Fool me once, shame on me. Fool me annually and let me get my checkbook! Losses continue to mount, but some very resilient states are still willing to throw more taxpayer money at the film industry. Michigan — a state that seems to be able to generate at least one fiscal horror story per year — is one of the nation’s most consistent losers. Two years ago, it bet the state pension fund on film-related subsidies… and lost. When the “investment” failed to generate a return, nearly $2 million was removed from the already-underfunded retirement pool. One small town pinned its hopes and dreams on a film project that promised 3,000 new jobs but instead fell apart, dragging the town towards insolvency.
Michigan has made some moves in the right direction after being burned so often by Hollywood and its fleeting, mercenary “interest” in its state. It paid out nearly $100 million in subsidies in 2011, but that number has dropped to $38 million for the coming year. Michigan House Minority leader Tim Greimel is pushing to bring that back up to $50 million, claiming that the program has been a great job creator — an assertion that couldn’t be farther from the truth.