"To crush your enemies, to see them driven before you, and to hear the lamentations of their women."
Spoken like only Conan could. But the real-life Conan, California Governor Arnold Schwarzenegger - along with the California legislature - continues to turn his back on the the state of California and HIS own film industry, resembling the "girl-man politicians" he vowed he would work against when he became governor.
An article in the Hollywood Reporter (1/19/09) bemoaned recent figures that show a dip in regional film production in California, blaming the loss on "run-away" productions to other states and countries. This isn't new news. This "ran-away" production can be placed solely on the shoulders of Californian Governor Arnold Schwarzenegger and the state legislature. Period.
Film production dropped 8.1% in the fourth quarter last year, hitting the lowest level since FilmLA started tracking figures in 1993. The total slide for 2008 was 1.7%. Not a huge drop? Guess again. That's 7,043 production days for 2008, compared to 13, 980 in 1996. And that's millions of dollars gone. Disappeared. One would think California isn't in the midst of a budget crisis.
FilmLA's Paul Audley stated, "California simply is not competitive in the marketplace anymore". Hollywood not competitive? No. Not Tinseltown? "You have all the other states sweetening their incentives (but) we're sitting here just watching our entertainment industry slide away and not fighting back".
Commercial shoots are also down, a drop of 17.4% in the latest quarter and 10.9% on the year. When Arnold took office for his first term as governor of California in 2003, the first thing he should have done is put in place tax incentives to attract film production - like 48 other states have (and dozens of countries) initiated - in an effort to keep film production in California. He's an ACTOR, for Christ's sakes! He's publicly acknowledged that California is regarded as a laughingstock because of our decrease in film production. The arrogance that is Hollywood is exactly why Hollywood is in this mess and it DOESN'T HAVE TO BE THIS WAY.
Apparently, Arnold has asked California state legislators to add these tax incentives into the budget. So where are they? How hard is it to basically take another state's tax incentive, copy the motherfucker, vote on it, pass it, have Arnold sign it and be done with it???? No debating the issue. No caucuses or committees. Just do it. Idiots. I like Arnold but he needs to stop playing "the game" and get a move on. Or Hollywood will become a ghost town sooner than later. And "the industry" - and this state - has no one to blame but itself.
Film production dropped 8.1% in the fourth quarter last year, hitting the lowest level since FilmLA started tracking figures in 1993. The total slide for 2008 was 1.7%. Not a huge drop? Guess again. That's 7,043 production days for 2008, compared to 13, 980 in 1996. And that's millions of dollars gone. Disappeared. One would think California isn't in the midst of a budget crisis.
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2 comments:
I appreciate your frustration. I represent a state that would like to increase film production as an adjunct to our state's economy, but...
Do you follow the headlines? There is still a lot of unanswered questions looming on the costs associated with what is gained by incentivizing the film industry outside CA. At the current levels offered productions, against new tax revenues back to a state's general fund, just how sustainable are these incentives? Sounds sexy and extremely lucrative, but actually, the jury's still out imo. Given the incentives have been inforce for over 10+ years out in the states, I would think the news to be far more positive then it is. Major scrutiny and criticism has bubbled up over the past couple years...and it's growing more intense because of the recent economic downturn. I believe "normalizing" taxpayer investment to film prduction is on the horizon.
I have been following "the business" of the film industry for years now. The headlines are rife now with states with film incentives saying their general funds are bleeding money with the film incentives sharing the front seats of the vehicle driving out of town. And for what gains "exactly"? No one can really articulate it except through estimation and conjecture.
For whatever the tax incentive program might have used to have been (maybe against tax liabilities?), today, the incentive is unquestionally a subsidy to the production companies and a tax break to those purchasing that subsidy and returning it to the states against their tax liability at 100% value.
The states are not seeing the ROI against the costs of the incentives. Look at MI, MA, CT, RI...even Canada and now NM... Hang in there. It looks bad for CA right now, but, perhaps the incentives race is losing steam? Perhaps like the credit issue caught up with our economy, so to the film incentives game has the appearance to be on a similar track catching up with the film industry. It appears to be a "runaway" boon for production companies going for states (countries) willing to give them the most money. But within this "gypsying" of looking for the best buy, there is no allegiance - whether movie studios have been built or not. Incentives that dry up, so go the productions. In the 2 dimensional model trending for states measuring "money going out versus new tax revenues coming in" continues to wave red flags of "loss". If this is true, this treasure trove of taxpayer funding is going to dry up without better substantiating ROI data proving film production is a good investment. I think the percentages are too high given it is a subsidy.
The culprit here is riding the coattails of "the ripple effect" of the direct spend of media production. Reports and studies supporting the intangible economic impact benefit in estimation and conjecture. In the meantime, the states are not seeing this translated into "new tax revenues - the only way a state's general fund makes money.
If states cannot get to the absolute truth (not the estimated truth) of the value of investing in film production, the flow of taxpayer money will get shutdown. Although CA may not rebound to the glory days of being "the only game in town", I believe the exodus will cease and a normalcy realized.
...but then again, have you seen the facilities of places like Dubai? I'd rather see the film business stay in the states rather then see it exported (like many American companies) to another country...
you make some great points. and you've done your research. thanks for reading - and contributing.
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