Santa Ana officials beg Sacramento’s Democrats to save Enterprise Zones

City of Santa Ana, Downtown Orange County

Advisory: CITY OFFICIALS URGE SANTA ANA COMMUNITY TO OPPOSE ASSEMBLY BILL 93 – ELIMINATION OF ENTERPRISE ZONES

SANTA ANA, CA (June 24, 2013) – City officials are urging the entire Santa Ana community to write to your legislators TODAY and tell them you support Enterprise Zones! Assembly Bill 93 will essentially eliminate Enterprise Zones if it is passed at tomorrow’s vote. It is CRITICAL that your legislators know you oppose the measure and here are the reasons why:

REASONS FOR NOT ELIMINATING THE SANTA ANA ENTERPRISE ZONE (EZ) TAX INCENTIVES

The California Enterprise Zone Program targets economically distressed areas using special state tax incentives to promote business investment and job creation.

· Over 2,000 companies have been issued Hiring Credit Vouchers in Santa Ana since the EZ was designated on June 8, 1993. 424 businesses are currently taking advantage of the Zone in 2013.
· Each voucher represents a job for an individual having a “barrier” to employment such as being economically disadvantaged or collecting SSI.
· Santa Ana has issued 42,529 Hiring Credit Vouchers to employers since 1993.
· Santa Ana has issued 3,123 Hiring Credit Vouchers to employers in FY2012-2013.
· Each voucher represents the potential of over $37,000 in State tax credits to the employer over a five-year period. By lowering the tax burden companies can hire more staff, buy new equipment, and advertise more, thereby helping them grow and prosper in today’s economic climate.
· The Enterprise Zone gives California cities a competitive advantage with other States in terms of business attraction and retention.
· Eliminating the Enterprise Zone will further cement the notion that California is not “business friendly”
· Many companies have made large financial commitments to locate to the Enterprise Zone because State Tax incentives were available. Eliminating these incentives will cause thousands of businesses to consider locating out of the area.
· Santa Ana leverages Workforce Investment dollars to qualify eligible employees for the Enterprise Zone.
· Companies made financial business decisions to locate to Santa Ana on the perception that the Enterprise Zone would be active for a 15 year designation period. If eliminated, lawsuits are very likely against the State and the City.
· Companies have expressed to the City that they will be leaving California if the Enterprise Zone is eliminated.

In 2006, HCD commissioned a report that evaluated the success of Enterprise Zones in spurring economic recovery. The report shows that on average, within Enterprise Zones between 1990 –2000:

· Poverty rates declined 7.35 percent more than the rest of the state.
· Unemployment rates declined 1.2 percent more than the rest of the state.
· Household incomes increased 7.1 percent more than the rest of the state.
· Wage and salary income increased 3.5 percent more than the rest of the state.

This is the wrong approach for the legislature if the goal is to keep California working. Governor Brown’s latest idea will only harm Enterprise Zones – the only remaining tool for California government to help stimulate economic growth and attract and retain jobs, especially for the minority and disadvantaged communities.

For additional details, please visit http://www.enterpriseca.org/.

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