California offers $700 million a year in tax credits to businesses who add or retain jobs in economically distressed neighborhoods. The governor proposed eliminating Enterprise Zones last year but couldn't win legislative approval. Now, Democrats hold supermajorities in both chambers - and Senate Leader Darrell Steinberg says it's time to revisit the issue.
Steinberg: "Just like on the
spending side, show us what you're producing."
But Craig Johnson with the California Association of Enterprise Zones says he thinks the credits are safe.
Johnson: "I don't anticipate the
governor making an announcement that he wants to eliminate the
program. That would surprise me. Will they try to
shrink the program - through rule writing and regulations?
Yes, I think so."
He says the program's elimination would cost the state nearly 125,000 jobs.
