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The Voice of the Production Industry
"Film production is a 'locomotive' industry, similar to housing construction and automobiles, in that the number of production workers in the industry belies the true impact of the industry on the economy because so many upstream, downstream, and peripheral industries depend on the primary production plant."U.S. Department of Commerce
Governor Rick Snyder’s budget proposal would cap the film industry incentive at $25 million annually.
The current film incentives legislation, enacted in 2008, is a non partisan issue, it passed 147-1, and was spearheaded by Republican representative Bill Huizenga (Zeeland) in the state’s west region, with large support from Sen. Jason Allen (R) and Sen. Majority Leader Mike Bishop (R).
It was agreed at the time that the film incentive program was necessary to help diversify the state’s economy in the wake of deteriorating manufacturing opportunities, and reverse the devastating effects of Michigan’s brain drain.
Gov. Snyder’s 10 Point Plan includes the following items, directly addressed by the film program:
1. Create more and better jobs;
4. Create an environment that will keep our youth – our future – in Michigan;
5. Restore cities and control urban sprawl.
6. Enhance Michigan’s national and international image;
10. Bring ‘winning’ back to Michigan.
Supporting the Economy
Amount film productions spent in Michigan in 2007: $2 million
Amount film productions spent in Michigan in 2008: $125 million
… 2009: $224 million
… 2010: $293 million
An Ernst & Young economic report released in 2011 showed that the film industry created 6,491 full-time equivalent jobs in 2009-10, generating over $800 million in economic output, and equating to an annual salary of $53,700. A film worker can earn full time pay in less than 40 hrs.
Michigan is one of only two states last year to have an increase in booked hotel rooms; a testament to the more than 100,000 room nights booked from the film industry.
Supported by the incentive, the prospect of long form programming, (talk shows, series) high tech industry productions (video games, websites) will employ even more Michigan personnel in permanent, annualized capacities than individual film productions.
In the first week of Gov. Snyder’s budget proposal announcement, a thousand Michigan residents lost work they had lined up with the film industry. Thousands more will lose jobs in the coming months if the proposal is enacted.
Bottom Line: The film industry brings significant money in to the Michigan economy.
Stopping the Brain Drain
College graduates have been migrating out of Michigan at a rate of 50%.
Colleges and universities statewide have invested heavily in personnel, equipment and resources to address the surge in interest and enrollment in the state’s growing film industry.
- Oakland University’s Cinema Studies program saw a 100% increase of enrollment since the incentives started.
- Michigan State University’s Telecommunications Dept. enrollment surged 26%.
- Compass College for Cinematic Studies in Grand Rapids saw enrollment explode 300%.
Bottom Line: More than most any other industry, the film & digital media industry keeps innovative minds in Michigan that would otherwise leave the state.
Facts Not Commonly Known
Each department working on a film develops relationships with, on average 30 local vendors. That translates to hundreds of business PER film that benefit from the incentives.
All production employees in Michigan DO pay Michigan state income taxes, contrary to erroneous reports. (This includes those from out of state)
Film & television companies have utilized and/or renovated over 1 million square feet of long vacant industrial warehouse space, most of which was automotive related.
Approximately $100 million has already been spent in infrastructure, invested by an entrepreneurial private sector to accommodate this industry. What is to be told to them, as their investment is now at great risk?
A rejuvenated, positive image and press coverage, long absent on the state, has appeared in such outlets as the Wall St. Journal, New York Times, Time Magazine, USA Today, Reuters, CNN, NBC, CBS, FOX News, Bloomberg TV, plus major international networks in Japan, Switzerland, Netherlands, and Britain.
Local excitement is an integral element in most of the countries’ major metropolises such as New York, San Francisco, L.A., Chicago and Seattle (which many feel has even worse weather than Michigan.).
Tourism is generated by film: In 1979 the film Somewhere in Time spawned a fan club that to this day meets annually on Mackinac Island, injecting over $500,000 into the local economy. It should also be remembered that the tourism industry of Southern California was literally founded on the iconography of Hollywood’s film and television industry.
With an eliminated film program, what message would that send to other industries that have been courted by Michigan, or, to all industries in general?
Bottom Line: As the only state in the union to lose population, Michigan has an opportunity to diversify its economy, create jobs for its residents, highlight the state’s dynamic spaces, and keep it’s young, talented people here.
Keep the film incentives viable. Support filmmaking in Michigan.
What You Can Do
Write your Michigan House Representative http://www.house.michigan.gov/
- Write your Michigan Senator http://senate.michigan.gov/
- Call Governor Snyder’s office 517.373.3400
- Make an appointment to visit your legislator in person, or meet at a local coffee talk.
- Write letters to the editors of your local papers
- Pass this document on to friends and family if they want to see you stay in Michigan.
Tell them a cap of only $25 million would devastate Michigan’s chances to have a viable, diverse industry that keeps people living and working in Michigan. Keep your letters short and state prominently that you support Michigan’s Film Incentive Bill.
“It’s not about winners and losers.
It’s winners, and many, many other winners!”
SPEAKER'S BUREAU
Are you interested in learning about the Michigan Production Alliance and the Production Industry? MPA members are available to come and speak to your group about incentives, production, technology, animation, organizing or involvement with the film and production community. Our members have expertise in various departments and may be of interest.
Contact us: 313.447.0566 or info@mpami.org
Here is something to wrap your head around..
A lot of us are restless. We're looking for something that's harder to find all the time: Places with a soul all their own. Cities that know what it means to be urban.
Our Hyperlink Promotion program! If you run a website in Michigan, add a button like this slate, make it a hyperlink with a caption stating that incentives are available. OR Consider using the MFO logo. You are on the front lines! Whenever someone hits your site they will learn about your services AND the opportunity for incentives. Spread the word that we are back in the game!
Shoot ANYWHERE in Michigan and get 40 to 42 percent back! Click the slate for details!
Governor Announces Appointments, Reappointments to Michigan Film Office Advisory Council
The Michigan Film Office is now using "reel scout" for sorting images, this is a service that can cater to location managers and scouts, password enty for specific projects and more.
Producers Get an additional 2% incentive when shooting in these Core Cities:
There are now 136 core cities in Michigan. Check the link below for a map and explaination of just what they are:
2010_Core_communities_map_and_info.pdf
The Michigan Production Alliance offers Seminars for those who wish to learn about what it takes to work on a commercial, corporate project or feature film. The MPA "P.A. Bootcamp" is one of our signature events.
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