03.26.09

Economic Crisis is Having Catastrophic Effects on the Arts and Music, Witnesses Tell House Panel

WASHINGTON, DC – Communities across the country are suffering as arts and music organizations struggle with declining budgets, job losses and other effects of the economic crisis, witnesses told the House Education and Labor Committee today.
 The hearing is the first in a series the Committee will hold this spring as Congress renews its focus on how the economy is impacting the arts and music and the role these sectors play in local communities, schools, and the broader economy.

“Arts and music organizations are facing tough realities, which has a multiplier effect on workers and communities who rely on these sectors to create jobs and generate local revenue,” said U.S. Rep. George Miller (D-CA), chairman of the committee. “These are industries that can help breathe new life into communities, towns and cities, spur economic growth and help us build a stronger America.”


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Witnesses explained that non-profit organizations, theatres, symphonies, orchestras, and arts and music festivals are all facing extreme job losses, in fields ranging from actors and musicians to accountants, builders, seamstresses, janitorial staff, plumbers and more.

The arts and music sectors generate critical benefits for our nation’s economy. Last year, the non-profit arts and culture industries generated over $166 billion, supported 5.7 million jobs and over $104 billion in household income last year, according to a recent study by the Americans for the Arts.

“They create a hub of economic activity that helps an area become an appealing place to live, visit and conduct business,” said U.S. Rep. Louise Slaughter (D-NY), co-chair of the Congressional Arts Caucus. “These industries also create jobs, attract investments, generate tax revenues and stimulate local economies through tourism and urban renewal.”

The Utah Shakespearean Festival, for example, generates up to $35 million in local revenue through lodging, dining and other local activities. In 2009, sales are already 20 percent behind last year’s sales, three full time and 55 seasonal positions were cut, and the summer and fall seasons were reduced by one week.

“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,” said Michael Bahr, education director for the Festival. “It hires an educated and talented workforce. It fills our hotels, our restaurants, our shops. It provides positive economic impact far beyond the theatre.”

In Miami-Dade County, more than 1,000 arts businesses help to employ 23,000 workers, 12 million attendees spend more than half a billion dollars in ticket purchases. The economic crisis has hit the area particularly hard, forcing the local government to make budget cuts. Michael Spring, director of  Miami-Dade County’ s Department of Cultural Affairs testified that while the budget was cut by more than $200 million, his department saw no reduction.

“Our local elected officials, our business leaders and the public understand that a community’s culture is a cornerstone of its economic vitality,” Spring argued.

Tim Daly, actor and co-president of the Creative Coalition, discussed the economic impact the entertainment industry can have on a community. On his show, Private Practice, it takes nine days to film one-hour long episode. This one episode employs approximately 200 people a day, spending $20,000 on food from local caterers, up to $40,000 on clothes and costumes, $2,500 on dry cleaning, and $15,000 on furniture for the sets.

“We must take steps to ensure the continued vibrancy of our arts and entertainment,” said Daly.  “We have to invest in the future.”

Daly suggested three investments – including federal support, arts programs in schools and a new type of discussion about the arts.

Bruce Ridge, chairman of the International Conference of Symphony and Opera Musicians, highlighted several orchestras across the country, including Baltimore, Santa Clarita, Honolulu and Cincinnati who are facing increasing financial challenges, many of whom are closing their doors, noting “for musicians, the losses are immeasurable.”

To view witness testimonies, click here.