Legislature squandered millions by rejecting film industry aid

This Web only Speakout has not been edited.

Denise Strong

Thursday, March 27, 2008

The voters of Colorado need to know that the State of Colorado is losing billions of dollars in business to other states because the House finance committee voted 6-5 and rejected the film incentive bill, HB 1355, on Tuesday March 18th. Due to the recent low value of the dollar, the worldwide film business is returning to the USA for a majority of movie production and the State of Colorado is missing out on this revenue as we watch neighboring New Mexico attract over 1.5 billion film business dollars since 2005.

It is important to understand that film production works differently than most businesses. It is literally on wheels as shooting companies move and shoot for several months and then they are gone, leaving little or no impact other than the millions of dollars spent on goods and services in the local economy. Another difference is that producers choose where to shoot based on a particular state’s film incentive legislation and how it compares with the other 40 States who offer attractive plans to bring the production dollars to their state.

Colorado has one of the weakest film incentive plans in the nation and now it seems it will be without a state funded Film Commission office, giving Colorado even more of a disadvantage as we compete for these much needed dollars. The states with the most aggressive film incentives are New Mexico & Louisiana and they are enjoying huge revenues from a variety of film production while Colorado is not even being considered for this business.

The 25% transferable tax credit proposal would be self-funded as no monies are credited until it is proven that the film production dollars have already been spent in Colorado. It is estimated that as this currency moves from employee or merchant throughout the local economy that the initial sum spent is multiplied 4-5 times. Unfortunately, six members of the state house finance committee could not understand the magnitude of spending a quarter million dollars a day and what an overwhelming boost that can have throughout a local economy. They seemed stuck in the small-minded thinking that the state will only get about 7% tax revenue on the qualifying budget, while the tax credit is 25%. The point is, without a strong incentive package Colorado will get none of this lucrative business because it will continue going where it is most attractive. Not to mention the positive economic effect on tourism if a movie featuring Colorado is wildly successful, as was seen recently in Wyoming tourism after Brokeback Mountain was released.

Do these politicians care that the voters do not want to lose this business to other states? Do they comprehend that the taxpayers support this economic development strategy, as the public understands the multiplying effect of an economic surge? If you don’t want Colorado to lose this immense economic opportunity let these short sighted politicians know that you do not support their decision to vote NO on the self funded tax credit proposed in House Bill 1355.

Joel Judd- D 303.866.2925

Debbie Benefield - D 303.866.2950

Doug Bruce -R 303.866.5525

Jeanne Labuda-D 303.866.2966

Kent Lambert- R 303.866.2937

Kevin Lundberg-R 303.866.2907—————

The Yes votes were granted by

Alice Borodkin- D

Mark Ferrandino- D

Jerry Frangas - D

Jim Kerr - D

John Kefalas - D

Denise Strong is a resident of Arvada.