(navigation image)
Home American Libraries | Canadian Libraries | Universal Library | Community Texts | Project Gutenberg | Children's Library | Biodiversity Heritage Library | Additional Collections
Search: Advanced Search
Anonymous User (login or join us)
Upload
See other formats

Full text of "Economic impacts of arts and cultural institutions : a model for assessment and a case study in Baltimore : a report"

:h Division Report #6 



B3^ 
127 



H >nomic Impacts of Arts 
nd Cultural Institutions: 

'A Model for Assessment and 

tga Case Study in Baltimore 



National Endowment 
for the Arts 



November 1977 



LIBRARY 

\ NATIONAL 
ENLX)WMENT 
FOR THE 
ARTS 



A Report by David Cwi and Katherine Lyall, The Center for Metropolitan Planning and Research, The Johns Hopkins University, October 1977 



Digitized by the Internet Archive 

in 2012 with funding from 

Boston Library Consortium Member Libraries 



http://archive.org/details/economicimpactsoOOcwid 



PREFACE 



In February 1976, the Research Division released a program 
solicitation requesting proposals for a study of the economic 
impacts of arts activities and cultural institutions on their 
communities. The decision to undertake this project was 
based on recognition of the growing need for information that 
would explain the relationship between arts and cultural 
activities and the economic environment of the communities 
in which these activities take place. 

The research community showed keen interest in the project 
by responding with 42 proposals, many of them meritorious. 
Though the evaluation group recommended that five of the pro- 
posals be funded, resources permitted going ahead with only one. 

The proposal submitted by the Center for Metropolitan 
Planning and Research, The Johns Hopkins University, has led to 
the development of a general purpose model that may be used for 
the analysis of the economic effects of arts and cultural in- 
stitutions in many communities. The model is made up of 30 
equations which may be modified as special community character- 
istics require. One of the features of the model is that the 
equations treat the individual effects separately, so that 
modifications can be made with clear understanding of their 
impacts. 

This report includes both the model and a case study appli- 
cation of the model to eight institutions in Baltimore. The Arts 
Endowment recognizes that other methods for the evaluation of 
economic effects are possible and may be valid. The experience 
of selecting the proposal from The Johns Hopkins University from 
many others submitted, confirms the possibility that other 
satisfactory approaches may be developed for this purpose. 
However, we believe that the model presented in this report can 
be adapted to a variety of settings; will take account of a wide 
range of local governments, as well as various social, insti- 
tutional and economic conditions; and may be considered suitable 
for general application. 



LIBRARY , ■ ■ ■ 

■• •■ ■ ■ A Research Division 

NATIONAL 1 National Endowment for the Arts 

ENDOWMENT] ° Ct ° ber 1977 
FOR THE 
ARTS 



INTRODUCTION 

The economic impact model uses 30 equations to determine 
a variety of direct and secondary effects on business, 
government, and individuals. It was developed to meet 
several objectives: (1) utilize data generally available 
from the internal records of arts institutions and from 
local, state, or federal documents (as applied to Baltimore, 
the model also required audience and employee surveys) ; (2) 
be used and understood by non-economists; (3) assess economic 
effects with as much accuracy as available data allows; and 
(4) identify negative as well as positive effects. 

Section I briefly describes the general structure of 
the 30 equations comprising the model, reviews the ways in 
which this report differs from other economic impact studies, 
and cites important caveats regarding the use and abuse of 
economic impact studies. Section II provides an overview of 
the Baltimore economy and its arts community. Section III 
summarizes results of the quantitative calculations for 
Baltimore and discusses the role of the arts in economic 
development and executive recruitment. Section IV provides 
concluding policy observations. Finally, Section V presents 
a detailed User Manual explaining the model and its application. 
The several appendices are important to an understanding of 
the assumptions and methods of the Baltimore case study and 
for the application of the model in other locations. 

In testing the model, we have had the indispensable 
assistance of Thomas Freudenheim, Director, and Ron Goff, 
Assistant Director, the Baltimore Museum of Art; Peter 
Lawrence, Managing Director, the Morris A. Mechanic Theatre; 
Ackneil Muldrow, Treasurer, and Camilla Sherrard, Chair of 
the Board, the Arena Players Theatre; Joseph Patterson, 
Business Manager, and Mark Gallagher, Center Stage Theatre; 
Richard Randall, Director, Edward McCracken, Administrative 
Officer, and Mary Cooney, Fiscal Secretary, the Walters Art 
Gallery; Robert Collinge, Director, and Josh Miller of the 
Baltimore Opera Company; Joseph Leavitt, General Manager, 
and Winifred Walker, Fiscal Officer, the Baltimore Symphony 
Orchestra; and Joseph Cerrone, Director, and Lynn Summerell, 
Associate Director, the Maryland Ballet. These individuals 
provided needed data from institutional internal records as 
well as information on their institutions' internal accounting 
practices which saved us from many errors. Their cooperation 
was also valuable in permitting us to survey their audiences 
and employees for other information vital to the computation 
of the model. 

Teresa Moore assisted with the programming and retrieval 
of the computerized survey data. Catherine Ingraham collected 
data and made many of the computations. Louie Fringer typed 
the manuscript. Sally Feingold managed the audience survey 
field work. 

David Cwi 
Katharine Lyall 

ii 



TABLE OF CONTENTS 

Page 

STRUCTURE OF THE MODEL, ITS USE AND ABUSE 1 

THE BALTIMORE ECONOMY AND ITS ARTS COMMUNITY: 

AN OVERVIEW 9 

SUMMARY OF INSTITUTION-RELATED ECONOMIC EFFECTS 

ON THE BALTIMORE METROPOLITAN AREA 13 

Direct Impact of the Eight Arts Institutions 

on the Business Sector of the Baltimore SMSA 13 

Spending by the Eight Institutions 13 

Employee Residence and Spending Patterns 13 

Audience Residence and Expenditures 14 

Spending by Out-of-Region Audiences 14 

Spending by Guest Artists 15 

Secondary and Negative Impacts on the Business 

Sector 15 

Negative Effects on Business Volume 17 

Summary of Business Effects 17 

Impacts on Local Government 17 

Impacts on Individuals 21 

The Arts and Economic Development 21 

Industrial Location 22 

Executive Recruitment 23 

CONCLUDING POLICY OBSERVATIONS 24 

USER MANUAL 30 

Assumptions and Other Underlying 

Considerations 30 

Direct Impacts on the Local Economy 33 



in 



CONTENTS (continued) 



Page 



Secondary Impacts 

Impacts on Government 

Costs to Local Government 

Impacts on Individuals 

Appendices 

APPENDIX A: Guide to Model and Data Sources 



APPENDIX B: 

APPENDIX C 
APPENDIX D 
APPENDIX E 

APPENDIX F 



Multipliers and Secondary 
Spending Effects 

The Employee Survey 

The Audience Survey 

Total Full-Time Employees and 
Full-Time Equivalents 

Adaptations of the Model for 
Multi-Institutions and Multi- 
Jurisdictions 



40 


49 


58 


65 



68 

79 
81 
84 

86 
88 



IV 



INDEX TO TABLES AND FIGURES 

Page 

T-l A Model to Estimate the Economic Impact of the Arts 5 

T-2 List of Equations 6 

F-l The Baltimore Metropolitan Area 10 

T-3 Eight Baltimore Arts Institutions: Percentage 

Audience from Outside the Region 16 

T-4 Direct Tax Payments to Local Government by Eight 

Baltimore Arts Institutions 18 

T-5 Alternative Estimates of Foregone Property Taxes on 
Real Estate Property Owned or Occupied by the Eight 
Baltimore Arts Institutions, 1976 20 

,T-6 Summary of Economic Effects, 1976 25 

T-7 Summary Data for Eight Arts Organizations in 

Baltimore SMSA, Fiscal Year 1976 27 

T-8 Government Revenues of Eight Arts Institutions, 

Baltimore SMSA, 1976 28 

T-9 Multiplier Values for Baltimore Arts Study 80 



v 



STRUCTURE OF THE MODEL, ITS USE AND ABUSE 

The primary purpose of artistic and cultural institutions 
is not to create jobs, generate business for local entrepre- 
neurs, or boost sales of durable goods. These functions can 
be better performed by a variety of other institutions in 
the public and private sectors. Nonetheless, arts institutions, 
intentionally or not, generate a number of economic effects 
on the local community. 

The model we used to identify and estimate these effects 
consists of 30 linear equations* which we categorized into 
three groups: The letters B, G, and I designate these 
groups of equations which identify, respectively, effects on 
local business volume and expenditures, effects on government 
income and expenditures, and effects on personal income, 
jobs, and expenditures. Tables 1 and 2 schematically present 
the relationships among these equations. 

Within these groups certain equations can be solved 
only by first solving a series of other equations which 
provide needed values. Thus some equations are followed by 
a sub-set (or even sub-sub-set) which are indicated with 
decimal points. For instance, the equation Gl requires, 
among others, the solution of G-l.l and this equation requires, 
in turn, G-l.1.1 and G-l.l. 2. While the numeration of these 
equations may cause the layman to assume that they are 
difficult to solve, in fact the mathematics are quite simple. 

Each set of equations is aimed at describing some 
particular economic effect. For example, in the business 
sector — the "B" equations — arts institutions may directly 
affect local business volume by purchasing goods and services 
from local sources. Those related to the institution — 
employees, guest artists, and audiences — also spend locally. 
Certain equations estimate the total value of these institution- 
related direct expenditures during the fiscal year examined. 
The firms and individuals benefitting from institution- 
related direct expenditures will, in turn, spend a portion 
of this income locally. For this reason, other equations 
estimate the total secondary business volume that eventually 
results from institution-related direct expenditures, for 
example, the expansion of the local credit base eventually 
resulting from institution-related direct expenditures. 

The model then, also estimates economic effects involving 
local government: the "G" equations. To begin with, businesses 
annually pay property tax on their property, equipment, and, 
in some communities, their inventory. Also, inasmuch as 



*This model has been adapted from J. Caffrey and H. 
Isaacs, Estimating the Impact of a College or University on the Local 
Economy (Washington, D.C.: American Council on Education, 1971). 



-1- 



businesses have had to invest in plant, equipment, and 
inventory in part because of direct expenditures related 
to arts institutions, a portion of local business property 
tax revenues is attributable to the institutions under study 
and can be estimated by certain equations. In addition, the 
institutions themselves, as well as their employees, guest 
artists, and audiences, may directly pay a local sales tax 
and their employees may pay local income or real estate 
taxes. These direct tax payments can also be estimated by 
our equations. 

Local government may also receive revenues from state or 
federal sources. As is typically the case when localities 
receive state aid for education, these revenues may be provided 
on a per capita basis so that some equations estimate state and 
federal aid attributable to the examined institutions. Con- 
versely, arts institutions and their employees require govern- 
mental services, and public funds which must be spent to 
provide these services. An estimate can be made for a given 
fiscal year of the local governmental operating costs required 
to service the institutions and their employees. Further, 
government may forego property tax and other revenues due to 
an institution's tax-exempt status. The equations in the model 
estimate these foregone tax revenues. 

The third category, the effect on individuals, is the "I" 
series. Institution-related direct expenditures, together 
with institution-related local governmental expenditures, re- 
present a demand for local goods and services. To meet this 
demand, local businesses not only invest in property and inven- 
tory, but also add personnel or pay overtime, thereby increasing 
payrolls. The model provides equations which estimate these 
secondary effects on individuals. 

The utility of this study and model lies less in its 
precision than in its clarity and scope. We made a concerted 
effort to go beyond past studies and acquire needed data 
through the use of institutional internal accounts, audience 
and employee surveys, and locally available data. As a general 
rule, when we were required by our methods or the lack of data 
to make an assumption, we opted for the most reasonable or con- 
servative, that is, we adopted the assumption which attributed 
the highest negative economic effect or least positive effect 
to the examined arts institutions. 

Consequently, this study differs from previous efforts in 
several respects. Not only has no other study been as inclu- 
sive, but, to the best of our knowledge, prior economic impact 
studies of arts and cultural institutions have not: 

* examined employee and guest artist spending as well 
as audience and institutional expenditures; 



-2- 



* identified the toal of institution-related spending 
made with local firms and not simply assumed that all 
spending was local; 

* identified factors affecting an institution's economic 
impact on a community and established that institutions 
can have different impacts; 

* tried to account for the negative effects on local 
government and business of a community's arts and 
cultural activities to arrive at a picture of net 
cost, if any; 

* examined critically the common premise that the arts 
are important to industrial development and executive 
recruitment. 

In particular, this model's strengths are as follows: 

* it can be adapted to a variety of settings and take 
account of local governmental, social, institutional 
and economic conditions; 

it utilizes data generally available from an insti- 
tution's internal records or from local, state, or 
federal documents; 

* it focuses not only on the institution but also its 
employees, guest artists and audience; 

* it can be used and understood by individuals who have 
no training in economics and the social sciences; 

* it can be used to assess the effects of one institution 
or many; 

it uses as inputs a variety of policy-relevant data 
respecting an institution and its community; 

it identifies negative as well as positive effects: 

We are aware that some readers may draw unwarranted conclusions 
from this study. Therefore, we wish to caution the reader on 
four points. 

(1) It cannot be inferred from this or any other cur- 
rently available "economic impact" study that support 
for the arts, as an economic development strategy, is 
to be preferred over other alternative uses of public 
or private dollars; 

(2) It cannot be inferred that the economic effects 
identified would not have occurred had the examined 
institutions not existed. For example, arts institutions 



-3- 



vie for leisure-time dollars that might have been spent 
in the community even if they were not spent on the arts. 
Conversely, much of the interest in artistic and cultural 
activities is sui generis. In the case of Baltimore, some 
of the audience might have travelled to Washington or other 
cities to satisfy their desire for the arts. In short, if 
specific institutions had not existed, we simply do not know 
whether others would have, or, in any case, the extent to 
which the economic effects noted would not have occurred. 

(3) It cannot be inferred that the eight institutions 
examined in this study exhaust the effect of the arts on 
the Baltimore economy. The model utilized is intended 
to assess the economic effects of institutions. However, 
while the eight institutions studied include the region's 
largest arts institutions, these organizations constitute 
no more than 10 percent of the total arts employment in the 
Baltimore metropolitan area.* 

Further, it can be assumed that arts institutions and 
individual artists and craftsmen residing outside the 
Baltimore metropolitan area purchase arts-related goods 
and services from firms in the Baltimore region. These 
expenditures have not been accounted for. Finally, for 
those interested in artistic and cultural activities, the 
availability of the arts plays a role in determining the 
attractiveness of a community as a place in which to work 
and live. While it is easy to overstate the role of the 
arts in decisions by individuals to remain, invest, or 
relocate to a community, no attempt has been made to 
assess net dollar benefits to the community due to the 
preferences of individuals for the arts. 

(4) It cannot be inferred that economic effects are or 
ought to be important determinants of public policy toward 
the arts. We conclude this report with policy observations 
which include a caution against the inappropriate use of 
"return on investment" criteria in the evaluation of 
alternative public policies toward the arts. 



*For example, census data for 1970 show a total of 
5805 Writers, Artists, and Entertainers, in the Baltimore 
SMSA. Total full-time equivalent employment of the eight 
arts institutions was 404 in 1976, or about 7% of the reported 
1970 total for the region. These represent actors, architects, 
authors, dancers, designers, musicians and composers, painters 
and sculptors, photographers, radio and TV announcers, and 
a miscellaneous category. They exclude individuals employed 
in art galleries, and other arts-related positions. 



-4- 



n 

H 

■H 
> 
■H 

C 



C 
O 

co 
-p 
u 
■d 
cu 
e 



o 


— . 




+ 


U 




H 


o 

+ 




X 


w 




+ 


a, 


X 


co 


+ 


CU 


a 




— 


E 


s 


X 


w 








ii 


II 


II 








>< 


o 


l"3 


cu 


Q 


H 


1 


ro 
1 













^ 


















CQ 


















P5 


















CO 


















\ 


















\ 














05 




a 


















u 














O 


X! 


















o 










03 






Eh 


Eh 


















w 










4-> 




+ 


w 


— - 


^-. 
















cu 










M 






Pi 


^-^ 


-P 
















*- • 










<: 




<: 
en 


+ 


-P 


CU 


j- 


^^ 












CO 




■H 

Eh 






<jj 








— 


. — . 


> 


CO 












CU 










X! 




+ 


CD 


^— .. 


U 


CQ 


0. 










*—. 


o 




+ 






4-> 






Eh 


K 


rd 


Eh 


E 




*—* 




^ 


O 


— 












co 


En 


W 


— 


^^ 


\ 


W 




a 




CU 


Eh 






•H 






«M 


-p 


>h 


05 


CO 


^-^ 


m 


^^ 




w 




o 


\ 


+ 




hJ 






O 


u 






a 


CU 


•*•* 


. — . 




— - 




cu 


u 














(0 


+ 


+ 


E 


05 


^ 


EC 


05 


^—^ 




s 


^^ 


^-^ 


. — . 


+ 






4-> 


Cu 






W 


* — 


05 


cc 


O 


u 


U 


X 


^-~ 


CQ 


-P 











e 


Eh 


•H 






Eh 


\ 




" — 


o 


X 


CQ 


\ 


a 


•H 






rd 


H 


CO 


Eh 


II 


II 


W 


Eh 


+ 


2 


C/l 


w 


W 


u 


^— ' 


CO 






a. 






W 






*-• 


>h 






CU 


— 


■ — 


o 


y—^ 








e 


Sh 


+ 


05 


CU 


X3 


-P 


Eh 


W 


II 




CQ 




s 


u 


+ 






H 









Eh 


Eh 


CO 


— 


CU 




+ 




II 


— -" 


CC 










-p 


X 


II 


W 


W 








co 




II 




s— 


— 


•H 






U 


o 


Eh 




05 


05 


II 


II 


II 


CU 


u 




u 


E 


> 


CU 






-H 


CD 


W 


X 














o 


u 


o 


cu 


< 








e 


CO 


05 


Eh 






Eh 


Eh 


< 




s 


o 


V) 


o 




II 




i— 1 


O 






W 


H 


CM 


CD 


X 


en 


H 




s 


cu 


— 


II 








c 


-p 


II 


05 


• 


• 








• 


II 










CO 




W 





c 






H 


H 








^r 








II 


X 


> 




J 





(1) 


05 




• 


• 








• 


u 








Eh 


CO 




PQ 


w 


e 


o 


H 


rH 


H 


CN 


M 


"5T 


H 


o 


H 


CN 


cu 


Pm 


CO 




<C 




e 




• 


1 


1 


• 


• 


• 


1 




• 


• 


o 








En 


tu 


5-1 

<d 




H 
1 


o 


O 


rH 
1 


rH 
1 


■H 

1 


o 




CN 
1 


CN 
1 












-p 


> 
o 


H 
1 


u 






u 


u 


O 




CM 

1 


O 


rj 


ro 
1 


^3- 
1 


in 
l 






CD 


u 


U 
















o 






O 


o 


o 






-p 




































(0 






^-^ 






























e 






X 






























■H 






Eh 




















+ 










-p 






1 




















i — i 


+ 








CO 






m 


^■^ 


















, — . 


^~> 








w 




> 


CO 

G 


CO 

C 
















> 


CO 


CO 










■p 




+ 


(0 
Sh 

Eh 


>H 














"m 


CQ 

+ 


1 


E 
H 








H 








• 










^-^ 




to 














(U 




rd 


1 












H 




\ 


CU 


CD 


CD 


1 — 1 






T3 




W 




+ 














> 


CQ 


a 


D 


*-^ 













£ 












1 




<c 




Eh 


D 


> 






s 


co 

-p 


+ 


1 


CD 








^.^ 


•H 




*—"' 


+ 


+ 


+ 


CQ 

+ 






< 


o 


tJi 




£ 






,-^ 


W 


£ 




> 


w 














rd 


W 


•H 


— 


. — . 


, — . 


Q 


— 






CQ 


' — ' 


•H 


•H 


CU 








04 




w 




Q 


< 


> 


^-^ 


^-^ 




Eh 




a 


Q 


CQ 








E 


+ 


Eh 


-^ 


O 


Eh 


Eh 


H 


w 




\ 


u 


Eh 


Q 


+ 








M 




— 


IH 


- — 


— 


— 




— 


> 


W 


•H 


r i 


1 r 












cu 


N 


— 


rji 


Iti 


> 


1 


^^ 


c 


— 




^~. 


.-^ 


w 








u 


w 














m 


H 




II 


+J 


T> 


■ — 








o 




II 


II 


ll 


II 


II 


cu 


■rr 




II 




1 


1 


> 


CQ 






-p 


+ 












£ 


• 


+ 




> 


H 


H 


X! 


H 






o 




-H 


CD 


Cn 


rd 


> 




— 




a 


c 


— 


• — 


U 








CD 


■H 


w 


W 


H 


H 


W 






cu 


05 


H 








II 






en 


II 












ii 


II 


P5 

II 






II 






> 






co 














cu 


> 


H 






CQ 






CQ 






CO 


w 


H 


CN 


ro 


^ 


in 


CQ 


CQ 


CQ 


H 


CN 


U 






2 






cu 




















• 


• 














c 




H 


H 


H 


rH 


rH 








T 


T 














■H 




1 


1 


1 


1 


1 








1 


1 














CO 


H 


03 


CQ 


CQ 


CQ 


CQ 


CM 


ro 


T 


CQ 


CQ 


LD 






vo 






P 


1 












1 


1 


1 






1 






1 






CQ 


m 












CQ 


CQ 


CQ 






CQ 






CQ 



CO 




3 




E 




CO 




-p 




cu 




•H 




u 




u 




CO 




X! 




3 




CO 




CD 




+J 




rd 




•H 




u 




Cu 









5-1 




cu 




cu 




rd 




«t 




CO 




CD 




CO 




>1 




H 




rd 




C 




rd 




H 




rd 




C 




O 




•H 




+J 




U 




•H 




T3 




CO 




•H 




5^ 




3 




•n 
■ 




i 

•H 




-P 




iH 




3 




E 






• 


T3 


O 


C 




rd 


X 




•H 


C 


T3 





C 


•H 


CD 


-P 


CU 


3 


CU 


-P 


< 


•H 




-P 


CD 


CO 


CD 


C 


Cfi 


■H 
■ 




1 

•H 


. 


4-> 


V 


H 


CD 


P 


T3 


E 


T3 




rd 


5h 




O 


CD 


Pn 


X! 



_5_ 



Table 2 

List of Equations 

Economic Impacts on Local Business 

Direct Impacts 

B-l Total institution-related local expenditures (E) 
B-l.l Local Institutional Expenditures for Goods and 

Services (E.j ) 
B-l. 2 Direct Expenditures in the Local Community by 

Institutional Employees (E e ) 
B-l. 3 Local Expenditures by Guest Artists (E ) 
B-l. 4 Local Expenditures by Local Audience and Patrons (E a ) 
B-l. 5 Local Ancillary Expenditures by Non-Local Audience 

and Other Users (E v ) 

Induced Impacts 

B-2 Purchases by Local Businesses from Local Sources 

in Support of Institution-Related Expenditures 
in the Local Economy (B ) 

B-3 Local Business Volume Stimulated by Institution- 
Related Income Spent by Local Business 
Employees (BV) 

B-4 Value of Local Business Property Committed to 

Institution-Related Business (BI) 

B-4.1 Value of Local Business Real Property Committed to 

Support Institution-Related Business (RP) 

B-4. 2 Value of Business Inventory Committed to Support 

Institution-Related Direct and Secondary Business 
Volume (Inv) 

B-5 Expansion of the Local Credit Base Attributable to 

Institution-Related Deposits (CE) 

B-6 Local Business Volume Unrealized Due to Institution- 
Related Enterprises (NBV) 

Economic Impacts on Local Government 

G-l Total Institution-Related Local Tax Revenues (GR) 

G-l.l Local Real Estate Taxes Paid by the Institution, 

Its Employees, and Local Businesses Serving Both 
(RETX) 

G-l. 1.1 Local Real Estate Taxes Paid by Institutional 

Employees (RET e ) 

G-l. 1.2 Real Estate Taxes Paid by Local Businesses on 

Real Property Committed to Support Institution- 
Related Business (RET b ) 

G-l. 2 Local Sales Tax Revenues Resulting From Institution- 
Related Direct Expenditures (ST) 

G-l. 3 Local Income Tax Revenues Paid by Institutional 

Employees (YT) 

G-l. 4 State Per Capita Aid to Local Government Attributable 

to Institutional Employees (SA) 



-6- 



Table 2 (Continued) 



G-2 Operating Cost of Government-Provided Municipal 

and Public School Services Attributable to the 
Institution and its Employees (OC) 

G-2.1 Local Governmental Operating Costs (Excluding 

Schools) 

G-2. 2 Public School Operating Costs Attributable to Insti- 
tutional Employees (PSOC) 

G-3 Value of Local Governmental Property Committed to 

Support Services to Employees (GP) 

G-4 Foregone Real Estate Taxes Due to the Institution's 

Tax-Exempt Status (FTX) 

G-5 Value of Local Governmental Services Self-Provided 

by the Institution (SSVS) 

Economic Impacts on Individuals 

I-I Number of Local Jobs Resulting from Institution- 
Related Direct Effects on the Local Business 
Sector and Government (J) 

1-2 Total Local Personal Income Due to Institution- 
Related Direct Effects on the Local Business 
Sector and Government (PY) 

1-3 Durable Goods Purchases Attributable to Institution- 
Related Increases in Total Personal Income (DG) 



-7- 



-8- 



THE BALTIMORE ECONOMY AND ITS ARTS COMMUNITY: AN OVERVIEW 

A quick overview of both the economy and the arts community 
of the Baltimore metropolitan area will put into perspective the 
impact of the eight arts institutions examined in this study. 

As indicated by Figure 1, the Baltimore metropolitan area 
consists of Baltimore City and the five surrounding counties. 
While Baltimore City ranks seventh in population nationally, 
with some 900,000 residents, the metropolitan area, with a 
population of roughly 2.2 million persons, ranks thirteenth 
among SMSA's. (As defined by governmental agencies for the 
collection and aggregation of data, Baltimore City and the five 
surrounding counties constitute a Standard Metropolitan Sta- 
tistical Area, or SMSA. ) 

Major employers in the Baltimore SMSA are concentrated in 
three broad sectors which together constitute a remarkably well- 
balanced economic base: the Port of Baltimore and related 
transportation activities; diversified manufacturing; and business, 
institutional, and governmental services. 

As with other major east coast cities, Baltimore traces its 
economic origin to its suitability as a port. Currently, the 
port is ranked fourth nationally in terms of combined import 
and export tonnage and is the second leading container port on 
the east coast. A recent study has estimated that 26,000 jobs 
are directly related to port activities, while transportation 
and transshipment expenditures associated with the port activity 
pour over $400 million annually into the Maryland economy. * 

As is the case nationally, manufacturing, while significant, 
is of declining importance in Baltimore's total economy. By far 
the single most important individual manufacturing employer in 
the Baltimore SMSA is the vast Bethlehem Steel facility at 
Sparrows Point, claimed to be the largest tidewater steel manu- 
facturing complex in the free world. Some 25,000 to 30,000 people 
work at Sparrows Point both in the steel mill and in the company's 
shipbuilding operation. The size of the Bethlehem Steel work 
force accounts for as much as one-sixth of the total manufacturing 
employment in the Baltimore area; roughly half of these employees 
live in the city proper. 

Other particularly large manufacturing firms include the 
General Motors' Chevrolet assembly plant (5,000 employees), 
Westinghouse (13,000 employees), and Western Electric (8,000 
employees) . In 1950 the garment industry employed as many as 
20,000 people in the Baltimore SMSA. Today there are only about 
12,000 jobs in this sector, and many of these seem threatened by 
the nationwide decline of this industry. 



♦University of Maryland, The Economic Impact of the Port 
of Baltimore on Maryland (April, 1975). 



-9- 




Figure 1 The Baltimore Metropolitan Area 



-10- 



Maturation and expansion of the metropolitan economy 
has produced a surge of jobs in the "services" sectors, 
accompanied by a very substantial rise in government and 
institutional employment. The latter resulted in 70,000 new 
jobs between 1964 and 1970, or about one-half of the total 
regional employment growth in that period. The growth of 
federal and state government and medical and educational 
institutions has been particularly significant. Currently, 
there are some 70 firms in the Baltimore metropolitan area 
with 1,000 or more employees, and there are many times that 
number of smaller firms. All together these firms, large 
and small, employ a total labor force of some 900,000 non- 
agricultural workers, both full and part-time. 

According to the Washington Post , Baltimore City has a 
"growing reputation as a vital, diverse, culturally rich, and 
architecturally exciting city." The city has been an innovator 
and specialist in "urban homesteading" and other strategies to 
encourage the re-use and rehabilitation of old buildings and 
homes. Also, it has mounted one of the country's most ambitious 
renewal programs. It includes: the Charles Center office- 
shop-theatre-hotel complex; the transformation of Baltimore's in- 
town port area into one of the nation's most spectacular urban 
waterfronts; Coldspring, a new town-in-town designed by Moishe 
Safdi; and recent plans for a major renewal of the downtown retail 
district. In November of 1976, the Department of Housing and 
Urban Development recognized Baltimore's efforts with an unpre- 
cedented sixth design award in seven years. 

Baltimore City is unable, under terms of the state consti- 
tution, to annex its surrounding suburbs, with the result that 
it has increasingly become the locus for the region's poor and 
others with high service needs. The efforts highlighted above 
reflect a twenty year strategy to create a culturally exciting, 
physically attractive, and economically viable city in which 
the SMSA's middle class will want to work, shop, and live. 

The metropolitan area as a whole is rich in artistic 
and cultural resources. The region's amateur and professional 
arts activity is extensive. For example, in fiscal 1976, 
the Maryland State Arts Council made grants to some sixty 
organizations in the Baltimore SMSA. Within the SMSA are 
some fifteen institutions of higher learning, including six 
community colleges. There are several non-professional 
theatre and choral groups and at least six dinner theatres. 
Also there are a number of fully professional institutions, 
which are of cultural, if not strictly speaking artistic, 
importance, such as the Maryland Historical Society, the 
Baltimore and Ohio Transportation Museum, the Maryland 
Academy of Sciences, the Baltimore City Zoo, and numerous 
historic sites. In addition, the region is fortunate to 
have the Peabody Institute (a conservatory of music) and the 
Maryland Institute of Art. 



-11- 



The eight institutions examined by this study include 
the core of Baltimore's fully professional arts resources in 
repertory theatre, opera, symphony, dance, and the visual 
arts. They are: Baltimore Opera; Walters Arts Gallery; 
Baltimore Symphony; Morris A. Mechanic Theatre; Baltimore 
City Ballet; Baltimore Museum of Art; Center Stage; and 
Arena Players. Together, these eight institutions received 
more than $2.3 million in federal, state, and local support 
in fiscal year 1976. 



-12- 



SUMMARY OF INSTITUTION-RELATED ECONOMIC EFFECTS ON 
THE BALTIMORE METROPOLITAN AREA 



Direct Impact of the Eight Arts Institutions on the 
Business Sector of the Baltimore SMSA 



This section summarizes and discusses the major findings 
resulting from an application of the model to eight arts 
institutions in the Baltimore metropolitan area. While the 
identified effects are not large compared to many industries 
in the metropolitan area, they indicate that significant 
reductions in the budgets of these institutions would have 
perceptible effects on jobs, incomes, and regional business 
volume. 

Throughout this report, terms such as "local," "the 
Baltimore metropolitan area," and "the Baltimore region" are 
used interchangeably to identify the Baltimore Standard 
Metropolitan Statistical Area (SMSA) , which includes Baltimore 
City and Baltimore, Anne Arundel, Carroll, Harford, and Howard 
counties. 

In testing the model, we treated each institution separ- 
ately as well as identifying, when meaningful, each institu- 
tion's differential effect among the six local governmental 
units that comprise the Baltimore SMSA. Appendix F is devoted 
to a review of the complications associated with multi-juris- 
dictional and multi-institutional analysis. In this report, 
we have aggregated the effects of the eight institutions, while 
reporting them on a total SMSA basis. All figures are for 
fiscal 1976 unless otherwise noted. 

Spending by the 8 Institutions 

In fiscal 1976, the eight institutions spent $5.3 million 
for goods and services, of which 47%, $2.4 million, represents 
purchases from suppliers and individuals in the Baltimore region 
Another $4 million was spent for wages and salaries. Spending 
by employees, audiences, and guest artists is enumerated below. 

Employee Residence and Spending Patterns 

One striking feature is the extent to which the employees 
of the eight institutions live in the city. At least 80% of 
the institutions' professional and administrative staff members 
live in Baltimore City, with the remainder concentrated 
primarily in Baltimore County. Slightly less than half (47%) 
of all these employees are homeowners in the metropolitan area. 
At the same time, a relatively small number (approximately 50) 



-13- 



of children of employees attend public schools in the region. 
(We are unable to determine from our survey information 
whether this is because employee families have fewer children 
of school age than the population at large, or whether arts 
employees use the private school system more extensively. ) 
Employees reported that of $6.7 million of disposable family 
income (net income after deduction of taxes and social 
security contributions), two-thirds ($4.4 million) was spent 
in the metropolitan area. This figure represents one method 
of handling family income in circumstances, such as the 
Baltimore case, where the arts institution provides the bulk 
of household income for most employee households. For a 
discussion of alternative cases, see Section V. 

Audience Residence and Expenditures 

Total local paid attendance at all eight institutions 
during the 1976 season was approximately 718,000, with about 
6% of the patrons coming from outside the metropolitan 
region. The percentage of out-of-region audience determined 
from our audience survey varied substantially among the 
eight institutions, ranging from 2% for the Walters Art 
Gallery and Center Stage Theatre to 14% for the Baltimore 
Museum of Art. 

Local audiences spent, in addition to the ticket price, 
sums ranging from $3.85 to $15.65 per party per visit for 
items such as meals, transportation, parking and babysitters. 
The amount varied depending on the institution and the type 
of performance. As might be expected, attendance at the 
museums entailed the smallest auxiliary expenditures, while 
attendance at the Symphony and the Mechanic Theatre involved 
the highest average supplementary expenditures. (For a dis- 
cussion of the technical problems associated with determining 
auxiliary spending patterns, see Section V. Because many 
persons attend performances and cultural activities in 
couples or groups, we formulated our survey questionnaire to 
elicit average expenditures by party size.) All together, 
local audiences in fiscal year 1976 spent an estimated 
$2,624,601 in addition to ticket and admission fees. 

Spending by Out-of-Region Audiences 

In fiscal 1976, some 43,000 visitors from outside the 
Baltimore region came specifically to use the eight arts 
institutions. These visitors contributed roughly half as 
much as resident audiences to local area spending despite 
the fact that they comprise only 2% to 14% of total atten- 
dance depending on the institution. Out-of-region patrons 
exert a disproportionate economic influence compared to 
local audiences, both because they spend more per visit and 
because a larger share of these visitors (7.5% to 63% depending 
on the institution) spend money at all. 



-14- 



Average per diem expenditures reported by out -of region 
parties ranged by institution from $11.80 to $48.60, yielding 
a total expenditure of $1,891,392 attributable to the drawing 
power of these institutions in attracting out-of-town visitors. 
It is important to remember that this calculation reflects 
expenditures only for those respondents who indicated that 
they came to Baltimore specifically to visit the arts institu- 
tion under study. This percentage ranged from 24% of out -of - 
region respondents at the Walters to 76% of out-of -region 
respondents at the Opera (Table 3) . It should be noted that 
these percentages reflect the presence nearby of the Washington 
metropolitan area. Audience and patrons from Washington, D.C., 
were counted in our survey among the out -of -region respondents 
because they are not technically in the Baltimore SMSA. 

Spending By Guest Artists 

Each year, arts institutions contract with designers, 
directors, conductors, choreographers, featured soloists, 
and others. These non-resident "guest artists" make a modest 
contribution to local spending. The eight examined institu- 
tions reported a total of 1,913 guest-artist days spend in 
the Baltimore region at per diem rates ranging from $30 to 
$40 for a total estimated fiscal 1976 local expenditure of 
$68,247. Our computation of guest artist spending is un- 
doubtedly conservative, since no attempt has been made to 
include members of family or entourages in the total estimate. 

Secondary and Negative Impacts 
On the Business Sector 

These direct expenditures by the institutions and their 
staffs, audiences, guest artists, and out-of -region visitors 
do not capture the full effect of such activities on the 
economic base of the region. Such direct expenditures generate 
second -order effects, as local businesses make purchases of 
their own to support the institutions ' local demand for goods 
and services. Eventually, Baltimore metropolitan region 
businesses purchase an estimated $9.1 million in local business 
volume. In addition, these local firms have invested in $5.7 
million worth of inventory, equipment, and real estate in order 
to service institution-related business. This represents the 
fiscal 1976 value of these assets and not expenditures made in 
1976, although a portion of these assets may have been acquired 
in that year. Expenditures were not necessarily made with 
local firms. 

A portion of business and personal incomes generated by 
institutional activities are deposited with local banks. This 
results in an expansion of the local credit base. We estimate 
that eventually the regional credit base is augmented 



-15- 



TABLE 3 
Eight Baltimore Arts Institutions: Percentage 
Audience From Outside the Region 



% Audience From 
Out-of -Region 



% of Out-of-Region Audience 
Who Came Specifically to 
Attend Institution 



Baltimore Opera 
Walters Art Gallery 
Baltimore Symphony 
Morris A. Mechanic Theatre 
Baltimore City Ballet 
Baltimore Museum of Art 
Center Stage 
Arena Players 



5% 



2 
3 
6 



5 

14 

2 

NR 



76 
24 
31 
58 

45 
34 
36 
NR 



NR = None reported during survey period 



-16- 



by some $3,106,000 as a direct consequence of fiscal 1976 
institution-related deposits. The bulk of this effect 
occurs through the deposits of the institutions themselves. 

Negative Effects on Business Volume 

To the extent that the institutions operate enterprises or 
provide services in competition with local businesses, their 
receipts from these activities should be recognized as a 
substitution for other private business earnings in the community. 
In some instances, however, it may be reasonable to think 
that the subsidiary activities of arts organizations are 
net additions to total business volume in the region, perhaps 
competing with activities outside the area but not reducing 
sales within the region. After examining the auxiliary enter- 
prises operated by the eight institutions in our Baltimore sample, 
we decided not to count any of the $2 80,820 in income from these 
subsidiary enterprises as a net loss to other private sector 
vendors. The bulk of this income was derived from gallery 
and gift shop sales and from concessioned restaurant facilities; 
profits from concessioned restaurant sales go to private business 
anyway. In the case of gallery sales, we assumed that sales 
represent items that were largely unobtainable elsewhere, and 
that, in any case, museums stimulate other private sector 
purchases through a heightened interest in the purchase of art. 
No data is available on which to make an evaluation or assumption 
of the transfers from other recreational, entertainment, or 
educational areas that may be represented by all or a portion 
of the ticket and related expenditures associated with attendance 
at arts events. 

Summary of Business Effects 

On the basis of these estimates, we present a general 
summary of the effects of the eight examined institutions on the 
Baltimore region business sector: institution-related activi- 
ties in 1976 generated about $29.6 million of direct and indirect 
business volume in the region; they accounted for about $5.7 million 
of business real property, equipment, and inventories; and 
they generated about $3 million of additional local bank credit 
in the region. While these figures are not large compared to 
many firms in the private sector, they indicate that signifi- 
cant reductions in the budgets of these institutions would 
have perceptible effects on jobs, incomes, and business volume 
in the region. 

Impacts on Local Government 

Tax-exempt arts institutions have an effect on the fiscal 
status of local governments. We outline here fiscal 1976 tax 
payments to local government attributable to the eight insti- 
tutions in our sample, and we assess their cost to local govern- 
ment. Costs are assessed in terms of foregone property taxes, 



-17- 



unreimbursed municipal services, and the operating costs of 
public schools attributable to the institutions, their per- 
sonnel, and their children. These items clearly do not exhaust 
all effects on local government. They reflect only selected 
impacts which may be traced directly to the institutions and 
their employees. 

Although all eight institutions operate under tax-exempt 
status, they are nonetheless responsible for $151,767 in tax 
payments to the six local governments in the SMSA. The sources 
of these revenues were property taxes, locally retained sales 
taxes, local income taxes, and population-based state aid 
to localities (see Table 4). The figure of $151,767 includes 
only tax payments related to direct , not secondary, expenditures. 
Also, it excludes a variety of user fees paid by employees. 

TABLE 4 

Direct Tax Payments to Local Government by 
Eight Baltimore Arts Institutions 

Real estate taxes paid to jurisdictions in the 
Baltimore SMSA by the arts institutions, their 
employees, and business property devoted to 
servicing the institutions (equation Gl.l) $99,537 

Locally retained sales on institution- 
related business volume* (equation G1.2) 5,062 

Local income tax revenues attributable to 

institutional and other business employees 

(equation G1.3) 27,558 

State aid to local public schools attributable 

to children of institution-related families 

(equation G1.4) 19,610 

TOTAL $151,767 

The institutions also provided municipal-type services 
for themselves, including security services and trash collection, 
with an annual value of about $33,172. 

On the cost side of the ledger, local governments provide 
services for the employees and households of the eight institu- 
tions valued at more than $678,612. Of this, only $30,429 



*In many areas, sales taxes are imposed by state government 
but collected by local government for payment to the state. We 
count here only that portion of sales tax collections actually re- 
tained by the six local jurisdictions in the Baltimore metropolitan 
region. 



-18 



represents the cost of providing public school education for 
the children of arts employees. 

Another cost to local government is represented by the 
value of governmental property necessary to provide services 
to the institutions and their employee households. The current 
value of local government property so committed is estimated at 
$274,138. 

This may not exhaust total costs to government since insti- 
tutional programs may benefit from donated government services 
such as increased police protection and free facilities or 
equipment. 

Finally, we estimate that the value of foregone taxes on 
tax-exempt property owned or occupied by the eight Baltimore 
arts institutions is no more than $100,000 and is more likely 
near $60,000. This range reflects the two alternative assumptions 
cited in Table 5. None of the examined institutions pays 
property taxes. Either they own tax exempt property or they 
rent their facilities. Certain owners from whom they rent do 
pay property taxes while others are tax exempt. Three of the 
institutions occupy land and/or buildings owned by the City of 
Baltimore. Foregone property taxes consist, then, of insti- 
tution owned or rented tax exempt property together with pro- 
perty owned by the City of Baltimore. For the purposes of this 
case study, we will assume that city owned property and buildings 
would have remained in public use in the absence of the insti- 
tutions, that is, that $59,765 more nearly approximates the 
real value of the subsidy provided by the city through property 
tax exemptions. 

It should also be noted that the alternative estimates 
in Table 5 reflect only foregone tax revenues on property 
used by the arts institutions themselves and do not attempt 
to reflect any spillover effects that these institutions may 
have on the value of surrounding (taxable) properties and 
neighborhood cohesion. These spillovers may be both positive 
and negative. For example, theatres stand empty much of the 
time, inviting loitering and vandalism, and some institutions 
create neighborhood parking problems which impose uncompensated 
costs on local residents and businesses. Attempts to estimate 
positive neighborhood effects must be matched by equal attempts 
to measure the negative effects. 



-19- 



I 



TABLE 5 



Alternative Estimates of Foregone Property Taxes on _ 

Real Property Owned or Occupied by the Eight Baltimore I 

Arts Insitutions, 1976 ■ 



j 



Taxable Value* Foregone Property Te 

1. All currently exempt I 
property (land and j 
buildings) would revert 

to tax yielding uses. $ 1,562,300 $ 93,738 , 

I 

2. All city-owned property ■ 

(land and buildings) 

would remain in exempt 1 

uses, but other property [ 

would revert to taxable 
uses. $ 996,080 $ 59,754 i 

I 

Source: Baltimore City assessment records, 1976-77. 

I 

* Total taxable value, which in Baltimore equals 50% of ■ 

market value of land and improvements (buildings) . The 

foregone tax yield on this base is the Baltimore City property j 

tax rate (6%) times the total assessed value. All eight 

institutions are located in Baltimore City; however, had some 

been located in other local jurisdictions, the foregone tax • 

yield from exempt properties would have had to have been I 

calculated for each property at the tax rate levied by the 

jurisdiction in which it is assessed. 



-20- 



Impacts on Individuals 

The economic impact of arts institutions on private 
individuals is largely through jobs and employment opportuni- 
ties. We estimate that 1175 full-time jobs in the Baltimore 
area are produced by the activities of the eight arts organ- 
izations in our sample; 404 of these are directly with the 
institutions, and 771 are created as a consequence of institu- 
tionally related business and government expenditures. Taken 
together the eight institutions are roughly equivalent in 
employment effects to, say, the Coca-Cola Bottling Company, 
Coppin State College, Fidelity and Deposit Company of Maryland, 
or the Howard Research and Development Corporation, each of 
which employs between 400 and 500 persons in the metropolitan 
region. The total employment impact of the eight arts organ- 
izations (1175) is approximately equal to the direct employment 
totals of local firms such as Maryland Cup Corporation, Maryland 
General Hospital, Reads, Eastern Stainless Steel, First National 
Bank of Maryland, IBM, and the Maryland Casualty Company. 

The jobs created, either directly or indirectly, by the 
eight institutions and their combined business transactions 
serve to generate $9.7 million of personal income in the region; 
$4 00,000 of this is spent for durable goods. 

The Arts and Economic Development 

In recent years, advocates of the arts have stressed the 
importance of spinoff economic effects that are not easily 
quantified. In particular, it has been claimed that the avail- 
ability of artistic and cultural activities can be a decisive 
factor in both industrial relocation decisions and in the 
recruitment and retention of executives.* If arts and cultural 
activities have an ancillary role in economic development deci- 
sions, their influence would represent an important additional 
consideration in the development and evaluation of public policy 
toward the arts. We sought to evaluate local and national exper- 
ience with respect to the impact of artistic and cultural ameni- 
ties on industrial development and executive recruitment. In 
doing so, however, we do not mean to imply that public policy 
toward the arts ought primarily to aim at maximum economic 
returns to the community. 



*E.g., The Report of the Governor's Task Force on the 
Arts and Humanities, The Arts; A Priority for Investment 
(Commonwealth of Massachusetts, 1973); The Greater Philadel- 
phia Cultural Alliance, An Introduction to the Economics 
of Philadelphia's Cultural Organizations (Philadelphia, 
1975); Mayor's Committee on Cultural Policy, Report (New 
York, 1974); and the Washington Center for Metropolitan 
Studies, The Arts in Metropolitan Washington; Some Preliminary 
Data on Economics, Financing and Organization (Washington, D.C., 
1975) 

-21- 



Industrial Location 

No hard data is available on the impact of artistic and 
cultural amenities on industrial development and executive 
recruitment in the Baltimore region or nationally. For this 
reason, we sought the judgments of a variety of knowledgeable 
individuals through unstructured interviews. We initially 
contacted local officials to assess their experience. Be- 
cause of the unanimity of their views, we wondered if the 
Baltimore experience as seen by these local and state officials 
was typical, and so we contacted others nationally. 

The twenty individuals interviewed included researchers 
and consultants in plant location matters (3); State of 
Maryland and local governmental officials in Baltimore City 
and the five surrounding counties responsible for facilitating 
industrial development in the state and region (7) ; officials 
of national economic development associations (2) ; represen- 
tatives of chambers of commerce outside the Baltimore region 
who are active in economic development (2) ; and national 
consultants in executive recruitment (6). 

We were struck by the unanimity of the views of these 
knowledgeable individuals. We think it fair to conclude 
from these interviews that the availability of artistic and 
cultural activities can in certain cases be a contributing, 
although rarely a decisive, factor in plant and executive 
location decisions. Those interviewed distinguished the "public 
relations" use of the arts from the role that the arts may 
actually play in corporate decision making. 

The presence of varied and high quality artistic and 
cultural amenities appears to be used by those in economic 
development roles as an important indicator of the general 
level of a community's civility and culture. The presence of 
these amenities is used to suggest that a community is 
progressive, resourceful, concerned about itself, and ener- 
getic. Reference to the arts is used, then, as an important 
indicator of a generally favorable quality of life. 

However, there was universal agreement among respon- 
dents that artistic and cultural amenities by themselves are 
not a determining factor in industrial location decisions. 

The majority of business location decisions involve firms 
in production, assembly, manufacturing, and warehouse distribu- 
tion. These firms vary in their special needs but commonly 
they look to ample supplies of water and electric power, 
convenient site location, availability of railroad sidings, 
adequacy of rail and road networks, and the like. In making 
relocation decisions, firms appear to make nested choices, 
first selecting suitable regions or metropolitan areas and 
then evaluating individual sites with respect to such matters 



-22- 



as property values, tax rates, the characteristics and avail- 
ability of the local labor force, wage rates, the availability 
of utilities, the size of the site, road access, transpor- 
tation network, the availability of financing, proximity to 
raw materials and markets, and the availability of vocational 
schools. In most cases, only when "all things are equal" with 
respect to the business climate will firms give weight to 
quality of life considerations in their decisions. 

Quality of life issues appear to be more important to 
firms that employ highly trained, salaried, and mobile person- 
nel, typically with advanced degrees and to firms where top 
management will have to relocate. Corporate and regional 
headquarters, research and development firms, and government 
facilities are not as dependent on traditional site location 
considerations and, since they must recruit and retain skilled 
and mobile personnel, place more emphasis on quality of life 
issues because of the greater need for concern over employee 
satisfaction. Similar considerations also hold for single- 
owner firms. 

Those interviewed indicated that there are many quality 
of life factors perhaps more important than quality artistic and 
cultural amenities. Artistic and cultural amenities are but 
one element of the total community fabric that includes factors 
such as recreational opportunities, schools, neighborhoods, 
the cost of living, climate, efficiency and performance of 
local government, the environment both man-made and natural, 
the quality of health and educational facilities, and positive 
social conditions. Cultural and recreational opportunities 
are generally viewed as one area of concern, with firms 
interested in the total mix of educational and recreational 
opportunities available to an employee and his or her family. 
Those interviewed generally agreed that quality education 
facilities were particularly important, with research and 
development firms emphasizing proximity to institutions of 
higher learning. Thus, one community's advantage with re- 
spect to cultural resources might be balanced out by another's 
advantage in other kinds of recreational opportunities or 
generally more favorable social conditions. 

However, those interviewed did point out that location 
decisions can hinge on "executive preference," in which case 
almost anything frojKi recreation to artistic amenities to 
climate could prove decisive. At the same time, no one was 
aware of any instances in which location decisions hinged 
on the presence of specific cultural activities or more general 
cultural considerations. 

Executive Recruitment 

In our interviews with executive recruitment consultants 
and major firms in the Baltimore metropolitan area, respon- 



ds- 



dents were in agreement that an increasing number of executives 
emphasize quality of life considerations as much as salary and 
career advancement in deciding whether to relocate in a new 
position. Salary and career opportunities still predominate, 
but over the last two decades there has been a change in 
executive willingness to take a position simply because it 
represented a promotion and increase in salary. Apparently, 
it is becoming more common for executives to ask whether 
their families would also benefit from a promotion or reloca- 
tion. Relocation may represent a major trauma for a spouse 
or children. An increase in salary may be largely eaten up 
by taxes. An executive may have to sacrifice his present 
life-style, for example, the ability to get in a round of 
golf before dinner. 

Those interviewed went on to note that quality of life 
and life-style issues are very much matters of personal pre- 
ference. While few want to live in a place with no cultural 
ambience, this does not mean that executives who are inter- 
ested in artistic and cultural amenities require them to be 
"world class" or to be located in the home community. Access 
to artistic and cultural amenities may be via a more major 
city, or through touring events in the home community. Gener- 
ally, executives were loath to relocate to cities with reputa- 
tions for decay, crime, and a high cost of living. Of special 
importance were such issues as "whether it's a hassle to 
commute to work," education, neighborhoods, housing, recrea- 
tional opportunities, the kind of people with whom the family 
would be socializing. In other words, executive status would 
not automatically suggest a special interest in the arts, and 
arts advocates should not equate "quality of life" with quality 
of artistic and cultural resources. 

CONCLUDING POLICY OBSERVATIONS 

Table 6 summarizes the more prominent economic effects 
of the eight arts institutions on the Baltimore metropolitan 
area. (Relevant equations, calculations, and data sources 
are listed in Appendix A. ) Again, note that direct effects 
refer to expenditures made in fiscal 1976 by the institutions 
and their audiences, employees, and guest artists, while 
secondary effects may not be completely realized within one 
fiscal year. Also, business investment in plant and equipment 
refers only to the current (fiscal 1976) values of property that 
may have been purchased in other years and from non-local 
sources. Finally, we repeat our caveats from Section I. In par- 
ticular, while we have noted that significant reductions in the 
budgets of arts institutions may be of interest to policy 
makers because of the perceptible effects on jobs, incomes, 
and business volume, one cannot conclude that support for the 
arts, given particular economic goals such as the creation of 
jobs, is more desirable than other uses of public dollars. 



-24- 



TABLE 6 



Summary of Economic Effects , 1976 



Fiscal Year 1976 



Total direct expenditures of the 8 institu- 
tions for goods and services $ 5,344,754 

Of which purchased locally 2,405,026 

Employee household disposable income 6,701,479 

Of which spent locally 4,422,976 

Total audience spending (other than ticket 

price) 4,515,993 

Of which local audiences spent 2,624,601 

Of which out-of -region audiences spent 1,891,392 

Spending by guest artists 68,247 

Secondary business volume generated by suppliers 

and their employees 18,499,454 

Current value of backup inventory, equipment, 

and property 5,746,743 

Institutions-related tax payments to local 

government 151,767 

Value of local government services to institu- 
tions-related employees and their households 678,612 

Foregone property taxes on tax-exempt property 59,765 

Total local government contributions to the 8 

arts institutions 1,578,545 

Number of full-time jobs in Baltimore SMSA 

attributable to institutions-related activity 1,175 

Personal incomes generated by institutions- 
related business /volume 9,676,284 



-25 - 



In evaluating and contrasting the contribution of 
individual institutions to the aggregate impact noted in 
Table 6, we are persuaded that institutional type, for exam- 
ple theatre or museum, is less useful for identifying economic 
impact than structural distinctions, such as: the proportion 
of non-salary expenditures made to local suppliers (an insti- 
tution's ability to spend locally is largely determined by 
the size and diversity of the local economy, see Appendix B) ; 
the number and composition of arts employees (guest artists, 
resident troupe, permanent employees) ; the proportion of 
employee expenditures remaining in the community; and local 
and visiting audience expenditures attributable to institu- 
tions. 

The interaction of these factors is idiosyncratic. For 
example, in the case of Baltimore, if an arts employee resides 
in Washington, D.C., his earnings and resultant secondary 
spending would primarily benefit Washington, not Baltimore. 
If this were so, a visiting artist resident in Baltimore for 
a part of a season might have a greater local spending impact 
than the arts employee. Similarly, in the assessment of 
audience expenditures attributable to the arts, it is not suffi- 
cient to know total attendance, since audience spending varies 
substantially according to the residence of patrons (local 
versus out-of-region) and varies significantly by type of insti- 
tution. Also, an institution that relies heavily on contracts 
to guest artists who spend only short periods in the community 
may export a significant proportion of their wage bill. An 
analogous situation will arise for institutions dealing with 
outside suppliers. Table 7 gives an indication of high, low 
and average values of various data associated with the eight 
institutions examined in this report. 

It is also important to note that a significant propor- 
tion of the aggregate local impact of the examined institu- 
tions is due to the fact that, taken together, they received 
$2,320,278, or 25% of their total fiscal 1976 budgets, from 
government. As indicated by Table 8, the bulk of this 
($1,578,545) came from local (city and county) governments. 
The largest portion of the support from local government 
consisted of $1,012,445 provided by the City of Baltimore to 
the Baltimore Museum of Art. Additional sums ranging from 
$12,000 to $266,000 were received from local governments by 
the other institutions. It is important to note that the 
city and counties contributed to other cultural activities 
and organizations not included in our study sample. 



-26- 



H 

PQ 
< 

Eh 























C 

















































•H 
























■p 
























p 
























-p 
























•H 
























-P 
























CO 
























c 














CO CO 










■H 














c c 



































CU 




VD 










u u 










x; 




r- 










-P 4-1 










4-1 




<j\ 




o o o o 






fO tO 














<-t 


Sh 


o o o o 


o\o 




a a, 






00 o o o 




01 






0) 


o o o o 


00 






in 


o 


inoop 




CO 




u 


4-1 C 


*■.**•■. ^ 






o o 


V£) 


<£> 


mooo 




p 




fO 


o 


o r-~ r-n ** 


| 




o o 


• 


• 


K *b w ^ 








cu 


CO -H 


r-H rH r— CM 






o o 


in 


CO 


CM O P- CN 


CO 







>H 


CU -P 


t> rH CN 


o\o 




•» » 


rH 


•^r 


rH in CTl rH 


>i 


4-1 






P 3 


^ ^ *. 


IT) 




•H 00 


</> 


</> 


<H r-i ^-i O 


tO 






rH 


«H 4-> 


CM CO CM 


CM 




O CM 






•. «. 


T3 


>1 




fti 


tO -H 


</> </y </></> 






CN 


1 


1 


r-{ r-i 




rH 




o 


> 4J 














</>-</> v> </> 


o 


rH 




CO 


(0 


i ; i i 






1 1 


m 


o 




r~ 


fO 




•H 


S c 










00 


00 


1 1 1 1 


00 


o 




Ph 


H 


O O 00 






O O 


• 


• 






■H 






J 


O O CN 






O O 


co 


<-{ 


o 


1 


m 




•. 


4-> 


O O rH 






IT) CM 




rH 


o 




•H 




< 


«a X 


■w ^ O * 






». *» 


</> 


V> 


in o o o 


o 


U 




10 


Cn 


O «sT 00 






r~ rH 






v 




CU 




S 


x: -h 


00 CM 












CN 




Oh 




w 


tnW 

-H 


</> </> </> <o- 












</> </> <JY U> 




CO 




0) 


















CU 




u 




















Sh 






























£ 




















£ 




■H 




















•H 




■+J 




















4-> 




rH 










CO CO 










rH 




to 










C C 










fO 


• 


CQ 











H !H 










CQ 


CO 

cu 


C 










-P 4-> 













N 


■H 


CO 








tO tO 
CU Cu 








CO 

>1 


4-> 


■rH 

CO 


CO 



















fO 


CU 




c 


>H -H 




0\° 




o o 


o 


CN 




T) 


£ 


>H 





CU -P 


«3" CN ■** CO 


r- 




o o 


VD 


CO 


00 rH CN in 




tO 


+J 


■H 


> P 


O CM ID CM 


"S* 




o o 


• 


• 


P- N H «* 


co 


o 


Sh 


+J 


O -P 


n cn r^m 






V ■* 


VD 


o 


(N H vc in 


rH 




tO 


ro 


•H 


^ ^ *. ^ 






oo co 


■ty> 


co 


* ^ ^ ^ 


CTi 


>1 


Oh 


N 


rH -P 


00 rH ^T CM 






rH <* 




</> 


O 00 CO 00 


•k 


CU 




•H 


fO CO 


<-\ «a< ^r co 






r- 






CxHO P-> 


rH 


X! 


i-H 


c 


•P C 


Ton 












co co co in 




4J 


rH 


to 


H 


^ ^ ^ 












^ ^ 






tO 


Cn 


Eh 


<Ti ^ LD 












CN r-i 




4-) 




Sh 


-P 


















fO 


T3 


O 


XI 
Cn 


V> 












</></></></> 




x: 

4-> 


fO 


CO 


•H 






















4-1 


H 


















en 


CO 


U 




















c 


P 


< 




















•H 
4-> 




-H 


4-> 
















T3 




CO 


4-1 


XI 










* 






CU 




u 


P 


en 










CO 




1 


> 




•H 


4-> 


•H 










C 


* 


m 


■H 




ts. 


-rH 


w 










O 


rH * 


4-> 


CU 




c 


4-> 






— » 






Sh 


(0 CU 


1 CU 


o 




■H 


CO 


>H 




to 


U CO 


^ 


4-> 


o u 


4-> M 


cu 






P 


o 




CD 


O C 


CU 


(0 


-H 


P 


PC <o 




CO 


•H 


m 




•H 


X3 


u 


Cu 


rH >H 


O -H 


r- -^ 




rH 








CO U 


fO -H 


c 




Ph 


Eh 


co a\ >i 




fO 


-P 


to 




0) to 


rH 4-> 


fO 


p. 


^ 


U 


CU rH 4-) 




P 


x: 


-p 




SH rH 


1 3 


'a 


o 


CU 4-> 


Q) C 


P c 




T3 


Cn 


to 




P fO 


C -P 


c 


■H 


Oh CU 


Oh tO 


C - P 




-rH 


■H 


Q 




•P CO CO 


-H 


cu 


Cn 


^ 


Xi 


CU CO 


4-> 


> 


CU 






•H 0) 


2 4-> 


-p 


CD 


CO o 


CO Eh 


> c o 


CO 


•H 




>i 




H3 c3 U 


CO 


-p 


Pi 


CU -H 


CU 


cu o 


CU 


•o 


rH 


u 




C -H 


CD C 


< 


1 


r4 H 


U U 


Ph -H c3 


P 


c 


rH 


to 




CU CO > 


Cn H 




4h 


P 


P 


4-) 


o 


■H 


(0 


£ 




Qj CU Sh 


tO 


T3 


O 


4-1 C 


+j s: 


4J P >i 








£ 




X tn d) 


-p <4H 


•H 


1 


•rH fO 


■H 4-1 


C 4J 4-> 


MH 


>i 


Sh 


P 




H fO W 


C 


tO 


4-J 


T3 rC 


T3 O 


CU -H -H 





rH 


CU 


CO 




S 


cu 


rH 


3 


C H 


C 


e 4-) o 




C 


> 






-P -— ca 


u u < 




O 


CU 


CU >i 


C CO rH — 


Sh 












U 


rH CU CO 


rH 


p 


Oh rH 


Oh 4-1 


Sh C tO 


CU CO 










CD U CO CO 


cu >h S 


tO 


o <-\ 


X CU 


X Sh 


CU H SH CU rH 


X5 >^ 


CO 


T3 






u o 'a cu 


rl 3W 


O 


CO to 


H X3 


W to 


> CU 4J tO 


£ to 


CU 


CU 






■H X! X 


-P 





tO 4-1 


4J 


Ph 


O 4-J T3 fO U 


p a 


TJ 


en 






Q tO fO 


CU -H C 


rH 


CU o 


CU O 


CU 


OX d)+J o 


2 


P 


fO 






rH CJ Eh 


CHT3 -H 




C/3 Eh 


Cn 


Cn C 


tJifeCOhl 


4-) 


r-i 


Sh 






rH 


to c 


rH 




tO >i 


tO 


rH -H 


rH CO 


O 


CU 






fO 


5H CU CU 


10 


UD 


rJ 4-> 


Sh -h 


fO H 


tO -H 


C 


> 






■P 


CU PhT5 


-P 


r> 


CU Sh 


CU Cn 


4-> 


4-) -P 


H 


< 






O 


> X fO 


o 


c^ 


> to 


> CU 


>i 


O Sh 


* 


* 






Eh 


< H S 


Eh -H 


<C Ph 


< Ph 


Eh X! 


Eh <C 




* 



-27- 



TABLE 8 



Government Revenues of Eight Arts Institutions 

Baltimore SMSA, 1976 



Baltimore Museum 
of Art 

Morris A. Mechanic 
Theatre 

Arena Players 

Center Stage 
Theatre 

Walters Art 
Gallery 

Baltimore Opera 

Baltimore 
Symphony 

Baltimore 
Ballet 



Federal* 



$56,401 



State 



Local** 



7,500 
75,000 



76,000 
150,000 
3,220 



$44,112 $1,012,445 



2,500 



72,000 

10,000 
31,000 

197,000 

17,000 



12,000 

66,000 

157,500 
44,000 

266,000 

24,600 



TOTAL 



$368,121 



$373,612 $1,578,545 



SOURCE: Institutional estimates, Auditors Reports, 1976. 

*Excludes CETA monies. 

**Local includes contributions from Baltimore City and each 
of the five surrounding metropolitan counties. In 1976, 
$120,000 was contributed by Baltimore County and $5,000 
by Anne Arundel County to one or more of the eight arts 
organizations located in Baltimore City. 1977 was the 
first operating season of the Mechanic, and all figures 
are Mechanic estimates. 



-28- 



Consideration of economic effects has a role in the 
development of cultural policy. However, community planners 
and arts advocates will want to consider the broader community 
effects of artistic and cultural activities and not rely solely 
on narrowly circumscribed "return on investment" criteria in 
the development of public policy toward the arts. The following 
examples illustrate the inappropriate use of economic impact 
analysis: 1. Inasmuch as the economic impact of individual 
arts institutions varies with the factors noted earlier, narrow 
economic considerations could lead to differential funding 
among individual arts insitutions, based in part on arbitrarily 
applied economic goals. 2. In addition, it is clear that 
strategies pursued solely to increase the long run economic 
impact of particular arts programs might lead directly to a 
decrease in the quality of arts activities. One way to increase 
the local economic impact of arts activities would be to use 
only local talent and to buy only from local suppliers. However, 
even where practical, this sort of parochialism would run 
counter to the important objective of enabling local residents 
to experience a variety and quality of art forms generated 
outside their local communities. Also, it is worth noting that 
the disadvantages of such a strategy would be unevenly distri- 
buted, falling more heavily on smaller, less heterogeneous 
communities. 3. Similarly, maximum economic effects would 
suggest emphasizing programs which attract visiting audiences, 
who spend more in the community per attendance than local 
patrons, and it would suggest audience-building strategies 
aimed solely at people of means. Yet many communities have 
thought it important to provide cultural experiences for other 
segments of the population, such as the elderly and school 
children, unlikely to contribute much in the way of ancillary 
expenditures. 

While economic considerations can be important to the develop- 
ment of cultural policy, these examples highlight the potential 
consequences of placing inappropriate emphasis on "return on 
investment" criteria. 



-29- 



USER MANUAL 

Earlier in this report (Tables 1 and 2), we presented 
the thirty equations comprising the model used in this study. 
Now we will describe each equation in some detail, indicating 
necessary data sources and, where possible, alternative stra- 
tegies for solving particular equations. The mathematics 
are not complex. A number of equations — B-l, B-4, G-l, 
G-l.l, G-l. 4, and G-2 — simply add up the estimates produced 
by other equations. Certain general equations require the 
solution of a sub-set of other equations. In these cases, we 
first describe the general equation along with the economic 
effect it yields when solved. Then we take up in order each 
factor of this general equation, describing in turn the equa- 
tion used to determine that factor. Thus, B-l leads us to a 
series of equations on which it depends, B-l.l through B-l. 5. 
We proceed in a similar manner with regard to sub-sub-sets. 
In addition to our description here, the user may also wish 
to look at Appendix A where we present the data sources, 
equations, and calculations of the Baltimore study. As we 
proceed, the reader is urged to refer to Table 1, which sum- 
marizes the relationships among equations. 

Assumptions and Other Underlying Considerations 

Each of the thirty equations comprising the economic impact 
model used in the Baltimore study generates an estimate of a 
separate economic impact on businesses, government, or indivi- 
duals. All of the impacts are estimated in dollar terms except 
the employment component, equation 1-1, which produces an 
estimate of the number of jobs generated by institution-related 
activities. 

In interpreting the resultant estimates, the user may 
wish to add together some of the separate dollar estimates as 
follows: 



Total estimated audience expenditures 
(other than ticket price) for local 
and out-of-region audience 



B-l. 4 + B-l. 5 



Total estimated local expenditures 
for staff and guest artists 



B-l. 2 + B-l. 3 



Net direct and secondary institution- 
related business volume 



(B-l + B-2 + B-3) 
B-6 



Net public sector costs to local 
government (Subtract G-5 only if 
it can be assumed that government 
would have incurred the expense) 



(G-2 + G-3 + G-4) 
(G-5 + G-l) 



-30- 



We should also point out that the value of business in- 
vestment, B-4, is a measure of asset value at a given point in 
time, not a flow of expenditures over a period of time. For 
this reason, it should not be added to the outputs of the other 
B equations, which represent flows over the fiscal year 1976. 
Similarly, in aggregating local government impacts the user 
will want to consider carefully whether it is desirable to 
focus narrowly on the net balance of governmental revenues to 
governmental budget expenditures — which is all that is allowed 
using the model — as opposed to returns to government and "the 
community" more broadly conceived. 

The model goes beyond previous efforts in the wealth of 
data it requires, including the use of employee and audience 
surveys. When our methods or the lack of data required us 
to make assumptions, we opted for the most conservative, i.e., 
adopted the assumption which attributed the highest negative 
economic effect or least positive effect to the examined 
institution. 

For example, in computing out-of -region audience expen- 
ditures, we assumed that those out-of-town visitors who used 
the institution, but were visiting the metropolitan area 
primarily for other reasons, might have incurred some or all 
of the daily expenditures they reported in any case. Therefore, 
our calculations utilize only the daily expenditures of indivi- 
duals who reported that the primary purpose of their visit was 
to use the examined institution. 

Various equations rely on estimates of household income 
and other facts about employee households. Focusing on the 
household rather than the individual employee is appropriate 
in those circumstances when it is not unreasonable to suppose 
that institutional employee households would not have been 
in the community except for the presence of the institution. 
Practicality suggests that in the absence of data to the 
contrary, this assumption be made whenever the majority of 
employee households derive the majority of their income from 
the institution. When this is not the case, employee income 
must be substituted for household income in equations B-1.2 and 
G-1.3. However, equations B-5, G-l.1.1, G-1.4, G-l.4.1, G-2, 
G-2.1, G-2. 2, and G-3 were intended to be used on a household 
basis only. These equations identify economic effects that 
are difficult to meaningfully attribute solely to an employee 
as opposed to his total household. For example, the ability 
to own a home or save may be a function of the collective 
earning ability of the household. This is reflected in esti- 
mated property taxes and expansion of the local credit base. 



-31- 



In calculating the value of foregone property taxes on 
institutions-owned/occupied property, we reviewed the impact 
of alternative assumptions (see Table 5) concerning the 
possible uses of currently tax-exempt property, but did not 
attempt to evaluate positive or negative effects, if any, 
that currently exempt properties may have on surrounding 
property values. 

It should be noted that several equations represent con- 
cessions to practicality. For example, in calculating the 
values of local business property committed to support 
institution-related business, we assumed that a percentage 
increase in demand prompts a similar percentage increase in 
investment in real property. This assumption is necessary 
because there is no way to determine which firm or institu- 
tion may be the marginal user that prompts the need for increased 
investment in real property. Other concessions to practicality 
are noted in the discussion below. 

There are several points to consider with regard to the 
sources of data. The user must make a determination at the very 
start of the work as to the definition of the "local" area of 
interest. In the Baltimore study, the local community of inter- 
est was defined to be the Baltimore standard metropolitan 
statistical area (SMSA) , composed of Baltimore City and the 
five surrounding counties. While some of the calculations 
required data that varied by jurisdiction, for example, local 
property tax rates — the final estimates yielded by the 
equations identify area-wide SMSA impacts. For details of 
adaptations of the equations required for multi- jurisdictional 
analysis, see Appendix F. 

The user will note that the arts impact model in the 
Baltimore study required data on audience expenditures , as 
well as a wealth of data about the institution and its employee 
households. Audience and confidential employee surveys were 
used. In some cases, it may be possible to use information 
on the community's general population where it is not possible 
to conduct an adequate survey of institutional staff. Various 
alternatives are explored in the description of specific equa- 
tions and in appendices devoted to audience and staff surveys. 

What this means is that approaches to solving certain 
equations will vary depending on locally available data. 
When equations utilize census or other commonly available 
data, references are provided. However, the model requires 
a great deal of local data, usually collected by local or 
state tax divisions, planning departments, budget officers, 
assessment bureaus, and the like. Because many of the 
equations are interconnected, researchers should carefully 
determine whether required data are available, bearing in mind 
the alternatives described in the manual, before committing 
themselves to assessing institutional impact through the use 
of the model. 



-32- 



Direct Impacts on the Local Economy 

We begin our description with those equations relating 
to direct impact on the local economy. These include ex- 
penditures made in a given fiscal year by the institution, 
as well as its employees, guest artists, and audiences. 



Equation B-l 
E 
Institution-Related Local Expenditures 

E = E ± + E e + E g + E a + E v 

Ei = Local expenditures by institution (B-l.l) 
E e = Local expenditures by employees (B-l. 2) 
Eg = Local expenditures by guest artists (B-l. 3) 
E a = Local expenditures by local audience and patrons (B-l. 4) 
E v = Local expenditures by non-local audiences and other 
users (B-l. 5) 

Equation B-l sums the five separate direct expenditure 
effects identified by equations B-l.l through B-l. 5. This 
is the total dollar value in a given fiscal year of goods and 
services purchased by the institution itself, by employee 
households, by guest artists, by local audiences and other 
users, and by non-local visitors. 



-33- 



Equation B-l.l 

E i 
Local Institutional Expenditures for Goods and Services 

Ei = z(TE. - W - Transf. - T__) 

z = Percentage of expenditures for goods and services 

made to local firms 
TEj_ = Total expenditures for the fiscal year under consideration 
W = Gross compensation, including FICA, federal withholding, 

state withholding, unemployment compensation, and 

contributions to pension plans 
Transf. = Transfer of funds from one internal account to another 

that might appear as an expenditure and thus distort 

actual total expenditure 
T x = Taxes and fees to government other than those appearing 

in W above: sales taxes, real estate taxes, or other 

payments and fees to government at all levels. 

Institutions purchase goods and services from both local and 
non-local firms. B-l.l is used to identify expenditures for goods 
and services made directly by the institution with local businesses, 
the first factor in determining institution-related local expen- 
ditures. 

Subtract from an institution's total expenditures all 
payroll expenditures and payments to government, leaving only 
expenditures for goods and services. Then, determine total 
expenditures with local firms. This can be done in two ways. 
Draw a random sample of institutional purchase orders in 
each major expenditure category, noting total dollar expenditures 
made in that category with local firms as compared to those 
made with outside suppliers. This yields a proportion, z, spent 
locally for each major expenditure category . Total dollars 
spent in each category are multiplied by each z, and the 
resulting local expenditures totalled to determine E^. 

If the number of vendors with which the institution 
deals is relatively small, there is a more direct procedure. 
Simply examine the auditor's report by category of expenditure, 
excluding wage-related expenditures and payments to government. 
Typically, for each major category there is a handful of 
vendors with whom an institution does the bulk of its business. 
Simply identify the vendors that are local and add up the total 
spent with these local firms. Some arts organizations have 
sophisticated and computerized accounting procedures and are 
able to identify each vendor, its address, and the total ex- 
penditures with that vendor. These institutions will find it 
quite easy to employ this more direct procedure. An extremely 
high percentage of institutional expenditures are often made 
with a relatively small number of firms. The fiscal officer 
responsible for disbursements should then be able to get a 
good estimate of total dollars spent locally. 

-34- 



Equation B-1.2 
E e 

Direct Expenditures in the Local Community By- 
Institutional Employees 

E e = (f) (W en + -5Y ns ) 

E e = Direct expenditures in the local community by institutional 

employee households 
f = Percentage of employee household income spent locally 
W = Total net institutional salaries 
Y = Employee household non-salary income: income from rents, 



ns 



dividends, interest, and other sources 



B-1.2, identifies the second factor important to determining 
institution related local expenditures. It is used to identify 
total expenditures in the community attributable to employees 
in circumstances, unlike the Baltimore case, where institutional 
salaries constitute less than one-half total employee household 
income. In circumstances such as the Baltimore case, where 
household income is primarily from institutional sources, 
substitute total household income (Y) for (W en + .5Y ns ). Note 
the discussion of these questions at the beginning of this 
User Manual. In particular, only use (Y) , total employee 
household income, when the majority of employee households 
derive the majority of their income from the institution. 

To solve equation B-1.2, first identify W # total net 
institutional salaries, and add 1/2 of total employee house- 
hold salary income. Then multiply by f, the percentage 
employees spend locally. The salary income of other family 
members is not considered because there is no reason to believe 
that this income is dependent on the existence of the institu- 
tion. However, non-salary income is due to the enterprise of 
individuals who may be in the community only because a family 
member is an institutional employee. Therefore, B-1.2 arbi- 
trarily attributes 1/2 of all non-salary employee household 
income to the institution. 

To identify the percentage spent locally, employees can 
be asked, through a confidential survey (see Appendix C) , to 
report this figure as well as total non-salary family income, 
if needed. 

In solving B-1.2, it will be important to distinguish 
full-time from part-time employees. Net wages to part-time 
employees will be included in total net institutional salaries, 
W en . However, it may be argued that the non-salary income 
of part-time employees should not be considered inasmuch as 
it is unlikely that the household whose enterprise resulted 
in this income resides in the community only because of a 
family member's part-time job at the institution. 



-35- 



Equation B-l. 3 

Eg 

Local Expenditures by Guest Artists 



E 



g = g(GD) 

E Q = Local expenditures by guest artists 

g = Average daily expenditures by guest artists 

GD = Total guest artist days in the community 

Guest artists and their entourage have hotel and restau- 
rant bills and make other local expenditures. B-l. 3 is used 
to identify the total amount they spend, the third factor used 
in determining institution-related expenditures. 

"Guest artist" refers to individuals who are not permanent 
residents of the community or considered, for payroll purposes, 
as employees. Typically, they are in the community for a short 
period of time in order to take part in a specific program. 
Guest artists can include lecturers, conductors, soloists, 
and so forth. It is not necessary for the guest artist to be 
paid by the institution in order for their local expenditures 
to be counted. 

The value g, average daily expenditures by guest artists, 
is determined by dividing the total dollars guest artists re- 
port that they spend in the community by total days they report 
staying in the community. Presumably the guest artists avail- 
able to the researcher will be those appearing at the institu- 
tion during the period in which the researcher is gathering 
data for the economic impact model. These guest artists com- 
prise a sample of the entire year's guest artists. They can be 
asked to complete a confidential survey citing the length of 
their stay in the community and the amount spent. (It is conve- 
nient to simply add a separate set of questions for guest art- 
ists to the employee survey; see Appendix C . ) Responses col- 
lected may be assumed to be typical of average daily expendi- 
tures by all guest artists. 

GD is determined by multiplying the total number of guest 
artists by their total days in the community. (This informa- 
tion is available from institutional internal records.) B-l. 3 
is then solved by multiplying average daily local expenditures 
by the total number of guest artist days in the community. 

Some institutions may not care to ask a guest artist to 
tell them how much he or she typically spends while in the 
local community. In this case, some estimate should be made 
based on institutional knowledge of guest artist accommodations 
and so forth. When a per diem is paid, the institution may 
suppose that the guest artist spends all of the per diem locally, 
but not more; or the institution may have information on the 
basis of which to make other assumptions. 

-36- 



A combined approach is probably best if an institution 
plans to sample a limited number of guest artists, for example, 
those appearing during the data-gathering period, or if the 
institution expects only a limited number of replies by 
guest artists. 

Institutions preferring to rely on their own best estimate 
of guest artist expenditures should take into account all 
likely expenditures. This is especially true when an institution 
utilizes a guest artist for a period of several weeks, for 
example, if the artist is part of a resident troupe. In this 
case, it is typical for the arts organization to facilitate the 
rental of an apartment, or the arts organization may rent 
apartments on a yearly basis which are sublet to such artists. 
In any case, it is the artist who is paying the rent out of 
his/her fee. 



-37- 



Equation B-1.4 

E a 

Local Expenditures by Local Audience and Patrons 

Excluding Admission 

E a = a(TA) 

E a = Local expenditures by local audience and patrons 

a = Average expenditure per attendance (excluding admission) 

TA = Total attendance 

B-1.4 allows us to determine the fourth factor in 
institution-related expenditures, the money spent locally by 
local audiences aside from admissions. Multiply a, the average 
expenditure per attendance (excluding admission) by the total 
attendance. 

Average expenditure per attendance by local audience and 
patrons must be derived from an audience survey. As discussed 
in Appendix D, a particularly thorny problem arises in designing 
a survey instrument which can accurately elicit audience ex- 
penditures on a per person basis. Individuals commonly attend 
arts performances in parties of two or more and there is con- 
siderable danger that researchers may misjudge total audience 
expenditures if average individual responses are utilized to 
make per person expenditure estimates. 

An alternative is to ask respondents to report the number 
of persons in their party and the total expenditures of the 
entire party so that values for a can be constructed for parties 
of one, two, three, and so forth, and the total attendance size 
figures, TA, weighted by party size as well. The sample data 
for Baltimore indicate that the distribution of audience by 
party size varies significantly by type of cultural institution, 
so that a stratified approach becomes more important where 
a multi-institution analysis is being performed. 



-38- 



Equation B-1.5 

E v 
Local Expenditures by Non-Local Audience and Other Users 

E v = v(TVD) 

E v = Local ancillary expenditures by non-local audience and 

other users 
v = Average daily per party expenditures by non-local audience 

and other users (excluding admission) 
TVD = Total annual visitor-days by non-local audience and other 

users 

This equation provides the last factor in describing di- 
rect institution-related expenditures. B-1.5 is used to deter- 
mine the amount spent in the community by visitors and other 
non-local individuals in association with their attendance 
or use of local artistic and cultural institutions. 

Multiply the average per party ancillary expenditures by 
total non-local audience visitor-days. 

The values v and TVD can only be determined by conducting 
an audience survey in which non-local individuals are asked to 
report: total party expenditures in the local community; whether 
they and their party are in the community specifically to use 
the institution; and total days in the community (see Appendix D) 

This survey will distinguish between two types of local 
expenditures by non-local audiences: one, the local expendi- 
tures of those who are visiting the community primarily because 
of their interest in a particular institution's programs; and 
the other, the expenditures of those who might have come to the 
community had the institution not existed, but who happen to use 
the institution while in the community. A decision to visit a 
locale may include a decision to visit a particular institution; 
this does not, however, tell us that a person would not have 
chosen to come to a community in the absence of the institution. 
So, while it may be informative to identify the percentage of 
non-local users who had decided prior to visiting a community 
to visit also a particular institution, this does not mean that 
the money they spent during their stay or in association with 
their use of the institution would not have been spent in 
the community had the institution not existed. 

Therefore, in the interest of being conservative, our pro- 
cedure attributes to the institution only the expenditures made 
by those whose principal reason for being in the community is 
their use of the institution. However, information on the total 
percentage of non-local users is important because it suggests 
that the institution is part of what makes the community attrac- 
tive as a place to visit and, further, that the institution is 
helping to favorably advertise the community to others. Ulti- 
mately, these factors can translate into economic terms. 

-39- 



Secondary Impacts 

Equation B-l estimates economic effects directly related 
to the institution as represented by the expenditures in a given 
fiscal year made by the institution, its employees, guest 
artists, and others. In turn, these direct economic effects in 
local business generate second-order effects as local businesses 
make purchases of their own and pay salaries in order to support 
institution-related demands for goods and services. The next 
seven equations identify particular secondary effects. Several 
utilize economic coefficients or multipliers. These are dis- 
cussed in Appendix B. 

Equation B-2 

BP 

Purchases by Local Businesses From Local Sources in Support of 
Institution-Related Expenditures in the Local Economy 

BP = (m p - 1) (E) 

BP = Purchases by local businesses from local sources in support 

of institution-related expenditures in the local economy 
m p = Repurchase coefficient for the local business sector 
E = Institution-related direct expenditure in the local 
community (See B-l) 

E, which is determined by equation B-l, represents institu- 
tion-related direct impacts on the local economy: expenditures 
by employees, guest artists, out-of-town and local audiences, 
and the institution itself. In order to meet the demand for 
goods and services represented by E, local businesses make addi- 
tional purchases of their own. The total of these secondary pur- 
chases made by local businesses from local suppliers is of 
interest. 

You will be using a standard economic technique known as 
multiplier analysis in which initial volume of spending (E) is 
multiplied by a respending co-efficient (mp) , yielding BP, the 
total eventually spent by local firms as a consequence 
of E. Values for mp reflect one's knowledge of the size and 
diversification of the local market area. The larger and more 
diversified the local economic base, the less will local 
businesses have to turn to outside suppliers to meet their 
needs. Thus, firms in large metropolitan areas are more likely 
to be able to meet their needs by turning to local suppliers, 
while businesses in small towns may have to turn more frequently 
to suppliers located elsewhere. 

BP is an estimate of secondary purchases by local firms. 
In equation B-2, 1 is subtracted from m in order not to 
count direct expenditure, E, as part of p BP. Appendix B cites 
typical values for m p , and briefly explains the technique 
of multiplier analysis and development. 



-40- 



Equation B-3 

BV 

Local Business Volume Stimulated by Institution-Related Income 

Spent by Local Business Employees 

BV = (.45) (E) (iru-1) 

BV = Local business volume stimulated by institution-related 

income spent by local business employees 
m^ = Respending coefficient for individuals 
E = Institution-related direct expenditures in the local 

community (see B-l) 

The previous equation, B-2, identifies total secondary 
institution-related purchases made by local firms from local 
sources. The employees of firms directly benefitting from 
institution-related business volume receive a portion of 
it as wages, and these wage earners in turn buy goods and 
services from local businesses. It is estimated for all 
communities that 45% of E, institution-related local expendi- 
tures, is received as income by the employees of local firms. 
Equation B-3 estimates the additional local business volume 
attributable to these employees. 

Multiply E (from equation B-l) by 45% to estimate 
institution-related direct expenditures received as income 
by the employees of local businesses. Multiply also by m- , 
the respending coefficient, which estimates the proportion 
that is eventually respent locally for goods and services. 
Values for m^ are based on national data (see Appendix B) . 
As noted in the discussion of equation B-2, m^ is reduced 
by 1 in order not to count direct expenditures, E, as part of 
BV. 



■41- 



Equation B-4 
BI 

Value of Local Business Property Committed to 
Institution-Related Business 

BI = RP + Inv 

BI = Value of local business property committed to institution- 
related business 

RP = Business real property committed to support institution- 
related business (see B-4.1) 

Inv = Business inventory committed to support institution-related 
business (see B-4. 2) 

Firms invest in real property and inventory to support the 
demand for goods and services. Institution-related direct 
expenditures constitute such a demand; and the equations 
B-4.1 and B-4. 2 estimate, respectively, the values of local 
business real property (RP) and inventory (Inv) , committed to 
support institution-related business. B-4, then, sums up the 
values identified by equation B-4.1 and B-4. 2. 

B-4 estimates the current value of real property and 
inventory and not current expenditures made in the examined 
fiscal year, although a portion of these assets may have been 
acquired in that year. Expenditures were not necessarily 
made with local firms. 



-42- 



Equation B-4.1 

RP 

Value of Local Business Real Property Committed to Support 

Institution-Related Business 

RP = (E/TBV) (AV/ar) 

RP = Value of local business real property committed to 

support institution-related business 
E = Institution-related direct expenditures in the local 

economy (see B-l) 
TBV = Total local business volume (total local retail sales + 

total local wholesale sales + the value added to raw 

materials by local manufacturers) 
AV = Total assessed valuation of business real property 
ar = The ratio of assessed valuation to full market value 

B-4.1, which provides one of two factors needed for B-4, 
assumes that the proportion of total local business real 
property committed to servicing institution-related direct 
expenditures is identical with E/TBV, or institution-related 
expenditures as a percentage of total local business volume. 

This procedures assumes that a percentage increase in 
demand prompts a similar percentage increase in investment in 
real property, a necessary assumption since there is no way to 
determine which firm or institution may be the marginal user 
that prompts the need for increased investment in real property. 
Consequently, the only available procedure is to average the 
value of real property over all firms in proportion to their 
demand. 

To determine TBV , data are available from the Census 
Bureau as well as from the local planning department or 
department of economic development. Consult the Bureau of the 
Census publications, Retail Trade Area Statistics , Wholesale 
Trade Area Statistics , and the Census of Manufacturers . 
At this writing, the latest data available from these 
documents are for 1967. Thus a projection must be made by the 
following procedure. Due to the expansion of the economy and 
inflation, TBV is much higher now than in 1967. Assume that 
the increase in TBV is in direct proportion to the increase from 
1967 in local sales tax receipts. If there is no local sales 
tax, assume that increases in state sales tax reflect increases 
in local business volume. In areas where there is only a state 
sales tax, the state agency may have identified total tax reve- 
nues contributed by the local community. In any case, this 
percentage increase in sales tax receipts can be applied to TBV 
1967 to yield an estimated current TBV. Be sure to adjust for 
any increases in the sales tax rate in the years since 1967 that 
might distort the calculated percentage increase. 



-43- 



AV is not total local assessed valuation; it refers to 
business property only. Further, in many communities, the 
assessed valuation (the value of property for tax purposes) 
is less than full market value; and the local tax office may 
only report assessed valuation. Full market value can be 
determined by dividing AV by ar, the percentage of full mar- 
ket value used in determining assessed valuation. When AV 
is 100% of market value, ar is 1. 



-44- 



Equation B-4.2 

Inv 

Value of Business Inventory Committed to Support 
Institution-Related Direct and Secondary Business Volume 

Inv = ir(E + BP + BV) 

Inv = Value of business inventory committed to support 

institution-related direct and secondary business 

volume 
ir = Local inventory-to-business volume ratio 
E = Institution-related direct expenditures in the local 

community (see B-l) 
BP = Purchases by local business from local sources in 

support of institution-related expenditures in the 

local economy (see B-2) 
BV = Local business volume stimulated by institution-related 

income spent by local business employees (see B-3) 

To solve B-4.2, the second factor needed for B-4, the 
local inventory-to-business volume ratio is multiplied by the 
sum of E + BP + BV, the sum of direct . and indirect institution- 
related expenditures in the community. 

There is a direct relationship between gross sales and the 
value of inventory. The value ir is the local inventory-to- 
business volume ratio, calculated as the ratio of the value of 
end-of-year inventory to gross sales; ir, then, is the value of 
inventory as a percentage of gross business receipts. Data from 
which this ratio can be calculated for a national sample are 
supplied by the IRS from corporate tax returns (see Statistics 
of Income, 1972 , to be updated in the near future) . " If the 
local planning department, assessments bureau, or economic 
development agency has independent data, communities that tax 
inventory will have local estimates of inventories which can be 
used to calculate a local ir figure. Other communities will 
have to use the national inventory- to-business volume ratio of 
.112. This figure is derived from IRS, Statistics of Income, 
1972 , Table 5.2, p. 172. BP. and BY. were included in model 
B-4.2 on the assumption that ir, the inventory-to-business 
ratio, remains constant over the full adjustment period. 



-45- 



Equation B-5 

CB 

Expansion of the Local Credit Base Attributable to 
Institution-Related Deposits 

CB = (1-t) [TD i +(TD e ) (Emps)] + (1-d) [DDi+DD^ (Emps) +cbv (E+BP+BV) ] 

CB = Expansion of the local credit base attributable to 

institution-related deposits 
t = Local time deposit reserve requirement 
TD-l = Average daily balance in institution time (savings) 

accounts 
TD e = Average daily balance in employee household time 

(savings) accounts 
Emps = Total full-time and full-time equivalent employees 
d = Local demand deposit reserve requirement 
DD^ = Average daily balance in institution demand (checking) 

accounts 
DD = Average daily balance in employee household demand 

(checking) accounts 
cbv = National cash-to-business volume ratio 
E = Institution-related direct expenditures in the local 

community (see B-l) 
BP = Purchases by local business from local sources in 

support of institution-related expenditures in the 

local economy (see B-2) 
BV = Local business volume stimulated by institution-related 

income spent by local business employees (see B-3) 

Equation B-5 estimates total additions to the community 
credit base attributable to institution-related time (savings) 
and demand (checking) accounts, that is, institutional accounts, 
the accounts of employee households, and the accounts of busi- 
nesses and employees affected directly or indirectly by the 
institution and its employee households. 

In B-5, t and d refer, respectively, to the local time and 
demand deposit reserve requirements, so that 1-t or 1-d indicate 
the percentage of deposits in time demand accounts that may be 
used by financial institutions for loans. TDj and TD P are, 
respectively, institutional and employee household time (savings) 
accounts. DP-; and DDp, are, in similar fashion, average daily 
balances in demand (checking) accounts by the institution and its 
employee households. TD^ may be determined from institutional 
accounts by averaging end and middle of the month checking account 
balances as indicated by institutional checking account state- 
ments, thereby taking a sample of 2 4 days. Employees can be asked 
to report average daily household time and demand account 
balances. 

The accounts of part-time employees should be counted in 
proportion to their full-time status. Therefore, Emps refers 
to total full-time employees and total part-time employees 
aggregated into full-time equivalents. 

-46- 



The value cbv is the national cash-to-business volume ra- 
tio, reflecting cash held in reserve by businesses as a percent- 
age of total business volume. For example, in the Baltimore 
study, a value of .028 was assigned to cbv . This value was cal- 
culated as an average of 1965 and 1972 ratios determined from 
U.S. Statistics of Income , Internal Revenue Service, U.S. Cor- 
porate Tax Returns, 1965, 1972 , Table 5.2, p. 1972. We aver- 
aged ratios for two years to mitigate the cyclical effects of 
the most recent (1972) data which reflect the recession condi- 
tions of that period. 

The issues previously raised in discussion of the impact of 
employee households (see B-1.2) apply, with obvious differences, 
to B-5. Household savings and checking accounts may include 
contributions from a working spouse or other family member. 
Therefore, B-5 may overstate institutional impact in that it 
combines effects that are associated with employee households 
with effects more specifically attributable to individual insti- 
tutional employees. 

B-5 does not reflect expansion of the local credit base from 
secondary employment stimulated by institution-related direct and 
secondary expenditures (see 1-2) . 



-47- 



Equation B-6 

NBV 

Local Business Volume Unrealized Due to 
Institution-Related Enterprises 

NBV = IB 

NBV = Local business volume unrealized due to institution- 
related enterprises 
IB = Income from institution administered businesses 

The equation B-6 requires an examination of institutional 
operations and auditor's reports to identify income from 
enterprises administered by the institution or an affiliated 
body, for example, income from sources such as gift shops, 
restaurants, and sales and rental galleries. Do not include 
income derived from concessions. 

B-6 is an attempt to recognize institutional enterprises 
that may have unforeseen negative or positive effects that 
need to be taken into account in assessing the local economic 
impact of the institution. Calculating the business volume 
of subsidiary institutional enterprises is a first step in 
identifying whether these benefit, harm, or have no impact 
on other businesses or sectors of the economy, either community- 
wide or in the area immediately adjacent to the institution. 
The assumptions made about the impact of subsidiary enterprise 
must be a matter of informed judgment on the part of the local 
researcher. 



-48- 



Impacts on Government 

All economic enterprises, including artistic and cultural 
institutions, represent a cost and benefit to local government. 
We note again that the equations cited in this manual provide 
a narrow perspective on the costs and benefits to local govern- 
ment, focusing primarily on the effects that can be most readi- 
ly quantified. The next eight equations focus solely on tax 
income and governmental expenditure and do not identify the 
broader impact of investment in artistic and cultural institu- 
tions. 

Equation G-l 

GR 

Total Institution-Related Local Tax Revenues 

GR = RETX + ST + YT + SA + OR 

GR = Total institution-related local tax revenues 

RETX = Real estate taxes paid by the institution, its employee 

households, and local businesses serving both (see G-l.l) 

ST = Local sales tax revenues resulting from institution- 
related direct expenditures (see G-l. 2) 

YT = Local income tax revenues paid by institutional employee 
households (see G-l. 3) 

SA = State aid to local government attributable to institutional 
employee households (see G-l. 4) 

OR = Other local revenues attributable to the institution and 
its employee households (see discussion of G-l. 4) 

G-l sums the institution-related local tax revenues 
identified by the equations G-l.l through G-l. 4. In this 
sub-set, two equations depend in turn on still others: 
G-l.l requires G-l. 1.1 and G-l. 1.2 while G-l. 4 requires G-l. 4.1. 



-49- 



Equation G-l.l 

RETX 

Local Real Estate Taxes Paid by the Institution, 
Its Employees , and Local Businesses 
Serving Both 

RETX = RET i + RET e + RET b 

RETX = Local real estate taxes paid by the institution, 

its employee households, and local businesses serving 

both 
RET-l = Local real estate taxes paid by the institution 
RET e = Local real estate taxes paid by institution employee 

households (see G-l.1.1) 
RETk = Local real estate taxes paid by local businesses 

serving the institution and its employee households 

(see G-l.l. 2) 

G-l.l is the first of four equations needed to describe 
total institution-related local tax revenues (G-l) . It 
sums the real estate taxes paid to local government by the 
institution, its employees, and local businesses serving both. 

RETJ represents real estate taxes paid by the institution 
itself. Since most artistic and cultural institutions are 
non-profit, tax-exempt institutions, they will pay no real estate 
taxes, and the value of RET^ will usually be zero. Some may 
own property which is not used for non-profit purposes, in which 
case they will pay property tax. Total real estate taxes paid 
to local government will include RET^ as well as RET e and RETj-,, 
the values for which are derived by solving equations G-l.1.1 
and G-l. 1.2. 



-50- 



Equation G-l.1.1 

RET e 

Local Real Estate Taxes Paid by Institutional Employees 

RET e = Emps(h) (pt) (TRA/R) 

RET = Local real estate taxes paid by institutional employee 

households 
Emps = Total number of employees 

h = Percentage of employees owning homes locally 
pt = Local residential property tax rate 
TRA = Value of local residential housing 
R = Total number of assessed residences 

G-l.1.1 takes the average assessed value of a local 
residence and multiplies this average by the local residential 
property tax rate and the number of employee households owning 
local homes in order to estimate total local property tax paid 
by institutional employee households. This procedure is employed 
in lieu of all employees reporting their total local property tax 
payments through a confidential employee survey. All that is 
required of employees is that they report whether they own a home 
locally. 

Dividing TRA by R yields the average value of local resi- 
dential housing. TRA can be found in the local department of 
assessment or taxation reports. R should be available from the 
same sources. If not, consult the 1970 Census of Population 
and Housing report for your local community. 

It is important to note that TRA and R must be consistent. 
R must include all residential units whose tax revenues are 
included in TRA, for example, the revenues produced by apartment 
buildings as well as private homes if individual apartments are 
included in R. The value, h is the percentage of employees 
owning local homes. To derive h, employees can be asked through 
a confidential survey whether tney own a home (see Appendix C) . 

Property tax contributions of part-time employee households 
should only be counted in proportion to hours worked at the insti- 
tution. This can be accomplished by differentiating full-time 
from part-time employees in the employee survey and aggregating 
part-time employees into full-time equivalents. Knowing the per- 
centage of part-time employees who own a home and the number of 
full-time equivalent personnel residing locally, G-l.1.1 can be 
applied to part-time employees separately to determine their 
local property tax contribution. 

Equation G-l.1.1 assumes that employees who own homes 
locally own only one. Employees also could be asked to report 
how many homes they own, which would yield an average number of 
local homes owned by employee households. This would constitute 
a new term in G-l.1.1. 



-51- 



There are at least two issues which must be raised 
in connection with G-l.1.1. First, the equation ignores 
employee households that rent, and it thereby omits their 
property tax contributions. The local planning agency 
or bureau of taxation might have data on the average yearly 
contribution to the property tax paid by renters; this can 
be multiplied by 1-h to yield total property tax paid by 
employee households that rent rather than own. Second, it 
is not clear that the property tax revenues identified by 
G-l.1.1 would not have been generated had the institution 
not existed. The household might have owned the home even 
if a family member had not been employed by the institution; 
or, if the employee household had not bought the house, 
someone else might have. All that can be claimed by any 
institution is that its employees contribute to the community 
through property taxes. 

As noted in our discussion of B-1.2 and B-5, some 
may argue that this overestimates RET e . Our remarks in these 
earlier discussions apply here also. Additionally, we again 
call the user's attention to the discussion of employee 
households at the beginning of Section V, User Manual. 



-52- 



Equation 6—1.1.2 

RET b 

Real Estate Taxes Paid by Local Businesses on Real Property 
Committed to Support Institution-Related Business 

RET b = (RP) (ar) (pt) 

RET^ = Real estate taxes paid by local businesses on real 
property committed to support institution-related 
business 

RP = Value of local business real property committed to 
support institution-related business 

ar = The ratio of assessed valuation to full market value 

pt = Business and property tax rate 

Equation G-l.1.2 is a variant of equation B-4.1, which 
identified RP, local business real property committed to 
support institution-related direct expenditures. G-l.1.2 
multiplies RP by the local assessment ratio and property 
tax rate to yield real estate taxes paid by local businesses 
on real property committed to institution-related businesses. 
Thus, much of the discussion of B-4.1 applies to G-l.1.2. 

If the local community taxes inventory apart from busi- 
ness real property, G-l.1.2 can be used to identify taxes 
paid on business inventory, Inv , committed to support institu- 
tion-related business by substituting Inv for RP (see B-4.2) 
together with the correct assessment ratio and tax rate. 
6-1.1.2 does not estimate the real estate taxes paid by em- 
ployees in jobs created indirectly by institution-related 
direct and indirect effects on business identified by the 
B-series models (see Model 1-1) . 



-53- 



Equation G-1.2 
ST 

Local Sales Tax Revenues Resulting from Institution-Related 

Direct Expenditures 

ST = st (STR) (E/TBV) 

ST = Local sales tax revenues resulting from institution- 
related direct expenditures 

st = The percentage of locally generated sales tax revenues 
retained locally 

STR = Sales tax revenues generated locally 

E = Institution-related direct expenditures in the local 
community (see B-l) 

TBV = Total local business volume (total local retail sales 
and total local wholesale sales and the value added 
to raw materials by local manufacturers) 

Equation G-1.2 yields the second factor needed to estimate 
total local tax revenues. In it, E/TBV identifies institution- 
related direct expenditures in any one fiscal year as a percent- 
age of a community's total business volume for that year (see 
B-4.1). G-1.2 assumes that if institution-related direct expen- 
ditures are X% of local business volume in a given year, they 
can be expected to result in a similar percentage of that year's 
total sales tax receipts. STR represents total sales tax reve- 
nues generated locally. This information should be available 
from the state or local retail sales tax division. 

In some states the sales tax is a state tax with a certain 
percentage returned to the local community. In this case, the 
local community receives percentage st of all sales tax reve- 
nues generated locally; therefore, st of (STR) (E/TBV) is locally 
retained sales tax receipts. If the sales tax in a community 
is strictly a local tax, st = 1 and can be dropped from the 
equation. 

G-1.2 underestimates total eventual sales taxes attributable 
to the institution, since it does not take into account secondary 
expenditure effects BP or BV (see B-2 and B-3) . 



-54- 



Equation G-l. 3 
YT 

Local Income Tax Revenues Paid by Institutional Employee Households 

YT = (TYT/HH) (Emps) 

YT = Local income tax revenues paid by institutional employee 
households 

TYT = Total income tax revenues retained by the local jurisdic- 
tion 

HH = Total local households 

Emps = Total number of employees 

Income tax revenues for local governments generally arise 
in one of two ways: either they are a direct earnings or income 
tax levied by local government; or they are a "piggyback" tax in 
which a surcharge on the state income tax is collected by the 
state and rebated to each local government. In some instances, 
the calculation of local revenues from an earnings tax can be 
complicated by the fact that commuters may pay the tax at a dif- 
ferent rate than residents of the local jurisdiction. In this 
case, G-l. 3 should be split into two parts, using different 
average tax yields per household (TYT/HH) for residents and 
commuters. 

Income tax contributions by part-time employees should be 
counted only in proportion to their full-time status. Aggregate 
part-time employees into their full-time equivalents and treat 
them separately. Notice that G-l. 3 assumes that each institu- 
tional employee comprises a household. 

In the case of a "piggyback" tax, the local fiscal officer 
will have information on locally rebated revenues collected by 
the state; this can be used directly in calculating the average 
yield per local household. 

As discussed at the beginning of this manual, it may be more 
appropriate in certain cases to utilize employee rather than 
household income. In this circumstance it may be possible to 
utilize institutional records to total employee local income tax 
withholdings. However, this introduces the possibility of error 
since some individuals deliberately have their employers over- 
withhold by claiming fewer deductions than they are entitled to. 

When used on a household basis, G-l. 3 takes the average tax 
yield per household times the number of employee households. 
Alternatively, employees can be asked to report total household 
income tax paid to local government on the confidential employee 
survey. If per household data are not available, G-l. 3 may be 
solved by identifying the total number of individuals in employee 
households and multiplying this number by per capita local income 
tax revenues. G-l. 3 gives the third factor in total local tax 
revenues related to the institutions (G-l) . 

-55- 



Equation G-1.4 

SA 

State Per Capita Aid to Local Government Attributable to 

Institutional Employees 

SA = PS + OR 

SA = State per capita aid to local government attributable 

to institutional employee households 
PS = State public school per pupil aid attributable to 

institutional employee households 
OR = Other state revenues attributable to the institution and 

its employee households (per capita) 

G-1.4, the fourth equation needed for G-l, estimates total 
state aid attributable to institutional employee households as 
the sum of state per pupil school aid, PS, and other per capita 
state revenues. PS is estimated by equation G-l. 4.1, (see 
discussion of employee households at the beginning of manual) . 

G-1.4 deliberately focuses on state aid that is provided 
solely on a per capita basis, as in the case of PS, which is on 
a per pupil basis. Researchers will have to contact the local 
community's budget officer to review state programs providing 
local funds on a per capita basis, either for the total popula- 
tion or by eligibility group. State aid attributable to employ- 
ee households will require identifying the number of eligible 
persons in employee households in each program area for which 
the state provides per capita aid. Researchers will have to 
judge whether the revenue source is significant enough to warrant 
the additional questions on the confidential employee survey that 
will be required. If aid comes on a per total population basis, 
then researchers will, at a minimum, need to identify the total 
number of persons in employee households. Part-time employees 
should be aggregated into full-time equivalents, attributing 
state per capita aid to them in proportion to their full-time 
status at the institution. 



-56- 



Equation G-l.4.1 

PS 

State Public School Per Pupil Aid Attributable to 
Institutional Employee Households 

PS = (N) (C) (SE) 

PS = State Public School Per Pupil Aid Attributable to 

Institutional Employee Households 
N = The number of employee households with children in 

public elementary and secondary schools 
C = The average number of children employee households send 

to public elementary and secondary schools 
SE = State per pupil educational grant to the local community 

It is not uncommon for states to provide school aid to local 
communities on a per pupil basis. Equation G-l.4.1 estimates PS, 
total of per pupil state aid attributable to employee households. 
(See employee household discussion in introduction to manual.) 

To estimate N, researchers will have to identify the number 
of employee households with children in public elementary and 
secondary schools and the average number of children each of 
these households sends to public school, thereby allowing an 
estimate of the total number of employee children in public 
schools. This figure, multiplied by SE, the per pupil state 
grant, yields PS. To identify the number of employee households 
with children in public school will require an estimate of the 
percentage of all employee households with children in public 
school. This means an additional question on the confidential 
employee survey. Employees will also have to be asked to report 
the number of children they send to public elementary and 
secondary schools. 



-57- 



Costs to Local Government 

In the preceding G equations, we have provided strategies 
and structured suggestions for identifying institution-^related 
contributions to local government. Our concern has been limited 
to tax or other revenues attributable to the institution. From 
an equally narrow perspective, researchers can examine the cost 
to local government imposed by the institution and its employee 
households. Selected costs are estimated by equations G-2 
through G-5. 

Even viewed narrowly, governmental involvement with the arts 
imposes costs that are not accounted for by the equations below. 
An attempt should be made to identify these costs, be they donated 
services, special contributions, or whatever. Perhaps most impor- 
tantly, resources devoted to the arts become unavailable to govern- 
ment for use in pursuing other public goals. This is often a 
primary reason for governmental concern with accountability for all 
public programs, including arts programs. 

It might be helpful for the user to review the discussion of 
employee households at the beginning of this manual, particularly 
with regard to equations G-2, G-2.1, G-2. 2, and G-3. 

Model G-2 

OC 

Operating Cost of Government-Provided Municipal and Public 
School Services Attributable to the Institution 
and Its Employee Households 

OC = MOC + PSOC 

OC = Operating cost of government-provided municipal and 

public school services attributable to the institution 

and its employee households 
MOC = Local governmental operating costs (excluding schools) 

attributable to institutional employee households 
PSOC = Public school operating costs attributable to institutional 

employee households 

G-2 is a summing function, adding local governmental oper- 
ating costs (excluding schools) attributable to the institution 
(MOC) and local public school operating costs attributable to the 
institution (PSOC). Equations G-2.1 and G-2. 2 identify these two 
values. 



-58- 



Equation G-2.1 

MOC 

Local Governmental Operating Costs (Excluding Schools) Attributable 

to Institutional Employee Households 

MOC = B(EHH/POP) 

MOC = Local governmental operating costs (excluding schools) 
attributable to institutional employee households 

B = Local operating budget excluding public school costs 
and non-locally generated revenues 

EHH = Total number of persons in local residing employee 
households 

POP = Total local population 

Local government incurs a variety of costs in providing ser- 
vices to institutions and their employee households. These costs 
include both capital investment in facilities required to provide 
services and operating costs associated with the delivery of ser- 
vices. 

Equation G-2.1 apportions to the institution and its employ- 
ee households their share of local governmental operating expendi- 
tures in such areas as police and fire protection, library ser- 
vices, sanitation, and, in general, all areas except public edu- 
cation, which is handled separately by equation G-2.2. (Equation 
G-3 apportions all corresponding capital costs.) G-2.1 represents 
a pragmatic approach to resolving several difficulties. Neighbor- 
hoods vary in their cost to local government, for example, in 
areas such as police and fire protection. Employee households may 
be located in a variety of neighborhoods. How should the alloca- 
tion of costs to local government be weighted? Social service 
costs provide a particularly striking example. These costs often 
represent a major portion of a local government's operating bud- 
get. If it turns out that employee households do not require 
social services, then it would seem important not to attribute 
social service costs to employee households. 

If the factors which prompt a household to impose a dispro- 
portionate cost on local government were known, appropriate ques- 
tions could be included in the confidential employee survey, and 
the allocation of costs per employee household could be weighted 
accordingly. This procedure would present tremendous theoretical 
and practical difficulties. A pragmatic approach requires the 
per capita allocation of all non-school operating costs over the 
entire local population, recognizing that this may overstate the 
costs incurred in servicing the institution and its employee 
households. 

G-2.1 focuses solely on employee households. It assumes 
that, if employee households make up X% of the total population, 
then they impose the same percentage of total non-school govern- 
mental costs. EHH/POP represents employee households as a per- 
centage of the total population. EHH can be determined by 

-59- 



including an appropriate question on the employee survey. POP 
is available from the local planning department, and B will be 
provided by the local office of the budget. It is important to 
make certain that the figure used for B excludes contributions 
to the school budget from other than local sources, since these 
have been counted in equation G-1.4, and we are only concerned 
with costs to local government. 



-60- 



Equation G-2.2 

PSOC 

Public School Operating Costs Attributable to 
Institutional Employee Households 

PSOC = SB(C/TC) 

PSOC = Public school operating costs attributable to institution- 
al employee households 

SB = Local public school operating budget, excluding revenues 
from non-local sources 

C = Number of children in employee households attending 
local public primary and secondary schools 

TC = Total enrollment in local public primary and secondary 
schools 

The preceding discussion of equation G-2.1 applies with 
necessary changes, to equation G-2.2, which apportions the costs 
of local public schools over employee households. Using the 
employee survey, the total number of employee household children 
in local primary and secondary schools can be identified. C/TC 
represents employee household children in primary and secondary 
schools as a percentage of the total local enrollment in public 
primary and secondary schools. This percentage, when multiplied 
by the public school operating budget for primary and secondary 
schools, results in an estimate of total costs imposed by employee 
households. SB and TC should be available from the local depart- 
ment of public instruction. Aaain, be certain that the figure 
used for SB excludes contributions to the school budget from other 
than local sources, since these have been counted in G-1.4, and we 
are only concerned with costs to local government. 



-61- 



Equation G-3 
GP 

Value of Local Governmental Property Committed to Support 

Services to Employee Households 

GP = (GP m ) (MOC/B) + (GP S ) (PSOC/SB) 

GP = Value of local governmental property committed to 
support services to employee households 

GP m = Value to all non-school-related governmental property 

GP S = Value of all school-related governmental property 

MOC = Local governmental operating costs (excluding schools) 
attributable to institutional employee households (see 
G-2.1) 

B = Local operating budget excluding public school costs 
and non-locally generated revenues 

PSOC = Public school operating costs attributable to institu- 
tional employee households 

SB = Local public school operating budget excluding revenues 
from non-local sources 

Equations G-2.1 and G-2.2 provide an estimate of public 
school and other governmental operating costs attributable to 
institutional employee households. Equation G-3 estimates 
local government capital costs attributable to the institution. 

PSOC/SB represents school costs attributable to employee 
households as a percentage of the total school budget. G-3 
attributes the same percentage of the value of school facilities, 
(GPs) (PSOC/SB) , to employee households. The same procedure is 
used to apportion the value of all other governmental property 
(GP m ) (MOC/B) . GP m and GP S should be available from the local 
or state department of assessments. 

Whether G-3 provides a current dollar value or provides 
replacement estimate of the total land and facilities required 
to serve employee households depends, in part, on how localities 
determine values for GP m and GP S . If these values represent 
the cost today of replacing facilities, rather than the actual 
original cost of these facilities, expressed in current dollars 
or otherwise, then GPm and GP S may be much larger than the orig- 
inal costs of acquisition and construction. See the discussion 
of G-2.1 for other issues that apply here. Also, in the discus- 
sion of B-4.1 we pointed out that there was no way of determining 
the marginal users, that is, the enterprise whose demand could 
only be met by additional investment in business real property. 
Therefore business investment in real property was apportioned 
over all users. The situation in G-3 is analogous. 



-62- 



Equation G-4 

FTX 

Foregone Real Estate Taxes Due to the Institution's 

Tax-Exempt Status 

FTX = AV (ar) (pt) 

FTX = Foregone real estate taxes due to the institution's 

tax-exempt status 
AV = Assessed value of institutional tax-exempt property 
ar = Assessment ratio of local jurisdiction 
pt = Local property tax rate 

Local governments derive a significant proportion of 
their income from local property taxes. When an arts organization 
rents property, it may be assumed that the owner of the property 
pays property tax. However, tax-exempt arts and cultural insti- 
tutions that own and use property for tax-exempt purposes are not 
subject to the property tax. Therefore, when a tax-exempt insti- 
tution buys a piece of property, that property is, in effect, 
taken off the tax rolls and represents lost or foregone local 
property tax revenue . 

The identification of total foregone real estate taxes pre- 
sents a variety of problems. Institutions do not simply buy 
property: they may build a concert hall, museum, or so forth. 
This may constitute a mixed blessing when viewed from the stand- 
point of foregone taxes. Even if the facility could be taxed, 
the land might have generated more in property tax revenues had 
it been put to some other use. 

Conversely, even though non-profit arts organizations do not 
pay property tax, the erection or rehabilitation of buildings for 
artistic and cultural purposes can have a positive effect of sur- 
rounding areas, upgrading property values and thereby increasing 
total property tax revenues. 

Equation G-4 identifies foregone property taxes in light of 
these theoretical and technical difficulties. AV, the assessed 
value of exempt property owned or occupied by the institution, 
may be obtained from the local tax assessment office, as are 
the assessment ratio (ar ) , and the local property tax rate (pt ) . 

The examined institution may make voluntary contributions 
in lieu of paying the property tax and/or may pay property tax 
on property they own which is not devoted to non-profit purposes. 
These payments are counted directly in another equation, G-l.l 
(RET-i ) . 



-63- 



Equation G-5 
SSVS 

Value of Local Governmental Services Self-Provided 

by the Institution 

SSVS = Pi + Si + Lj_ + Ti 

SSVS = Value of local governmental services self-provided 

by the institution 
Pi = Total annual cost of institution-provided police and 

security services 
Si = Total annual cost of institution-provided street 

maintenance 
Li = Total annual cost of institution-provided lighting 

(including lighting of parking facilities) 
Tj_ = Total annual cost of trash removal by private company 

(does not include janitorial and building maintenance 

costs) 

In some cases, an examined institution may pay for services 
that local government would otherwise have provided. When this 
happens, the institution is saving local tax dollars by providing 
for itself rather than utilizing government services at taxpayer 
expense. 

With respect to some specialized services, there are diffi- 
culties in estimating what it would have cost government to pro- 
vide them had not the institution provided for itself. The audi- 
tor's report of the institution will identify what it cost the 
institution to purchase these services, and the researcher will 
have to make a judgment as to whether the incurred expense would 
otherwise have been incurred by government. The terms in equation 
G-5 refer to various typical services provided by government that 
might have been self -provided by an institution. 



-64- 



Impacts on Individuals 

Up to this point in the User Manual, we have sought to esti- 
mate economic effects on ,the business sector and government. We 
now estimate some economic consequences for individuals. Appendix 
B discusses the multiplier values referred to in the next three 
equations. 

Equation 1-1 



Number of Local Jobs Resulting from Institution-Related 
Direct Effects on the Local Business Sector and Government 

J = Emps + x(E + OC) 

J = Number of local jobs resulting from institution-related 

direct effects on the local business sector and 

government 
Emps = Total number of employees 
x = Marginal employment requirement of an additional 

dollar's worth of local spending 
E = Institution-related direct expenditure in the local 

community (see B-l) 
OC = Operating cost of government-provided municipal and 

public school services attributable to the institution 

and its employee households (see G-2) 

The equation 1-1 estimates the total number of local jobs 
attributable to the institution in terms of total employment 
provided by the institution itself and jobs created indirectly 
due to the institution's direct local economic effects. In 
order to meet demand, local business must invest in facilities, 
as noted by equation B-4.1. But at some point firms must also 
hire more people due to increased business volume. National 
estimates have been made of the marginal employment requirements 
of an additional dollar's worth of local spending, x, that is, 
the number of new jobs required for each additional dollar of 
demand (see Appendix B) . The terms to be multiplied by x are the 
total direct local business and governmental expenditures attrib- 
utable to the institutions. The resulting figure, taken together 
with total jobs directly provided by the institution, yields an 
estimate of total local jobs attributable to the institution. 

Indirect expenditures are excluded from 1-1 because the deri- 
vation of x is based on direct expenditures only. Therefore, this 
formulation may significantly underestimate the eventual impact on 
jobs. The inclusion of OC assumes that all local governmental 
expenditures are local and that governmental expenditures have the 
same local impact as private sector expenditures. 



-65- 



Equation 1-2 

PY 

Total Local Personal Income Due to Institution-Related 
Direct Effects on the Local Business Sector and Government 

PY = W + p(E + OC) 

PY = Total local personal income due to institution-related 

direct effects on the local business sector and government 

W = Gross compensation, including FICA, federal withholding, 

state withholding, unemployment compensation, and contribu- 
tions to pension plans 

P = Profit and payrolls per dollar of institution-related 
expenditures 

E = Institution-related direct expenditures in the local 
community 

OC = Operating cost of government-provided municipal and public 
school services attributable to the institution and its 
employee households 

Total personal income of local residents attributable to 
the institution can be estimated as wages to institutional employ- 
ees together with wages to the additional employees identified by 
equation 1-2. National estimates have been made of the addition 
to payrolls and profits of each additional dollar's worth of demand, 
£ (see Appendix B) . Total personal income is estimated as institu- 
tional wages to local residents plus personal income as a conse- 
quence of total direct demand attributable to the institution. The 
coefficient p is likely to underestimate total eventual impact on 
personal incomes for the reasons described in connection with the 
co-efficient x of equation 1-1. The inclusion of OC in 1-2 assumes 
that all local governmental expenditures are local and that govern- 
mental expenditures have the same local impact as private 
sector expenditures. 



66- 



Equation 1-3 

DG 

Durable Goods Purchases Attributable to Institution-Related 

Increases in Total Personal Income 

DG = k(PY) 

DG = Durable goods purchases attributable to institution- 
related increases in total personal income 

k = Proportion of personal income devoted to purchases of 
durable goods 

PY = Total local personal income due to institution-related 

direct effects on the local business sector and government 
(Equation 1-2) 

Equation 1-3 relies on the national estimate, k, of the pro- 
portion of an individual's total income used to purchase durable 
goods from local sources (see Appendix B) , PY was estimated in 
1-2. 



-67- 



en 

CD 
O 
U 

P 

o 
m 

(0 

p 

TS 
C 
tO 



0) 
TS 
O 



O 

-P 

0) 
TS 

•H 

P 



>1 




TS CD 




P O 




-p d 




en q> 


1 


S4 


1 


0) CD CD 




en tjm-i 




fO ra 0) 




cj cm os 




CD 




O 




c 




.H (D 


m 


rd S-i 


n 


P CD CD 




C tnu-i 




(0 (0 CD 




s cu k 





APPENDIX A 



Q 
D 
En 

CO 10 
Eh 



H 
O 

H 
Eh 

< 
CQ 



W 
U 
Pi 
D 
O 
CO 

Eh 
< 
D 



W 

CQ 
<C 
H 

> 



CO 

u 
o 

TS 
CD 
4-> 
rd 

rH 

CD 

« 

I 

C 

o 

•H 

-p 

p 
-p 

•H 
-P 
CO 
C 



I 

CO 



+ 





— + 






cd 






i> -^ 






CT\ rH 




> 


- O 




w 


CM CD 




+ 


*3* "3" 
■>CN 




(0 


^r cd 




H 


CN 




+ 


+ </> 




tP 


^-. -^ 




w 


CD + CN 


CD 




CN (Ti 


r-~ 


+ 


o ^- ro 


CD 

Ml 


CD 


in ■<* cH 


■^ 


W 


O CN CTi 


00 




T * 00 


rH 


+ 


•»oo - 


*. 




CN CO H 


rH 


•H 


</></></> 


rH 


w 


'-■' "— ' *— ' 


</> 


II 


II 


II 


K 


CQ 


CQ 



CN 



m 



•^ 



IT) 



rH 


rH 


rH 


rH 


rH 


CQ 


CQ 


1 

CQ 


CQ 


1 

CQ 



ro 



ro 



ro 



in 
ro 



1 


















— (U M 










. 










CD >h P 


CN 






tn 


Cfi 










s-i — rH m 


CM 






C 


C 










CD (0 


*~* CN 






•H 





• 








5 CD > CD 


X * 






-p 


1 -H 


CD 








e e 


Eh rH 






rH 


CT> -P 


tn 








>i -P 


«* 






p 


trj p 


cd 








Tj O CO 


1 O 






en 


•H 4-> 


S-l 








PC CD C 


*k 






CD 


TS "H 


CD 








+J -H • rH -H 


• «* 






S-l 


•P 


> 




.— ^ 




cn — ro 


44 </> 








CD U) 


(0 




o 




>i w > >i 


Cfl 






en 


u c 










CD rH C-H u 


C 1 






C 


CD -H 


T3 




+ 




U -H >H P CO • 


(0 






O 


s 


CD 








£ m cTrH cd 


S4 "tf 






-H 


+J 


-P 


— 


CTi 




£ rd • CD (0 rH 


Eh O 






-P 


cd si 


x: 


U) 


r^ 




■h cm t/i a, 


ro 


^-» 




td 


CN tn 


tn 


G 


"<* 




P + CD 1 g 


1 


CO 




rH 


O -H 


■H 


>H 


*. 




rH tr> X! C rd 


00 


CN 


CD 


p 


* <D 


CD 


in 


rH 


CD 


rd C C-P en 


CDrH 


ro 


CN 


o 


in 


!? 


• 


O 


r* 


CQ -H CD C 


£ ^ 


•* 


O 


rH 


o s-i 






r- 


o> 


en ;s en cd 


». 


CN 


*. 


fd 


t cd 


rd 


II 


k 


•. 


(DP -H T3 s^ 


1 CTi 


ro 


ID 


O 


- > 






CD 


CN 


Xi M-i CO 


</> 


</> o 




CN 


en 


c 


to- 


CN 


-P t3 0\ ro g 


-H — - 




^r 


CD </> 


•H 


CD 


*-" 


^r 


(D r- -H 


H r-- 


1 


- 


S-l 


TI 




S 


CD 


^ 


S-i +j (D ^* en +j 


Eh ^ 




CN 


O 


II CD 


r- 




CD 


^r 


rd O - CD rH 


-— • 


o 


•to- 


E 


+J 


m< 


44 


• 


<^- 


CH rH CO rH tTI Cd 


N 






•H 


-h cd 


• 








P rH O Cd CQ 


II 




ll 


-P 


W tn 




II 


II 


II 


cd O ar- ^ 


II 






rH 


CD 


II 








-P rH CD 


-H 




-H 


cd 


C S-i 




CD 


a 


0) a CCO L 


w w 




w 


CQ 


•h tn 


N 


H 


w 


ttj 


Q O -H -CA P 



cd 


(0 




CO 




cd 




cd 


c 


c 




C 




c 




C 





o 




o 









O 


-H 


-H 




•H 




•H 




-H 


-p 


-p 




-p 




-p 




-P 


p 


en p 


en 


p 


en 


p 


en 


p en 


-p 


T3 -P 


T3 


■p 


TJ 


-p 


T5 


■P TJ 


-H 


Sh -h 


H 


-H 


u 


•H 


H 


•h n 


-p 


-P 





-p 





4-) 


o 


-P 


en 


O en 


O 


en 


o 


en 


o 


en o 


c 


CD C 


0) 


c 





C 


CD 


C CD 



HCTlHtfHtfHKHti; 



>i 


>1 


CD 


(D 


> 


> 


S-l 


S-l 


P 


p 


C/l 


CO 


M-I 


U-l 


4-1 


ch 


rd 


CO 


-P 


•P 


CO 


CO 



to 
CD 
S-l 

P 
4-> 
•H 
T3 
C 
CD 

X 

H 



>1 


>1 


>i >i >i 


>i 




S-l 


44 


O 


















tO 

c 






X! 


X! 


X! X! XI 


XI 



X! 


O 


-P 




cn 

4-> 










>i 

rH -H 




S-l 


en 


CO 


en en co cd 


en 


CO 


en 


c 




C 








w 


TS 


rH 4-> 




to 


CD 


CD 


CD CD (DO 


(D 


rH 


CD 


O 




P 




o 




CD 


-^ rH 


td P 




rH 


S-l 


U 


S4 >4 S-l C 


r4 


1 


S4 


•H 









4-> 




Sh^ 


CD O 


O 4-> 




CO 


P 


P 


P P P CD 


p 


•H C 


p 


4-> 




O 








P 


H ,C 


O -H 




en 


-P 


4-> 


+J +J CD 4-> -H 


4J 


W 


4-) 


CO 




o 




en 




4-J 


— - (D 


rH 4-> 




I 


-H 


•H 


-h en -H oh tj 


•H 


c 


•H 


en 




<0 


en 


(D 




•H 


en 


en 




c 


T3 en 


TS 


TS 4-> T3 C TS P 


Ti 


en 




en ts 


C 






Sh 


(D 




T5 


en 


P 


4-> C 




o 


C C 


C 


C en c CD C (0 


C 


c 


44 


(D C C 


CD 




rH 


<D 


44 




C 


CD 


O 


C -H 




c 


CD O 


CD 


(D -H (D -H CD 


CD 





O 


S-l CD O 


CX 




tO 


CM 




4-> 


CD 


CD 


£ 


CD 






a-H 


a 


en a 4-i DuTS CU rH 


D. 


-H 




P CVH 


g 


en 


c 


en 


TS 


C 


a, 


>, 




a+j 




TS 


X -P 


X 


CD X S4 X P X c0 


X 


4-1 


C 


4-> X 4-> 


O 


CD 


S4 


c 


C 


CD 


X 


O 


c 


en cd 


en 


rH 


CD P 


CD 


CD CD CO (D CO CD o 


H 


P 





■<-* <\) 3 


o 


CD 


CD 


rO 


rO 


g 


H 


rH 


O 


C 


CD 





4-> 




>i 




P 


•H 


Ti 4-> 




>i 4J 


S-i 




C 




Q, 


-H 


CD 


•H 


x; cd 


rH -H 


rH 


rH +J rH rH rH rH 


rH 


•H 


-P 


C rH -H 


en 


o 


c 


4-> 


in 


S4 


rH 


g 


4-1 


g rH 


54 


CD g 


CO 4-> 


(0 


rH co en cd to rd i 


(0 


P 


O 


CD (0 4J 


en 


rH 


H 




CD 


CD 


rd 


w 


o 


O td 


CO 


en o 


o en 


O 


a. O CD O O O C 


O 


(0 


(0 


O, 4-> en 





D, 




T5 


X 


> 


O 




td 


O 4-> 


rH 


P o 


o c 


O 


g P O O O 


O 


c 


S-l 


X O c 


n 


g 


II 


C 


tO 


o 


O 


>1 


H 


C 


(0 


c 


rJ -H 


J 


(D i-q tPj Hhl C 


hq 


H 


Cm 


CD Eh -H 


O 


CD 


44 

en 


td 


EH 


Cn 


hQ" 


X! 


Cm 


-H Eh 


en 


ffi-H 


II 


II 


II II II 


rH 


II 


II 


II 






II 




CM 


II 


II 




II 








• 










G 








• 
















rH 




-H 






to 








rH 




C 




en 


-H 


CD 


tn CO > 


1 




H 


CD 




M 




X 




1 




CD 




C 


w 


W 


W W H 


CQ 




N 


Eh 


& 




Eh 




Eh 




CQ 




44 


£ 




>H 



-68- 



>1 




•O QJ 




P o 




-P c 




co qj 


m 


M 


i—l 


0)0)0) 




CO Cni+H 




Ifl fl d) 




C_J CX Pi 




0) 




o 




c 




rH QJ 


vr> 


(fl Sh 


m 


P QJ CD 




C tr>M-i 




nJ to 0) 





20-K 



Q 

D 

Eh 
CO 

H 

(X 

C 

H 

EH 

X 

< 

ffi 



W 
U 

Ci 

o 

CO 

< 

< 

a 



w 

x 

PQ 

< 
H 

< 
> 



co 

id 
TJ 

n 
■-H 

OS 



oo «* 

<-» VO CN 

Q 

O m oo 

cn </> c/> 



en 



X! 

co 

CD 
U 
P 
4-> 

-H 

>0 

c 

tl) 

OJ 

X 

w 



id 

o 

o 
X) 

m 



I 



Cn Cn 



l3 



>1 Id 



0) 


c 




> 


c 




u 


-H 




p 


-P 




en 


P 


CO 




4-1 


T3 


MH 


•H 


5-j 


«H 


-P 


o 


(0 


[fl 





-P 


C 


0) 


CO 


H 


cr: 



1 

-H 








T3 








C 




C 




^ 0) 




-H 




CnCX 








W X 




CO 




>- 




>1 
05 




CO >, 




T3 




-p l-l 








CO -H 




4-> 




•H 03 




CO 




+J TD 




CD 




M 




P 




< 0) 




Cn 




Cn 






c 


4-> 1T3 


CO 


H 





co u 


CD 


(0 


■H 


0) 0) 


u 


4J 


131 


P > 


p 





QJ 


O < 


4-1 E-< 


Sh 


ll 




II 
•1-1 




•H 




a 




tn 




o 





00 



I'- 
ve 

m 



>x 

4-1 

SH 

05 

a, 
\ 

— O 

< V43 
Eh 

— io 

< v> 



05 



oj 
w 



05 



m 


CO 


QJ 


(U 


h 


o 


^ 


c 


4J 


0) 


•H 


•H 


T3 


T5 


c 


a 


0) 


< 


a 




X 


i— i 


w 


03 




U 


l—l 





rt 


X 


o 







>1 


a 


X! 



I 

CQ 



05 



o 

<£1 

■>H> 

CM 

cn 
co- 



ld 



qj 




> 


i-H 


u 


(0 


p 


c 


CO 


c 




•H 


QJ 


4-> 


u 


P CO 


c 


4J T3 


QJ 


■rH i-l 


•H 


-P o 


T3 


CO o 


P 


C 0) 


< 


M Pi 



qj 

u 

c 

TO 
T5 
G 
0) 

4-) 

4-1 
CO 03 
QJ 
U T3 

P -H 

4J 05 

■h a, 

•V 
C H 

QJ 03 

a 4-i 
X o 

QJ Eh 

II 



< 
Eh 






> 

Eh 



> 



CO 

>1 

id 



00 



cn 



>|<N 
03 CTi 

^ m 
\ - 

CN r-H 

ro as 

• 00 

o * 



> > 



>i 
QJ 
> ^H 

>-i m 

p c 

CO O 
-H 
QJ -P 
O P CO 
C 4J T3 
QJ -H S-i 

•rl4J O 

T3 CO U 
P C QJ 

< h a 





> 


> 


w 


.Q 


■ 


m 


0) 


QJ 


a 


^ 


c 


a 


QJ 


4-> 


-H 


•H 


T3 


t) 


P 


C 


< 


QJ 




a 


!— 1 


X 


03 


w 










rH 


hJ 


03 


1 


O 


c 


O 





J 


z 



in 

rH 



o 



00 



W 



cx 



ex 

OQ 



i-H 
1 


in 
o 


00 

H 

cc 


CTi 

<* 

rH 


• 


*l 


i-H 


CTv 

to- 


ii 


ll 


(X 

CQ 


CX 

CQ 



CQ 



TJ 


I 


C 


CQ 


QJ 




a, 


QJ 


a 


QJ 


rt! 


CO 



I 

CQ 



CO 






0) 




QJ 


u 




g 


p 




P 


4-1 




rH 


H 







T3 >H 




> 


C 






QJ 4-1 




CO 


CX-H 




CO 


X CO 




QJ 


QJ -H 




C 


> 




-H 


>i 




CO 


rH rH 




P 


■H 03 




CQ 


03 P 






'O c 




> 


c 




Sh 


QJ 03 




03 


Cn 




■■a 


03 rH 




c 


Sh 03 


CO 





QJ 4-1 


>1 


o 


> O 


03 


QJ 


< Fh 


T3 


CO 


II II 






D 




CM 


> 




1 


> Eh 




CQ 









id 




1 


^ 4-) 





P 


C« C 


<-\ 


4-> 


CQ QJ 




•H 


— -H 


73 


+J 





QJ 


CO 


CO 


•H 


4-> 


c 


o 


l^H 


id 


H 


H 


IH 


r-{ 




P 


QJ 


0) 


>. 


-P 





u 


XI 


•iH 


u 


1 CO 




73 




C QJ 


T3 


C 


QJ 


Sh 


QJ 


QJ 


cn 


•H P 


4J 


a 


m 


4-1 4-1 


03 


X 


£ 


P "H 


i-H 


w 


o 


4-1 T3 


P 




m 


-H C 


E 


c 


p 


4-J QJ 


•H 


c 


a 


co cx 


4-1 


-H 


OJ 


C X 


CO 


4J 


cr: 


M QJ 


II 


II 


O-i 






£ 


W 







CO 






c 









CO 




H 


Sh 


to 


P 


QJ 


03 


03 


4-1 


rH 


QJ 


QJ 


P 


e 


H 


U 


03 


X rH 


Sh 


03 


m 


03 


4-> 


o 


CX 








- ; 


— i 




rH 


03 


• 


X 


C 


CO 


4J 


H 


c 




cn 





4-1 


H 


-H 


o 


Sh 


4-1 




O 


P 


QJ 




4-> 


CO 


QJ 


•H 





X 


4-> 


SX-P 


CO 


Sh 




c 


p 


Sh 


•H 


CX 



M-l 


4-1 


QJ 




x; 


X 


-a 


cn 4-i 


QJ 


•H 




N 


QJ 


Sh 


-H 




O 


H 


T3 


MH 


•H 


C 




-P 


03 


T3 
QJ 


P 


CO 


JJ 


CO 


c 


P 


03 


O 


CX 5 


•H 


E 




4J 


c 


4-1 


U 


u 


03 


-H 




X 


T3 


QJ 


4-1 


CO 


Sh 




■H 


QJ 


c 


Sh 


3 





P 




•H 


•n 


, — , 


+J 




> 


P 


rH 


^ 


4-> 


03 


id 


■H 


O 


•k 


4-1 





cn 


CO 


i-\ 


•k 


c 




MH 


•H 


X 


•. 




-H 


N 


X 


CO 


1 




to 


T3 




QJ 


QJ 


CO 




Sh 


c 


E 


QJ 


c 





> 


-H 


Sh 





4-> 


MH 


u 


(0 






P 


03 


>) 


Cr 4-i 


TD 


QJ 


03 


P 




XS 


4-1 


0) 




CO 


sz 


QJ 




4J 


X 


QJ 




id 


Sh 


c 


u 





-H 


id 


E 




cx 


■H 


CO 


QJ 


4-> 


u 


CO 


rH 


QJ 




m 


4-J 


E 


CQ 


JH 







OJ 


Sh 


0) 


rH 


4H 


X 






4-1 


rH 


CO 




i-H 


QJ 


c 


id 


cn 


•H 


E 


03 




m 


Sh 


CO 




QJ 


c 


> 


> 


o 


X 


03 


•H 






4-> 


t; 


Tl 


03 


QJ 


QJ 


rH 


4-> 


4-> 


P 





X 


u 


c 


Cn 


•-\ 


QJ 


•H 



03 T3 0) 



U 



W 
En 
O 
2 



-69- 



>1 




T5 





3 


U 


-P 


c 


CO 







P, 


CD 


CU 0) 


CQ 


Ct>m-i 


(0 


tfl 



CJ CU « 










o 




c 


H 





03 


p 


3 


(U 


C 


trim 



(d (13 0) 

s cu a 



>H 

D 
D> 
Eh 

co co 
En 



W 
U 

o 

< 

En 

< 
Q 



W 

CQ 

< 
H 

> 



in 



TT 



1X3 

«X5 

00 



</> 



W J 


Ln 


Pi D 


^r 


O W 


• 


S W 


■«-^ 


H 05 




Eh 


II 


J 




<: 


> 


CQ 


CQ 








e 


rH 


3 


(0 


H 


3 


O 


T3 


> 


-H 




> 


[fl 


■H 


en 


•a 


aj 


c 


3 


M 


■H 




LQ 


>i 


3 


XI 


CQ 






-a 


>i 


0) 


P 


-p 


id 


(0 


T3 


rH 


c 


3 





e 


u 


-H 


0J 


4-1 


CO 


CQ 



oo 

CN 



>X5 
00 



- CXI 

rH 00 

rH ro 
u> - 

w O 

^- in 
in ro 

• <xi 

^- </> 

II II 

> > 

CQ CQ 



CQ 



X 




-H 


H 


T3 


1 


C 


CQ 


cu 




a cu 


a cu 


< 


CO 



-p 
3 

d) 

•rH 
U 

•H 
> M-l 

cq m 

CD 


u 



(0 

u 

o 



T3 
0) 
4-> 

id 

rH 

P 
I 

s 
o 

•H 
4-> 

3 



Cfl 
CU 

u 

4-> 

•H 
4-> ^ 



3 
0) 



cu cu co cu 



Pi 







ro 
I 

CQ 



in 



CN 

"3* 



> 

3 



+ 

CM 
Pi 



H 

CQ 



CM 

rH 
I"- 

r- 

m 

m 



ro 
o 

CTi 

o 

ro 

CN 



CQ 








H 


CO 


4-> 


CQ 


CO 




^^ 


cu 


CU 




3 


rH 


CO 


•H 


X! 


CO 


CO 


id 


cu 


3 


4-> 


3 


CQ 


3 


•H 




XI 


CO 


rH 


-H 


3 


rd 


P 


CQ 


U 


4-> 




O 


-P 


3 


J 


< 


O 

•H 


m 


>i 


4-1 





4J 


3 




P 


4-> 


cu 


CU 


•rH 


3 


a 


4-> 


rH 


o 


CO 


id 


p 


3 


> 


cu 


H 



ro 

■> 

IX) 

r- 

m 



CQ 



rH 


CN 


• 


• 


i 


•<^ 


1 

CQ 


CQ 


CU 


CU 


cu 


cu 


CO 


en 



ro 



U 
fd 
\ 
> 

< 



> 
CQ 
E-i 

w 



Cu 
Cf 



o 
o 

o 

CN 

r- 

CN 
CN ^ 

o ro 

^ • 

CN O 
</> O 

\o 

1X5 v 

r- ro 

1X5 CXl rH 

» vx) ro 

•CJ. ^ O 
00 rH - 
rH CT\ <7\ 

sfOO 

rH - ro 

rH CN * 

</y -co- cn 
^- ~— </> 



II 

cu 

Pi 



I 

CQ 

cu 
cu 

CO 



cu 

Pi 



CO 
CO 

cu 
3 

-H 
CO 

3 
CQ 

IH 

o 

CO 

3 

co r- co 

3 VX) C 



co 

cu 

rH 

I (d 
3 r-~ CO 

3 «X) 

rd <T\ rH 

SHH 

rd 
M-i Cn p 

o c o 

■H Pi 

P 

3 
P 



co 

3 



-P 



cj td X rd 



cu a> cu rd p 

CJ rH CJ M-l CO 



c 

4J rd 

c 

CU co 

g +J 1X5 

P C r- 

U CU CTi 

rd E rH 
CU co 

CU CO c 

CU o 

CO -H 
CU CO 4-> 

4J < rd 
X 

4J M-l (d 
CO O Eh 



c 

rd 



> a 



-p 
c 



E 

P 

P 

rd 

Cu co 

CU 



r- 



CU CTi 

E rH 



V) 
CD 
CO 

[fl 

< 

<p 

o 



c 
o 

■H 

P 
fd 
X 
HJ 
Eh 



s w 



l 
CQ 











rH 


Cu 


•H 
















rd 


Pi (d 
















CU 


— O 








1 






CU 


Pi 











3 






rH 




cu 


rH 








cfl XI 




cn 


X 


Cfl 


rH 






CO 




CO -H 




CO 


rd 


Cfl 


X 


T3 




CO 




CU P 




CU 


4-1 


a) 


td 


CU 









3 4-) 




c 


3 


3 


4-1 


4-> 




c 




H 4-) 




•H 


X 


•H 


3 


rd 




•p 




CO fd 




CO 


-H 


CQ 


X 


rH 




CO 




3 




3 


P 


3 


•H 


CU 




3 




X >i 




X 


4-> 


CQ 


P 


u 




X 




P 






4J 




4-> 


1 


CO 






rH P 




rH 


rd 


rH 


4-) 


3 


CU 


rH 




rd CU 




rd 




fd 


< 


o 


p 


id 




U CU 




O 


>i 


CJ 




•rH 


3 


o 




O 







P 





>i 


4-> 


p 







rH P 




rH 


O 


rH" 


4-> 


3 


•H 


rH 




CU 






4-> 




P 


4-> 


T3 







CU 


cu 


CU 


3 


CU 


CU 


•H 


C 


rH 


E 


3 rH 


rH 


3 


CU 


3 


Cu 


4-1 


QJ 


rd 


3 


rH rd 


X 


rH 


> 


rH 





CO 


Cup 


•-\ 


rd CU 


rd 


rd 


3 


fd 


p 


3 


X 








> P 


-p > 


•H 


> 


CU 


H 





Eh 


> 


II 




II 
> 




rH 

• 

"3" 


II 




II 
> 




CU 




3 




1 






CQ 




c< 




H 




CQ 




H 




Eh 





<u 




















3 






rH 






rd 


>i 




> 


4-1 


O 




P 


-H 


n 





+J 





cu 


fd 


CO 





p 


CO 


p 







Cu 


4-> 


CO 




3 


CO 


CO 





fd 


Cfl 


E 







CO 


rH 


3 


co 


rd 


•H 





4-» 


Cfl 


CO 





3 


Cfl 


Eh 


X 


< 


II 




II 


> 
< 




p 
fd 



-70- 



13 CD 




3 O 




P C 




CO <D 


1 


P 


1 


CD CD CD 




cn cr>4-i 




<0 <0 CD 




U (X « 




CD 




O 




C 




iH CD 


in 


ro p 


"^ 


3 CD CD 




c tn«p 





<0 CD 

Cm CC 



Q 
D 

Eh 

CO CO 
Eh 

W PI 

Pi D 

O CO 

s w 

H & 



H 
t_> 

« 
P 

o 

CO 

< 

Eh 

< 



< 

H 

PC 

< 
> 



> 

PQ 

+ 

Cm 

cn 

+ 



> 

c 



in 

o 

CXI 
-a* 

.-H 

as 
-co- 

+ 
r- 

00 ^ 
iH <Ti CN 
»CO rl 
HfOh 
H - » 
•— o r- 
m ro 
n m ^f 

r-H » - 

• co- </> 



> 
C 

M 



> 

c 

H 



CO 

m i-h 
o 

CN 

cn r^ 
O iTi 

•P >H 
-P .H 

CO CD I 

e m 
o 

(0 CJ CD 
-P C CD 
CO H CO 



-P 



CN 
I 

PQ 



> 

C 

M CD 



O 
> 

tn 

<D 
C 

H 
CO 

I 

►l 

p 
c 
-p 
C 
o 
> 
c 

H 



•H 



Cfi 




m 


CD . 


0) 


iH 


c 


X! 


■H 


03 


m 


-P 


3 


3 


PQ 


X! 




-H 


H 


u ■ 


t0 


+J 


u 


+J 





< 


J 






>1 


IP 


p 





o 




+J 


CD 


c 


3 


CD 


.H 


> 


rO 


c 


> 


H 



id 

u 

o 



T3 

<D 
P 

id 

CD 
P 
I 
C 

o 

•H 
P 

3 
P 

O "H 
■H P 

p cn 
id c 

!h H 



W 



CN 
I 

PQ 

CD 
CD 
CO 



n 



CD X! 
P 



c 
o 

•H 

p 

3 
-P 

-H 
P 

cn 
c 

-H 

X3 



n 
I 

m 

CD 
CD 



CD 

E H 
3 tt) 
H 3 
O T3 
> -H 
> 
cn -h 
cn T3 
CD C 



13 

>, CD 

P P 

id <o 



3 

-P 

•H 

T3 T3 

C C 

CD O 
Cm O 

X CD 

CD CO 



Cm 
PQ 



cn 
3 
-Q 

>i 
P 

<c 

T3 T3 
C C 
CD O 
Cu O 
X CD 
CD CO 



> 

PQ 



£} cn 

CD 

p 
3 



T3 

(1) 
P 

to 



T3 
C 
CD 

Cm 

X 



cn cd 



-71- 



>i 




T3 QJ 




p o 




4-> c 




CO OJ 


r» 


j-i 


rH 


<u <u <u 




CO cnM-t 




fO tO 0> 




U 04 Pi 




OJ 




o 




c 




rH OJ 


>X> 


fO u 


■^ 


p (u a) 




c tnm 




(0 (0 0) 




SI 04 Ol 





Q 
D 
Eh 
CO CO 



Ol 
O 

s 

H 

E-i 

pq 



CJ 
P 

o 

CO 

a 



w 

pq 

< 

H 

01 

> 



> 

PQ 



+ 
i—i CO 

-< Q4 

to E 

a a) 
E — 
a) 

— Q). 

a 

a 
En + 

+ 

+ -H 

Q 04 

■HQ PQ 

a — 

E-i + 

H 

-P T3 
I I > 

rH rH X 

— -- o 



PQ 

u 



^ in 

i—i ro ud 
^ o o 
n in - 

O ^ <7\ 

in in *a< 

<Ti <* - 
C\! </> <T\ 
rH </> 

- + 

vr> + 
</> oo 

4- ^ r- 

O m » 
in ^ ^ 
r- </> oo r 



r> ^ tH 

■— ' CN </> 



H 00 

H m 



en 
o 



o 

in 

oo m 

cm - 

o 






— + + + 



CJ 
PQ 



CTi 



00 
VD 

o 

m 



PQ 
CJ 



+J 

■H 

73 

<D 

n 
u 



a 

u 
o 

<w 
o 

c 
o 

•H 
CO 

c 
to 

CM 
X 

H 



in 
l 

PQ 



r- 

rH 



oo 
-a- 



PQ 

H O 



> 

PQ 



> 

PQ 

2 





0) 
















0) 












OJ 








































> 












> 




















rH 




rH 








rH 




rH 


rH 










>-4 




















Q) 




(0 




>1 




fO 




QJ 


(0 






>1 




QJ 




















(0 




c 




QJ 




c 




W 


C 






QJ 




CO 




















0) 




o 




> 









QJ 









> 




QJ 




















01 


C 


•H 
-P 




U 

P 




•H 
-P 




Ol 


•H 
C 4-> 






5-4 

P 




Ol 


c 


















H 


■H 


3 


CO 


CO 




P 


to 


rH 


■H 3 


CO 




CO 




rH 


■H 


rH 




CN 






cn 






to 


-P 


-P 


T3 






+j -a 


fO 


-P +J 


T3 








(0 


-p 


1 




1 






1 






S-I 


QJ 


-H 


SH 


m 




•H 


Sh 


u 


QJ -H 


Sh 




Mh 




u 


QJ 


PQ 




PQ 






PQ 






CD 


■H 


-P 





m 




-p 





QJ 


rH -P 







M-l 




QJ 


rH 


















•a 


rH 


CO 


CJ 


to 




CO 


U 


TD 


rH W 


O 




fO 




13 rH 


QJ 




QJ 






QJ 






a) 


3 


c 


QJ 


-P 




c 


QJ 


QJ 


3 c 


QJ 




-P 




QJ 


P 


QJ 




QJ 






QJ 






pH 

i 


PQ 


M 

c 


Ph 

en 

-P 


CO 

c 




M 


Ol 


Ph 


PQ H 


Ol 




CO 


UJ 

c 

p 


04 


PQ 


CO 




CO 
QJ 

E 






CO 

QJ 
E H 






0) 




-H 


C 


•H 




1 








TJ 









QJ 








P 






P fO 




C 


— u 






3 




(0 


>1 




QJ 




C 









E 








rH 


1 




rH P 







PQ 




aj 


O 


QJ 


-p 







> 


QJ 


to 




QJ 


u 


P 











P 




T3 




QJ 


-H CO 


CJ 0) 




u 


CJ 


O 


c 


■H 




U 





E 




O 


(0 


rH 








> 


4J 




> -H 




E 


4-> CO 


— > 




c 


o 


C 


3 


Q4 




QJ 


c 


QJ 




C 









<0 






•H 




> 




P 


P QJ 


u 




to 


fO 


(0 





E 




cn 


(0 TJ 




tO T3 


> 




QJ 


CO 


co 


4-) 




CO -H 




rH 


4-> C 


0) 


0) 




rH 




rH 


u 


0) 




QJ 


rH 






rH 


C 






4-> 


QJ 


CO 


CO 


CO 


CO T3 




O 


■H -H 


H 


CO 




(0 


QJ 


to 


o 






U 


fO 


rH 




fO 


fO 


co 




fO 


Sh 


QJ 


C 


QJ 


QJ C 




> 


^ 4-> CO 


XI 


QJ 




X 


E X 


id 


QJ 






X 


(0 




X 


E 


CO 




rH 


P 


c 


-H 


Sh 


C -H 






> W P 


fO 


H 






•H 






E 




-P 




c 






QJ 


QJ 




QJ 


4-1 


•H 




P 


-H 




(0 


PQ C X 


-p 






>i + 


>i 





-H 




■H 


>1 







>><c< 


c 




SH 


■H 


CO 


>i4- 


tfl >i 




CO 


r2 "H 


p 


-P 




■H 




rH 


E 


-P 




CO 


rH 


-H 




rH 




-H 




1 


T! 


P X 


•H 


P X 


CO 


QJ 


— Tj 


XI 


•H 


-P 


-H 


C 


•H 


-H 






O 


+J -H 


-P 




•H 


QJ 


CO 




c 


C X 




T3 X 


QJ 


C 


E QJ 


-H 


CO 


G 


fO 





fO 


-p 


rH 




a, 


c m 


3 




(0 


QJ 


p 







QJ 




T) 


C 


T3 


U 


•H 


T3 


O Sh 


rH 





QJ T3 


•H 


X) 




rH 




QJ 


QJ t3 


-P 




T) 


>iX 




•H 


D4 >i QJ 


QJ 


>i QJ 


P 


CO 


QJ 


SH QJ 


+J 


D4 £ 




-P 




QJ 


p 




73 


E 


-H 


CO 







1 




-p 


X 


SH 


4J 


&4 U 4-> 


4-) 


p 


N 


M-) 4-> 


4-1 


CD 


01 


QJ 


3 


QJ 


OJ 


M-l 






QJ QJ 


-P 


-P 


QJ 


rH 







p 


QJ 


fO 


CO 


X 


tO ni 


■H 


PQ 


-H 


CO 


<c 


•a 


in 


tn -P 


tn 


>i 






-a 


U Cn 


CO 


C 


cn 


04 4-> 




+J 




13 


rH 


QJ T3 rH T3 




rH 


QJ -H 






•H 


fO 


•H 


(0 





rH 




c 


•H CO 


C 


3 


(0 


E 


1 





■H 


rH 


C 


P 




C P 


c 


rH 


tO 


E C 


0) 


a> 





U 


-P 


SH 


rH 


(0 




(0 


3 Sh 


•H 





rH 


QJ X 


■H 


•P 


tO 





E 


c 


E 


QJ 


fO 


QJ 


-H 


CO 


E 


era) 


Cfi 


QJ 


D4-P 


en 


E 


tT 1 QJ 




O 


QJ 




CO 


-P 


CO 





O 


•H 





O -H 


a 


O 


Sh 


E 


fO 


-rH 


QJ 


> 


C 


> 


E 





QJ 


QJ 


> 


C 


O 


> 


C 


tO 


tO 


P 





QJ 


4-) 


•H 


QJ 4-> 


X 





C 


C 73 


PQ 


EH 


S-I < 


•H 


<: 


QJ 


Eh 


QJ 


a 


Sh < 


•H 


tO < 


-H 


U 


rH 


H 


rH 


CO 


(0 


4-) 


CO CO 


QJ 


IH" 


P 


H CO 


II 




II 




ii 




II 




11 


II 






II 




II 




II 




II 






II 




II 






-H 




QJ 




CO 

04 






■H 






QJ 




> 


















vo 








Q 




a 




E 






Q 






a 




X 








Oh 






> 




1 


PQ 




-P 




Eh 




Eh 




W 




'O 


Q 






a 









w 




PQ 






PQ 




PQ 




H 



-72- 



>1 

T3 CD 




3 O 




■P C 




CO d) 


00 


Sh 


rH 


<D CU CU 




co ct>mh 




cO cO 0) 




U 0< PS 




0) 




o 




c 




rH d) 


CTi 


cd s-i 


■<* 


3 <D (1) 




c tjm-i 




cd cd 0) 




S 04 PS 





Q 
P 

CO CO 
En 
W (J 
PS P 
O CO 
2 H 
H PS 
Eh 
i-h 
< 
PQ 



W 
U 

ps 

D 
O 
CO 

< 
Eh 

< 
D 



H 

PQ 

< 

H 
PS 

> 



oo 

IT) 
PS IT) 
O - 

r» 

+ CN 

CO + 
+ CN 

Eh O 
>h - 
m 
+ t/> o 

Eh + + 
co r- 

r~ o <d 

+ dH> 

in vo * 

X »• -rH 

WOlHH 

PS </></> </> 



PS 05 ps 



I 

O 

CD 
0) 
CO 



CN 



I 

o 

0) 
CU 
CO 



n 



I 

O 

CD 
QJ 
CO 



PS 

o 



0) 

rH 

X 
CO 
-P 
P 
XI 
■H 
5h 

-P 

■4-1 

< 

co 

cu 

c 

CU 

> 

QJ 
PS 

X 
CO 
Eh 



H 
CO 
CU 
!H 

T3 
QJ 

+J 
rO 

H 
CD 
M 
I 
C 

o 

•H 
4-> 

-P 

■H 

-p 

CO 

c 



T3 
0) 

-P 
CO 

rH 
0) 

I 

c 
o 

•H 
-P 

-P 
-H 
-P 

co 
c 



en co 

CD 4-> 

C CU 

CD g 

> O 

<D O 

U C 
•H 

X 

CO CD 

-P 0) 
>i 

CO O 

CD H 

CO g 

CO W 



I 

o 



X 
Eh 
W 
PS 



Eh 
CO 



Eh 



rH 

X 
CO 
■P 

X 

•H 

r4 
4-> 
4-> 

CO 

T> 

•H 
CO 

QJ 
4-> 

CO 
■P 
CO 



< 

co 



QJ 

rH 
X) 

CO 

-p 

X 
-H 

M 

4-1 

CU 4-> 
CO CO 

O 
X! 

CU 
CU 

>1 
o 



a, 
g 

CU 



Sh 
CU 
X! 

O 4-> 

-P o 



oo 



o 
in 





•^ 






00 






ro 




X 


•» 




Eh 


CTi 




H 


ro 




PS 


</> 




+ 


+ 




CU 


m 




Eh 


m 




w 


rH 




PS 


V 






o 


r- 


+ 


<D 


cn 




</> 


m 


•H 




V 


Eh 


+ 


CTi 


H 




CT\ 


PS 


O 


to- 


II 


II 


ll 


X 


X 


X 


Eh 


Eh 


Eh 


H 


W 


w 


PS 


PS 


PS 



PS 

o 



cO 
CU 
PS 

TJ 

CU 

4-> 

CO 

rH 

CU 
PS 

I 

c 
o 

-H 

-p 

3 
-P 
■H 
4-1 

CO 

c 



I 

c 



(0 










c 




rH 




CN 







• 




• 


•H 




rH 




rH 


-p 




• 




• 


a 


CO 


rH 




rH 


-p 


T3 


1 




1 


-H 


U 


c 




c 


4-> 











CQ 


U 


CU 




CU 


c 


CU 


CU 




CU 


H 


PS CO 




CO 








CO 




-H 






T5 




X 






rH 


1 


Eh 









3 


H CO 




CQ 


XI 


co X 


PS CU 




CU 


CU 


CU -H 


"-' X 




X 


CO 


X U 


CO 




cO 


3 


CO 4-> 


CO 4-> 


c 


4-1 





4-1 4-1 


CU 


o 




-C 


cO 


3 CU 


•H 


CU 




CU 


C -P 


4-> 


4-> 


o 


4-> CO 


CU CO 


3 


CO 


CU 


CO CO 


> -p 


4-1 


4-> 


>i4-l CU 


CU CO 


■H 


CO 


o 


CO C 


PS CU 


4-1 


CU 


rH 


CU -H 




CO 




a 


CO 


X rH 


C 


rH 


g 


rH 3 


cO CO 


■H 


CO 


CU 


CO X 


Eh CU 




CU 




CU 


U 


>1 >H 


>1 5-! '--; 


CU 


X 




XI 


X 


4-> rH 




rH 




<H CU 


CO cd 


13 


CO 


13 


CO T3 rH 


-P U 


■H 


o 


■H 


U -rH X 


CO O 


CO 





CO 


cd CO 


H t-q 


CXJ 


ftj CX4J 


II 




II 




II 


-H 




a 




X 


Eh 




Eh 




Eh 


H 




W 




H 


PS 




PS 




PS 



in 





o 




















•^ 




















•^ 




















•* 




















ro 


















^-v 


CN 


















PS 


•-£> 


















\ 


• \ 


















^ 


O 


















PS 


— O 


















Eh 


VD O 


















• — 


CO ■» 


















^-* 


CO vo 


















4-1 


. rH 


















a. 

X 


.51) ( 
622,4 


n 
m 

rH 
















CO 


^-^ * ^ 


v 
















a 


rr m 


o 
















g 


o -cy> 


*x> 
















w 


■^ ^- , 


to- 
















II 


II 


ll 
















CU 


CU 


CU 
















Eh 


Eh 


Eh 
















W 


H 


H 
















PS 


PS 


PS 


m 
o 

• 4-1 

o u 




m 


4-J 

C 

0) 






UH 






r-\ 




o o 




g 


<£ 


VD 


o 






CO 


>i 


co a, 




4-> 




r- 








C 


CU 


CO CU 




>H 


CO 


CTi 


to 






o 


> 


< PS 




CO 


4-) 


rH 





C 




■H 


u 






a 


C 




CO 







4-1 


3 


T! to 




cu 


CU 


c 


C 


•H 




P CO 


co 


C CU 


r- 


D 


g 


o 


CD 


4-1 




4-> T3 




CO -rH 


r^ 




to 


-rH 


U 


CO 




■H iH 


MH 


r-\ 4-1 


1 


CU 


CO 


4-1 




rH 




4-1 O 


<4H 


>1 C 


V£> 


4-1 


QJ 


CO 


o 


p 




CO O 


cO 


SH 3 


r^ 


CO 


CO 


X 


r- 


a. 




C CU 


4-> 


cO 


cr, 


4J 


CO 


CO 


o\ 


o 




H PS 


CO 


S U 


rH 


CO 


< Eh 


rH 


o< 



CO 




QJ 


1 


X 


CU 


CO 


CO 


t^ 


3 







QJ 


ffi 


4-> 




CO 


CU 


4-) 


cu 


CO 


>1 


H 







rH 


rH 


a 


cO 


g 


CU 


H 


PS 






>1 


•-\ 


pq 


rt 







T3 





-H 


1-4 


CO 




O* 



CO 

QJ 
QJ 
>i 
O 

rH 

D. 

g 

QJ 

0) 

g 

■H 

— 4-1 

QJ 
Eh rH 
H rH 

PS 3 

>— MH 



CO 

QJ 
0) 
>> 
O 

rH 

a 
g 

QJ 
MH 

o 



QJ 
4-1 
CO 
U 

CO X 

QJ cO 
QJ g Eh 



Oi O 
(0 X 
4-1 



O 



CO 

a. 
g 

H 



rs 
cu 
o 

S-I 
0) 

P4 



>1 

4-1 

en u 

C QJ 
H CU 

c o 

5 Sh 

O o< 



4-> 



CO 

4-1 
C 

QJ 

g 

CO 

to 

CD 
CO 
CO 

CO 



CO 
■H 
4-1 
C 
CU 
T3 
■H 
CO 
CU 
PS 



CO 
CD 
U 
C 
QJ 

■H 
CO 
CU 
!h 

<4H 

O 

r4 

CU 

x 
g 

c 



cO 
4-> 
O 

Eh 



PS 



-73- 



>1 




73 Q) 




P O 




-P C 




CO cu 


1 


M 


1 


CD CU CU 




CO Cnm 




(0 (0 0) 




CJ ft Pi 




QJ 




O 




C 




■H CU 


m 


(0 M 


m 


3 CU QJ 




C tT> "4-1 




(13 03 CU 




S ft Pi 





Q 
D 
Eh 

co co 

Eh 

H r4 

« D 

O CO 

S W 

H ffj 
Eh 

pa 



H 

u 

Pi 
p 
o 

CO 

< 

Eh 

< 

Q 



w 

pq 
<c 

H 

< 
>■ 





CO 












00 












ro 












o 












^ 












*-~ 












^ 












ro 












■*r 












>J 










,— . 


.—, 










4-1 


H 










cu 


ro 
O 










M 


ca 


T 








re 


o 
ro 


00 

ro 








ft 


CM 


CA 








Pi 


</> 


ro 








II 


II 


II 








X! 


XI 


X 








Eh 


Eh 


Eh 








W 


W 


W 








Pi 


Pi 


PI 

4-1 t3 




144 

o 








C 




• 


■P 






CU CO 




u 


U 






e +j 


CO 












4-> C 


r- 


CO 


a 






>H CU 


o> 


CO 


CU 






rrj £ 


H 


< 


pi 




rH 


a co 










• 


CU CO 


C 


73 


CO 




■^r 


D CU 





c 


cu r» 




I 


10 


•H 


rd 


■h r- 




PQ 


CU CO 


■P 


rH 


4-) I 






4-> < 


rd 


>. 


C co 




CU 


(0 


X 


Sh 


3 r- 




CU 


4-) m 


rd 


rd 


CA 




CO 


CO O Eh 2 


CJ rH 



'CO 


1 

3 


CU 


X 


X 


-H 


rd 


>H 


Eh 


4-1 




4-> 


CU 


< 


+J 




rd 


CO 


4-> 


CO 


CO 


CU 


W 


c 




•H . 


rH 


CO 


rd 





CU 


m 


Pi 






>i 


rH 


XI 


rd 




u 


73 





-H 


hH 


rd 




ft 



00 



LD 



> 

PQ 

Eh 
\ 

W 



Pi 
Eh 
CO 



4-> 
CO 



Eh 

co 



CO 

CD 

00 



</> .— 
— - o 
^- o 
o o 
o * 

O CM 

» r» 

CA CM 

r~ * 

r- cn 

- o 

oo r- 

ro - 

V> CD 

— ' CM 



I 

Cn 
rd 
CO 

•H 
73 

CU 
U 
CU 
3: 

co 
C 
O 

-H 
+J 

rd 

rH 

P 
U 



rrj 

4J 
O 
+J 

CU 

X 

4J 

CO 



CO 

c 
o 

•H 

4J 
O 
-H 

73 

CO -H 
-H 

>H r-, 

-nPi 

Eh 

X CO 



c 

•H 

X CO 

rd C 

4-) O 

-H 

CO 4-1 

CU U 

rH -H 

rd 73 

CO CO 

•H 

73 U 

cu p 



rd 
cm u 

CD 

o 



•H 

10 

u 

CU 

> 

o 



Eh 
CO 



Eh rd 
CO PQ 



73 - 

0) CA 

4J r- 

n3 r- 
Cn «. 
cu oo 
U ro 
tr to- 



co co 

CU CU 
•H O 
4-) -H 

C MH 
P UH 

O O 

u 

co 



X 

rd 
E-i 

co 

CU 

rH 

rd 

CO C 73 Sh 

O C O r-\ 

rH -h rd co i 

-H CO rH CO PQ 

rd -h >i a) 

+J > U CO CU 
CU -H rd CO CU 
Pi D S < co 



rd X 

4-1 -H 
CU CO 
>H 

CU 
>iX! 

rH 4-1 

<-\ 

rd m 
u o 

O 

rH x 

u 

4h rd 

O CU 



co 

CO 

cu 
C 

•H 
CO 

PQ 



>+H 

O 
CO 

p 

CO 

c 



>£> 
CU ca 

U rH 



UH 

o 

CO 

p 

CO 

C 

a) 
u 



10 

CU 

rd 
r~- co 

CD 
CA rH 

rH -H 

rd CU 
CT>4-> U 



CU -H 
Pi UH 
MH 
CU O 
4-1 



UH CO 



X 

rd 

Eh 



CM 



I 

O 





CO 












CO 






CO 






^~. 


CU 






CU 






Eh CO 


3 






c 






CO CU 


c 






•H 






— rH 


CU 




CO 


CO 






73 


rd 


> 


73 


CO CO 


3 




CU 


CU 


CO 


CO 


CU 


CU 


CU CU 


X 


o 


4-1 


4J 


CU 




u 


4-1 


Sh C 




-H 


rd 


rd 


3 


73 




rd 


3 -H 


rH 


4-1 


U 


rH 


c 


CU 


X 


t-\ 


4-> CO 


rd 


>i rd 




CU 


CU 


C 


rd 


CU 


-H 3 


— u 


-P U 


X 


Pi 


> 


■H 


4-> 


u 


73 X 


xo 


U 


rd 


1 


CU 


rd 




1 


C 


Eh <-\ 


CU 4-> 


4-> 


c 


Pi 


4-> 


CO 


c 


CU rH 


W 


Qa c 









CU 


CU 





CU rd 


Pi Mh 


CU 


>i 


•H 


X 


U 


rH 


•H 


X u 


— O 


u g 


4-> 


4-> 


rd 


CU 


rd 


4-1 


cu o 




CU CO 


5h 


3 


Eh 


>i4-l 


CO 


a 


rH 


CU 


CU 


w 


CU 


4-1 




rH rd 




4-> 


rH CU 


r-\ 


3 


rH CU 


a 


-H 


CO 


rH U 


rH 


•H 


rd rH e 


X 


rH 


rd CO 





4-1 


CU 


rd 


rd 


4-> 


O rd P 


rd 


rd 


CU CO 


)H 


CO 


rH 


O X 


4-1 


CO 


4-> rH 


4-1 


> 


u < 


ft 


c 


rd 


O rd 





c 


rH 








H 


CO 


r3 4J 


Eh 


H 


H > 


II 


ii 


II 
















CM 


II 


II 


II 


II 






■n 


rH 


-r— i 


Pi 




> 


ft 


m 


4J 


| 


4-1 


Eh 




PQ 




Pi 


rd 


Q4 


o 




CO 


CO 


w 


En 



00 



in 
m 



co 

Cu 
E 
W 



K 
V. 

Eh 
>h 
Eh 



Eh 
>h 



O 

o 
o 

00 

ro 



CM 
\ 
O 

o 

o ^-> 

•* rr 
ro o 
in -*r 

^r -^ 

00 o 

r- o 

rH • 

to- ^-{ 



Eh 
>h 

m 
O 

4-> 

c 

CU 

e 
+j 

>H 



00 

in 

in 

v. 

r- 

CM 



Eh 



CO CA 

CO 4-> rH 

Cu C 

CU CU c 
DEO 

CO -H 

0) CO 4-1 

CU ro 

CO X 

CO rd 



4J 
rd 
-P 



CO <C Eh 



-H 
4-> 

CO 
•H 

+J CO 

rd 4-> >i 

4-> O CU 

CO rd 
5-1 

73 4-> 

£ CO CO 

rd X 

H < M4 

>1 >r4 

5h rH rd 

rO rO 4J 

S o co 



r4 

3 



(0 

c 
o 

•H 
4-> 

3 to 

4-> 73 
-H >H 
-P O 
CO U 
C CU 
H Pi 







CO 






CO 


CU 






CU 


p 






CO <D 


c 




CO 


CU >i 


CU 




73 


CU 


> 




<-{ 


>1 rH 


X 


CU 







CU 


rd 


JH 




X 


rH E 


Eh 






CU 


CU X CU 




X 




CO 


E rd 


CU 


rd 







CU 4-1 CU 


E 


-P 




o 


E 









X 


4-1 CU -rl 


u 


in CU 






E 4-> 


c 


>H E 




rH 





H 


— 




rO 


CU O rH 




O 




U 


trCH 


CU 


CO 


C 


73 


O 


rO -H P 


CU 


cu 


•H 


CU 


rH 


+J MH 


>1 


3 




C 




C Cn 





C 


rH 


■H 


rH 


CU C rH 


rH 


<u 


rd 


(0 


rO 


O -H rO 


Cu 


> 


4-1 


4-> 


4-1 


r4 >i4J 


e 


CU 





CU 





CU (0 


H 


Pi 


Eh 


U 


EH 


ft CuEh 


ro 


II 




II 


1 II 


a 


■n 




CO 


rH 


Eh 






Cu 


1 


>H 




X 


E 


u 




Eh 




X 


■H W 



-74- 



>1 




T3 0) 




3 U 




-P C 




CO qj 


CD 


Jh 


H 


Q) 0) QJ 




(/) cn m 




fd fd Q) 




CJ CM Pi 




QJ 




U 




c 




rH QJ 


^O 


fd 5-1 


in 


3 QJ QJ 




C cnm 




(0 (C 0) 




2M^ 





P 

P 

Eh 

CO CO 
E-< 



H 

PS 
O 

2 

H 
Eh 
P 
< 
CQ 



W 

pq 
< 

H 
PS 
< 
> 



w 


rH 


u 


• 


PS 


<* 


p 


• 


o 


rH 


CO 


| 




o 


< 




Eh 


QJ 


< 


QJ 


P 


CO 



cn 



QJ 



O 
-P 

QJ 
■H 
X! 
(0 
-P 

X) 
•H 

•P 
•P 

< 

•H 

<: 

QJ 
-P 

fd 
-P 
co 



o 








XJ 


-» c 


td 


<; £ 


-p 


CO u 


3 


— ' CO 


XI 




■H 


0) 


o 


U 


T3 


•H 


-P 


H 


iH 


-P 


O 


X! 


fd 


x 


3 




0) 


Cm 


U) 


C/J 




QJ 


3 





QJ 3 


O 


-p 


H C 


HI 




X! QJ 




T3 


(d > 


0) 


-H 


-P QJ 


QJ 


(0 


3 H 


>i 




XI 


o 


QJ 


•H U 


rH 


-P 


U QJ 


a 


fd 


-P £ 


e 


-P 


•P -P 


w 


CO 


(d O 



CO 



r- 





o 










+ 






o 
f- 


PS 


o 


o 


w 


m 


o 


rH 


rH 


CO 


— 




^ 


iX> 


• — 


.—* 


+ 


V 


V 


^-* 


rH 




cn 


<Ti 


u 


»-* 


CO 


rH 


■H 


— - 


co 


CM 


</> 


■CO- 


Z 


in 


II 


II 


II 


II 


II 


< 


< 


< 


CO 


CO 


CO 


CO 


CO 


CM 


CM 



CO 

CM 



o 



01 

rH 

o 
o 

u 

CO 

o 



X! 

3 

CM 

o 
-p 

■a 

-H 

< 

QJ 
-P 

(d 
-p 

CO 



I 



>1 

QJ 
> 
Sh 
3 
CO 

MH 

m 
(d 
-p 
co 



i 

0) 
cn 

o 

X! 



cn c 

-. QJ Q) 

•H QJ H 

CO >iT3 

CM O rH 

- rH -H 

cmx 



o 

rH 
X) 

CTi 

rH 



CO 

CM 



>i 
QJ 
> 
U 

3 
CO 

m 
m 
fd 
-P 
co 



I 

■H 
-P 

W 
•H 
■P 

fd 
-p 



-P 
o 



co fd 



T5 
C 



-P 
cn 



fd X! 

rH < 
>1 
SH rH 

td fd 
S o 



c 

QJ 

u tn 



e 

0J 

o 





-p 

■H 

)H 

qj tn 
X! T3 

e h 

3 O 
2 XJ 



U 

m 
O 

cn ^ 
H QJ 
O X) 

o e 



X! 
U 3 
CO 
QJ 

u cn 
•h fd 

rH U 
XI QJ 
3 > 

Cm<C 



o 

QJ U 
cn qj 
3 CM 

o 

X! T3 
-H 

cn td 
QJ 

QJ QJ 
>i-P 

o fd 

H -P 

Cm cn 

s 

QJ 

fd T3 
^ -P 3 
0) O -P 
CmEh cn 



-p 

a 

QJ 



CO 



CO 

in 



U 
O 
co 

CM 



u 
o 
s: 



o 



rH 


3 


fd 


X! 


CM 


•H 


•H 


iH 


O 


-P 


-H 


-P 


3 


< 


3 






cn 




QJ 


MH 


O 





-H 




> 


-p 


M 


cn 


QJ 


O 


CO 


CJ 






rH 


cn 





3 


o 


•H 


A 


-P 


u 


fd 


CO 


u 




QJ 


>a 


CM 


c 


o 


fd 



CTv 
CN 

O 

m 



co 



co 



O 

O 



CN 



CN 


CN 


1 

o 


1 


QJ 
QJ 
CO 


QJ 
QJ 
CO 



cn 
-p 

03 

O 

o 
c 

•H 

-p 
fd 
n 

QJ 

CM QJ 

O rH 

XI 

rH fd 

td -P 
Cm 3 
•H X! 



•H 

U 



w 
co 



CN 
I 

o 



o 
a 



cn 

c 

-H 
-P 

fd 
u 

QJ QJ 

CMrH 

O X! 

rd 

rH -P 

O 3 
O X 
H 

cn +J 

-P 

u fd 

■H 

rH +J 

X cn 
3 O 
CM O 



X! 
O 



U 

o 

CO 

CM 



in 



cn 
-P 
cn 
O 
CJ 

tr> 

c 

-H 
•P 

fd 
u 

QJ 

Cm| 

O 



fd 

Cm 

■rH 

o 

•H 

C 
3 
g 



CN 

I 



o 
o 
o 

CO 

n 



<N 





m 
















vo 
















00 
















— 
















o 
















o 
















o 
















«h 














^-^ 


m 














CM 


<D 














O 


rH 






ro 








CM 


o 






00 

rH 








X 


m 






^ 








ffi 


o 






00 








w 


H 














CQ 


</> 






</> 








II 


II 






1 








U 


CJ 






U 








o 


O 






o 








s 









s 






H-4 






• 


-p 






MH 




. -p 




u 


M 






IH 




u u 












rH 


fd 




O 




cn 


Cm 




fd 


-p 




cn Cm 




cn 


0) 




c 


co 




cn qj 




< 


OS 






-H 


ua 




< PI 




T3 


cn 




-P 






13 cn 




C 


0) 


r- 


3 


cn 




C QJ r- 




td 


•H 


r- 


+J T3 


>i fc - 




rH 


-P 


l 


-H 


u 


QJ 


rH -P 1 




>1 


C 


vo 


-P 





> 


>1 C VD 




)H 


3 


r- 


cn 


o 


M 


U 3 r» 




fd 


O 


o~> 


c 


0) 


3 


td D cr> 




a 


CJ 


rH 


H 


PS 


CO 


S CJ rH 





tr> 








C 








•H 








13 


cn 






3 


c 


cn 


3 


rH 


O T> 


O 


o 


cn 


rH 


•H 


X 


5h 





-P 


— QJ 


QJ 


X 


td 


CJ 


CM 


QJ 


rH 


O -P 




cn 


3 


S QJ 


m 


3 


CM 


— ■ cn cn 





O 


O 


T3 rH 




X 


CM 


QJ 


3 o 


u 






rH 


X 


QJ 


QJ 


rH 


X 


X 


X 


QJ 


td 


id 


cn U 


g 


>i 


u 


+j 


C cn 


3 


O 


O 


3 


•H 


G 


rH 


rH 


X 


■P o 




CM 




■H 


fd -h 


rH 


E 


rH 


M 


U rH 


fd 


QJ 


fd 


-P 


QJ X 


4-> 




-P 


+J 


CM 3 


O 


3 


O 


< 


o a 


Eh 


•H 


Eh 


II 


II 




II 




■n 






•r- 




•i—i 




X 




CM 


■n 


X 




O 




CQ 


H 




CM 



-75- 



>1 






T5 




CD 


P 




u 


4-> 




c 


CO 




CD 


CD 


CD 





CO 


Cnm 


m 


(13 





u 


Cm 



u 
c 


rH 




CD 


(Tj 




n 


3 


<U 





c 


CH4-I 


fO 


fO 


CD 


s 


Cm 


a 



Q 
D 

En 

co co 

Eh 

H J 

Pi D 

O w 

£ W 

H Pi 
Eh 

PQ 



H 
U 

Pi 
P 

o 

en 

Eh 

< 

D 



W 

PQ 

< 
H 

> 



00 



^ 



U 
Eh 
\ 
U 



PQ 
CO 



U 

o 

CO 

Cm 



00 

rH 
ID 

CN 
ID 

\ 

ro 
in 



o 
o 
o 

r- 

CN 

CTi 

00 

i/y 



CJ 
O 

CO 

Cm 



<+h 
o 



CM 

o 



CJ 

o 
co 

Cm 



C O 

o u 

H CO >, 

CO CD CD 

CO > 

CD U 

Pi P 
CO 



> 

-H 

Q 



+J O Mh 

fO CO fO 

-P -H -p 

CO Cm CO 



I 

•H 
-P 

CO 
-H 
4-1 

03 
-P 



CO 

-p 
u 



CO <0 
54 



■a 

c 



-p 

CO 



rH < 

u -h 

tO fO 



CD 



C 
-H 
-P 
ITj 
M 
(D 

a|x 

(0 

■P 

XI 

•H 

54 
+J 

-P 



CJ CO 



O 
O 

u 

CO 

u 

•r4 

rH 
X 

p 

Cm 



oj 



O +J 

CO CD 
CM CP 

-* T3 



o 

c 

CD 
U 
T3 



O 

o c 

x cd 

o n 

CO T3 



p 

X! 

in 
C 
■H 
P 
(C 
Sh 
CD 

o 



o 
o 
X 
o 

CO 



•H U 

x -h 

O rH 

XI 

m p 
O a 



54 

CD 
XI 

e 
c 



to 

4-> 
O 

Eh 



■H 
X! 

O CO 

rH 

1+4 O 

o o 

X 

u o 

CD CO 
X 

e o 

P -H 
£ rH 

X 

rH P 

crj a 

p 

o c 

Eh -H 



OJ 


-r-i 


•r-i 


T 


1 


PQ 


-H 


CJ 


CJ 


CO 


u 


Eh 



a\ 



CN 





o 


.-^ 


o 


PQ 


o 


CO 


fc, 


\ 


o 


U 


+ *=r 


o 


ro 


CO 


m - 


CM 


co o — 


— ' 


HI^O 


*-^ 


» VD O 


CO 


CO WO 


Cm 


rtf ^ «. 


CJ 


VD [-> 


•— ' 


<J> + OJ 




*-* CT. 


+ 


-^ O » 




O O 00 


»-> 


o o ^ 


PQ 


O *• KD 


\ 


- LD </> 


U 


n^x 


o 


O rH CTi 00 


s 


oo *oj en 


^^ 


- O TJ< rH 


^- 


cn in - - 


E 


f OO^f 


Cm 


m »m r- 


CJ 


</> rH </> CN 





'»-' </> '— </> 


II 


II II 


CM 


CM CM 


o 


o o 



I 

o 

r4 

Cm 

4-> 

C 
CD 
E 
C 

>H 

CD 
> 


a 
o 

CD 

rH 
(T3 
> 



4-> ^ 

c 

CD CO 

E P 

4-> C 

U CD 

crj g 

a co 

CD CO 



4-> 

c 

CD 
E 

4-> 

u 

CO 



CO 
4J 

c 

CD 

E 



o 

CJ 

>1 
+J 

u 

CD 



CD 

CO -H 

CD CO P 

4-> <C CO 

(0 X 

p l+H CO 

CO Eh 



4-1 CO 

C r-i 

CD 

E O 

C X 

U U 

CD CO 

> 

4-> 

Cn Cm 
CD 

rH U 

rH X 

CO CD 

M-l >i 

4-> 

!h 

CD CD 

P Cm 

rH 

(0 >-l 

> Cm 



Cm co 

CD W 

Q CD 

(0 

CO 

< 



-p 

C 
CD 
E T5 



CN 
I 

cu 

CD 
CO 



I 

o 

u 

CmX 

p 



5h 



CD 

4-> 
CD to 
> -H 
O O 
tn O 

co 
m co 
O to co 

rH 

(D >i o 
P P 

rH 5-1 X 

tO CD O 
> Cm co 



U 

o 

CO 
CO 



4-> 

U 

o 

Cm 
CD 
Pi 



-0 

c 

irj 



4-> 

co 
O 
O 

cp 

C 

•H 
4J 

(0 

CD 

Cm CD 

O rH 

X 

rH t0 

tO P 

Cm P 

•H X 



CO 

CD 
■H 
4-1 

C r- 
P r- 
O I 

U r- 

(0 «H CTN 

S O rH 



C 

•H 

P 



CN 

■ 

CN 
I 

o 

CD 
CD 
CO 



1+4 
O 

X 

c o 

o u 

•H tO 

10 CD 

■H CO 



> 

-H 

a 



CD 

Pi 



CD tO 
P U 
fO CO 
P -H 
CO fe 



ro 


E 


CO 


u 


1 


Cm 


CM 


o 


CJ 


a 


o 


s 



u 

X 

CD 

4-> 
CD 
tn en 

T5 rH 

P o 
X O 
X 
5i U 
C CO 
•H 

4-1 CJ 
(0 -H 
54 rH 
CD X 
Cm P 
O Cm 

II 



PQ 



tn 
C 

-H 

4-1 
fO 

5h CD 
CD rH 

CmX 

O tO 

P 

rH P 

O X 
-H 
X 
O 
CO 



O 



X 
P 
Cm 



C 
•H 
4-> 
fO 
54 
CD 
CU 

o 



co 

rH P 

CD 

o tn 

X TJ 

U P 

CO X 



u 

O -r-i 

CO PQ 

Cm CO 



-76- 



i 



CTi 



<T\ 



CN 









LD 





















"3* 




















o 












00 








\o 








CN 












*» 








r- 












^ 










ro 








VO 










<Ji 


M3 










</> 








*» 












O 


















•^r 








CO 


• 










•H + 








00 








rH 


w 










Eh 








rH 












*— *, 










O 








W 










• 


O 










+ 








H 










a 


in 










+ 








^ rH 










a 


• 










•H 








rj v> 












^-^ — - 










hH O 








O — 










QJ 


+J 


















in 










QJ 


Q. o 










+ + 








+ ^> 










cn 


>-^ \o 


















o 












-~* r-\ 




* 






•H rH CN 








W O 












u 




in 






en m r~- 








—' o ^~. 










# 


m cm 




V£> 






n rH 








X o cn 










•p 


»— <y> 




r^ 






+ 








. 00 










Oh 


X O^ 




*. 






cxi ro 








+ rH 










E 


c 




CTi 






•h cm n 








+ - 










QJ 


> H 




in 






Ch </> </> 








en oo 


in 








X 


< co- 




•co- 






II II II 








E o <D 


rH 








QJ 


ll II 




ll 






co en en 








fa o* to- 


rH 








X 

cO 


X X 




X 






> > > 








ll II 


II 








-P 


Eh Eh 




Eh 






en en en 




















fa fa 




fa 






en cn en 








h> i^ 


ro 








•H 


m 




<H 




4-1 




















id 

E 







O 



















• 






QJ 

rH 


+J 




P 




-p 






















C 




c 




c 












Ph 








rH 


QJ o3 




0) 


c3 


QJ eg 


rH rH 


rH 


rH 




rH 










rH 


E 




E 




E 


CO CO 


CO 


CO 




cO 


X 








•H 


-P en 




P 


CO 


P CO 


c c 


c 


c 




C 


■H 








s 


Sh -p 




u 


4-> 


Sh P 


O 










O 


T3 










(0 C 




cO 


C 


(0 c 


•H -H 


■H 


■H 




■H 


c 








>1 


a qj 


c 


a. 


QJ 


came 


-p -p 


p 


-p 




P 


QJ 








-p 


0) E 





0) 


E 


O QJ E O 


P co 3 


cn p 


CO p 


CO 


p tn 


D< 


rH 






U 


a to 


•H 


D 


CO 


•H Q CO -H 


•P r OP r O-P r O-PT3 


P t3 


a 


1 






QJ 


CO 


+J 




CO 


P CO -P 


-H U -H 


Sh -H 


Sh -H 


U 


-H S-l 


< 


PQ 






CX 


>i QJ 


03 


>i 


0) 


(0 >i QJ tO 


-P O -P 


O -P 


P 





+» O 













-P CO 


X 


-P 


CO 


X -P co x 


CO u CO 


U cn 


O CO 





cn o 


QJ 


QJ 






SH 


•H CO 


fO 


•H 


en 


ra -H CO (0 


G QJ C 


QJ C 


QJ C 


QJ 


C QJ 


QJ 


QJ 






P* 


CJ < 


Eh 


u 


< E- u .< H 


M « M 


Pi h 


Pi M 


cr; 


H Ph 


en 


en 




































T3 




























c3 


QJ 


-p 




















i 






QJ 


C 


a 










CO 


T3 -P 


P 








QJ 






rH rH 


S 


(0 


E \ 










QJ 


1 QJ QJ 


QJ 


£ 






Sh 






CO X 





a; 


0) T3 










U 


P T3 QJ 


T3 QJ 


to 




CO 


•H 






0, co 


1 


X 


X QJ 










-H 


O -H Sh 


QJ Sh 


(0 




QJ 


P 






•H -P 


>i 


<T3 


0) -H 








QJ 


> 


QJ > -P 


T3 -P 


S-l 




QJ 


eT 






O P 


■P 


Eh 


1 Cu 









-P 


rH 


en o co 


-H cn 


T3 -P 




>i 


QJ 






-H X 


•H 




C P 




•H 




(0 


QJ 


u 


> 


QJ 


'O 


O 


S-t 






C -H 


O 


d) 


o 


c 


-p 




rH 


en 


— . m a'w 


4h 


T3 Hh 


QJ 


to 


rH 








P Sh 




4J 


c u 





(0 








en o i 


rH 


■H 


'O 


XI 


a 


P 


T3 




E P 


rH 


re 


— o 


-p 


Sh 




X 


H 


> 4-1 


a 


> 


•H 





E 


C 


CD 


CO 


-P 


rH 


+j 


x m 


■H 






CO 


(0 


Cn 4-> rH 4J 


i -p 


-P 


> 


l-D 


QJ 





-P 


0) 


m co 


CO 


ca 


Eh O CO 


p 


P 




-P 


a 


en co qj to 


m cn 


Sh cn 







^~. 


E 


CO 


Sh 







w 


fa tn 


3 


c 






•H 


— O co o 


rH 


CX 


S-l 


rH 


I-D QJ 


>i 


rH 


P 


CO 


-P 




— QJ C 


p 


CD 




>i 


U 


o o 


QJ U 


1 u 


a 


CO 


— E 





QJ 


-P 


-P QJ 


CO 


rH 


P -H 


■H 


E 




-P 


-H 


V 


en 


en 


Uh 


i 


O 


-H 


rH 


Sh 


-H 


CO o 


X 


10 


0) 


rH T3 


CO 


CO 




rH 


c 


QJ 


rH QJ rH 


rH 


rH rH 


Uh 





QJ 


-p 


a, 


| 


T3 


-H 


+> 


0) 


rH 


(0 rH 


C 


CO 




QJ 


p 


T3 


CO U CO 


QJ fO 


QJ cO 


rH 


J 


rH 




E 


C 


C 


U > 




a 


X 


> "rH 


-H 


0) 




CX 


S 


-H 


O -^ ^ 


O P 


cn p 


QJ 




X 


rH 


QJ 





QJ 


SH 


CO 




id 


P 




CO 




o 




> 


C > C 


c c 


d 


CO 


Uh 


cO 


rH 




•H 


Ch 


Cn qj 


QJ 


cu 


+j 


T> X 


>1 


CO 




Sh 


4h 





CMC 


fO c 


Cn c 




O 


-p 


P 


rH 


-p 


X 


C to 


E 


c 


3 


a) 


X! 


rd 




a. 





rH 


c0 QJ cO 


C CO 


C CO 


rH 




p 


m 


cO 


p 


QJ 


•H 


P 





XI 


CO L« 












Cm 


en 


0) 


•H 


fO 


U 


X 




C 


-p 




P rH 


CO 


Cn 


•H 


(0 


TS 


rH 




rH 


QJ 


1 


rH rH 


-P rH 


P rH 


> 


QJ 


•H 


rH 


•H 


•H 


rH 


CO O 


CO 


QJ 


rH 


cu -a 


cu 


fO 




CO 


P 


Uh 


CO >1 CO 


C CO 


^ CO 





X 


Sh 


cO 


rji-P u 


rd 


Sh 


< 


H 


-P 


w c 


c 


o 




O 


rH 


rH 


P -P -P 


-H -P 


tPP 


E 


E 


P 


p 


Sh 


C to 


U 


QJ X 







■P 


CO (C 


s 







O 


CO 


QJ 


-H 


cO 


•H 


QJ 


P 


-P 





(0 


QJ C 





Cu U 




fa 


< 


<C rH 





hH 




J 


> 


en 


Eh r-i Eh 


E H 


rH Eh 


Sh 


2 


< 


Eh 


S 


E H 


rH 


O co 


• • 

QJ 

•p 


II 




II 




II 


II II 


II 


II 




II 


II 


II 




II 

































X 


















to 










2 


"3* 


C 










in 










rH 


a 












1 


> 




u 




P 


I 


•H -H 


•H 


1 










O 




o 




4 




<0 




a 


O 




(1) en 


a 


Eh 




H 




fa 


X 


W 




o 


* 



-77- 



>1 






T3 


<u 




3 


u 




p 


c 




CO 


CU 


rH 




P 


cm 


QJ 


CU CU 




CQ 


trim 




<d 


rd cu 




u 


CM OS 

CU 

u 

c 




H 


CU 


1^5 


fd 


p 


X) 


a 


CU CU 




3 


trim 




(0 


(0 cu 




a 


CM OS 





w 
u 
M 

D 

o 

CO 

< 
E-< 

<c 

Q 



W 

CQ 
H 

> 



CO 
0) 
CU 

H 
o 

rH 

e 

4-< 

O 

CU 

e 
o 
o 
c 



id 

c 

o 

CO 

$-i 

CU 
CM 



CM 
I 



r- 
en 



v> 







in 






r- 






«* 




^ — * 


• 




U 






o 


+ 


>H 


+ 


CM ^ 


D 




CM ^- CO 


D 


w 


CM CO CM 


Eh 


-— - 


» 00 - 


CO CO 


a 


rHHIC 


EH 




■*r ^ r- 


W J 


+ 


o oo cc 


OS P 




» r-- «• 


O CO 


CU 


^r >x> cri 


£ W 


IS 


</y </> -to- 


H P3 






Eh 


ii 


ll II 


PI 






< 


{H 


>H >H 


CQ 


CM 


CM CM 



CQ 



(d 
3 
o 

■H 
-P 



3 

CU 

3 CO CM 

4J-o a 

-H P < 

-P o 
CO o cu 

C CU CU 

h os co 



o 
-p 

c 
o 

-H 
P 

(d 

CO 

3 

CU 
Cm 
£ 
O 
O 

CO 
CO 

O 

p 
o 



p 

CU 

CM l 

c 

CO O 

-P -H 



-H 
4-1 

o 

P 



cmp 

CO 



3 

•rH 

mh 
o 



-a 

3 

td 
w 
cu w 

CU rH 
>irH P 

o o m 

H i-l rH 

Cm >i-h 
E <d O 
CU CM T3 

II 



I 

CO 

CU 
CU 
CO 



(d 

u 
o 

rH 

(0 

CU T3 

P CU 

3 P 

p (d 

•H rH 

T3 CU 

c u 

CU I 
Cm C 
X o 

-H 

p 
-a 3 

CU P 
P -H 

cd P 

rH CO 

CU 3 

P H 

II 



CM 

I 

o 

CU 
CU 
CO 



I 

rH 3 

rd X! 
Cm-h 

u 

p 
-p 
td 



u 

•H 

c 
E 

o 
p 

CO 

o 
u 



CO 
CU 

u 

-H 

> 
p 

CU 
CO 



en o 
c o 

X! 

u 

CO 



p 

rd 

p 
Cm CU TI 

x a c 
cu o (d 

II 



CU 

rH 

X! 

p 



CM 



r- 





•*r 






CO 






CM 






*. 






VC 






r- 






ix) 






N 






CTi 


in 




</> 


X) 




— ' 


CTi 


>H 


rH 


CTi 


CM 


m 


CT. 


— 


o 


CM 


M 


• 


•co- 


II 


II 


ll 


C 


U 


U 


Q 


Q 


D 



CO 
CU 
CO 

fd 
X! 
U 
P 

3 
CM 

CQ 

O 
O 

O 

CU 

rH 

XI 
(d 
p 

3 

a 



CQ 



X 




•H 




T3 




3 




CU 




Cm 


CM 


a 


1 


<c 


M 


CU 


CU 


CU 


CU 


CO 


CO 





CO 




CU 




rH rH CU 




Cd XI rH 




C fd X! 




OP fd 




co 3 m P 




P 'O 3 


5 


CU XI 


a 


Cm 3 CU -H 




E P 




<JH OP 


cu 


P O P 


rH 


3 3 fd 


X 


3 CU -H 


fd 


O CM CO 


p 


•H CO rH CU 


3 


p fd cu 


X! 


P CU 3 >i 


■H 


O E 


P 


Cm O co rH 


P 


O U P Cm 


P 


P 3 CU E 


< 


CM -H CM CU 



CU 



CM 



H 





CO 






u 


1 




>H 


o 


M 


M 


CM 



-78- 



APPENDIX B 

Multiplier and Secondary Spending Effects 

The "multiplier effect" describes the process by which 
a dollar of primary or direct expenditure in the community 
is expected successively to generate some multiple of its 
original impact on the local economic base. For example, a 
dollar paid to a resident employee of an arts institution 
will be spent partly on local goods and services and partly 
on products or services from suppliers outside the community. 
The portion spent locally goes to local businesses who, in 
turn, spend some share locally and the remainder with outside 
suppliers, and so on until "leakage" to outside vendors 
completely exhausts the initial spending effect. The final 
impact of the initial expenditure will be some multiple 
varying directly in size with the fraction respent locally 
and varying inversely with the amount of "leakage" to outside 
suppliers from the local spending cycle. A typical multiplier 

value is calculated as 1 where mpc is the "marginal propensity 

1-mpc 
to consume (that is, the fraction of income spent) locally" 
and 1-mpc is the rate of "leakage" into outside purchases. 

The larger and more diversified the local economic base, 
the more self-supporting the community is likely to be and 
the larger will be the proportion of local direct expenditures 
retained and respent locally, that is the larger will be 
the anticipated multiplier effects. Because we do not have 
direct survey evidence on the amount of total business 
spending generated locally by local suppliers in the Baltimore 
region, we have interpolated an approximate multiplier value 
from data for cities of varying size in the U.S. 



-79- 



TABLE 9 



Multiplier Values for Baltimore Arts Study 



Assumed Multipliers 



m 
P 


1.818 

• 


mi 


2.857 


P 


.475 


X 


.000065 



Model 



B-2 



B-3 



1-2 



1-1 



Range of Multiplier Values 
Used in Other Studies* 

1.15 - 2.50 

2.0 - 4.0 

.25 - .66 



.00007 - .00009 



.031 



1-3 



Similarly, the larger the local market area and the more 
diversified and integrated its economic base, the easier it 
can absorb additional local demand from arts institutions ' 
expenditures with smaller additional requirements for labor 
and capital. This means that nip, the marginal employment 
requirements of an additional dollar's worth of local 
institutions-related spending and m^ , the marginal addition 
to payrolls and profits from an additional dollar's worth of 
institutions-related spending, will also vary by market size 
and can be interpolated from national data on other cities. 

Other studies have characterized these respending 
coefficients as "multipliers" and used them to estimate the 
total of direct and indirect effects by multiplying total 
institution expenditures by the multiplier. Equations B-2 
and B-3 of this model are intended to estimate indirect effects 
only. Therefore, as used in calculations the coefficients 
m-[ and m p are reduced by 1. 



*See Caffrey and Isaacs, Estimating the Impact of a College 
or University on the Local Economy , pp. 44-45; and S.J. Weiss 

Employment 

to 



and E.C. Gooding, Estimation of Differential 
Multipliers in a Small Regional Economy 



the Federal Reserve Bank of Boston, No. 



(Research Report 
37, Boston, 1966) 



-80- 



APPENDIX C 
The Employee Survey 



Included in this appendix is a sample confidential 
survey for distribution to employees and guest artists. 
The questionnaire is included for illustrative purposes only 
Researchers may choose to add or omit questions depending 
on the economic effects they intend to identify and the 
extent to which they will utilize data on the general local 
population on the assumption that institutional employees 
and their households are not dissimilar. We recommend 
conducting an employee survey whenever possible. There may 
be important respects in which institutional employees are 
likely to differ from the general population. 

As in the case of survey questions 4 and 9, researchers 
will have to include jurisdictional categories and names in 
keeping with local and state names and types, for example, 
county, parish, township. In addition, institutional 
auditor's reports are for the previous fiscal year, while 
the employees surveyed are those employed at the time of 
the survey. Researchers must make the assumption that the 
characteristics of current employees are not dissimilar to 
those of the previous year. However, if the number of 
employees at the time of the study is different than the 
number covered by the auditor's report being used, then 
researchers will have to weight results accordingly, using 
the last fiscal year's number of employees. 

Further, a non-professional might begin designing 
the survey instrument by listing all data on employees and 
their households that will be required by the equations to 
be used. One might also seek the advice of experienced 
researchers, perhaps taking advantage of local college 
or university resources. 

The questionnaire solicits personal information; 
response rates may be increased by providing envelopes in 
which respondents can return questionnaires. 



-81- 



SURVEY OF STAFF 

The Johns Hopkins University Center for Metropolitan Planning 
and Research is assessing the impact of arts and cultural 
institutions on the economy of the Baltimore Metropolitan 
Area. This study is intended to serve as a national model of 
use to other metropolitan areas in evaluating the impact of 
their arts and cultural institutions. PLEASE DO NOT IDENTIFY 
YOURSELF ON THIS QUESTIONNAIRE. BE ASSURED THAT ALL RESPONSES 
WILL BE KEPT IN STRICTEST CONFIDENCE. We appreciate your 
cooperation. 

PLEASE RETURN COMPLETED QUESTIONNAIRE TO THE GENERAL MANAGER'S 
OFFICE IN THE ENVELOPE PROVIDED. 

If you are resident full or part-time staff with this institution, 
please answer questions 1 through 10. 

If you are a guest artist with this institution, please begin 
with question 11. 

1. Are you employed at this institution full time or part time? 

full time part time 

2. How many persons are in your household, including 
yourself? 

3. How many of the children in your household attend public 
elementary or secondary schools? 

4. Where is your residence? (CHECK ONE) 
a) City 



b) County 

c) Other State County 

d) Out-of-State 

5. In what type of housing do you now reside? 

rental housing 

home you own or are buying 



If you own your home or are buying, approximately what 
was your last annual property tax bill? $ 

What is the total annual salary income before taxes and 
payroll deductions of ALL PERSONS (including yourself) 
who live in your household? $ 



-82- 



8. What is the total annual non-salary income (rents, 
interest, dividends, etc.) of ALL PERSONS (including 
yourself) who live in your household? $ 

9. What percentage (0%, 10%, 20% 100%) of your 

Total Household income, after taxes, do you estimate 
is spent within: 

a) City 

b) County 

c) Other State County 

d) Out-of-State 

10. For All Members of Your Household , please estimate the 
aggregate monthly average balance in State banks, credit 
unions, and savings and loans: 

checking accounts $ 

savings accounts $ 



THE FOLLOWING QUESTIONS ARE FOR GUEST OR NON-RESIDENT ARTISTS ONLY 



11. If you a guest artist, how many days will you stay in 
the metropolitan area on this visit ? 

12. Approximately how much will you, your family and those in 
your entourage, spend while in the metropolitan area? 



13. Approximately what proportion of this money will be spent 
in the city as opposed to the suburbs? 



-83- 



APPENDIX D 
The Audience Survey 



There are great problems associated with the use 
of self-administered audience surveys in developing meaning- 
ful data on audience expenditures. Distributed and collected 
at the arts organizations, these survey instruments ask the 
respondent to report total expenditures associated with 
attendance at the arts event apart from ticket or admission 
costs. A major problem is the variability of audiences with 
program content and location of event. The exhibits at 
museums may vary appealing to a somewhat different audience 
each time. Conversely, heavily subscribed performing arts 
organizations may be attended by the same audience of 
subscribers regardless of the program. In all cases, a 
difference in the time, day of the week, and location of the 
events may effect audience composition. 

Aside from the general problem of assuring "representative" 
audiences when sampling only a few program events, there are 
specific problems associated with the identification of ancillary 
expenditures. If the respondent will incur expenses after the 
performance or museum visit, he or she may not know how much 
they will spend, and may not have even decided yet to incur 
expenses. Respondents may be able to accurately cite only the 
expenses they incurred up to the time they were asked to 
complete the survey. 

When individuals incur expenses, they typically are due 
to costs incurred not just by themselves, but by someone 
else, such as their spouse, children, relatives, or friends. 
Thus, responses can only be meaningfully interpreted as 
average expenditures by parties or groups of various sizes. 
This would seem to require respondents to identify party size 
or otherwise to indicate the number of persons covered by 
the expenditures reported. If the respondent did not pay the 
group expense — if, for example, a spouse or friend did — 
then he or she may not know how much was spent and may not 
be willing to find out. Our procedure calculated total 
ancillary audience expenditures from data on total expenditures 
by party, stratified by party size. 

There are difficulties associated with the design and 
implementation of self -administered audience surveys. This 
report is not the proper vehicle by which to explore these 
issues. We raise them now in the belief that our procedures 
are the most sophisticated to date with respect to the use of 



-84- 



self-administered audience surveys to identify audience 
expenditures. Neophytes would do well to secure the 
services of survey research professionals. They might 
consider utilizing the talent associated with local institu- 
tions of higher learning or local planning departments. We 
believe that further research needs to be done on alternative 
strategies for estimating audience expenditures, perhaps in- 
cluding interviews and questionnaires distributed at the 
surveyed events to be completed and returned by mail after 
respondents return home. 



-85- 



APPENDIX E 
Total Full-Time Employees and Full-Time Equiva lents 

In several equations, we suggest that researchers 
aggregate part-time employees into full-time equivalents, 
and/or treat part-time employees separately from total 
full-time employees. These models require data on the total 
number of individual jobs, not the total number of individ- 
uals who may fill those jobs, when individuals are replaced 
during the year. A large turnover in various positions will 
cause further complication. 

You will find, especially when employing multi- 
jurisdictional analysis (see Appendix F) , that employee 
residence is central to the task of distinguishing governmen- 
tal impacts. In the circumstances in question, you will have 
to use the payroll records of those who had worked at a par- 
ticular position during the year in question to determine that 
X% of those employed in that position resided in one jurisdic- 
tion or another. This information can then be used to apportion 
high turnover payroll slots among the local units of govern- 
ment. Part-time employees will have to be aggregated into 
full-time equivalents and then apportioned. 

Part-time employees are of two types, those who 
work for the entire year or season but only part-time and 
those who work full-time but only for part of the full 
institutional year or season, for example, actors who may 
be part of a repertory company but appear in only one play. 
In the latter case, researchers should make sure that individ- 
uals are employees and not guest artists on contract. Guest 
artists are treated separately by equation B-1.3. 

Researchers will have to use judgment in aggregating 
part-time employees into full-time equivalents. Individuals 
who work part-time for the entire year can be aggregated 
together by the proportion of full-time hours they work dur- 
ing the year. For example, 5 individuals may work 15 hours a 
week and the institution may consider 4 hours a week to be 
full time. Therefore, the number of full-time equivalents 
is 5(15/40). (This example presupposes a 52-week base full- 
time year. ) 

Individuals who work full-time but for only part of the 
full institutional year can be similarly aggregated. For 
example, 5 individuals may work for 4 weeks for an insti- 
tution that considers 48 weeks to be full-time. Therefore, the 
number of full-time equivalents is 5(4/48). 



-86- 



We do not believe that volunteers and Comprehensive 
Education and Training Act (CETA) personnel should be 
included as employees. The model focuses on individuals 
receiving compensation from the institution and on those 
who are in positions that would not have existed were it 
not for the examined institution. Volunteers do not meet 
the former condition and CETA workers do not meet the latter 
CETA positions are distributed among communities for 
allocation as the community sees fit. Presumably, all 
positions would have been utilized by the community even in 
the absence of the examined institutions. This should not 
be taken as suggesting that volunteers and CETA workers 
do not have an economic impact. They do, especially in 
cases where programs and services would not have been 
available had there been no volunteers or CETA workers. 



-87- 



APPENDIX F 

Adaptations of the Model for Multi-Institutions 

and Multi-Jursidictions 



In some instances, it may be of interest to a regional 
arts organization or some other agency to analyze the economic 
impact of a collection of arts and cultural organizations on 
a community. In this case, the data described in the Manual 
for a single-institution analysis must, of course, be gathered 
for all organizations in the sample and the total impacts 
calculated from the specified equations by adding up the 
individual impacts of each of the component institutions. 

Since accounting procedures are even less standardized 
among tax-exempt organizations than among ordinary corporate 
organizations, definitions of expenditures, classification of 
revenues and contributions, classification of employees, and 
other data items required by the equations may vary from one 
arts institution to another. The researcher should inquire 
about the precise definitions used by each institution at 
the time the primary data are collected and treat uniformly 
such items as: sales and acquisitions for museum collections; 
cross-purchase of goods or services between institutions (such 
as an opera company's employment of the local symphony for 
its performances) ; and the capitalization of certain accounts 
such as contributions to a building program. The important 
principles are to avoid double-counting of expenditures in 
the records of more than one institution and to standardize 
as much as possible the accounting for major categories of 
capital and operating expenditures. 

The attached schema displays the changes in the 30 
equations of the model required to account for multiple 
institutions by using the subscript .i to denote a particular 

n 
institution and summation signs (E) to indicate where 

i=l 
impacts must be totalled over n institutions. 



-88- 



Similar adaptations must be made in the equations 
where one is concerned with identifying differential impacts 
of arts institutions across multiple jurisditions . This 
situation arises most frequently in metropolitan areas 
where employees, audiences, and suppliers are distributed 
throughout several political jurisdictions. Where multiple 
jurisdictions are of interest, it is necessary to identify 
the relevant items on the employee and audience surveys 
by jurisdiction . For example, real estate taxes paid 
by employees must be attributed to individual property 
tax rates in each jurisdiction. Similarly, the allocation 
of sales tax revenues, school aid, purchases from local 
suppliers, and the like must be distinguished by location. 
In some cases, however, there may be no reason to believe 
that impacts vary by jurisdiction (as, for example, the 
local respending fraction) so that a single parameter can 
be used in each institutional equation. 

In the attached schema, equations that may be 
distinguised by jurisdiction are indicated with the sub- 
script j_ and the total area impacts are indicated by sura- 

m 
ming over m jurisdictions (I). It should be noted 

i=l 
that disaggregating economic impacts among individual 
jurisdictions yields information of little value in some 
cases. For example, since localities within a metropolitan 
area are economically integrated, though politically 
distinct, attempting to trace secondary business expenditures 
to particular jurisdictions does not make as much sense 
as identifying an aggregate regional impact. This 
occurs because, while it is possible (though unwieldy) to 
identify direct expenditures by jurisdictions, one can 
have relatively little confidence that the secondary im- 
pacts of these expenditures will remain in the locality, 
and more precise information on suppliers 1 secondary 
expenditure patterns is difficult to obtain. 

However, disaggregation of public sector (government) 
impacts is meaningful and may have utility in circumstances 
where the regional distribution of support for the arts is 
a policy interest. Since each disaggregation (by jurisdiction, 
by institution) adds substantially to the tasks of data 
collection and analysis, the researcher should consider 
whether the extra detail in the resulting information will 
be worth these additional costs. 



-89- 



Equations Adjusted for Multiple Institutions 

Shown below are only those equations that must be 
modified to reflect calculations over more than one institution 
Equations not listed below remain the same as those described 
in the text for a sinqle institution. 



n 
'I~ 



Et= E Z, (TE- - W. - Transf. - T .) 
1 1 ei 1 xi 



1=1 
n 

E = E f . (W + .5 Y ric ) 

e i=i X en i nS i 

V " <?i( GD i> 
i=i 

n 

E = E a. (TA. ) 

1 = 1 

n 

E = E v- (TVD. ) 

v ■ ■ 1 i 

1=1 



n 
CB= E { (1-t) (TD.+ (TD J (Emps. ) } +(l-d){ DD H + (DD ) (Emos.- ) 
i=i + cbv(E)}-} e 1 e 



n 
NBV=E IB i 
i=i 
n 
RET e = E Emps^hjJ (pt) (TAR/R) 
i=i 
n 
MOC= E (EHH i /Pop) (B) 
i=i 



n 
PSOC= E (C./TC)SB 
i=l X 
n 
FTX= E AV. (ar) (pt) 
i=l 1 

P 

SSVS= E P. + S. + L. + T, 
. . l l l l 
1=1 

n 

J = E Emps- + x(E. + OC. ) 

i=l X 

n 

PY = E W. + p(E. + OC. ) 
,1^1 l 
1=1 



-90- 



•* U. S. GOVERNMENT PRINTING OFFICE : 1978 O - 259-594 



Equations Adjusted for Multiple Jurisdictions 

Shown below are only those eauations that must be 
modified to reflect calculations over more than one jurisdiction 
Equations not listed below remain the same as those described 
in the test for a single jurisdiction. 

m 

E T = E Z (TE . - W - Transf . - T ) 
I j=1 1 ej D Xj 

m 

E = E f (W + . 5Y . ) 
e . , en. ns]' 
D=l 3 

m 

E = E g(GD ) 

g j=l ^ 

m 

E = E a(TA.) 
a • -, J 
3=1 

-m 
E = E v(TVD.) 

v j-i ] 

m 

RP = E (E . /TBV . ) (AV . /ar . ) 
j= l 3 1 3 J 

m 
RET = E Emps . (h. ) (pt . ) (TRA./R. ) 
j=l 3 3 ~ 3 J 3 

m 

RET, = E pt (E ./RP . ) (AV.) 
b j=i J 3 3 3 

m 
ST = E st.(STR.)(E /TBV.) 
j=l 3 3 j : 

m 
YT = E (TYT./HH.) (i) (Emps •) 

m 

SA = E PS . + OR . 

j = l 3 3 

m 
MOC = E (EHH./Pop.) (B.) 

j=l 3 3 3 

m 

PSOC = E (C-/TC . ) (SB. ) 
j=l ^ 3 3 

m 

GP = E (GP_ )(MOC./B ) + (GP ) (PSOC -/SB.) 
j=l m j ^ j Sj 3 j 

m 

FXT = E AV. (ar .) (pt.) 
j=l 3 : 3 

m 

SSVS = E P^+S.+L 4- T . 

j = l D 3 j ^ 

-91-