Preliminary film study finds $64.6 million gross GVA from incentivized productions; Olsberg SPI recommends reforms

Olsberg SPI presented the initial draft of a film production study to the Judiciary Committee — House and outlined preliminary findings and recommendations. The consultant said the draft includes research from interviews and an initial economic analysis; the report will undergo an "additionality" survey to remove economic deadweight and estimate net impacts before a final report.

Leon (Olsberg SPI) summarized the research: the team interviewed more than 30 stakeholders in Arkansas — including producers, business owners, supply-chain firms, training providers and legislators — and conducted additional interviews with investors considering projects in the state. He said the draft includes gross economic numbers and an initial economics pass. "We found that incentivized production had delivered $64,600,000 in total GVA for Arkansas over that time taking into into account direct indirect and induced effects and that equates to a return on investment of around $4.6," Leon said, adding that the figure is gross and may decline after the additionality work removes deadweight.

Leon told the committee the team identified one outlier production that spent far in excess of typical productions; the report breaks that out and presents totals both including and excluding that outlier to give a fuller picture. He summarized four headline recommendations contained in the draft: reform the incentive (with substantial detail in the report), link any incentive expansion to an industry development strategy, expand the Arkansas Film Commission’s capacity, and improve data collection and publication.

Senator Tucker and Regent Laderman asked for clarifications. Senator Tucker requested a brief overview and asked about the economic impact; Leon reiterated the gross GVA figure and the ongoing additionality work. Regent Laderman asked about the Arkansas Film Commission’s staffing compared with other states; Leon said the commission is "very much under resourced" relative to competitors and that states with larger incentive budgets generally maintain larger film commission staff.

President Hester asked whether there is sufficient demand for more incentives given competition from other states. Leon said the opportunity is finite and must be calibrated to a realistic ambition for the state; the report does not recommend an unbounded investment but identifies areas where Arkansas could increase production with careful strategy and resourcing.

Committee members were given the draft and told the second part of the work would take about two months; no formal committee vote was recorded on the draft itself during the meeting.