Governor Kathy Hochul's latest budget proposal has sparked controversy by suggesting an extension and expansion of a state program that provides substantial subsidies to Hollywood for filming in New York.
This initiative, which supports productions such as "Billions" and "Blue Bloods," is set to increase its annual cap from $700 million to $800 million, with the additional funds earmarked for independent films. Hochul's plan also seeks to prolong the program by two years, extending it through 2036.
According to The New York Post, the watchdog group Reinvent Albany has criticized this move, estimating it would burden taxpayers with an additional $1.8 billion, raising the program's total cost over 13 years to $9.5 billion. John Kaehny, the executive director of Reinvent Albany, expressed his disapproval, stating, "It is nauseating that Governor Hochul proposes flushing . . . state taxpayer dollars down the Film/TV production pay-to-play toilet." An independent analysis by the PFM Group revealed that the program only returns 31 cents on the dollar to state taxpayers, while Reinvent Albany's calculations show the state spends $75,000 per film and TV job supported by the initiative.
The program has benefited major productions like "The Marvelous Mrs. Maisel," "Only Murders in the Building," and "The Many Saints of Newark." Hochul's proposal also aims to relax certain restrictions, allowing subsidies to cover salary costs for "above-the-line" employees, such as directors, actors, and producers, who are integral to the creative process. Currently, only technical staff, including makeup artists and lighting crews, qualify for these subsidies.
In addition, the governor seeks to enhance incentives for producers by offering an extra 10% credit on salary reimbursement for film companies that complete at least three productions in New York, supplementing the existing 30% credit. However, Ken Girardin, director of research for the Empire Center for Public Policy, argues that New York's reputation is already sufficient to attract the film industry without such tax credits. "This whole program should be nuked from orbit," he asserted. "The states own numbers show this program doesnt do what it is supposed to do."
Despite the criticism, the state's economic development agency defends Hochul's proposal, citing the loss of over 20 projects to New Jersey in the past 18 months due to more attractive financial incentives offered by the neighboring state. Matthew Gorton, spokesman for the Empire State Development Corp., stated, "Governor Hochul has proposed reasonable, responsible updates that will keep the Empire State competitive and add billions to our economy." He added, "Scenes about New York oughta be filmed in New York, not on a backlot in the boondocks of New Jersey."
Charles Rivkin, chairman and CEO of the Motion Picture Association, also supports the governor's proposal, noting it would "further our industrys track record of creating union jobs, establishing talent pipelines, and supporting small businesses." As the debate continues, the question remains whether the economic benefits touted by supporters will outweigh the concerns raised by critics about the program's cost-effectiveness and impact on taxpayers.
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