Steve Hilton, the Trump-endorsed candidate for California governor, joined in calls on Thursday for an unlimited state subsidy for film and TV production.
Joined by Gloria Romero, who is running for lieutenant governor, Hilton unveiled his proposal outside the shuttered Cinerama Dome, which has become a symbol of Hollywood decline.
“This is an emergency,” Hilton said, saying the industry had suffered from “benign neglect” under 16 years of Democratic Party rule in California. “We are allowing it to die, because other states in America and other countries are aggressively competing for the work and the jobs that go with it.”
Matt Mahan, the mayor of San Jose, and former Los Angeles Mayor Antonio Villaraigosa have also called for eliminating the $750 million cap on state subsidies. Like them, Hilton did not offer an estimate of how much that would cost.
“It depends on how successful we are,” he said, noting that while there would be an upfront cost, the increased incentive would also generate economic benefits. “I want to reduce spending, which means that we can reduce taxes, and this is a version of a tax cut.”
Tom Steyer, one of the leading Democratic contenders, has also proposed increasing the $750 million cap, though he has not suggested eliminating it altogether. In response to Hilton’s plan, a spokesperson for Steyer emphasized that he also strongly opposes the merger of Paramount and Warner Bros., which is expected to cost thousands of industry jobs.
“Tom’s the only candidate who will stand up to corporate monopolies and protect working people,” the spokesperson said. “Trump-backed Steve Hilton would rubber stamp mega-mergers like Warner Bros.-Paramount being pushed by MAGA billionaires.”
In an interview, Hilton presented his ties to the White House as a positive, and said he would push for a federal incentive for film production that will layer on top of state subsidies. He said he wants the combined California and federal rebate to total 60%. He has met with the Motion Picture Association, Hollywood labor unions and Jon Voight, Trump’s special ambassador to Hollywood.
“Jon actually is a friend of mine,” he said. “He endorsed me on day one of my campaign. The president’s endorsed me. You know, we’re a team.”
Hilton also wants the California incentive — currently set at 35%-40% of below-the-line costs — to include above-the-line salaries for actors, directors, writers and producers.
Among major production hubs, Georgia is the only one with an uncapped tax credit. It covers 30% of above- and below-the-line costs, and peaked at $1.3 billion in 2022, before falling to about half that amid the industrywide slump. California’s industry is larger than Georgia’s, with a production workforce about eight to 10 times bigger, according to data from the Bureau of Labor Statistics.
“We want it to be high enough that it gets attention,” Hilton said. “This is a behavioral question. What do we need to do to get people to rethink — urgently — and reconsider production in California and in Hollywood?”
As the leading Republican in the polls, Hilton is a heavy favorite to make it into the November runoff.
variety.com
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