LA City Council Considers Cost of Runaway Production

[Eric Leonard]

The City's legislative analysts office just finished a report on what each lost show actually costs the local economy - in this case, the tax revenues generated by the production of each episode of an hour-long drama (Ugly Betty).

I have the report - but I'm not sure how to post it here. It's a 2mb PDF.

-- Eric

This is from a press release from L.A. City Councilman Eric Garcetti's office:

REPORT SHOWS LOSS OF TELEVISION SERIES PRODUCTION COSTLY TO LOCAL

ECONOMY

Study conducted by Los Angeles Economic Development Corporation is

result of Garcetti’s “Ugly Betty” motion

LOS ANGELES -- In response to a motion authored by Los Angeles City

Council President Eric Garcetti, the City of Los Angeles’s Chief

Legislative Analyst’s office today released a report that shows a

heavy cost to Los Angeles’s local economy when productions move to

other cities.  Conducted by the Los Angeles Economic Development

Corporation, the study concludes that the production of each 1-hour

television program generates 180 direct jobs and 540 indirect jobs and

an average of $880,000 in sales tax revenue and $2.2 million in state

income tax.

“This study quantifies what we have known all along – the

entertainment industry is an important part of our economy and every

television show that we lose to another location means fewer jobs and

fewer tax dollars to pay for services such as police, fire, street

repair, and after-school programs,” said Council President Garcetti.

The study also included recommendations of initiatives the City of Los

Angeles could implement to retain production.  They include:

●      Create a tax credit or incentive program, contingent upon the

State of California implementing a similar program

●      Consider of changes to the Entertainment and Multimedia Tax

Incentive

●      Direct DWP to create easier access to power and data lines at

key locations for filming

●      Improve parking resources for productions

The City Council’s Public Works Committee is reviewing the study at

its regular meeting today.