Senate GOP may cut film office to balance state budget
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HARRISBURG -- The Rendell administration and film companies are upset with state Senate Republicans, whose smaller proposed budget would include eliminating $517,000 for marketing Pennsylvania as a place for movies.
Attracting movies to the state "is a proven, successful program," said Mark Shade, a spokesman for the Department of Community and Economic Development.
The movie line item "is one of 17 lines items in the DCED budget that Republicans have zeroed out," he said. "It's very short-sighted.''
Republicans say that with state tax revenues falling off by as much as $3 billion this year, spending needs to be curtailed. Today they plan to unveil a $27.3 billion budget for the fiscal year that starts July 1, which is considerably less than the nearly $29 billion budget Gov. Ed Rendell has proposed.
The governor had proposed a decrease in the film marketing budget, to $392,000 in 2009-10 rather than the current $576,000.
Mr. Shade said Republicans also want to eliminate a DCED office that helps state companies increase exports, and eliminate state funds for cleaning up polluted properties.
The GOP also wants to make a reduction $250 million in state tax credits for various programs. Filmmakers fear this will include cutting $75 million in tax breaks for movie makers who make films in this state.
Filmmakers say states are very competitive in trying to land new films, and doing away with the tax credit would hurt Pennsylvania.
"The film industry has incredible competition for these incentives," said Mark McNutt, a Bucks County actor and independent film producer. "They help attract business."
The battle over budget cuts is just starting, with many more discussions due before June 30, the deadline for coming up with a 2009-10 spending package.
The Rendell administration today made what could be a significant change in its stance on new "broad-based taxes," such as the personal income tax, the state sales tax and possibly corporate taxes.
For fiscal 2009-10, Gov. Ed Rendell has proposed increases in cigarette taxes, a new tax on sales of cigars and smokeless tobacco, and a severance tax on natural gas taken from areas of Marcellus shale.
But he hasn't wanted to seek an increase in the 3.07 percent rate on the income tax or the 6 percent sales tax rate (which is 7 percent in Allegheny and Philadelphia counties).
However, with forecasts last week that the state may face a $3 billion deficit for this fiscal year, Rendell spokesman Chuck Ardo said today, "All options are on the table; we will take what steps are necessary.''
The state Senate Appropriations Committee this afternoon recommended approval of the Republican $27.3 billion spending plan for the fiscal year that starts July 1 by a 16-10 strict party vote.
The Senate, which is controlled by conservative Republicans, has Senate Hill 850, which would spend $24.6 billion in state funds plus $2.7 billion in federal stimulus funds for fiscal 2009-10. The full Senate could vote as early as Wednesday.
Senate officials are expected, later today, to list the various spending cuts they would make to get down to $24.6 billion in state spending. One area is expected to be K-12 education funding. where Mr. Rendell usually wants to spend more than Republicans.
If state funding for public education is cut, Mr. Ardo said, the Republican budget "will lead to higher property taxes" by school boards.
First Published May 4, 2009 8:54 am
