Study Reveals Significant Economic Benefits Entertainment Industry has on California Economy
Los Angeles (August 22, 2005) --- The California Film Commission today released a comprehensive study conducted by the Los Angeles Economic Development Corporation (LAEDC), which details runaway production’s negative impact on California’s state revenue. Along with such groups as the Directors Guild of America (DGA), Teamsters Local 399, and the Motion Picture Association of America (MPAA), Screen Actors Guild (SAG) contributed funding to the report.
"Fighting runaway production is one of the Guild's highest national priorities," Guild President Melissa Gilbert said. "This report is invaluable because it proves how devastating runaway production is for all entertainment industry workers who live and work in California. This is the most extensive economic study since Screen Actors Guild and the DGA commissioned the Monitor Report in 1999.
“We hope that lawmakers throughout the state will see how critical good-paying jobs with benefits are to our state's economy. California has already watched the once-booming aerospace and automotive industries disappear, and we are seeing California tech jobs steadily stream off shore. Our state must protect its workers–actors, craftspeople, drivers and directors—from further job losses. The Guild is committed to continuing efforts to keep production within our borders.”
The California Film Commission issued the following press release with the report:
The California Film Commission released today the results of a comprehensive study, conducted over the last six months by the LAEDC, detailing the way in which the state’s tax funds directly benefit from feature film, television and commercial production. Funded by a coalition of leading entertainment industry groups concerned about the future of California film production, this study marks a continuing effort to show the significant economic impact the entertainment industry has on California’s economy and the ever-increasing and devastating amount of revenue the state loses to runaway production.
Employing actual budgets from recent California-based productions, the LAEDC conservatively estimated the economic output per production as it relates to jobs, wages and state sales and income taxes.
“With this new research we can specifically identify the tax dollars the state loses each time a production leaves to take advantage of aggressive incentives offered by other states and countries,” said Amy Lemisch, Director of the California Film Commission. “It is crucial that we remain competitive – keeping production in California means more jobs, more money for small businesses, more tax revenues, and more tourism.”