News Summary

Hundreds gathered in Sun Valley for the ‘Stay in L.A.’ event, advocating for increased tax incentives to support California’s struggling film and television industry. Attendees highlighted a concerning decline in production jobs and urged support for Governor Newsom’s proposal to raise incentives from $330 million to $750 million annually. The event aimed to unite industry workers and labor leaders to stress the importance of local productions and maintain California’s status as a global entertainment hub.

California – Hundreds of film and television industry supporters gathered in Sun Valley for the “Stay in L.A.” event, where they advocated for expanded tax incentives aimed at revitalizing production jobs in California. The rally highlighted the pressing concerns of labor leaders, policymakers, and industry workers whose livelihoods have been significantly impacted by a decline in production work.

Attendees shared personal stories illustrating the challenges faced due to decreased production opportunities, underscoring the vital roles played by working-class and middle-class creatives and crew members in the entertainment sector. The primary aim of the event was to rally support for California Governor Gavin Newsom’s budget proposal, which seeks to increase the state’s film and television production incentives from $330 million to $750 million annually.

Under the proposed legislation, the film and television credit would rise to 35% and broaden eligibility to include animated productions, large-scale competition shows, and shorter television series. Advocates voiced the necessity of remaining competitive within the industry, emphasizing that without these incentives, future productions may look to other states or countries.

Economic Implications of Fading Production Jobs

Recent reports indicate a troubling 22% decline in on-location production in California during the first quarter of 2024, with television production experiencing an even steeper 58% decrease over the past three years. As state lawmakers in L.A. work to counteract these trends, they are considering measures such as streamlining film permits and enhancing existing tax credits to help retain vital production jobs within the state.

California currently offers tax credits ranging from 20% to 25%. Advocates for the proposed changes argue that raising these credits would not only support the film industry but would also generate significant economic returns for California’s economy, affecting sectors such as tourism and small businesses linked to entertainment. Over 100,000 letters of support have been sent to state lawmakers from concerned citizens advocating for the proposed incentives.

Connecting the Dots: Community and Economy

The “Stay in L.A.” movement originated as part of recovery efforts following the Pacific Palisades and Altadena fires, focusing on promoting local productions to keep jobs in the region. Key leaders from the movement have also reached out to major studios, seeking commitments for set production to remain in Los Angeles. However, responses remain notably absent from these studios.

Supporters at the event highlighted the significance of various crew roles, including grips, costumers, and drivers, who play crucial yet often overlooked roles in the film and television sectors. This concerted push for expanded tax incentives reflects a broader concern about the long-term viability of California’s film and television industry and the risk of losing its status as a leading global entertainment hub.

Political Landscape and Challenges

The proposed legislation has moved forward in the California legislature but still faces challenges, particularly from politicians outside entertainment-centric areas. Critics have raised questions about the efficacy of tax credits and their overall impact on California’s economy, while supporters maintain that the economic benefits can outweigh these concerns.

The debate surrounding the incentives highlights concerns regarding California’s overall economic outlook and funding priorities. As the industry leaders stressed, failure to address declining production jobs could jeopardize Hollywood’s future, drawing comparisons to the economic downturn experienced by Detroit.

The event culminated in a call to action, urging attendees to contact their elected representatives to express support for the tax credit proposals. With the stakes high for the future of the film and television industry in California, the voices from the “Stay in L.A.” event underscore the urgency to act decisively to sustain production jobs and the cultural identity they promote.