Carpenter and prop maker K.C. Bartos’ last two years have been the greatest of his 20-year career, he said, thanks to the passing of the Michigan Film Incentives Program through the state legislature.
Bartos worked on three feature films last year. “Red Dawn,” which is currently being shot in downtown Detroit, is his fourth film this year.
“Literally, I’ve made more money last year than I have in 20 years of making industrial training films for the auto industry,” Bartos said.
Bartos, who lives in Canton with his wife of 19 years and their three children, is a member of the Local 38 Stage employees Union. He was a stay-at-home dad for almost five years before finding employment because of the Michigan Incentives Program.
“It’s put a lot people to work. It’s been amazing,” Bartos said.
Bartos, 48, attended Wayne State in 1982 for a year and majored in communications. He worked with the Bonstelle Theatre but decided to opt out of college and get into industrial training films. He said he’s had more fun doing feature films these past two years, and “Red Dawn” is definitely the most action-oriented movie he’s worked on.
“It’s a lot cooler to see the big props,” Bartos said. “One of the things that I have been doing is rebuilding things for them to blow up.”
Incentives in peril
“Michigan was always a very attractive place to make the film,” said Peter Silbermann, publicist for “Red Dawn.” “For a lot of reasons: for its geography, for its climate changes, for the look of Detroit itself … for everything we needed for production.”
Silbermann said that even without the incentives, Michigan would’ve been looked at.
“[But] the incentives make it that much more appealing,” he said.
But those incentives are in peril. Almost two years ago, Michigan beat out 28 other states competing to lure Hollywood to its respective borders. Michigan lawmakers and Gov. Jennifer Granholm approved tax refunds as high as 42 percent on production costs for motion pictures shot here, according to The Detroit News. But due to a budget that’s already skyrocketing — as high as $2 billion — some lawmakers are unsure if they can continue to subsidize a projected $150 million in film-related rebates from next year’s state tax collections.
Silbermann isn’t concerned about the cuts hurting “Red Dawn” because it already has its incentives in place, but he does worry about it for the state.
“I’m not sure that the legislators and the constituents understand what it does for a community; it gives people work,” he said. “We spend a lot of money in town, we leave a lot of money here, we rent cars, we get hotels, and we eat in restaurants.
“We put a tremendous amount of Michiganders to work, and you have a very, very skilled labor force. And I would hate to see that go away from them. … It breaks my heart to see these incredible people whose source of income and stuff like that is very viable. I don’t think that should go away.”
More than $65 million was spent in 2008 in the communities where production crews worked, according to Michigan State University’s Center for Economic Analysis. Those same MSU sources projects that Michigan will see film spending raise to $188 million by 2012, creating 2,922 jobs and having a $366 million economic impact, according to The Detroit News.
Republican State Sen. Nancy Cassis of Novi argues that the state cannot afford to solicit these companies by offering to subsidize their productions, according to The Michigan Messenger. She has been one of the leading advocates for reforming Michigan’s film program. Cassis introduced legislation earlier this year to stem the amount the state spends on movies, along with requiring more detailed financial disclosure by the state film office.
“We are prepared to pass an all-cuts budget with no tax increases,” Cassis told Michigan Messenger. “If the issue of increasing taxes should come up, we are prepared to show them where the savings are.
The biggest savings is eliminating this so-called tax credit which eliminates all the tax liabilities and sends them a check from our general fund. … We could save up to $350 million by just looking at refundable credits, the biggest of which is the film credits.”
Michiganders working on the movie sets in the state have a different opinion.
“This [movie] would not be happening right now if it wasn’t for the Michigan Incentives,” said Judy Ivanyi, a set painter for “Red Dawn.” “If they lower it, it’s going to go away. They’re not here because they love Michigan. They’re here because they love Michigan’s incentive.”
Bartos echoed Ivanyi’s sentiments.
“This is a big impact on us,” he said, “on our lives.”
Michigan film industry in jeopardy
Published: Tuesday, October 20, 2009
Updated: Tuesday, October 20, 2009
 "Photo: Shawn Wright / The South End")
Shawn Wright / The South End
Film crew workers for the remake of the 1984 movie “Red Dawn” put the finishing touches on a set located at Michigan Avenue and Griswold Street.
 "Photo: Photos Shawn Wright / The South End")
Photos Shawn Wright / The South End
Prop maker K.C. Bartos, working on the set of “Red Dawn,” is concerned about the Michigan legislature cutting funding from the Michigan Film Incentives Program. “This is a big impact on us,” he said, “on our lives.”
 "Photo: Shawn Wright For the South End")
Shawn Wright For the South End
Prop makers David Brayman (left) and K.C. Bartos assemble barbed wire that will go on top of barricades for the movie “Red Dawn,” which is being filmed in downtown Detroit. The movie is a remake of the 1984 cult classic with the same title.
16 comments
All that spending generates immediate state tax revenues and then you need to figure out how many times those tourism dollars get “turned over” in our communities and create more sales tax and income tax revenues for Michigan. Take the amount of money that employees make as a result of the film crews staying in Michigan. Try to imagine the number of times that dollar gets turned from the front desk clerk to the grocery store employee to the retail store salesperson to the hair salon and so forth. For argument's sake say that each time it is spent it creates another 6% sales tax. Some states use a tourism multiplier that is in double digits. Even if you use a conservative 4 – 5 X factor, it gives you some idea of how this stimulus works using out-of-state investment dollars.
Then you can take into account the unemployment cost swing. My real life example took place a year and half ago. I unfortunately had about 15 people who worked at our hotel who we were going to have to lay off due to the drop off in corporate travel and the economy in general. Andy Meisner introduced the film incentive bill, it was passed and within 3 months all 15 of those employees were working 40 hour work weeks and we also had to hire an additional 15 employees to handle the traffic that the film crews created. Think about the cost difference between those 30 people being paid on my payroll creating income tax revenues for the State versus collecting on the State’s unemployment roster. That was just in our hotel. Then try to put a price on people’s psyche that are getting up and going to work every week, collecting a paycheck versus standing in the unemployment line because there are no options.
Chris, this is not “pie in the sky” stuff. I have witnessed how these professionals come into town, spend millions of dollars creating their product and typically leave their surroundings in better condition than they found them. Until you have witnessed the way that this brilliant piece of legislation works firsthand, it is hard to fathom. You may think that I am some star-struck Hollywood “slappy” but take my word for it; this is the most sensible use of future dollars. It creates immediate spending, which creates immediate state tax revenues, keeps businesses alive when there may not be a lot of other options, and pays for itself before the tax credit gets issued a year and half later…and rather than being a drain on our education budgets and public service payrolls, it could be part of the solution as to how to help fund them.
It's funny I did a quick google and i dont see you guys on imdb or any other related projects you guys have worked on. So if could enlighten the rest of us as to how you became such an expert on filming, as well as economics pertaining to financial impact upon a state that has incentives.
Be smart people. For your own good hope they reduce this to 30% with cap like almost everywhere else.
The Incentives are working! Beyond our wildest expectations! But some legislators are trying to kill the MFI. -- Next Monday, Oct 26: join supporters & members of Michigan’s film industry to preserve the Film Incentives: 7 PM, Crofoot Ballroom, 1 S. Saginaw, Pontiac
-- Learn the three things you can do to save the MFI -- right away, from your desk.
-- Get assignments to contact the legislators who would Kill Michigan’s Film Future.
-- Hear the long term positions of the announced candidates for Governor.
-- Network with other filmmakers. Help build a new industry here in Michigan.One of the most successful efforts to re-build the economy is in danger of terminal legislative “flip flop”. Film industry producers are sitting on their wallets watching and waiting to get a clear sign if Michigan is really going to roll back its promise and kill this new industry.Mike Manasseri of BigScreenMichigan.com “ The highly successful Michigan Film Tax Incentive is in danger of being reduced, capped, or altered in a way that would destroy the momentum that has been generated over the past 18 months in the Michigan motion picture, television, and video game industry. We need all Michigan filmmakers, supporters, artists and crew to step forward and speak up.” Dan Mc Gowan of TheCrofoot.com “We need to focus our cameras right on the legislators who are destroying Michigan’s credibility by flip flopping on film incentives. . . .” Join supporters and members of Michigan’s film industry as they rally to preserve the Film Incentives. This Rally and effort is being coordinated and sponsored by a growing coalition. Please contact us and add your name and organizations to the effort to save the Michigan Film Incentives. Email: info@bigscreenmichigan.comThe Crofoot Ballroom is located at: One South Saginaw, at Pike, Pontiac
For details please visit: www.BigScreenMichigan.com or www.thecrofoot.com
I would like to point out that the film credits are part of a stimulus package which creates not only jobs but revenues for the state in terms of sales tax dollars, income tax dollars and also diminishes the unemployment cost to the State of Michiganders who would be put back to work.
Last year, the Somerset Inn housed film crews which kept 15 of our employees working who were otherwise destined for unemployment due to the drop off in corporate travel and the economy in general. The additional business from the film production companies even required us to hire another 15 employees who worked full 40 hour work weeks. Those 30 people on my payroll instead of on the State’s unemployment payroll generated income tax dollars for the Michigan with each paycheck earned.
Mrs. Cassis talks about “unlimited handouts to Hollywood producers” and says they are getting all of our children’s educational funding dollars. The truth is they are actually spending millions of dollars in our state keeping businesses running and generating millions of dollars in sales tax revenues each year. Once all of the millions of dollars in spending have turned over or “multiplied” in our communities several times generating yet more sales tax revenues and income tax revenues for the State, then typically a year later when the production companies file their Michigan tax returns, they get a credit based on the amount they had spent and the incentives that applied to their operation. None of those companies in 2008 maximized the 42% potential.
The economist’s report which Senator Cassis refers to was commissioned by the opponents of the film credits and therefore has the slant that misrepresents the benefits of the film tax credits. There is another report which was completed by Michigan State University which has much more favorable findings and in fact, finds very positive results for the film stimulus plan. The two reports site very different numbers and quite frankly, I have a lot more faith in the integrity of the numbers from the MSU report.Our hotel community is planning to meet with Senator Cassis to hear her rationale for taking such a negative and aggressive approach against a piece of legislation that we think is brilliant. The incentives produced business that not only salvaged a lot of our area hotels in 2008 but kept area restaurants, retail and entertainment businesses’ heads above water as well.
This is a stimulus package which actually works and now we are looking to ruin it by capping and or reducing the incentive percentage. I have already been told that we might as well kill the incentive entirely if either of those changes are passed and I have to believe that is the motivation behind the “concessions” that she is proposing.Sincerely,Duane Swanson
Chairperson
Troy Hospitality Committee