It is my understanding that you will soon be releasing your May Revise, at which time you will present a new solution to the budget deficit. On behalf of all businesses located in Enterprise Zones, I am writing to ask you to reconsider your proposed elimination of the successful Enterprise Zone Tax Credit program.

I am keenly aware of the sharp impact the recession had on every aspect of our state. Like you, I am working every day to keep my employees working and doors open while maintaining the same quality of service with significantly less revenue.

Enterprise Zones are an investment in our communities and the future fiscal health of our state. They make good business sense and good budget sense.

Enterprise Zones help bring entire communities out of poverty. They provide good-paying jobs to those who previously had significant barriers to employment. At a time when we’re fighting to put people back to work, Enterprise Zone tax credits provide businesses with a powerful incentive to spur economic growth. Simply, the program helps me stay open for business in California.

But Enterprise Zones are more than just a tool for businesses; they provide hundreds of millions of dollars in budget savings every year. The Unemployment Insurance Fund is currently $10 billion in debt. Last year alone, Enterprise Zone businesses took more than 2,000 people off of unemployment insurance benefits and gave them jobs, which saved taxpayers more than $31 million. The program also took an additional 1,200 people off of taxpayer-funded public assistance programs like food stamps.

As the former Attorney General, you know more than most the abysmal and dangerous recidivism rate we’re struggling with here in California. Unfortunately, a felony record is a major barrier to employment for many recently released inmates. But studies also prove that gainful employment is one of the strongest variables that stops people from reoffending. Enterprise Zones provide tax credits to businesses that hire ex-offenders, helping to prevent more than 2,400 employees from becoming part of our revolving-door criminal justice system.

In one year, it is estimated that this ex-offender hiring tax credit saves our beleaguered budget as much as $120 million.

All told, the budget savings associated with the Enterprise Zone Tax Credit program prove that it is an important part of our future fiscal stability and health.

I sincerely hope that you reconsider eliminating the Enterprise Zone Tax Credit program, which has proven to create and save jobs in this bad economy as well as provide significant budget saves at a time when every penny counts.