Stand Up for Creative Jobs

Financial news reporting has been in the news itself of late as Americans ask the timely question 'who knew what and when' about the state of our economy and the subsequent extraordinary burden being placed on every American as we strive as a nation to right the ship.

Amid the Monday morning quarterbacking and public outcry for accountability, I've noticed a disturbing trend among some of the more ardent free-market champions. This trend -- bias, specifically -- has implications for everyone who makes a living not building cars or homes or other manufactured goods, but through the creative arts -- crafting something new and exciting with their minds and sharing it with the world.

As business and government leaders dig in for the tough work of retooling our economy, every corner of our nation is looking for innovative ways to nurture fresh growth opportunities. Against this backdrop, 42 states in our union have developed innovative recruitment campaigns aimed at attracting and building a thriving local film and television production industry.

Tax incentives, built responsibly, can serve a critical role in economic stimulus. To do so, they must achieve three objectives: create jobs, increase commerce and generate a positive return on taxpayers' investment. Taking the New York Production Tax Credit as an example, the program overwhelmingly passes this litmus test. According to Ernst & Young, it's created 32,000 jobs and injected $2 billion in spending into the New York economy in the past year alone. And, for every $1 in incentives, New York gets a 90% return on its investment. What investor (let alone Governor or State Legislature) would say no to that?

Yet according to The Wall Street Journal editorial board, New York should abandon its efforts to attract and retain film and television production because "New York City can survive without Alec Baldwin and 30 Rock." Of course, such a comment misses the entire point of why Mr. Baldwin and other A-list actors are so adamant in defense of these programs. While they would be fine either way, the overwhelming majority of their colleagues -- middle-class workers earning a living wage as make-up artists, camera men, set builders, writers and beyond -- would not.

The New York production tax incentive is designed so that the 400 workers on a major motion picture production or the 160 on a television series are employed up front and are paid over the course of production. That means they are spending money and having their state income tax obligation immediately withheld. Further, the enormous amount of goods and services that are purchased within the $160,000 to $225,000 per day by a film production that lasts three to twelve months also bolsters the state and local economy and produces significant revenues. And, the state doesn't allow the credit to be claimed by the production company until the motion picture has wrapped or the television series production has ended. Basically, the state has an average of 18 months between the time of production and the time to pay the credit claim, interest free.

Michigan, facing the ominous teetering of the auto industry, has found refuge in film production as well. A New York Times piece from this week highlights the jobs and revenues film productions are injecting into the state. Last year, Michigan's tax credits generated almost $54 million in new employment income and created more than a thousand full-time Michigan jobs.

Robert Redford recognized the priority of this kind of economic diversification in his recent defense of funding for the National Endowment of the Arts. "All the people connected with the arts are at risk," he said, "just like everybody else." (Cherished for its cultural contributions, the Sundance Film Festival also brings $30 million annually to Utah's economy).

Film and television production contributes $60 billion annually to the U.S. economy and sustains 1.5 million American jobs. It's hard not to note the irony that while state and local policymakers have found an innovative and effective way to lure new creative jobs and growth opportunities, the nation waits to see if the federal stimulus package will have similar positive results. Whether we build cars or movie sets shouldn't matter in the least today. What matters most are constructive policies that get America back to work and to growth.

On St. Patrick's Day, President Obama encouraged the nation to temporarily lay down its collective burdens. He noted that "comfort can be found in faith and families, laughter and love, poetry and song." Most Americans are well aware of the enduring comfort that the arts provide. We see it on display every weekend at the local multiplex. We should continue to celebrate these contributions. But we also can't afford to undervalue the contributions the arts -- and the millions of Americans whose creativity and innovation in film and television make it such a pace-setting industry -- can make to our nation's economic renewal.

Comments

[isis]

In times like these people like to feel connected to each other and the Arts are perfect for that. Plus they bring inspiration and creative ideas to people in all walks of life--science included.

[runfastandwin]

Because the world needs more movies like "Rush Hour 3."

[radicalcentrist44]

Fast and the Furious 4!

[706makeupgirl]

IATSE has just ratified its contract. Not the best contract because of a new provision upping the hours needed to qualify for our benefits from 300 hours to 400 hours. 'New Media' was also a sticking point. We cannot afford to strike in this economy. The good news is that we can always revisit the contract in 3 years. We persevere.

That is great news. We here in Hollywoodland would like a chance to compete for the jobs that we have worked so hard to learn and so enjoy doing. All we're asking for is a living wage.

Fraternally yours,
706 MakeupGirl

[706makeupgirl]

There is some good news, The Business reps from the Craft Locals have been working with the California State to allow incentives in our area. Yea! This will help local production that is originated here in Los Angeles to afford to continue to shoot in Los Angeles. This is from one of the union local's letters to us:

[ Last week, California finally received what many entertainment unions have sought for years: a film and television production tax credit that will encourage producers to shoot in California.

As we have all seen over the past few years, production tax incentives have helped grow the industry in states like Illinois, Louisiana, New Mexico, New York, etc. They have also helped keep production within the United States and have resulted in jobs for Local 600 members, including those transported from Los Angeles.

It seemed like a no-brainer that California should have a tax credit of its own. But, year after year, every time tax incentive legislation was introduced in California, it was voted down at the last minute or removed from budgetary consideration.

The California legislative leadership has passed a $100 million tax credit incentive plan for film and TV production as part of the new state budget.]

[706makeupgirl]

Thank you Dan Glickman for the article on the Crafts. (that's where they get the name 'craft service').

The Crafts/Crewmembers in the Los Angeles area have been taking a beating for years. Between runaway production to other countries and shows going to other states where there are tax incentives has been a 'rough call'. Some of the Crafts have to contend with the advent of 'reality TV'. (makeup and hair is not always used on reality shows) Now the networks have recently ditched 1 hour programing for talk shows, ouch! For example Jay Leno's new primetime talk show eliminates nearly 1,000 jobs locally.

We are a tough bunch, we evolve and mutate.