Like movie budgets that grow during filming, the Governor's Office of Economic Development wants to see an increase in the state's Motion Picture Incentive Fund.

Through a rebate of in-state spending by production companies, the fund is designed to boost filming of movies, TV specials and commercials in Utah, and GOED wants the figure to be $5 million for the 2006-07 fiscal year.

"This is a substantial increase from what we've requested in the past, which is basically $1 million, what we got last year in that particular fund," Jason Perry, GOED's executive director, told the Legislature's Economic Development and Revenue Appropriations Subcommittee on Wednesday.

"But in terms of filming in the state of Utah, it has become an enormous economic development opportunity. ... It's becoming a piece of economic development we have to address. Many motion pictures are trying to be filmed here, but we can show very good economic impact. The incentive return on investment is always at least 10-to-1 in the state of Utah for the dollars invested in these particular funds."

The $5 million request would be in the form of $3.5 million in ongoing funds and $1.5 million in a one-time allocation.

Only a couple of years old, the fund helped Utah become the site for filming major portions of several productions, including "World's Fastest Indian" and "High School Musical." Major portions of a "High School Musical" sequel also will be shot in Utah.

"It's amazing what's happened with that film incentive," said Rep. Sheryl Allen, R-Bountiful.

"We almost lost 'High School Musical 2,"' Perry said. "It was because of our incentives for the state for them to be filming here at all."

While most of GOED's other funding requests vary little from the current fiscal year, it also plans to seek $350,000 to hire a company to do an economic model on a proposal to address small-business employee health-care needs.

Rep. Steve Mascaro, R-West Jordan, said he will sponsor a bill looking at the same topic, or "a study to find out what we need to do to put together a good health insurance program" for small businesses.

"I commend you for taking this on," Allen said, "because legislators hear this plea from people who are employed by small businesses all the time, so I really commend you for doing that. Again, a lot of other states are looking at it. We just heard about California's governor taking a look at it, but we always have to be very prudent in the state of Utah. So I'm enthused. I hope there is a solution."

---

E-mail: bwallace@desnews.com