The impact of the economy on the arts is visible, but the way the arts boost the economy isn’t always clear.

Community leaders are trying to stress the codependent relationship of the performing arts and economic growth.

"People [who] support the performing arts, people [who] are involved in the performing arts, are dynamically involved in their communities in every capacity. They're the most likely people to donate, they're the most likely people to vote, they're the most likely people to even attend a sporting event," Cookie Ruiz, Ballet Austin executive director, said.

The arts rely on money from various sources to survive and thrive. Their primary source of revenue comes from selling tickets to their performances. Corporate and private donations are a huge part of an organization's budget, but the city also contributes to arts funding. This year the city of Austin invested $10 million in the arts.

The invested money is distributed through cultural contracts that arts groups apply for with the city. The money for those contracts comes from a bed tax the city levies on people who stay in hotels and motels. For every room rental there is an 8.25 percent sales tax. In addition, there's a 9 percent occupancy tax, or bed tax, which the city collects:

		About half of the bed tax goes to the Austin Convention Center.
		22 percent goes to the Venue Project Fund.
		16 percent helps out the Austin Convention and Visitors Bureau.
		12 percent goes to the cultural arts.

Arts groups were upset and concerned when the city decreased cultural contract funds by 30 percent for fiscal year 2003-2004. The city blames a decline in tourism for those cuts.

	In September arts leaders gathered to discuss their economic crisis.

"We had less travelers, we had less people staying in hotels and motels, so our resources were smaller," Janet Seibert, the civic art coordinator for the city of Austin Economic Growth and Redevelopment Services Office, said.

"The city didn't want to cut arts funding. I think that's really important to understand. The city didn't have the money to give out," Latifah Taormina, executive director of Austin Circle of Theaters, said.

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	Arts vitality Austin's performing arts community is trying to uncovers its true economic impact.

However, the arts community wasn't about to give up. Last September, leaders held several meetings to discuss ways to approach city council about their commitment to their profession.

City leaders said they realize arts organizations in other cities generate economic impact studies to show how the performing arts are culturally vital to the community as well as important to attracting new workers. Both the music and film communities have conducted and presented economic impact studies to the city. The performing arts community is currently trying to provide the city with an economic impact study.

"Across the United States, 9 out of 10 people believe the arts are important to our community and 9 out of 10 people believe the arts are important in the education of their children. We need them to also understand that arts are not a drain on the community," Ruiz said.

Last year, the Performing Arts Research Coalition out of Washington, chose Austin as one of 10 cities in the country for an audience analysis survey because Austin is one of a handful of cities that house professional opera, symphony and ballet companies. Questionnaires at local performances will examine the thoughts and habits of audiences and provide quantitative research that could lead to an economic impact plan.

"[The arts are] important to the economy through the employment of Austin artists, whether they're musicians or other kinds of artists, they're important as a tourist draw. And then, they're also important in creating that culturally vital environment that employers use as a draw for businesses," Seibert said.

So, this year, the city took historic steps to revamp the arts funding process. It created a Cultural Vitality Committee, which serves as a liaison between the arts community and city leaders. It has hired an arts consultant to work with arts groups. And it has moved the arts from the Parks and Recreation Department to Economic Growth and Redevelopment.

"City council said it is this department that is better suited to coordinate and leverage what we do, so that we can help the arts better and so that we can use the arts better for the whole city," Seibert said.

The research from the audience analysis study rolls out this fall. Arts leaders hope to show how the arts affect the city and how the arts contribute to the community as a whole.