September 22, 2009
Hollywood vs Underwood
I’m from the small town of Underwood, Iowa. Cradled into the Loess Hills, it is a typical small Iowa town, with regular, hard-working families. It’s the Iowa I know. But the Iowa that the state government knows apparently looks more like Hollywood than Underwood. Tax credits for new luxury cars? Last second deals funneling hundreds of millions of dollars to film producers? Par for the course in Des Moines these days. Here’s the story, as the Des Moines Register broke it: http://tinyurl.com/mz3hap
Truth be told, we all like to see Iowa portrayed in a positive light on the big screen. We like seeing our local artists have opportunities. It is why the Iowa Film Office exists. But there’s a time and a place, and 2009 was not it. We’re a state recovering from the second largest natural disaster in US history, and in a year with yawning structural deficits and plunging revenues plugged by $830 million of ill-advised, long-term bonds. Hollywood tax credits are a very low priority.
It’s been reported that total film tax credits now total about $300 million, with $208 million just discovered spent in May and June 2009 alone. Here’s the problem:
- Lack of oversight. They didn’t realize it was happening? Every business person in Iowa knows what would happen if they “accidentally” spent like that. They’d be unemployed. The same principle should apply in Des Moines. We need new leadership. Let’s have some basic accountability.
- Wrong Priorities. The Iowa Film Office isn’t a bad program. But when 114,000 Iowans are out of work, it is time to prioritize towns like Underwood instead of Hollywood. Get Iowans back to work by cutting taxes so that good, long-term jobs can grow in Iowa. We can only get to meaningful tax cuts when we balance the budget. That’s my priority.
- Taxpayers on the Hook: Let’s be clear, you will pay for this. $208 million in May and June will have to be made up by taxpayers. That’s you and me. Or our kids, if state government chooses another round of generational debt. Either are a terrible idea, now a stark reality.
There is an unspoken tragedy. This mismanagement makes it less likely that we will have a healthy film industry in Iowa. Let’s refocus the Iowa Film Office on films made in Iowa, by Iowans. That will not require $200 million, or even $50 million. What it will do is attract and retain creative people to Iowa for the long-term, bringing creative economy jobs into Iowa instead of funding the lifestyles of the rich and famous out in California.
That’s a common sense way to promote Iowa towns, like Underwood, over Hollywood.
