The California Association of Enterprise Zones posted this response to Governor Brown’s proposal to eliminate the Enterprise Zones:

SACRAMENTO, Calif., Jan. 11, 2011 /PRNewswire/ — The California Association of Enterprise Zones (CAEZ) understands California and Governor Brown are looking for ways to close a $28 billion budget deficit.  CAEZ believes the ultimate solution will only be achieved through strengthening California’s economy and creating jobs.  

The proposal outlined by Governor Brown to eliminate Enterprise Zones is inconsistent with policies promoting economic development, job growth and community investment.  Each Enterprise Zone is created for a limited time and represents a commitment from the state and a significant investment from local governments.  Eliminating Enterprise Zones would send the wrong message to businesses that create jobs, in essence that California is an unreliable partner not to be counted on to keep its commitments.  

“We should be doing all we can to promote economic development and create jobs locally,” said Craig Johnson, president of CAEZ.  ”Jobs generate revenue for the state.”

The uncertainty caused by proposals to abruptly change economic policies is already disrupting business decisions to expand job creating investments.  Now is not the time to abandon these partnerships and the infrastructure created at the local level through the Enterprise Zone program with private sector businesses and our local communities.  

Research has shown that Enterprise Zones help reduce poverty rates, lower unemployment, provide higher wages, increase household income levels and foster greater community investment through private-sector businesses.

“Tax increases and the elimination of these important economic development programs will only worsen California‘s unemployment rate and cause more businesses to flee to states with healthier economies and friendlier business policies,” stressed Johnson.

The California Association of Enterprise Zones (CAEZ) represents the 42 Enterprise Zones located throughout California.  CAEZ’s priority is to ensure economic growth and retaining and growing jobs in the most distressed areas of California and in communities of color.

Tags: CAEZ, california enterprise zone, california tax law, california tax news, Enterprise Zone, enterprise zone news, Enterprise Zones, EZ tax credits, governor, hiring credits, hiring tax credit, hiring tax credits, Tax News

This entry was posted on Wednesday, January 12th, 2011 at 4:04 pm and is filed under Enterprise Zones, Tax News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.