September 12, 2012
The Honorable Edmund G. Brown, Jr. Governor of the State of California State Capitol Sacramento, California 95814
Dear Governor Brown:
As members of the Los Angeles Coalition for the Economy & Jobs (L.A. Coalition), we are writing to express our strong support for Assembly Bill 2026 (Fuentes) and SB 1197 (Calderon), which would extend the state’s motion picture production tax credit for an additional two years beyond its current expiration date of 2015.
The L.A. Coalition is an independent and bipartisan alliance that brings together top leaders from business, labor, academia and nonprofit to develop and advance sound policies that help to responsibly grow the economy and create quality jobs throughout the Los Angeles region. As a group, the L.A. Coalition’s membership represents organizations that employ more than 900,000 workers in the region.
We are particularly focused on public policies that will support our region’s most globally competitive industries, such as film and television production, especially during a time in which worldwide demand for content and products linked to these industries continues to rise. Other states and countries are not ignoring these economic opportunities, as witnessed by their aggressive offering of film and television tax credits to lure projects, their skilled workers and additional commitments for future productions. This is making an impact. California's concentration of film employment alone has slipped from 4.4 times the national average in 1997 to less than 3.7 times the average now.
The extension of the California Film and Television Incentive Program will send a message that our state will fight to maintain its leadership role as the world's top creative economic climate and that policymakers will support efforts to strengthen our current competitive advantages - first-rate production facilities, skilled workforce, industry expertise and overall quality of life.
As you are probably aware, film and television production is very labor intensive, providing hundreds of good paying jobs, from skilled camera and set technicians, electricians, carpenters, and make-up artists, to name a few. Furthermore, for every project that remains in our state, numerous small businesses throughout our communities will reap the economic rewards. The California Governor Jerry Brown – Support for the Creative Economy September 12, 2012 Page | 2 evidence is clear - since the program's inception in 2009, eligible productions, which now have the ability to film anywhere in the world, generated $3.9 billion in direct spending in California, produced $1.3 billion in wages, and helped employ more than 42,000 cast and crew members.
These projects also support one of California's most promising growth sectors - tourism. As we all know, movies and television shows filmed in our state help capture the image and ideals of our people and places and project them to the world. Each year millions of visitors from around the world come to Southern California to experience Hollywood, Universal Studios, the Walk of Fame, Mann’s Chinese Theatre and our many other film-related attractions. These visitors spend dollars on hotels rooms, food, services, clothing, jewelry, perfumes, sightseeing trips, air travel, vehicles, entertainment experiences and more, which in turn helps generate the revenue government needs to meet the demands of its citizens.
In this time of economic limitations, we fully appreciate the recognition and support of the California Senate and Assembly in supporting a two-year extension of the program. We believe that this support is clearly based upon the current incentive’s demonstrated impact and look forward to working with you on the enactment of these bill(s) into law.
Respectfully,
Russell Goldsmith Jay Roth Los Angeles Coalition Chairman National Executive Director Chairman & CEO Directors Guild of America City National Bank
Marc I. Stern Theodore F. Craver, Jr. Vice Chairman and Chief Executive Officer Chairman, President & CEO The TCW Group, Inc. Edison International
Ron Meyer Thomas Priselac President & COO President & CEO Universal Studios Cedars-Sinai Medical Center
California Governor Jerry Brown – Support for the Creative Economy September 12, 2012 Page | 3
President & CEO James A. Thomas AEG Chairman, President & CEO Thomas Properties Group
Barry Meyer Ed Roski Chairman & CEO Chairman & CEO Warner Bros. Majestic Realty
Ambassador Robert Tuttle Elise Buik Co-Managing Director President & CEO Tuttle-Click Automotive Group United Way of Greater Los Angeles
Samuel Hoi President President Cal Poly Pomona Otis College of Art and Design
David Bohnett Gary Toebben Principal President & CEO Baroda Ventures, LLC Los Angeles Area Chamber of Commerce
California Governor Jerry Brown – Support for the Creative Economy September 12, 2012 Page | 4
Steven Lavine John Long President Chairman & President California Institute of the Arts Highridge Partners, Inc.
John Emerson Jack Weiss President Managing Director and Head of Los Angeles Personal Investment Management Office The Capital Group Companies, Inc. Kroll
Art M. Gastelum Craig Smith President & CEO President & CEO Gateway Science & Engineering Goodwill Southern California
Bill Allen Victor Coleman President & CEO Chairman & CEO The Los Angeles Economic Development Hudson Pacific Properties, Inc. Corporation
Maria Elena Durazo Mickey Kantor Executive Secretary-Treasurer Partner Los Angeles County Federation of Labor, Mayer Brown AFL-CIO
California Governor Jerry Brown – Support for the Creative Economy September 12, 2012 Page | 5
Skip Keesal Sherry Lansing Partner CEO Keesal, Young & Logan The Sherry Lansing Foundation
Mel Levine Jamie McCourt Partner CEO Gibson, Dunn & Crutcher Jamie Enterprises
Bryan Lourd Michael Lynton Managing Director Chairman & CEO Creative Artist Agency Sony Pictures Entertainment
Christopher Martin Gene Block CEO & Co-Chairman Chancellor AC Martin Partners UCLA
Steven Mnuchin Chris Silbermann Chairman President One-West Bank International Creative Management
Thom Davis Matthew Toledo Vice President Publisher & CEO I.A.T.S.E. local 80 Los Angeles Business Journal California Governor Jerry Brown – Support for the Creative Economy September 12, 2012 Page | 6
David Fisher Michael H Kelly Chairman of the Board Executive Director The Capital Group Companies, Inc. The Los Angeles Coalition for the Economy & Jobs
CC:
The Honorable Darrell Steinberg President Pro Tempore California State Senate State Capitol Sacramento, California 95814
The Honorable John Perez Speaker California Assembly State Capitol Sacramento, California 95814
The Honorable Felipe Fuentes California State Assembly State Capitol Sacramento, California 95814
The Honorable Ron Calderon California State Senate State Capitol Sacramento, California 95814
The Honorable Bob Huff Minority Leader California State Senate State Capitol Sacramento, California 95814
The Honorable Connie Conway Minority Leader California State Assembly State Capitol Sacramento, California 95814
California Governor Jerry Brown – Support for the Creative Economy September 12, 2012 Page | 7
Nancy McFadden Executive Secretary for Legislation, Appointments, and Policy Office of the Governor State Capitol Sacramento, California 95814
Ana J. Matosantos Finance Director California Department of Finance State Capitol Sacramento, California 95814