Hollywood’s major unions have welcomed outgoing California Governor Gavin Newsom’s proposal to expand the state’s Film and Television Tax Credit program, but say they want to see the next governor make the program a priority as well.

The Entertainment Union Coalition, which includes SAG-AFTRA, IATSE, the Directors Guild of America, the Writers Guild of America West, the Teamsters, the American Federation of Musicians and LiUNA, said it looks forward to working with the next governor and the Legislature. The coalition called for a response proportionate to California’s workforce and production infrastructure, alongside changes to program rules that it says limit the state’s competitiveness.

Newsom proposed allocating at least $1 billion a year in tax credits for film and television productions, an increase of $250 million. Last year, his administration backed an expansion that raised the program’s funding from $330 million to $750 million.

The incentive has helped bring some productions to California. CBS’s “Tracker” began filming there in its fourth season, while Netflix’s “The Night Agent,” Apple TV’s “Stick” and Prime Video’s “Mr. & Mrs. Smith” also shoot in the state. Other productions using the program include “Big Little Lies,” “I Love LA,” “Fallout” and “The Pitt.”

However, production levels—particularly in Los Angeles—continue to decline, with California competing against other states and international locations offering stronger incentives.

Teamsters Local 399 Secretary-Treasurer and At-Large Vice President said the program is fundamentally about jobs and argued that Newsom’s proposal does not meet the state’s urgent needs. She called for continued investment and structural changes, saying that without them California risks losing further ground to competing regions.

She also argued that the program should have no funding cap to compete with places such as New York and international production hubs. In addition, she reiterated the need for a federal tax incentive, which lawmakers introduced in Congress in September. The unions, she said, are prepared to work on the issue; whether the next governor will match their commitment remains uncertain.

Sources: Deadline.