This publication summarizes a three-year recent period of research findings to highlight opportunities and issues for Greater Philadelphia's Cultural Sector. Its research was conducted as part of a national effort to profile the non-profit arts and cultural sector and to develop a base of information which will inform cultural policy development locally and nationally.

"Government support of arts and cultural organizations fluctuated significantly during the mid-1990s when direct federal support through the NEA and NEH was cut by roughly 30 percent. Since then, state and local government support for the arts increased, yet funding from government agencies continues to shift with changes in the political, social, educational, and business environment. Recent economic downturns have put many states in a deficit position with cuts to arts funding. The current recession, combined with increased goverment attention to security and military matters, undoubtedly affects the ability of state and local governments to provide resources for the arts."

This report examines public funding trends for the arts in the southeastern region of Pennsylvania including the counties of Bucks, Chester, Delaware, Montgomery, and Philadelphia. It also assesses the various funding sources available to arts and cultural organizations and offers a summary of recent trends and recommendations.

The following are highlights of the findings:
* Corporate and foundation support accounted for 17% of the total arts sector revenues in 1995.
* From 1995 to 1996 NEA grants to the state declined by 26%
* In FY 1998, the Philadelphia region received $3.4 million in state arts funding, with 87% of those funds allocated to Philadelphia county.
* The Pennsylvania Council on the Arts budget grew from $8.3 million in 1993 to $12 million in 1998, reaching a peak of $15.4 million in 2001.
* Despite these gains, during 1998 state government support accounted for only 2% of total arts sector revenues in Philadelphia, compared to an average of 3% among other cities.
*Public funds allocated to city-owned institutions for operational support have decreased significantly, dropping by 50% during the last decade.
* The Philadelphia Cultural Fund, established in 1994, now stands at $1.75 million, a 25% reduction from the $2.3 million in operating funds awarded to non-line-item cultural institutions in 1991.
* Philadelphia, though ranked the fifth largest city in the U.S., ranked 7th of the ten largest U.S. cities in government per capita spending on the arts in 1998.
* Local public support for the arts in 1995 was $5 million, with 97% of these funds allocated to Philadelphia-based institutions.

The conclusion of the report presents ideas of future implications for policy development.They are: understand and work with the system; develop a local infrastructure for suburban policy development; and institutionalize advocacy. Top priorities include:
1) improving local identity/image
2) furthering economic and community development
3) supplementing arts education through youth-based programs
4) addressing social needs in increasingly diverse suburban communities.

For cultural community planning in an suburban setting to succeed, the authors suggest that a local arts infrastructure be instituted at the county level. Moreover, the process should ideally "embrace the broadest view of arts and culture as a key element in social, educational and economic development."

CONTENTSﾝ
Foreword.
Acknowledgements.
Introduction.
Regional Research on the Arts.
Snapshot of the Region's Cultural Sector.
Funding Trends and Income Streams.
Philadelphia Regional Report Card.
Summary.
Future Implications for Policy Development.
Considerations for Cultural Planning.
References Cited.
Works Cited.