California Labor Federation Applauds Signing of Historic Economic Development Initiative

AB 93 and SB 90 reform broken enterprise zone program, create incentives for good jobs

California Labor Federation Executive Secretary-Treasurer Art Pulaski joined Gov. Brown and other leaders this morning in San Diego for the signing of AB 93 and SB 90, and issued the following statement:

“The enterprise zone program represented some of the worst abuses of taxpayer money this state has seen. Instead of using taxpayer funds to create jobs, the broken enterprise zone program subsidized strip clubs, card rooms and big corporations like Walmart. Enterprise zones didn’t create new jobs. The program actually provided a perverse incentive for companies to fire workers and destroy good jobs to move to other areas of the state and hire at minimum wage. That’s not economic development. That’s the definition of wasteful.

“We thank Gov. Brown for his courage in stopping this waste of taxpayer money, and for his leadership in putting together an economic development package that bolsters middle-class job growth. With the signing of AB 93 and SB 90, California now has real economic development programs in place that create good, new jobs. The Governor’s economic development initiative will help California create the kinds of jobs that build communities and rev up our engine of economic growth.

“The California Labor movement is proud to have fought alongside the Governor and a bipartisan group of lawmakers to secure these important victories for all working people. Our economy is finally starting to emerge from the depths of recession that’s buried families for far too long. With this economic development plan in place, California has shown our commitment to smart, strategic use of tax dollars to fuel the creation of good jobs.

“Instead of subsidizing low-wage corporations, we’re playing to the strengths of innovation and a solid middle class that built this state’s economy into one of the greatest economies the world has ever known. We look forward to working with the Governor, lawmakers and businesses to implement these new laws and create the good jobs our state’s families need.

“This is a great day for California.”

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