California’s legislature said Thursday that the departure of prominent black female executives in Hollywood is a “worrying pattern,” especially after the state extended its film and TV tax credits.
“This is a pattern that signals that early progress we have made working with industry to ensure diversity, equity and inclusion above and below is now coming to a complete halt,” says Laura Smallwood. Senator Cuevas (Democrat, Los Angeles) said at a press conference held by the California Legislative Black Caucus.
Smallwood-Cuevas is among lawmakers seeking more answers from movie studios and Gov. Gavin Newsom on a bill that would extend the state’s $330 million annual film and television tax credit for five years through 2030. signed on Monday. -31. The tax credit will create an estimated 60,000 jobs and $10 billion in investment. The Black Caucus will meet with state governors, film industry executives and labor partners in the coming months to provide studios with more data on their diversity efforts and encourage them to deliver “real results.” said.
The call to action highlights the tension between California lawmakers and movie studios over the lack of diversity that has long plagued Hollywood. Diversity concerns have only grown since the U.S. Supreme Court in June overturned race-based affirmative action policies at universities.
“This isn’t just for women. It’s a slap in the face for people of color,” said Rep. Mike Gipson (D-Carson).
While various industries stepped up efforts to promote diversity after the murder of George Floyd in 2020, Hollywood still struggles to make its workforce more diverse. According to UCLA’s Hollywood Diversity Report, in 2022, 78% of lead actors in popular movies released in theaters will be white, up from 72.4% in 2019. At the same time, Hollywood studios released fewer movies in theaters, reducing opportunities for people of color.
Mass layoffs across industries are also hitting diversity, equity and inclusion jobs harder than others. Diversity and inclusion work may include roles in helping improve company culture through events, policies and projects. According to one study, as of December 2022, 33% of employees in DEI roles left the company voluntarily or involuntarily, compared to 33% in non-DEI roles. 21% of employees were study By Revelio Labs, a workforce intelligence company in New York.
In June, four high-profile black female Hollywood executives left major companies, including Warner Bros. Discovery, Walt Disney and Netflix. The departure of a leader who has focused on diversity, equity and inclusion efforts has allayed concerns from insiders and advocates that promises to make Hollywood more diverse are empty promises. Caused. Representatives from Disney, Netflix and Warner Bros. Discovery say their commitment to diversity is genuine. The motion picture association governor’s office was not immediately available for comment.
California’s film and television tax credit, which is refundable beginning in 2025, includes a diversity requirement, but some lawmakers say it’s not enough. For example, if a studio wants a full tax credit, it must submit a diversity work plan that “broadly reflects” California’s population. Tax credit recipients will report information to the California Film Commission, such as how a project met, or made good faith efforts to meet, the Diversity Work Plan. Under the bill, film industry diversity, equity and inclusion experts will also join the CFC Board.
During the movie tax credit negotiations, Smallwood-Cuevas urged the film industry to introduce a system to measure workforce retention so lawmakers can track progress in Hollywood’s efforts to increase diversity. But he said film studios resisted the idea.
Lawmakers said they want legislation to add tracking of this information to the film tax credit.
Smallwood-Cuevas said lawmakers may need to reconsider state investments if the data shows Hollywood hasn’t changed course on diversity at all.
“I think it will take time to see this kind of trend,” she said in an interview. “But what doesn’t help is when the leadership of that job is completely erased.”
