Governor Brown has proposed a new budget for the 2013 fiscal year. The budget proposes some cost savings to be achieved through implementing new regulations via HCD. The following is the text of the budget summary:
Enterprise Zone Regulatory Reform
The Budget includes savings relating to new regulations for the Enterprise Zone program. The proposed regulations will accomplish the following reforms:
Limit retrovouchering by requiring all voucher applications to be made within one year of the date of hire.
Require third party verification of employee residence within a Targeted Employment Area.
Streamline the vouchering process for hiring veterans and recipients of public assistance.
Create stricter zone audit procedures and audit failure procedures.
These regulatory reforms will primarily affect Corporation Tax revenue, but will also have an impact on Personal Income Tax revenue. The regulations, in total, are expected to increase General Fund revenue by $10 million in 2012?13 and $50 million in 2013?14. The Administration will be pursuing further Enterprise Zone reform through legislation.