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Economic analysis of Minnesota's Arts and Cultural Heritage Fund monies

Key findings for communities

Building preservation | Photo: MN Historical Society
Image courtesy of the MN Historical Society
  • Spend on projects from the Fund was $22 million. The Fund also generated another $20.3 million in output, or sales effects, for a total of $41.6 million in the Minnesota economy.
  • There were 244 full and part-time jobs resulting from Fund expenditures.
  • Respending by people in the jobs with suppliers for projects, along with household consumption that used income earned to complete the projects supported another 160 jobs.
  • Value added, including employee compensation, proprietor income, property income (rents and leases) and indirect business taxes comprised approximately 57 percent of the expenditures or $12.2 million. After its effects were multiplied in the economy, another $12.1 million was received by businesses owners, employees and government for a total of $24.3 million.
  • Spending from the Fund affected 408 of the 418 jobs, or 97.6 percent of sectors in the Minnesota economy.

About this study

In 2008, Minnesotan voters made a significant commitment to the past and to the future — they passed a constitutional amendment creating a 3/8-cent sales tax to support outdoor heritage, clean waters, sustainable drinking water, parks and trails, arts, history and cultural heritage projects and activities. Of the total proceeds from the sales tax, 19.75 percent were dedicated to the Arts and Cultural Heritage Fund (ACHF). In addition to preserving and providing access to Minnesota’s heritage, the expenditures from the Fund were expected to reinforce the Minnesota economy.

The University of Minnesota was asked to answer the following question: “What are the economic effects of the Fund supported grant, contracts and programs awarded and managed by the Minnesota Historical Society (MNHS)?” The MNHS contracted with the Extension Center's Community Vitality program to analyze the expenditures and how these expenditures affected the Minnesota economy.

More about this report

Read full report (PDF)

Author(s)

Brigid Tuck, Senior Economic Impact Analyst, Extension; David Nelson, Extension; Bruce Sorte, Extension 

Reviewed in 2011

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