The budget released today completely eliminates all of California’s 42 Enterprise Zones.  It also takes away all prior credit carryover.  However, many see this is a starting point for negotiations.  

Assemblyman Dan Logue, R-Linda, who opposes eliminating enterprise zones, said the state needs to do more to create jobs, not less.“The governor has to realize that to create wealth and revenue, you have to give businesses a reason to develop in an area,” said Logue.

He added in the last decade, the majority of new jobs created in California came in areas where there were enterprise zones.  But because the initial budget proposal from the governor often undergoes several revisions before it’s passed and signed, Logue said, Brown may be including the cuts as a negotiating tactic.

Read the full article here.

Press release from Siskiyou County:

Siskiyou County Economic Development council responded quickly to Senator Doug LaMalfa’s request for supporting documents to ensure the continuation of the Enterprise Zone program in California.  Governor Jerry Brown announced shortly after taking office that the enterprise zone tax credits may be eliminated in the new budget.  The SCEDC provided the Senator with a letter of support and testimonials from many Siskiyou County businesses who utilize the enterprise zone program.

January 5, 2011

The Honorable Doug LaMalfa                       

CA State Senator, 4^th District

State Capitol, Room 3070

Sacramento, CA 95814

Dear Senator LaMalfa:

The Siskiyou County Economic Development Council fully supports your efforts to ensure the continuation of the California Enterprise Zone program. The Siskiyou Enterprise Zone was created on June 22, 2008. The Siskiyou County Economic Development Council administers the zone in service of its eight partner cities and the County of Siskiyou.

The SCEDC works with its partner cities, CPA’s and businesses to help them utilize the program. The program has grown from 260 employee tax credit vouchers processed in 2008 to 542 vouchers processed in 2010.   Sixty-six employers voucher employees through the SCEDC of which 61 are categorized as small companies with less than 50 employees. The 542 vouchers processed in 2010 represent 542 jobs created within Siskiyou County.  

The value of enterprise zone tax credits to Siskiyou County employers is considerable given the number of privately owned, small businesses who use the program. The dollars that they are able to reinvest in their companies are critical to the economic recovery and growth in Siskiyou County.

Sincerely,

Tonya Dowse

Executive Director

Texas is “open for business” and using its Enterprise Zone to lure California businesses looking to relocate.  Is Jerry Brown listening?

With shovel ready sites situated in an enterprise zone the Levelland Economic Development Corporation sees the new Levelland Industrial Rail Park as the key to developing a diversified local economy.  By paring this new rail infrastructure with the local skilled workforce and integrating ourselves into the wind energy logistic supply chain, Levelland can take advantage of the expanding renewable energy industry exploding throughout the region.  Levelland also offers opportunities to California businesses considering relocation or expansion by helping reduce the normal stress related with such capital intensive projects.  Our exceptional economic environment, warm weather, famous hospitality and affordable cost of living make Levelland an ideal choice for businesses looking to make a move. Texas Governor Rick Perry says, “Texas Wide Open for Business” and Levelland is a great place to enter the Lone Star State. 

Read it here.

Newly elected Democrat Luis Alejo, of the 28th Assembly District, is lining up in favor of Enterprise Zones.  “The Enterprise Zone program should be strengthened rather than eliminated,”  Alejo said in a January 1 article in The Californian.  Although a new Democrat, Alejo was picked by Speaker Perez to be Vice Chairman of the Assembly Local Government Committee.  Alejo is also a member of the Assembly Budget Committee.  He joins JEDE committee chair Manuel Perez in voicing strong support for the Enterprise Zones.

Anaheim, Harbor Gateway and Santa Clarita Valley, according to California Newswire.  Nothing posted on the HCD site yet.  Here is the link to the California Newswire story.

The League of California Cities urges everyone to contact their local political leaders and educate them as to the benefits and worthiness of the EZ program.  “City officials from communities with Enterprise Zones are encouraged to begin talking to their legislators now about the jobs and economic benefits these zones bring.”  View the Leage of Cities piece.

San Joaquin County’s governmental bodies have rallied behind a proposed expansion of the region’s business-friendly Enterprise Zone, but economic development leaders say a fight to keep the program alive is upcoming.

San Joaquin County Economic Development Director Fran Aguilera adamantly supports the EZ.  ”The zone is the biggest tool we have to attract business, and to keep them here.  It’s ludicrous. If you do something that hurts businesses … you’re hurting employment.”

Read the story here.

A plethora of different business group are collaborating together to host a small business tax forum which will include discussions on taking advantage of the Enterprise Zone Program.  The different groups include Oakland’s Mayor, Alameda County Small Business Development Center, Northern California Small Business Financial Development Corporation, Black Economic Council, Hispanic Chamber of Commerce, East Bay Economic Development Alliance, The Women’s Chamber of Commerce, Oakland Metropolitan Chamber of Commerce, African American Chamber of Commerce, Oakland Chinatown Chamber of Commerce and the Alameda County Bar Association.

 Here is the flyer for the event.

“Salinas, Greenfield and other south Monterey County cities lining up to take action are doing the right thing by approving expansion of the Salinas Valley Enterprise Zone.  By doing so, they are sending a message loudly and clearly that we welcome businesses to set up shop in our communities.”

  Read the article here.

The Sacramento Business Journal ran the following Op-ed piece last Friday.  The writer is Enita Elphick, business owner of Unity Forest Products.  Again, the business world is speaking out in favor of the EZ programs against the backdrop of dueling statistics about the program’s effectiveness.

This is no time to be ending the state’s enterprise zone program

California’s enterprise zone program is one of the state’s most important economic development tools.  The program was created in 1984 in order to stimulate business and create jobs in depressed areas with low incomes and high unemployment. The goal is to entice businesses to set up shop, hire locally and hire people with barriers to employment — and revive the local economy by providing companies with tax incentives and other benefits.

Surprisingly, there are some legislators in Sacramento looking to end the enterprise zone program, threatening to stop what little job creation is taking place. This makes no sense. Over the past 25 years, enterprise zones have proven to be beneficial to California’s economy and employment rate.

The program is beneficial to California as a whole. The California Association of Enterprise Zones website reports that “zones account for nearly 30,000 jobs generated over a 10-year period, and that growth brought funds to the state through income tax, sales tax and corporate tax.”

Similarly, as individuals are hired, their dependence on social services decreases.

As owner of Unity Forest Products, an organization that has planted its roots within one of California’s 42 enterprise zones, I can say that our organization would not be here today if it weren’t for the program. The current economic hardships so many of us are facing make it extremely difficult to do business, especially in California. If the program did not extend benefits to our company, we would not have been able to continuously expand while increasing our work force and remain viable during these tough economic times.

Unity Forest Products was a startup in 1988, and without the hiring tax credits and other incentives the enterprise zone offers, I would not have been able to obtain the loans necessary to start the business. Additionally, we began with four employees, but because of what the enterprise zone allowed us to accomplish, by 2008 we had over 120 employees.

From a job creation point of view, comparing all of the job programs at the federal or state level, the enterprise zone program is by far the most productive. In addition, it paves the way for business growth in disadvantaged communities.

The enterprise zone program is one of the few remaining programs that make sense. If the legislature comes back from summer recess and votes to end the enterprise zone program, it would be devastating for our business, the employees who rely on us for their livelihood and the economic forecast for the state.