House Cuts $25M State Film Subsidies in Proposed Budget – Not So Fast Say’s Richardville

Film Subsidies Scam the Scheme and the Players

The Republican lead House finally has done the right thing with these “failed” subsidies but Senate Majority leader Randy Richardville the Hollywood Fat Cat’s poison pill in the Senate to protect this taxpayer giveaway say’s not so fast!

http://www.freep.com/article/20130424/ENT01/304240129/michigan-film-incentives-budget

The taxpayers in Michigan have already suffered a huge loss from these subsidies including having to pony up for the “failed” Raleigh Film Studio in Pontiac. Raleigh Film Studios have missed several bond payments and now the states under funded state pension fund had to cover these payments.

http://taxfoundation.org/blog/michigan-subsidized-film-studio-fails-state-pension-fund-had-guaranteed-loan 

I’m sure that his daughter who is employed by these Hollywood Fat Cat’s along with the deal he cut according to an MIRS interview with Mr. Richardville to do a movie series or pilot on his time in the legislature has absolutely nothing to do with him wanting to keep this scheme going! Can you say conflict of interest?

In the article Richardville has the gall to use “Tax Happy” Illinois Governor Pat Quinn as an example of why we should keep these subsidies! Really? Didn’t Illinois just raise their states taxes through the roof forcing some residents and businesses to flee to neighboring states for tax relief? Illinois Governor Pat Quinn is a Democrat!!!

Senator Richardville’s past legislative actions by introducing and or sponsoring subsidies favoring private business interest that does not benefit all the citizens of Michigan is unconscionable. How in the world could his colleagues in the Senate continue to support his “failed” leadership? Does he have something on them? 

Raleigh Michigan Studio Partners

Linden Nelson CEO of Raleigh Michigan Studios
The brain child of Michigan’s film credits is businessman and Democratic Party power broker Linden Nelson.

Nelson came up with the idea of film credits after getting to know then White House Chief of Staff Rahm Emanuel as a result of contributing tens of thousands of dollars to the National Democratic Party and meeting Rahm at various DC political fundraisers.

Alfred Taubman of Taubman Centers Inc. real estate

John Rakolta Jr:  Rakolta is President of Walbridge, an international construction firm based in Detroit. His company built the Studio.

Ari Emanuel:  CEO of William Morris Endeavor Entertainment and a partner in the Pontiac film studio.  He is also the brother of former White House Chief of Staff Rahm Emanuel

Although the partners in the studio deal included one billionaire — Al Taubman and three multi millionaires — John Rakolta, Linden Nelson and Ari Emanuel — they preferred to have the taxpayers pay for the studio and incur any risks.

Since the movie credits and government funding for the studio were a product of an agreement between Governor Granholm and Rahm Emanuel — both of whom would soon occupy different roles — the deal had to include a “poison pill” such that any future governor would think twice about getting rid of the film credits and studio funding.

It means the taxpayer is on the hook for $18 million if the studio closes down. Former Governor Granhom and lawmakers put at risk $18 million in the State Employees Retirement System as a political payback.

Red Carpet Rolled Out for Randy Richardville
Michigan Senate Majority Leader Randy Richardville has been lobbied very hard by Nelson, Rakolta and the other partners.

Richardville attended the Emmy’s on a trip arranged by Linden Nelson. He also went to a Red Wings game with Nelson in March.

While the majority of Republican legislators oppose further funding of the film credits and are outraged by the way the studio was funded with taxpayer money, Richardville is susceptible to “wooing” and is behind the scenes trying to help Nelson and this Gang rape the taxpayers of Michigan.

House Republicans Plan Shifts Film Tax Money to Road Repairs
The Republican-controlled state House wants to eliminate tax incentives for making movies in Michigan so the money can be shifted to repairing roads.
http://www.detroitnews.com/article/20130425/POLITICS02/304250371/1409/metro/Michigan-House-plan-shifts-film-tax-money-road-repairs

This all stated under Jennifer Granholm in 2008 with Senate Majority leader Randy Richardville onboard from the onset. Once Jenny left office ‘ole Randy keep it alive and well also introducing new legislation as to keep this scheme going. Jenny got her reward with the Current TV show The War Room with Jennifer Granholm as payment made for services rendered and it looks as though Richardville is looking for a similar payoff at the taxpayers expense!

2008 House Bill 5841: Give subsidies for Michigan film production (Senate Roll Call 160)
http://www.michiganvotes.org/RollCall.aspx?ID=271640

2008 film subsidies articles by CAPCON
http://www.michigancapitolconfidential.com/features/search/?site=MCC&text=2008+film+subsidies&x=8&y=7

2011 Senate Bill 383: Retain state film subsidy program Public Act 77 of 2011
Introduced by Sen. Mike Kowall (R) on May 12, 2011, to empower the state government film office to grant smaller tax break/subsidies less than the 42 percent of a producer’s Michigan expenses currently authorized by the state’s unlimited film subsidy program. The program will be replaced next year by $25 million appropriated by the Legislature to hand out to film producers. 
http://michiganvotes.org/2011-SB-383

Above Bill Sponsors
Michael Kowall – (primary)Virgil Smith, Steven Bieda, Jack Brandenburg, Thomas Casperson, John Gleason, David Hildenbrand, Tupac Hunter, Bert Johnson, Roger Kahn, James Marleau, Arlan Meekhof, John Pappageorge, Phillip Pavlov, Randy Richardville

2011 Senate Bill 569: Revise film subsidies Public Act 291 of 2011
Introduced by Sen. Randy Richardville (R) on July 13, 2011, to revise the state film incentive program, converting it into a straightforward subsidy program rather than an indirect one, with awards of up to 30 percent of the expenses a film producer incurs in Michigan. Reportedly the bill’s sponsor wants to increase the subsidies from $25 million already appropriated in 2012 to $100 million annually.
http://michiganvotes.org/2011-SB-569

Sources:
http://michiganfilmcreditsecrets.blogspot.com/

Michigan Film Subsidies: Two Years, $117m — and No Film Job Growth
https://www.educationreport.org/13148

Do ‘Stealthy’ Michigan Senators Want to Spend $100 Million on Film Subsidies?
Facebook post insists: Michigan senator ‘wishes to keep this process quiet and very stealth!’
https://www.educationreport.org/15218

Michigan movie studio defaults on bond payment, state pension funds to cover costs
http://michiganradio.org/post/michigan-movie-studio-defaults-bond-payment-state-pension-funds-cover-costs

GOP Budget Spends More on Film Subsidies
Picking Hollywood over taxpayers
http://www.michigancapitolconfidential.com/16977

Cut! When film credits dried up, so did Raleigh’s payments
http://www.crainsdetroit.com/article/20120304/FREE/303049967/cut-when-film-credits-dried-up-so-did-raleighs-payments#

The Movie Flop That Sank a Michigan Town
http://www.businessweek.com/articles/2012-08-23/the-movie-flop-that-sank-a-michigan-town

Lawmakers weigh 38 Studios debt default
http://www.businessweek.com/ap/2013-04-10/ri-lawmakers-weigh-38-studios-debt-default

Hollywood Transforms Itself to Milk Multiple States for Movie Money
http://www.michigancapitolconfidential.com/18442

Five Reasons Government Subsidies for Films Are a Bad Idea
Politicians help Big Hollywood soak taxpayers for few benefits, much harm
http://www.michigancapitolconfidential.com/18456

Lawmakers exchange bad policy for Hollywood glitz
http://www.michigancapitolconfidential.com/18410

Cost to Replace Lost Jobs with Michigan Film Subsidies: $39.4 Billion
http://www.michigancapitolconfidential.com/14643

Michigan Backs Financial Scheme of Convicted Felon & Now Taxpayers on the Hook for $18 Million
http://www.a2politico.com/2012/02/michigan-backs-financial-scheme-of-convicted-felon-now-taxpayers-on-the-hook-for-18-million/

Michigan Pensions Cover Missed Bond Payment for Film Studio
http://news.heartland.org/newspaper-article/2012/02/02/michigan-pensions-cover-missed-bond-payment-film-studio

Michigan Town Woos Hollywood, but Ends Up with a Bit Part
http://www.nytimes.com/2012/12/04/us/when-hollywood-comes-to-town.html?pagewanted=all&_r=1&

Special Tax Perks for Filmmakers
http://www.michigancapitolconfidential.com/12953

Analysis: Lawmakers Fail to Answer Questions about Film Subsidy Transparency
http://www.michigancapitolconfidential.com/12954

E-mails Reveal That Film Office Chief Agrees with Criticisms of Embattled Studio Project
http://www.michigancapitolconfidential.com/12977

Film Subsidies Scam the Losers “We the Taxpayers”

https://bainreport.wordpress.com/2013/03/08/film-subsidies-scam-the-losers-we-the-taxpayers-how-it-works-and-the-history/

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  1. #1 by SovereignMary on April 27, 2013 - 8:39 am

    Some Republicans protecting Big Hollywood corporate welfare – By Jarrett Skorup | April 25, 2013
    “House Republicans have passed a budget, part of which would end the Michigan film subsidy program and strip down some corporate welfare programs to devote that money toward road funding. This is good news for the state…..
    ……But the fight is not over. The Republican-dominated Senate and other members in the House have been big backers of the film program, even pushing to have it expanded.
    -The Detroit Free Press called SENATE MAJORITY LEADER RANDY RICHARDVILLE, R-Monroe, “ONE OF THE BIGGEST FANS OF THE FILM INCENTIVE.” [my emphasis – Mary]
    “It didn’t get killed. It just got wounded, and I plan a full resurrection,” he was quoted as saying in the Free Press. “It’s a very, very important thing for the state of Michigan.”
    The film subsidies are an inefficient and unnecessary waste of public dollars. There are no more film jobs in Michigan today than in the years before the subsidy.”
    http://www.michigancapitolconfidential.com/18564

  2. #2 by rabman13 on April 27, 2013 - 9:50 am

    Thanks for the comment and link more Michigan citizens should stand up against these so-called Republicans and this type of bad legislative subsidies that cost the taxpayers with no benefit!

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