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A recently released
“Cost-Benefit Analysis of California’s Enterprise Zone Program” conducted by
Applied Development Economics (ADE), an independent economic research firm,
has proven that the State’s Enterprise Zones are achieving their intended
purpose by helping the most distressed areas of the state to stop decay and
stimulate economic and job growth for California residents.
Enterprise Zones bring a significant net benefit to California. In the year
2002 alone, the State realized a net gain of $249 million to the State’s
General Fund due to the Enterprise Zone Program, not even accounting for
multiplier (spin-off) effects, which would double the revenues. The
return on the State program’s investment is 1.35 times the State’s cost!
The State’s Zones create jobs and positive social benefits that equate to
additional economic benefits for the State. Over 44,000 individuals were
vouchered (Zone-eligible employment) in 2002 (182,000 total vouchered since
the program began. Of this total, the Yuba-Sutter program has provided over
10,000 hiring tax credit vouchers.) Many of the employees were previously
drawing some form of public assistance. Over $40 million in cost savings
to public assistance can be assumed in 2002 alone . . . plus, these
California residents are now earning income!
Zone employment growth far outpaces overall employment growth in California.
Overall, employment in California in 2002 is almost 117 percent of what it
was ten years ago. In stark contract, employment in Zones in 2002 is
approximately 170 percent of what it was in 1992, almost a doubling of
employment in a decade. Previous studies, such as the August 2001 study by
the California Research Bureau, concluded, “California Enterprise Zones have
grown jobs twice as fast as they would have without the Zone incentive.”
More information about the zone program and its benefits can be gained by
accessing the Yuba-Sutter Enterprise Zone’s website at www.yubasutterez.com
or contact the Zone Manager at 741-6463. A link to the full cost-benefit
analysis report is also available on the Zone’s homepage that can be
downloaded. |
