For more than 40 years, Every Texan has produced quality data to advocate for public policy for better access to quality health care, food security, education, and good jobs for all Texans. SB 22 would create a new fund for the Texas Moving Image Industry Incentive Program (TMIIIP) with an automatic, recurring appropriation of $500 million every biennium. We appreciate the contributions the entertainment industry makes to the Texas economy, but we do not believe the industry needs this level of direct investment by the state. We oppose this bill for three reasons:
- The program is too expensive. Half a billion dollars each biennium–without reconsideration by the Legislature for 10 years–is a lot of money. It would be better invested in our public education, health care, infrastructure, or our workforce. The Texas Film Commission promises astronomical return on this investment. But numerous academic studies on film incentive programs across the country suggest such claims are highly exaggerated. Unbiased research into such programs indicates that ROIs are sometimes as little as pennies on the dollar. Even the highly touted (and very expensive) Georgia film incentive program was projected to induce only 19 cents of economic activity in fiscal 2024 for every dollar invested.
- The Texas-based worker threshold is too low. Just a few years ago, the program required 70% of workers hired on incentivized projects to be Texas-based. This bill would initially drop that requirement to 35%. At that rate, much of this investment will go to out-of-state workers. To build a sustainable, home-grown film industry workforce in Texas, that threshold must be higher.
- It gives the governor’s office too much power. The bills give the governor’s office the authority not only to approve projects to be funded, but to influence the content. The supposed purpose of this fund is to incentivize the film industry. The state should not use half a billion dollars of taxpayer money each biennium to promote the governor’s political agenda.