Milken Report Finds California Film Costs Drive Production Decline

A new Milken Institute report warns that California is rapidly losing its competitive edge as a center for film and TV production due to high costs, complex regulations, and outdated permitting systems. The report highlights that Hollywood’s in-state production has sharply declined as other states and countries offer more attractive incentives and streamlined processes. Los Angeles, in particular, charges significantly higher permit fees than other major cities, with additional costs for various production activities, making it less appealing for producers. Despite a proposed doubling of the state’s production tax credit, experts and industry veterans argue that more comprehensive reforms are needed to reverse the trend and prevent further job losses. The authors urge policymakers to take swift action, cautioning that without significant changes, California risks permanently losing its status as the home of the entertainment industry. Larger global forces, such as a strong U.S. dollar and competitors' nationalized healthcare, further exacerbate California’s challenges.