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Lights, camera, crisis: California battles to stop film industry exodus

by Scott Snowden
May 3, 2025
in Business
Lights, camera, crisis: California battles to stop film industry exodus
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California lawmakers and industry leaders are rallying behind a new push to revive the state's struggling film and television industry, citing historic declines in production and growing concern over job losses and economic fallout across the state.

The proposed California Film and Television Jobs Act, outlined in Assembly Bill 1138 and Senate Bill 630, seeks to strengthen and modernize the state's tax credit program to keep productions, workers and small businesses anchored in California. The bills, authored by Assemblymembers Rick Chavez Zbur, Isaac Bryan and Sharon Quirk-Silva together with State Senator Ben Allen, are advancing through the Legislature with strong bipartisan support.

"California’s film and television industry is not just part of our cultural identity, it is an economic powerhouse that supports hundreds of thousands of good-paying jobs," Zbur said in a press conference held on Monday. "Without swift action, we risk losing it all."

The legislation aims to address a crisis that has escalated in recent years. Filming days in Los Angeles have dropped 22 percent compared to the same period last year, according to data from FilmLA. The number of contributions to the Motion Picture Pension Plan, seen as a key industry health indicator, also dropped by 30 percent between 2022 and 2024.

The pandemic shutdowns, the dual Hollywood strikes of 2023, wildfires and fierce competition from other states and countries have battered California’s entertainment sector. Production has increasingly shifted to states like Georgia and New York, as well as international locations offering more lucrative financial incentives.

"This is not about red carpets," said Zbur, adding, "It is about writers, grips, carpenters, crews and small businesses. It is about families who have been out of work for six, nine months or longer."

Senator Caroline Menjivar, who represents Burbank and parts of the San Fernando Valley, said the downturn has rippled through her district, which includes major studios like Warner Brothers and Disney.

"We are talking about electricians, seamstresses, caterers, hair stylists, makeup artists and lighting crews," Menjivar said. "This is an entire ecosystem that supports good jobs and local economies."

Supporters of the bills argue that the tax credits will not only keep production jobs in California but also protect the broader network of small businesses that rely on the entertainment industry. Restaurants, dry cleaners, equipment rental companies and countless other vendors depend on a steady stream of film and television projects to stay afloat.

The California Film and Television Jobs Act proposes raising the state's basic production tax credit rate to 35 percent and adding extra incentives for filming outside the Los Angeles core region. Governor Gavin Newsom has proposed expanding the program’s budget to $750 million annually, a move aimed at helping California stay competitive with other states and countries. The bills would also allocate more funds for independent productions, modify the stage credit and maintain existing "uplifts" for projects meeting certain diversity, equity and accessibility goals.

Supporters emphasized that the effort is about protecting jobs across California, not just in Los Angeles. "This is a statewide issue," Assemblymember Quirk-Silva said. "What is good for Hollywood is good for California."

During the press conference, lawmakers and industry advocates repeatedly highlighted the risk of allowing California’s signature industry to erode further, comparing it to the decline of the auto industry in Detroit.

"We do not want to look back and have California become the next Detroit," Zbur said.

Actors and production workers also added their voices to the campaign. Jason George, a longtime actor and union activist, described the entertainment industry as a fragile ecosystem.

"When an ecosystem breaks down, it does not come back," George said. "We cannot let California become a desert for entertainment jobs."

George pointed out that more than 80 percent of working actors do not qualify for union health insurance in any given year, emphasizing that the crisis is hitting middle- and working-class performers the hardest.

Others stressed that the stakes extend beyond the industry itself. Film and television production drive tourism, inspire global investment and serve as one of California’s most powerful cultural exports.

"A lot of people visit California because they have seen it on screen," said Senator Menjivar. "If productions move elsewhere, so do the tourists."

Young filmmakers and production workers from Northern California also spoke about the challenges of breaking into the industry when projects are shot in cheaper locations like Toronto, Vancouver or the United Kingdom.

"I want to tell stories about my community, where I grew up," said filmmaker Roberto Fatal, who teaches at Sacramento City College, adding, "But right now, I cannot promise my students they can stay in California and find work."

Union representatives said that the entertainment tax credit has proven to be one of the most effective tools for keeping jobs local, and warned that failure to act would lead to long-term damage.

"This is about jobs, families and entire communities," said Alex Aguilar, a business manager with LiUNA Local 724. "We need to invest in keeping opportunities here at home."

Assemblymember Isaac Bryan added that the tax credit is not a giveaway to corporations but a direct investment in workers. "There is no other tax credit in the state that goes more directly to people's pockets," Bryan said.

Both bills now move to the Assembly Revenue and Taxation Committee for further review. Lawmakers and industry leaders expressed cautious optimism that the measures would pass before the end of the legislative session.

"This is about saving the California Dream," said Assemblymember Liz Ortega. "We are not giving out pink slips. We are giving out paychecks."

With negotiations nearing completion and growing public support, backers of the California Film and Television Jobs Act hope to have the legislation finalized and passed in time to prevent further job losses and economic strain.

Tags: Up Front

Scott Snowden

Scott has been a reporter for over 25 yers, covering a diverse range of subjects from sub-atomic cold fusion physics to scuba diving off the Great Barrier Reef. He's now deeply invested in the day to day life, culture and society of Santa Monica.

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