FILM WORKERS RALLY TO KEEP PRODUCTION HERE IN CALIFORNIA.

Byline: Michael Coit Daily News Staff Writer

Hollywood's behind-the-scenes work force rallied in the San Fernando Valley on Sunday to rail against the loss of movie production work to Canada and to urge support for local tax credits and incentives.

The event had all the trappings of a political campaign. There was red, white and blue bunting on the stage and organizers handed out buttons and urged people to sign form letters to California lawmakers.

More than a dozen people carried handmade signs in the crowd packed into Johnny Carson Park on the hot afternoon. Michael Verdugo, a studio utility employee from Sun Valley, toted a sign that stated, ``Hollywood is where the talent is.''

A 10-year industry veteran, Verdugo said he feels a duty to fight for jobs that his peers forged. ``It's important to send a message to Sacramento and to Canada. This is Hollywood, this is our home. We don't want our livelihood taken from us. If we don't stick together, then divided we fall.''

The rally was organized by the Film and Television Action Committee, a month-old coalition of working people, professionals and artists frequently referred to as ``below the line'' because their names are listed below the stars in a movie's credits. They have been hit hardest by studio spending cutbacks and the loss of production work to Canada, as well as other states offering cash rebates, tax breaks and other incentives.

Movie production off studio lots in Los Angeles County dropped 21 percent in the first three months of this year compared with the same period a year ago. There was a 12.7 percent decline for all of last year, according to the Entertainment Industry Development Corp.

``It's been a problem for a few years, but the drop has gotten real precipitous in the past few months,'' said Assemblyman Scott Wildman, D-Glendale, who also represents Burbank and helped organize the rally. ``We really built this industry here and we're losing it by being complacent.''

Wildman noted that Canada will pay cash rebates to productions that employ Canadian workers, which is in addition to its already favorable exchange rate for the U.S. dollar.

To bring Hollywood home, Wildman has introduced legislation to establish a 10 percent tax credit for labor costs incurred by film, television and commercial production companies that maintain all productions in California.

Assemblywoman Sheila Kuehl, D-Encino, has introduced a measure to bolster low-budget productions in California by offering a tax credit of 6 percent of qualified labor costs for productions costing $5 million or less.

Both measures are scheduled to be heard today by the Assembly Tax and Revenue Committee. The panel's chairman is Wally Knox, D-Los Angeles, who called on the crowd to remain unified during the fight ahead.

``You can be the difference between the success and failure of those bills,'' Knox said. ``Stay here and applaud and cheer, but as soon as you go home, think about how you can make a difference.''

Michelle Keck was doing her part at the rally's start. A member of the makeup artists and hair stylists union, the South Bay resident added personal comments and her signature to form letters to be mailed to the Assembly committee's six members.

``It's great that people are here, but unless we get together and take action, then we're just complaining,'' said Keck, who noted she is struggling to find work after three years as a makeup artist.

Joining the rally were ``above the line'' supporters, including members of the Directors Guild of America and the Screen Actors Guild.

``We owe it to them. These people are trying to make me better and that's why I appreciate them,'' said Seymour Cassel, who has appeared in 90 movies during his 42-year acting career.

``It's about greed,'' he added. ``The business made more money last year than ever. It's not fair.''