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Doyle: The Anti-Business Governor
Governor Doyle does not apparently share the views of his Lieutenant Governor or Film Wisconsin. His proposed biannual budget eliminates the film tax credit program and replaces it with a grant program which allocates $500,000 for creating permanent jobs. This shows a lack of understanding on the Governors part of how the film business works.But a broader look at the Governors policies reveal a general anti-business attitude. His budget calls for raising business taxes around the state. He has also been using the Department of Revenue to audit existing businesses. These audits have involved many in the film and video industry. The Governor himself referred to filmmaking as "Manufacturing for the 21st Century." This slogan is in direct contradiction to the Department of Revenue which does not consider film production "manufacturing." This has been used by the Sales and Use Tax Department to fine companies and charge back taxes which threaten to put some companies out of business.
How do you argue with a Governor that has that attitude towards local businesses?
The press, who seemed to be helping the cause, did an abrupt about face after Johnny Depp left the scene. They started running stories about a highway near Columbus that collapsed under the additional traffic which had been diverted around filming. Next came story after story about the $4.6 million of Wisconsin tax money that was given to NBC Universal. Radio talk show hosts railed against the $450,000 of tax money spent for Michael Mann's salary. Zach Brandon from the Department of Commerce was quoted as saying, "The idea that paying 25 percent of a Hollywood director's seven-figure salary somehow has a direct economic impact to the State of Wisconsin is ludicrous."
The proponents of the tax credit program have been encouraging people to write the Governor as well as various Legislators. A Facebook Cause entitled Save Wisconsin Film Incentives now has over 1000 members. Film Wisconsin has talking points available on their website as well as a letter from Stephen Dedow, the Business Representative of IATSE Local 470 who spoke of the many members of his local that worked on Public Enemies. Some producers are threatening to take potential films elsewhere and some people are even proposing a "die in" at the Capital to symbolize the death of the film industry.
Filmmakers from both inside and outside the state have been detailing how the incentive package has been of benefit.
| To assume that Public Enemies is a litmus test for the success of a film tax incentive, or that one year out of the gate is long enough for an incentive to bear fruit, is extremely short sighted. It’s time for benefactors inside and out of the film community to express their disappointment. Let’s ask the Governor to visit Door County as they continue to film “Feed the Fish”. Stop in at the local pub, “The Sister Bay Bowl” and ask Eddie the bartender if he’s enjoyed serving the nightly crew of 45. Or ask Kat, the hotel clerk at the Scandinavian Lodge, how it’s turned her sleepy winter lodge into a bustle of activity. Or all the interns, PA’s, grips and crew members that are hoping to continue their career in the state that they grew up in and love, if the incentives are kept in place. The film community is only going to succeed exponentially as the incentives are given a chance to grow. -------------------- As an executive producer on the Tony Shalhoub film, “Feed the Fish” currently being filmed in Door County, I can testify to the fact that this bill works. It is pumping thousands of dollars into a sleepy winter community that generally waits for the summer months to draw a crowd.I’ve talked with Eddie the bartender in the Sister Bay Bowl that serves a crew of 45 nightly as they unwind from the days shoot. Trina the waitress at the infamous Al Johnson’s Restaurant in Sister Bay, serves breakfast daily to cast, crew, and onlookers. She and her friends gather customers as they talk of their day on the set as extras. Kat, the hotel clerk at the Scandinavian Lodge is thrilled to see all the activity that the film is creating in an otherwise quiet season. Cast members such as Barry Corbin (“No Country for Old Men”) is back for his second time in WI for a film, reminding the naysayers that long after the film is shot, spectators want to visit that scene they just witnessed on the big screen. If these tax incentives were not in place, these dollars would be spent in another state. Writer/Director Michael Matzdorf and Tony Shalhoub, Emmy Award winning star of Monk, have 3 more projects that they are planning on bringing back to Wisconsin, if the incentives are in place. If these incentives are eliminated, we tell the film community that we are not open for business. |
However, reader comments from a recent Reel Chicago article entitled "Governor wants to kill film incentives" showed that not everyone is in agreement with the benefit of tax credits:
| Like most incentives created in this country, they mean more money for the ones who already have the money. There are NO conditions, such as "you must employ a certain percentage of your crew within local talent." Until TAX incentives carry along such mandates, they are a joke. All they do is favor L.A. guys who keep using the country as a set and treating locals like ignorants who don't deserve to work in the industry. -------------------- Much has been made about the film incentives program here in Michigan but so far it only benefits the current studio system that brings in its own crews. It seems like big-name directors, producers, and studios basically come into an area, do what they want, and leave. It does no significant hiring, training or encouragement of local permanent employment. |
The argument here isn't about anecdotes like these; it's about ROI (Return On Investment). The data the Department of Commerce collects is what the Governor is considering and the Department of Commerce right now is calling the program "a wash." You could argue that breaking even is acceptable for the first year of a program, but if you do you should be able to establish how the program will eventually turn a profit.
I personally took a different approach. Rather than have my letter thrown into the pile with all the others asking the Governor not to cut the program, I agreed with the Governor. I outlined the problems with the current system and referred to a recently released analysis from New Mexico which shows a return of $1.50 in tax revenue for every dollar of tax credit spent. We too could have a program that has a return on investment of 150% if he would care to discuss it. I rather doubt he'll call.
Clay Simchick
