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Will Enterprise Zones be Spared in Budget Revise?

According to Los Angeles Times reporters Shane Goldmacher and Anthony York, that seems to be the case. The Times reported on Saturday that additional tax revenues* would be used, in part, to take the Governor’s proposal to eliminate Enterprise Zones out of the new budget proposal:

The governor would use an unexpected multibillion-dollar influx of tax receipts to fill the gap left in his budget by the shorter period of income tax increases. He would also use the new money to keep in place “enterprise zone” tax credits for businesses that hire workers from blighted areas. Brown originally proposed eliminating those tax credits to save the state $924 million.

The article claims that an intense effort was responsible for the shift:

Brown’s decision to retain enterprise-zone credits comes amid Republican opposition and an active campaign by businesses and others who hired multiple public relations firms and spent $130,000 on lobbying in the first three months of this year.

Reporter Anthony York made some similar suggestions on Friday’s KQED Capitol Notes podcast, but not with as much detail as offered in the L.A. Times article.

We won’t know for sure what the Governor’s new proposal will look like until it is released tomorrow. Some are warning that even if the proposal to eliminate the program is out of the Governor’s budget, that does not mean it cannot come back as part of an eleventh hour negotiation later. Others are suggesting that new opposition to the Enterprise Zones is being generated by setting up a relationship between last week’s announcement regarding the closure of some State Parks and the maintenance of the EZ tax credits.

*See this piece by Kevin Yamamura in the Sacramento Bee for an explanation of why revenues are not in line with projections.

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