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Video of the Budget SubCommittee 4 on State Administration and Revenue & Taxation Committee from Feb. 7

The following is the unedited four hour video of the Joint Assembly Hearing – Budget SubCommittee #4 on State Administration and Revenue & Taxation Committee from Feb. 7. The first 2:45 covers the Enterprise Zone topic, and from there to the end of the video is the hearing on Redevelopment. This video as well as the remainder of the Redevelopment discussion can also be found at

Here is the official agenda of the hearing. Here is the handout provided by LAO explaining their recommendation to eliminate Enterprise Zones.

The League of California Cities published this summary:

For the second time in less than a week, city officials from across the state traveled to Sacramento en mass to voice their opposition to Gov. Jerry Brown’s proposal to eliminate redevelopment agencies and enterprise zones at yesterday’s Assembly Budget Subcommittee No. 4 hearing. Monday’s hearing was a joint committee comprised of the Assembly Budget Subcommittee No. 4 on State Administration and the Committee on Revenue and Taxation. Approximately 150 city, redevelopment and enterprise zone officials attended the hearing and expressed their opposition. Please see the Feb. 3, 2011 issue of City Advocate Weekly, for a discussion of the Senate Subcommittee No. 4 hearing on the Governor’s proposal, where city officials also testified in opposition.

Conflicting data on the effectiveness of enterprise zones dominated the first hour of testimony. Public Policy Institute of California Research Fellow Jeb Kolko contended that enterprise zones have no effect on unemployment. University of Southern California Research Fellow Charles Swenson argued that they do, in fact, lower unemployment as well as poverty rates in the state. Swenson also warned the Subcommittee that if enterprise zones are eliminated, the \state may see an unexpected unemployment insurance cost of up to $600 million.

The aspect of the proposal which would wipe out prior year’s earned enterprise zone tax credits was also discussed. It was noted that voiding prior year’s credits could hurt the state’s credibility with businesses and result in lawsuits.

Monday’s hearing was also especially weighted toward Legislative Analyst Office (LAO) and Department of Finance (DOF) testimony. In discussing redevelopment, LAO and DOF presented no new information. They once again attempted to justify the Governor’s proposal despite the lack of independent economic impact analysis assessing the real world impacts that would be felt across the state should the proposal to end redevelopment and enterprise zones be passed.

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