The $5 billion budget shortfall for the 2011-13 state operating budget forced lawmakers to make some very difficult choices. As they looked at every program, they asked themselves two questions: Is this a budget priority? Is this a core function of state government? Unfortunately, when the program that provides incentives for the film industry failed to measure up, it was cut from the budget.
While we understand the disappointment and frustration within the tourism promotion industry, we agree with lawmakers that at a time when tuition at the University of Washington is going up 20 percent a year, when hundreds of state employees will lose their jobs, when the elderly and infirm will lose vital state services and classroom teachers will be expected to do more with less, it was impossible to justify incentives for the film industry.
We agree with Sen. Jim Kastama, D-Puyallup, who said, “I would say the film industry is way down on the value chain. If you had to make the tough decisions, this would not be a top priority.”
Yes, we understand the economic impact.
Numbers provided by Washington Filmworks showed that about $5.4 million worth of incentives committed in 2010 helped bring 23 projects – mostly commercials – that included about $18 million worth of spending in the state.
Up until the start of July, Washington was offering a 30 percent rebate off the amount of money spent in the state – but lawmakers declined to extend the program.
And, yes, we understand the competitive nature of the business, with states dangling one incentive after another in hopes of attracting film crews and the dollars they bring with them. It’s a clean industry and one which bolsters state tax coffers and tourism.
No doubt Washington will be at a competitive disadvantage because neighboring Vancouver, B.C., and Oregon have continued to fund their film industry benefit programs.
So we understand why boosters are angry. “We become a quintessential fly-over state,” said Amy Lillard, executive director at incentives-managing group Washington Filmworks. “We are between two very aggressive jurisdictions. If you’re a producer and a business person, it doesn’t make sense to come to Washington.”
But the truth is, the continued economic doldrums have hit other states, too. Idaho, for example, has kept its incentives program on the books but hasn’t funded it. A lot of good that will do.
New Jersey suspended its program for a year. Georgia recommended ditching film incentives because the benefits are fleeting. And Kansas suspended its tax credit for two years – but it’s now available again.
So other states are struggling and those in the film industry must understand that reality.
Besides, even with the film incentives, Washington still wasn’t getting some of the work that should have logically been shot in the state. The hugely popular vampire-and-werewolf story behind the popular movie “Twilight” was based in Forks on the Washington coast, but much of the film was shot in Oregon. The television series “The Killing,” meanwhile, is set in Seattle but filmed in Vancouver.
The good news is Lillard said group still has about $3.5 million raised in the first half of this year to lure additional production and has recently approved four new projects. So it’s not as if the well is dry.
Lillard said the industry will be back next year to push the Legislature to renew Washington’s incentives. We’ll have to see how the state operating budget looks at that time and whether additional funding is a priority.
For the time being, Washington may be at a competitive disadvantage when it comes to attracting the film industry. We would hope that local film officials would use their existing relationships to encourage their friends to send business Washington’s way.
But the harsh political reality is lawmakers cut the film incentive program because it was not a priority in a year when core state functions were being cut to the bone or eliminated. Lawmakers made the right decision.
