ABQJOURNAL OPINION/GUEST_COLUMNS: Don't Call 'Cut' Until the Footage Has Been Edited

Friday, February 18, 2011

Don't Call 'Cut' Until the Footage Has Been Edited

By Eric Witt
Executive Director, Motion Picture Association of New Mexico
          No one disputes that New Mexico has established a successful film industry bringing jobs, money and positive visibility to the state, and adding significantly to the diversity of our economy. The question is: At what cost?
        The Journal editorialized on this topic this month, accurately pointing out that we should be in this for the long run; that many people and businesses across the entire demographic and economic spectra have seen tremendous benefits; that the state has "invested" a total of $228 million over the past eight years to grow this industry (by the way, New York state is planning to spend $420 million per year for the next five years on its incentive program, to give an idea of the competition we're up against); and yet there is confusion regarding the actual return to government coffers from taxes, licenses and other fees generated from the economic effects of film and television production.
        The Motion Picture Association of New Mexico along with various business groups such as the Greater Albuquerque Chamber of Commerce, while supporting the film industry, also support measures moving through the Legislature that would codify reporting and transparency requirements, and which direct a thorough, knowledgeable, independent study of the economic effects of this industry here – not in other states whose programs differ markedly from New Mexico's, including Massachusetts – over a period of years.
        These are Senate Bill 44 and Senate Joint Memorial 15, respectively. We also encourage the same examinations for all businesses receiving favorable financial treatment from the state to more precisely assess what the state is getting in return for its total "tax budget."
        In the meantime, we urge the Legislature and the administration to adopt an economic version of the Hippocratic sentiment: First, do no harm. In other words, don't reduce or retool the basic elements of the incentive program before it is known what, exactly, they bring to the state. Not only does political saber rattling send the wrong signals to the industry about New Mexico's outstanding reputation for reliability and stability, it also emboldens our most legitimate competitors such as New York and Louisiana, which are increasing their incentives, not decreasing them.
        Again, the Journal correctly advocates a long-term view of an industry that is a remarkable fit for our state — and thus far the state has taken such a view; the bump in the road came in the form of 42 other states that, seeing our success, leapt onto the bandwagon. Many of these other programs are poorly designed and prohibitively expensive and will fail over the next few years. They're also realizing that a fundamental element of our success is the many years we've invested in building up a world class in-state crew and business base, both of which are critical in maximizing job creation and money capture (hence tax revenues) in the local economy, and which constitute a key barrier to successful entry into this business for other states.
        When the dust settles I envision a half-dozen or so states emerging as viable long-term production centers, with California and New Mexico being the top two west of the Mississippi. That makes it even more imperative that we not cripple ourselves at this crucial time.
        New Mexico has earned a stellar reputation among the industry — which is why we still attract major productions despite the fact that 20 other states offer richer incentives than ours. We're not advocating an increase here, just stability and informed action.
        First, do no harm.

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