuals seeking work in the creative economy. This proposal should
be acted upon quickly to establish the Artists Corps as a national
training initiative.
(8) Make Human Capital Investments in Arts Job Training
The National Governor's Association (NGA) has proposed a $1.5
billion increase to the U.S. Department of Labor's Adult, Dislocated
Worker and Youth Programs and WagnerPeyser Act administered by the
states to ``help upskill workers and provide employment services and
supports that will increase worker employability and earning power.''
We support that effort with an interest in expanding the services
available to workers in the creative sector and through arts
institutions that can provide professional development training.
(9) Appoint a SeniorLevel Administration Official with Arts Portfolio
The president should name a seniorlevel administration official in
the Executive Office of the President to coordinate arts and cultural
policy, guiding initiatives from federal agencies responsible for
tourism, education, economic development, cultural exchange,
intellectual property policy, broadband access, and other artsrelated
areas. The U.S. Conference of Mayors and others have made similar
proposals.
______
U.S. Congress,
2181 Rayburn House Office Building,
Washington, DC, April 1, 2009.
Mr. Michael Bahr, Education Director,
Utah Shakespearean Festival, Cedar City, UT.
Dear Mr. Bahr: Thank you for testifying at the March 26, 2009
hearing of the Committee on Education and Labor on ``The Economic and
Employment Impact of the Arts and Music Industry.''
Representative Jared Polis (D-CO), member of the Early Childhood,
Elementary and Secondary Education Subcommittee, member of the Healthy
Families and Communities Subcommittee and member of the Health,
Employment, Labor and Pensions Subcommittee has asked that you respond
in writing to the following question:
As a result of my life experiences and background, I am a strong
supporter of the arts and have been a longtime advocate of arts
education. My father is an artist and my mother is a poet. In addition
to their inherent intellectual, spiritual and creative contributions
and effects, the arts are clearly an economic engine that strengthens
and revitalizes our communities. The multiplier effect of arts spending
is impressive: every dollar in cultural spending returns nine in
federal income taxes. And every National Endowment for the Arts (NEA)
dollar leverages seven dollars from other sources. In my district, we
have 2,670 arts-related businesses that employ 8,292 people. These
businesses stimulate innovation and play a critical role in building
and sustaining our economy: they employ a creative workforce, spend
money locally, generate revenue for government, attract tourists and
enrich our local culture.
1. What can we do to support artists and workers employed in the
creative industries during these difficult economic times in addition
to increasing funding for NEA? I am particularly interested in job
training initiatives and professional development opportunities that
our committee should consider during the reauthorization of the
Workforce Investment Act.
Please send an electronic version of your written response to the
questions to the Committee staff by close of business on Wednesday,
April 8, 2009--the date on which the hearing record will close. If you
have any questions, please do not hesitate to contact the Committee.
Sincerely,
George Miller, Chairman.
______
[Whereupon, at 11:40 a.m., the committee was adjourned.]