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Budget Reaction Roundup 3

The Contra Costa Times reports on the reaction of local officials in the various Bay Area zones as well as some small businesses that rely on the program:

Proponents of the program argue that the tax credits for hiring workers and investing in capital equipment in economically depressed neighborhoods have been key to creating business activity and jobs there.

More than 100 Richmond businesses have taken advantage of the tax credits over the 20 years they have been available, said Thomas Mills, the city’s enterprise zone manager.

Ending the program might cause businesses to leave in search of a larger pool of qualified workers in cities with more attractive housing options and less crime, Mills said.

“This is one of the few incentives available for a business to come to a city like Richmond, and it gets them to give us a closer look,” he said. “Without it, impressions of what the city is would dominate.”

Two Richmond businesses backed Mills’ view, saying the enterprise zone was key to their decisions to move there.

The editorial board of the Sacramento Bee published a very critical editorial against the program.

Folks in other states are looking at what California up to, as in this editorial appearing in the News and Tribune from Indiana.

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