Dennis Kintigh
Today in New Mexico movie production companies receive checks from the New Mexico state treasury equal to 25 percent of their approved expenditures. In fiscal year 2009, which ended June 30, this one program cost you, the taxpayer, $82 million.
I believe this program is an abuse of your tax dollars. As the state representative for District 57 (northern Chaves, northern Lincoln and northern Otero Counties), I have introduced a bill to repeal the film industry subsidy, also sometimes called the film industry tax credit.
The supporters of this subsidy claim that it stimulates an industry that creates jobs. I agree that some have benefited, but how many and at what cost?
Film subsidies have been the subject of numerous studies. Some claim the public treasury gets $1.50 back for every $1 paid out. Other studies show the return is only 14 cents. If you would like to see the reports, I encourage you to visit my web site, denniskintigh.com, and click on the icon for New Mexico film subsidy. There you will find reports both for and against the program.
The current economic situation is a difficult one that has compelled the Legislature to trim budgets and furlough state employees. New Mexicans have sacrificed while tens of millions of dollars have gone to out-of-state film producers. In this time of declining revenue, does it make sense to give away so much public money for a program about which there is so much debate? Can we not find economic incentives that offer a better assurance of a positive return on investment?
After serious and careful study, I have concluded the film subsidy is not an appropriate expenditure of our dwindling tax revenue.
This subsidy is supported by some of the most powerful forces in and outside the state. From the governor to Hollywood producers to union officials, this subsidy gets articulate and forceful support. But political clout does not equal public good. The ultimate responsibility of the Legislature is to ensure the wise use of your tax dollars.
Kintigh is a Republican House member from Roswell.