“Unfortunately a lot of states and countries are willing to invest a lot into trying to attract a lot of the work that exists here, and there’s nothing really that’s stopping that trend,” Nakamoto said. “They’re willing to offer very generous incentive packages. In a lot of ways, especially considering the state’s financial situation, its difficult for us to compete.”
While stimulus funds could create more jobs and drive more money into the local economies, concerns about the prospects for growth in the entertainment industry are keeping economists skeptical.
Even the recent SAG deal, which could jump-start some in-state projects, will have only a marginal impact until lawmakers find a way to give California a financial draw over other states, Kyser said.
