Posted on 11/25/2014 12:49:26 PM PST by MichCapCon
A panel last March at the Milken Institute in California featured several film incentive boosters who admitted Michigans subsidy program was a bad call.
The panel was centered on what California should do with its incentive program. There were four pro-subsidy representatives: Fred Baron of 20th Century Fox; Rajiv Dalal with the Los Angeles mayors office; Kathy Garmezy of the Directors Guild of America; and Kevin Klowden of the Milken Institute. Joe Henchman of the Tax Foundation was the lone opposition.
Henchman pointed out that film incentive programs are a race to the bottom and dont create permanent jobs because other states will match or raise the subsidies. He noted that Michigans original 40 percent subsidy was unsustainable and that production companies sold loyalty to the state but when it was cut back, There was a cartoon-sized hole in the wall where they ran out of the state.
During the discussion, Michigans subsidy program came up several times.
Klowden said, [U]nder the circumstances, [the subsidies] might not have been the right call for Michigan. He noted that Michigan was offering extremely aggressive incentives and implied the state was engag[ing] in that race to the bottom.
Garmezy, who is the head of a union that lobbies for subsidies in many states, said nothing has ever been proposed in California that is in any way is an effort to race to where Michigan is. Weve never raced to the bottom in this state to try to meet Michigan
Dalal said Michigan was a state that "did not have proper infrastructure."
Michigan passed its program in 2008 and has appropriated almost $500 million. The state has fewer jobs today than it did prior to the subsidies.
The Michigan Senate recently passed a bill that would continue the subsidies indefinitely. The bill is now being considered by the Michigan House.
I wonder how much Michael Moore has received from that program.
Per this story, at least $841,145.27 for one movie:
http://www.nytimes.com/2012/12/04/us/when-hollywood-comes-to-town.html?pagewanted=all&_r=0
It is easy for the political criminal class to give away OPM (other persons’ money).
The last movie I saw that had Detroit, MI as part of its background was Mark Wahlberg in âFour Brothersâ (released 2005). Michigan just isn’t featured in many movies.
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