The results of incentives for movie production

Michigan Avenue has been a battleground for several recent weekends as Transformers 3 filmed scenes. According to the Chicago Tribune, the producers were partly drawn by the financial incentives offered by the state of Illinois. Though the film will spend more than $20 million in six weeks in the local economy, the state will offer at least a $6 million tax credit.

Illinois is not the only state playing this game:

Illinois is among 45 jobs-hungry states tripping over each other to financially woo movies and television shows. About half, including Illinois, offer tax credits, which cut producers’ costs by tens of millions of dollars at the expense of state budgets.

The pool of rivals has doubled in the past four years, and the lures, for the most part, are getting fancier, with only a handful of states pulling back, either due to recessionary pressures or local scandals. A just-released study by the Milken Institute indicates that aggressive plays, by states as well as overseas locales, are cutting into California’s historical grip on the business.

The rest of the article contains arguments for and against such aggressive tax credits. Regardless, it seems that the tax credit game may become a race to the bottom where states eventually find there is little economic benefit to having filming in their backyard.

Even if the filming doesn’t bring in many jobs (as opposed to short-term work) or other lasting benefits, filming can certainly draw attention. The filming of Transformers 3 has attracted a lot of local media attention, perhaps raising the profile of Chicago and Michigan Avenue for viewers.

The diverging diamond interchange

American interchanges can take many forms – see this field guide to highway interchanges from The Infrastructurist – including one called “the diverging diamond.” The goal is to provide better traffic flow from a road onto a highway through switching the lanes of traffic through the interchange area. That is, traffic entering on the right side of the road are then driving on the left through the interchange and vice versa.

Illinois Department of Transportation officials are considering this design, primarily being touted by Missouri officials, for an interchange in Naperville. See the design here and the background to the interchange here.

Cutting writing tests to save money

The Chicago Tribune reports on Illinois’ plan to cut down on state writing tests for 2010-2011 to save $3.5 million. From the article:

[L]ate last month, the Illinois State Board of Education decided to eliminate the writing exam given to students in grades three, five, six and eight for the 2010-11 school year.

The 11th grade writing test still will be given because some universities require a writing exam of applicants, said state board spokesman Matt Vanover.

I wonder if this is a cut intended to draw outrage from citizens…who might then be willing to pay more toward education.

Additionally, federal statutes focus on reading and math and do not require a writing test. The article also notes that Illinois’ writing scores are typically poor.

Learning from the country’s largest urban solar plant

The Chicago Tribune reports on a 40 acre solar power plant on the south side of Chicago, the largest urban solar plant in the United States. While the plant is not very big (generating 10 megawatts), some things I learned that shed light on the broader issue of clean energy:

-Benefits of a plant this size: “The solar plant generates enough electricity to power about 1,500 homes, and its clean power means less greenhouse gases are emitted, the equivalent of taking 2,500 cars off the road each year.”

-Perhaps Chicago is not a bad place to build solar facilities: “The sun in Illinois is more intense than in Japan or Germany, the world’s two largest solar markets.”

-On a national level: “Nationwide, there are more than 22,000 megawatts of large-scale solar projects under development, or enough to power 4.4 million homes.”

-“Green jobs” generated by building solar plants do not necessarily last over time: “Exelon’s West Pullman plant, for example, created about 200 jobs, but only during the six months of construction, he said. “It certainly wasn’t something that went on for years,” Lynch said.”

-Wind power is the main green energy for the near-future in Illinois: “Power companies in the state must get at least 25 percent of their electricity from green sources by 2025. Of that amount, 75 percent must come from wind, while only 6 percent must come from solar”

Summary: this plant has some clear benefits including cleaner energy and construction jobs. But there is a long way to go before solar plants, particularly in urban areas, can generate enough electricity at a reasonable price.