The Rio Grande Foundation has long been critical of New Mexico’s film subsidy program, but study after study (at least when they have been objective) have found the film subsidy program to be wasteful and an economic loser.
A brand new report from New Mexico’s Legislative Finance Committee only further buttresses the Foundation’s arguments. Here are a few items from the report which summarize its findings:
- Evidence suggests film incentives are less effective at attracting private investment, cost more per job, and have a lower return on investment than other incentive programs.
- (Film subsidies) cost more than twice as much per job as the other large economic development incentives.
- Most state evaluations find film incentives have a negative fiscal ROI.
- In the next five years, film subsidies paid out could grow by 171 percent, increasing from $100.2 million in FY23 to $272.1 million by FY28.
The film program is costly and is the very worst form of corporate welfare. It is great to see the LFC saying what RGF has been arguing for more than a decade.
Image below is courtesy KRQE Channel 13.