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Enterprise Zone Program May Continue as Budget Target

January 8, 2013

The media has speculated in recent weeks that Gov. Jerry Brown’s FY 2012-13 budget plan, expected to be released on Thursday, may contain a proposal to cut or limit the Enterprise Zone tax credit program.


To prepare for this possibility, the League has compiled a history document on Enterprise Zones, as well as talking points that include actions that city officials can immediately take to communicate the importance of the Enterprise Zone program to legislators and the public.

In 2011, Gov. Jerry Brown proposed the elimination of all enterprise zone tax incentives. However, the elimination plan was abandoned in the Governor’s  2011 May Revise in favor of reform because the two-thirds vote threshold for elimination could not be reached. The Department of Housing and Community Development (HCD) was expected to begin reform discussions in late 2012. However following the November 2012 election, which produced Democratic supermajorities in both houses, the potential now exists for another legislative effort to reform or eliminate the Enterprise Zone program.

City officials are encouraged to review the League’s talking points and action  steps to help protect the program now. Raising your legislator’s understanding of  the importance of your community’s enterprise zone program before they have to making decisions on cutting or limiting the program will go a long way in helping the League’s lobbying efforts.

How Local Governments Can Help

Action steps city officials can take include:

  • Call or write your Assembly Member and Senator. Help legislators understand the importance of your community’s program. Tell your community’s success stories. Search legislator contact information online.
  • Write a letter to the editor. Share your success stories and highlight the importance of this program for the economic development of your community.
  • Join the California Association of Enterprise Zone’s coalition. Visit CAEZ’s website to join a coalition of local governments and business interests with the goal of protecting Enterprise Zones.
  • Adopt a Resolution Supporting Enterprise Zones. The League has posted a sample resolution on its website.

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