Study Questions Effectiveness of Enterprise Zones

By Marc Garman

6/11/09

A study just released by the Public Policy Institute of California has found that the Enterprise Zone program in the state of California does little or nothing to create jobs. The zones, which provide tax breaks or other incentives in designated areas, are intended to stimulate business and job growth.

The study, by Jed Kolko and David Neumark, conclude that the program, which costs the taxpayers approximately $500 million per year, has had no apparent impact.

The idea of creating Enterprise Zones on Mare Island to stimulate growth has been a “darling” of Vallejo Vice Mayor Hermie Sunga for some time. This new report calls the entire concept into question. Sorry Hermie.

FULL REPORT HERE