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International Council of Fine Arts Deans Salt Lake City, Utah October 22, 2009 Randy Cohen Americans for the Arts

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International Council of Fine Arts Deans Salt Lake City, Utah October 22, 2009 Randy Cohen Americans for the Arts

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    1. International Council of Fine Arts Deans Salt Lake City, Utah October 22, 2009 Randy Cohen Americans for the Arts 52 scrabble points52 scrabble points

    2. Funding of the nonprofit arts in the U.S. can be characterized as a mosaic of funding sources—a complex mix of earned revenue, government support, and private sector contributions. This pie chart provides a snapshot of what the revenue picture looks like for the typical nonprofit arts organization in the U.S. Nonprofit arts organizations are generally able to earn only about half of the money it takes to sustain their operation. The other half of their revenue must be raised though contributions and grants. Even small fluctuations in contributed revenue can mean deficits for many organizations. As I was reminded by a theater manager colleague once, if profit were the only indicator of success, there would be very few arts organizations around. So what we have is a stool with three very unequal legs. Funding of the nonprofit arts in the U.S. can be characterized as a mosaic of funding sources—a complex mix of earned revenue, government support, and private sector contributions. This pie chart provides a snapshot of what the revenue picture looks like for the typical nonprofit arts organization in the U.S. Nonprofit arts organizations are generally able to earn only about half of the money it takes to sustain their operation. The other half of their revenue must be raised though contributions and grants. Even small fluctuations in contributed revenue can mean deficits for many organizations. As I was reminded by a theater manager colleague once, if profit were the only indicator of success, there would be very few arts organizations around. So what we have is a stool with three very unequal legs.

    3. It’s a NY Times article about the challenges of arts funding as well as a new city policy in Toledo that enables direct support to the symphony.  Specifically, “…raising money for cultural institutions that, by the nature of things, can never pay their own way.” “…with the decline of wealthy arts patrons, and the paucity of government support, the problem of supporting cultural institutions in this country is growing more acute.” Oh, yeah . . . did I mention the article is from 1952? We’re still talking about it!  It’s a NY Times article about the challenges of arts funding as well as a new city policy in Toledo that enables direct support to the symphony.  Specifically, “…raising money for cultural institutions that, by the nature of things, can never pay their own way.” “…with the decline of wealthy arts patrons, and the paucity of government support, the problem of supporting cultural institutions in this country is growing more acute.” Oh, yeah . . . did I mention the article is from 1952? We’re still talking about it! 

    4. In 2008, private sector giving to the arts (by individuals, foundations, and corporations) was $12.79 billion, a 6.4 percent decrease from $13.67 billion in 2007 (-9.9 percent when adjusted for inflation). Private contributions to all charities in 2008 was $307.7 billion—a 2 percent decrease from $314.1 billion in 2007 (-5.7 percent when adjusted for inflation). In the context of Gross Domestic Product (a measure of the nation’s economy), total philanthropy remained relatively strong: 2.2 percent in 2008, down from 2.3 percent in 2007.In 2008, private sector giving to the arts (by individuals, foundations, and corporations) was $12.79 billion, a 6.4 percent decrease from $13.67 billion in 2007 (-9.9 percent when adjusted for inflation). Private contributions to all charities in 2008 was $307.7 billion—a 2 percent decrease from $314.1 billion in 2007 (-5.7 percent when adjusted for inflation). In the context of Gross Domestic Product (a measure of the nation’s economy), total philanthropy remained relatively strong: 2.2 percent in 2008, down from 2.3 percent in 2007.

    5. Because arts giving decreased at a greater rate than all giving, the arts resumed a long-term trend of lost philanthropic “market share.” In the years around 2000, the arts maintained a 4.5 to 5.0 percent share of total philanthropy. This share decreased during the recession in the early part of this decade, reaching a low of 4.0 percent in 2005. The arts rebounded in 2005 and 2006, but did not regain its earlier levels. In 2008, the arts market share dropped to 4.1 percent, a downward pressure likely to continue for 1-2 more years. What is the financial cost of this decrease? If the arts sector had merely maintained its 4.9 percent “market share” from 2001, it would have received $15.1 billion instead of $12.79 billion in 2008—a $2.3 billion difference. Whose piece of the pie is getting larger? Religion, public-society benefit, and international affairs. Also decreasing in 2008 were education, health, human services, and environment/animals. This financial pinch is compounded by a decade-long growth in the number of nonprofit arts and culture organizations, thus increasing demand for private support.Because arts giving decreased at a greater rate than all giving, the arts resumed a long-term trend of lost philanthropic “market share.” In the years around 2000, the arts maintained a 4.5 to 5.0 percent share of total philanthropy. This share decreased during the recession in the early part of this decade, reaching a low of 4.0 percent in 2005. The arts rebounded in 2005 and 2006, but did not regain its earlier levels. In 2008, the arts market share dropped to 4.1 percent, a downward pressure likely to continue for 1-2 more years. What is the financial cost of this decrease? If the arts sector had merely maintained its 4.9 percent “market share” from 2001, it would have received $15.1 billion instead of $12.79 billion in 2008—a $2.3 billion difference. Whose piece of the pie is getting larger? Religion, public-society benefit, and international affairs. Also decreasing in 2008 were education, health, human services, and environment/animals. This financial pinch is compounded by a decade-long growth in the number of nonprofit arts and culture organizations, thus increasing demand for private support.

    6. A shrinking percentage of the U.S. population is attending the “traditional arts” . . . museums (15.5 to 13.7 percent between 2003-2007) and dance, opera, theater, symphony (40.4 down to 35.5 percent).  A shrinking percentage of the U.S. population is attending the “traditional arts” . . . museums (15.5 to 13.7 percent between 2003-2007) and dance, opera, theater, symphony (40.4 down to 35.5 percent). 

    7. Business Arts Support is Becoming Less Philanthropy Oriented and More Strategic Businesses use a variety of means to support the arts, including charitable contributions, sponsorships, art collections, employee matches, in-kind services, executive loan programs, and workplace giving. Business support for the arts is driven less by a charitable focus and more marketing- and sponsorship-oriented. This enables business to support the arts as well as use the arts to meet business goals, expand markets for products, and engage employees.Business Arts Support is Becoming Less Philanthropy Oriented and More Strategic Businesses use a variety of means to support the arts, including charitable contributions, sponsorships, art collections, employee matches, in-kind services, executive loan programs, and workplace giving. Business support for the arts is driven less by a charitable focus and more marketing- and sponsorship-oriented. This enables business to support the arts as well as use the arts to meet business goals, expand markets for products, and engage employees.

    8. In 2009, local and state government fell 3.0 percent and 4.6 percent, respectively. Congress passed The American Recovery & Reinvestment Act, giving the NEA special supplemental funding of $50 million. In 2009, state legislative arts appropriations decreased for the first time in four years—down 3.3 percent to $343.1 million. State arts funding, which tracks closely with the economy, had record growth in the late 1990’s—reaching a high of $451 million in 2001—followed by a precipitous drop to $281 million by 2004 (38 percent decrease). Based on preliminary figures subject to rescissions, local government arts funding declined 3.0 percent, down from $858 million to $832 million. This reverses a positive trajectory that was sidetracked by cuts in 2003, when local government arts funding dropped for the first time in 15 years, due to the sluggish economy and post-9/11 drops in tourism.  In 2009, the NEA received an increase in Congressional appropriations, up 7 percent from $145 million to $155 million. This continues an upward trend in federal funding for the arts, but still falls short of the historical highpoint of $172 million designated by Congress in 1992. *The American Recovery & Reinvestment Act of 2009 included $50 million in funding to support jobs in the arts through National Endowment for the Arts grants. ALL Federal funding: about $1.4 billion The cuts in funding occurred during a very strong period in the U.S. economy; the small increases have taken place during periods of a weakened economy and even budget deficits—a perfect illustration of the fact that, at the federal level, arts funding decisions are made primarily along political and ideological views.   That is, community decision makers bear witness to the benefits of how the arts positively impact social, educational, and economic development issues.   Another reason local government arts support has remained stable is the use of local option taxes. These are taxes that a city may decide impose on itself. For example, in Denver, Colorado, residents voted to add one-tenth of one-percent to their sales tax to fund their cultural institutions. This generates about $40 million per year. St. Louis, Missouri has a property tax that local residents pay which generates $65+ million annually to five cultural institutions: three museums, the zoo, and the botanical garden—in exchange these organizations provide free admission to the public. At the local level, arts impact on community development. At the state level, the performance of the economy. And at the federal level, prevailing political ideology.In 2009, local and state government fell 3.0 percent and 4.6 percent, respectively. Congress passed The American Recovery & Reinvestment Act, giving the NEA special supplemental funding of $50 million. In 2009, state legislative arts appropriations decreased for the first time in four years—down 3.3 percent to $343.1 million. State arts funding, which tracks closely with the economy, had record growth in the late 1990’s—reaching a high of $451 million in 2001—followed by a precipitous drop to $281 million by 2004 (38 percent decrease). Based on preliminary figures subject to rescissions, local government arts funding declined 3.0 percent, down from $858 million to $832 million. This reverses a positive trajectory that was sidetracked by cuts in 2003, when local government arts funding dropped for the first time in 15 years, due to the sluggish economy and post-9/11 drops in tourism.  In 2009, the NEA received an increase in Congressional appropriations, up 7 percent from $145 million to $155 million. This continues an upward trend in federal funding for the arts, but still falls short of the historical highpoint of $172 million designated by Congress in 1992. *The American Recovery & Reinvestment Act of 2009 included $50 million in funding to support jobs in the arts through National Endowment for the Arts grants. ALL Federal funding: about $1.4 billion The cuts in funding occurred during a very strong period in the U.S. economy; the small increases have taken place during periods of a weakened economy and even budget deficits—a perfect illustration of the fact that, at the federal level, arts funding decisions are made primarily along political and ideological views.   That is, community decision makers bear witness to the benefits of how the arts positively impact social, educational, and economic development issues.   Another reason local government arts support has remained stable is the use of local option taxes. These are taxes that a city may decide impose on itself. For example, in Denver, Colorado, residents voted to add one-tenth of one-percent to their sales tax to fund their cultural institutions. This generates about $40 million per year. St. Louis, Missouri has a property tax that local residents pay which generates $65+ million annually to five cultural institutions: three museums, the zoo, and the botanical garden—in exchange these organizations provide free admission to the public. At the local level, arts impact on community development. At the state level, the performance of the economy. And at the federal level, prevailing political ideology.

    9. As a percentage of non-military discretionary federal spending, NEA funding represented just 0.03% in 2008 (3 cents per $100 of spending). If the NEA simply maintained its 1979 percentage of discretionary funding (0.12%), its 2008 budget would have been $613 million. Waiting to see how the Congress decides on FY2010 NEA appropriations, either $170 mil (House) or $161.3 mil (Senate and President request) or somewhere in between. Should finalize by Novemeber. Watching healthcare legislation (as everyone else is) to see if we can get arts in healthcare into mix. Also watching in support of expanded coverage and reduced cost solutions for arts nonprofits and artists in workforce, like a public option.As a percentage of non-military discretionary federal spending, NEA funding represented just 0.03% in 2008 (3 cents per $100 of spending). If the NEA simply maintained its 1979 percentage of discretionary funding (0.12%), its 2008 budget would have been $613 million. Waiting to see how the Congress decides on FY2010 NEA appropriations, either $170 mil (House) or $161.3 mil (Senate and President request) or somewhere in between. Should finalize by Novemeber. Watching healthcare legislation (as everyone else is) to see if we can get arts in healthcare into mix. Also watching in support of expanded coverage and reduced cost solutions for arts nonprofits and artists in workforce, like a public option.

    10. One major component of the capacity growth noted above has been the remarkable and constant growth of nonprofit arts organizations over the past decade, to approximately 104,000 in 2008. Between 2003 and 2008, a new nonprofit arts organization was created every three hours. Yet, year after year, one out of three fails to break even financially. If many funders feel an increased demand, these data make clear that their perception is, in fact, reality.One major component of the capacity growth noted above has been the remarkable and constant growth of nonprofit arts organizations over the past decade, to approximately 104,000 in 2008. Between 2003 and 2008, a new nonprofit arts organization was created every three hours. Yet, year after year, one out of three fails to break even financially. If many funders feel an increased demand, these data make clear that their perception is, in fact, reality.

    11. Market data gathered by Scarborough Research (200,000 surveys annually in the largest 81 metropolitan areas) indicates a steady decline in the percentage of the population attending museums and performing arts events (symphony, dance, opera, theater)—decreases of 13 percent and 17 percent, respectively, between 2003-2008.Market data gathered by Scarborough Research (200,000 surveys annually in the largest 81 metropolitan areas) indicates a steady decline in the percentage of the population attending museums and performing arts events (symphony, dance, opera, theater)—decreases of 13 percent and 17 percent, respectively, between 2003-2008.

    12. George Washington Used Theater to Inspire Troops at Valley Forge Valley Forge . . . Addison’s 5-act tragedy Cato . . . a way to inspire his hungry and freezing army had it performed for his troops at Valley Forge despite a congressional resolution that plays were detrimental to republican virtue Cato (A Tragedy in Five Acts) by Joseph Addison (1672 - 1719) George Washington was so taken with the character of Cato the Younger in Addison's Cato that he made the Roman republican his role model. He went to see Cato numerous times from early manhood into maturity and even had it performed for his troops at Valley Forge despite a congressional resolution that plays were inimical to republican virtue. Washington included lines from the play in his private correspondence and even in his farewell address. Jim Stockdale; Thoughts of a Philosophical Fighter Pilot, Hoover Press, 1995, p.75Valley Forge . . . Addison’s 5-act tragedy Cato . . . a way to inspire his hungry and freezing army had it performed for his troops at Valley Forge despite a congressional resolution that plays were detrimental to republican virtue Cato (A Tragedy in Five Acts) by Joseph Addison (1672 - 1719) George Washington was so taken with the character of Cato the Younger in Addison's Cato that he made the Roman republican his role model. He went to see Cato numerous times from early manhood into maturity and even had it performed for his troops at Valley Forge despite a congressional resolution that plays were inimical to republican virtue. Washington included lines from the play in his private correspondence and even in his farewell address.Jim Stockdale; Thoughts of a Philosophical Fighter Pilot, Hoover Press, 1995, p.75

    13. The Ghost Army . . . Tank . . . The Ghost Army . . . 23rd Special Troops Unit, kept secret till 1996. until the end of the war, they put on a traveling road show, using inflatable tanks, sound trucks, phony radio transmissions and even playacting. They staged more than 20 battlefield deceptions, often operating very close to the front lines. Their mission was kept secret until 1996, and elements of it are still classified. Rhine to draw German troops away from the actual sites. Ghost soldiers were encouraged to use their brains and talent to mislead, deceive and befuddle the German Army. Many were recruited from art schools, advertising agencies and other venues that encourage creative thinking. In civilian life, ghost soldiers had been artists, actors, set designers and engineering wizards. Fashion designer Bill Blass, photographer Art Kane, the artist Louis Dalton Porter and the painter Ellsworth Kelly served as ghost soldiers.The Ghost Army . . . Tank . . . The Ghost Army . . . 23rd Special Troops Unit, kept secret till 1996. until the end of the war, they put on a traveling road show, using inflatable tanks, sound trucks, phony radio transmissions and even playacting. They staged more than 20 battlefield deceptions, often operating very close to the front lines. Their mission was kept secret until 1996, and elements of it are still classified. Rhine to draw German troops away from the actual sites. Ghost soldiers were encouraged to use their brains and talent to mislead, deceive and befuddle the German Army. Many were recruited from art schools, advertising agencies and other venues that encourage creative thinking. In civilian life, ghost soldiers had been artists, actors, set designers and engineering wizards. Fashion designer Bill Blass, photographer Art Kane, the artist Louis Dalton Porter and the painter Ellsworth Kelly served as ghost soldiers.

    14. I’ve got a good news story to tell you. AEP3 is an economic impact study of the nation’s nonprofit arts and culture org’s and their audiences. It sends a clear and welcome message: leaders who care about community and economic development can feel good about choosing to invest in the arts. AEP3 is a myth buster. It alters the perception that the arts are luxuries worth supporting in prosperous times but hard to justify when the economy is struggling. At a time when governments at all levels are making tough budget choices, this study sends an important message: that support for the arts does not come at the expense of economic development. Rather, it’s an industry. that supports jobs, generates government revenue, is the cornerstone of tourism and economic development, and drives a creativity-based economy. I’ve got a good news story to tell you. AEP3 is an economic impact study of the nation’s nonprofit arts and culture org’s and their audiences. It sends a clear and welcome message: leaders who care about community and economic development can feel good about choosing to invest in the arts. AEP3 is a myth buster. It alters the perception that the arts are luxuries worth supporting in prosperous times but hard to justify when the economy is struggling. At a time when governments at all levels are making tough budget choices, this study sends an important message: that support for the arts does not come at the expense of economic development. Rather, it’s an industry. that supports jobs, generates government revenue, is the cornerstone of tourism and economic development, and drives a creativity-based economy.

    15. Arts & Economic Prosperity III includes study regions in all 50 state plus the District of Columbia. Arts & Economic Prosperity is the most comprehensive study of its kind ever conducted. Both national and local data, 156 study regions: 116 cities and counties, 35 multi-county regions, and 5 states, The diverse communities range in population (4 thousand to 3 million) and type (rural to urban). Arts & Economic Prosperity III includes study regions in all 50 state plus the District of Columbia. Arts & Economic Prosperity is the most comprehensive study of its kind ever conducted. Both national and local data, 156 study regions: 116 cities and counties, 35 multi-county regions, and 5 states, The diverse communities range in population (4 thousand to 3 million) and type (rural to urban).

    16. In this study, economic impact is defined as the employment (full-time equivalent jobs), resident household income (salary, wages, proprietary income), and government revenue (taxes, license fees, and all the ways governments collect revenue) generated by the dollars spent in the community by nonprofit arts organizations and their audiences. This spending supports 5.7 million full-time jobs right here in the U.S.—an increase of 850,000 jobs since our 2002 study.  What’s more, because arts and culture organizations are strongly rooted in their community, these are jobs that necessarily remain local and cannot be shipped overseas. In this study, economic impact is defined as the employment (full-time equivalent jobs), resident household income (salary, wages, proprietary income), and government revenue (taxes, license fees, and all the ways governments collect revenue) generated by the dollars spent in the community by nonprofit arts organizations and their audiences. This spending supports 5.7 million full-time jobs right here in the U.S.—an increase of 850,000 jobs since our 2002 study.  What’s more, because arts and culture organizations are strongly rooted in their community, these are jobs that necessarily remain local and cannot be shipped overseas.

    17. The nonprofit arts, unlike most industries, leverage significant amounts of event-related spending by their audiences. Attendance at arts events generates related commerce for local businesses such as hotels, restaurants, and retail stores. For example, when patrons attend a performing arts event, they may park their car in a toll garage, purchase dinner at a restaurant, eat dessert after the show, and return home and pay a babysitter. The arts are a business that stimulates other business. Data collected from 94,478 arts event attendees at a range of arts events reveal an average spending of $27.79 per person per event, not including the price of admission. The nonprofit arts, unlike most industries, leverage significant amounts of event-related spending by their audiences. Attendance at arts events generates related commerce for local businesses such as hotels, restaurants, and retail stores. For example, when patrons attend a performing arts event, they may park their car in a toll garage, purchase dinner at a restaurant, eat dessert after the show, and return home and pay a babysitter. The arts are a business that stimulates other business. Data collected from 94,478 arts event attendees at a range of arts events reveal an average spending of $27.79 per person per event, not including the price of admission.

    18. Local audiences: $19.53 Nonlocal attendees: $40.19 per person.  As communities compete for the tourist’s dollar, the arts have proven to be a magnet for travelers and their money. Local businesses are able to grow because travelers extend the length of their trips to attend cultural events. Travel and tourism research shows that cultural travelers spend more ($631 vs. $457), travel longer (5.2 nights vs. 4.1 nights), and are more likely to spend at least $1,000 (18% vs. 12%).Local audiences: $19.53 Nonlocal attendees: $40.19 per person.  As communities compete for the tourist’s dollar, the arts have proven to be a magnet for travelers and their money. Local businesses are able to grow because travelers extend the length of their trips to attend cultural events. Travel and tourism research shows that cultural travelers spend more ($631 vs. $457), travel longer (5.2 nights vs. 4.1 nights), and are more likely to spend at least $1,000 (18% vs. 12%).

    20. Creative Industries: Business and Employment in the Arts Nonprofit theaters, ballets, museums to for-profit film, architecture, and advertising companies. Businesses that we connect with almost daily . . . when we go to the movies or a concert . . . pay our cable TV bill . . . buy a musical instrument or a music CD . . . hire a photographer or interior designer. All are businesses involved in the creation or the distribution of the arts. Nonprofit theaters, ballets, museums to for-profit film, architecture, and advertising companies. Businesses that we connect with almost daily . . . when we go to the movies or a concert . . . pay our cable TV bill . . . buy a musical instrument or a music CD . . . hire a photographer or interior designer. All are businesses involved in the creation or the distribution of the arts.

    21. Please note that, as the source of these data is based solely on businesses that have registered with Dun & Bradstreet, our analyses indicate an under-representation of nonprofit arts organizations and individual artists. Therefore, the findings in the Creative Industries report should be considered conservative. Please note that, as the source of these data is based solely on businesses that have registered with Dun & Bradstreet, our analyses indicate an under-representation of nonprofit arts organizations and individual artists. Therefore, the findings in the Creative Industries report should be considered conservative.

    22. Louise Slaughter Biz: -6.9 percent Jobs: +0.29 percentLouise Slaughter Biz: -6.9 percent Jobs: +0.29 percent

    23. There is renewed interest in business support for the arts as it relates to building the 21st century workforce. In 2008, the Conference Board released Ready to Innovate, a new research report that touts the importance of arts education in building the 21st century workforce.  Innovation is the key to the nation’s economic recovery and global competitiveness.  Arts participation—in school or in the workplace—strengthens our “creativity muscles,” which builds our creativity—the fuel that drives innovation Those closest to high-school graduates (public school superintendents) and those close to the workforce entrants these graduates become (employers) were surveyed to identify and compare their views surrounding creativity.  The 2008 report, Ready to Innovate makes clear that both business and school leaders are virtually unanimous in rating creativity as increasingly important in U.S. workplaces (97 and 99 percent, respectively).  72% of employers say creativity is of primary concern when they’re hiring, and 85% of these employers can’t find the creative applicants they seek. What exemplifies creativity? (We could spend hours just on this one . . .) Employers who replied to the survey believe creativity has less to do with finding solutions than with the ability to spot problems or patterns others cannot see. Arts-related study in college is a key creativity indicator to potential employers. Very few employers test for creativity in the hiring process; a noteworthy 27 percent said they use the candidate’s appearance to assess creative ability. There is renewed interest in business support for the arts as it relates to building the 21st century workforce. In 2008, the Conference Board released Ready to Innovate, a new research report that touts the importance of arts education in building the 21st century workforce.  Innovation is the key to the nation’s economic recovery and global competitiveness.  Arts participation—in school or in the workplace—strengthens our “creativity muscles,” which builds our creativity—the fuel that drives innovation Those closest to high-school graduates (public school superintendents) and those close to the workforce entrants these graduates become (employers) were surveyed to identify and compare their views surrounding creativity.  The 2008 report, Ready to Innovate makes clear that both business and school leaders are virtually unanimous in rating creativity as increasingly important in U.S. workplaces (97 and 99 percent, respectively).  72% of employers say creativity is of primary concern when they’re hiring, and 85% of these employers can’t find the creative applicants they seek. What exemplifies creativity? (We could spend hours just on this one . . .) Employers who replied to the survey believe creativity has less to do with finding solutions than with the ability to spot problems or patterns others cannot see. Arts-related study in college is a key creativity indicator to potential employers. Very few employers test for creativity in the hiring process; a noteworthy 27 percent said they use the candidate’s appearance to assess creative ability.

    24. Arts Education: Prepares a Creative Workforce “Creativity is of increasing importance to the U.S. workforce.” Corporate leaders: 96% Superintendents: 98%

    25. Arts Creativity Innovation Ready to Innovate Conclusion: “…it is clear that the arts—music, creative writing, drawing, dance—provide skills sought by employers of the third millennium.” I usually don’t put this much text on a slide, but the Conclusion of the Conference Board’s Ready to Innovate report is a remarkable stride Revisiting Conference Board’s CEO comment” As innovation is crucial to competition, so is creativity integral to innovation.” we asked, rhetorically, if school and business leaders connect the arts to creativity? In this report, the answer is yes (though we know there remains a huge disconnect between the arts and creativity). I usually don’t put this much text on a slide, but the Conclusion of the Conference Board’s Ready to Innovate report is a remarkable stride Revisiting Conference Board’s CEO comment” As innovation is crucial to competition, so is creativity integral to innovation.” we asked, rhetorically, if school and business leaders connect the arts to creativity? In this report, the answer is yes (though we know there remains a huge disconnect between the arts and creativity).

    26. Corporate Battle of the Bands P & G’s The Consumer Republic These are the guys designing your toothpaste. Trading suits for guitars and neckties for drums, Proctor & Gamble’s The Consumer Republic from Switzerland was crowned international champion during the eighth annual FORTUNE Battle of the Corporate Bands hosted Saturday at the legendary Rock & Roll Hall of Fame and Museum. Leading up to the finals, eight corporate bands were chosen during a series of regional semi-final events across the U.S. Prior to their win in Cleveland, The Consumer Republic secured their ticket to the finals by winning a regional competition in London. “More than ever, people of all ages are making music as a means of stress relief, personal enjoyment and a way to bond with friends and family,” said Joe Lamond, President and CEO of NAMM, the international trade association for the music products industry. “We are even seeing more businesses turning to making music to get creative during brainstorms and build relationships between different departments and levels.” Created in 2001, the FORTUNE Battle of the Corporate Bands encourages friendly competition between a diverse collection of companies that recognize how music helps develop teamwork, discipline, creativity, passion, harmony and commitment—all valued skills in business. And with 82 percent [NAMM-funded Harris Poll of people who don’t currently play an instrument wishing they did, these bands prove that even in the high stress corporate environment, people are coming together to make music and live out the rock and roll fantasy.These are the guys designing your toothpaste. Trading suits for guitars and neckties for drums, Proctor & Gamble’s The Consumer Republic from Switzerland was crowned international champion during the eighth annual FORTUNE Battle of the Corporate Bands hosted Saturday at the legendary Rock & Roll Hall of Fame and Museum. Leading up to the finals, eight corporate bands were chosen during a series of regional semi-final events across the U.S. Prior to their win in Cleveland, The Consumer Republic secured their ticket to the finals by winning a regional competition in London. “More than ever, people of all ages are making music as a means of stress relief, personal enjoyment and a way to bond with friends and family,” said Joe Lamond, President and CEO of NAMM, the international trade association for the music products industry. “We are even seeing more businesses turning to making music to get creative during brainstorms and build relationships between different departments and levels.” Created in 2001, the FORTUNE Battle of the Corporate Bands encourages friendly competition between a diverse collection of companies that recognize how music helps develop teamwork, discipline, creativity, passion, harmony and commitment—all valued skills in business. And with 82 percent [NAMM-funded Harris Poll of people who don’t currently play an instrument wishing they did, these bands prove that even in the high stress corporate environment, people are coming together to make music and live out the rock and roll fantasy.

    27. Arts Makes Engaged and Motivated Employees 51% less likely to leave a low-turnover company 31% less likely to leave a high-turnover company 62% less likely to have an accident on the job 27% less prone to absenteeism 51% less likely to be source of “inventory shrinkage” 18% more productive Gallup Research: 682,000 respondents at 24,000 business units A recent study from the global investment research firm, Ned Davis Research, Inc., found that in 1975 tangible assets, like inventory and equipment, made up over 80% of the value of the S&P 500. Today, intangible assets, like corporate brands, employee talent, innovation, and engagement levels, are 80% of its value. The growing dependence on intangible assets means emotional connection - the essence of engagement - matters. In fact, for an increasing number of executives, emotional attachment is the bottom line. Steve Jobs recently told Fortune Magazine that he decided to scrap the design of the iPhone dangerously close to its introduction deadline because he realized, “I just don't love this. I can't convince myself to love this.” He challenged his team to throw out the last year of work and start over. “And you know what they said? „Sign us up.? That happens more than you think, because this is not just engineering and science. There is art too.” For Jobs, art is an outcome of applying emotional connection to a product. Engagement is the outcome of applying emotional connection to process. Whether creating the iPhone, building a house or playing a piano sonata, art and engagement demand emotional connection. A recent study from the global investment research firm, Ned Davis Research, Inc., found that in 1975 tangible assets, like inventory and equipment, made up over 80% of the value of the S&P 500. Today, intangible assets, like corporate brands, employee talent, innovation, and engagement levels, are 80% of its value. The growing dependence on intangible assets means emotional connection - the essence of engagement - matters. In fact, for an increasing number of executives, emotional attachment is the bottom line. Steve Jobs recently told Fortune Magazine that he decided to scrap the design of the iPhone dangerously close to its introduction deadline because he realized, “I just don't love this. I can't convince myself to love this.” He challenged his team to throw out the last year of work and start over. “And you know what they said? „Sign us up.? That happens more than you think, because this is not just engineering and science. There is art too.” For Jobs, art is an outcome of applying emotional connection to a product. Engagement is the outcome of applying emotional connection to process. Whether creating the iPhone, building a house or playing a piano sonata, art and engagement demand emotional connection.

    28. Bands of the Battle . . . Air Force alone has 12 active duty bands plus 11 Air National Guard bands. Stated purpose: to enhance morale, espirit de corps, and retention. The Air Force believes the bands Increase public awareness and understanding of the armed forces and enhance public trust and support. During the winter of 1862-1863, the Union and Confederate armies were camped near each other at Fredericksburg, Virginia, separated only by the expanse of the Rappahannock River. One cold afternoon, a band in the Union camp struck up some patriotic tunes to cheer the men. They were answered from across the river by a Confederate band. The Union band played another tune followed by the Confederates who also did their best to play the same song. Back and forth the musical duel went lasting well into the evening hours. Soldiers in both armies listened to the musical battle and would cheer for their own bands. The duel finally ended when both bands struck up the tune, "Home, Sweet Home". It was then that the men of both sides who were so far from their homes, cheered as one. www.nps.gov/archive/gett/gettkidz/music.htm Air Force alone has 12 active duty bands plus 11 Air National Guard bands. Stated purpose: to enhance morale, espirit de corps, and retention. The Air Force believes the bands Increase public awareness and understanding of the armed forces and enhance public trust and support. During the winter of 1862-1863, the Union and Confederate armies were camped near each other at Fredericksburg, Virginia, separated only by the expanse of the Rappahannock River. One cold afternoon, a band in the Union camp struck up some patriotic tunes to cheer the men. They were answered from across the river by a Confederate band. The Union band played another tune followed by the Confederates who also did their best to play the same song. Back and forth the musical duel went lasting well into the evening hours. Soldiers in both armies listened to the musical battle and would cheer for their own bands. The duel finally ended when both bands struck up the tune, "Home, Sweet Home". It was then that the men of both sides who were so far from their homes, cheered as one. www.nps.gov/archive/gett/gettkidz/music.htm

    29. Data from The College Board shows that students who take four years of arts and music classes while in high school score 98 points better on their SATs than students who took only one-half year or less (scores of 1,080 vs. 981, respectively). *The 2006 and 2007 data reflect the Critical Reading and Mathematics portions of the SAT only. The new Writing section of the test is excluded from this analysis for year-to-year comparison purposes. Students with four years of art and music classes averaged 532 on the Writing portion of the test—60 points higher than students with one-half year or less of arts/music classes (472). Data from The College Board shows that students who take four years of arts and music classes while in high school score 98 points better on their SATs than students who took only one-half year or less (scores of 1,080 vs. 981, respectively). *The 2006 and 2007 data reflect the Critical Reading and Mathematics portions of the SAT only. The new Writing section of the test is excluded from this analysis for year-to-year comparison purposes. Students with four years of art and music classes averaged 532 on the Writing portion of the test—60 points higher than students with one-half year or less of arts/music classes (472).

    30. CATTERALL . . . The academic benefits of arts education go beyond math and reading. An analysis of U.S. Department of Education data by UCLA research James Catterall found that students who were highly involved in the arts performed better on a variety of academic measures than other students (grade point averages, standardized test score, lower drop-out rates, and better attitudes about community service . . . these findings also held when studied across socio-economic strata, suggesting that the arts can "level the playing field" for youngsters from disadvantaged circumstances. Don’t take my word for it. In a recent commentary in Education Week by Arkansas Governor Mike Huckabee and former U.S. Secretary of Education Rod Paige, they write, “The arts instill in students the habits of mind that last a lifetime: critical-analysis skills, ability to deal with ambiguity and to solve problems, perseverance, and a drive for excellence.” Now, it's hard to argue with these facts, but policy makers have found ways to ignore them. Too many of our students in our communities and classrooms simply don't have access to arts education. Last year’s report by the Council of Basic Education documented, via surveys of 1,000 school principals, what so many of us are observing. Because of No Child Left Behind laws, our schools are teaching to the test more than ever, and cutting out the liberal arts. 25 percent of the principals reported decreases in instructional time for the arts; 33 percent anticipate future decreases in instructional time.CATTERALL . . . The academic benefits of arts education go beyond math and reading. An analysis of U.S. Department of Education data by UCLA research James Catterall found that students who were highly involved in the arts performed better on a variety of academic measures than other students (grade point averages, standardized test score, lower drop-out rates, and better attitudes about community service . . . these findings also held when studied across socio-economic strata, suggesting that the arts can "level the playing field" for youngsters from disadvantaged circumstances. Don’t take my word for it. In a recent commentary in Education Week by Arkansas Governor Mike Huckabee and former U.S. Secretary of Education Rod Paige, they write, “The arts instill in students the habits of mind that last a lifetime: critical-analysis skills, ability to deal with ambiguity and to solve problems, perseverance, and a drive for excellence.” Now, it's hard to argue with these facts, but policy makers have found ways to ignore them. Too many of our students in our communities and classrooms simply don't have access to arts education. Last year’s report by the Council of Basic Education documented, via surveys of 1,000 school principals, what so many of us are observing. Because of No Child Left Behind laws, our schools are teaching to the test more than ever, and cutting out the liberal arts. 25 percent of the principals reported decreases in instructional time for the arts; 33 percent anticipate future decreases in instructional time.

    31. Arts Education Improves Cognitive Development Arts strengthens attention and memory “muscles” Dance . . . observation skills Acting . . . memory and speech Music . . . reading and analytical thinking www.dana.org Cognitive neuroscientists from 7 leading universities. Thinking . . . problem solving . . . concept understanding . . . information processing . . . overall intelligence Correlation vs. causal . . . HOW MUCH arts training . . . PROMISING!Cognitive neuroscientists from 7 leading universities. Thinking . . . problem solving . . . concept understanding . . . information processing . . . overall intelligence Correlation vs. causal . . . HOW MUCH arts training . . . PROMISING!

    32. The Bad News NCLB Cuts into Arts Education Center for Education Policy: -22% Council for Basic Education: -25% Now, it's hard to argue with these facts, but policy makers have found ways to ignore them. Too many of our students in our communities and classrooms simply don't have access to arts education. Last year, the Council for Basic Education documented the phenomenon. In a survey of 1,000 elementary and secondary school principals, 25 percent reported decreases in instructional time for the arts during the previous two years—and one-third anticipate future decreases in instructional time. Even more worrisome, among principals serving in schools with large proportions of minority students, more than a third said the arts had already been cut, while 42 percent expected that arts education would weaken in the future. Now, I just described James Catterall’s research which shows that the arts can "level the playing field" for students from disadvantaged circumstances—and yet, this is the cohort experiencing the largest cut. This is a phenomenal disconnect of public purpose versus policy outcome. Think about this folks . . . Here we have legislation designed to improve the quality of education that is actually stripping-out one of our best tools that the research shows . . . improves the quality of education. It’s a disservice to the students and we’re not helping our own futures out either. When President Bush signed No Child Left Behind into law in 2002, arts educators were delighted that the arts were listed as a core academic subject. (The arts were first introduced into federal law under the Goals 2000 Act. NCLB kept them in there.) That positive feeling has faded, however, as arts educators have watched funding and classroom time for the arts and music be stripped away so more attention can be devoted to reading and math—the two subjects in which students are tested annually under this law (science in 2006). You know the old maxim, “what’s tested is taught,” right? Now, it's hard to argue with these facts, but policy makers have found ways to ignore them. Too many of our students in our communities and classrooms simply don't have access to arts education. Last year, the Council for Basic Education documented the phenomenon. In a survey of 1,000 elementary and secondary school principals, 25 percent reported decreases in instructional time for the arts during the previous two years—and one-third anticipate future decreases in instructional time. Even more worrisome, among principals serving in schools with large proportions of minority students, more than a third said the arts had already been cut, while 42 percent expected that arts education would weaken in the future. Now, I just described James Catterall’s research which shows that the arts can "level the playing field" for students from disadvantaged circumstances—and yet, this is the cohort experiencing the largest cut. This is a phenomenal disconnect of public purpose versus policy outcome. Think about this folks . . . Here we have legislation designed to improve the quality of education that is actually stripping-out one of our best tools that the research shows . . . improves the quality of education. It’s a disservice to the students and we’re not helping our own futures out either. When President Bush signed No Child Left Behind into law in 2002, arts educators were delighted that the arts were listed as a core academic subject. (The arts were first introduced into federal law under the Goals 2000 Act. NCLB kept them in there.) That positive feeling has faded, however, as arts educators have watched funding and classroom time for the arts and music be stripped away so more attention can be devoted to reading and math—the two subjects in which students are tested annually under this law (science in 2006). You know the old maxim, “what’s tested is taught,” right?

    34. Lobbying: Yes, you can!

    35. Think your vote doesn’t matter? 1 Vote . . .

    36. King Charles I . . . Should have made a few more calls! Ooops. Didn’t work out well for everyone.Ooops. Didn’t work out well for everyone.

    39. Be cool! Brief A legislator's time is limited. Strategic Research information about previous positions, voting records, and legislative and policy goals. Establish as many connections as possible between you and the decision-maker. Specific State the clear purpose and timeliness of your visit or communication Informative Give clear, local examples of why the measure should be supported or a proposed funding cut rescinded. Bold Ask for a particular action. Good listener Give the decision-maker a meaningful opportunity to state his/her position so you can begin a dialogue. Respectful Maintain a good working relationship regardless of outcomes. Do not treat meetings as a one-time opportunity; revisit issues on a regular basis. Become an information resource and cultural liaison to the decision-maker. Appreciative Acknowledge past support and always say thank you! Be prompt and patient They are busy, schedules often change Be Prepared What are your top 3 issues and be prepared to talk about them. Do your homework! Be ready to explain the issue in simple terms in case the decision maker in not familiar with the issue Bring written background information including your contact information and leave it with them Be Political Demonstrate how this helps your state or the legislative district Demonstrate how this will make the decision maker look good to the public Be Responsive Be prepared to answer questions Promptly follow up with thank you note and any other information you have promised Meetings with Staff are Very Effective They advise the decision maker Become their arts resource Build a professional relationship with them You will probably know more about arts issues than they do, YOU are the expert, especially on district programs. NEVER EVER BURN YOUR BRIDGESBe cool! Brief A legislator's time is limited. Strategic Research information about previous positions, voting records, and legislative and policy goals. Establish as many connections as possible between you and the decision-maker. Specific State the clear purpose and timeliness of your visit or communication Informative Give clear, local examples of why the measure should be supported or a proposed funding cut rescinded. Bold Ask for a particular action. Good listener Give the decision-maker a meaningful opportunity to state his/her position so you can begin a dialogue. Respectful Maintain a good working relationship regardless of outcomes. Do not treat meetings as a one-time opportunity; revisit issues on a regular basis. Become an information resource and cultural liaison to the decision-maker. Appreciative Acknowledge past support and always say thank you! Be prompt and patient They are busy, schedules often change Be Prepared What are your top 3 issues and be prepared to talk about them. Do your homework! Be ready to explain the issue in simple terms in case the decision maker in not familiar with the issue Bring written background information including your contact information and leave it with them Be Political Demonstrate how this helps your state or the legislative district Demonstrate how this will make the decision maker look good to the public Be Responsive Be prepared to answer questions Promptly follow up with thank you note and any other information you have promised Meetings with Staff are Very Effective They advise the decision maker Become their arts resource Build a professional relationship with them You will probably know more about arts issues than they do, YOU are the expert, especially on district programs. NEVER EVER BURN YOUR BRIDGES

    40. Thank You! www.AmericansForTheArts.org

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