Senate President Pro Tem Darrel Steinberg responded to the Coalition for a California Financial Workout Plan in a press release and letter today. This was the business coalition that had earlier sent a five-point plan to the Governor and Legislature. The coalition had called for reforms to be made to the Enterprise Zone program, but to “fix them in a way that preserves their job generation capacity.”
In addressing this point, Senator Steinberg had the following to say:
You noted the need to fix redevelopment and enterprise zone programs, but you urge the Legislature to preserve their job generation capacity. We agree. We should point out, however, that both redevelopment and enterprise zone programs are major sources of the state’s fiscal problem (through additional state costs for schools and loss of state tax revenue). Two respected non-partisan institutions, the Legislative Analyst and the Public Policy Institute of California, have raised serious questions about whether redevelopment and enterprise zones actually help with job creation and retention.