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CAEZ Comments On Budget

Here is a press release issued today by the California Association of Enterprise Zones:

SACRAMENTO, Calif., Sept 29, 2008 /PRNewswire via COMTEX/ — Commenting on the state budget just passed, “The California Association of Enterprise Zones (CAEZ) appreciates that the Governor and the Legislature could have considered larger and additional cuts to various economic programs throughout the state and did manage to keep many programs intact, including the Enterprise Zone (EZ) Program,” said Lydia Moreno, San Diego Enterprise Zone Coordinator. “However, we are concerned about the impact of the various tax credit and Net Operating Loss provisions of the budget and how they will impact small businesses in our state, especially those located in EZs, which are comprised of distressed communities.” As managers of the EZs in California, the CAEZ is keenly aware of the difficult decisions that had to be made during this tough budget year.
With the highest unemployment rate in the history of California of 7.7 percent, putting the state in a tie with Mississippi for the third-highest jobless rate in the U.S., now is the worst time to add to the costs of doing business in our state. Lydia continued, “We are concerned these small businesses will face higher costs and will have trouble making ends meet, which could impact their ability to keep and retain employees. Even the businesses within EZs, where there have been added benefits for employers to stimulate job growth in the highest unemployment areas, will not be able to take advantage of those cost-cutting measures. Additionally, attracting companies to California will be difficult.”
“In rural areas, it’s worse,” said Tonya Dowse, Siskiyou County Economic Development Director and EZ Coordinator. “The jobless rates already are high in our area. At least being in an EZ had helped to attract businesses that might not have come here. Now the benefits of being in an EZ truly are hindered.”
“We look forward to working with the Legislature next year to find solutions that will help stimulate our economy and grow jobs. Additional jobs will help keep California strong by infusing more revenue into the state to help keep important programs that serve the people,” said Lydia Moreno.

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