OLYMPIA – There have been so few major motion pictures coming out of Washington that Gov. Christine Gregoire wanted the state-run film office shut down.
It was gone when she rolled out her budget proposal in March. She explained that she didn’t see how taxpayers received enough cinematic bang for their buck.
Democratic lawmakers thought otherwise. They passed a budget that preserved the Washington State Film Office and gave it $822,000 for the next two years. And they did so in such a way that the governor could not veto the program or its money.
“We never argued about it,” said state Sen. Margarita Prentice, D-Seattle, the skillful budget writer and a supporter of the office.
That rebuff marked one of the few slights delivered to the Democratic governor this past session. Though Gregoire did not criticize legislators, she and her financial team expect tangible dividends.
They want the film office to show it is integral to securing a big-time movie or television show that churns big-dollar expenditures into the economy, something that has not happened in more than two years.
“They really didn’t have the data to show a connection between their work and the decision to site locations for films in Washington,” explained Hal Spencer, spokesman for the Office of Financial Management. “They work hard and they really care. There was a feeling that the whole effort is an exercise in wheel spinning.”
The next 24 months are pivotal. The film agency, which has repelled attempts at eradication by past governors, is locked in an international competition for business. Canada and other states are luring away potential suitors with lucrative incentive deals.
Changes will be made and more state aid sought, but what will be done and how much will be requested is not yet decided.
“It’s too early,” said Peter McMillin, director of tourism and film for the Department of Community, Trade and Economic Development. “We understand what other states do. We’re asking the industry what is needed.”
The Washington State Film Office aims to convince makers of movies, TV shows, commercials and videos as well as commercial photographers that the right location for their work can be found in Washington.
There’s no dispute about the financial benefits to a community that come with the making of a blockbuster such as “Sleeping in Seattle” or hit TV series such as “Northern Exposure,” which was made in Roslyn.
Nothing like those has occurred in two years. In that time, there has been an increase in small-budget, independent films and a couple notable TV, shows, such as when “Extreme Makeover: Home Edition” came to Kitsap County.
Where major movies are concerned, it can be a brief stop. In March 2002, film crews descended upon the USS Lincoln for the shooting of a single scene for the movie “The Core.”
Direct spending by TV, film and related industries crested at $50.5 million in 2000, according to figures from the film office. In 2003, the amount dipped to $12.6 million, almost half of that coming from commercial and still photography.
What’s happened is that the industry is no longer desperately seeking locations because most can be created anywhere, including on computers. Film and television producers are focused on their costs and are looking for the best deal.
“It is clear now that industry is shopping savings, not locations,” said Suzy Kellett, the film office director. “What we need is that major incentive.”
Washington has no state income tax and offers breaks on payment of sales taxes. That’s not enough, Kellett said.
Other states and Canada are now beefing up tax breaks for the financiers of movies. Louisiana, where direct spending by the industry has totaled $83 million in the last two years, offers a tax credit for investors that can be sold or transferred to any other taxpayer of the state.
Kellett said Washington’s Legislature may be asked to support a similar type of tax break next year.
“It’s become very competitive from a cost level,” she said. “We’re not going to be Chicago, New York or L.A. You have to be in the game the way it is dealt.”
Prentice said she will listen. “If it is counterproductive to the state, I’m not going to do it. We ought to be keeping these jobs here. Why should we roll up and die and not even be competitive?”
Reporter Jerry Cornfield: (360) 352-8623 or jcornfield@heraldnet.com.
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