As the state's budget crisis continues, Sacramento certainly has money on its mind, but it's hardly star-struck when it comes to Hollywood and its problems with runaway production.
Nevertheless, "Iron Man" director Jon Favreau and Gov. Arnold Schwarzenegger have become unexpected partners in a push to create tax breaks for film and television shows in an effort to keep their production in California, a political cause that has very little traction with state lawmakers and, to the governor's chagrin, even less footing in celebrity fundraising circles.
There's been a 40% decline in the number of film production days shot on location in Los Angeles since 1997, and the stampede east by the makers of high-profile projects is intensifying after New York Gov. David Paterson signed a bill in April delivering a lush new package of incentives.
There are about 40 states that covet Hollywood business enough to offer tax breaks and rebates that can significantly reduce overall production costs for a movie or TV show. The local economy in these states benefits by hosting the productions, which spend money on labor and materials, hotels and restaurants, and a host of other things. Michigan, Mississippi and Georgia have recently put incentives into place, and New York's new program give a 30% tax rebate on a production's "below-the-line" costs -- generally, expenses not related to the cast, writer, producer, director, stunts and story rights.
Schwarzenegger said he would love to sign a similar package for California. He would also like to see politically active stars and filmmakers add runaway production to their list of causes.
"No one in Hollywood takes this seriously, but they should tell everyone that comes there, every candidate, that the fundraisers are over. . . . They should basically boycott [those candidates] until they do something on this," Schwarzenegger said. "Those candidates come and grab the money, but they don't do anything about this."
One Hollywood player who has taken up the cause is Favreau, the "Swingers" star whose stock as a director has soared now that "Iron Man" has pulled in more than $570 million worldwide. The 41-year-old actor-filmmaker, who is now developing an "Iron Man" sequel for a 2010 release, said that he has never envisioned himself as a political creature but that changed because this issue, literally, hits too close to home.
