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Economic Impact of the Arts in...
SOUTH CAROLINA
T
cal years 2001 and 2005); reducing the
OVERVIEW number of leased cars from four to
he South Carolina Arts Commission’s three; replacing a quarterly newsletter
(SCAC) mission includes a commitment with a less expensive mailed piece; sub-
stituting various print pieces with elec-
to excellence across the spectrum of the tronic versions; and switching cellular
state’s cultures and forms of expression phone services for a savings of $160
alongside developing a thriving arts en- per month. The Commission’s reports
to the General Assembly during several
vironment, considered essential to the of the review period years noted that
quality of life, education, and economic the reduction in direct staff interaction
vitality of all South Carolinians.1 The with the agency’s constituents, such as
grantees and grant applicants (on ac-
SCAC, the state’s principal arts agency, was created as an agency count of the travel restrictions), had
of state government in 1967 to develop and implement a com- the potential to cause a decline—in
prehensive statewide program to promote the arts and to assure the long term—in the high customer
satisfaction rate the agency had previ-
their continued excellence across the state. ously secured.
As in the case of practically every lina suffered a precipitous 43 percent
other state, the SCAC’s major source plunge. Even though in each year after ECONOMIC IMPACT
of funding is tax dollars appropriated fiscal year 2002, the level of cutbacks The SCAC has been very pro-ac-
by the South Carolina General Assem- declined, cumulatively they amounted tive in stressing how the arts industry
bly. In addition, the SCAC receives to a drop from $5.4 million in fiscal changes lives one-by-one, family-to-
federal government grants adminis- year 2001 to $3.1 million in fiscal year family, eventually spreading across
tered by the National Endowment for 2005. These decreases included a 17 communities, schools and the entire
the Arts (NEA) and funds raised from percent reduction, the highest level state. To document this trend, the
private foundations and community between fiscal years 2001 and 2002 SCAC commissioned the University
sponsors. The SCAC is governed by (from $5.4 million to $4.5 million), 15 of South Carolina’s Moore School of
nine volunteer citizen commissioners percent between fiscal years 2002 and Business to carry out a study assess-
appointed for three-year terms by the 2003 ($4.5 million to $3.8 million), and ing the economic impact of the cul-
governor and confirmed by the state 11 percent and then 9 percent between tural industry on the state.3 This study,
Senate. The commissioners, assisted fiscal years 2003, 2004 and 2005 ($3.8 released in April 2002, once again
by a staff of 19 (as of January 2006), million to $3.4 million to $3.1 million). clearly demonstrates the tremendous
attend grant panel meetings and con- In responding to these sharp economic magnitude of the arts and
vene regularly to take action on fund- funding reductions during the five- cultural industry on the state. As in the
ing and formulating policy on the arts year review period, the SCAC was case of the studies in so many other
in South Carolina. forced to implement a number of states, even though the results are
cost-cutting measures while continu- several years old, the sheer enormity
FUNDING FOR THE ing to provide quality service.2 Some of their economic impact is in no way
of these measures introduced during diluted; in fact, it is possible to com-
ARTS the review period included eliminating fortably forecast that these economic
State funding for the arts in South selected programs and services; slash- impacts in the ensuing years actually
Carolina came under tremendous pres- ing most other programs; reducing the have increased to even greater heights
sure during the review period given the Commission’s workforce; instituting from the numbers reported in the past
debilitating effects of the state fiscal a voluntary and mandatory furlough few years.
downturn and the need to divert funds program; holding positions vacant; In developing a model for the
to other essential programs. In fact, maximizing cost savings and efficien- cultural industry, the University of
between fiscal years 2001 and 2005, cies through a reduction in travel costs South Carolina study views the cultural
funding for the arts in South Caro- by more than 30 percent (between fis- industry in South Carolina as compris-
The Economic Impact of the Arts in the South | 103
Hubbard Street Dance Chicago perform Rooster by Christopher Bruce at the 2005 Spoleto Festival. Photograph by Todd Rosenberg,
courtesy the Spoleto Festival USA.
ing three major activities: heritage and of the triad, the study calculated the lina. Specifically, the cultural industry
culture (museums, historical sites and economic impact of the following: supports $686.7 million in labor earn-
parks, libraries, K-12 arts education Spoleto Festival USA (the major in- ings, 29,348 jobs, and $1.8 billion in
in the state’s schools); performance ternational festival held annually in output. In addition, the cultural indus-
and exhibition activities (perform- Charleston that ranks among the most try returns more than $44 million a year
ers and performing groups, galleries, visible aspects of the cultural industry to the state in sales and income taxes.4
filmmaking); and the individual artist in the state) and Piccolo Spoleto, the While the earnings impact amounts to
(ranging from a craftsperson’s artwork Southeastern Wildlife Exposition, 1.3 percent of total earnings statewide,
featured locally to an artist performing other cultural and arts festivals, artists, the employment impact represents 1.6
in the international arena). The study arts education, cultural organizations percent of total non-farm employ-
then sought to calculate the economic and the film industry. ment. In other words, of every $100
impacts flowing both to and from this The study documented that rel- of wages and salaries earned in South
triad of activities along with the nu- evance of the arts as a vital cog in the Carolina, $1.30 can be linked to the
merous businesses that both sustain complex South Carolina economic en- cultural industry. Similarly, of every
elements of the triad and also survive gine is supported by the magnitude of 100 jobs in the state, 1.6 are directly or
because of the triad’s elements. In its impacts on wages and salaries, jobs, indirectly linked to the arts. Moreover,
further breaking down the elements and economic output in South Caro- of every 200 jobs in the Charleston
metropolitan area, one exists exclu-
Table 23 sively because of the outside money
brought in by the Spoleto Festival USA
Economic Impact of the Cultural Industry in and Piccolo Spoleto. Table 23 encap-
South Carolina sulates some of these key measures in
laying out the economic impact of the
Earnings Jobs Output cultural industry in the state.
Artists $23,043,234 870 $120,549,386 In addition, South Carolina art-
Arts Education $98,398,308 3,712 $194,333,580 ists spent a total of $35.8 million on
Festivals* $27,719,877 1,044 $105,444,058
supplies and services across the state.
Based on ensuing multiplier effects,
Film Industry $29,454,420 1,491 $74,521,536
these artists’ activities generated a
Cultural Organizations $148,998,123 5,639 $424,936,314 total of $23 million in earnings, 870
For-profit Organizations $329,910,001 14,963 $925,471,851
jobs, and $120.5 million of economic
output. Then, festivals across the
Spoleto USA/Piccolo $29,200,138 1,628 $67,799,479 state, excluding Spoleto USA, Piccolo
TOTAL $686,724,151 29,348 $1,913,056,654 Spoleto, and the Southeastern Wildlife
Exposition, spent a total of $40 mil-
Source: University of South Carolina, April 2002
lion in South Carolina. Not only did
* Excludes Spoleto, Piccolo Spoleto, and the Southeastern Wildlife Exposition
104 | The Economic Impact of the Arts in the South
this spending result in a total of $27.7 Table 24
million in labor earnings, it generated
1,044 jobs and $105.4 million in out- Details on SCAC’s Grants
put. Fiscal Years 2002 through 2005
The annual Spoleto Festival USA
and Piccolo Spoleto in Charleston are Year Amount Number of Number of
perhaps the most renowned facets of Grantees Counties
the thriving arts scene in the state. FY 2002 $2,244,271 398 42
Spoleto Festival USA has firmly estab- FY 2003 $2,185,504 368 42
lished itself as one of the world’s ma- FY 2004 $2,031,780 347 42
jor arts festivals, presenting 100 world FY 2005 $1,911,513 311 43
premieres and 93 American premieres
since its inception in 1977.5 For 17 days Source: South Carolina Arts Commission, FY 2002 through 2005 Agency Accountability
and nights each spring, Spoleto Festival Reports
USA fills Charleston’s historic theaters,
churches and outdoor spaces with over supported a total of $149 million in Beyond the 2002 economic im-
120 performances by renowned artists earnings, 5,639 jobs, and $424.9 mil- pact study, the SCAC also listed details
as well as emerging performers in disci- lion in economic output. on the grants it provided to various art-
plines ranging from opera, theater, mu- In a trend that is being replicated ists and organizations during the review
sic theater, dance, and chamber, sym- in a vast number of states across the period.6 These grants are the crucial
phonic, choral, and jazz music, as well country, the motion picture industry lifeline to a number of these artists and
as the visual arts. One of the Festival’s also has been blossoming in South arts organizations and trigger a con-
tenets is to provide young performers Carolina in recent years. According siderably greater amount of economic
the opportunity to work with veteran to the University of South Carolina activity than the initial disbursements.
directors, designers and performers. study, the motion picture industry in Table 24 lists this grant information for
The Piccolo Spoleto event, launched South Carolina spent a total of $49.1 fiscal years 2002 through 2005.
in 1979 by the city of Charleston, million in the state. A majority of these The impacts of the cutbacks in
complements the main Spoleto Festival expenditures represents new money to state appropriations are quickly appar-
USA by providing a venue for local and the state, that is, money spent by non- ent from reviewing the data in Table
regional artists. According to the 2002 residents. (Even in the instance of the 24, as not only did the number of
study, an estimated 153,500 visitors at- Spoleto Festival USA, the money spent grantees decline each year from fiscal
tended the two events in 2000. These is a true net addition to the South Car- year 2002 to fiscal year 2005, the total
attendees spent a total of $43.1 million olina—and more specifically, Charles- amount allocated diminished too. This
in the Charleston area. The largest ton—economy since a bulk of it was is reflected in the earlier section that
expenditures were on lodging, food money spent by people living outside elaborated trends from the state leg-
and beverage, and tickets to the per- the city). Overall, these direct expen- islative appropriations to the SCAC.
formances. This spending supported a ditures support a total of $29.5 million Specifically, the amount allocated as
total of $29.2 million in labor earnings, in wages and salaries, 1,491 jobs, and grants declined from $2.2 million in
the equivalent of 1,628 full-time jobs $74.5 million in output. fiscal year 2002, to $1.9 million in fis-
and $67.8 million in economic output. Finally, for the first time in the cal year 2005; similarly, the number of
According to the South Caro- University of South Carolina’s series grantees dropped from 398 to 311.
lina Department of Education, an of cultural industry impact studies (the Another brand new event that
estimated $75 million is spent on arts first was done in 1988), a separate sur- falls under the category of stimulat-
education for kindergartners through vey was sent to elicit information from ing economic activity across the state
12th graders in public schools. This the for-profit segment of the cultural is the International Arts Festival of
expenditure by the schools, primarily industry. Among these businesses are Greenville, further evidence of an
in the form of salaries, supports a to- art galleries, craft suppliers, dance in- arts-related event promoting positive
tal of $98.4 million in earnings, 3,712 structors, and photographers. Based economic flows. In its 2005 inaugural
jobs, and $194.3 million in output. on these survey results, a total of 9,126 year, the Festival attracted artists from
Then, the study solicited information jobs was directly linked to the for- 22 states from as far away as Colorado
from a variety of cultural organizations profit arts-related firms. Based on the and Wisconsin who featured ceramics,
including local arts councils, historical level of business activity and employ- photographs, jewelry, rugs, paintings,
sites and associations, libraries, muse- ment at these firms, the study noted a portraits and other forms of art. The
ums, parks, and other organizations. cumulative impact of $329.9 million in Festival’s organizers believe they have
These groups had total expenditures earnings, 14,963 jobs, and $925.5 mil- sufficient momentum and interest to
of $159.9 million in South Carolina. lion worth of economic output, a most continue it annually.
The operations of these organizations significant level indeed.
The Economic Impact of the Arts in the South | 105
the governor’s support to eligible groups or individuals would
in promoting a pilot pivot on the particular project expand-
program to stimulate ing and marketing existing cultural
interest in cultural tour- offerings to increase cultural tourism;
ism projects across the developing and marketing new cultural
state.7 The push to ag- offerings to attract cultural tourists;
gressively promote cul- building or enhancing partnerships
tural tourism in South that increase in-state cultural tourism;
Carolina surfaced from attracting new cultural tourists (partic-
the fact that the state ularly visitors from outside the state);
did not make the list of and collecting data to support a cultur-
top 10 cultural tourism al tourism project. Another important
destination states, even fact stressed by the initiative included
though there were five the numerous partnerships such as
other Southern states links between, but not limited to, cul-
on this list. In securing ture, tourism, and business organiza-
the governor’s atten- tions; and/or public and private sector
tion beyond the usual organizations, and/or local, state and
budgetary assistance, federal agencies/municipalities. The
the SCAC director amount provided as grant money could
asked the governor to be as much as $10,000 with a one-to-
designate a staff liaison one match between the grant applicant
for cultural tourism. and the SCAC.
The responsibilities of
this staff liaison would BUILDING BOOM
include coordinating A number of South Carolina
efforts between the performing cultural organizations con-
SCAC and other cul- tinue to draw throngs of visitors and
tural agencies/ tourism arts patrons to their events. One of
officials to entice more the more notable organizations in this
Spoleto’s Artistic Director for Choral Activities Joseph cultural tourists to the connection is the Charleston Stage,
Flummerfelt leads the Westminster Choir at the 2005 Spoleto state and to facilitate founded by Playwright Julian Wiles in
Festival USA. Photo by: William Struhs, courtesy the Spoleto a continuous dialogue 1978, currently South Carolina’s larg-
Festival USA. between all the dif- est professional theater company that
ferent groups. This, is in residence at the Historic Dock
the director stressed, Street Theater.9 In addition to having
CULTURAL HERITAGE would ensure that the arts and culture presented over 150 productions at the
in South Carolina are used to their full-
TOURISM est potential in promoting the quality
theater, Charleston Stage has played to
Like so many other states, South a collective audience of more than 1
of life and economic growth of those million patrons. The theater company
Carolina, led by the SCAC, is focused
residing throughout the state. also employs 20 full-time staff, guest
on capitalizing on its many cultural and
In order to accomplish the goal of artists, scores of actors, dancers, sing-
heritage sites to promote tourism and,
promoting cultural tourism initiatives ers and musicians and Theatre Wings
thereby, generate interest in these sites
across the state, the SCAC recently High School Apprentices. In addition,
(and related activities) as well as create
solicited grant applications from artis- arts education continues to be a crucial
additional economic opportunities.
tically based projects that would serve outreach activity of the Charleston
Toward this effect, in an address to
to enhance the state’s capacity in the Stage, and the theater company offers
Governor Sanford about the SCAC’s
cultural tourism area. 8 The overrid- a number of educational services to
activities, the SCAC’s director sought
ing objective in providing grant monies schools throughout the state.
106 | The Economic Impact of the Arts in the South
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