Appeal-Democrat: Enterprise zones do deliver

By Mary Hanson, Yuba-Sutter Enterprise Zone manager

And here we go again. “Enterprise zones fail to deliver. Enterprise zones play favorites. Enterprise zones are costing California millions.”

Nothing could be further from the truth.

The California Budget Project once again publishes critical articles and commentaries concerning the zone program’s effectiveness. The most recent report comes to the same conclusion — end the program. These negative reports continue to focus on employment and fail to examine unemployment rates, poverty rates and specific household wage and salary data. Focusing only on employment within zones ignores other very important economic factors affecting enterprise zones. Research has shown that enterprise zones help reduce poverty rates, lowers unemployment rates, provides higher wages, increases household income levels and fosters greater community investment through private sector businesses. Jobs in turn create revenue for the state.

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In 2010, the Yuba-Sutter Enterprise Zone processed 2,569 tax credit applications for local businesses, and that translates to 350 new jobs created and 2,219 jobs retained with an average hourly wage of $9.81.

Of those hired, 2,034 individuals hired were approved under the Targeted Employment Area category. The Targeted Employment Area characteristics are individuals residing in areas of our counties that are more than 60 percent below the state’s average median income and areas where unemployment is as high as 36 percent. Individuals hired and retained were from very low income households, individuals that were previously on public assistance programs, and individuals that were unemployed.

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Enterprise zones do deliver greater economic opportunities for businesses. Enterprise zones do play favorites by working in areas historically blighted and struggling to help achieve economic independence and parity. Enterprise zones do pay huge dividends to the State of California by providing an environment where businesses can not only survive in tough economic times, but also flourish and expand.

Read the entire article here.