Sunday, March 27, 2011

News Update 3/18

KOB TV News Report 3/18:

http://www.youtube.com/watch?v=vnjuey_xDmA

LA TIMES Article:

http://latimesblogs.latimes.com/entertainmentnewsbuzz/2011/03/on-location-new-mexico-senateokays50millioncaponfilms.htmlutm_source=feedburner&utm_medium=feed&utm_campaign=Feed:+newsandbuzz+(News+&+Buzz)&utm_content=FaceBook

YAHOO News Article:

http://news.yahoo.com/s/nm/20110321/film_nm/us_newmexico_film_1
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Legislative update, 3/18

The $50 million limit to the film program was passed on the Senate Floor, and also in the House.  The program keeps the rebate percentage at 25%, and the tiered payout system. Governor Martinez still needs to sign it.

Governor Martinez
505-476-2200

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Tuesday, March 15, 2011

Senate Email List & Sample Letter




Please restore the $60 million cap to the film program, and give the program a sunset or a cost of living increase.  
Give us time to study the program before making such drastic cuts.  
Give us something we can work with.  

It is estimated the film industry has generated over $1.2 billion of revenue for the state of the last 7 years.  
Why are we cutting this possible revenue down by 30-50% with the low cap?

There is a cost to everyone, including the state, to loose jobs, and income.
Governor Martinez continues to demand these cuts, and has made this issue about politics, not about fiscal sense.


Senate Democrats:


Senate Republicans:


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Legislative update 3/15

An amendment to add $5 million back to the film program was passed in Senate Finance yesterday.   It added $5 million (and ONLY $5 million), AND it removed the tier payment system, which we desperately need.  We are trying to get that rectified, plus a again asking for a larger float, plus push for a sunset and or a cost of living increase.  We are pushing next for the Senate Floor.

We have support here that is keeping this alive.  It's literally down to single votes in the Senate. If you're going to make a difference, its today and tomorrow. We need lobbying of all Democratic Senators with the exception of Smith, Jennings, Fischmann, and Papen.  

Our message is this: $60 million plus a sunset or a cost of living increase.
Don't limit the amount of revenue the state can generate in one year.

We still need people here in the roundhouse!!! and calling and emailing.
This is it in terms of our working time frame this year.

Please find more updates here:

~Please see link to our TV ad:



-Article from the Journal with a good quote from LANB.
Senate Panel Backs Film-Rebate Compromise

By Dan Boyd  Journal Capitol Bureau

SANTA FE - A key Senate budget committee took a stab Monday at finding an elusive compromise on New Mexico's film incentives, raising the proposed limit on how much the state could pay out annually to $50 million.
        Meanwhile, film industry executives say the tone of the simmering debate has already exacted a toll.
        Steve Perry, the planner of a $20 million planned Santa Fe postproduction film studio, said a local bank decided last week not to follow through on a pledged loan of more than $12 million due to the uncertain future of the film incentive program.
        The decision by Los Alamos National Bank, just eight weeks before the scheduled groundbreaking of Masque Entertainment Studios, threw the project into jeopardy, he said.
        "It's just a shame to see this piddle away," said Perry, who added that the studio project had already gone through the city review process and was expected to create 750 construction jobs.
        Debate over the state's film rebates - which paid out about $65 million last year - has been fierce since Republican Gov. Susana Martinez announced earlier this year that she wanted to see the incentives trimmed.
        While lawmakers have balked at the push to lower the rebate amount from its current level of 25 percent, the House approved legislation earlier this month that would have limited outgoing rebate payments to $45 million annually and structured some rebate payments over several years.
        After film industry officials blasted that plan, members of the Senate Finance Committee worked behind the scenes to amend the bill, House Bill 607, to find common ground.
        The result, unveiled Monday, would slightly increase the annual cap. It would free an estimated $18.5 million in the coming year, according to a Taxation and Revenue Department analysis.
        "Five million (dollars) isn't a big number, but it sends a different message," said Sen. Gerald Ortiz y Pino, D-Albuquerque, of the increase in the proposed cap. "I think this message is positive if the governor is willing to sign it."
        The amended bill was on its way Monday to the Senate floor, where it could be debated as soon as today.
        In addition to changing the cap, the Senate Finance Committee also changed the way the rebates would be paid out by removing the provision that would allow the payments to be spread out over several years.
        Bill Enloe, president and CEO of Los Alamos National Bank, declined to comment on Masque's situation Monday. But he did say that cutting New Mexico's film incentive program will have a deleterious effect on future loans the bank makes to film companies.
        "We're going to be a lot more cautious and careful in the kind of money we lend to that kind of activity," Enloe said.
        New Mexico has a long history of film-related activity, but only during the recent period of "relatively aggressive" incentives has the state really built up infrastructure and become a competitive location, Enloe said. Decreasing incentives will probably result in fewer films coming to New Mexico - and less of a need for that kind of infrastructure.
        "Changing that program creates a lot of uncertainty going into the future, and whether our infrastructure is too large to support the films that still choose to come here is a big question," he said.


Check the Film Works for New Mexico Facebook page for hearing times. 

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Letter to Senate Finance and Response




From: jerry ortiz y pino <jortizyp@msn.com>
Date: March 15, 2011 12:15:34 PM MDT
Subject: RE: The Cost of the Film Cap


We are working to find an agreement with the Governor to keep this valuable industry (the only growth industry in the state right now) healthy and sustainable.  The problem is that the Governor has made this a point of honor, one she apparently doesn't know how to back away from.  We don't need the savings from capping this industry to balance the budget--the amount involved is less than four tenths of one percent of our entire budget.  So what's happening now is politics, pure and simple.  This is a dangerous game we are playing with a desperately needed infusion of economic activity.  

Jerry Ortiz y Pino


From: hollylocations@gmail.com
Date: Tue, 15 Mar 2011 11:52:04 -0600
Subject: The Cost of the Film Cap
To: john.smith@nmlegis.gov; carlos.cisneros@nmlegis.gov; radair@dfn.com; petecampos@newmexico.com; leavell4@leaco.net; howiemorales@yahoo.com; nmsenate@msn.com;jortizyp@msn.com; marykay.papen@nmlegis.gov; nancy.rodriguez@nmlegis.gov; sue.beffort@nmlegis.gov

To the members of the Senate Finance Committee,

I was in the Senate Finance Committee Monday morning and I am deeply disappointed in the majority of you who voted for the $50 million dollar annual cap on the film rebate. I do not believe it is the work of the state legislature to mandate how much money an industry can bring to a state. By creating a cap, you are effectively doing just that. Because of various film industry market conditions, film companies will not come to film in NM if the rebate is unattainable to them. This will not change. It has to do with the high costs of advertising and distributing a film in this country. Until the distribution system in the US is fixed, film companies will continue to take their business only to states with viable film rebate programs.  

I want to talk about the costs of the film cap. What are the costs of limiting film industry revenue from almost $280 million (in 2010) to a max of $200 million? Let's just look at the unemployment costs as a start. A reduction from last years revenue of $69.5 million to a cap of $45 million is roughly a 35% reduction, so we must expect a 35% reduction in film related jobs. If the industry has 10,000 jobs and we lose 35% of those jobs, we can expect 3500 people out of work. If we look at an average of $250 a week in unemployment insurance for 3500 people, we are looking at an expenditure of $24 million dollars in one year. So tell me, why should NM taxpayers support legislation that puts $18.6 million dollars in the budget only to cost us $24 million in unemployment?  

With a $50 million dollar cap, the industry will slow down and the job market will become much more competitive. The production community and infrastructure will be over burdened during the first part of the fiscal year as films vie to get into the state and complete their projects before the rebate runs out. Then we will have studios and equipment sitting empty and idle the latter half of the fiscal year, once the rebate has been spent. Episodic projects such as "Breaking Bad" and "In Plain Sight" that work during the course of a year, will find it too risky to work in New Mexico. We will lose these film companies that otherwise could continue to shoot in NM for multiple years going forward. The cap will greatly destabilize a healthy and thriving industry in NM and will further weaken our economy.  

Many of you said that this has become political and you are in a tough place. I have a hard time believing that only one of you is willing to take a stand against the governor's strong arming to protect thousands of jobs, local business and health care. Jobs will go to other states, there will be an increase in home foreclosures and people with cancer will not have access to the work that pays for their healthcare. Perhaps when these stories start to hit the media, you will find the courage to fight the political battle that this unfortunately has become.  

Thank you to Rod Adair for having the foresight, understanding and courage to vote against the $50 million dollar cap. I hope that the rest of you will reconsider your position and fight for no less than these three things going forward: 

~A CAP OF NO LESS THAN 70 MILLION TO ALLOW FOR ALL THE BUSINESS WE ARE ABLE TO BRING TO NM
~PUT A 2 YEAR SUNSET ON THE CAP SO THAT WE MAY STUDY THE INDUSTRY AND REEXAMINE IN 2 YEARS
~RESTORE THE TIER SYSTEM 

Thank you for all your work,

Holly Roach


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Monday, March 14, 2011

Legislative Update 3/14: Hearing is 10:15am

The hearing in the Finance Committee is RIGHT NOW:
The hearing started at 10:15am this morning, and will continue for the next hour at least.
Please come to Senate Finance:  Room 322
Thank you.
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Sunday, March 13, 2011

Update 3/13: The Sage Continues

Greetings,

The film industry proposal was just cancelled in Senate Finance for tonight.  
The new time is 8:30am tomorrow morning.


Griego's SB 613 will not be heard, and may never. Griegos's bill that we want and just passed in the Corporations committee on Friday is being completely ignored.

HB 607, the budget bill with the $45 cap will be heard instead. John Arthur Smith is the chair of the Finance Committee, and he is calling the shots.  Smith is one of the strongest voices against the film industry in the entire Legislature.  He is the one who introduced the bill to cap all film and television productions at $2 million.

Michael Sanchez just ordered pizza for the whole senate.  
Word is they will not be off the floor before 8pm, and will still go to Committee to hear HB 607.

Our message is this:
No annual cap!!!  Keep the 25%!  Don't kill our business!

Our most immediate need is bringing people out to this Senate Finance Committee Hearing, AND we need people to lobby Senator Nancy Rodriguez.  
She is a democrat from Santa Fe.
The word is:  in person!  She may not be responding to email or phone messages, and can be requested on the floor anytime tonight.

Our second most immediate need is to buy airtime to air a commercial being shot tonight highlighting the benefits of the film industry for local business.   We need the voice <<and dollars>> of vendors and businesses tonight!!

IF YOU CAN'T COME TO THE ROUNDHOUSE, PLEASE DONATE!

Go to this website and click DONATE now!  http://www.iatselocal480.com/merch/merch.aspx

Thank you to all.

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