The Democratic leadership responded to the Five Point Plan with this Letter.  Steinberg discusses the Enterprise Zone as follows:

You noted the need to fix redevelopment and enterprise zone programs, but you urge the Legislature to preserve their job generation capacity.  We agree.  We should point out, however, that both redevelopment and enterprise zone programs are major sources of the state’s fiscal problem (through additional state costs for schools and loss of state tax revenue).  Two respected non-partisan institutions, the Legislative Analyst and the Public Policy Institute of California, have raised serious questions about whether redevelopment and enterprise zones actually help with job creation and retention.

From the Sacramento Bee just now:

Assembly Republicans issued their own budget proposal a few days ahead of the Governor’s May revised budget.  There is no mention of Enterprise Zones in the Republican proposal.

Read the full article.

From the Sacramento Bee yesterday:

A business coalition pushed Wednesday for a grand state budget compromise that essentially merges Gov. Jerry Brown’s budget and GOPdemands for long-term pension and spending controls.The group of 12 — which dubs itself the Coalition for a California Financial Workout Plan — said voters should be allowed to decide on tax extensions as well as permanent fixes that address the “underlying conditions that got California in trouble.”

Members include the Silicon Valley Leadership Group, Los Angeles Chamber of Commerce, Bay Area Council and Sacramento Metro Chamber.

The coalition outlined a “Five-Point Plan” that includes tax extensions, a long-term spending control, reductions to public employee pensions, changes in the California Environmental Quality Act and a shift of responsibilities to local governments. The group also suggested that state leaders address abuses in redevelopment agencies and enterprise zones without eliminating them.

 Read the whole article here

The Senate Republicans made public their list of 53 demands in exchange for their vote to allow Jerry Brown to put the tax extensions on the June ballot.  Preservation of the EZ is on the list.  Assembly speaker John Perez said that the parties are now “farther apart” than they were before the list.

As reported at www.jobsandsafecommunities.com:

California Republican Party Opposes Governor’s Proposal to Eliminate Enterprise Zones

Says Legislature should make job creation a top priority and abandon the governor’s ill-conceived attempt to raise taxes

(Sacramento, CA)—At the urging of Board of Equalization member George Runner, the California Republican Party this weekend passed a resolution in favor of the successful Enterprise Zone Tax Credit program.

The resolution, which received unanimous support from party members in committee on Saturday, states that Governor Brown has broken his promise to voters by attempting to eliminate one of the most successful job creation programs in California—Enterprise Zones.

“We should be looking for ways to expand this program, not eliminate it,” stated Board of Equalization member George Runner, who also authored the resolution and is a long-time Enterprise Zone supporter. “Enterprise Zones create jobs, employ our returning veterans and save taxpayers hundreds of millions of dollars each year. Brown’s proposal pushes our state closer to a permanent Welfare state by eliminating employer incentives to hire people who were previously struggling to find a job. Just a few short months after promising to create jobs in California, Governor Brown is trying to eliminate one of the most important job-creating program in our state.”

Governor Brown proposed to eliminate Enterprise Zones are part of his January budget proposal. The program’s elimination will not only jeopardize California’s fragile economic recovery, it will result in a significant tax increase on California businesses.

“The Republican Party is continuing to fight for California jobs, and the support for this resolution is another example of our commitment to economic recovery and fiscal solvency. I hope that the governor abandons this ill-fated endeavor and works with the Legislature on finding common sense solutions to our budget deficit,” concluded Runner.

The resolution reads as follows:

Resolution Opposing Governor Brown’s Ill-Conceived Attempt to Eliminate California’s Enterprise Zone Tax Credit Program

Submitted by the Honorable George Runner

For consideration at the Spring Convention of the California Republican Party

Sacramento, California

March 18-20, 2011

Whereas, California businesses are struggling with economic recovery, burdensome regulations and high state taxes in the midst of the national economic downturn keeping unemployment at record high levels.

Whereas, Governor Jerry Brown – elected in November 2010 – promised to spur job creation and make California business friendly now proposes to eliminate one of the most successful programs that actually has created jobs in more than 40 communities across the state: the Enterprise Zone Tax Credit Program. 

Whereas, California’s landmark Enterprise Zone Tax Credit Program is an economic driver that has been proven to create jobs, spur economic development and keep businesses open.

Whereas, in 2010 the program created or retained more than 118,000 jobs statewide while providing employment opportunities for more than 415 veterans returning home from serving our country.

Whereas, in 2010 the program saved California’s taxpayers an estimated $211 million by providing work instead of welfare and paychecks instead of unemployment benefits to more than 23,000 citizens.

Whereas, the California Enterprise Tax Credit Program and other proven job creators should be expanded, not eliminated.

THEREFORE BE IT RESOLVED BY THE CALIFORNIA REPUBLICAN PARTY that members of the Legislature vote to oppose the elimination of the California Enterprise Zone Tax Credit Program and look for further ways to expand tax credit programs to spur economic growth.

John Coupal issued a stinging missive today highlighting just how much Brown has caved to the Unions.  While everyone else is “sacrificing”, the Unions and Brown have made minimal cuts.  His rhetoric and his actions have been far from consistent.  And at the Unions, its business as usual.

Bill LaMarr, executive director of the California Small Business Alliance, deftly responds to the Bee’s Board about teh EZ:

Made public yesterday is a list of the members comprising a coalition formed in support of the Enterprise Zone Program.  The group includes many diverse and other times divergent groups who have come together to support the EZ program.  View the Joint EZ coalition list.

California’s budget problems dominate today’s political arena.   Without question, the biggest systemic problem draining the budget is one that most politicians are afraid to even approach.  Of course it’s the pension system.  No one seems willing to call out the patent iniquity in the public versus private workforce.  Jerry Brown on Friday did his part to quell the opposition to true pension reform by removing someone who championed for reform.

No, it’s not the events in Wisconsin (although that should serve as a wake up call).  Rather it’s the legal memo detailing why repeal of the EZ is illegal.  Essentially, repeal of the EZ violates the Contracts and Due Process clause of the California and U.S. Constitutions.  The memo’s conclusions are that repeal:

• Constitutes “bait and switch” taxation
• Violates the U.S. and state Constitutions
• Would subject the state to refund claims that nullify the proposed budget savings
• Invites legal action to enjoin repeal
• Subjects local governments to taxpayer lawsuits; and
• Endangers California’s bond rating which could be downgraded

The memo is well researched and convincing.  I hope Brown’s camp is enjoying reading it as well.