Governor Brown’s 2013 Budget Calls for Enterprise Zone Reform

JBToday, Governor Brown’s 2013 budget outlines new reforms for the State Enterprise Zone Program. The budget is available online at

The proposed regulations will accomplish the following reforms:

  • Limit retrovouchering by requiring all voucher applications to be made within one year of the date of hire.
  • Require third party verification of employee residence within a Targeted Employment Area.
  • Streamline the vouchering process for hiring veterans and recipients of public assistance.
  • Create stricter zone audit procedures and audit failure procedures.

These regulatory reforms will primarily affect Corporation Tax revenue, but will also have an impact on Personal Income Tax revenue. The regulations, in total, are expected to increase General Fund revenue by $10 million in 2012‑13 and $50 million in 2013‑14. The Administration will be pursuing further Enterprise Zone reform through legislation.