The committee heard testimony from public policy academicians and members of federal and local government on the policy of enterprise zones, which are economically depressed areas that receive economic benefits from the federal government in order to attract business and investment. Questions have been raised on the effect of federal enterprise zone legislation on other cities or areas of cities which do not receive federal benefits. Secretary of Housing Kemp argued in favor of enterprise zones to encourage the creation of investment and business, which he called the essential element of a healthy tax base. Without a healthy tax base, cities may fail economically, as Bridgeport, Connecticut did earlier in 1991 when it declared bankruptcy.