"Film Flight,"
a research report released July 22 by the Milken Institute's California Center,
finds that California has lost 10,600 entertainment industry jobs, more than
25,000 related jobs, $2.4 billion in wages and $4.2 billion in total economic
output since 1997 as film and television production has moved to other states
and countries.
Among the report's findings:
·
The number of movies either wholly or partially
filmed in California fell 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.
The losses are especially pronounced in post-production.
·
Job 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.
A July 22 story on the Los
Angeles Times' Company Town blog notes: "The survey runs through 2008,
the last year for which federal and state labor data were available, and thus
understates the extent of the job losses because it doesn't cover the recession
that prompted widespread layoffs in the industry."
States like New York, New Mexico, Georgia, Louisiana and
Michigan, as well as nations like Canada, Australia and Germany, have been
aggressively courting the film industry with extensive tax and wage incentives,
the report notes.
Milken's report notes that California even lost out on
"Battle: Los Angeles," a film that is being shot in Louisiana, with
Shreveport standing in for Santa Monica.
In 2009, California implemented a tax credit for projects
filmed in state with budgets of $75 million or less. (Cal-Tax: The non-profit organization FilmL.A.
recently reported that since the Legislature approved the film tax credits in
2009, feature film production is up 11.5 percent in Los Angeles County,
television shooting increased 1.4 percent, and commercial shooting is up 34.5
percent.)
The Milken report calls the incentives "a positive sign
that the state is getting back in the game," but says California's
incentive program has more stringent qualifications than other states' and
specifically excludes big-budget productions. The report recommends that
California adopt a two-tier film incentive program – with 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 productions.
The report also recommends making tax incentive programs
permanent, signaling long-term commitment.
Governor Arnold Schwarzenegger's office released a statement
saying, "This report reiterates why Governor Schwarzenegger fought so hard
for the film and television incentives in last year's budget."
Cal-TaxReports, August 2, 2010
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