FINDINGS

Economic Impact

• Total Annual Impact: $120 million
• Annual State and Local Taxes Generated: $4.7 million
• Student Spending (outside tuition and fees): $23 million, creating 175 jobs
• Total Employment Impact: 900 jobs

Cultural Impact

• 72% of the current students participate in Indiana cultural activity outside the JSoM
• 77% of faculty and staff participate in Indiana cultural activity outside the JSoM
• Number of JSoM performances annually: 1,100
• Number of JSoM audience members served annually: 130,000
• JSoM students, faculty, and alumni perform in all major Indiana ensembles.

Educational Impact

• Number of alumni working as music educators statewide: 400
• Number of students majoring in music at Indiana University: 1,600
• Number of non-music majors served annually at IU: 6,600
• Pre-college program serves a large area of South-Central Indiana

Advancing Indiana

• The JSoM’s activities promote an environment that stimulates creativity and new ideas.
• The Jacobs School helps to attract highly skilled and talented individuals to the region in technology and other growing professions.
• The Jacobs School builds an Indiana identity that is cosmopolitan, sophisticated, and culturally current.
• The Jacobs School is a prolific and global exporter of Indiana’s cultural activity

THE REPORT

As one of the largest cultural producing organizations in the state of Indiana, the Indiana University Jacobs School of Music offers one of the highest concentrations of performance in the world to a wide variety of audiences, educates a substantial portion of Indiana’s music professionals, feeds performing musicians into key ensembles state-wide, and generates sizeable economic activity. 

With over 1,100 public performances each year involving a student body of some 1,600 who originate from all 50 states within the USA and approximately 55 countries, the Jacobs School attracts what can be considered the single greatest gathering of music faculty anywhere (see Faculty Roster in the appendix). A significant number of visitors attend performances throughout the year that include IU Opera and Ballet Theater productions, the annual IU Summer Music Festival, and hundreds of other public programs.

To understand this activity more thoroughly, in 2007, the Jacobs School commissioned an in-depth study of its impact on the state of Indiana. Principal partners in the project included the Indiana Business Research Center of the Indiana University Kelley School of Business; Michael Rushton, Associate Professor and Director, Arts Administration Program at the Indiana University School of Public and Environmental Affairs; and Sally Gaskill, an independent consultant who served as project director.

1. ECONOMIC IMPACT OF THE JACOBS SCHOOL OF MUSIC

The Indiana Business Research Center (IBRC) of the Kelley School of Business at IU conducted an analysis of the impact of the Jacobs School on the state’s economy. The economic impact study measured the impact of employment and spending of the Jacobs School, and the benefits of spending that the institution attracts (the “tourism effect”).
According to Timothy F. Slaper, Director of Economic Analysis at the IBRC, the Jacobs School’s economic contribution to the State of Indiana cannot be underestimated. Slaper says, “The School is a cash magnet for the state of Indiana. An astounding number of students originate from out of state. About 97% of tuition and fees come from outside Indiana.”

Principal findings of the study include:

• The total economic impact of the Jacobs School on the State of Indiana amounts to $120 million annually (see discussion below)
• The economic impact of the Jacobs School generates approximately $4.7 million in state and local taxes.
• Student spending outside of tuition and fees is estimated to be $23 million and that spending accounts for approximately 175 jobs.
• This student spending and spending on IU events by out of town visitors, in turn, contributes an additional $10 million in additional economic activity (or nearly 100 additional jobs).
• Jacobs School faculty and staff spending and the direct expenditures of the School results in an additional $39 million in economic activity (or approximately 370 additional jobs).

A note about methodology: The IBRC used the IMPLAN economic analysis tool, developed by University of Minnesota researchers over 20 years ago, and in use by over 1500 clients today. It is a standard input-output model that calculated the sum total of the economic chain reactions caused by the expenditures of the Jacobs School, its faculty and staff, as well as the collateral expenditures of students and individuals attending Jacobs School events. Consumers of the model’s results should be aware that the figures are estimates, not a precise accounting.

SUMMARY OF ECONOMIC IMPACT

The Jacobs School of Music has the following annual impact on the economy of Indiana:

                Direct Impact: $70 million (1)
                Indirect Impact: $20 million (2)
                Induced Impact: $30 million (3)
                Total Economic Impact: $120 million (4)

Definition of Terms: Direct Effects: 

(1) The change in dollars or employment associated with adding or removing the entity under study, in this case, the Jacobs School of Music. Explanation: Direct effects measure the impact of what would happen if the JSoM closed its doors: the economy would no longer benefit from the school’s direct operating budget (faculty and staff salaries, the JSOM non-compensation operating expenses, and student and visitor spending outside tuition and fees).

(2) Indirect Effects:  The change in dollars or employment caused by the iteration of industries purchasing from other industries resulting from changes in consumer purchases or expanding or contracting/removing the entity under study. Example: The JSoM buys 50 metronomes from a vendor, a direct effect as defined above. The subsequent indirect effects are as follows: The vendor buys them from a wholesaler. The wholesaler buys them from a manufacturer. The manufacturer buys materials and other inputs from suppliers.  If the manufacturer is located out of state, then the last indirect transaction is not counted because the wages and profits are not re-circulated in the state.  

(3) Induced Effects: The change in dollars or employment on all local industries caused by the changes in expenditures associated with changes in household income generated by direct and indirect effects.  The induced effects tracks the value added – mostly wages and profits – of each transaction, which is, in turn, spent by households.  Example: The owner and workers of the metronome vendor, wholesaler and manufacturer spend their income (that is derived from the JSoM purchases of their product) on food, housing, entertainment, etc.

(4) Total Effects: The sum of the direct, indirect and induced effects.

STATE/LOCAL TAX REVENUE IMPACT

       From the economic impact analysis, the IBRC measured the State and Local Government tax impact of the Jacobs School on the state of Indiana. The total tax impact is calculated to be $4.7 million annually.

2. EMPLOYMENT IMPACT OF THE JACOBS SCHOOL OF MUSIC

       The direct Jacobs School expenditures and the re-circulation of the wages and profits from the transactions within the state create a significant number of full-time jobs:

                Direct: 430 jobs (FTE)
                Indirect: 180 jobs
                Induced: 290 jobs
                Total Employment Impact: 900 jobs

Note: The types of jobs, and their associated wages and salaries, are not created equally.  While the model estimates some higher-paying physician jobs are created, a majority of positions are of the lower paying service sector.  The figure of 430 direct jobs does not include the part-time teachers, hourly employees, student Graduate Assistants and Associate Instructors within the Jacobs School of Music. 

3. CULTURAL IMPACT OF STUDENTS, FACULTY AND ALUMNI ON THE STATE OF INDIANA

       Current students, faculty and staff were surveyed on various aspects of their potential impact on the State of Indiana, outside their curricular activity at the Jacobs School itself.

STUDENT IMPACT

       Besides their active roles performing and participating in other musical activity at the Jacobs School, most students (72.8%) also took part in other activities across Indiana in the 12-month period prior to the survey (April 2007). Teaching was the most popular activity, along with instrumental and vocal performances.

       Sixty-three percent (63%) of undergraduates received some outside income, compared to 59% of graduate students. The average income generated from students’ outside musical activities in Indiana was $1,200. Graduate students earned far more income on average ($1,788) than undergraduates ($413).

       In terms of location, a wide variety of cities and towns in Indiana were reported by the students as places where they participate in musical activities (see table, below):

       Students worked outside the Jacobs School at some 130 organizations throughout the state. Organizations ranged from churches to local music groups and schools. 

FACULTY/STAFF IMPACT

       Similar to the student survey, 77% of the faculty/staff who completed the survey reported that they participated in musical activities in the state of Indiana outside the Jacobs School. The most common areas were studio teaching, instrumental and vocal performances.

       The average income that faculty/staff earned in Indiana outside of their salaries at the Jacobs School was $4,475 over the 12-month period. The activities that had the greatest positive impact on earnings were working as a recording engineer, band performances, and dance. The locations of services performed across the state were similar to the student findings:

ALUMNI IMPACT

       The alumni survey was sent via email to 3,750 alumni. Over one-third of those who received the survey responded – an excellent response by any measure.

       Two-thirds of the alumni had been enrolled in an undergraduate program, and over half in one or more of the graduate programs.

       Alumni who participated in the survey came from a wide variety of cohorts, representing nearly equally the 1970s through the mid 2000s. In addition, alumni from as far back as the 1940s completed the survey.

       While Indiana was the most popular place of residence (19%), the zip codes provided by respondents revealed that they reside in all 50 states of the US.

       Most alumni (72%) continue to participate in some form of musical activity, ranging from teaching to performance to recording personal performances to scholarship.

       Since the majority of alumni live outside the state of Indiana (79%), most of the activity and the income derived come from outside the state. However, the alumni who took part in musical activities in Indiana did so in multiple locations, with Indianapolis being the most predominant. Alumni identified a total of 276 unique Indiana organizations which they worked with.

       Most of the alumni who received income from their activities in Indiana also reside in the state.  Some respondents earned substantial wages for a mean of over $20,000 and a high of $110,000.

ADDITIONAL IMPACT OF STUDENTS, FACULTY AND ALUMNI IN INDIANA

       Another measure of the impact of the Jacobs School on musical activity in Indiana is the numbers of alumni, faculty and students who currently play with our major orchestras. Our findings are as follows:

Indianapolis Symphony Orchestra:
Total number of members in the Orchestra: 87
IU JSoM Alumni: 25 (29%)
(Faculty member Alexander Kerr was recently named Principal Guest Concertmaster of the Indianapolis Symphony)

The Fort Wayne Philharmonic:
Total number of members in the Orchestra: 62
IU JSoM Alumni: 18 (30%)
(Faculty member Jamie Laredo was recently named Artistic Adviser of the Fort Wayne Philharmonic for the 2008-09 Season)

Terre Haute Symphony Orchestra:
Total number of members in the Orchestra: 76
IU JSoM Alumni: 30 (40%)

Evansville Symphony Orchestra:
Total number of members in the Philharmonic: 68
IU JSoM Alumni: 21 (31%)

Columbus Philharmonic Orchestra:
Total number of members in the Orchestra: 85 (48%)
6 undergraduate students
18 graduate students
17 alumni
Music Director is JSoM alumnus
Executive Director is JSoM alumna

Carmel Symphony Orchestra:
Total number of members in the Orchestra: 70
IU JSoM Alumni: 12 (17%)

       An additional measure of the impact of alumni is the number of JSoM graduates who are employed as public or private school music teachers. According to the Indiana Music Educators Association, approximately 400 alumni of the School currently teach music in Indiana’s K-12 schools.

PERFORMANCE OFFERINGS

The annual performance offerings within the Jacobs School are extraordinary by any measure. All are open to the public and most are offered free of charge.

•  More than 1,100 official JSoM performances.
         o  Total audience is estimated to be 130,000.

•  The country’s leading collegiate opera house with seven productions.
         o  World and collegiate premieres are often presented. 

•  One of the top ballet programs in the country, with three staged ballets.
         o  Total audience for opera & ballet season: 32,000 (2006-2007 Season)

•  During the Fall and Spring Semester: 14 choral ensembles, and 15 instrumental ensembles that include 6 orchestras and 3 jazz bands. 

•  The most active collegiate summer music program in the U.S., with approximately 30 events, including a world-class chamber music series, an opera, and three performances by the Festival Orchestra, directed by world-renowned guest conductors. 
         o  IU Summer Music Festival audience: 17,000 (Summer 2007)

ADDITIONAL IMPACT OF STUDENTS, FACULTY AND ALUMNI IN INDIANA

•   Singing Hoosiers, IU’s traveling “cultural ambassadors,” a group that performs throughout the state, as well as across the United States.

•   IU Marching Hundred, providing entertainment for the many IU sports events in Bloomington and elsewhere.

•   Moveable Feast of the Arts: performances by a number of JSoM ensembles around the state, including the IU Philharmonic, Jazz Ensemble, Wind Ensemble, University Singers, and the Kuttner String Quartet.

•   Musical Attractions: a service within the JSoM that manages hundreds of performances by JSoM students and faculty for corporate, civic, social, and educational events state-wide.

       Other areas of musical activity across Indiana in which the Jacobs School of Music faculty, students, and alumni provide a central role include opera and ballet companies, choral ensembles and church choirs, jazz ensembles, community and school bands, early music ensembles, community orchestras, and classical radio stations.

EDUCATIONAL IMPACT

In Bloomington (within Indiana University)

•   Number of music majors in the Jacobs School of Music:
                o  716 undergraduates
                o  125 diploma students
                o  387 master’s students
                o  398 doctoral students
                o  Total = 1,626 (Fall 2006)

•   Number of Indiana University non-JSoM students enrolled annually in music courses:
                o  3,200 per semester
                o  200 in the summer
                o  Total (annual) = 6,600
              Courses are wide-ranging and include areas of jazz, rock & roll, general
              music appreciation, American musical theater, opera studies, connections
              between art, music, and poetry. Non-music majors are also given the option
              to study performance.

•   Number of students served annually through the JSoM pre-college program:
                o  575 per semester
                o  Total = 1,150
              The pre-college program offers performance instruction to students of Ballet,
              Choir, Guitar, Harp, Musical Beginnings, Piano, Recorder, Strings
              (including the IU Violin Virtuosi), and Young Winds.

•   Number of students served annually through the summer pre-college academies:
                o  Total = 380
              The pre-college academies are offered in ballet, piano, strings, guitar,
              percussion, winds, band, and orchestra.
•   Number of students served annually through the summer professional training workshops:                  o  Total = 251
              The summer professional training workshops are offered in ballet, clarinet,
              voice, natural horn, a Kodály institute, music theory, percussion, and strings.

•   A large number of lectures and pre-concert talks are offered to the public throughout the year.

Across the State

       The total number of living JSoM alumni—14,000—is considered to be the largest of any music school in the country. Of that number, the largest contingent resides in Indiana (2,410).  From K-12 school music programs to collegiate music departments, from the Indianapolis Baroque Orchestra to the Indianapolis Symphony, from the Bach Chorale in Lafayette to the Columbus Symphony Orchestra, Jacobs School of Music alumni are building, maintaining, and extending the cultural assets of Indiana, providing for the musical health of countless communities, and nourishing the economic and entrepreneurial fabric of the state.

BUILDING A 21ST-CENTURY INDIANA

       Michael Rushton’s report, provides a compelling critique from the perspective of a cultural economist of the Jacobs School’s profound impact on the state of Indiana. 

       In Rushton’s overview of the Jacobs School’s participation in the advancement of Indiana, he points to a growing body of research that links vibrant cultural activity with the development of a “creative class” essential to the strategic technological and economic goals of the state. Simply put, cities and towns that attract and support artists also tend to attract highly skilled and talented individuals in a wide variety of technological fields. Young, creative workers are attracted to and thrive in a “creative life packed full of intense, high-quality, multidimensional experiences.”

       Rushton continues, “A region with a culture that values music and the arts, and in particular which is open to learning about and listening to new or unfamiliar musical styles or works, will also tend to have a more widespread culture of openness to new ideas. And that in turn has economic effects, as entrepreneurs and businesses become more likely to produce innovative products and designs.”

       Retention of the highly competitive “creative class” is also essential, especially as talented individuals mature and expect a nurturing environment for their offspring, including good schools, a stimulating cultural environment, and a variety of media that reflect their values—in all, an environment where music plays a key role in the lives of communities.

       Rushton mentions that, “in today’s economy, and for the foreseeable future, economic growth, meaning the year-to-year increase in incomes and living standards for Indiana households, will arise not so much from investments in physical capital, as it will come from investments in knowledge and new ideas. Successful companies and organizations are those that can innovate, that can discover better designs for products, or ways of production that conserve on the use of resources, or new ways of delivering services to consumers and other businesses, at home and abroad.” 

       The Jacobs School and its musical talent—both current faculty/students and alumni—present music that is new, challenging, exciting and, in so doing, create an environment fertile for new ideas. And in the long run, that is how our state’s economy grows and its households prosper.”

ENHANCING INDIANA’S REPUTATION AND IDENTITY AROUND THE NATION AND WORLD

       The IU Jacobs School of Music’s impact reaches well beyond the borders of Indiana. As a magnet for international students, scholars, and professional musicians of the highest order, the Jacobs School assists in building an Indiana identity that is cosmopolitan, sophisticated, and culturally current.
       As a training center for performing musicians, dancers, composers, theorists, music educators, and other related professional areas, the Jacobs School is one of the world’s most prolific exporters of cultural activity.  Jacobs alumni can be found in just about every major orchestra, choral ensemble, and opera house in the U.S. as well as countless performing ensembles around the world. They can be found in numerous conservatories and colleges as teachers, scholars, music directors, and administrative directors.  As each of these individuals develops their career, the spirit and knowledge of the Jacobs School of Music and the state of Indiana is extended.