The arts provide more than pretty watercolors, booming orchestras and the fuzzy concept called quality of life -- they also pump $341.6 million into Allegheny County's economy every year and support the equivalent of 10,192 full-time jobs.
That's according to an economic impact study released yesterday by the Greater Pittsburgh Arts Council. Its findings come at a time when nonprofit arts groups locally and across the country are struggling to pay their bills and woo more arts patrons willing to pay for the privilege.
![]() |
|
The Arts: expenditures, jobs Click image for larger version. |
"The arts are a great investment and we encourage individuals -- people who care about the arts -- to make a personal contribution to an arts organization they care about," said Mitch Swain of the arts council. "We underperform in that area."
The arts council compiled the study on nonprofit arts and cultural groups in conjunction with a national arts lobby called Americans for the Arts. Allegheny County was one of 156 regions participating nationwide.
The county, with a population of 1.2 million, was grouped with 15 other regions of 1 million or more residents (not including New York or Los Angeles). Across its study group, which included such areas as Philadelphia; St. Louis; Columbus, Ohio; and Phoenix; Allegheny County did a little bit better than the median of $267 million in total spending and 8,010 jobs.
The arts council, which based its findings on budget materials and audience surveys from 85 arts organizations countywide, said its $341.6 million spending estimate came from $230.7 million in spending by arts groups in fiscal 2005 and an estimated $110.9 million by audiences.
Local arts groups will use the report to lobby for increased funding from governments, private foundations and individuals, and to underscore the power of "cultural tourism" in the area.
More than 5 million people go to county cultural events annually, the study said. It estimated 74 percent of Allegheny County arts audiences live in the county, spending $17.45 per-person (not including admission) at arts events on such things as parking, food and trinkets.
The other 26 percent traveling to events from outside the county -- the cultural tourist -- typically spends almost twice that, at $34.49 per person, the study said.
The bad news for the Pittsburgh area is that comparable regions draw a higher percentage of visitors from out of town, 33 percent, who spend more, too -- a median of $43.21 per person. "That's a call to action for arts groups," said Harold Miller, a Downtown-based management and policy consultant.
The numbers are estimates based on economic formulas: "Total economic impact" represents all operating and capital expenditures by arts organizations, and arts spending by audiences, multiplied by formulas estimating how dollars are spent and respent throughout the region. The audience spending figures are augmented by surveys.
The "direct economic impact" from the arts -- a figure that does not use those multipliers -- is estimated at $230.7 million and an equivalent 2,338 jobs annually. The previous countywide arts impact study by the Pittsburgh Cultural Trust in 1998, while structured a bit differently, showed direct arts spending of $170 million countywide and 2,255 equivalent full-time jobs.
Economic impact studies can be notorious for fudging numbers, but this study seems to be fairly constructed, according to local experts who reviewed it.
Chris Briem, a regional economist at Pitt's University Center for Social and Urban Research, said he did not "see anything screwy" in the report and that it "captures the economic impact of the industry fairly."
Kevin Stolarick, an assistant professor of information systems at Carnegie Mellon and chief discovery officer for the consulting firm Catalytix , said the data also seemed fair but needed to be put in some perspective. While $341.6 million in spending may seem like a lot, he noted educators in southwestern Pennsylvania make $2.4 billion in salaries alone, according to the Bureau of Labor Statistics.
"That's seven times as much as the total impact from the arts. That's not to say they're not important. But when you look at the numbers relatively, $300 million really isn't that much," he said.
For further perspective, the city of Pittsburgh's operating budget -- paying for police officers, garbage pickup and other city services -- is $419 million.
The report also shows that the $230.7 million direct spending by Allegheny County arts groups -- mostly on salaries, administrative costs and facilities -- is almost double the median spending of $123 million by arts organizations in its study group.
Mr. Swain, of the arts council, chalked up the high overhead costs to an above-average number of arts groups, and budgets for world-class organizations such as the Pittsburgh Symphony Orchestra. "The breadth, variety and depth of arts and cultural offerings here is so extensive, compared to similar cities. There is just more here," he said.
Nationwide study results may be viewed at www.artsusa.org/