New Mexico's incentives include a state sales-tax exemption and a 25 percent refundable income-tax credit on in-state production and post-production costs. The state's cap for such incentives is $15 million.

"It all comes down to incentives," Martin said. "If we're going to be in the ballgame, we've got to have some incentives."

The production of Walt Disney Studios' "High School Musical 3: Senior Year," currently filming in Salt Lake City, is expected to boost the state's economy by $13.3 million in just 41 days, he said.

"I don't know of any other industry that can come in and dump $13.3 million in 41 days and leave," Martin said.

"Blank Slate," a TV movie planned to serve as a springboard for a series pilot on TNT, spent four weeks filming in Salt Lake City, spending a little more than $1 million.

The city and state missed out, however, on "Leverage," a TNT drama slated to premiere later this year. The weekly series starring Oscar winner Timothy Hutton opted for Portland, Ore., where it was offered better incentives, Martin said.

About $1 million per week will be spent for 13 weeks in Oregon while the series is filming, he said.

Martin also suggested to the City Council that criteria for the city's small-business revolving loan fund be amended to allow for short-term, low- to zero-percent financing to better cater to the film industry.

The City Council will be discussing the 2008-09 budget for the next several weeks. By state law, the city's final budget must be adopted by June 22.

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E-mail: jpage@desnews.com