Governor Brown's budget plan would eliminate state tax credits for California's 42 enterprise zones. That would save the state about 900 million dollars. Trent Barnes owns a couple of Ace Hardware stores in a Long-Beach area enterprise zone. He says the credits stimulate growth in depressed parts of the state:
"I feel it's one element that helps us - gives us a little bit of an edge in a more difficult area to do business.
Barnes and other advocates say the zones are established with
the understanding they'll be there for 15 years - and to stop the
credits now is unfair. Brown has also proposed eliminating
redevelopment agencies, which funnel money toward local
projects. That's sparked a contentious debate between city
leaders and the Governor