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Business Owners React To Eliminated Funding For Enterprise Zones

Ever heard of an enterprise zone? Gov. Jerry Brown wants to eliminate them and supporters are asking him to reconsider.

Business owners in distressed areas of California are asking lawmakers not to eliminate funding for enterprise zones. They say it will be another blow to the state’s economy.

Gov. Brown’s budget plan would eliminate state tax credits for California’s 42 enterprise zones. That would save the state about $900 million. Trent Barnes owns a couple of Ace Hardware stores in a Long Beach area enterprise zone. He said the credits stimulate growth in depressed parts of the state.

"I feel it’s one element that helps us – gives us a little bit of an edge in a more difficult area to do business," Barnes said.

Barnes and other advocates say the zones are established with the understanding they’ll be there for 15 years – and to stop the credits now is unfair. Brown has also proposed eliminating redevelopment agencies, which funnel money toward local projects. That’s sparked a contentious debate between city leaders and the Governor.

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