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Preliminary film production study: incentivized production delivered about $64.6 million in GVA; final report due in about two months
Summary
Consultants presented a preliminary film production study finding that incentivized productions have delivered about $64.6 million in gross value added to Arkansas between FY2014 and FY2025 and offered recommendations including incentive reform and expanding the Arkansas Film Commission.
Marty Garrity of the Bureau of Legislative Research introduced a preliminary report from consultants who conducted a film production study in Arkansas. The consultants said their first draft includes findings from interviews with more than 30 industry participants, supply‑chain actors, training providers, legislators and filmmakers, and an initial economic analysis of production activity that used the state's incentives between fiscal year 2014 and fiscal year 2025.
A consultant identified in the transcript as Leon (with Mira also on the team) summarized the preliminary economic findings: incentivized production delivered $64,600,000 in total gross value added (GVA) to Arkansas over the period examined, taking into account direct, indirect and induced effects. The consultant said that figure is a gross number and that an additionality survey is under way to remove economic deadweight and estimate a net impact; "we don't expect the numbers to change very much," the consultant said. The consultant also noted that one outlier production spent far in excess of typical productions and that the report breaks out that production separately.
The consultants offered four headline recommendations in the preliminary report: reform the incentive, link any incentive expansion to an industry development strategy, expand the Arkansas Film Commission's capacity, and improve data collection and publication. Questions from committee members focused on the film commission's staffing and how the incentives compare with neighboring or competing states; the consultants said Arkansas' film commission is under-resourced compared with some competitors and that states with larger incentive budgets typically maintain larger staff functions in their film commissions.
Senator Tucker asked for a brief overview, and the consultants said the final analytical step (additionality work) would take about two months. The preliminary report and recommendations will be further reviewed by the committee as the consultants complete the additional analysis to estimate net impacts.
