I disagree Mr. Stoffer. The SIC is one program that can actually provide investment into sustaining a local media industry. The current way the program works is set forth by policy not legislated. The fact that the past administration failed to create policy to invest in the local media industry - making you and I very unhappy people - does not mean the program should be scrapped.
The legislated portion is very basic:
The State Investment Officer may make investments in New Mexico film projects of up to 6% of the market value of the Severance Tax Permanent Fund. These investments, capped at $15 million per project, currently take the form of a guaranteed, no-interest loan up to 100% of the production budget. Investments require a negotiated participation in the film project's post-break even revenues.
This currently is a $215 million + fund that if not spent on investing in film will be spent investing in other areas like the stock market, real estate and/or likely handled by a contracted money manager in some form of a diversified portfolio. Not one penny would be spent on Teachers, Police or any other services. Only funds generated by the "investments" can be transfered into the general fund. This is not a Economic Development program all though that may result from the investments - it is an investment fund. Any investment should have a reasonable expectation of a return to the state. Tax payer will not get a reduction in their taxes and no these funds will not be used to off set current budget problems.
A audit firm has been hired to review film investments and determine what the actual rate of return is. Given the sad state of the past rate of return of other investments the film investments should fair well.
On Dec 9, 2010, at 3:23 PM, Larry N Stouffer wrote:
***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*** *One thing would help, I believe, is to whack off the 0% loan component. All that loot's going to Hollywood folks who don't need it, anyway.LEAVING THE LIST /LIST INFO: To leave the list, please email us at: email@example.com 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.xmlOn Dec 9, 2010, at 3:10 PM, Fritz wrote: