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La Opinión Story on Demographics of Enterprise Zones

The following appeared in the Spanish newspaper La Opinión. Translation is courtesy of Google, it’s a little rough.

The program of the California Enterprise Zone (CEZ) benefits mainly the areas where there is higher unemployment and greater concentration of minorities, argues a study released this week.

According to numbers provided by Communities to Save Enterprise Zones, a group opposed the governor’s plan to dismantle the program and channel funds into other areas, the unemployment rate in the CEZ sites operate, is 40% above the state average. He also argues that income per capita is a third of them prevailing in California, and the level of poverty is 60% larger.

“The purpose of enterprise zones is to retain and attract investment, and give those living in these communities the tools to create jobs and fight poverty,” said Roger Salazar, spokesman for the organization.

The data were obtained from an analysis of Employment Target Areas (TEA) of the Census, which are located within the 42 business areas recorded. In some of these places, the per capita income to two-thirds drop below the state average.

In December 2010, more than one in six employees based in California TEA was unemployed. In places like Delano, suffering from a high proportion of seasonal employment, the proportion was one in three.

Gov. Jerry Brown has proposed the elimination of CEZ, California which cost 1.700 million dollars a year, as part of its austerity program. Brown says that the CEZ no big deal to bring the state’s economy, as “just move money from one place to another.” The governor also wants to get rid of the 424 Economic Recovery Agency (CRA) in the state.

Companies operating within the CEZ enjoy generous exemptions, including a desagravación that may amount to $ 37.400 for each job created.

In Los Angeles there are about ten enterprise zones, a total of 42 statewide, including the downtown, Sylmar, Warner Center, East Los Angeles and Hollywood.

The fate of CEZ is currently held by state Capitol, where a group of legislators introduced a motion (AB101) aimed at their elimination. CEZ program has the support of members of both major parties, and in Los Angeles, the City Council.

A recent analysis of California Budget Project (CBP), a nonpartisan research center in Sacramento, said that the main beneficiaries of the CEZ are large corporations – through Desagravo this offer.

According to Jean Ross, executive director of CBP, the program’s cost has increased an average of 35% per year since this was implemented in 1986. In contrast to the analysis of the Communities to Save Enterprise Zones, says Ross, the program’s benefits have not been well targeted to impoverished areas supposedly proposed benefit.

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