"Michigan Gov. to Film Business: 'Drop Dead.'

**Fnemecek** · February-21-11, 03:12 PM

Originally Posted by English

^ Because the film industry votes the wrong way. Elections have consequences.

Actually, the film incentive was introduced by Republicans.

**English** · February-21-11, 04:16 PM

Originally Posted by Fnemecek

Actually, the film incentive was introduced by Republicans.

Apparently, those Republicans weren't nerdy enough.

The last election showed the factions in the Michigan GOP well enough, and Snyder always said he was going to get rid of the film incentive. I am thoroughly annoyed that everyone's so surprised by this. He is only doing what he said he would do, and the MI film folks voted for Bernero. There was plenty of rhetoric about it on my FB News Feed, but they didn't convince enough voters.

Elections have consequences.

**Pam** · February-21-11, 06:30 PM

and Snyder always said he was going to get rid of the film incentive.

The way I remember it, first he said he would and then when there was an outcry he waffled and said something else.

http://www.freep.com/article/2011021...ng-did-another

"It's really disheartening," Daniels said of Snyder's budget plan. "It's not what he told me privately, so to be honest, I guess he's a politician after all. Say one thing, do another."

**English** · February-21-11, 07:11 PM

Wow. I didn't get the memo that he changed his mind. On his campaign website, I remember he had something up about why he didn't think the film incentive made sense. One of my Republican friends who loved him at first posted on FB this fall she wouldn't vote for him because it would affect her livelihood in the Detroit film industry. She had a speaking role on Detroit 1-8-7 among other projects. I don't remember her recanting, either.

So that part of his budget didn't shock me as much as the taxing of public pensions. It was the one part of his budget I expected.

**Django** · February-22-11, 12:38 AM

On line petition to save the film industry. Hope this hasn't been posted yet, I haven't read this entire thread.

http://rickswrong.com/Ricks_Wrong!__..._MICHIGAN.html

**Django** · February-22-11, 12:40 AM

Films pulling out already.
http://www.freep.com/article/2011022...centive-change

bartock · February-22-11, 09:17 AM

No, he didn't change his mind...not publicly. Jeff Daniels alleged that he said something privately to him, and Mitch Albom thought that when Snyder said he would keep $100 million budgeted for the incentives it would be a year-to-year thing instead of $25 million going towards new projects [[and $75 for existing).

I'm with Teacher, I don't understand the surprise. I happened to vote for Snyder [[not that it hasn't been obvious), but even if I hadn't, he was skeptical of the film credits all along and warned about there being a complete overhaul to things. Not sure what the shock is about...this is what some of us voted for, and some others warned about.

**Det_ard** · February-22-11, 11:58 AM

The 42% tax credit is crazy. If it's such a benefit to Michgan, why not extend it to every industry? Offer it to the auto industry. If GM or Ford spends $50 billion a year in Michigan, have the state [[we taxpayers) cut them a check for $21 billion dollars. Such a deal!

The film credit is mainly an expensive ego-stroke for Michiganders with inferiority complexes. And an unaffordable subsidy for the few folks who gain monetarily.

**Funaho** · February-22-11, 12:17 PM

Originally Posted by Det_ard

The 42% tax credit is crazy. If it's such a benefit to Michgan, why not extend it to every industry? Offer it to the auto industry. If GM or Ford spends $50 billion a year in Michigan, have the state [[we taxpayers) cut them a check for $21 billion dollars. Such a deal!

Because the whole point of the tax credit was to try to bring in businesses OTHER than the auto industry.

**Det_ard** · February-22-11, 12:24 PM

Originally Posted by Funaho

Because the whole point of the tax credit was to try to bring in businesses OTHER than the auto industry.

Fine, so extend it to every industry other than the auto industry. Still a terrible policy.

**Pam** · February-22-11, 01:29 PM

No, he didn't change his mind...not publicly

Right before the election, I seem to remember him taking a step back from saying get rid of it outright, to something more wishy washy. I was a Bernero supporter all along so it didn't change my vote, but it might have sucked some people in.

**rb336** · February-22-11, 01:39 PM

Originally Posted by Det_ard

Fine, so extend it to every industry other than the auto industry. Still a terrible policy.

Let's see invest $1 get $6 back? that doesn't sound like terrible policy to me

**rb336** · February-22-11, 01:41 PM

oh - and I wonder what one of his largest supporters - John Rakolta, who is part-owner of the Raleigh Michigan Studios nearing completion in Pontiac - feels about the cut

**Det_ard** · February-22-11, 02:08 PM

Originally Posted by rb336

Let's see invest $1 get $6 back? that doesn't sound like terrible policy to me

The studies I've read show it's a money loser. I know, dueling studies. Still, my conclusion is it's not the best use of those funds.

Looking at a different aspect of this issue, it's funny who's lining up to support the film subsidies. Normally, a huge corporate welfare program that often benefited multi-national corporations would be strongly criticized. Yet here we have supporters claiming that the tax credit creates economic growth and greater tax revenues. Doesn't that sound like the supply-siders and Laffer-curve acolytes in the Reagan era who preached the positives of lower marginal tax rates?

Here we're not talking about merely lowering the tax rate the film corporations pay, we're paying them to do business. And not just by improving their bottom line by a few percent as the Reagan tax cuts did for companies, but by 42%! If a construction company comes to MIchigan and does a $10 million project that costs them $9 million they might end up paying Michigan around $100K in taxes. If a film company spends the same amount, $9 million, Michigan gives them a check for about $3.78 million! This is good business? For the film company, sure. For the citizens of Michigan, hell no.

**mikeg19** · February-22-11, 02:39 PM

I think the worst part about this is we all come off looking like idiots. We started this incentive and three years later after the movie industry starts to establish itself here the incentive is going bye bye. I wonder how long it takes for these new movie studios to shut down and get the hell out of Michigan....

**DetroitPetanque** · February-22-11, 03:21 PM

No problem! Gov. Snyder has some Republican programming to replace the film studios that are leaving...

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**Hypestyles** · February-22-11, 03:51 PM

I wanted the Avengers and Batman movies to film in Detroit..plenty of abandoned factories and warehouses for hideouts for the good and bad guys.. and for any that got blown up, less cost to the city..

**iheartthed** · February-22-11, 03:59 PM

Originally Posted by Hypestyles

I wanted the Avengers and Batman movies to film in Detroit..plenty of abandoned factories and warehouses for hideouts for the good and bad guys.. and for any that got blown up, less cost to the city..

Has Batman pulled out yet? That would be really unfortunate. It is practically a guaranteed summer blockbuster, and the media buzz generated by it would be invaluable to Detroit...

**Fnemecek** · February-22-11, 09:11 PM

Originally Posted by DetroitPetanque

No problem! Gov. Snyder has some Republican programming to replace the film studios that are leaving...

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I love this. Love it. Love it. Love it.

May I repost it?

**jerrytimes** · February-22-11, 10:49 PM

Originally Posted by rb336

Let's see invest $1 get $6 back? that doesn't sound like terrible policy to me

Do you really think that is happening? Seriously, all political thoughts aside, do you really think that is happening here? No... Get real. I don't want the film industry to leave either, but other states have tried this and had the same outcome.

**Fnemecek** · February-22-11, 11:12 PM

Do you really think the sun is going to rise in the east?

Ask any of the folks in the tourism business. This is as real as it gets.

**Johnnny5** · February-23-11, 01:29 AM

Just a little reminder of how successful these credits have been.

http://www.freep.com/article/2011022...001/1001/rss01

**Pam** · February-23-11, 06:39 AM

http://www.mlive.com/jobs/index.ssf/...s_to_hold.html

A town hall meeting among Michigan's film industry players is taking place at Maxar Studios in Livonia on Thursday, Feb. 24, from 7:30-10:30 p.m. The meeting is open to the press and the public.

The organizational and informational event is aimed at finding the most effective strategies to convince Michigan’s legislators, governor and voting public why the film incentive program should be preserved

**rjk** · February-23-11, 07:10 AM

Originally Posted by mikeg19

We started this incentive and three years later after the movie industry starts to establish itself here the incentive is going bye bye. I wonder how long it takes for these new movie studios to shut down and get the hell out of Michigan....

About 6 minutes. You probably could tack on another 20 seconds if they have to trample over a band of thieving gypsies fleeing the cops.

Hollywood doesn't establish itself anywhere outside of California. It's just a matter of time before another state tops Michigan's 42% or the next highest state if Michigan cuts its program. If they don't the obvious question would be why not.

**xphillipjrx** · February-23-11, 02:20 PM

It's time for a DetroitYES math story problem.

This thread has five pages and I don't have time to read them all. Has anybody posted some real numbers? Mitch Albom's column mentions that the $100 million current incentive will be reduced to $25 million by Gov. Snyder. Mitch wants it bumped to $150 million, but how about we use a round $100 million for our example...

I did a web search for "Detroit 1-8-7 budget". I saw one story that said ABC expects to spend $25 million on the first 12 episodes of the show. Another story said 42% of the production cost [[$10.5 million) will be spent in Michigan. Let's slice and dice the $10.5 million figure.

A. How much comes from the State of Michigan incentive fund if $10.5 million is spent in Michigan?
B. What percentage does labor take from a TV production budget?
1. How much of that labor $$ goes back to the State [[and city) in income tax?
C. What percentage of a production budget goes to local contractors [[transportation, lodging, catering, etc)
1. How much of that contractor $$ goes back to the State in company and/or employees' income tax?

If a few knowledgeable DY members can fill in the blanks then maybe we can use a good example to see if the incentive is worth it. Someday there may be a "Bridges of Madison County" type of movie that makes people want to come here and visit. I don't think we are there yet so let's just talk about the $$ that flows from the State to the production companies to the community and back to the State via taxes.