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Governor proposes budget increase for the Arts
New study shows economic impact of the Arts tops $1.2 billion
BALTIMORE, MD  Wed, Jan 16, 2008 

Demonstrating his continued commitment to Maryland’s Arts community, Governor Martin O’Malley today announced that he has proposed a $16.475 million operating budget for the Maryland State Arts Council, an 8.4 percent increase from last fiscal year. The additional funding, which is included in the Governor’s FY 09 budget released today, would be used to expand access to the Arts, audience development, awareness and artistic excellence for all Marylanders.

The proposed funds would provide additional support to Maryland’s nonprofit Arts organizations and programs that receive grants from the Arts Council, which returned a record-breaking $1.2 billion for Maryland’s economy in FY 2007, according to a study released today by the Maryland Department of Business and Economic Development (DBED). The data, which is part of an annual economic impact study generated by DBED, also reported that nearly 14 million people attended arts events that received support from the Arts Council.

 “The Arts are not only an important economic generator in Maryland, they are vital to maintaining our outstanding quality of life and the education of our children,” said Governor Martin O’Malley. “This study confirms what we already knew, that the arts play a tremendous role in the lives of every Marylander. When we invest in the arts, we invest in our communities, our businesses and our citizens.”

Statistics for the study were drawn from 228 Maryland organizations that produce or present the Arts and receive grants from the MSAC for ongoing support of their operations and programs. The analysis did not include the economic impact of for profit Arts organizations, galleries or businesses, nor the activities of self employed or individual visual, performing and literary artists.

Other noteworthy highlights from the study include:

  • $43.4 million in state and local taxes was generated by reporting organizations, up from $37.3 million.
  • An increase of 17 percent in full time jobs (administrators and artists) from 12,955 in 2006 to 15,184 in 2007.
  • Direct spending by audiences and organizations on goods and services totaled $556 million.
  • Surveyed organizations had a combined gross payroll of $418 million, up from $372 million the previous year.
  • In addition, arts organizations reported a total income of $161 million in 2007. About 30 percent, or $50 million, was earned from various program activities including ticket sales, exhibitor’s fees, contracts and memberships. Cash contributions and revenues from fundraising events totaled 26 percent, or $41 million, of total earnings.
  • Every $1 of direct spending of this arts industry generates a total $2.13 in expenditures on goods and services in Maryland, three cents more on every dollar than in FY 2006.

“As these indicators reveal, Governor O’Malley’s support for Maryland’s Arts organizations helps build a robust cultural community,” said DBED Secretary David Edgerley. “The State’s investment supports communities like Silver Spring, Cambridge, Cumberland and Frederick, where thriving Arts organizations are continuing to attract significant private sector investments.” 

The study analyzed the State regionally, dividing it into six regions:

  • Maryland’s Central region, comprised of Baltimore City and Anne Arundel, Baltimore, Carroll, Cecil, Harford and Howard counties, generated $704 million in economic impact, and provided 9,112 arts-related jobs.
  • The Capital Region, which includes Frederick, Montgomery and Prince George’s counties, generated $350 million and provided 4,379 jobs.
  • The remainder of the State, which is divided into Western Maryland, Southern Maryland, the Upper Eastern Shore and the Lower Eastern Shore, contributed a combined $131 million and provided a total of 1,686 Arts-related jobs.

“Within the economic development field, the arts are frequently hailed as the ‘quality of life’ asset we market to attract, retain and expand businesses,” added Theresa Colvin, Executive Director of the Maryland State Arts Council, adding, “a vibrant arts community is a potent and powerful quality of life asset and is a critical component of our overall economic development strategy.”  

An agency of the Maryland Department of Business and Economic development, the Arts Council is dedicated to cultivating a vibrant cultural community where the arts thrive by encouraging and investing in the advancement of the arts for the people of Maryland.  To review the complete study, “Economic Impact of the Arts in Maryland: 2007 Update,” or for more information on the Maryland State Arts Council, visit the MSAC website at www.msac.org or call (410) 767-6555 or TDD/TTY (410) 333-4519.