Kristin Schumacher is a policy analyst at the California Budget Project


Enterprise Zone Reform at a Critical Juncture

, which would substantially reform the program, passed out of the Senate Committee on Budget and Fiscal Review yesterday and is scheduled to be heard on the Senate floor this afternoon.

Earlier this month, we released a report detailing the escalating costs and serious shortcomings of the EZ Program. This report included a set of policy recommendations for improving the EZ Program and making it more cost-effective, with a focus on how EZ hiring tax credits are awarded. AB 93 would move California in the right direction on enterprise zones and economic development by improving the tax credit in ways that could eliminate the most severe program inefficiencies.