New Mexico Economic Development Department requests 5 employees for film office, media arts collective

For nearly 15 years, the film industry has been a bright spot for New Mexico.

With the Writers Guild of America and SAG-AFTRA strikes over, film and TV productions have begun to resume, with more expected to be announced after Jan. 1.

On Monday, the New Mexico Economic Development Department appeared before the Legislative Finance Committee to present its upcoming budget request.

It includes funding for five full-time employees — two for the New Mexico Film Office and three for the New Mexico Media Arts Collective — at a recurring annual cost of $300,000.

Currently, the New Mexico Film Office has seven employees. In recent years, the film industry has seen a record number of productions set up shop in New Mexico.

The film industry spent more than $794 million in the state from July 1, 2022, through June 30, 2023.

The $794 million in direct spending is down from fiscal 2022, which had a record high of $855.4 million.

Over the past three fiscal years, film industry spending in the state has been more than $2.2 billion.

Jon Clark, New Mexico Economic Development Department acting secretary, said the budget request comes down to staffing.

“We have not had any additional staffing provided to the film division in years, and yet we’ve seen explosive growth in the industry,” he said.

Gov. Michelle Lujan Grisham proposed the idea for the media academy in early 2022 and was able to secure $40 million in funding for the program during last year’s legislative session.

Announced in March, the one-time appropriation includes $20 million in capital outlay funding and $20 million in general funding to establish and operate the media arts collective.

“Right now, we have zero (full-time employees) FTE dedicated to the media academy,” Clark said. “We do need people and operational funds to get it up and going.”

The department is also asking for a recurring $300,000 in operational funding for the media arts collective.

The New Mexico Media Arts Collective will be housed in the Albuquerque Rail Yards, as well as have a satellite campus in Las Cruces. It is slated to open in 2024.

State Rep. Harry Garcia, D-Grants, voiced his concern about how rural communities are benefiting from the state’s film and tax credits.

“We talk about the film industry, but yet, very few rural New Mexico citizens benefit from the film industry,” Garcia said. “I’ve lived in Grants my whole life and I think I’ve seen only one film crew in my whole life.”

In the 2023 legislative session, the Rural Uplift Tax Credit was increased from 5% to 10%, which gives locations outside of the Albuquerque-Santa Fe corridor an extra incentive. The credit can be attached to the state’s film credits, which range from 25% to 30%.

Clark said the film office also is working on getting a tribal liaison.

“(The film tax credit program) works on tribal lands,” Clark said. “We want to make sure that we’re educating the communities. We’re working with the communities to get more (productions) out on tribal lands.”

In the meeting, the department also requested funding for new positions in the department as well as within the Creative Industries Division.

The department also requested $30 million for the Local Economic Development Act, or LEDA, and $5 million for the Job Training Incentive Program, or JTIP. Both programs are used to recruit businesses to the state.