Assemblymembers Medina, Bocanegra, and V.M. Pérez Issue Joint Statement on the Governor’s May Revise and Enterprise Zones:
SACRAMENTO—In a united effort, Chairman Jose Medina, with the Assembly Jobs, Economic Development, and the Economy Committee, and Chairman Raul Bocanegra, with the Assembly Revenue and Taxation Committee, along with past Assembly Jobs Chairman, V.M. Pérez, released the following joint statement today regarding Governor Brown’s May Revision and Enterprise Zones.
“Today’s May Revision to the budget makes clear that we are in the process of an economic recovery,” said Assemblymember Jose Medina (D-Riverside), Chair of the Jobs, Economic Development, and the Economy Committee. “I recognize that enterprise zones remain one of the last tools for California businesses and believe if implemented properly, will continue to serve as a catalyst for the transformation of low-income and historically underserved neighborhoods. The legislature has been engaging in long-term discussions for many years regarding enterprise zones to ensure they work more efficiently for local residents facing barriers to employment. The May Revise broadens that discussion and puts new incentives on the table.
My colleagues and I stand committed to helping underserved communities and believe the overall discussion benefits from the alternatives laid out by the Governor. Rather than tinkering with the individual elements of a tax credit, the May Revise signifies the Governor’s openness to a much broader discussion about community revitalization.”
The three Assemblymembers have been engaged with stakeholders to develop comprehensive changes to the current enterprise zone program to ensure it continues to help California businesses willing to invest in economically depressed areas, hire local residents, and help underserved communities.
“We appreciate the Governor’s proposal regarding Enterprise Zones. However, my colleagues and I believe that his proposal would essentially end the one economic development tool that local governments still have at their disposal,” said Assembly Revenue and Taxation Committee Chair Raul Bocanegra (D-Pacoima). “While reform of the Enterprise Zone program is absolutely necessary, at a time when our State’s unemployment rate is still near double digits – and much larger in some communities – it is imperative that we ensure that this critical tool for job creation is maintained. We look forward to continuing to work with stakeholders and will have a formal proposal for consideration soon.”
“The Governor shows both compassion and moral certainty about the underlying inequities in our current school funding formulas that justify his advocacy for the Local Control Funding Formula, and I applaud that,” said Assemblymember V.M. Pérez. “I only wish he would apply a similar lens when it comes to job creation and economic development in our most economically depressed areas of the state. The Enterprise Zone program acknowledges this reality and targets specific incentives to promote new businesses and job creation in the communities that need it the most. Though I believe we could do more to improve the business climate throughout the state, I do not agree with diluting Enterprise Zones that are intended to serve our most struggling communities.”