Film Flight: Lost Production and Its Economic Impact on California
 California has lost a total of 10,600 entertainment industry jobs and 25,500 ripple effect jobs.
The entertainment industry, one of California's leading economic engines, has been leaking jobs to other, more aggressive locations. And unless California takes steps to reverse the trend, this once-vital industry could go the way of the aerospace business.
California has lost 36,000 total jobs, $2.4 billion in wages and $4.2 billion in total economic output. Those benefits would still be here boosting the economy if the state had been able to maintain the share of industry employment it enjoyed in 1997. Instead, these jobs have been going to places like New York, Vancouver, and even New Mexico, Louisiana and Georgia.
The Milken Institute's California Center today released an in-depth analysis of the issue with potential solutions.
Insights from Film Flight: 
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| The number of movies either wholly or partially filmed in California has fallen sharply, from 272 in 2000 to 160 in 2008. |
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| California's share of North American employment in the industry has declined from 40 percent in 1997 to 37.4 percent in 2008. |
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| For every job created in California's film sector, another 2.5 jobs are created in other sectors. |
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| California implemented a tax credit for film production in 2009. There are early signs it is having a positive effect, though it is more restrictive than other states' programs and specifically excludes big-budget films that have the potential to generate greater local spending. |
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The report makes a series of recommendations on how to turn the tide, including:
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| Design a two-tier film incentive program, with one set of benefits to engage big-budget studio films that are not covered under the current incentive program, and another to attract smaller independent productions |
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| Implement a new digital media tax credit to attract and retain developers of digital animation, visual effects and video games |
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| Make tax incentive programs permanent, signaling long-term commitment |
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More insights and solutions are in the full report.
This report is part of the ongoing work of the Milken Institute California Center, which is dedicated to measuring, evaluating and analyzing the state's economic, demographic and social conditions and trends.
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