Las Cruces the latest to see taxpayer-funded film studio (to serve dying industry)

New Mexico’s politicians will do anything to prop up the failing film industry. Hollywood already gets reimbursed up to 40 cents on the dollar by New Mexico taxpayers. Despite that the industry’s annual “spend” has plummeted from $855.4 million in FY 2022 to $327 million in FY 2026.

Santa Fe Studios which were built with taxpayer dollars remains on the market as it has been for over a year. 

But the State keeps shoveling money into new taxpayer-funded studios and training facilities even as the industry struggles. CNM in Albuquerque just opened a $73 million film school. Now, the State is building a $18.9 million film school. The project received $15 million from the State and is under construction, but as seems to be the case nowadays there were cost overruns so NMSU, the County, and City of Las Cruces all put an additional $1.3 million in to complete the facility. 

New Mexico continues to spend massive amounts of money on a dying film industry. You’d think picking up 40% of the tab would be enough, but it apparently is not. We now “need” taxpayer subsidized facilities, training centers, and perhaps even a federal film tax credit on top of it all.  Those dollars should be returned to the people and businesses of New Mexico, not a live illustration of the “sunk cost fallacy.”