LANSING – Governor Rick Snyder said Tuesday that he will not support an immediate end to the state’s film incentive program, comments that come as the House prepares to vote on a bill eliminating the program.
The House advanced HB 4122 to Third Reading on Tuesday with a vote on the bill expected Wednesday. A floor substitute was adopted on Tuesday that would clarify any agreements already entered into would continue.
An amendment from Rep. Tom Barrett (R-Potterville) was also approved. It stipulates any leftover funding would be used to pay back the State Public Employee Retirement Systems, which invested in a film studio in Pontiac.
However, the House push on the legislation is running into some blowback. Senate Majority Leader Arlan Meekhof (R-West Olive) has criticized the bill as short-sighted, and now Snyder, while never a fan of the film incentive, has made clear it is not going away.
“I don’t view … simply turning it off as the appropriate answer,” he told reporters. “People have been relying on it and making decisions on it.”
The better move, Snyder said, is to gradually reduce the incentives over time. The program had $50 million for the 2013-14 fiscal year and started out with another $50 million for the current fiscal year, but mid-year budget cuts have reduced it to $38 million. Mr. Snyder has proposed another $50 million for the upcoming 2015-16 fiscal year, but given no indication he will fight for that funding level.
“The industry should be self-sufficient at some point in the future,” he said.
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