Monday, March 02, 2009

State releases economic impact study

The Office of Entertainment Development released an economic impact study today. The study was authored by Economics Research Associates. After my first read, here's what I find interesting:
  • The state attracted 135 movie and TV projects between 2002 and 2007 that qualified for state tax credits. In 2008 alone, the number of projects was 80.
  • In-state production and post-production expenses have steadily increased from year to year. In 2005, projects spent $238.6 million directly in Louisiana. In 2007, the number was $429.2 million.
  • During 2007, an average movie and TV project spent an average of $5.9 million in Louisiana (on in-state expenditures). In 2002, the number was $4 million. In 2005, the number was $6.6 million.
  • Between 2001 and 2007, employment in the state’s motion picture industry grew 22 percent annually, according to the Bureau of Labor Statistics.
  • In 2007, the motion picture industry directly employed 3,310 workers in Louisiana. An additional 2,920 jobs were supported indirectly, for a total of 6,230 jobs which earned $203.7 million in wages. The average salary among all these jobs was about $32,700.
  • Wages within the state’s motion picture increased 8.2 per percent per year between 2001 and 2007, according to the Bureau of Labor Statistics.
  • The State of Louisiana will issue an estimated $115.1 million in tax credits for productions made in 2007 and recoup $14.6 million in state taxes as a direct result of these projects. The incentive program amounts to a cost of $100.5 million for the State of Louisiana.
  • In calculating the impact of the motion picture industry on the state’s economy, the report noted that $429.2 million of direct in-state spending for 2007 ultimately amounted to $763 million of economic benefit to Louisiana, when things like rents, royalties, profits, dividends, property taxes and various indirect benefits are factored in. That means that $6.64 of new spending, or economic stimulus, was generated for every $1 in tax credits issued by the state.

7 comments:

cosmicdingo said...

How much will Louisiana have to boost it's tax credits to stay competitive with other states?

Alexandyr Kent said...

Some say boost the production credit from 25 to 30 to match Ga.

Some say keep it at 25 and keep adding infrastructure.

Some say go to 33 percent.

Anonymous said...

Even without changes, I think we'll remain competitive based solely on the cost of living/goods/services here. We're a cheap date.

Alexandyr Kent said...

That's very, very true. ... And I like French fries.

Chris Lyon said...

I agree with the idea of keeping 25 and re-upping infrastructure credits. Problem is that currently, we aren't getting a lot of local productions so Shreveport may need to up their game on the state playing field.

Things I think we could benefit locally from:
- Editing/General Post house

- Local organization of specialized crew members such as gaffers, special effects crew, sound, video assist, etc. A centralized, one-stop shop for your specialized crew.

- Centralized guild office locations- think "Film Block" on the West Edge of downtown Shreveport- our own studio backlot so to speak.

- Red Camera rental house- 4 films have been entirely Red here and others wanted Red but couldn't get them on the short notice.

- Full height studio space (nearly double what's currently available)

- Sound design and mixing house

Chris Lyon said...

Pie in the sky, but a special effects house would be awesome as well. I know that LSUS has a great program starting, but I wonder who will actually start an FX company here. LSUS can have the workforce ready, but if no one is here to employ them they will leave the Shreveport area or the state just to find work.

Moodyleo1 said...

I agree with Chris. I also emailed this article to my state legislators and suggested they extend the tax credits again and maybe sweeten the pot.