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Study Says Enterprise Zone Not Creating Jobs
Aired 6/11/09
A new report says a California economic development effort has failed to achieve its key goal of increasing jobs for disadvantaged workers. The program is intended to boost business investment in economically depressed areas.
A new report says a California economic development effort has failed to achieve its key goal of increasing jobs for disadvantaged workers. The program is intended to boost business investment in economically depressed areas.
The enterprise zone program is the state's largest economic development effort.
But a report from the the Public Policy Institute of California says the program, on average, has no effect on job or business creation.
The PPIC report recommends a re-examination of the program, which offers tax credits and incentives to businesses in 42 designated zones throughout the state.
The program's cost in the next fiscal year is estimated at nearly half a billion dollars.
Report co-author Jed Kolko says continuing to pay for the enterprise zone program without evidence of its benefits is a waste of money.
California's budget crisis has spurred debate over the effectiveness of the enterprise zone program.
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