Progressive Policy and Economic Growth Go Hand in Hand

Governor Phil Murphy today delivered his fourth annual State of the State address. In his remarks, the Governor reflected on policies enacted under his first term as well as the state’s ongoing response to the COVID-19 pandemic. In response to the address, New Jersey Policy Perspective (NJPP) released the following statement.

Jon Shure, Interim President, NJPP:

“Governor Murphy gave an accurate description of the ‘state of the state’ and the need to do much more so prosperity is shared by all. The past four years proved that government need not sacrifice low- and moderate-income families at the expense of economic growth — because the two go hand in hand. Now, state government must remain as ‘boldly progressive’ as the Governor proclaimed it to be again today. Affordability for all is important — and New Jersey can’t afford to go backward.”

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Lame Duck Session Lacked Transparency, Disregarded Standard Legislative Practice

In the post-election Legislative session, New Jersey lawmakers’ activities included introducing and voting on a flurry of bills meant to benefit corporate interests and boost pension benefits for a select few politically-connected individuals — often without the text of legislation or an opportunity to testify at hearings being available to the public. In response to the lack of transparency during the lame duck session, New Jersey Policy Perspective (NJPP) released the following statement.

Jon Shure, Interim President, NJPP:

“The legislative process often is messy, but this lame duck session too often disregarded standard legislative practices and transparency. When the process isn’t open, the public simply can’t be put first.

“Closed-door legislating inevitably favors the privileged few and shuts out those who don’t have lobbyists. Too often, the winners in lame duck were casinos, horse racing, Hollywood studios, and the like. The people for whom New Jersey really needs to be more affordable often came up empty.

“There will be lame duck sessions in the future, of course. And we look forward to working with advocates for openness and responsiveness to the public to make sure the public interest remains the top priority at all times.”

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Passage of Abortion Rights Bill Sends Clear Message to Rest of Nation

Both houses of the Legislature today passed S49/A6260, codifying the constitutional right to reproductive autonomy, which includes the right to contraception, abortion, and to carry a pregnancy to term for everyone present in New Jersey. In response, New Jersey Policy Perspective (NJPP) released the following statement.

Sheila Reynertson, Senior Policy Analyst, NJPP:

“With reproductive autonomy and rights on the line in the U.S. Supreme Court, New Jersey just sent a clear message to the country that our state values the protection of abortion rights.

“More meaningful reform is needed, though, so that everyone has access to this time-sensitive care, regardless of their income or immigration status.

“The reality is that, ever since Roe v. Wade was decided, abortion care has been out of reach for far too many people in New Jersey. Those without any insurance or with inadequate insurance still need help paying for a procedure they might not be able to afford, including travel costs or covering high co-pays.

“We look forward to working with the administration to improve access and equity in reproductive health care in ways that uphold abortion rights — and improve the autonomy, well-being, and economic security — of everyone facing an unplanned pregnancy.”

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Comptroller Report Highlights Lax Oversight of Corporate Tax Subsidies

A report by the state Comptroller’s Office released today finds that the New Jersey Economic Development Authority (EDA) can and should do more to ensure businesses do not receive tax credits they have not earned. Specifically, the report highlights how the EDA still allows corporations to self-report data on job creation without independent oversight or auditing. In response to this report, New Jersey Policy Perspective releases the following statement.

Sheila Reynertson, Senior Policy Analyst, NJPP:

“This report shows that, with billions of taxpayer dollars on the line, the honor system is not an appropriate monitoring system.

“Handing out corporate tax credits based on the promise of ‘job creation’ works only if the state routinely verifies that the jobs are actually created. Unfortunately, no such verification system is in place. Instead, corporations are asked to report their own jobs data without effective oversight or independent auditing. Accountability to the people of New Jersey shouldn’t be treated as an afterthought.” 

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Casino Tax Break a Bad Bet for New Jersey

The New Jersey Senate today passed legislation that would provide Atlantic City casinos tens of millions of dollars in annual tax breaks despite having a banner bounce-back year in 2021. The bill, S4007/A5587, would reduce casinos’ payment-in-lieu-of-tax (PILOT) each year until 2026. In response to the passage of this bill, New Jersey Policy Perspective (NJPP) releases the following statement.

Peter Chen, Senior Policy Analyst, NJPP:

“Despite booming profits and rapidly expanding sports-betting revenues, state lawmakers gave casinos an early Christmas present of at least $145 million in tax breaks. The casinos’ own profit and revenue data shows nearly $600 million in profit in the first three quarters of 2021 alone. Once again, the house wins.

“Casinos already get special tax treatment through the 2016 payment-in-lieu-of-taxes (PILOT) law. This legislation accounted for fluctuating revenues by basing the PILOT amount on how much money the casinos brought in every year. Now, casinos are coming back for more, reducing their annual payments, as well as excluding from future calculations the fastest-growing part of their business: online sports betting worth more than $1 billion in 2021 so far.

“This losing bet for New Jersey deprives the state and its residents of much-needed public investments in schools, roads, services, and other building blocks of a strong economy.”

Read NJPP’s testimony in opposition to the bill here.

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Loosening Police Training Requirements is Not Only Tone Deaf, But Dangerous

The Senate Law and Public Safety Committee today voted out legislation to loosen training requirements for new police officers. S4208 would allow municipal and county police departments to establish a nine-month probationary period for new officers, during which they could assume police duties without completing basic training. In response to this legislation advancing, New Jersey Policy Perspective (NJPP) released the following statement.

Marleina Ubel, Policy Analyst, NJPP:

“Amid public demands for increased accountability in law enforcement, the committee’s action is not only tone deaf, but dangerous.

“We need more training for police, not less, given the pervasiveness of police brutality and that communities of color bear the brunt of it. In New Jersey, a Black person is 224 times more likely to experience police brutality than a white person. To end unnecessary use of force by police and create safer communities for everyone, legislators should pass bills that increase transparency, oversight, and accountability in policing — not bills weakening requirements that serve the public interest.”

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Expanding the Child and Dependent Care is a Great First Step in Addressing New Jersey’s Child Care Crisis

Earlier today, the New Jersey Senate and Assembly passed S4065/A6071, expanding the state Child and Dependent Care Tax Credit by making it fully refundable so that low-income residents can receive a cash refund even if the credit amount is higher than their annual income. In response to the Legislature passing the bill, New Jersey Policy Perspective (NJPP) releases the following statement.

Peter Chen, Senior Policy Analyst, NJPP:

“This legislation will help working families meet the high price of child care in New Jersey and balance work-family obligations that often seem insurmountable. Expanding the child and dependent care tax credit will put money back in the pockets of parents and caretakers who face staggering annual childcare costs, which are often as high as in-state college tuition.

“Although this is only a one-year change and a small part of addressing New Jersey’s child care crisis, the expanded credit is a critical lifeline for families struggling to care for the state’s youngest children — and a step toward making this a more just and equitable state that treats working people with dignity.”

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Expanding the Child and Dependent Care Tax Credit Will Help More New Jerseyans Meet the High Costs of Child Care

Earlier today, the Assembly Appropriations Committee unanimously passed A6071, making the state Child and Dependent Care Tax Credit refundable so that low-income residents can receive a cash refund if the credit amount is in excess of their gross income tax liability. In response to A6071 advancing out of committee, New Jersey Policy Perspective (NJPP) releases the following statement.

Peter Chen, Senior Policy Analyst, NJPP:

“Expanding the Child and Dependent Care Tax Credit will help more low- and middle-income families and their children meet the back-breaking costs of child care. Among low-income households nationally, average child care expenses eat up 34 percent of income.

“However, this legislation is only a first step towards meeting the broad range of costs facing families with children requiring care. Lower-income families with children spend a higher percentage of their income on child care and should receive a fairer share of the tax credit’s benefits. Child care assistance should more broadly reflect the financial needs of families, as well as covering informal child care, which makes up the bulk of non-parent child care. 

“New Jersey families can’t wait for relief from high child care costs, and a more equitable Child and Dependent Care Tax Credit is a good start. But a one-year bill will continue to treat child care expenses as one-off extraordinary events, rather than a core part of any family raising children in New Jersey.”

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Consensus Revenue Forecasting Would De-Politicize the Budget Process

Earlier today, the New Jersey Senate Budget and Appropriations Committee voted to pass S1350, a bill that would create a Revenue Advisory Board to provide consensus revenue forecasting, a budgeting best practice long-recommended by good-governance advocates and budget policy experts. The bill, amended in committee, would also require the Governor to report multi-year forecasting of expected spending, more detailed monthly reporting, and an annual financial stress test. In response to this vote, New Jersey Policy Perspective (NJPP) releases the following statement.

Sheila Reynertson, Senior Policy Analyst, NJPP:

“Consensus revenue forecasting would de-politicize the budget-making process, help boost public trust in state government, and improve the state’s standing with credit rating agencies. While this policy change may sound technical and benign, having the legislative and executive branches base their budget proposals on an agreed-upon revenue estimate will help limit budget gimmicks and redirect attention to more important debates about which programs to prioritize.

“This legislation also incorporates other budget planning tools to help lawmakers fund vital public services over the long-term, accounting for inflation and changes in the economy. Taken together, these reforms would break the cycle of politically easy maneuvers that have plagued New Jersey’s finances and allow everyone — lawmakers and the public alike — to better understand the consequences of tax and budget policy decisions.”

Read more about consensus revenue forecasting and other budgeting best practices in NJPP’s April 2021 report, Tools for Building a Healthy Budget.

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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.

Election Results Present Historic Opportunity to Pass Progressive Policies

Yesterday, Governor Murphy was declared the winner of New Jersey’s 2021 gubernatorial election. Governor Murphy’s win broke with 40 years of history: Not only was he the first Democrat since 1977 to be reelected to the Governorship of New Jersey, but his victory was the first time since 1981 that a party that had elected a new President the prior year was able to win the governorship of either New Jersey or Virginia. In response to the election results, New Jersey Policy Perspective (NJPP) releases the following statement: 

Louis Di Paolo, Communications Director, NJPP:

“This week’s election results present the biggest opportunity for passing progressive policy in New Jersey’s history. While votes are still being tallied and some legislative seats have yet to be called, what’s clear is that Governor Murphy ran — and won — on his record of passing laws that advance equity and build a strong economy for working and middle-class families.

“This is a wake up call that the old rules of New Jersey politics do not hold: avoiding tough decisions and policy positions will not protect elected officials. Voters want candidates who have a vision for the future and support policies that will benefit them, whether it’s good-paying jobs, a stronger safety net, high-quality public schools, or a fairer tax code. Political candidates, regardless of their party affiliation, should not run from their achievements but proudly and enthusiastically run on them.

“We look forward to working with Governor Murphy and the newly elected Legislature in the upcoming session on tackling bold and popular policies that advance equity and support workers and their families.”

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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.