New Report Shows That New Jersey Has High Risk for Misuse of Developer Subsidies

From NJ PIRG, October 12, 2011:

A new research report today shows that New Jersey is at high risk for misuse of tax revenue thanks to a problematic system of funding commercial development. The report outlines problems with the growing trend among cities to borrow against future growth and divert tax revenues as a way to attract economic development.

PIRG’s press release that coincides with the report’s release features NJPP policy analyst Sarah Stecker, who wrote NJPP’s September 2010 report on tax increment financing in New Jersey, The Good, the Bad and the ERGly.

“Tax increment financing in New Jersey is a generous subsidy for developers that can take advantage of an unrivaled number of state and local revenues in over 80% of New Jersey municipalities,” Stecker says. “This is not a targeted subsidy for struggling areas but rather a big business giveaway.”