Editorial: Don't hock these jewels
Gov. Rendell and state lawmakers seem far apart in how best to plug a $3.2 billion budget shortfall.
As the impasse drags on, a number of special interests are busy lobbying to keep funding for individual projects.
Each group can make a compelling case as to why its program is needed. Indeed, it's often difficult to pick winners and losers.
But there are some programs that actually pay for themselves. As such, no matter how dire the budget gap remains, it would be foolhardy for the governor or members of the General Assembly to make indiscriminate cuts in programs that actually generate jobs and revenue for the state economy.
Two prime examples: the modest government grants devoted to tourism marketing in the Philadelphia region and across the state, and the state's successful $75 million filmmaker tax credit.
Both programs bring in tax revenue and jobs to the state at little cost, yet they're inexplicably on the chopping block as part of the budget talks. As much as 40 percent of the marketing funds could go, and the film-industry tax credit faces a complete moratorium.
Neither cutback makes sense in a dollars-and-cents view of the state's budget crisis.
Where the 9/11 terrorists couldn't succeed in dissuading state and local officials from retreating on tourism marketing, the present economic downturn now threatens to do so.
But the convincing case that marketers make is that this region in particular has to keep its message before millions of potential visitors, especially in tough times. That was proven the right decision amid the economic doldrums post-9/11, when Philadelphia's visitor industry recovered well due to sustained marketing. It's the right decision now.
The Greater Philadelphia Tourism Marketing Corp. estimates a $13 return for the state economy on every $1 spent to market this region. So to save the treasury only about $10 million on statewide tourism marketing, Harrisburg officials would be risking more in lost revenue and jobs generated by tourists' spending.
"When you cut our budget, you cut your budget," GPTMC chairman Manuel N. Stamatakis and other board members said in an open letter to Rendell.
Not every "With Love, Philadelphia XOXO" ad can be credited with luring a certain number of tourists. But overall, it's clear that state budget savings on marketing would be short-lived.
As for the film-industry tax credit, it pays for itself in state and local taxes and spending on moviemaking, an industry study showed.
After the tax credit was offered, made-in-Pennsylvania movies jumped from five a year to 27 in 2007. With most states offering credits now, filmmakers would simply take their productions out of Pennsylvania if the state halted its incentive program.




