The media are abuzz: another big Hollywood film company is coming to New Mexico. In fact, NBC/Universal is locating a new studio in Albuquerque. Wonderful news, right? Not really.
Because of the oil and gas surplus, New Mexico had a billion dollar surplus to spend this year and MAY have a big surplus next year. We’ll see, but that surplus could be used to do a lot to make New Mexico more business friendly, bring other less incentive-demanding businesses to our State, and simply bring more jobs here. Unfortunately, that’s not what is happening. Instead, massive subsidies are being given to Hollywood film makers that the Legislative Finance Committee said will, “cost an estimated $500 million to the General Fund over the next five years (in addition to the $250 million that would have been paid out under the existing ($50 million annual) cap.”
But IN ADDITION to receiving up to 30 cents for every dollar spent in New Mexico (thanks to newly-adopted legislation there is no cap on how much NBC Universal can receive), NBC Universal is receiving an astonishing $10.7 million in (Local Economic Development Act) LEDA money for the project. That’s $7.7 million through the State while the City of Albuquerque is pledging another $3 million from its LEDA fund to the redevelopment and production.