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Budget Passes Without Enterprise Zone Elimination

Both houses of the Legislature passed a budget yesterday, the first time since 1933 that a budget has been passed by the June 15 constitutional deadline. AB 103, the budget trailer bill which included the Governor’s May proposal to severely reduce the Enterprise Zone program, as not a part of the budget. Therefore, as of now, the Enterprise Zone program remains unchanged.

The Governor has 12 days, until June 30, to sign or veto the budget. While it would be highly exceptional for him to veto the budget, there are many reasons why he might do so anyway. The budget does not include any of the tax increases that Brown had been campaigning for, and it also includes a series of “gimmicks” that the Governor had promised to veto if passed. However, it was noted in the Sacramento Bee that the Governor seemed to indicate a willingness to tolerate some gimmicks in a press conference held on June 14. The Governor will be holding press events today, and there are currently rumors that he will in fact veto it in order to pressure the Legislature to give him what he wants.

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