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Economy

Is Schwarzenegger's California giving millions to Hollywood?

Kevin Yamamura - The Sacramento Bee

October 18, 2009 04:30 PM

SACRAMENTO, Calif. -- Arnold Schwarzenegger accomplished little for Hollywood during his first five years as governor despite industry pleas to stop film and television crews from fleeing to states such as Louisiana.

Last year's publicized defection of the television show "Ugly Betty" to New York may have been the final straw.

Now, as state programs grapple with spending cuts, California has begun dedicating millions of dollars in tax credits toward movie and television productions in an attempt to bolster the industry.

That money was set aside in a February budget deal negotiated behind closed doors, part of an agreement between the movie-star governor and lawmakers to give hundreds of millions of dollars to the film and television companies through the tax credits and a change in how corporate taxes are calculated starting in 2011.

A Sacramento Bee analysis of Schwarzenegger's advocacy for Hollywood found that while he's long promoted the industry in official events, he hadn't delivered significant financial help until that February budget agreement.

Within weeks, two donors that own major Hollywood studios gave Schwarzenegger-affiliated campaign committees their largest contributions toward his efforts since he took office in 2003.

Read the complete story at sacbee.com

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