Hollywood free fall takes center stage in governor's race as industry loses 51,000 jobs

A sharp drop in film and television production jobs in California is becoming a major issue in the state’s governor race, with candidates proposing changes to tax incentives to revive the industry. Over the past three years, roughly 51,000 jobs tied to film and TV production have been lost, most of them in Los Angeles. The decline has drawn comparisons to the downturn in the region’s aerospace sector in the early 1990s.

Several candidates are now backing expansions to California’s $750 million production tax credit program. San Jose Mayor Matt Mahan said Monday he wants to remove the cap entirely and extend subsidies to include “above the line” costs such as salaries for actors and producers.

“Hollywood is the centerpiece of the California economy,” Mahan told Variety. “We’ve got a tremendous number of middle class jobs at stake in an industry that is suffering. We are down 35% from our 2022 peak. The reality is that other states and countries are doing more to attract this industry. We can’t lose Hollywood.”

Former Los Angeles Mayor and Democrat gubernatorial candidate Antonio Villaraigosa has proposed similar changes. “We haven’t done enough,” he said. “I believe this election is existential for the film industry. They’re not going to film here — not when the rest of the world and other states are staying above and below the line.”

The current program was expanded under Gov. Gavin Newsom, who increased funding and made the credits refundable. It also added eligibility for animation and competition shows, but production has continued to decline.

Industry groups remain divided over how incentives should be structured. Labor unions have generally supported focusing subsidies on below-the-line costs to preserve crew jobs, while studios have pushed to include higher-paid talent in order to compete with other states like Georgia and New York.

Recent data shows that only a small share of projects receive state subsidies. About 11% of television productions and 17% of films in Los Angeles qualified for credits in late 2025.

Other candidates have taken varied positions. Former Rep. Katie Porter said she wants to review the current program before backing an increase. “If we are hitting the limit of what we have allocated and we are seeing more potential, we should go back and not let the cap stand in our way,” she said. “I’m not afraid to raise the cap if we’re seeing really good take-up.”