Wednesday, December 1, 2010

Re: [MISP] STATE FILM SUBSIDIES: NOT MUCH BANG FOR TOO MANY BUCKS

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Doug Bocaz-Larson wrote:

"And we have to praise the efforts to bring a "clean" industry to our state
rather than one that strips our natural resources."

Movies are high waste generating operations that leave their waste behind
when they leave the state, along with a wake of very high carbon and
energy usage.

I propose an additional and separate 15% rebate for meeting a legislated
standard in green production practices that would both save the impact on
our fair state and keep us competitive with states offering incentives at
40%.

However, since our governor-elect doesn't believe in climate change, we
may have an uphill battle on this one.

Holly Roach
Green Production Resource
greenproductionresource.net/blog


> ***This is a MISP Listserv message. Responses are sent to the list by
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>
> I have to disagree. If so much money is going to LA, then why is
> California having a budget crisis?
>
> A lot of the studies don't consider the impact money spend affects others
> industries such as hotel and food services. And I even feel the effects
> of the film industry in little Grants. There are way more opportunities
> for my students now than five years ago. If a student here works hard and
> really wants an opportunity, I can find them one now. That wasn't the
> case five years ago.
>
> And we have to praise the efforts to bring a "clean" industry to our state
> rather than one that strips our natural resources.
>
> I have seen the need to provide more "mid-budget" support though. We need
> to do what we can to encourage the growth of New Mexico based productions
> including game design and new media to keep the growth going, but let's
> not advocate throwing the baby out with the bath water.
>
> Doug Bocaz-Larson
> NMSU-Grants
>
> On Wed, December 1, 2010 12:50 pm, Larry N Stouffer wrote:
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>> Karen, even including the sardonic: "You can be sure the new
>> administration has" insert, I appreciate your posting the article. My
>> hope is that the new administration DOES do an apolitical study on
>> this and all other state investments. It's about time the voters knew
>> the truth about what is happening with their tax dollars. I'm sure you
>> agree.
>>
>> If the movers and shakers in the NM film community are right and the
>> state - and not just the unions - is in fact benefiting financially
>> from the so-called tax incentive program, it will be a time for
>> rejoicing. Personally I think the "loan" program should be scrapped.
>> All the ()&$*# money is going to LA, anyway. And to folks who don't
>> even need it! The tax incentive rebate plan, I would hope, would
>> survive scrutiny.
>>
>> Perhaps dropping the loans and upping the rebate % to remain
>> competitive with Michigan would be best for all. Anyway, that's my
>> thinking.
>>
>> I'm certain we all are anxiously awaiting our new Governor's
>> consideration.
>>
>> Thanks again, Karen.
>> - Larry -
>> Larry N Stouffer
>>
>> â€" 13th Annual â€"
>> THE SCREENWRITING CONFERENCE IN SANTA FE, LLC
>> Simply the Best Screenwriting Conference in the World
>> May 27 thru 31, 2011 in stunning Santa Fe, NM
>>
>>
>>
>> www.scsfe.com - phone 505.424.1501
>>
>>
>>
>>
>>
>>
>>
>>
>> On Dec 1, 2010, at 11:58 AM, Karen Koch wrote:
>>
>>> ***This is a MISP Listserv message. Responses are sent to the list
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>>>
>>> Check out this Center on Budget & Policy Priorities report on Film
>>> Business Subsidies. You can be sure the new administration has.
>>> The 17 page report is attached as a pdf but below is the opening
>>> premise ...
>>> Like a Hollywood fantasy, claims that tax subsidies for film and TV
>>> productions â€" which nearly
>>> every state has adopted in recent years â€" are cost-effective tools
>>> of job and income creation are
>>> more fiction than fact. In the harsh light of reality, film
>>> subsidies offer little bang for the buck.
>>> ï‚· State film subsidies are costly to states and generous to movie
>>> producers. Today, 43
>>> states offer them, compared to only a handful in 2002. Over the
>>> course of state fiscal year 2010
>>> (FY2010), states committed about $1.5 billion to subsidizing film
>>> and TV production (see
>>> Appendix Table 1) â€" money that they otherwise could have spent on
>>> public services like
>>> education, health care, public safety, and infrastructure.
>>> The median state gives producers a subsidy worth 25 cents for every
>>> dollar of subsidized
>>> production expense. The most lucrative tax subsidies are Alaska’s
>>> and Michigan’s, 44 cents and
>>> 42 cents on the dollar, respectively. Moreover, special rules allow
>>> film companies to claim a
>>> very large credit even if they lose moneyâ€" as many do.
>>> ï‚· Subsidies reward companies for production that they might have
>>> done anyway. Some
>>> makers of movie and TV shows have close, long-standing relationships
>>> with particular states.
>>> Had those states not introduced or expanded film subsidies, most
>>> such producers would have
>>> continued to work in the state anyway. But there is no practical way
>>> for a state to limit
>>> subsidies only to productions that otherwise would not have happened.
>>> ï‚· The best jobs go to non-residents. The work force at most sites
>>> outside of Los Angeles and
>>> New York City lacks the specialized skills producers need to shoot a
>>> film. Consequently,
>>> producers import scarce, highly paid talent from other states. Jobs
>>> for in-state residents tend to
>>> be spotty, part-time, and relatively low-paying work â€" hair
>>> dressing, security, carpentry,
>>> sanitation, moving, storage, and catering â€" that is unlikely to
>>> build the foundations of strong
>>> economic development in the long term.
>>>  Subsidies don’t pay for themselves. The revenue generated by
>>> economic activity induced by
>>> film subsidies falls far short of the subsidies’ direct costs to
>>> the state. To balance its budget, the
>>> state must therefore cut spending or raise revenues elsewhere,
>>> dampening the subsidies’ positive
>>> economic impact.
>>> 820 First Street NE, Suite 510
>>> Washington, DC 20002
>>> Tel: 202-408-1080
>>> Fax: 202-408-1056
>>> center@cbpp.org
>>> www.cbpp.org
>>> 2
>>>  No state can “win” the film subsidy war. Film subsidies are
>>> sometimes described as an
>>> “investment” that will pay off by creating a long-lasting
>>> industry. This strategy is dubious at
>>> best. Even Louisiana and New Mexico â€" the two states most often
>>> cited as exemplars of
>>> successful industry-building strategies â€" are finding it hard to
>>> hold on to the production that
>>> they have lured. The film industry is inherently risky and therefore
>>> dependent on subsidies.
>>> Consequently, the competition from other states is fierce, which
>>> suggests that states might
>>> better spend their money in other ways.
>>> ï‚· Supporters of subsidies rely on flawed studies. The film industry
>>> and some state film
>>> offices have undertaken or commissioned biased studies concluding
>>> that film subsidies are
>>> highly cost-effective drivers of economic activity. The most
>>> careful, objective studies find just
>>> the opposite.
>>> Given these problems, states would be better served by eliminating,
>>> or at least shrinking, film
>>> subsidies and using the freed-up revenue to maintain vital public
>>> services and pursue more costeffective
>>> development strategies, such as investment in education, job
>>> training, and infrastructure.
>>> Effective public support of economic development may not be
>>> glamorous. However, at its best, it
>>> creates lasting benefits for residents from all walks of life.
>>> State governments cannot afford to fritter away scarce public funds
>>> on film subsidies, or, for that
>>> matter, any other wasteful tax break. On the contrary, policymakers
>>> should broaden the base of
>>> their taxes to create a fairer and more neutral tax system.
>>> Film
>>> LEAVING THE LIST /LIST INFO: To leave the list, please email us at:
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>>> <Film Subsidies.pdf>
>>
>>
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>
>
> --
> Doug Bocaz-Larson
> Program Manager: Computer Science and Creative Media
> New Mexico State University - Grants
> 1500 3rd St.
> Grants, NM 87020
> 505-287-6656 office
> 505-290-1331 cell
>
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