Liberal Website Criticizes Amann Legacy

Article FROM Jon Kantrowitz MYLEFTNUTMEG

Connecticut's state subsidies for the entertainment industry are a money-losing proposition for the state. That is the conclusion of a new report, Fiddling While Rome Burns: Connecticut's Multi-Million Dollar, Money Losing Subsidy to the Entertainment Industry. The report is published by Connecticut Voices for Children.

The report is based on recently-released data from the Connecticut Commission on Culture and Tourism (CCCT). While intended to spark a home-grown entertainment industry in Connecticut, these data show that the tax credits have largely been subsidizing out-of-state personnel and businesses. The report finds that only 11% of the $113.2 million of state revenues lost through the "film tax credit" subsidized production expenses that were classified by CCCT as "actual Connecticut expenditures."

"Connecticut has been hoodwinked by the entertainment industry into paying for 30% of their production costs. But the glitz and glamour of this industry shouldn't blind us to the fact that these tax credits are big money losers for the state," said Shelley Geballe, Distinguished Senior Fellow at Connecticut Voices for Children and author of the report. "At a time when the health and well-being of our families and communities is threatened by severe state budget cuts and Connecticut must create new, permanent, full-time jobs, investing our scarce resources into schools, health care, and home-grown businesses in emerging fields like renewable energy makes far more sense than subsidizing the next horror movie or thriller."

The study found that eight productions received a total of $9.3 million in tax credit subsidies, though they reported no actual production spending to Connecticut entities at all. Presumably, these productions transported all production-related personnel, equipment and supplies into Connecticut from other states for the duration of the production. Overall, the state has awarded $2.73 in production tax credits for every dollar of actual Connecticut spending on the production of films, television shows, commercials, infomercials, and video games.

The report also cites evidence from independent analyses of state film tax credit programs in Connecticut and other states to show that the film tax credits lose money for states and do not pay for themselves through increased sales, income, corporate and other taxes. These studies estimate that states earn back in tax revenue between 15 cents and 23 cents for every dollar of tax credit issued, even taking into account any additional economic activity generated by the credits.

The report criticizes the unusually generous and open-ended nature of the film tax credits. The film production tax credit covers 30% of eligible production expenses. These entertainment tax credits do not operate like any other business tax credit in Connecticut, in that they do not simply reduce the taxes an entertainment production company owes Connecticut. Rather, production companies awarded the credits can sell the credits to other companies (even if they are unrelated to the entertainment industry) when they have no Connecticut tax liability to offset. So Connecticut is "on the hook" for 30% of a company's production costs, whether or not that company owes any Connecticut taxes. Further, there are no caps on the amount of credits that may be granted per production, or in total, so Connecticut can lose virtually unlimited amounts of revenues, even in a deficit year. The costs of Connecticut's entertainment industry tax credits far surpass the state's investment through tax credits in any other industry, and also exceed the total budget of the Connecticut Department of Economic and Community Development.

One huge give-away that hasn't happened yet: Blue Sky Studios.Their highly touted new headquarters at One American Lane, Greenwich, Connecticut 06831 is accessible only from New York State. No local CT businesses will benefit from this business. This is an animation company. All development work will be done in-house. The only possible benefit is to the Greenwich tax rolls - in desperate straights as we all know.

To view source of this article click HERE

Jim Amann Gets "Hooked Up" With Controversial New Job.

Just when many Amman objectors thought "good riddance" to the former Speakers departure from politics a new surprise today. The Connecticut Post announced that the Speaker may have all along confirmed many suspicions and conspired against his colleagues in Hartford by using his former post for personal gain via a shady side deal.

The jaw dropping announcement puts current Speaker Donovan in an "unholy relationship" with his new consultant Jim Amann. While he may think he unwittingly outwitted and outflanked the ethics of his office, many of his colleagues, including top ranking Republicans are speechless this week.

The money trail is clear, $39K as Speaker or $120K as a consultant to the new Speaker. Aside from the fact that this denotes the epitome of Cronyism in the "N-Th" degree I would suggest we remember that Jim has always been at odds with his critics, including some Democrats who drove a hearse to Milford city hall to protest his run for governor.

To remember the past, he involved himself with a criminal gangster Joe Gentile as part of Hollywood East, an unproven debacle that is yet to produce more income than it depletes from our state in tax credits. That not being bad enough he also decided to openly and brazenly play the part of a gangster when he was caught on video speaking about "Crushing" his "Idiot" opponents.

What is even more disconcerting is that Jim still gets 60K out of the MS coffers as a salary for raising money. Some have suggested that donating to his MS charity resulted in favorable legislation. That alleged there is still more mainly the lucritive Three Million Dollar CEF Governor grant, money he may use to run for a Job he has no chance of winning. It is my opinion that he knows this, so the big question is what will happen to this cash, how will it be spent and whose hands will it fall into. Could it be Donovan for helping him out with a high paying job?

Jim may be well on his way for setting himself up for the same criticism that ultimately led to the demise of the John Rowland Administration. Aside from the irregular nature and harsh criticism that his business dealings have drawn he has now proven to the academic community that education is not important in the way of political success, after all a college drop out can become a house Speaker as well as gain employment in a 120K job formerly set aside for true experts with years of study in many disciplines.

Some people, I have spoke with, indicated that Amann has always lacked the mathematical and accounting skills necessary to even understand the states fiscal picture. This criticism came center stage when Jim bilked the taxpayers of $50,000 because a scaffold was in the way of his party spot at the capitol.

Connecticut now mired with billions in debt will be advising our new Speaker on a subject he cannot explain beyond a few simple words. Jim is investing his popularity and charm at the expense of the good people of Connecticut.

For those who are not yet bothered it is important to point out that there is now a real cause for concern. Concern emanating from the effects of the Amann aggregate to the current rampant cronyism. This is surely to stand in the way of true qualified experts dedicated to scientifically fixing the states problems. Connecticut is rich with many talented people, brilliant in the understanding of practices and principles of macroeconomics, taxpayer relations, and balancing budgets.

When states fail to step up the plate and enact the practice of "hooking up their friends" with "sweet jobs" we fall victim to the crippling effects of failing government by way of crippling budget deficits like the ones we see now. These budget deficits are growing every minute of every day and if you wonder where this all leads just read this article it is frightening.

It is all too sad to quote.

With Amann Out Of Picture, Will Film Tax Credits Survive?

The former Speaker of the House certainly hopes so.

Just two days after handing the gavel over to the new Speaker of the House Chris Donovan, James Amann, who is not longer a legislator, returned to the state Capitol to attend a meeting of the Hollywood East task force that he created.

Amann who had trouble finding a parking space, since there was no longer one reserved for him said he wishes the lawmakers considering scaling back or eliminating the film industry tax credits would take a hard look at the data and visit some of the new studios.

“This thing is doing extremely well,” Amann said. However, the chairmen of the two budget committees sent out this press release Thursday stating that they have already begun an exhaustive review of the film industry credits to determine their value in an unsettled economy.

“The goal is to objectively determine if the state comes out ahead when the giveaways are matched up against the new business they generate,” Sen. Eileen Daily, D-Westbrook, said in the press release. And in fairness Daily, along with Appropriations Chairwoman Toni Harp, D-New Haven, both said they intend to weight the merit of all tax credits and tax exemptions this year.

Amann said he respects the lawmakers who may question the credits, however, they’re not here trying to get the information. “Why aren’t they taking the initiative?” Amann said.

He said since 2006 there have been 91 films made in Connecticut and 10 of them are up for Golden Globes. In fact, he said one of the films “Revolutionary Road” is up for film of the year.
The industry is growing, Amann said. He said everybody has to collectively put their data together, then they will see just how many jobs and economic activity were created by this credit.

Rep. Carlo Leone, D-Stamford, who chairs the Hollywood East task force, thanked Amann for all his hard work on the issue. In championing the film tax credits, Leone said the creation of jobs is the key winning public approval for these credits. He said as long as the task force and the industry get that message out then it will have the public on their side and will be able to convince lawmakers to keep the credits on the books.

Article Written By C. Stewart

Hollywood East CEO A SCAM artist!!

Reprint from CTBLUE

Quality Journalism this morning at the Day. Yes, I know I don't say that often, but you have to give the devil its due.

I refer to this morning's article, One Small Lot, One Big Mess, about Joe Gentile, the Utopia developer and involved in CT's Hollywood East. The story involves a scam in which he's involved in New York, where he is apparently using some fairly complicated legal shenanigans to bilk some "partners" out of their share of a real estate deal. One device he's using is a mechanic's lien filed on the property by a construction company, with whom he's apparently in league. By foreclosing on the lien he can wrest ownership of the real estate from his minority partners. It's a fairly complicated deal, but it seems clear from the story that Gentile is a slippery guy, and one whom it would be wise to keep under close surveillance, assuming you have the misfortune of getting involved with the guy.

He does it by doing business through various corporations, each of which appears to be set up to handle only one phase of the transaction. Besides making it difficult to prove the elements of the scheme, the tangle of corporations provide at least a first line of defense for Gentile. It is not easy to establish the personal liability of a guy who surrounds himself with corporations.

The Day's story gives us at least a glimmer of insight into the nature of the scam Gentile is pulling in Preston:

Gentile said the lawsuits will prove him right, and once that happens, he will do what he always does: Finish the job.

“The ironic part of this whole thing is, I became a huge winner,” he said. “West 23rd Street is the hottest block in New York City. I'm in a good place, and I have a lot of options.”

Those options, he said, include selling the property at a significant profit or going ahead with a condo complex.

“Am I wrong because I'm smart and it worked out for me?” he said. “Maybe God was looking down on me for doing the right thing.”

The best speculation I've ever heard about Gentile posits that once he gets his legal hands on the property he will use his newly acquired legal position to enable him to back out of his grandiose committments and take a profit out of the property and run. That appears to be what he is set to do in New York: steal someone else's property, milk as much money out of the project as he can, and then turn it over for a huge profit.

Hollywood East? or Hollywood Feast?

Recently it has been brought to my attention that the New Haven independent confirmed firm interest in developing Hollywood East in the grounds near the Sikorski airport. Not being privy to all the details and meetings that my opponent is privy to I did receive an e-mailed request to read the article and I agreed to share my thoughts and to keep things in the open I will share them here with you as well.

To begin, this project has always brought up mixed feelings in me, as I believe Hollywood East could be a great thing for our state. I was a bit surprised by the mostly negative comments, but was not surprised by the cynicism. One of my concerns about this project is its state leadership, one in particular is a college drop out. If I had to make a bet on who was going to get a better deal the PHD's in business that work for Hollywood or our feeble minded state leaders... well its a "no brainer" no pun intended.

I will be praying that the elements behind this deal are honest, that Blumenthal is reading and advising on the contracts and the CT taxpayers are not left with chronic traffic congestion and no funds for schools or road repairs. I believe that botched or improperly structured tax credits can hurt a city more than help it. When the casino deals were negotiated those deals were good for the state (in terms of business and returns in tax revenue) as far as its moral implications I still take issue with the induced negative social impact and mental health problems associated with gambling addiction. I mention casino's because our initial reticence to have them is what led to that "kind of a sweet deal". Someone in Hartford needs to remember that and look out for the environment, our cities, and the needed revenue derived to support local municipal demands. This type of a large scale project will undoubtedly bring a new need for sewer construction, grid work, emergency personnel and the local schools who may get new out of state students but not enough tax revenue.

My initial thought is that the expert negotiators in Hollywood have done an extensive profit & loss analysis on the scope and nature of this project, while one un-named leader is just about ready to believe every promise made and sign anything he must without thinking beyond the information he is fed. We already know he "butted heads" with Blumenthal over the high cost of energy when he refused to support his advice regarding a "windfall profits tax." Should Blumenthal, who reads and understands contracts as he is an Attorney, it is entirely possible that quality advice may get ignored CT yet again!

To sum this up I will say that it is my opinion that Hollywood East is very exciting, but only if the deal takes care of the surrounding community and keeps its promises. The only thing I would change about this deal is its CT leadership and its uncanny ability to divide argue and upset people with ignorance of simple contract negotiations.
What are your thoughts?