End of film credits means more money for roads

Published 9:47 am Thursday, July 23, 2015

Last week, a long-running program came to an end.

The Michigan Legislature, with my support, voted to end funding of a $50 million drain on our state’s economy, that provided tax credits to the film industry in an attempt to bring jobs to Michigan.

The film incentives program began in 2007 under the direction of former Gov. Jennifer Granholm and has fluctuated in size during the years since, peaking at a level of $115 million in 2010.

Gov. Rick Snyder recently signed House Bill 4122, which brought this ineffective program to an end.

Earlier this year, I supported a budget for fiscal years 2015-16 that prioritized the road repairs that our state so badly needs.

That legislation included a 25 percent increase, or $400 million, in direct road funding without increasing taxes on hardworking Michigan residents — on top of the $3.7 billion that we are already spending on roads this year.

Several road funding plans have recently been proposed, some of which would raise our state’s fuel or sales taxes. I remain committed to prioritizing taxpayer dollars in order to come up with the additional funds required to fix Michigan roads. In light of this important task, we cannot justify utilizing taxpayer dollars to continue a program of film credits, that has not proven to bring money or jobs into our state.

According to the Bureau of Labor Statistics, there were 1,537 “motion picture and video production jobs” in 2001 — a figure that jumped by only 24 jobs in 2013. During that time span, the state had spent about $494.4 million in the effort to attract films to Michigan.

A 2010 report from the Senate Fiscal Agency said that each dollar spent on what were then refundable film tax credits generated only about 60 cents worth of private sector activity and each job directly created by the program cost taxpayers as much as $186,519.

I believe that before we unnecessarily burden our hardworking citizens with new taxes in order to pave our roads, we must cut programs that do not produce results.

 

Sen. John Proos, R-St. Joseph, represents southwest Michigan.