Monday, July 26, 2010

[MISP] Milken Study Update

***This is a MISP Listserv message. Responses are sent to the list by default.*** ***For more info about MISP and the listserv, scroll to the bottom of the page*** *


Another 'quick' follow-up.

There's an official response from Governor Richardson regarding the Milken Study.  Link to the actual study included below:

From GovMonitor:  


Governor Bill Richardson today called attention to a new report by the prestigious Milken Institute that clearly shows the positive financial impact to states and countries that offer responsible and sustainable film industry programs.

The study was done for the State of California and reveals the devastating fiscal impact caused by the migration of film and television production out of the state.
"This study illustrates the value of our film initiatives from the point of view of a state that has lost significant numbers of jobs and revenue because of intense competition from places like New Mexico," said Governor Richardson. "It clearly shows that we are a global film force to be reckoned with, and what we stand to lose if we don't continue our efforts to build and support the industry here."
The Milken report looks at the numbers of jobs and amount of revenue that California could have saved had it implemented many of the initiatives adopted by states such as New Mexico.
The report determines that for every job created in the film sector an additional 2.5 jobs are created in other sectors.
It estimates that California lost more than 36,000 jobs and more than $4 billion in revenue since 1997 because of film business that left California.
The report recommends that California (which recently began a new film production tax credit of its own) take a number of steps to encourage production in the state, many of which track what is being done in New Mexico.
"The Milken report recognizes the value of not just financial incentives but many of the other key aspects of our program, including strong training program in colleges and universities, emphasizing new, 'portable' digital technologies, and collaborating with local communities to create a truly focused, film-savvy environment," added Eric Witt, the Governor's top adviser on Film and Media Industries.
The entire Milken report can be found at http://bit.ly/cMTQ0O
Since Governor Richardson took office in 2003 more than 141 major film and television productions have been made in New Mexico, with an estimated economic impact of more than $3-billion.
There are 10,000 direct and indirect film-related jobs in the state, and more than 250 businesses and services directly related to the industry.
www.nmfilm.com

Also see: http://www.governor.state.nm.us/press.php?id=1653




On Fri, Jul 23, 2010 at 9:42 AM, Eric Renz-Whitmore <whitmore@unm.edu> wrote:

There's a new study getting some media play regarding the impact on California on its loss of jobs because it hasn't been competitive with other states and countries.


While the report focuses on California, I think there are at a least a few things for us to look at, consider and share.

Findings include:
"for every job created in California's film sector, another 2.5 jobs are created in other sectors"
Jobs lost had an average salary of $92,000 a year (while this may not translate exactly to New Mexico, it's clear that film pays above the NM average)

The recommendations from the press release are... worth looking at too: "The report makes a series of recommendations on how California can turn the tide, including:
  • Design a two-tier film incentive program — one set of benefits to engage big-budget studio films that are not covered under the current incentive program, and another set to attract smaller independent production.
  • Implement a new digital-media tax credit to attract and retain developers of digital animation, visual effects, and video games.
  • Make tax incentive programs permanent, signaling long-term commitment.
The long-term or evergreen clause approach many of us have been calling for, especially as without this commitment it's difficult to imagine how the businesses we need can invest in bricks and mortar and infrastructure. The study looks at the dampening effect of California's incentives, set to expire in 2014 -- of course it's much worse to have ours threatened on an annual basis.


I know I'm preaching to the choir here, but it's important to remember and share two things:
1.  Our existing incentives are a net gain to New Mexico's economy
2.  The loss of production work due to crippled incentives will lead to losing some of our most talented people and/or greatly increased costs due to lack of employment for those who stay


Best wishes -- and thanks to all those who continue to make New Mexico a great place to live, work and make media.

Eric


LOS ANGELES, CA–(Marketwire – July 22, 2010) –  California has lost 10,600 entertainment industry jobs, more than 25,500 related jobs, $2.4 billion in wages and $4.2 billion in total economic output since 1997 as film and TV production has moved to other states and countries, according to a new Milken Institute study, Film Flight: Lost Production and Its Economic Impact on California.

States like New York, New Mexico and Michigan, and countries like Canada and Germany have been aggressively courting the lucrative film industry with extensive tax and wage incentives. "The Blind Side," "No Country for Old Men" and "The Incredible Hulk" are among the many movies that have been filmed outside of California in recent years.

"There's no doubt that incentives have been drawing jobs and wages away from California," said Kevin Klowden, Director of the Milken Institute California Center and lead author of the report. "And while California's incentive package, passed in February 2009, appears to be working, we have a lot of catch up to do just to get back the share of production we had in 1997."

According to the report, forty-two states (including California), plus the District of Columbia, are currently vying for a piece of the $57 billion U.S. film production industry by offering tax incentives. In July 2009, California implemented a tax credit for projects filmed in state with budgets of $75 million or less. Since its inception, 75 projects have been approved to receive credits. These projects were estimated to spend more than $1 billion in the state, generating $500 million of wages for below-the-line staff. The report notes that California's tax credits are set to expire in 2014 and are more attractive to independent films and television series than to big-budget studio productions, because only projects with production costs below $75 million are eligible.

Among the findings of Film Flight:

  • The number of movies either wholly or partially filmed in California has fallen sharply, from 272 in 2000 to 160 in 2008.
  • California's share of North American employment in the industry has declined from 40 percent in 1997 to 37.4 percent in 2008.
  • Jobs losses go beyond the movie industry, because for every job created in California's film sector, another 2.5 jobs are created in other sectors.

The report makes a series of recommendations on how California can turn the tide, including:

  • Design a two-tier film incentive program — one set of benefits to engage big-budget studio films that are not covered under the current incentive program, and another set to attract smaller independent production.
  • Implement a new digital-media tax credit to attract and retain developers of digital animation, visual effects, and video games.
  • Make tax incentive programs permanent, signaling long-term commitment.

The report includes an analysis of what other countries and states are doing to attract film production and post-production business such as digital special effects, animation and 3-D video game development. Included in the analysis are Canada, Australia, the U.K., Germany, New Zealand, New York, Georgia, Louisiana, New Mexico, North Carolina and Michigan.

Film Flight: Lost Production and Its Economic Impact on California is a product of the Milken Institute's California Center, which is dedicated to measuring, evaluating and analyzing the state's economic, demographic and social conditions and trends.

About the Institute: The Milken Institute is a nonprofit, independent economic think tank whose mission is to improve the lives and economic conditions of diverse populations around the world by helping business and public policy leaders identify and implement innovative ideas for creating broad-based prosperity. It is based in Santa Monica, CA. (www.milkeninstitute.org)

Contact
Jennifer Manfre

Associate Director of Communications
(310) 570-4623
Email Contact

The LA Times blog has its write-up here: http://latimesblogs.latimes.com/entertainmentnewsbuzz/2010/07/film-and-tv-flight-cost-california-36000-jobs-study-says.html


--

--
Eric Renz-Whitmore
twitter: @ewhitmore
cell:     505-227-1086

Program Coordinator, ARTS Lab
http://artslab.unm.edu

http://artslab.blogspot.com
http://www.facebook.com/artslab
twitter: @artslab_nm
office: 505-277-2253



--

--
Eric Renz-Whitmore
twitter: @ewhitmore
cell:     505-227-1086

Program Coordinator, ARTS Lab
http://artslab.unm.edu
http://artslab.blogspot.com
http://www.facebook.com/artslab
twitter: @artslab_nm
office: 505-277-2253
LEAVING THE LIST /LIST INFO: To leave the list, please email us at: artslab@unm.edu For other list info, please visit: http://groups.google.com/group/nm-media-industries/web/media-industries-list-info Available in RSS: http://groups.google.com/group/nm-media-industries/feed/rss_v2_0_msgs.xml

No comments: