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CA Hispanic Chambers of Commerce Send Letter Supporting Enterprise Zones to Legislative Leaders

Governor Brown announced yesterday that he had received the backing of, among others, the California Hispanic Chambers of Commerce for his budget proposals.

However, what the Governor’s press release does not mention is that memorandum sent from CHCC to legislative leadership specifically details the organization’s support for the Enterprise Zone program.

The following is the text of the memo:

The CHCC recognizes that California is in an unprecedented budget situation, and we recently met with the Governor to express our support of his plan to reduce ongoing expenditures by $12.5 billion and to let the voters decide to extend tax increases by $12.5 billion to address California’s immediate budget deficit and ongoing structural expenditures.

• The CHCC, by the same token, is also committed to growing California’s economy by taking specific actions to improve the state’s ability to maintain existing business and to reduce barriers for growing industries to expand at an accelerated rate.

Oppose Enterprise Zone Elimination

• Specifically, the CHCC believes it is counter productive to remove enterprise zones as part of California’s economic stimulus to maintain jobs in California.

• Enterprise zones were developed to assist specific geographic locations to provide regulatory relief, tax incentives and other inducements for businesses to locate in enterprise zones.

• Taking away these incentives at a time when fuel prices continue to climb, business sales have yet to show signs of significant rebound and businesses are struggling compounds our economic uncertainties.

• Thousands of Hispanic businesses throughout the state benefit from enterprise zone status. Taking away these benefits can result in only two outcomes; further reducing employment or closing a business.

• For every worker that loses their job due to the state abandoning enterprise zones, the state loses:
o State Income Tax from employed worker~
o Increased strain on social services
o Increased unemployment benefits
o Loss in state tax revenues to vendors supplying the businesses

• In San Joaquin County, where unemployment is among the highest in the state, 976 companies have received 14,815 hiring tax credit vouchers issued since 6/22/08.

• In the same county in 2010, the enterprise zones created 3,112 new jobs and retained 6,752 existing jobs. Ofthose new jobs, 780 people were taken off of public assistance to become fully employed.

The memo goes on to cite support for “meaningful regulatory reform” and a five year economic plan.

The Governor also included the California Black Chambers of Commerce and the Los Angeles Area Chamber of Commerce in his list of business organizations supporting his budget. But representatives from both of those groups were in Sacramento this week meeting with legislators specifically to express support for the Enterprise Zones.

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