New Report Portrays California’s Film and TV Production Environment as Uniquely Burdensome and Expensive

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As a dedicated admirer of the entertainment industry, I can’t help but notice how California’s film and TV production landscape, with its high costs and intricate complexities, seems to be deterring much-needed shoots and the jobs they generate, as per a recent report from the Milken Institute.

A New Lease of Life for Hollywood: Revitalizing California’s Entertainment Industry” portrays a production landscape struggling for renovation, especially when California is losing its long-standing identity in the entertainment sector. Factors such as a robust U.S. dollar and the competitive advantage held by countries with universal healthcare systems exacerbate this issue, leading the report to warn that the work may keep migrating unless significant changes are enacted swiftly.

The authors, Kevin Klowden and Madeleine Waddoups, advise executives and lawmakers to pay attention: “The decrease in filmed entertainment in California is not just happening but is also at a high risk of becoming permanent as workers and companies leave not only the industry but also the state,” they note.

The report published by a neutral research organization criticizes Los Angeles’s permit system, stating it is the costliest among similar cities. For instance, the application fee for a permit in L.A. is $3,724 compared to $1,000 in New York City and $540 in London (for large crews). Atlanta’s fee is even lower at $400. The authors argue that Los Angeles has more extra fees associated with using monitors, drones, helicopters, and lane closures than cities like London and Sydney, which they claim also have complex permit processes.

The high expenses associated with FilmLA, the city’s independent nonprofit film office, are due in part to its unique status as it isn’t linked to any local governments, unlike similar offices in cities like New York, London, and Atlanta whose costs may be partially subsidied. Although permit costs don’t solely dictate where productions are filmed, those in L.A. are significant enough compared to other locations that they factor into production teams’ decisions on filming destinations, according to the report.

Additionally, Klowden and Waddoups argue that California’s film credit program is overly complicated compared to similar programs in other states. They claim that the program’s restrictive three-day annual application window and the requirement for applicants to determine job creation within their projects make California less competitive with its rivals. This outdated process, they believe, was designed for the network television filming schedule of past times.

The study additionally assigns fault for California’s escalating film production to the fragmented labor agreement structure among leading unions and studios. This system involves numerous distinct contracts that regulate work for various roles and locations, which allegedly makes it more enticing for studios to manufacture projects in foreign countries, according to the authors.

Additionally, there are significant problems such as the escalating cost of living in California, which has noticeably increased following the COVID-19 pandemic. The report references data from the Consumer Price Index indicating that Los Angeles began to match New York’s costs around 2020 and statistics from Zillow showing that the average price of a home in Los Angeles ($981,000) now surpasses the average price in New York ($760,000).

As a gamer, I’ve noticed that just like in gaming where a strong character can exploit advantages to gain an edge, American production companies are leveraging a robust US dollar to boost their profits. They’re offshoring production to reap the benefits of favorable exchange rates. Plus, they save on benefit costs by setting up shop in countries with public or nationalized healthcare systems like the UK, Canada, and Australia – places that are not only popular filming locations but also offer a built-in perk for employees.

The report proposes a variety of suggestions aimed at resolving the current state of affairs; some of these proposals are currently being carried out. For example, the authors suggest that California should boost its budget for the film and television tax credit program, which Governor Gavin Newsom has put forward as an idea. If implemented, this would raise the maximum limit from $330 million to $750 million.

Klowden and Waddoups advocate for a significant increase in the base incentive rate for the tax credit, proposing it be raised from its present 20% to a minimum of 30%, with an additional 5% bonus for productions filmed outside TMZ. They further suggest that the criteria for the program should be broadened to encompass unscripted projects and television shows whose episodes run less than 40 minutes. Currently, two bills are progressing through the California legislature, aiming to implement similar changes.

As a passionate gamer, I’m always on the lookout for updates that make my gaming experience smoother and more enjoyable. Similarly, as a resident gamer in California, I’d love to see some changes proposed by the authors in our film and television industry. They aim to improve the tax incentives program, making it more accessible and enjoyable for production companies like mine.

Currently, we can only apply for credits once a year, but they want to switch to a rolling basis application system, much like how I can update my game settings anytime I want. This would make planning productions less stressful and more flexible.

They also suggest removing the need for us to calculate job creation, which is like having a complex side-quest in our production journey. Instead, they propose a review of the incentives program every four years to ensure it’s always up-to-date and relevant. Lastly, they want to increase the staff at the California Film Commission, ensuring that we get swift and efficient support, just like how game developers provide patches and updates to their games.

These changes would make the process more enjoyable and user-friendly for us, the production companies, much like how game developers aim to enhance our gaming experience.

The report proposes that local administrations reevaluate FilmLA’s autonomous setup. According to the authors, FilmLA could benefit from financial support by these authorities to lower production costs and simplify procedures. Yet, it should continue to function effectively across its wide area of jurisdiction, which encompasses locations beyond Los Angeles itself, such as Culver City, Glendale, and Santa Clarita.

The examination of Los Angeles’ permitting process has been intensified following the LA City Council passing a resolution. This resolution urges the city’s chief legislative analyst and multiple departments to investigate potential improvements. Although the resolution did not suggest a complete overhaul of FilmLA, it does encourage city departments to reevaluate the permitting process, fees, and the deployment of public safety officers.

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2025-05-28 04:54