Los Angeles Business Journal: Battle Looms on Enterprise Zones

Howard Fine writes in yesterday's Los Angeles Business Journal probably the most balanced and accurate article I've seen yet on California EZs. I'm really quite impressed.

Here's a sample:

But now, those enterprise zone tax credits - the state's primary economic development tool - are under attack in Sacramento as a drive to reform the 20-year-old program gathers steam. That drive could jeopardize the renewal of 18 enterprise zones throughout the state that expire later this year, including the one where Cisco Bros. is located. It also could kill an attempt by Long Beach city officials to offer tax incentives to keep Boeing Co.'s aerospace operations - and 6,500 jobs -in that city. "You look at what has happened to manufacturing in Los Angeles County and then realize that the enterprise zone is the only state program we've got here to support manufacturing and the good middle-class jobs that it brings," said Robert Swayze, manager of economic development for the City of Long Beach.

He also refers to the California Budget Project as a "liberal think tank"; all of the other articles I have read describe it as "non-partisan" despite some pretty high-profile backers.

I also found this interesting statement that I'd like more information about:

Meanwhile, the Schwarzenegger administration is already moving ahead with its own, more modest reforms. Officials have proposed regulatory changes that would, among other things, eliminate the ability of employers to apply the tax credits retroactively to workers already hired. "There are areas of the program where the lack of clarity in the regulations has led to unforeseen consequences. Those are the areas where we are tightening," said Janet Huston, director for communications and government affairs with the state Department of Housing and Community Development. Huston said the regulatory changes could be completed by this summer.

Go read the whole thing.