Filming at the Packard Plant, Belle Isle Zoo, Lee Plaza

[esp1986]

While on paper this looks like a big money loser for the state, it is really very hard to estimate the impact it has had. While they estimate spending $100m on credits in 2010 compared with only $10.3m in increases in economic activity, I think these numbers are a bit skewed. While I have no doubt that the state is losing money on the credits, you have to wonder how much these credits have done. Look at all of the security at the Packard Plant, all of that money paid to them is being put back in the economy as part of their living expenses. Then all of the hotels and other expenses that come with these people, I think $10.3 million is a severe underestimation when it comes to the economic impact, especially considering all of the jobs that have been saved or created as a result.

[Gannon]

While they estimate spending $100m on credits in 2010 compared with only $10.3m in increases in economic activity, I think these numbers are a bit skewed.

They didn't say 'economic activity'.

They said tax revenue.


The impact of these folks hanging out in Detroit for even ONE NIGHT are way greater than the taxes skimmed from their endeavors here.

Lotsa companies do business, lotsa people keep their jobs. The state gets a bit back, too. Everybody wins.

Cheers, let's not let someone else's poor analysis cloud our judgment here.

[hybridy]

Movie subsidies a big loser for Michigan taxpayers, study shows

Michigan’s film subsidies may be enhancing the state’s image and producing pockets of new economic activity, but they’re unquestionably a net loser for state taxpayers, according to a report by the Senate Fiscal Agency released this morning.

The state Treasury doled out $37.5 million in subsidies in 2009 and is expected to distribute about $100 million to the makers of TV and film productions in 2010. But the estimated additional state tax revenue generated by film-related economic activity comes to only $3.7 million in 2009 and $10.3 million in 2010, the report found.
An analysis of movie and TV job creation by the agency found that the average cost to the state per full time job in 2008 was $186,519, and $193,333 in 2009.
Senate Fiscal Agency Director Gary Olson said the new report, the most comprehensive examination of the credits to date, said the subsidies are so generous [[up to 42% of production costs) that it is virtually impossible for the program to have a net positive effect on the state budget.
“That’s not to say there aren’t positive effects,” Olson said. Obviously, there are benefits to those who gain film and TV employment, he said. And the report doesn’t account for increased property and income tax revenue to local governments, he said.
But the cost of providing the subsidies falls entirely on the state, Olson said.
“It’s very hard to see how it ever benefits the state’s bottom line,” he said.
A spokeswoman for the Michigan Film Office had not seen the report and had no immediate comment.

Read more: Movie subsidies a big loser for Michigan taxpayers, study shows | freep.com | Detroit Free Press http://www.freep.com/article/2010091...#ixzz0zovxTNSq