State's enerprise zones need a fresh look from Legislature.

California's enterprise zone program is getting a lot of attention these days. It turns out the attention is sorely needed.

The program started a couple of decades ago. Its purpose is to spur economic development by giving companies tax breaks when they hire disadvantaged workers and invest in poor parts of the state. The central San Joaquin Valley has five zones, including one in Fresno. The others are in Madera, Porterville, Lindsay and Merced/Atwater.

The Assembly Committee on Jobs, Economic Development and the Economy recently held hearings on the program. Chairman Juan Arambula, D-Fresno, said afterward that "a major overhaul is necessary."

"I had no idea that the state was losing so much money without knowing what it was getting in return," he said. "The program was allowed to grow almost uncontrolled."

Has it ever. The cost in tax revenue to the state in 1993 was set at $15.6 million. By 2003, that had grown to almost $300 million.

A number of problems have been identified. The tax credits -- as much as $34,000 per employee -- have often been paid to companies for employees who live in upscale neighborhoods. Companies in one zone have been able to get vouchers from other, more compliant enterprise zones. Workers who've been laid off are eligible -- even if they're hired as executives making six-figure salaries.

The non-partisan California Budget Project has identified its own list of problems, including the fact that 81% of the credits are paid to companies with assets of $100 million or more, while small businesses -- assets of less than $1 million -- get only 1.4% of the credits.

One of the recommendations from Arambula's committee is to make it easier for small businesses to get more of the money.

Some targeted neighborhoods have improved to the point that it's hard to justify their inclusion any longer.

California's enterprise zones have been effective in many cases. But like many other government programs, once established, they just sort of cruise along, without much oversight and growing all the time. Conditions change, but the nature of the programs doesn't. It's a sort of government version of attention deficit disorder.

The Legislature needs to closely examine enterprise zones. We believe the program still has merit, but it's clear that neglect has caused it to lose much of its effectiveness. Some of the zones, including Fresno's, are set to sunset this year or next. Now's the time to revisit and reform this program.