New Jersey "squandered" $ 11 billion on corporate tax cuts: governor

0
9

Over the past 14 years, New Jersey has provided nearly $ 11 billion in tax relief to businesses. But the economic gamble may not be the burning investment promised by some political leaders, according to a recent state report.

<p class = "canvas-atom-text-canvas Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Wednesday, the Office of the State Controller published a catchy report on the huge tax incentives offered to private companies by the New Jersey Economic Development Authority (NJEDA). "Data-reactid =" 12 "> On Wednesday, the State Comptroller's Office released an eye-catching article reporting on the huge tax incentives offered to private companies by the New Jersey Economic Development Authority (NJEDA).

Made at the request of Governor Phil Murphy's January 19 decree, the report proposes the following numbers:

"In February 2018, NJEDA reported 1,000 approved projects (also known as" incentive awards ") as part of its various incentive programs. The applicants estimated that these projects would create approximately 161,804 new jobs, retain 80,027 jobs and include capital investments of approximately $ 34 billion. NJEDA has approved financial incentives of nearly $ 11 billion for these projects. "

State auditors found, however, that there was no big problem … it was almost impossible to say what types of jobs had been created or maintained because of NJEDA's Byzantine reporting obligations.

"This is essential since, in many cases, the rewards are related not only to the fact that a job was created or maintained, but that it was created or maintained in a category or category. particular sector, "the auditors wrote.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "In addition, NJEDA could have wrongly attributed $ 179 The auditors claimed that incentives amounted to $ 6.6 million and that they were overpaid. (Read the full report here)"In addition, NJEDA could have wrongly allocated $ 179 million in incentives and paid more than $ 6.6 million, said the auditors. (Read the full report here)

Murphy pointed out that NJEDA's corporate tax incentive programs had been "significantly expanded" by $ 8 billion under the administration of his predecessor, Chris Christie.

"The inefficiency of the structure and management of the government's tax incentive programs has now been unveiled to New Jersey taxpayers, and a full balance sheet of the $ 11 billion loss is now needed," he said. Murphy said Wednesday.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Murphy – a former bank executive with Goldman Sachs who received strong contributions from the unions during his campaign for the governor, he said that tax incentives could play a role in economic development, but that they should be "targeted and closely monitored" as part of a strategy of 39, broader investment. "data-reactid =" 21 "> Murphy – former ex-president A bank manager at Goldman Sachs, who received heavy contributions from unions during his campaign for the governor, said tax incentives have a role to play in economic development, but that they must be "targeted and closely monitored" as part of a broader investment strategy.

These investments could include public transit, public education, infrastructure and workforce development, Murphy suggested.

"Needless to say, the audit sadly shows that vigilant monitoring of job creation was sorely needed," Murphy said following the controller's audit. "I look forward to working with the Legislature to encourage state investment in high-growth sectors, support our entrepreneurs and our small businesses, and use tax incentives in a sensible and meaningful way." financially responsible.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "WHO OBTAINED TAXES OBTAINED BY NJEDA?"data-reactid =" 26 ">WHO OBTAINED TAXES OBTAINED BY NJEDA?

Some of the companies that have been approved for recent NJEDA tax breaks include:

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "ADVANCE: THE MURPHY PLAN"data-reactid =" 36 ">ADVANCE: THE MURPHY PLAN

On Wednesday, Governor Murphy presented a five-point plan to "strengthen the state's claim to the innovation economy and make the economy both stronger and more equitable for all residents of New Jersey".

  • NJ Forward: An employment-based incentive program, capped at $ 200 million a year, designed to increase flexibility for small, high-growth businesses as well as for large companies in targeted sectors.
  • NJ Aspire: A deficit-based financing tool, awarded twice a year and capped at $ 100 million a year to support real estate goals focused on an innovation-driven economy and targeted at urban centers rich in transportation in common.
  • Brownfields: A competitive credit capped at $ 20 million annually to catalyze more environmental remediation projects and increase job creation and economic development.
  • Tax credit for historical preservation: A new local economic development tool based on projects evaluated by EDA, DEP and DCA and capped at $ 20 million per year.
  • Evergreen NJ Innovation Fund: A $ 500 million effort to raise funds over five years by auctioning state tax credits and partnering with the state and private venture capital funds to co-fund invest in startups in New Jersey.
  • <p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "TAX BREAKS IN NEW JERSEY: EXPERTS LOOK FORWARD"data-reactid =" 44 ">TAX BREAKS IN NEW JERSEY: EXPERTS LOOK FORWARD

    On Wednesday, several Garden State groups weighed on the audit – and on how to go forward.

    <p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "New Jersey Business & amp; Michele Siekerka, President of the Association of Industries (NJBIA) – "State tax incentive programs for businesses of all sizes should be an important part of our overall economic strategy to make New Jersey competitive and affordable. That said, the NJBIA has always been supportive of transparency and sufficient control of these programs to ensure that the state makes the most of its investments. We believe that responsible fiscal incentives still play a key role in our economic development strategy and in attracting and retaining our large and large businesses, which face an extremely challenging business climate, high taxes and expensive mandates. New Jersey. We are concerned that the imposition of a cap on an employment incentive program will hurt our regional competitiveness. We hope that the state will review these limitations in the future, while administering its tax incentive programs with appropriate and effective monitoring and control. "" Data-reactid = "46">President of the New Jersey Business & Industry Association (NJBIA), Michele Siekerka – "State tax incentive programs for businesses of all sizes should be an important part of our overall economic strategy to make New Jersey competitive and affordable. That said, the NJBIA has always been supportive of transparency and sufficient control of these programs to ensure that the state makes the most of its investments. We believe that responsible fiscal incentives still play a key role in our economic development strategy and in attracting and retaining our large and large businesses, which face an extremely challenging business climate, high taxes and expensive mandates. New Jersey. We are concerned that the imposition of a cap on an employment incentive program will hurt our regional competitiveness. We hope that the state will review these limitations in the future, while administering its tax incentive programs with appropriate and effective monitoring and control. "

    <p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Sheila Reynertson (Senior Policy Analyst, New Jersey Policy Perspective) – "Today's EDA audit is the latest in a long series of findings by both state governments and independent organizations such as NJPP and McKinsey that New Jersey businesses operate with minimal supervision and no signs of economic growth. Every taxpayer in New Jersey should be furious to know that the state has allocated billions of dollars in tax relief to businesses – without any constraints – while simultaneously cutting funding for public schools, NJ Transit, colleges and universities. universities. The failure of the state to produce annual reports, in accordance with the law, is an insult to taxpayers who expect the state's dollars to be adequately monitored. The lack of surveillance and monitoring undermines the integrity of a tax subsidy program and, more importantly, trust in the state government. By their very design, state incentive programs favor corporate interests to the detriment of the well-being of the state economy and its working families. The need for an in-depth reform of corporate grant programs has never been so clear and the proposals presented today by the Governor are a decisive first step in the right direction. In particular, the State should impose strict annual ceilings on major government grant programs as a mechanism to improve accountability and control. "" Data-reactid = "49">Sheila Reynertson (Senior Policy Analyst, New Jersey Policy Perspective) – "Today's EDA audit is the latest in a long series of findings by both state governments and independent organizations such as NJPP and McKinsey that New Jersey businesses operate with minimal supervision and no signs of economic growth. Every taxpayer in New Jersey should be furious to know that the state has allocated billions of dollars in tax relief to businesses – without any constraints – while simultaneously cutting funding for public schools, NJ Transit, colleges and universities. universities. The failure of the state to produce annual reports, in accordance with the law, is an insult to taxpayers who expect the state's dollars to be adequately monitored. The lack of surveillance and monitoring undermines the integrity of a tax subsidy program and, more importantly, trust in the state government. By their very design, state incentive programs favor corporate interests to the detriment of the well-being of the state economy and its working families. The need for an in-depth reform of corporate grant programs has never been so clear and the proposals presented today by the Governor are a decisive first step in the right direction. In particular, the government should impose strict annual ceilings on the largest government grant programs as a mechanism to improve accountability and control. "

    <p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Union leaders (joint statement, see below): "Today's report is shocking, but not surprising. For years we have heard elected leaders say that the problems of our state were attributable to New Jersey officials. Some lawmakers have even recently claimed that middle-class workers with modest pension benefits would reduce their spending on critical social and education programs. This report is another reminder of the truth: the real reason our state's financial future is in jeopardy is that, for too long, New Jersey has flooded politically connected and super-rich societies with government-funded grants. taxpayers. This $ 11 billion could have been spent on many commendable efforts – education funding, property tax relief, essential services, retirement security for public sector employees, roads, bridges, NJ Transit and much more. Instead, he went into the pockets of already profitable companies. We call for the immediate suspension of any subsidy or compensation until legislation ensuring monitoring and a fair deal for taxpayers can replace the currently rigged corporate protection system. In addition, we call on law enforcement authorities to conduct an immediate investigation to determine whether any laws have been violated, as well as measures to reimburse taxpayers for any incentives or subsidies awarded that violate the trust of the law enforcement agency. public. Finally, we call on the legislative authorities – on both sides – to recognize that attacks on middle-class workers, who work hard every day to provide services to our state, must stop, while examining and correcting serious mistakes. policies in this area. (Hetty Rosenstein, CWA NJ State Director, Ray Greaves, ATU NJ State Council Chairperson, Lawrence J Hanley, ATU International President, Steve Tully, Executive Director, Council 63 NJ AFP, Barry Kushnir, President of IFPTE Local 194., President of IFPTE Local 195, Tim Rudolf, President of the Newark Teachers' Union, John Abeigon, Union directors of Rutgers, president of AFT Local 1766, Christine O. Connell, Presidents of the College State Council, Tim Haresign) "data-reactid =" 50 ">Union leaders (joint statement, see below): "Today's report is shocking, but not surprising. For years we have heard elected leaders say that the problems of our state were attributable to New Jersey officials. Some lawmakers have even recently claimed that middle-class workers with modest pension benefits would reduce their spending on critical social and education programs. This report is another reminder of the truth: the real reason our state's financial future is in jeopardy is that, for too long, New Jersey has flooded politically connected and super-rich societies with government-funded grants. taxpayers. This $ 11 billion could have been spent on many commendable efforts – education funding, property tax relief, essential services, retirement security for public sector employees, roads, bridges, NJ Transit and much more. Instead, he went into the pockets of already profitable companies. We call for the immediate suspension of any subsidy or compensation until legislation ensuring monitoring and a fair deal for taxpayers can replace the currently rigged corporate protection system. In addition, we call on law enforcement authorities to conduct an immediate investigation to determine whether any laws have been violated, as well as measures to reimburse taxpayers for any incentives or subsidies awarded that violate the trust of the law enforcement agency. public. Finally, we call on the legislative authorities – on both sides – to recognize that attacks on middle-class workers, who work hard every day to provide services to our state, must stop, while examining and correcting serious mistakes. policies in this area. (Hetty Rosenstein, CWA NJ State Director, Ray Greaves, ATU NJ State Council Chairperson, Lawrence J Hanley, ATU International President, Steve Tully, Executive Director, Council 63 NJ AFP, Barry Kushnir, President of IFPTE Local 194., President of IFPTE Local 195, Tim Rudolf, President of the Newark Teachers' Union, John Abeigon, Union directors of Rutgers, president of AFT Local 1766, Christine O. Connell, Presidents of the State College Council, Tim Haresign)

    <p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "READ & gt; & gt; 5 questions to the New Jersey EDA Director: Murphy, Economics, Business"data-reactid =" 51 ">READ >> 5 questions to the New Jersey EDA Director: Murphy, Economics, Business

    <p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Learn more about publishing ads or events on your local patch site right here. Send local news tips and correction requests to eric.kiefer@patch.com
    "data-reactid =" 68 ">Learn more about posting ads or events on your local patch site here. Send local news tips and correction requests to eric.kiefer@patch.com

    <p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Photo: Shutterstock"data-reactid =" 69 ">Photo: Shutterstock

    <p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Infographics: NJ Office of the State Comptroller"data-reactid =" 70 ">Infographics: NJ Office of the State Controller