Enterprise Zones:
Lessons From the Maryland Experience
PEMD-89-2: Published: Dec 15, 1988. Publicly Released: Dec 15, 1988.
Additional Materials:
- Full Report:
Contact:
(202) 512-5885
contact@gao.gov
Office of Public Affairs
(202) 512-4800
youngc1@gao.gov
Pursuant to a congressional request, GAO studied the enterprise zone program in Maryland to identify issues for the possible development of a federal program, focusing on: (1) program cost offsets; (2) employment growth; (3) program effects on workers; (4) reductions in welfare dependence; and (5) the effectiveness of tax incentives and other local development strategies.
GAO found that: (1) both Maryland and proposed federal legislation sought to establish zones to promote private investment in economically distressed areas; (2) program-related increases in employment could lead to net increases in economic activity and program cost offsets; (3) the Department of the Treasury estimated that a federal program could cost $4.75 billion over the first 6 years of operation and assumed that the program would redistribute, but not increase, economic activity; (4) the employment growth experienced in the three Maryland zones investigated was not attributable to the program, making cost offsets or reductions in welfare dependence unlikely; (5) participating employers were more likely to consider market access and site characteristics than such program benefits as relaxed regulatory practices, financial inducements, and government assistance; and (6) participating employers were more likely to be influenced by financial incentives in making hiring and investment decisions.
Matter for Congressional Consideration
Status: Closed - Not Implemented
Comments: The new administration is proposing enterprise zone legislation with major differences from the bill GAO examined.
Matter: The GAO assessment of the Maryland experience does not show that enterprise zones are effective. If Congress decides to introduce a federal program along those lines, the program should be a modest demonstration rather than the large effort proposed in several bills.
Explore the full database of GAO's Open Recommendations
»
Nov 22, 2019
-
Climate Resilience:
A Strategic Investment Approach for High-Priority Projects Could Help Target Federal ResourcesGAO-20-127: Published: Oct 23, 2019. Publicly Released: Nov 22, 2019.
Oct 8, 2019
-
Puerto Rico Electricity Grid Recovery:
Better Information and Enhanced Coordination Is Needed to Address ChallengesGAO-20-141: Published: Oct 8, 2019. Publicly Released: Oct 8, 2019. -
Recuperación De La Red Eléctrica En Puerto Rico:
Se Necesita Mejor Información y Coordinación para Enfrentar DesafíosGAO-20-143: Published: Oct 8, 2019. Publicly Released: Oct 8, 2019.
Jul 23, 2019
-
Disaster Assistance:
FEMA Has Taken Steps toward Better Supporting Individuals Who Are Older or Have DisabilitiesGAO-19-652T: Published: Jul 23, 2019. Publicly Released: Jul 23, 2019.
Jun 28, 2019
-
2017 Disaster Relief Oversight:
Strategy Needed to Ensure Agencies’ Internal Control Plans Provide Sufficient InformationGAO-19-479: Published: Jun 28, 2019. Publicly Released: Jun 28, 2019.
Jun 25, 2019
-
Emergency Management:
FEMA Has Made Progress, but Challenges and Future Risks Highlight Imperative for Further ImprovementsGAO-19-617T: Published: Jun 25, 2019. Publicly Released: Jun 25, 2019.
Jun 13, 2019
-
Army Corps of Engineers:
Process for Selecting Section 219 Projects for Funding Could Be StrengthenedGAO-19-487: Published: Jun 13, 2019. Publicly Released: Jun 13, 2019.
Jun 12, 2019
-
Emergency Management:
FEMA Has Made Progress, but Challenges and Future Risks Highlight Imperative for Further ImprovementsGAO-19-594T: Published: Jun 12, 2019. Publicly Released: Jun 12, 2019.
Apr 11, 2019
-
Priority Open Recommendations:
Small Business AdministrationGAO-19-371SP: Published: Apr 4, 2019. Publicly Released: Apr 11, 2019.
Apr 8, 2019
-
Small Business Administration:
Key Entrepreneurship Programs and Activities Do Not Specifically Target Historically Black Colleges and Universities, but Collaboration Exists with Some SchoolsGAO-19-328R: Published: Mar 7, 2019. Publicly Released: Apr 8, 2019.
Looking for more? Browse all our products here