Economic Recession Affects Performing Arts
Theaters, Centers, and Dramatic Arts Groups Face Funding Issues
Dec 1, 2008
Many patrons of the theater do not realize the money and effort that goes into each performance. Producing shows is expensive, time-consuming, and, in times of economic hardship, endangered. Some typical theater expenses include:
- Building and Operations
- Marketing
- Performance Expenses (costumes, stage props)
- Employment (including music, lighting, actors, ticket-takers, ushers, producers, directors)
- Insurance
- Copyright
- Security
Performing Arts Centers make money from ticket sales, but not as much as the average person might suspect.
Theaters Depend on Multiple Sources for Funding
According to the Hyton Performing Arts Center website, "Typically, a performing arts center will receive approximately 50%-60% of its operating budget from ticket sales and facilities rental with the remainder coming from contributed support and income off endowment." In times of economic weakness, theaters can often find alternative sources of funding but in recessions and depressions, funding dwindles.
Examples of Theaters Facing Hardship
Stories of foreclosures, plant closings, and falling stocks have dominated the news, but there have also been stories of how arts and culture have suffered economic hardship. Theater groups, Performance Arts Centers, and theatres have had to make their own budget based on the trimmed budgets' of others. A small sample of the difficulties faced by Performance Arts groups:
- Actor’s Theatre of Louisville, Kentucky lost $35,000 in state funding.
- Beckley's Theatre in Beckley, West Virginia lost $100,000 in state funding.
- Charleston Stage of Charleston, South Carolina has received only about 60% of the amount of donations they received in the past.
- The Kentucky Opera is faced with about $22,000 in budget cuts.
- Louisville Fund for the Arts in Louisville, Kentucky lost 112,500.The Nevada Arts Council has launched a website (arts4nevada.org) to build grass-roots support for threatened arts budgets.
- Overture Center for the Arts in Madison, Wisconsin decided to cut staff rather than productions as they adjust to slower ticket sales and decreased funding.
Many potential audience members are passing on shows as they tighten personal spending budgets, and corporate donors are also faced with slashing their budgets, which means less money to donate to the arts. Foundations are receiving few donations, and the government must make choices about how to spend taxpayer money. As President-elect Obama said at a November press conference, ""If we are going to make the investments we need, we also have to be willing to shed the spending that we don’t need." Whether funding the arts is considered "investment" or "spending" remains to be seen.
Sources
- Hyton Performing Arts Center Website. "Facts and Figures" (2008)
- http://www.communityperformingartscenter.com/background.html
- Knowlton, Brian. "Obama Vows to Cut Budget Waste" (11/25/2008) New York Times.
- http://www.nytimes.com/2008/11/26/us/politics/25cnd-transition.html
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