Giving incentive to Michigan

Gov. Rick Snyder ran on a business-based platform and was transparent about how he would handle the budget. He promised to attempt to present a balanced budget and has taken a step toward that.

There has been much uproar about the proposed abolishment of the Michigan Film Incentive, which currently gives companies a 40 percent refund of all qualified production expenditures in Michigan.

Where is the outrage for a planned 15 percent cut to state university funding that should at least match what is being said about the ending of the film incentive?

The incentive has undoubtedly brought jobs, economic benefit and a renewed sense of identity to the state — the metro Detroit region in particular — but it is a temporary solution to an ongoing problem.

We understand the support behind the incentive. There is proof positive in the amount of production companies that have chosen Michigan as a shooting location and the numerous schools who now teach film-related skills like acting and production.

There’s also the financial benefit that comes with more people supporting local businesses, but the fact of the matter is the film industry is a fleeting notion for the state and its economy. The state would have to continue competing with other locations’ more lucrative offers or landscapes.

It’s a shame that so much has been invested into the local movie industry, but it’s beneficial to stop pouring resources into something without  much permanency.

We built something up that will be gone almost instantly — big-budget films like The Avengers have already made plans to pull out of the state because of the announcement — and it would have been gone in the same fleeting manner even if the plug were pulled on the incentive later.

That’s not to say we don’t support the film industry. We just believe there are other proposed cuts that would hurt more.

Proposed cuts to higher education funding impact the region in a much more tangible way than a brush with fame or an economic stimulus idea that has a limited lifespan.

It affects the education of students studying to enter a diversified range of job markets that do not solely depend on the viability of the Michigan film industry.

Despite having the largest incentive for filming since 2008, Michigan has not seen the huge increase that distinction should bring.  The Michigan Film Office reports 128 projects have been completed in Michigan.

In comparison, New Mexico and its 25 percent tax rebate —where the aforementioned Avengers project is filming — has seen about 80 projects in the same time frame. Even though it gives the biggest incentive, Michigan still isn’t attracting every film.

While the film incentive does bring creativity into play,  there are more permanent ways to nurture a creative class.

In his recent state of the campus address,  President Gary Russi noted that a strong core of liberal and fine arts programs will give an edge to graduates. Universities are aware of the rising creative class.

It’s time to start thinking of long-term solutions that have an impact on business and economy — to diversify the industries and opportunities available.

There is not just a singular creative industry that will create Michigan’s future. Creating an inviting atmosphere for thinkers from all industries with innovative ideas for the state’s economic growth will begin with the continued support of higher education.