Festival Subsidies Article In T-P

[AtPontchartrain]

State's film incentive program helped bankroll music fests

[Posted by Gordon Russell, Staff writer December 08, 2007, 22:34PM]

For the past several years, thanks to a corrupt official's extremely loose interpretation of Louisiana's incentive program for the motion picture industry, state taxpayers have unwittingly doled out tax credits to New Orleans' three major music and cultural festivals at a cost likely to top $10 million.

When he was in charge of handing out tax credits, former state Film Commissioner Mark Smith decided to grant them to festival producers based on the entire price tag of an event, rather than limiting the aid to costs associated with filming the festival.
The result was a huge boon to the producers.

Overnight, without any public discussion, the state began underwriting as much as a quarter of the cost of each of the city's major annual music festivals: the Jazz & Heritage Festival, the Essence Festival and the Voodoo Music Experience.
The biggest single handout went to the 2006 Jazzfest, which received credits under the film program totaling almost $2.9 million, about 28 percent of the festival's entire price tag that year.
...more

Note..I am on a pda tonite; there is undoubtedly a better url...

http://blog.nola.com/mobilenews/

[swampwoman]

another link

http://blog.nola.com/times-picayune/2007/12/states_film_incentive_program.html

"For instance, a detailed budget submitted by Voodoo producer Stephen Rehage for his 2005 event shows a cost of $42,025 under the line item "film and video," out of a total budget of more than $1 million."

"This year for their 2007 festivals, Jazzfest was pre-certified for about $2.9 million and Essence was pre-certified for nearly $1.9 million. The credits for those festivals have not yet been awarded but are expected to be. 'We don't think it would be fair -- when they had planned and budgeted based on their precerts -- to change,' McConnell said. 'If we had an agreement, we're going to stand with our agreement.'"

[Blitzzzzz]

another link

http://blog.nola.com/times-picayune/2007/12/states_film_incentive_program.html

"For instance, a detailed budget submitted by Voodoo producer Stephen Rehage for his 2005 event shows a cost of $42,025 under the line item "film and video," out of a total budget of more than $1 million."

"This year for their 2007 festivals, Jazzfest was pre-certified for about $2.9 million and Essence was pre-certified for nearly $1.9 million. The credits for those festivals have not yet been awarded but are expected to be. 'We don't think it would be fair -- when they had planned and budgeted based on their precerts -- to change,' McConnell said. 'If we had an agreement, we're going to stand with our agreement.'"

Look out, here comes the $60 ticket at the gate in 2008!:cool:

[breambob]

I don't have any problems with the Film Commision doing this. They've brought megabucks into Shreveport, esp. post-K. But what I want to know is:

WhereTF are the videos, and WhereTF did the money really go???

Sorry, stupid questions. I need to remind myself from time to time that I live in Louisiana...

[Rossvegas]

I agree, Bob. I know that Michael Murphy produced a whole bunch of stuff for the internet a couple of years back, but I don't think it was ever commercially available. Companies like AOL and MSN seemed to benefit from it, and Louisiana has to subsidize that? I would hate to see Jazzfet lose any subsidies, but when AEG and folks like that are reaping the benefits, that ain't right...

[AtPontchartrain]

I don't have any problems with the Film Commision doing this. They've brought megabucks into Shreveport, esp. post-K. But what I want to know is:

WhereTF are the videos, and WhereTF did the money really go???

Sorry, stupid questions. I need to remind myself from time to time that I live in Louisiana...

It is hard to tell from the article, but I believe the MSN streaming (http://music.msn.com/music/neworleansjazz) may be what resulted from the tax breaks.

From the T-P article:

French said he believes the filmed segments -- some simulcast on the Internet, others airing on cable television -- have helped advertise New Orleans' charms to the rest of the world.

[festydave]

The Festival has had major webcasts for two years in a row. One year with Microsoft (post K with Bruce Springsteen et all) and last year with AT&T Blueroom. There were also specials on the food network (hosted by Chris Issac) and other shows that don't always wind up on a network on my cable service. Some others are International shows.

I'm not the answer guy on all of this but things like tax credits and sponsorships are what allow the Festival to be a world class event and sell tickets way below modern ticket prices. They don't represent reaped profits. AEG had made movies in Louisiana and suggested it to the producers.

From the article:
Quint Davis, head of Festival Productions Inc., which co-produced that year's jazz festival with AEG, said the tax credits helped "save" the festival during a rough patch. The idea was AEG's, he said.
"With that experience of having done 'Ray,' and maybe some other things here in the state, they thought maybe we could go into this and apply for the tax credits," Davis said. "They had the mechanism in place, and they knew how to do it. And we did it."

[Michelino]

I agree, Bob. I know that Michael Murphy produced a whole bunch of stuff for the internet a couple of years back, but I don't think it was ever commercially available. Companies like AOL and MSN seemed to benefit from it, and Louisiana has to subsidize that? I would hate to see Jazzfet lose any subsidies, but when AEG and folks like that are reaping the benefits, that ain't right...

In my opinion, streaming Jazz Fest 2006 to the entire earth was, in the context of the time, the best possible marketing for Louisiana, and I'll bet it sent the message that New Orleans is Alive and Kickin more than any other subsidized advertisement. That's quite a benefit, I don't how you could get a bigger payback for the money.

[AtPontchartrain]

That's quite a benefit, I don't how you could get a bigger payback for the money.

Well, they coulda kicked in another $1000 to get the Fais Do Do Cam pix working!!

[Belle]

Well, they coulda kicked in another $1000 to get the Fais Do Do Cam pix working!!


Here Here!!!! ZBONNIE You listening? Is it a time for a bump on the other thread so festydave sees it?

[swag]

Well, the libertarian in me thinks that the guvmint shouldn't be spending money on stuff like this, and especially if the money is allocated for filmmaking, it shouldn't pay for music fests.

But the jazzfest fan in me appreciates the subsidy.

If the subsidy was $2.9 million, and attendance is around 350K, that's about $8 per attendee per day that ticket prices would have to go up to cover the difference. :(

[Rossvegas]

What Swag said.

Besides, not to turn this into a soapbox, but there are a lot of dumbass dollars being spent in Washington for items and projects that impact a lot less people. Anyone remember the Pentagon's million dollar toilets? Hey, maybe AEG can subcontract Halliburton to dish out the gumbo and crawfish, and we'll all get in for free!

[swampwoman]

What Swag said.

Besides, not to turn this into a soapbox, but there are a lot of dumbass dollars being spent in Washington for items and projects that impact a lot less people. Anyone remember the Pentagon's million dollar toilets? Hey, maybe AEG can subcontract Halliburton to dish out the gumbo and crawfish, and we'll all get in for free!

its not federal tax dollars bankrolling this, its state of Louisiana tax dollars

[ibjamn]

I'd rather my tax dollars go to Jazz Fest than in a politician's pocket or to buy new hummers for the guvner's family...

[Frosty]

Well, the libertarian in me thinks that the guvmint shouldn't be spending money on stuff like this, and especially if the money is allocated for filmmaking, it shouldn't pay for music fests.

But the jazzfest fan in me appreciates the subsidy.

If the subsidy was $2.9 million, and attendance is around 350K, that's about $8 per attendee per day that ticket prices would have to go up to cover the difference. :(

And the libertarian in me yields to the capitalist in me. Investments that yield substantial returns are good investments. And without subsidizing Jazz Fest, the tourism and the economy take a hit.