Nebraska filmmakers have stepped up a campaign for passage of state tax incentives for their industry, meeting with Gov. Dave Heineman and state senators studying the issue.

Screenwriter-director Alexander Payne, an Omaha native who won an Oscar for his last movie, “Sideways,” led a delegation that met with the governor Friday morning in Lincoln.

“The governor started out by asking some tough questions,” said Mark Hoeger, president of the Nebraska Film Association. Heineman expressed concerns about the cost of film tax incentives while prioritizing other pressing needs such as funding for education, particularly in a time of tight budgets. Heineman has called for a special legislative session in November to cut the state budget.

But, Hoeger said, a study done for the film association by Stu Miller of Lincoln, former deputy director of the Nebraska Department of Economic Development, indicated that a carefully crafted film tax bill could return $1.08 to the state for every $1 spent on incentives. Hoeger said job creation and retention, plus an increase in tourism, could also follow passage.

Among those at the meeting were Richard Baier, director of the Department of Economic Development; Kim Conroy, deputy state tax commissioner; Larry Bare, the governor's chief of staff; and Gerry Oligmueller, the governor's top budget aide.

While Payne said those officials presented “a litany of obstacles and reasons film incentives might not work right now,” their presence indicated that they were open to learning more.

Bottom line, Hoeger said, was that all agreed the Legislature should pass film tax incentives only if they make economic sense for Nebraska.

On Monday afternoon, Payne, Hoeger and other film industry promoters met in Omaha with state senators on the Legislature's Revenue Committee, which is looking at film tax incentives. Payne said he sensed that filmmakers had some allies in the room.

“I'm not the nuts and bolts guy as far as numbers,” Payne said afterward at the home of Thompson Rogers, who hosted a Nebraska Film Association cocktail fundraiser. “But I'll be back in 15 months to make a movie in the Midwest. It's supposed to be titled ‘Nebraska.' I'd hate to have to retitle it ‘Iowa.'”

Payne said he wanted the millions of dollars generated by shooting his movie to go into the pockets of Nebraskans.

“Movies do have a lot of economic power,” Payne said, pointing to the millions of tourism dollars generated in the Santa Barbara County, Calif., wine country after “Sideways” was filmed there. “That kind of benefit can't be calculated upfront.”

Rich Lombardi, a lobbyist representing the film association, said the biggest obstacle to film tax incentives is declining state revenues brought on by the long recession.

“It's pretty standard any new initiative would bring skepticism in a time of budget cuts,” Lombardi said.

State Sen. Abbie Cornett of Omaha, chairwoman of the Legislature's Revenue Committee, said concerns raised at Monday's meeting were not new, since work on passing film tax incentives started six years ago. She said the challenge will be shaping a bill that will not negatively affect the state budget.

“We need to be careful we don't make the mistakes of states whose incentives were too broad,” Cornett said. “Other states have passed incentives that don't lose money but have become great revenue generators. We need to find the right balance.”

Hoeger said he expects follow-up meetings after the Governor's Office, state senators and others have reviewed Miller's economic-impact report.

The Governor's Office was closed Monday for Columbus Day. Calls seeking comment were not immediately returned.

Published Tuesday October 13, 2009
By Bob Fischbach
WORLD-HERALD STAFF WRITER

Contact the writer:

444-1269, bob.fischbach@owh.com
http://www.omaha.com/article/20091013/NEWS01/710139944