Title: The economic impact of New Jersey's nonprofit arts and associated audience spending on the state's economy - 2009.

Author(s): Catherine Lanier, Eugene Spruck

Organisation(s): National Endowment for the Arts, New Jersey State Council on the Arts

Categories: Arts, culture and the economy

Objectives: To quantify the way in which spending in the arts supports a broad range of important segments of the economy in the state of New Jersey.

Key Findings: The nonprofit arts in New Jersey spent USD 247.6 million on operations and USD 51.4 million capital improvements in 2007. The sector generated USD 717.7m in total impact, USD 265.5m in earnings, 6645 fte jobs, and USD 17.8m in state income and sales taxes. The economic impact in 2007 represents a slight increase (1.7%) from 2001, the result of a slight decline in operating expenditures and a significant increase in capital spending. Spending by nonprofit arts organisations supports a broad range of sectors in New Jersey, led by professional, scientific and technical services; real estate, finance and insurance, health care, manufacturing, and construction. Visitor spending during trips to New Jersey arts events is estimated at USD 283.8m, generating an economic impact of USD 501.9m in total impact, USD 131.4m in earnings, 4408 fte jobs, and USD 23.1 million in state income and sales taxes.

Methods: Input-Output Analysis of expenditure patterns made by arts organisations and their audiences. Direct expenditures of arts organisations operations were developed primarily by using data from NJSCA application forms detailing the patterns of spending of individual organisations. Budgetary information was gathered from county arts councils. Spending on capital improvements was estimated by interviewing staff at organisations known to have undertaken major project about the nature of that work. Ancillary expenditures of visitors to arts events were estimated by analysing 2687 questionnaires completed by audiences at twenty-three cultural attractions across New Jersey. Expenditure streams were analysed using the RIMS II input-output model from the U.S. Department of Commerce, Bureau of Economic Analysis. Fiscal impacts were estimated using effective New Jersey tax rates.