Category: Press Release

NJPP: Hard Caps On Corporate Tax Breaks Are Nonnegotiable

Posted on by Sheila Reynertson

Earlier today the New Jersey Senate Select Committee on Economic Growth Strategies released a report outlining 25 recommendations to reform the state’s corporate tax subsidy programs. In response to the report, New Jersey Policy Perspective (NJPP) releases the following statement.

Sheila Reynertson, Senior Policy Analyst, NJPP:

“A hard cap on annual spending is the state’s best defense against future waste and the abuse of corporate tax subsidy programs. The committee’s refusal to include this commonsense reform runs counter to testimony by national economic development policy experts and the overwhelming evidence showing these subsidies are too costly and provide little benefit to New Jersey families or the state economy. The fact remains that New Jersey is not in the financial position to give out limitless corporate tax breaks, and hard caps should be a nonnegotiable component as lawmakers consider tax subsidy reform.

“Many of the committee’s recommendations — like prioritizing distressed communities, requiring a community benefit agreement requirement, and incentivizing affordable housing development — mirror proposals by Governor Murphy and the Legislature. There are also some new reforms worth pursuing like loans for small and mid-sized businesses and a stronger compliance division within the Economic Development Authority. Combined with hard caps, these reforms have the potential to drastically rebalance New Jersey’s approach to economic development. That being said, corporate tax subsidies are not the best use of the state’s resources. The state would be wiser to instead invest in public programs with a proven record of success, like higher education, job training, and transit infrastructure.”

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Progress 2020: Meet Our Keynote Speaker!

Posted on by Brandon McKoy

The theme of this year’s NJPP conference is Policy for the People, and few embody this sentiment more than our keynote speaker: Olugbenga Ajilore.

Gbenga Ajilore is a leading national voice on tax equity and closing the racial wealth gap. His research recognizes that for policy to really be for the people, it must address the nation’s legacy of slavery — and structural racism — in concrete, meaningful ways. This means that widespread economic justice is inextricably linked to racial justice. You cannot have one without the other.

Ajilore is a senior economist at the Center for American Progress in Washington, DC. His expertise includes regional economic development, macroeconomic policy, and issues in diversity and inclusion. He has been invited to testify before Congress and his work has been featured in The New York Times and The Washington Post. Gbenga was previously an associate professor of economics at the University of Toledo, and in 2018 he served as the President of the National Economic Association.

Please join Gbenga Ajilore and the NJPP team at Progress 2020 on Friday, April 24 at The Heldrich Hotel in New Brunswick as we examine policy for the people, not special interests.

Click here to purchase your tickets!

Raymond Castro Announces Retirement from New Jersey Policy Perspective

Posted on by NJPP Staff

For Immediate Release

Contact: Louis Di Paolo, (201) 417-5049 (cell) or dipaolo@njpp.org

TRENTON (January 28, 2019) — Raymond Castro, Health Policy Director at New Jersey Policy Perspective (NJPP), will retire at the end of March, NJPP announced today. 

Ray has directed NJPP’s health care research and advocacy since joining the organization in 2006, and prior to that, worked at the New Jersey Department of Human Services for more than 33 years. 

“Ray’s career epitomizes public service,” said Brandon McKoy, President of NJPP. “Everyone gets into this line of work to improve the lives of people, but few individuals have had more success than Ray. It’s been a pleasure to work with him and to have him represent NJPP for all of these years. We will miss him.”

During Ray’s tenure as Health Policy Director, he turned NJPP into a go-to organization for nearly all major health care initiatives proposed in Trenton. 

“When Ray joined our staff, he made NJPP instantly credible on health issues, and all he’s accomplished since then for the people of New Jersey is a tribute to his knowledge and compassion,” said Jon Shure, founding President of NJPP and current Vice Chair of the Board of Trustees.

Notably, New Jersey’s decision to opt into Medicaid expansion was influenced by Ray’s comprehensive analysis on its health and economic benefits. This is a lasting legacy to Ray’s work, as Medicaid expansion alone benefitted half a million residents, generated $3 billion annually in federal revenue, and created thousands of jobs.

More recently, New Jersey was the first state in the nation to quantify the harm that would be caused by the Trump administration’s proposal to repeal the Affordable Care Act (ACA). A key feature of these reports was a breakdown of the impact by congressional district, which provided the data necessary for constituents to hold their representatives accountable. 

Ray’s research and expertise, combined with the advocacy of the NJ for Health Care coalition, were also critical to the state’s response to the Trump administration’s sabotage of the ACA. Ray was a leading voice behind efforts for New Jersey to institute its own individual mandate, ban short-term junk plans, create a reinsurance fund, and establish a state-based health exchange.

The progress that NJPP has made in anti-poverty during this time is no less remarkable. When Ray joined NJPP, Temporary Assistance to Needy Families (TANF) had been completely ignored by the state for decades and was in danger of disappearing. That all changed when NJPP released a report showing how much the state’s safety net had fallen behind those of other states. As a result of that report and the widespread advocacy that stemmed from it, the state has increased the TANF grant by 32 percent, the highest increase in the nation over the last two years.

“What an honor and privilege it has been to work for such an outstanding organization like NJPP,” said NJPP Health Policy Director Ray Castro. “The progress that has been made in expanding health coverage during my time here is truly remarkable. I want to sincerely thank my colleagues at NJPP, Center on Budget and Policy Priorities, members of the NJ for Health Care coalition, the Anti-Poverty Network of New Jersey, the many advocates who pushed for evidence-based health policy, and the state lawmakers and administrative officials who championed these efforts. Together, we have made New Jersey a leader in promoting economic opportunity for everyone, a goal few would have imagined 13 years ago.”

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NJPP: Public Charge Rule is a Discriminatory Income Test

Posted on by Erika J Nava

Earlier today the U.S. Supreme Court voted 5-4 to allow the Trump administration’s “public charge” rule change to take effect. The new rule makes it more difficult for immigrant families to obtain legal permanent residence if they have used, or are deemed likely to use, public health benefits. In response to the Supreme Court’s decision, NJPP releases the following statement:

Erika Nava, Policy Analyst, New Jersey Policy Perspective:

“The Supreme Court decision is a devastating blow to working-class immigrant families in search of the American Dream. The new rule imposes a discriminatory income test to the immigration system and will force many immigrants to choose between having their basic needs met and being separated from their family. Penalizing families who qualify for public assistance runs counter to this nation’s values and must be stopped. In the meantime, immigrant families should not be fearful, but educated on the new public charge rule so they can make the best decisions for themselves and their families as they navigate the immigration process.”

For more info on the “public charge” rule change, read NJPP’s Public Charge FAQ from December 2019: https://www.njpp.org/blog/faqs-the-public-charge-rule-change#What-Would-Change

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New Jersey Policy Perspective Elects Two New Board Members

Posted on by NJPP Staff

TRENTON, NJ (January 21, 2020) – Today, New Jersey Policy Perspective (NJPP) proudly announced the election of two new Board members: Sarah Lechner, a leading policy expert on the social determinants of health, and John Butler, a national voice on prosecutorial and criminal justice reform.

“I am thrilled to welcome Sarah and John to the NJPP board, as they bring unique perspectives and experience on issues that affect the lives of everyday New Jerseyans,” said Marcia Marley, Chair of NJPP’s Board of Trustees.

“Sarah and John are proven leaders in their fields and understand what it takes to enact lasting, structural change,” said NJPP President Brandon McKoy. “I am excited to draw upon their leadership and expertise as NJPP continues to provide policy solutions to the most pressing issues in the Garden State.”

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Sarah Lechner

Sarah Lechner has broad experience in New Jersey state government and the health care industry. She is currently Senior Vice President of Policy Development and Government Affairs at RWJBarnabas Health, New Jersey’s most comprehensive academic health care delivery system. In this role, Sarah oversees state and federal advocacy for the system; she also serves as Chief of Staff to the health care system’s Social Impact and Community Investment practice aimed at improving health care disparities and social determinants of health. 

Prior to joining RWJBarnabas Health, Sarah served as Assistant and Deputy Counsel for the New Jersey Senate Democrats, where she specialized in policy issues concerning health insurance and regulated professions. She has also served as General Counsel for the New Jersey Hospital Association. She received her law degree from Rutgers – Newark School of Law and her bachelor’s degree from The George Washington University.

“I am honored to join the board of an organization that recognizes that health is inextricably tied to social, economic, and racial justice,” said NJPP Board Trustee Sarah Lechner. “Throughout my career in state government and the health care industry, I’ve seen the transformative change that comes from connecting research to action, which is precisely where NJPP excels.”

John Butler is an attorney with more than a decade of experience at the intersection of social justice advocacy, criminal justice policy development, and non-profit management. John is currently the Director of Research and Outreach at Fair and Just Prosecution, a non-profit that works with elected prosecutors on evidence-based criminal justice reform. John is also the Associate Director at the Center for Court Innovation, where he works on court-based reform to the criminal justice system.

John Butler

John Butler previously clerked on the District Court of New Jersey, worked as a researcher for the Stanford Criminal Justice Center, and was a director at a youth development non-profit in Newark. He holds a law degree from Stanford Law School, a Masters in Comparative Politics from the London School of Economics, and a bachelor’s degree from Brown University.

“We need to live in a world where facts and strong research drive public policy, and NJPP is making that possible with its analysis and clear moral vision,” said John Butler. “NJPP is a leader in moving progressive policy forward that centers racial equity and economic justice. I couldn’t be more excited to join the board.” 

NJPP: New Jersey Takes Major Step to Codify ACA Protections

Posted on by Raymond Castro

Earlier today, the New Jersey Senate passed a package of bills to codify core provisions of the Affordable Care Act (ACA) in state law. Should a federal court strike down the ACA, these protections would remain in place if signed into law by Governor Murphy. In response to the passage of these bills, New Jersey Policy Perspective (NJPP) releases the following statement.

Raymond Castro, Health Policy Director, NJPP:

“With the passage of these bills, New Jersey is solidifying its place as a national leader in protecting the health coverage of its residents. If signed by Governor Murphy, key provisions of the ACA will stay in place should a federal court strike down the landmark health care law. Most of these protections — such as prohibiting insurers from denying coverage for preexisting conditions, requiring essential benefits, providing free preventive services, and allowing parents to keep their dependents on their plan until age 26 — have been in effect for six years; it is hard to imagine a health care system without them.

“These bills, however, do not remedy the biggest problem New Jersey would face if the federal courts overturn the ACA: the loss of billions of federal dollars that are essential to provide Medicaid expansion coverage to a half-million New Jerseyans and keep premiums in the individual market affordable for another 300,000 adults and children. To avoid such a catastrophe, the state’s congressional delegation must continue to fight back against the Trump administration’s sabotage of the ACA.”

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NJPP: National Experts Urge New Jersey to Rein In Corporate Subsidies

Posted on by NJPP Staff
NJPP Senior Policy Analyst Sheila Reynertson (bottom right) was joined on a webinar by Greg LeRoy (top left), Dena Mottola Jaborska (top right), and former Kansas City Mayor Mark Funkhouser (bottom right).

TRENTON, NJ (November 18, 2019) – New Jersey’s large-scale corporate tax breaks are costly and ineffective at promoting economic development, according to state and national policy experts who joined New Jersey Policy Perspective (NJPP) on a video call Monday afternoon.

Convened during a break in the State Senate’s Select Committee on Economic Growth Strategies hearing, the NJPP webinar examined the questionable benefits of corporate subsidies and recommended New Jersey rein in and reform its economic development programs with better targeting and hard caps on awards.

“New Jersey simply cannot afford to give out endless corporate tax subsidies, regardless of what beneficiaries of the tax breaks say,” said Sheila Reynertson, NJPP’s senior policy analyst. “National experts agree that this is a misguided approach to economic development with little return on investment for workers, local communities, or taxpayers. State lawmakers must heed the advice of impartial policy experts calling for reforms.”

According to Mark Funkhouser, the former auditor and Mayor of Kansas City, corporate tax subsidies almost never break even for taxpayers, especially when the awards are as high as those given out by New Jersey’s Economic Development Authority. After the passage of the Economic Opportunity Act of 2013, the state’s corporate subsidy awards often exceeded $100,000 per job created or retained. 

“The evidence is overwhelming that using tax incentives to “buy” jobs doesn’t work,” said former Kansas City Mayor Mark Funkhouser. “It didn’t work in Kansas City and it hasn’t worked in New Jersey. Every dollar diverted to the corporate coffers is a dollar that could have been used to support a better quality of life for New Jersey residents.”

Mark Funkhouser served as Mayor of Kansas City, Missouri from 2007 until 2011. He previously served for almost twenty years as the city’s auditor, where he became an early proponent of the newly adopted Kansas-Missouri tax subsidy ceasefire. Some New Jersey state lawmakers have expressed interest in a similar ceasefire with neighboring states. 

The webinar also featured Greg LeRoy, Executive Director of Good Jobs First, a nationally recognized expert on tax incentives and author of the book, The Great American Jobs Scam: Corporate Tax Dodging and the Myth of Job Creation.

“New Jersey has been stuck in the discredited ‘buffalo hunting’ school of economic development, creating scandals instead of jobs,” said Greg LeRoy, Executive Director of Good Jobs First. “By ending its record streak of nine-figure ‘megadeals,’ the state can spend less and get more.”

The webinar’s speakers were unified in their calls for hard caps on annual and per job subsidies. Many of the state’s existing tax credit programs — including the Film and Digital Media Tax Credit, Angel Investment Tax Credit, and Neighborhood Revitalization Tax Credit — are capped, as were the Grow New Jersey and Economic Redevelopment & Growth programs prior to 2013. Many of New Jersey’s neighboring states also employ hard caps on their economic development subsidy programs. 

“Every single public program in New Jersey has a spending cap,” said Dena Mottola Jaborska, Associate Director of New Jersey Citizen Action. “It’s the responsible thing to do. Taxpayer dollars should never be made available on an unlimited basis, whether for corporate subsidies or anything else. Hard caps will send a clear message to business leaders that a corporate tax subsidy program’s funds will be invested only in the most effective and beneficial projects. They will instill discipline and drive award decisions to the projects with the most merit and benefit to taxpayers.”

A September 2019 report by NJPP found that already-approved corporate tax subsidy awards surpass $1 billion through 2023. Without caps on future awards, these obligations will continue to climb.

Watch Mayor Funkhouser on NBC News here.

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NJPP: Proposal to Roll Back $15 Minimum Wage Cheats Low-Paid Workers

Posted on by Brandon McKoy

Next week, the New Jersey Senate Labor Committee will consider proposals to suspend the phase in of the state’s $15 minimum wage, which was signed into law less than a year ago. Specifically, S3607 would suspend minimum wage increases for at least a year if unemployment increases at all, or if sales and use tax receipts drop at all. In response to this proposal, New Jersey Policy Perspective (NJPP) offers the following statement.

Brandon McKoy, President, New Jersey Policy Perspective:

“This proposal is a huge threat to low-paid workers as it all but guarantees the suspension of New Jersey’s $15 minimum wage. The bill uses broad and arbitrary metrics to pause increases in the minimum wage, cheating workers and families already struggling to make ends meet. With income inequality at an all time high, this bill moves New Jersey in the wrong direction and rolls back one of the most consequential, pro-worker policies in state history less than a year after it was signed into law.

“If lawmakers insist on changing New Jersey’s minimum wage law, they should remove harmful carve outs that disproportionately push women and people of color behind. While most New Jersey workers will get to $15 an hour by 2024, farmworkers and employees of small businesses won’t reach the full minimum wage until several years later. Meanwhile, tipped workers are left earning a subminimum wage in perpetuity. Instead of concocting ways to further delay the economic security of New Jersey’s low-paid workers, lawmakers should focus on policies that boost wages and lift families out of poverty.”

New Jersey Policy Perspective (NJPP) is a nonpartisan think tank that drives policy change to advance economic, social, and racial justice through evidence-based, independent research, analysis, and advocacy. NJPP has long-advocated for increases in New Jersey’s minimum wage.

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NJPP: Improving Economy Leaves Many Behind

Posted on by Brandon McKoy

TRENTON, NJ (September 27, 2019) –  Last year, 832,133 New Jerseyans lived in poverty and struggled to make ends meet, according to new data released yesterday from the U.S. Census Bureau. Residents across the state still face barriers that prevent them from thriving, such as a lack of access to affordable higher education, reliable public transportation, and affordable homes.

While the state’s unemployment rate continues to decline, far too many New Jerseyans are being left out of the state’s economic recovery. The 2018 poverty rate (less than $25,100 a year for a family of four) of 9.5 percent is still higher than New Jersey’s pre-recession poverty rate of 8.7 percent in 2008. Poverty strikes harder for households that have children. In 2018, 13.5 percent of kids in New Jersey, lived in homes that struggled to afford basic needs. This is down from the 2017 child poverty rate of 13.8 percent, but still higher than the pre-recession child poverty rate of 12.1 percent in 2008.

“New Jersey’s economy continues to improve, but not all residents are benefitting from this progress,” said Brandon McKoy, President of New Jersey Policy Perspective (NJPP). “New Jersey remains a tale of two states, as household incomes steadily increase while poverty rates remain higher than pre-Recession levels. Far too many New Jersey families still struggle to pay for basic expenses like food and childcare; more can and must be done to ensure every single New Jerseyan has the opportunity to live a safe and healthy life.”

The new Census data shows that even though the state is growing in important ways, New Jersey’s families are still dealing with harmfully high rates of poverty and widespread income inequality:

  • New Jersey’s poverty rate is 3.6 percentage points lower than the US poverty rate (13.1 percent), and is the 5th lowest poverty rate in the country. 
  • Due to New Jersey’s higher cost of living, measuring poverty using the 200% Federal Poverty Level statistic ($50,200 a year for a family of four) is more appropriate, and shows that 22 percent of New Jerseyans live in real poverty, a total of 1.9 million. This rate is down from 22.9 percent in 2017.
  • The state poverty rate (9.5 percent) declined by 0.5 percentage points over the last year and is at its lowest since 2009, when it was 9.4 percent.
  • The state’s median household income of $81,740 is up from the 2017 figure of $80,088 and is largely similar to both 2017 and 2008, meaning that since the Great Recession  there has been little positive movement in raising middle class living standards for the average New Jerseyan.
  • 4.2 percent of New Jerseyans live in extreme poverty, which means they live below less than half of the poverty line — or about $12,550 a year for a family of four.

The data also show that poverty continues to hit some groups harder:

  • New Jerseyans of color face significant barriers in our state due to housing segregation and broader discrimination. The result is that they are more likely to struggle economically than white New Jerseyans.
  • 16.2 percent of Black New Jerseyans live below the official poverty line ($25,100 for a family of 4) compared with 5.5 percent of whites.
  • 17.1 percent of Latinx and 7.2 percent of Asian Americans live in poverty. This means far too many New Jerseyans of color aren’t sharing in the state’s economic gains or able to fully contribute to the economy and health of their communities.
  • Women face higher poverty rates than men: 10.5 percent compared to 8.4 percent, respectively.

“Lawmakers must prioritize policies that benefit low-income workers, communities of color, and impoverished New Jerseyans who face barriers to success,” McKoy added. “Until we can ensure all New Jerseyans are able to safely and reliably make ends meet, our economy will continue to have trouble growing in a healthy manner.”

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New Jersey Policy Perspective Announces New Senior Staff

Posted on by NJPP Staff

To read a PDF version of this release, click here.

For Immediate Release:

Contact: Louis Di Paolo, (201) 417-5049 (cell) or dipaolo@njpp.org

TRENTON, NJ (September 10, 2019) – New Jersey Policy Perspective (NJPP) is pleased to announce two additions to the organization’s senior staff. Following a months-long national search, the Trenton-based think-tank has hired Nicole Rodriguez as Research Director, where she will guide NJPP’s policy vision and supervise policy staff. NJPP has also promoted Becca Jensen Compton to Development Director, where she oversees fundraising to ensure NJPP continues to drive policy change that advances economic, social, and racial justice through evidenced based, independent analysis.

“Nicole is already a proven leader in state economic policy circles for her research on issues that benefit working families,” said Brandon McKoy, President of NJPP. “Nicole has a record of success promoting long-term structural change at the intersection of research and advocacy and is well-equipped to help NJPP perform the rock solid analysis we’re known for on the biggest issues facing the Garden State. We are thrilled to have someone with Nicole’s expertise and experience guide NJPP’s policy research and advocacy agenda.” 

Nicole Rodriguez has extensive experience researching and advocating for policies that promote equity and widespread economic opportunity. A Boston native, Nicole most recently served as a Senior Researcher with Community Labor United, where she spearheaded analysis on labor and revenue policy campaigns. Nicole previously served as a Senior Policy Analyst at the Massachusetts Budget and Policy Center, where she drove strategic research on issues concerning economic security, including proposals to raise the minimum wage and enact earned sick days. Nicole will continue to research these issues in addition to managing the policy department. She holds a Master’s in Public Policy from the Heller School for Social Policy and Management at Brandeis University and a Bachelors of Arts in Political Science from Villanova University. 

“I’m excited to join the NJPP team and return to the State Priorities Partnership and EARN networks,” said Nicole Rodriguez. “I’ve admired NJPP’s mission from afar for years. I look forward to helping shape and executing NJPP’s policy work and furthering their commitment to equity for all.“

NJPP has also promoted Becca Jensen Compton to Development Director, where she is responsible for the organization’s individual giving and institutional support. Becca joined NJPP in the summer of 2018 as Development Manager after previously working as the Community Engagement Coordinator for Arm in Arm, a Trenton-based nonprofit that helps Mercer County residents achieve stability through nutrition, housing, and job support. Becca received her Bachelors of Arts in Professional Writing and Literature from York College of Pennsylvania. 

“The past fourteen months with NJPP have been an incredible experience,” said Becca Jensen Compton. “I look forward to working more deeply with our generous funders and donors as we build a more just New Jersey together.”

Becca’s first day as Development Director was September 1.

“Becca is an integral part of the NJPP team and her strong fundraising allows us to continue providing independent policy research,” said McKoy. “I look forward to watching her grow in this new leadership role as we expand our presence and reach across the state.”

Founded in 1997, NJPP is a “think and do” tank, driving policy change to advance economic, social, and racial justice through evidence-based independent research, analysis, and advocacy. 

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