Heart of Art: Local Arts Agencies—Powering Economic Development Through the Arts
Local Arts Agencies (LAAs) are arts institutions and economic powerhouses that drive growth, innovation, and vitality in communities nationwide. From creating jobs to boosting property values, the arts play a vital role in shaping local economies. Research from the U.S. Bureau of Economic Analysis shows the arts sector generates 4.4% of the U.S. gross domestic product (GDP), supporting 4.9 million jobs.
One of the most tangible ways the arts contribute to economic development is through increased property values. Studies show that having a cultural organization in a community can raise nearby residential property values by up to 20%. This benefits homeowners and generates higher tax revenues. For example, the downtown Phoenix creativity hub saw a 105% increase in tax receipts from 2007 to 2014, while the rest of the city experienced a 1.04% decline. By investing in the arts, communities transform underutilized spaces into vibrant creative hubs that attract tourists, spur economic growth, and benefit local businesses and residents alike.
Businesses recognize the value of the arts. A recent survey found that 53% of businesses value partnerships in the arts because they foster creative thinking and problem-solving. The arts inspire innovation, helping businesses stay competitive and agile in an ever-changing economy. These benefits are particularly important in rural areas, where LAAs help bridge gaps and create opportunities for growth. LAAs are essential for securing art grants that put artists to work for the benefit of the community. One local example is the Creative Youth Development grant, which provides music and movement education at First 5 Amador. This grant is impossible without the Local Arts Agency—the Amador County Arts Council (Amador Arts), which serves as the fiscal agent.
The economic impact of the arts is not new. Beyond the Aesthetic: The Historical Pursuit of Local Arts Economic Development traces the role of the arts in economic development through history. This historical perspective underscores the enduring importance of the arts as a tool for economic progress. Strengthening Rural Economies Through the Arts provides actionable strategies, case studies, and policy recommendations to empower communities like Amador County to leverage the arts.
As one of California’s longest-running arts councils, Amador Arts has forged arts-based economic development since 1982 and currently serves as a leader on the statewide coalition of LAAs. Using the arts to enrich lives and stimulate the economy, LAAs across the state secure hundreds of thousands of outside dollars in arts grants to put local artists to work.
The arts are more than just a creative outlet—they are an economic necessity. By supporting your Local Arts Agency, you are investing in a brighter future for your community. To learn more about how Amador Arts promotes arts-based economic development, visit amadorarts.org, call/text (209) 256-8166, or email info@amadorarts.org. Together, we can ensure that the arts continue to grow and thrive, making Amador County a more prosperous and vibrant place for all.
By Meghan Joy “Mojo” O’Keefe, Executive Director of Amador Arts