Category: Statement

Corporate Transit Fee Will Help Get NJ Transit Back on Track

Posted on by Nicole Rodriguez

Today, Politico New Jersey reported that Governor Murphy and legislative leaders have reached a budget deal that includes the proposed Corporate Transit Fee to fund NJ Transit. This would represent the first-ever source of dedicated state funding for the agency, which faces a looming shortfall of nearly $1 billion once federal pandemic aid expires. In response to the newly announced budget deal, New Jersey Policy Perspective (NJPP) releases the following statement.

Nicole Rodriguez, President, NJPP:

“The corporate transit fee included in the budget deal should have riders breathing a sigh of relief. This dedicated funding is a historic first for NJ Transit and will go a long way toward getting the agency out of the red and back on track. Mass transit is a cornerstone of the state’s economy, so it’s only fair to have the most profitable corporations in the world help fund the infrastructure they benefit from. And regardless of what business lobbyists say, this fee will only be paid by ultra-wealthy corporations like Amazon and Walmart, most of which are headquartered out of state.

“While this news is historic, so are the constant delays and cancellations riders have endured over the past week. NJ Transit has been underfunded for decades, and more support from state and federal lawmakers will be needed to upgrade our infrastructure. But make no mistake, this is a huge win for all of the riders, working families, and communities that rely on NJ Transit’s bus and rail service.”

Read NJPP’s analysis detailing which corporations would pay the Corporate Transit Fee.

Read NJPP’s report detailing the history of underfunding at NJ Transit.

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Dark Day for Transparency and Accountability as Governor Signs Bill Gutting Public Records Law

Posted on by Nicole Rodriguez

Earlier today, Governor Murphy signed a bill that would gut New Jersey’s public records law, making it harder for the public to access data, records, and documents that their state and local governments produce. Despite being opposed by nearly all public testimony and 81 percent of the public in polling, this law will now make it easier for governments to deny records requests, impose costs on requestors, and escape accountability for unlawful denials. In response, New Jersey Policy Perspective (NJPP) issues the following statement.

Nicole Rodriguez, President, NJPP:

“This law is bad policy, bad politics, and bad news for anyone who believes that government should work for the people and not for special interests. Public records are how we shine a spotlight on corruption and hold officials accountable when they’re not doing what’s best for their communities. New Jersey just took a big step forward with our first primary election without ‘the line’ on the ballot, and now the state is taking two even bigger steps backward. This is a dark day for transparency, accountability, and democracy in New Jersey.”

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StayNJ Task Force Report Fails To Fix Regressive Proposal

Posted on by Peter Chen

Earlier today, the StayNJ Task Force released a new report with recommendations on how to implement the StayNJ property tax credit for senior homeowners. This report focuses on the challenges of implementing another complex property tax credit on top of existing credits, but does not comment on the overall structure of the proposal or how the state could pay for it. In response to the new report, New Jersey Policy Perspective (NJPP) issues the following statement.

Peter Chen, Senior Policy Analyst, NJPP:

“The task force report does not change any of the underlying problems with the original StayNJ proposal, namely that it directs the biggest benefits to wealthy homeowners while providing little support for lower-income households and renters struggling to stay in their homes. The report also does not address how the state can realistically pay for the $2 billion program without cutting funding for other essential services and infrastructure.

“The data clearly shows that StayNJ would overwhelmingly go to the highest-income households, sending billions of dollars the state doesn’t have to the residents who need it the least. Because existing property tax relief programs count against the StayNJ benefits, the largest payments would go to homeowners with more than $250,000 in income who make too much to qualify for ANCHOR or the Senior Freeze. This kind of regressive spending program would widen the racial wealth gap and, ironically, make the state less affordable for many lower and middle-income families.

“However the program is administered, StayNJ’s stated goal of helping seniors stay in their homes is still undermined by its disproportionate benefits for high-income homeowners and its neglect of senior renters who are at higher risk of losing their homes.”

Read NJPP’s most recent report on StayNJ here.

Read NJPP’s testimony to the StayNJ Task Force here.

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Giving Businesses Tax Credits for Hybrid Workers Undermines the Very Purpose of the Tax Credits

Posted on by Peter Chen

State lawmakers are fast-tracking a new bill (A4046) that would allow businesses to claim tax subsidies for hiring workers at New Jersey locations, even if they work a majority of the time from home. Similar legislation was fast-tracked during the recent lame duck session and failed to advance after lawmakers criticized the proposal as “counter-intuitive,” and warned that it would have unintended consequences. In response to the proposal, New Jersey Policy Perspective (NJPP) issues the following statement.

Peter Chen, Senior Policy Analyst, NJPP:

“Allowing companies to claim tax credits for employees that aren’t in the office undermines the very purpose of giving out these tax credits in the first place. In theory, the economic benefits are supposed to come from workers going out to buy lunch and spend money at other shops near the office, but this will never happen if employees are working at home instead. Corporate tax credits already have a weak return on investment for communities, and this will only weaken it further. There is no reason for the state and its taxpayers to prop up businesses with public dollars when they aren’t benefiting the broader public.

“A nominal contribution to affordable housing trust funds does not make up for the cost of handing out these tax credits. If this was really about creating more affordable housing, the state should do so directly rather than hand corporations a check only to get a fraction of it back.”

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Budget Proposal Rightly Asks Big Business To Pay for Critical Infrastructure, But More is Needed

Posted on by Nicole Rodriguez

Earlier today, Governor Murphy unveiled his budget proposal for Fiscal Year 2025. The proposal includes a new corporate transit fee on companies earning more than $10 million in annual profits and dedicates those funds to NJ Transit, which would be the first-ever dedicated source of funding in the agency’s history. The budget also includes another full pension payment and would fully fund the school funding formula for the first time in New Jersey history. However, the budget continues to dip into the state’s surplus to cover expenses, highlighting a need for new revenue sources. In response to the budget proposal, New Jersey Policy Perspective (NJPP) releases the following statement.

Nicole Rodriguez, President, NJPP:

“The governor’s budget proposal rightly asks the world’s biggest corporations to pay for the infrastructure that helps generate their record breaking profits. In this current era of rising inequality, if corporations are going to swallow a lion’s share of economic growth, they shouldn’t expect to pay less in taxes and have working families make up the difference. The new corporate transit fee is a testament to the tireless advocacy of workers, transit riders, advocates, and local elected officials in every corner of the state who fought for a fairer tax code.

“This budget proposal still has some red flags that lawmakers will have to address. Even with a strong commitment to long standing funding needs like pensions and schools, the budget proposal still erodes the state’s surplus to fund basic operations. Meanwhile, most programs that promote affordability for low- and moderate-income households like the Child Tax Credit and WorkFirst New Jersey received flat funding – a functional cut in a time of inflation. As New Jerseyans face down fare hikes and cost increases, the onus now shifts to the Legislature to commit to a full reinstatement of the corporate surcharge make the state affordable for all.”

Read NJPP’s latest budget analysis, What to Look for in the New Jersey Budget for Fiscal Year 2025.

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Gov. Murphy’s NJ Transit Funding Proposal Would Put Agency Back on Track

Posted on by Alex Ambrose

Later today, Governor Murphy will announce the first-ever dedicated source of funding for NJ Transit: A new Corporate Transit Fee of 2.5 percent on corporations with more than $10 million in annual profit. The tax is a scaled-down version of the Corporation Business Tax surcharge on corporations with more than $1 million in annual profit. The new tax is estimated to generate $800 million in annual revenue. Last year, New Jersey Policy Perspective (NJPP) published a report on the benefits of using the corporate surcharge as a dedicated source of funding for NJ Transit, which remains the only transit agency of its kind without dedicated public funding. In response to the new proposal to fund NJ Transit, NJPP releases the following statement.

Alex Ambrose, Policy Analyst:

“It’s hard to overstate how big of a deal this is for transit riders and the state as a whole. The governor’s proposal would finally provide stable, dedicated funding to an agency that’s never had it, setting a strong foundation to protect NJ Transit now and in the future. This is exactly the type of thinking needed to get NJ Transit back on track, and it’s long past time that big corporations pay for the infrastructure that helps them generate their record-breaking profits. At the same time, we can’t forget that riders are staring down a potential double-digit fare hike, and the agency is still raiding its capital budget, so there’s a strong argument for bringing back the full corporate surcharge to spare commuters from shouldering that burden.”

Read NJPP’s report, Getting Back on Track: Fully Fund NJ Transit by Taxing Big Corporations.

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For the Many NJ: Governor Murphy Gives Ultra Wealthy Corporations $1 Billion, Passes Cost to Transit Riders

Posted on by NJPP Staff

New Jersey Transit announced their plan today to make up for budget shortfalls, including a $119 million shortfall in fiscal year 2025, by raising fares. This comes on the heels of Governor Murphy’s decision to deliver a $1 billion tax cut to the wealthiest corporations in the state by refusing to renew the Corporate Business Tax surtax earlier this month. For the Many NJ releases the following statement in response:

Eric Benson, Campaign Director, For The Many NJ:

“Fare hikes on everyday New Jerseyans does nothing to make the state more affordable and shows why we need to have fair sustainable revenue like the Corporation Business Tax surtax. While big corporations are getting $1 billion in tax cuts, New Jersey’s leaders have no plan to fill budget holes and instead are throwing the costs to working families.

If the Governor and legislature don’t get serious about raising revenues from the wealthy and powerful, it will be the working- and middle-class residents of the state who end up paying the price.”

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For The Many NJ is a statewide coalition of more than 30 organizations working to expand funding for essential services and improve budget practices to meet current and future needs, especially for communities that have been historically left behind.

Fare Hikes Are Not the Solution to NJ Transit’s Financial Woes

Posted on by Alex Ambrose

Today, New Jersey transportation officials announced a 15 percent increase in fares for NJ Transit riders as well as a 3 percent annual increase in subsequent years. In a report released in September, New Jersey Policy Perspective (NJPP) outlines the benefits of using the Corporation Business Tax surcharge to fully fund NJ Transit and prevent catastrophic service cuts and fare hikes. The corporate surcharge, which expired on December 31, 2023, targeted the top two percent of corporations with more than $1 million in annual profits, bringing in $1 billion in revenue per year. In response to the proposal, NJPP releases the following statement:

Alex Ambrose, Policy Analyst:

“Drastic fare hikes won’t solve NJ Transit’s structural financial problems, especially when the agency has never had a dedicated funding source. Forcing riders to foot the bill and relying on farebox revenue to bridge the financial gap is not just inequitable, it’s bad policy. Policymakers chose corporations over New Jersey’s working families when they gave ultra-wealthy businesses like Amazon and Walmart a $1 billion tax cut. To prevent additional drastic fare hikes and service cuts, reinstating the Corporation Business Tax surcharge is the smart and practical way to fund NJ Transit. NJ Transit should not operate on the basis of revenue like a business; instead, it should be treated as a public good, and given the investments it needs to thrive.”

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Governor’s Stronger and Fairer Economy Can’t Overlook Fiscal Elephant

Posted on by Nicole Rodriguez

Today, Governor Phil Murphy delivered his sixth annual State of the State address, where he focused on ways to make New Jersey the best place anywhere to raise a family. The speech highlighted the critical role of state government in building an economy that works for everyone, but the governor did not address how the state would pay for these investments after lawmakers allowed the Corporate Business Tax surcharge to expire at the start of the year. In response to the address, New Jersey Policy Perspective (NJPP) released the following statement.

Nicole Rodriguez, President, NJPP:

“There’s a lot to like in Governor Murphy’s address, from protecting rights and freedoms to promoting affordability and economic security. This approach to governing recognizes the critical role of state government in making New Jersey the best place to live, go to school, raise a family, or start a business. The last six years are more than enough proof that this model works, and that we can strengthen public services and have a booming economy at the same time.

“But just as the governor attributed this success to confronting New Jersey’s financial challenges, his address overlooks one giant elephant in the room that could unravel it all. As it stands, New Jersey is not raising enough revenue to balance its current budget, and the state’s financial outlook is made worse thanks to a new billion-dollar corporate tax cut that just went into effect.

“By scrapping the corporate tax surcharge for big players like Amazon and Walmart, state lawmakers jeopardize the future of the same investments the governor celebrated in his remarks. To keep up the momentum and build an economy that is truly stronger and fairer for all, Governor Murphy and the Legislature must undo this tax cut for the most profitable corporations in the world.”

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State of New Jersey’s Finances Takes a $1 Billion Hit in New Year

Posted on by NJPP Staff

With Governor Murphy set to deliver his 2024 State of the State Address next week, the state of New Jersey’s finances have taken a major blow with the sunset of the corporate surcharge on January 1. The Corporate Business Tax surcharge only applies to the most profitable corporations in the world with more than $1 million in profits — including large multinational corporations like Amazon and Walmart. Without the corporate surcharge, New Jersey will lose $1 billion in revenue annually. In response to the surcharge expiring and in anticipation of the governor’s address, For The Many NJ releases the following statement.

Eric Benson, Campaign Director, For The Many NJ:

“The state of New Jersey’s finances took a billion-dollar hit in the new year thanks to this new corporate tax cut for companies like Amazon and Walmart. State lawmakers will now have to figure out how to plug this budget hole and avoid dramatic cuts to public schools, NJ Transit, health care, and the many other public services that keep the state running. With many families struggling to keep up with rising costs and federal pandemic aid about to expire, this blow to the state budget couldn’t have come at a worse time. The state desperately needs this revenue to balance its budget, and the corporate surcharge remains the fairest way to fund government without affecting families or small businesses. We have to remember that this surcharge is highly targeted to the select few companies that can afford it most, including multinational corporations that aren’t even headquartered here, and if they aren’t paying their fair share everyone else will have to pay more.”

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For The Many NJ is a statewide coalition of more than 30 organizations working to expand funding for essential services and improve budget practices to meet current and future needs, especially for communities that have been historically left behind.

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