This study [prepared for the Colorado Council on the Arts and Humanities] is an update of the 1983 report on the Economic Impact of the Arts in Colorado. The presentation parallels that report to give public policy makers a means of comparison in the temporal dimension. The study reports the results from various surveys of arts organizations and audiences. The focus of these surveys is two-fold: (1) to qualitatively describe the organizations and their audiences and (2) to quantitatively measure the impact of these organizations on the Colorado and local area economies.

In order to effectively measure the overall economic impact we employ an expenditure approach and economic multiplier process. The multiplier process measures both the direct and indirect benefits of economic activity. To gain the greatest degree of comparability between studies, we have surveyed the same audiences and organizations. We have also employed similar multiplier values to aid in the comparisons.

We identified 450 non-profit arts organizations in the state from a mailing list provided by the state arts council. Out of those 450 organizations, 185 or 41% returned a survey. Response from the large organizations (budgets greater than $500,000) appears to be excellent, with only three not responding). In terms of the geographical location of participating arts organizations, an examination of the valid responses showed that more than half (53%) are located in the Denver metro area (Economic Planning Region 3).

Although a large number of the smaller arts organizations did not participate in the survey, the responding organizations served as a basis to assess the size and impact of the entire arts industry. Expenditures by Colorado Arts organizations are estimated at $108 million in 1989. Personnel, including wages, fringe benefits, and contracts with guest artists, was the largest expenditure category, accounting for 54% of the total expenditures. Although large groups with annual budgets exceeding $500,000 per year represented only 6% of the total number of organizations in the state, they accounted for nearly 84% of total expenditures. Arts organizations' budgets were supported by estimated projected total revenues of $111.6 million. This generated a net income position of $3 million for the industry. In the aggregate, program activities and earnings from concessions, advertising, space rentals, and other operating revenue accounted for almost 43% of total income. Contributions and grants from individuals, foundations, businesses, government and unreported miscellaneous income accounted for an additional 43%.

The total economic impact of the arts industry in Colorado in 1989, considering both direct and indirect effects, is approximately $239 million. This total amount of business volume, generated by arts organization spending, is based on $96 million of direct organizational spending in state and in kind contributions, and $143 million of indirect spending. As indicated by the survey, the most serious issue confronting Colorado arts organizations is insufficient funding in their communities. Another priority of many arts organizations was to increase general public awareness of the significant impact of the arts culturally, financially, and educationally as well as to encourage the allied development and sophistication of their particular audiences.

Many respondents cited an emphasis upon fund-raising to avert financial woes as a major priority for their organization in 1989. Another priority for many arts groups is the establishment or re-organization of a formalized organizational infrastructure - by either appointing a board of directors or installing an executive director. Highlights of Individual site surveys: Aspen: Despite its relatively small population (13,612) and unifaceted economy that centers on the tourist trade, Pitkin County boasts a median family income of $40,100, the highest in Colorado. The combined annual expenditures of the selected seven arts organizations totaled $6.8 million. The cash expenditures of $5.9 million spent locally by these seven Aspen organizations supported an additional $5.4 million in local business activity. When in-kind expenses are included we measure the overall economic impact of these seven organizations at $11.4 million. Creede: The Creede Repertory Theatre (CRT) is located in Mineral County, the smallest (population 647), and economically least diversified county in this study. The CRT had annual cash expenditures of $183,795 in 1989. The $160 thousand spent locally by the Creede Repertory Theatre supported an additional $144 thousand in local business activity. When in-kind expenses are included, we measure the overall economic impact of this organization at $329,311. Telluride: Telluride is located in San Miguel county and is the center of performing arts activity in the region. The four arts organizations selected for this study have combined annual expenditures of $341,693. The cash expenditures of $233 thousand spent locally by these four organizations supported an additional $209 thousand in local business activity. When in-kind expenses are included we measure the overall economic impact of these four organizations at $520 thousand. Denver: The Denver metro area is the hub of performing arts activity in Colorado, providing a greater variety of arts events than in any other area in the state. The six arts organizations selected for this study have combined annual cash expenditures of $20,347, 973. The cash expenditures of $17.7 million spent locally by these six organizations supported an additional $15.9 million in local business activity. When in-kind expenses are included we measure the overall economic impact of these six organizations at $33.6 million. Colorado Springs: Pikes Peak Center was the sole Colorado Springs arts organization to participate in the patron portion of this study. The Center had annual cash expenditures of $517,846 in 1989. The $448,565 spent locally by the Pikes Peak Center supported an additional $403,709 in local business activity. We, therefore, measure the overall economic impact of this organization at approximately $852 thousand.

CONTENTS
Executive Summary.

Chapter 1. Introduction.
Chapter 2. The arts industry in Colorado.
Chapter 3. Selected arts organizations in Aspen.
Chapter 4. The Repertory theatre and Creede.
Chapter 5. Selected arts organizations in Telluride.
Chapter 6. The impact of arts organizations in the Denver Metropolitan area.
Chapter 7. Selected arts organizations in Colorado Springs.
Chapter 8. Summary and conclusions.

Bibliography.
Appendices:
     Economic impact of the arts, 1989 survey update. 
     Survey of arts organizations in Colorado.
     Economic impact of the arts, 1989 survey of Aspen/Snowmass arts audiences of:
          Creede repertory theatre audiences.
          Telluride arts audiences.
          Denver Arts audience.
          Pikes Peak Center Arts audience (Colorado Springs).

This study [prepared for the Colorado Council on the Arts and Humanities] is an update of the 1983 report on the Economic Impact of the Arts in Colorado. The presentation parallels that report to give public policy makers a means of comparison in the temporal dimension. The study reports the results from various surveys of arts organizations and audiences. The focus of these surveys is two-fold: (1) to qualitatively describe the organizations and their audiences and (2) to quantitatively measure the impact of these organizations on the Colorado and local area economies.