The attached Fact Sheet highlights how many jobs have been created by the EZ program.  These are numbers that seem to be missing from the debate and certainly from the PPIC analysis.  For example, the EZ program put into the workforce 18,317 Californians who were previously on public assistance.

Here’s what Bill Allen had to say today about the Governor’s proposal to eliminate the EZ program:

If anything, the Governor should strengthen his commitment to the Enterprise Zone Program in these difficult economic times as a key mechanism to revitalize economically-challenged areas by providing incentives that create high-wage jobs and investment in these communities. By responsibly doing so, he would not only strengthen local economies, but strengthen the state’s long-term economic foundation as well.

Too many of our state and local residents desperately need jobs. Until such time when this is no longer the case, there will always be a critical role for Enterprise Zones. This is one program our elected officials cannot afford to eliminate.

Read the entire Fox & Hounds editorial here.

Our Weekly published an article outlining how the Enterprise Zone program has helped provide employment in areas that house high percentages of minorities.  Taking away the EZ program would disproportionately affect African Americans.

Enterprise zones have been instrumental in revitalizing inner city areas, said [Assemblymember Isadore] Hall. To target them strikes at the very heart of many minority areas, he said.

Read the full article.

Trying to beat the Governor to the punch, Assemblyman Perez intends to propose legislation aimed at making the EZ program more accountable and efficient.  Read the entire Tribune Weekly Chronicle article.

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.

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.

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

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.