George Runner, member of the BOE wrote this today:

The Board came out in favor of the Governor’s budget on many fronts, including its stark honesty.  However, the Board is against driving businesses out of California by eliminating the Enterprise Zones.

Another area in which Brown’s spending plan shows ignorance of beneficial municipal-business partnerships is that of enterprise zones.
“Because the primary benefit of these zones is to shift economic activity from one geographic region within California to another geographic region within California, they are not of statewide interest,” Brown states in his budget proposal.
For many companies, the incentives offered through enterprise zones such as Santa Clarita’s are the only thing keeping them in California, and thus generating jobs.
As state Senate candidate Sharon Runner noted in a recent Signal Editorial Board meeting, what California really needs to get out of its fiscal hole is more jobs — jobs to generate tax revenue to keep state and local governments running.
But for the sake of argument, let’s pretend for a moment that Brown’s claim is true, and the “primary” benefits of enterprise zones is to shift jobs from one area to another. What’s the alternative?
In Santa Clarita, 50 percent of our work force travels out of town to jobs in L.A. What are the impacts of this daily migration on the state, and on the work force? Clogged freeways, long commute times, more and more resulting air pollution, frustrated workers.
These problems will only get worse unless we in the Santa Clarita Valley solve our jobs deficit. We simply are not adding enough jobs fast enough to close the gap.
The Enterprise Zone program can help us do that.

Read the full article here.

When Jerry Brown was Mayor of Oakland, he proudly welcomed Cybergold, an internet start-up company that moved to Oakland in large part because of “the tax incentives of the Enterprise Zone.”   It was September 28, 1999.

“Cybergold’s talented workforce adds to the energy and excitement of downtown Oakland,” said Mayor Brown at an event celebrating Cybergold’s recent arrival. “Cybergold’s presence here is an unmistakable signal to other Internet start-ups that Oakland is wired and ready to go.”
Read it here.

I guess that was then and this is now, but Mayor Brown was able to build a thriving downtown Oakland because of the EZ.  Now he claims they are of no benefit to the state and should be summarily cast aside. Hmmm.

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.

Los Angeles is “prepared to shoulder its fair share of the responsibility” for balancing the budget, said Mayor Antonio Villaraigosa. But, “any scenario that would completely eliminate the redevelopment zones and state enterprise zones is a non-starter.”

Similarly, George Runner, the newest member of the Board of Equalization, said that raising taxes and making it tough on business isn’t a solution.

“Californians are confronted with a huge budget crisis.  The fact is for too many years we’ve been spending more money than we should.  More money has been going out than revenues coming in.” Runner said. “We can solve our budget problem and the best way to do that is by getting Californians jobs.  I’m going to be looking at this budget through that lens. I applaud the Governor for proposing difficult spending cuts.  But I can’t support proposals to hurt private sector jobs through punitive tax hikes.”

“Californians have already spoken on the issue of taxes by resoundingly rejecting every proposed tax increase on recent ballots.  A special election to hike taxes is a waste of taxpayers’ time and money. Certainly we have to make some hard decision and cuts are necessary. But if we make it harder for the private sector to create employment than this is the wrong way to go,” he said.

Eliminating enterprise zones is a big mistake, according to Runner.

“Enterprise zones are California ‘s only remaining public policy measure aimed at keeping private sector jobs in our state.  Abolishing them would be irresponsible.  Instead we should make the whole state an enterprise zone,” he concluded.

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.

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.

Sarting toda, the new HCD voucher fees are in effect.  Every application to the state will now cost $15 instead of $10.  Here is the HCD’s Voucher Fee Increase Memo.