
It’s always been repugnant to me that, despite his years in Hollywood, Governator Arnold Schwarzenegger has done less than zero to stop runaway production or enact incentives to lure TV shows and films back to California and even Los Angeles. (Then again, very little that this piss poor political parvenu has done in the job deserves praise, period.) Clearly, I’m not alone in my lousy opinion of him. Because I’m told that most of the Los Angeles-based crew of the ABC hit show Ugly Betty are placing a full-page ad in Friday’s Variety that begs state and Los Angeles officials to do something to keep productions local. Many in the crew are losing their jobs after Ugly Betty became the first TV series to announce it’s leaving Los Angeles just two weeks after New York passed a bunch of new new tax credits to lure more showbiz productions. A source tells me that several dozen vendors for the series are paying for the ad “because they not only appreciate us and support us, but they are losing business, too.” Yes, the ad is addressed to other officials besides Ah-nuld. And so far there’s been barely a word from LA Mayor Antonio Villaraigosa. But we all know that, in the case of California, the fish stinks from the head. And Schwarzenegger is too busy hanging around a Brentwood coffee cafe every morning enjoying his breakfast to bother with important state business like this. (And it also smells just as bad in the vicinity of IATSE’s Tommy Short, since he’s the buttboy of the studios and networks…) Here is what the ad will say:
To Whom it Should Concern
Governor Arnold Schwarzenegger, Members of the State Senate and State Assembly, Mayor Antonio Villaraigosa, the Los Angeles City Council, and the Los Angeles County Board of Supervisors:
We are writing to you because we just lost our jobs. We are the 300 plus members of the crew of the television show Ugly Betty. We were informed this Tuesday that the production of our show is moving to New York primarily because of the 35% tax incentives being offered by the state of New York. Instead of making good wages and paying our fair share of California state income tax, we will all be collecting Unemployment Benefits. In addition, we will certainly be cutting our spending back to the bone, which will not only cut back our sales tax contributions substantially, but it could end up costing the jobs of the people who provide services and products to us. Not only are these crew positions being lost; all of our local vendors are losing our business.
Our production buys: lumber, paint, wallpaper, cabinets, other building materials, office products, fabric, art supplies, computer equipment, food, beverages, flowers, film, makeup & hair products, wigs, insurance, jewelry, clothing, etc.
Our production rents: lighting equipment, sound equipment, video playback equipment, heavy machinery, office equipment, backdrops, costumes, furniture, scenery, props, soundstages, offices, parking facilities, cars, trucks, storage facilities, computers, camera equipment, grip equipment, editing equipment, drafting equipment, cell phones, computers, toilets, dumpsters, live plants, production trailers, tools, hardware, artwork, walkie talkies, etc.
Our production also uses the services of: dry cleaners, printers, location companies, Special Effects companies, utilities, caterers, payroll services, restaurants, security, Post Production Services, Clearance Houses, etc.
When we shoot on locations around Los Angeles we pay for permits; we pay homeowners & businesses for the use of their property, we hire police and fire department personnel, we pay for facility engineers, etc.
So, while the loss of our individual positions may be insignificant, the loss of this production is staggering. Now multiply this by all the other productions going to New York, New Mexico, Illinois, Louisiana, North Carolina and other states with incentives, not to mention Canada, New Zealand, Australia, Eastern Europe, etc. and the cost to the California state economy is monumental. We implore you to do everything in your power to level the playing field and bring our jobs back to California by enacting meaningful incentives to keep film and television production in our state.
Sincerely yours
The Crew of Ugly Betty
Editor-in-Chief Nikki Finke - tip her here.
We are writing to you because we just lost our jobs. We are the 300 plus members of the crew of the television show Ugly Betty. We were informed this Tuesday that the production of our show is moving to New York primarily because of the 35% tax incentives being offered by the state of New York. Instead of making good wages and paying our fair share of California state income tax, we will all be collecting Unemployment Benefits. In addition, we will certainly be cutting our spending back to the bone, which will not only cut back our sales tax contributions substantially, but it could end up costing the jobs of the people who provide services and products to us. Not only are these crew positions being lost; all of our local vendors are losing our business.






First, could it be that some of the Ugly Betty people just plain want to move to New York? It’s actually a nice place to live, once you figure out how it works.
Second, assuming this really is all about tax breaks: Sorry, but Arnold is the good guy here. He’s just trying to collect the tax revenue needed to pay for the road repairs, bridge repairs, school renovations, health insurance programs for poor people, and other stuff that those of us here who are Democrats say we think the government should provide.
The real bad guys here are the governments of New York and Vancouver — what are they doing shortchanging their own taxpayers to steal jobs from California taxpayers? — and, more important, the production executives who are nickel and diming California by moving the jobs to New York.
The production executives and production companies actually called about their viewers, they would be buckle down and pay the taxes necessary to keep their viewers alive and comfortable.
I think you’re missing the liberal irony here – Schwarzeneggar is only doing what you want Obama to do, tax the rich to the hilt. New York is offering tax cuts to rich entertainment companies so they’re leaving high-tax California. If/when Obama is president and penalizes capital and investment with higher taxes, extrapolate this situation across the entire economy.
Why aren’t you saving any scorn for the Ugly Betty production company chasing the tax cuts, or New York for poaching?
You can’t have it both ways. You do want tax cuts for big corps or you don’t? Three monts ago ABC was the devil, now your angry we are not giving them tax breaks! Is it that there are NO tax breaks for Ugly Betty, or not ENOUGH? How much do the show runners/producers/the stars/Salma Hayek make per ep and how much will they with syndication? Could they have cut back a bit to make the deal work-I wonder? So the tax payers need to pay (because it has to be made up in other ways) so Selma Hayek makes more money…thats fair!
And this coming after Schwarzenegger demanded that the production of Terminator 3 move (very expensively) from Canada to L.A. so that his campaign wouldn’t be smeared with “runaway production” allegations.
Of course, Arnold’s not on “Ugly Betty.” And he’s already in the Governor’s chair. So I guess he’s got no reason to care.
If the idiots in Sacramento were not so obsessed with global climate rumors and funding illegal immigration they might actually do what should have been done the day that ARrrrnold took office – the establishment of the California Film Industry as a State Heritage Industry, which would exempt it from state taxes altogether. How many productions do you think THAT law would bring back to sunny Southern California. There are many who live here who disparage our industry out of sheer ignorance, and their representatives are more interested in advancing bizarre social agendas, rather than providing for an environment that could bring a stunning prosperity to our state. With a huge budget deficit, compliments of a huge state government,you would think they would do almost anything to benefit a predominantly liberal establishment like the film industry, and enrich its inhabitants. Alas – no. What the socialist California legislature really wants is to make the State government the largest industry, and they are almost there. The Governor is either asleep, or inept or intentionally destroying us. Your guess is as good as mine. What an ingrate.
Calif is a very governmentally liberal state, after all, perhaps even more so — believe it or not — than New York. For example, there was an article a few months ago that described how, due in part to very strict pro-labor laws in CA, it’s even more expensive for restauranteurs to operate their business here than in NYC.
So due to the brilliant voters of the Golden State electing a whole raft of very, very liberal politicians to run things in Sacramento, the idea of lowering fees and taxes is not exactly a popular idea. Raising fees and taxes, yes. Lowering them, no.
Whenever some studio moves production to a state that throws a trinket like a tax break, I am reminded of what the state of Iowa did for a film producer. The state gave a way a tax break equivalent to 50% of the production cost to film a movie entitled…South Dakota. South Dakota thanks Iowa for the free publicity and for shouldering the inconveniences associated with film-making. Much like the read Deadwood, SD, thanks the locale that hosted the HBO series of the same name.
Schwarzenegger should simply mention this episode and ignore the letter. If the setting for Ugly Betty is supposed to be NYC, why should California give tax subsides for something that essentially promotes some other locale?
Forget about all the strike stuff, this is the real battle right here. Keep the production jobs in California! You can’t spend decades building up a specific industry and talent pool and then suddenly pull the rug out from under everything.
The trickle-down is devastating. (Trickle-down isn’t even the right term.) It’s a thunderstorm.
Jane- get real. Who are you kidding?
when a star gets 20 million a picture with the odd Lear jet thrown in, does anyone really believe they have an understanding that those who make them look good need to have their industry protected?… please!… Arnold has made his money he doesn’t have to help the California film industry…
California was a mess before Arnold. Way worse then it is now. If you want to blame Arnold for anything, how about all the money he is taking away from the public schools he said he never would. Stop whining. I worked in production, and although it sucks to be laid off, you will all land great jobs. Think about the children and the lack of classroom attention they will get when the classrooms have 45 children in them. Let’s see, entertainment or education? I have to side with education.
OKAY Liberals, you can’t have it both ways. You can’t tax the hell out of business to pay for who knows what AND expect business to sit there and take it. The Democrats you elect are the ones responsible for making the business climate difficult for industry. The schools get the lions share of the state budget and turns mediocre employees and future prisoners.
What? Lower taxes in California? Not going to happen.We need to fund all our pet projects.
The crew should move with the show. What a perfect opportunity to get out of that second-rate town! LA SUX!!!!
You guys are babies!!! This has been happening in NY for years and years, so I’m supposed to feel sorry for hollywood. It DOES matter where you shoot, if “Sex and the City” shot in LA it wouldn’t have half of it’s magic. NY is a character all of it’s own. I’m happy I won’t hav to see anymore horrible NY backlot shots, because they’re atrocious!!!
After working in production in Los Angeles for over 10 years, I am finally moving. Over the last 4 years, I have actually only been in LA for a total of 4 months. Every show I have done has been on location. Not because of a design concept or because the show is scripted for a different city. Simply because of REBATES.
I wish I could say I was going to miss California.
Stop yer bloody WHINING “Ugly Betty” crew. Layoffs are part of the biz when you’re freelance (aka “well paid)crew and each and every one of you CHOSE to take freelance jobs (because they pay more) rather than do the 9 to 5 white collar/blue collar much more secure routine 90% of the country does. Shows come and go. The movie and TV production biz is international…it goes where it’s cheaper. Why would I buy a $100 bottle of wine if the same bottle is $70 down the street?? I wouldn’t. And let’s put this in perspective…50 years ago, ALL Studio movies and most TV (except those shot in NYC) shot in Hollywood. Yes you’ve lost shows to other states and countries but you probably still retain 85 percent of a much bigger pie than 50 years ago (with the advent of 100 cable channels, 4th and 5th networks, direct to DVD flicks and far more movies and TV shows being made and released today than 50 years ago). The fact that you seem to think ALL TV and movies should still shoot in LA comes across as a hugely spoiled “sense of entitlement” and just plain greedy.
The reason politicos in California shy away from Tax breaks for the biz is…the “business” part of show biz is still centered in LA and is perceived by most non industry types and hugely flush with cash (just read “Variety” or the LA Times Calender section any given day to see the huge money deals happening). If you’re a politician pushing for “public money handouts” (aka “tax breaks”) to a RICH RICH industry seemingly with cash to burn (the “glamor/star” bling encrusted element of the biz that is also centered around LA doesn’t help this public perception of the industry, whether true or not)isn’t going to sit well with a laid off dock worker in San Pedro or the single mom holding down 2 clerical jobs to make ends meet come election time.
You want shows to stay in LA…simple…CUT YOUR RATES!…the era of the key grip or the gaffer with the million dollar home is about over (especially in this real estate market..)..The studios pay serious dollars for stars, cool salable concepts/scripts, eye candy CGI effects and, to a lesser extent, “star” directors because those elements bring people to theaters. That what brought em in en masse to “Iron Man” (which WAS shot in LA but could have just as easily shot in Toronto or Sydney, like the upcoming “Hulk” redo and “Superman Returns” did) Yes, behind the scenes technical crew are VITAL to getting shows done but there are now good crews all over the world and once a crew has reached a certain level of excellence, the audience won’t know (or care) if the movie shot in LA or Australia. The studios, however, will see the 8 or 10 million dollar savings differential on a mega$picture and LIKE the idea of Sydney or Toronto. This is the new world order of the film biz…Get over it and get used to it. Adapt or die said Darwin then and it still applies now.
“Perhaps the millionaires who run the studio’s and the over paid stars could take a pay cut and help out the lower paid cast of these shows” – Jane, May 8, 2008
Jane you ignorant slut.
This issue is not about cast pay but studio decisions to save money by moving production that affects CREW JOBS!
The actors on the show will still be working in NYC.
Pay attention to the issue/topic please.
Nikki,
The pilot for “Ugly Betty” was filmed in New York, and then the show moved to LA. No one complained.
The pilot for “3 Pounds” was filmed in LA and the show moved to New York. No one complained.
Shows move. Get over it.
I also think it’s unfair to attack Tom Short as he represents the IA technicians in New York also.
Real simple. Want production in CA, then keep the costs in check. This is a business where we pay people $400 a day to stand at a snack table. Granted, I do think Arnold could show more leadership and have a stronger public/private partnership in the industry, just as they do in other sectors. Arnold is part of the solution, NOT part of the problem.
reelbusy,
while you are calling Jane an ignorant slut…
you fail to realize that just like the show will continue to employ actors in NYC it will also employ crew in NYC! The move isn’t to cut crew, it is to take advantage of the tax incentives. The show will employ the same number of people of NYC as it did in LA.
L.A. is a mess. Such slimy ineffective government, from Schwarzenegger (who may be sticking it to the entertainment industry because he is finished in movies, and because most of the industry doesn’t support him politically,) to the smarmy ineffective Villaraigosa who is turning L.A. into little Tiajuana and is part of that circle jerk of hideous councilman Jack Weiss and LAPD’s Bratton, and who hasn’t done a single good thing for this city and was too busy screwing around with that anchorwoman, to the likes of arrogant Jack Weiss whose nose is up in the air when it comes to doing his job and serving constituents with the quotidian aspects of his job and who sold out L.A. to real estate developers. Let’s not even get into Sheriff Baca and his celebrity antics. These guys have no interest in their current job, but are more concerned with their own ambitions and getting their next job – Villaraigosa still thinks he’s going to be Governor, Weiss thinks he’s going to be City Attorney, Scwarzenegger thinks he’s going to be President.
How are we any better off than with Gray Davis? We’re in budgetary crisis, Schwarzenegger ended up hiking the car tax anyway (which is the issue that booted Gray Davis and got Schwarzenegger elected.)
Arnold recently held a meeting a photo-op with NY Mayor Bloomberg – I wouldn’t be surprised if the two agreed on moving productions to NYC. Bloomberg acts, Arnold reacts.
Would somebody here please get a dictionary or take a civics or economics class? Tax incentives are not tax cuts. They are akin to depletion of oil resource allowances, farm price supports, or manufacturing subsidies; i.e., a way to encourage continued investment in a market without penalizing profits. Production tax breaks are supposed to accrue to the budget of the film, not the general operating overhead of the producing entity (if they do, it’s a matter of funny bookkeeping and possible fraud, not legislative intent). In a truly Capitalist society none of this would be needed, of course, but we have so many tarriffs, trade deals, give-backs and tax loopholes in place that a free market doesn’t really exist. Capitalism is great! Let’s try it some time!
In California does the governor have the authority to lower taxes all by himself?
Shouldn’t most of these complaints be directed at the State Legislature?