ABSTRACT

This chapter discusses the role of economic impact studies and the effects of urban cultural policies that emphasize the economic consequences of arts spending, through New York City. Expenditures for arts-related activities are seen as having multiplier effects, defined as the increase in a community's total income per dollar of direct expenditures. Public funding brings in only 39.4 percent of their income; they must obtain the remaining 60.6 percent through contributions, from their endowments, and from other sources. Additional funding for arts organizations in New York City comes from the New York State Council on the Arts. Government policy on local, state, and regional levels has served as a catalyst for privately sponsored programs. An Arts Research Center report summarizes the important role that private sources play in the income of arts organizations in New York City and state. In 1995, the economic impact of the arts for New York City was estimated to be $11.1 billion.