The New York Times reports that as states tighten their belts, some governors are thinking about reducing Hollywood subsidies.

That's bad for Hollywood, the industry, but maybe not so bad for

Hollywood, the place, because California has no intention of cutting its tax credits for film and TV production.

Mr. (Jerry) Brown is proposing to cut social services and state employee pay while extending tax increases that were supposed to be temporary. He has also provoked howls of protest by insisting that state workers return 48,000 cellphones by June 1 in a bid to save $20 million.

But film and television tax credits passed under his predecessor, Arnold Schwarzenegger, remain intact at a cost of $100 million a year.

Meanwhile, states like New Jersey, Michigan and Iowa have either slashed their production credits or are thinking about it. So is this the end of the interstate competition to grant increasingly favorable tax treatment to Hollywood? And would that be the beginning of the end of runaway production?

Amy Lemisch, the director of the California Film Commission, cited a report last week on the Film L.A. Web site that showed an uptick in film production in the Los Angeles area after years of decline.

Unfortunately, there is always New Zealand.

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