House works on trimming film incentives

-A A +A
By Associated Press

SANTA FE — Lawmakers are trying to reach a compromise with Republican Gov. Susana Martinez on a $5.4 billion state budget and a proposal to trim the state’s film incentives, House Speaker Ben Lujan said Tuesday.
Lujan said a proposal is being developed to limit the amount of subsidies provided yearly for film production in the state. There also could be new restrictions on the type of film expenditures that qualify for a tax break. The film subsidies cost the state about $65 million last year.
Money saved from film subsidy changes could be used to meet the governor’s objections to the proposed budget, which will cut state spending by about 3 percent next year.
Martinez met with House Democratic and GOP leaders earlier Tuesday and told them the budget will cut too much from public schools, Medicaid and corrections. The governor wants lawmakers to reduce the film production tax credit, which she contends would save an estimated $25 million that could be used to offset the cuts to education and health care.
“Those cuts are too deep and leaving the film subsidy alone — not good enough,” Martinez told reporters.
During her gubernatorial campaign, Martinez pledged to protect schools and Medicaid from budget cuts.