Lights, camera, inaction! Sides drawn over risks and opportunities of state-funded film incentives.

• Author: Sukin, Gigi

In 1974, author Stephen King found a change of scenery for his next book project by opening an atlas and randomly pointing to Boulder.

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King and his wife, Tabitha, took the advice of some helpful locals and stayed at the imposing Stanley Hotel at the base of Rocky Mountain National Park--a setting that ultimately inspired his horror novel, "The Shining."

It's no wonder many people believe the hotel is haunted. The 1997 television mini-series version of "The Shining" was filmed there, and reports of supernatural activity brought in the Syfy Channel's hit show "Ghost Hunters." About 80,000 of the Stanley's 350,000 annual visitors pay for ghost tours.

"It would be air to say that the publicity, the movies, the mini-series as well as other TV shows have absolutely helped the hotel thrive," says Daniel Swanson, the Stanley's vice president of e-commerce. "It's been a real revenue driver for us."

The Stanley's story serves as a testament to the potential of film and television projects to boost Colorado's economic activity, job creation and tourism.

A 2011 University of Colorado Leeds School of Business economic analysis of a Colorado film incentive program found that every dollar invested in film and television brings $5 in production spending and nearly $10 in economic activity.

After the state hired Hollywood producer Donald Zuckerman as director of the Office of Film, Television and Media in 2011, he persuaded lawmakers to fund a $4 million rebate and loan guarantee incentive program. Zuckerman then landed three films, a Coors commercial, post-production work and three TV series.

State Rep. Mark Ferrandino (D-Denver) says the film incentive program, while modest by national standards, produces big results: more than $41 million in economic activity, 376 direct jobs, 195 indirect jobs and an estimated 515 part-time jobs.

"The pros definitely outweigh the cons," he says.

But not everyone is so quick to roll out the red carpet.

In April, the Colorado legislature's Joint Budget Committee rejected a House-approved request to increase the film office's Funding by $1.5 million.

"Generally the opponents think it's corporate welfare or money not well spent that could have gone elsewhere," Zuckerman says.

Sen. Kent Lambert (R-Colorado Springs) voted against the request, citing reports that cast doubt on the incentive's supposed return on investment. He expressed further concern that the entertainment lobby...