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Film Finance, Scheduling, and Budgeting: The Budget (above/below the line)

We sat with an industry expert in film to take a closer look at how the above the line and below the line budget works in the film industry and tv industry.

“When the film is getting made, the producer will work with and help to assemble a team that will help to execute it,” explains Janet Grillo. “So, when we look at a budget, there’s a top sheet budget, which is a thick document, 26-30 pages of real detailed, thoughtful estimation of the costs, from development all the way through to distribution.”

There’s a top sheet, which is usually one or two pages, that’s summarizing what those costs are. On the top sheet, imagine a sheet and imagine a line. There’s an above the line, and then there’s below the line.

The costs above the line on the top sheet of the budget, are everything to do with the ideation, creation, and envisionment of the project before cameras roll. Think of above the line as before cameras roll, explains Janet.

“Below the line is when you’re ready to make the damn thing,” says Janet. “It’s getting the cameras rolling. So what’s going to be above the line? Your writer, your director, the cost of the intellectual property, meaning the screenplays, is it based on a book, a magazine, a comic strip, is it a remake, that’s the intellectual property and all the costs of developing that into a screenplay.”

The people involved with doing that are the director, the writer, yourself, the producer, and some other producing partners that you might have, they are above the line.

And sometimes stars. If to get the film funded, you’ve got some big market value actors, they’re going to be above the line as well, says Janet.

Below the line is going to be everybody else. That includes the cinematographer, camera crew, and everybody involved with handling the equipment to the lighting, the gaffers, all the teams that put the equipment in place, the production design. All the people who work on building the sets, costumes, the people involved with wardrobe, creating the look and making the costumes and dressing the actors, all of the people involved with hair and makeup. All of the people who work on the making of the film.

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