Culver counterpunch on Film Office flap

“Iowans will not be taken for suckers.” — Governor Chet Culver, September 22, 2009.

Governor Chet Culver made a statement today at a news conference in Cedar Rapids which put film industry folks on notice: don’t blame the film office flap for your failure to pay your workers. Culver read his statement during a news conference in Cedar Rapids after he and a top FEMA administrator had toured flood recovery efforts. Culver advised the media throng he had a statement to read, then added to the rest of the crowd: “If people need to move to the next flood related event, they can.” That got a few chuckles, then Culver started reading. Read Culver’s statement below.

CEDAR RAPIDS – Governor Chet Culver made the following statement today about developments at the Iowa Film Office and the Iowa Department of Economic Development during a stop in Cedar Rapids:

“When information was first brought to my attention last week about Iowa’s film tax credit program, I was troubled. But as we began our investigation into this program, and more information has come to light, frankly, I am outraged – not only that a program involving millions of Iowa tax dollars was so mismanaged but that some companies were taking advantage of this situation.

“This problem first came to my attention last week when I was traveling on Tuesday with former director Tramontina. At that time, I asked him to prepare for me a memo outlining problems with the program. And, after receiving that memo, I took immediate steps to protect the taxpayers of Iowa.

“On Friday, I froze state funding for this program until all questions have been resolved and adequate oversight has been resumed. That same day, I accepted the resignation of the director of the Department of Economic Development.

“Yesterday, I asked Attorney General Miller and Auditor Vaudt to help review the film tax credit program and to provide advice and recommendations on how best to proceed with the program. At the same time, we have dismissed the manager of the film office and accepted the resignation of the deputy director of the Department of Economic Development.

“These actions are intended to protect the best interest of Iowans, and not to harm the growing film and television industry in our state. This program should continue only after we have the controls, oversight, and due diligence in place to assure that it operates properly.

“But, while there were clearly not the controls and oversight in place at the Iowa Film Office, we need to make sure that the film and TV productions in our state are following the rules.

“For example, projects must have commitments for at least 50% of their funding before even applying for assistance under the program.

“In addition, projects are not to receive tax credits until after their work is complete and they have submitted invoices of qualified expenses.

“And, we expect film and television productions to obey Iowa’s labor laws – which mean people get paid for the work they do. That does not mean they wait until after their tax credit has been approved.

“Iowans will not be taken for suckers. While we need to make changes to strengthen management of this program, we are not going to be taken advantage of – and if we are, we are going to claw back and make sure any money wrongfully provided is returned.

“Again, the actions I have taken are to protect the best interest of Iowans, not to harm the growing film and television industry in our state. I hope we move forward, but before we do we must assure that the film program has the oversight in place to assure that it operates properly.”