If used as intended by the Biden administration, the state fiscal recovery funds granted to New Jersey through the American Rescue Plan Act (ARP) offer a once-in-a-lifetime chance to advance racial equity by investing in communities that were hardest hit by the pandemic and historically left behind in the lawmaking process. Yet, despite repeated calls from policy experts, community leaders, and advocates to prioritize disproportionately harmed residents, elected leaders have failed to deliver adequate direct relief to those who need it most.
With less than $1 billion remaining, New Jersey’s unique opportunity to provide immediate and meaningful relief to these families and communities is quickly slipping away. As Governor Murphy and lawmakers decide how to use the remaining funds, let’s not forget the “Rescue” in the American Rescue Plan. There are a lot of workers and families still struggling who would benefit from:
Direct relief for immigrant workers
Hazard pay for essential workers
Rental assistance for those facing eviction
Cash assistance for residents who maxed out their TANF benefits
Transparency Not Treated as a Priority
Based on current, available documentation, each new allocation of ARP funds in the latest budget lacks any kind of description, meaning there is no way to tell who exactly benefits from hundreds of millions of dollars’ worth of spending. For example, lawmakers allocated $300 million to water infrastructure, but without basic details it’s unclear which communities will benefit and which will be left behind.
In other cases, the allocation goes to a new or existing program that will require ongoing funding, drawing into question the state’s commitment toward its success once the federal funds are gone. Case in point: The state’s only public hospital received $50 million for a building assessment plan, but with no guarantee that the plan will be implemented.
The lack of information on ARP allocations also calls into question whether some of these investments were necessary at all — especially for funds sent to private institutions that should have plenty of resources to cover the costs themselves. For example, $13 million has been granted to two health systems for “hospital infrastructure” and workforce education.
The truth is: we’re nervous.
Despite ongoing requests to address the harms of the pandemic itself and the economic and social aftermath, the transparency with which final decisions are made has been dismal. The public, in fact, has not been granted a meaningful process by which to weigh in on how the remaining dollars are spent and, based on the uneven quality of issuances so far, that must change.
Lawmakers can start by allowing public testimony at future JBOC hearings — consistent with most other legislative committee hearings — so that policy experts, essential workers, and community leaders alike can weigh in on ARP spending proposals before they’re approved.
With less than $1 billion remaining in federal American Rescue Plan (ARP) funds, New Jersey’s unique opportunity to provide immediate relief to families and communities harmed by the pandemic is quickly slipping away. Roughly 85 percent of the $6.2 billion dollars in ARP funds have already been appropriated by Governor Murphy and state lawmakers, with more than $2.4 billion worth of federal funds included in the latest state budget. It’s hard to say whether this recent spending aligns with the Biden administration’s guidance to direct relief towards those disproportionately harmed by the pandemic, however, given the lack of transparency and publicly available information on these appropriations.
If used as intended by the Biden administration, ARP funds offer a once-in-a-lifetime chance to advance racial equity by investing in communities that were hardest hit by the pandemic and historically left behind in the lawmaking process. But with more than $5 billion appropriated behind closed doors and few details available to the public, lawmakers can and must do a better job of providing direct relief to workers, families, and communities who need the most help — and in a transparent manner that invites public input.
Newest Allocations Aid Institutions But Ignore Direct Assistance
The new state budget that took effect July 1 includes some big investments that align with how ARP funds should be spent: affordable housing development ($305 million), lead paint removal from homes ($170 million), new facilities to advance universal pre-K education ($120 million), and almost $100 million to upgrade state operations for social services.
But, despite repeated calls from policy experts, community leaders, and advocates to prioritize disproportionately harmed residents, elected leaders failed to deliver adequate direct relief to those who need it. The new ARP allocations through the budget did not include direct relief for immigrant workers, hazard pay for essential workers, rental assistance for those struggling to keep a roof over their head, or cash assistance for residents who maxed out their benefits through the Temporary Assistance for Needy Families (TANF) program. These deliberate choices made behind closed doors represent a lost opportunity to meet the moment and meaningfully improve the lives of New Jersey residents who are not paid enough to get by or cannot work at this time.
Transparency Not Treated as a Priority
Based on current, available documentation, each new allocation of ARP funds in the budget lacks any kind of description, meaning there is no way to tell who exactly benefits from hundreds of millions of dollars worth of spending. For example, lawmakers allocated $300 million to water infrastructure, but without basic details it’s unclear which communities will benefit and which will be left behind. Another $300 million was granted to Rutgers University, but only thanks to a reporter’s diligence do we learn that a third of it will pay for a new sports facility. Middlesex County’s community college and improvement authority each received $20 million, but without some context it’s difficult to determine the relevance of these one-time investments.
In other cases, the allocation goes to a new or existing program that will require ongoing funding, drawing into question the state’s commitment toward its success once the federal funds are gone. Case in point: The state’s only public hospital received $50 million for a building assessment plan, but with no guarantee that the plan will be implemented. The state’s new universal newborn home visit program was signed into law with much fanfare, but using these one-time fiscal recovery dollars ($6 million) to fund the first year casts doubt on whether the state will be able to sustainably fund the program in future years. Similar concerns arise around allocations for programs that are normally supported by state funds, like child-care subsidies ($48 million), grants for mental health ($15 million), and capital improvement projects across the state ($50 million).
The lack of information on ARP allocations calls into question whether some of these investments were necessary at all — especially for funds sent to private institutions that should have plenty of resources to cover the costs themselves. For example, $13 million has been granted to two health systems for “hospital infrastructure” and workforce education. The state should require extensive oversight of grants to private institutions at a minimum, including clawback provisions should misuse of this aid come to light.
What’s Next for ARP Funds
The state now has less than $1 billion remaining in state fiscal recovery funds that have yet to be designated — not including the $300 million in discretionary funds which the Governor can disburse in amounts of $20 million or less. The Joint Budget Oversight Committee (JBOC) will meet quarterly to approve proposed allocations above that $20 million threshold. The public has not been granted a meaningful process by which to weigh in on how the remaining dollars are spent and, based on the uneven quality of issuances so far, that must change. Lawmakers can start by allowing public testimony at future JBOC hearings — consistent with most other legislative committee hearings — so that policy experts, essential workers, and community leaders alike can weigh in on ARP spending proposals before they’re approved.
“Lawmakers may have said they’re finished with budget hearings after this week, but today’s People’s Hearing sends a clear message: New Jerseyans aren’t finished speaking up for what our communities deserve,” said Amy Torres, moderator of the virtual hearing and Executive Director of the New Jersey Alliance for Immigrant Justice.
The virtual hearing, organized by the For The Many NJ coalition, included testimony from essential workers, community leaders, advocates, and policy experts in support of using the federal funds to provide direct relief and support to families struggling to keep up with everyday costs.
“To advance racial equity and help the people still getting back on their feet from the pandemic, New Jersey should spend its flexible federal recovery funds on their intended purpose: direct relief,” said Peter Chen, Senior Policy Analyst at New Jersey Policy Perspective (NJPP). “Direct relief is itself a transformational investment. Helping people avoid poverty, homelessness, and deprivation reduces pain right now but also builds resiliency for the future.”
Signed into law in March 2021, the American Rescue Plan (ARP) provided billions of dollars in flexible funding for states and local governments to begin reversing the harms done by the pandemic and promote an equitable economic recovery. New Jersey state government received $6.2 billion in flexible aid, more than $3 billion of which is still available.
“New Jersey should not squander this opportunity. As state policymakers consider how to use more than $3 billion in remaining Fiscal Recovery Funds, they should work with communities to identify the best ways to use these funds,” said Ed Lazere, Senior Fellow in State Fiscal Policy, The Center on Budget and Policy Priorities. “The economic recovery remains uneven and incomplete, with many still struggling with incomes that are not enough to pay rent or afford food.”
Residents from across the state joined the hearing to share their stories and encourage lawmakers to provide more relief to families struggling to keep a roof over their heads and food on the table.
“The impact of the pandemic is not over for many who were already struggling in our state,” said Wandalynn Miftahi, a member of the Anti-Poverty Networks Garden State Leaders program who is unable to afford housing on her own. “Mature people who are viable parts of their communities and striving to assist future generations look forward to a more positive, supportive community to live in. With high and rising housing costs, New Jersey must devote more to help people of color access and maintain safe, affordable homes. We must remember everything starts at home.”
The hearing served as a reminder that the pandemic is not over, with many families still living in poverty: 1 in 10 families in New Jersey are currently having trouble finding enough to eat, a third of renters are worried they’ll be evicted in the next two months.
“Between COVID and the current economy, the low- and moderate-income families continue to struggle to pay for basic living expenses,” said Susan Biegen, another member of the Garden State Leaders program. “The Emergency Rental Assistance Program has not been able to keep up with the need with many families being told there is no funding left. American Rescue Plan funds would best be used by providing back rent, utilities, and food assistance so families won’t have to worry about eviction and hunger.”
Some lawmakers have suggested using federal assistance to provide tax cuts to profitable businesses despite a clear need to make the state more affordable for low- and moderate-income families.
“To make New Jersey more affordable for our low- and moderate-income families we must prioritize state revenues and American Rescue Plan funds to increase supports for families in deep poverty, allocate sufficient funds to keep people in their homes, expand health coverage to all kids and uninsured residents, and establish a state child and earned income tax credit,” said Maura Collinsgru, Director of Policy and Advocacy, New Jersey Citizen Action. “These programs will help ensure residents most impacted by the pandemic and rising inflation can not only survive, but thrive.”
Immigrant community members joined the virtual hearing to urge lawmakers to provide further relief to residents excluded from most forms of federal and state assistance — and for the state to invest in language access so all residents can apply for programs and services they already qualify for.
“Two years into the pandemic, there still are more than a half million people left behind from all forms of relief,” said Aida Mucha, Member Leader with Make the Road New Jersey. “It’s a disgrace that half of New Jersey’s federal ARP fiscal recovery funds are still sitting unused and unallocated when families like mine are struggling to pay bills. I worked throughout the pandemic to deliver food to families in quarantine, but I was excluded from aid like so many immigrant essential workers. I urge the state to take action now to provide direct relief to excluded workers.”
“Nearly one in two New Jerseyans is a person of color and almost a quarter of us are foreign born,” said Laura Bustamante, Policy & Campaign Manager, New Jersey Alliance for Immigrant Justice. “New Jerseyans speak over 155 languages, one in four households speaks a non-English language at home. With the recent increase in access to status neutral services and programs, newly eligible New Jerseyans are facing linguistic barriers, leaving these landmark initiatives inaccessible. Beyond that racial and ethnic categories currently used in agencies that capture demographic information are overly generalized, rendering distinct populations invisible. If the State is looking to make wise use of the dollars it invests in public programs, language access and data disaggregation will be necessary tools. ”
The pandemic and resulting economic fallout has disproportionately harmed Black and Latinx/Hispanic communities. Policy experts and advocates testified at the hearing in support of targeting aid to these communities to begin reversing racial inequities.
“Before New Jersey can become stronger, fairer and a more affordable state, there must be a commitment to equity and justice,” said Racquel Romans-Henry, Director of Policy at Salvation and Social Justice. “That commitment begins with but is not limited to significant investments in the development of violence interruption, harm reduction and restorative justice hubs; investments in neighborhood maternal health centers; community reinvestment of cannabis revenue; and funding the Office of Legislative Services so that they may prepare racial impact statements for policy changes that affect pretrial detention, sentencing and parole as required by S677 passed in 2018.”
“For the many students in our school who have seen pre-pandemic inequities impact their education at an even greater level, it is important that the state act now and accelerated addressing these challenges,” said Kaleena Berryman, convener of Our Children/Our Schools. “Funds should be allocated for student and educator mental health, building health and safety upgrades, and a concentrated approach to ensure students with disabilities and English language learners receive the extra support needed due to months of lost time. To make this happen, the state must also concentrate of fully staffing the Department of Education.”
“The impacts of the pandemic are still being felt by our schoolchildren and their teachers, especially in lower-income communities,” said Greg Stankiewicz, Statewide Coordinator, NJ Community Schools Coalition. “We urge the Governor and Legislature to allocate $10 million in American Rescue Plan funds to support expanding community school approaches to more low-income public schools, helping nonprofits and universities work together with school districts to provide additional needed services to students and families.”
“As Dickens wrote, we are living in the best of times and the worst of times for our state budget,” said Doug O’Malley, Director, Environment New Jersey. “We have a historically flush budget with an ample surplus as well as an additional $3 billion in reserve through the American Rescue Plan. Unfortunately, we still see ongoing raids to NJ Transit’s capital budget and the state Clean Energy Fund and flat funding to state agencies, as well as lead service lines and water infrastructure that need to be replaced. This is the moment to invest in our environment, clean energy and public health and make historic investments — and give the public a chance to weigh in on this opportunity.”
“New Jersey should not squander this opportunity. As state policymakers consider how to use more than $3 billion in remaining Fiscal Recovery Funds, they should work with communities to identify the best ways to use these funds,” added Ed Lazere of the Center on Budget and Policy Priorities. “The economic recovery remains uneven and incomplete, with many still struggling with incomes that are not enough to pay rent or afford food.”
Signed into law in March 2021, the American Rescue Plan (ARP) provided billions of dollars in flexible funding for states and local governments to begin reversing the harms done by the pandemic and promote an equitable economic recovery. Used correctly, these funds offer the once-in-a-lifetime opportunity to advance racial equity by investing in Black and Hispanic/Latinx communities that were hardest hit by the pandemic.
In its official guidance to states, the U.S. Treasury explicitly encourages using flexible funding to “foster a strong, inclusive, and equitable recovery, especially with long-term benefits for health and economic outcomes” in mind.[i] Rather than a scattershot approach, New Jersey’s plans for these unprecedented federal dollars should focus on supporting low-paid workers, their families, and communities who need the most help. This analysis explores the extent to which allocations made so far have targeted these communities and suggests ways that New Jersey lawmakers can meaningfully advance equity with the remaining $3 billion in federal funds.
Coronavirus State and Local Fiscal Recovery Funds
Coronavirus State and Local Fiscal Recovery Funds (FRF) can be used to reimburse states and localities for pandemic-related costs and to support families and communities most harmed by the pandemic. New Jersey state government received $6.2 billion in flexible aid; counties and municipalities received an additional $3.6 billion.[ii]
The Biden administration strongly suggests that state and local governments use federal relief to bolster public health, promote economic security, fund services for disproportionately harmed communities, invest in infrastructure, and provide essential workers with hazard pay.[iii] On the flip side, funds cannot be used to pay off debt or shore up a rainy day fund or other financial reserves. Nor can they fund public-worker pension payments or offset revenue losses caused by new tax cuts. States must allocate all funding by the end of 2024 and have until the end of 2026 to spend it.
The good news is that roughly half of New Jerseys $6.2 billion in flexible funds have been allocated so far, helping renters, public hospitals, small businesses, and child care providers, among others in need.[iv] New Jersey’s allocation rate is in line with other states.[v]
The bad news is that less than 5 percent of the allocated FRF dollars have actually gotten into the hands of the designated recipients.[vi] Until new programs get off the ground or existing programs use up other federal funds first, the money remains with the state Treasury. A similar lag occurred last year with the Coronavirus Relief Funds established under the CARES Act.[vii]
Tracking How New Jersey Has Spent Federal Pandemic Relief
The pandemic and resulting economic fallout has disproportionately harmed Black and Latinx/Hispanic communities — a harsh reflection of longstanding inequities in education, employment, housing, and health care driven by our nation’s legacy of slavery and systemic racism. The most effective way to advance equity is to target aid to these communities and begin reversing racial and ethnic disparities exacerbated by past policy choices.
But do the first rounds of emergency funding achieve this? Looking at these FRF allocations by specific sectors and affected communities identified by the Biden administration may offer some answers.
Services for Disproportionately Harmed Communities
Since receiving FRF dollars in May 2021, New Jersey has allocated $700 million to services for families and communities disproportionately harmed by the pandemic due to pre-existing health and economic disparities. . Special education received the bulk of funds in this category, with smaller investments steered to food assistance, lead hazard removal, and direct assistance for workers excluded from other relief programs. So much more could be done to provide assistance to these households and communities. Recommended projects that would directly respond to disproportionate impacts of the pandemic include re-employment training, vacant or abandoned property remediation, and services to address educational disparities and students’ social, emotional, and mental health needs.
Economic Harm from the Pandemic
State lawmakers have allocated $1.3 billion to address economic harm from the pandemic. Allocations made under this category may be used to assist struggling households, small businesses, and nonprofits, or to aid especially hard-hit industries such as tourism, travel, and hospitality.
The largest allocation so far, rental and utilities assistance, hits the mark as appropriately targeted to helping those who need the most help, as does support for affected businesses. But it’s questionable if aid for such projects as dredging the Woodbridge municipal marina or building a new visitor center at Great Falls — has any beneficial effect on low-income, Black, Hispanic/Latinx, or other disproportionately-affected communities.
A lack of intention or inadequate analysis of health or economic equity results in unclear benefits for certain programs. For example, “Return and Earn,” a subsidized job program covering the costs of wages paired with cash incentives, aims to help small businesses and workers get back on track, but it’s unclear whether these businesses and workers are focused on hardest-hit communities. Using FRF for services unrelated to pandemic recovery ignores the needs of households facing immediate hardships and neglects the opportunity these dollars present to address structural inequalities.
Premium Pay for Essential Workers
Premium pay, also known as hazard pay, is designed to compensate essential workers who faced — and continue to face — heightened risks and additional burdens during the pandemic. Many of these workers earn lower wages on average and are disproportionately Black and Hispanic/Latinx.[viii]
New Jersey has yet to recognize the enormous risk workers in health care, food service, education, and logistics were exposed to during the shutdown.[ix] These essential workers deserve fair compensation, yet they continue to be overlooked in federal relief and recovery legislation. Directing premium pay to those with limited income and those who often went without basic health and safety protections would make an immediate difference to these workers. One potential formula calls for up to 160 hours of hazard pay at $13 per hour for health care workers and up to 80 hours of hazard pay at $13 per hour for other essential workers.
How New Jersey Can Advance Equity with Remaining Federal Funds
New Jersey’s distribution of the remaining $3 billion in recovery funds must pivot to a strategy that advances racial, ethnic, and gender equity. That means prioritizing more financial support for working people paid too little to make ends meet, Black and Latinx/Hispanic residents, and immigrants. These are the households that suffered — and continue to suffer — harshly disproportionate economic and health consequences of the pandemic. It also means strengthening infrastructure in communities that have long suffered from underinvestment. Failing to use federal money to serve these purposes would be a lost opportunity to create a more equitable New Jersey.
End Notes
[i] SFRF Interim Final Rule (IFR) at 31 C.F.R. §35.6 (b) https://www.govinfo.gov/content/pkg/FR-2021-05-17/pdf/2021-10283.pdf
[ii] Cory Booker Press Release, Menendez, Booker Release More Details on How American Rescue Plan will Help NJ, March 2021. https://www.booker.senate.gov/news/press/menendez-booker-release-more-details-on-how-american-rescue-plan-will-help-nj
[iii] SFRF Interim Final Rule (IFR) at 31 C.F.R. §35.6 (b) https://www.govinfo.gov/content/pkg/FR-2021-05-17/pdf/2021-10283.pdf
[iv] New Jersey Governor’s Disaster Recovery Office, Financial Summary by Federal Act, December 2021. https://gdro.nj.gov/tp/en/financial-analysis/financial-summary
; State of New Jersey, 2021 Recovery Plan Performance Report, August 2021. https://home.treasury.gov/system/files/136/New-Jersey_2021-Recovery-Plan_SLT-3280.pdf
[v] Center on Budget and Policy Priorities, How States Can Best Use Federal Fiscal Recovery Funds: Lessons From State Choices So Far, November 2021. https://www.cbpp.org/research/state-budget-and-tax/how-states-can-best-use-federal-fiscal-recovery-funds-lessons-from
[vi] NJPP correspondence with Governor Murphy Senior Staff, January 27, 2022. The Bergen Record, NJ got $6 billion in COVID-19 federal relief. This is how it’s being spent, so far, Sept 2021. https://www.northjersey.com/story/news/new-jersey/2021/09/13/nj-covid-federal-spending/5782777001/
[vii] Pandemic Response Accountability Committee of the Council of the Inspector Generals on Integrity and Efficiency. https://www.pandemicoversight.gov/track-the-money/funding-charts-graphs/coronavirus-relief-fundOversight
[viii] American Journal of Public Health, Reopening the United States: Black and Hispanic Workers Are Essential and Expendable Again, October 2020. https://ajph.aphapublications.org/doi/10.2105/AJPH.2020.305879
[ix] State of New Jersey, 2021 Recovery Plan Performance Report, August 2021. https://nj.gov/covid19oversight/transparency/reports/docs/20210831FINALNJRecoveryPlan.pdf and New Jersey Department of Treasury, Office of Management and Budget’s Request for State Fiscal Recovery Fund Program Approval by Joint Budget Oversight Committee, November 2021. https://www.senatenj.com/uploads/23NOV2021-ARP-SFRF-Program-Approval-Request-JBOC-Memo-002.pdf
For all New Jersey residents to recover from the COVID-19 pandemic and resulting economic crisis, more financial relief needs to flow to people excluded from most public programs and federal relief efforts.
New Jersey is strongest when all residents have the resources they need to thrive, regardless of where they were born. Yet, New Jersey is failing to provide support that matches the scale of challenges that deepen financial hardship across the state — particularly for undocumented immigrant families who help fund the same public programs they are excluded from through state and local taxes.[i] Even before the pandemic, immigrants faced barriers to many critical programs designed to support individuals’ well-being and economic security. Now they are being pushed farther behind.
As a state with one of the nation’s largest immigrant populations, supporting immigrant communities is critical to New Jersey’s recovery and future prosperity. Though the state has taken some steps to address serious inequities in economic well-being throughout the pandemic, more action is needed.
New Jersey’s Investment in Excluded Workers Falls Short of Need
Responding to advocacy and organizing led by immigrant community members and organizations, and in the absence of legislative action, Governor Murphy in May 2021 established the Excluded New Jerseyans Fund, which was to use $40 million in federal Coronavirus Aid, Relief, and Economic Security (CARES) Act funds for one-time payments to New Jersey residents ineligible for unemployment insurance and federal stimulus payments.[ii] Eligibility is limited to households that suffered economic hardship due to COVID-19 and have annual income less than $55,000.[iii]
The state had until December 31, 2021 to distribute the $40 million in federal money before it expired. But with only $6 million in aid distributed by that deadline, the state reallocated $34 million to other expenses allowed under the CARES Act, including state government payroll and departmental costs. While it is unknown whether the state will add more federal funding to the program, the governor did add $10 million from a different pot of federal aid in December, and the Department of Human Services, who are administering the fund, promised that people already approved for funds would still receive benefits.[iv] The fund is set to end on January 31, 2022.
Even if the Excluded New Jerseyans Fund were kept at its original funding level, it does not match the aid provided to others facing financial hardship due to COVID-19. For perspective, if the state were to more equitably provide relief for excluded workers by matching the minimum amount of unemployment insurance received by other New Jersey residents who lost income since the onset of the pandemic, the Excluded New Jerseyans Fund would require $1.4 billion, plus additional funding for outreach and program administration. Further, matching the average amount of unemployment assistance received by New Jersey residents would require $2.7 billion.[v]
The benefit amount for the Excluded New Jerseyans Fund, set at a maximum of $2,000 per individual and $4,000 per household, is insufficient to meet the needs of most households for even one month, let alone the duration of the pandemic. The monthly cost of living in Mercer County, for example, is $3,300 for a single adult, $5,500 for a household with one adult and one child, and $7,900 for a household with two adults and two children, according to the Economic Policy Institute’s Family Budget Calculator.[vi] And, while the cost of living varies substantially according to household size, the Excluded New Jerseyans Fund does not account for household size — both the benefit amount and the income cap are the same for any household with two or more people.
Assistance offered through the Excluded New Jerseyans Fund pales in comparison to the relief available to unemployed citizens. The average state unemployment benefit for New Jersey residents ranged from $395 to $485 per week during the past two years.[vii] In addition to state unemployment insurance, a federal supplement of $300 to $600 through the Federal Unemployment Compensation Program (FPUC) was given to unemployment insurance recipients during certain periods.[viii] Beyond unemployment insurance, New Jersey residents with a Social Security number were also eligible to receive up to $3,200 per adult and $2,500 per child in direct stimulus payments if they met the income thresholds established under the federal CARES Act and American Rescue Plan (ARP).
An unemployed New Jersey resident who is eligible for unemployment insurance and is unemployed for the average (mean) duration of unemployment (currently 29 weeks) would be eligible for a minimum of $12,380 and average of $21,738 in unemployment insurance.[ix]
Not only do payments from the Excluded New Jerseyans Fund fall far short of the cost of living in New Jersey, but the size of the fund is also too small to reach all excluded workers. New Jersey is home to nearly half a million undocumented residents, over 300,000 of whom are in the labor force.[x] Under the $50 million promised in December, however, only 25,000 individuals or 12,500 households could benefit. Now that a majority of the fund was reallocated to other expenses, exponentially fewer workers will have access to relief.
Further, many other New Jersey residents will lose access to pandemic relief without a more robust Excluded New Jerseyans Fund, including people recently released from incarceration as well as those working in the cash economy who face barriers to accessing benefits like unemployment insurance due to work history documentation requirements. A larger investment in excluded workers would not only improve the economic security of those excluded from economic opportunity and public programs, but also help workers better afford necessities crucial to their families’ and communities’ health and well-being.
How State Lawmakers Can Support Excluded Workers and Families
Several states have made greater use of federal fiscal recovery funds to support workers left behind by existing supports. For example, Washington allocated over $300 million for financial support to immigrants whose economic security was threatened by the pandemic.[xi] This aligns with guidance from the United States Department of the Treasury, which has encouraged states to use federal relief funds to aid unemployed workers and families and those facing financial insecurity.[xii]
Many states have also used state dollars to invest in workers and families excluded from federal programs. New York, for example, created a $2.3 billion fund to support immigrants excluded from relief.[xiii] New Jersey lawmaker can learn from these states’ initiatives and do a better job of making public investments to support recovery for all New Jersey residents.
[ii] State of New Jersey, Governor Phil Murphy. May 2021. “Governor Murphy Announces $275 Million in Relief for Small Businesses and Individuals Impacted by COVID-19 Public Health Crisis.” https://www.nj.gov/governor/news/news/562021/20210507a.shtml
[iii] New Jersey Department of Human Services. October 2021. Excluded New Jerseyans Fund – Eligibility Criteria. https://www.nj.gov/humanservices/excludednjfund/apply/eligibility/
[v] NJPP analysis based on U.S. Department of Labor Weekly Unemployment Claims Data and Center for Migration Studies Population Estimates. This estimate assumes a benefit amount and duration that matches the average for New Jersey residents who lost employment and were eligible for unemployment insurance. The methodology for these estimates is adapted from the Fiscal Policy Institute’s brief, “Unemployment Compensation for Excluded Workers: $3.5 Billion Needed for 2020 and 2021,” available here: https://fiscalpolicy.org/wp-content/uploads/2021/03/FPI-Excluded-Workers-March-FINAL.pdf
[vi] Economic Policy Institute. “Family Budget Calculator.” https://www.epi.org/resources/budget/
[xii] United States Department of Treasury. “FACT SHEET: The Coronavirus State and Local Fiscal Recovery Funds Will Deliver $350 Billion for State, Local, Territorial, and Tribal Governments to Respond to the COVID-19 Emergency and Bring Back Jobs.” https://home.treasury.gov/system/files/136/SLFRP-Fact-Sheet-FINAL1-508A.pdf
[xiii] New York State Senate. “Excluded Workers Fund to Pass Bringing $2.1B in Relief for Those Left Out of Federal Stimulus and Unemployment Insurance.”
Welcome to NJPP’s State of the State 2022: Rapid Reaction, your source for commentary and data analysis on Governor Murphy’s recent address. The transcript below was taken from NJPP’s Zoom room and has been lightly edited.
Lou (Louis Di Paolo, Communications Director): On Tuesday, Governor Phil Murphy delivered his fourth annual State of the State address where he highlighted policies enacted under his first term, reflected on the state’s ongoing response to the COVID-19 pandemic, and laid out some priorities for 2022.
A big theme in his remarks: The past four years proved that state government does not have to sacrifice low- and moderate-income families at the expense of economic growth — because the two go hand in hand.
But, before we get into the speech, does anyone want to share their thoughts on the post-election legislative session that just wrapped up?
Peter (Peter Chen, Senior Policy Analyst): Although this lame duck session cleaned up a number of leftover measures to help families, such as the expanded child care tax credit, there were plenty of missed opportunities for progress.
Lame duck sessions are rarely opportunities for major legislation. But this one was also full of rushed giveaways to corporate special interests (casinos, Hollywood studios) and politically-connected folks, while leaving out priorities crucial to the wellbeing of communities of color and people struggling to make ends meet.
Marleina (Marleina Ubel, Policy Analyst): Yes, and on top of those issues, there was an unprecedented lack of access and transparency to the process. The public couldn’t enter the State House, and the last session, which included a historic vote on abortion access, had technical glitches in the livestream that went unresolved for over an hour.
Lou: All great points, especially on process and transparency. That was a big theme of last year’s address and it’s clear we haven’t made much progress on that front.
What about the Reproductive Freedom Act? That was the biggest issue of lame duck and dominated news coverage of the session. Sheila, for those who may have missed the last-minute negotiations around the bill that ultimately passed (the Freedom of Reproductive Choice Act), what should our readers know?
Sheila (Sheila Reynertson, Senior Policy Analyst): For starters, this was *not* the Reproductive Freedom Act. What made it across the finish line on the last day of voting was the protection of abortion rights and administrative plans to look into how high deductibles and co-pays may block access to this time-sensitive care. While the declaration of rights is quite strong, the legislation ultimately left behind New Jersey’s undocumented immigrant community. It did nothing to expand access or advance equity in health care. So more work is vital to ensure the well-being and economic security of everyone facing an unplanned pregnancy.
Lou: Thanks, Sheila. That’s really important context. But let’s get to the speech. What were your takeaways?
Brittany (Brittany Holom-Trundy, Senior Policy Analyst): The first theme that dominated the speech was, of course, the COVID-19 pandemic, and rightfully so. After nearly two years, some people might find discussion of the pandemic to be tiring, but with the continuing waves of cases and hospitalizations — and the health, schooling, and other long-term challenges facing New Jersey families — it’s critical we keep our focus on supporting all New Jersey residents and working toward an equitable recovery.
Lou: If only there was a group that had a blueprint of policies to secure an equitable pandemic recovery. Oh, wait …
Sheila: Governor Murphy did a great job demonstrating that a robust response to the pandemic is in line with his policy goals of strengthening New Jersey. The public investments that supported New Jersey families during a global pandemic are also the building blocks of a strong state economy: affordable health care, housing, child care, and higher education; support for small businesses, green jobs, and mass transit.
Brittany: And even when he stepped up and then stepped away from the podium, Governor Murphy made a point to wear his mask — which, as an example of healthy practices, is a nice contrast to some other leaders we see daily on television.
Peter: That goes hand-in-hand with the Governor’s broader vision of a New Jersey that works together and helps each other succeed. When we hear questions like “when will the economy recover?” or “when will schools go back to normal?” they’re really asking “how can we slow and manage the pandemic itself?” We all have to do our part to control and manage the pandemic, and the mask is a strong symbol of that shared responsibility.
The state of our state is resilient and ready to keep moving forward.
Together, will continue to build a stronger and fairer New Jersey that works for every family – while continuing down the path of recovery from the pandemic.#NJSOTSpic.twitter.com/gT3rxod7uN
Lou: Property taxes were another big theme — any thoughts on that?
Jon (Jon Shure, Interim President): It wouldn’t be a New Jersey State of the State speech without a governor pledging to work to reduce property taxes. I was involved in Governor Florio’s final State of the State and it was all about property taxes.
Governor Murphy accurately observed that school funding is property tax relief, for example. The real solution has to involve equitably increasing broad-based state taxes (sales, income) and using some of the money to pay for local services — and schools — for which New Jersey relies much more on local property taxes than do other states.
As NJPP pointed out a while back, the state would have made a lot of progress toward that better balance had Gov. Tom Kean not declared the final bipartisan recommendations of the amusingly named SLERP (State and Local Expenditure & Revenue Policy) Commission to be dead on arrival, four months before they came out.
Lou: Now that’s a throwback. Thanks for providing some important historical context there, Jon.
What was everyone’s favorite part of the speech? Or were there any topics you were especially glad to hear mentioned?
Peter: My favorite part was the no new tax pledge for the upcoming budget year.
Lou: Didn’t realize we had Grover Norquist here in the chat.
Peter: But seriously, I thought the Governor’s speech did a good job of outlining the positive role state government plays in the lives of New Jerseyans, especially in light of the pandemic. Too often, rhetoric around “government” and “taxes” obscures what government really is — schools, hospitals, transportation, infrastructure, child care. The institutions that undergird society and support thriving communities need cheerleading, and the Governor provided it.
But to go back to my snarky answer above, strong public services require public investments, and that requires revenue. Changes in the tax code are a key tool to ensure the wealthiest pay their fair share to support the services we all benefit from.
Lou: So true. And it’s worth mentioning that state lawmakers still haven’t reversed some Christie-era tax cuts that primarily benefitted New Jersey’s wealthiest residents (looking at you, estate tax).
Sheila: Amen, Peter. I appreciated the eloquent way the Governor presented progressive taxation.
“The price for having an unlimited upside cannot be an unlimited downside. New Jersey will never move forward if we cling to the outdated and selfish notion of, ‘I got mine and the rest be damned.'”
That theme was woven throughout the speech — from his position on the pandemic response to the political process. It’s such an important tactic at a time of deep divisions and harsh health and economic disparities.
Marleina: I was happy to hear about the growing cannabis industry! Wait. Never mind. We are still talking about how great the cannabis industry will be. You know, when it happens.
Lou: Speaking of drug policy, he also mentioned the importance of harm reduction in the state’s response to the ongoing overdose crisis. As the folks at the New Jersey Harm Reduction Coalition pointed out on Twitter, this is probably the first time harm reduction was ever mentioned in a New Jersey State of the State.
Today @GovMurphy became the first New Jersey governor to mention harm reduction in the #NJSOTS address.
— NJ Harm Reduction Coalition (@NJHarmReduction) January 11, 2022
Brittany: Yes! I love that the Governor has embraced harm reduction. It shows that we are building a state where everyone deserves access to needed care, without stigma, discrimination, or barriers. I’m also pleased that the importance of health and health care affordability remains a priority. We’ve learned so many lessons through the pandemic, and one that I hope will be a permanent change is this recognition that health for all New Jersey residents is key for a thriving state, now and in the future.
Lou: Did anything in the speech surprise you?
Marleina: Can I share one thing that didn’t surprise me? That New Jersey is growing! Both in terms of population and new jobs. New Jersey is a desirable place to be!
Jon: I know. Listening to the Governor extol the state’s advantages, I was thinking that if I didn’t live in New Jersey, I’d move here.
Peter: OK, but I saw some moving trucks leaving my neighborhood, so how can that be true?
Jon: I like that he attacked that bogus survey from a moving company that people still use to “prove” people are fleeing New Jersey. Here’s an interesting fact — the 3 states people move to most from New Jersey every year are New York, Pennsylvania, and Florida — and the top 3 states people move here from are — wait for it — New York, Pennsylvania, and Florida. There’s a lot of churning.
Lou: What was missing from the speech?
Sheila: The racial wealth gap in New Jersey. Reparations. Mental health crisis. Essential workers. The undocumented immigrant community. Educational and behavioral harm of virtual learning.
Peter: For a speech that mentioned criminal legal reforms, school funding, COVID-19, tax fairness, and environmental justice, there was no mention of the word “race” or “racism.”
The Governor mentioned Census data showing New Jersey’s growth since 2010. But that growth has also included increased racial and ethnic diversity. Without considering and combating the racial disparities in each of these issues, we run the risk of another unequal recovery. Even a quick glance at unemployment numbers show continued gaps in the recovery for different racial and ethnic groups.
Given the Governor’s commitment to policies that address racial justice, it was a bit disappointing that he excluded them from his address.
Marleina: I couldn’t agree more. This felt like the most glaring omission for me, along with the Excluded New Jerseyans Fund. Frontline workers are disproportionately women, immigrants (another word that was not in the speech), and people of color. It feels like they were left out, as the folks at Make the Road NJ were quick to point out on Twitter.
Immigrant women from across NJ call on @GovMurphy to fully fund #ExcludedNJ with $1 Billion.
Brittany: Absolutely, Marleina. As I mentioned earlier, I was very happy to hear health and health care affordability prioritized, but a narrow focus on affordability leaves out the fact that many residents are ineligible for coverage, even the affordable options being improved each year through NJ FamilyCare and GetCovered NJ.
So, in addition to cost growth control and affordability, I would have loved to have heard more about implementation of Cover All Kids, plans for opening up options for undocumented adults, as well as a commitment to addressing barriers to care for reproductive health — particularly abortion — that was left out of the recently passed, pared-down reproductive health act as Sheila mentioned earlier.
Jon: All true. But this was just the first in a trifecta of speeches Governor Murphy will deliver over the next couple months, the others being his inaugural address and the speech outlining the budget he’ll purpose for the fiscal year that starts July 1. My fingers are crossed that he held back some good stuff for those occasions.
Lou: Sounds like a lot of unfinished business for the new legislative session and Governor Murphy’s second term. What’s everyone looking forward to accomplishing in term two? And yes, this is an opportunity to once again plug the policies in our Blueprint…
Marleina: I am looking forward to shrinking the number of people incarcerated in this state. The pandemic showed us that decarceration is possible and can happen quickly. I am excited to see that work continue.
Also, I hope to see real reform in criminal justice and policing. There is a lot of work to do and there are bills waiting to be signed that could really move us toward a more transparent and accountable system.
Peter: Given the Governor’s focus on affordability for working families, I’m hoping to see an ambitious agenda of tax credits and supports, such as a state-level child tax credit and a more expanded state earned income tax credit for New Jerseyans paid too little to get by, especially in this difficult time. To make life more affordable, as he promises, we’ll need strong public investment on behalf of New Jersey’s low- and moderate-income families.
Brittany: Agreed. Along those lines, I want to see significant TANF reforms so we can finally bring that program into the 21st century and move it away from its racist roots. And in addition to things I mentioned before, I’m looking forward to actions that will help all New Jerseyans get quality health care. So I’ll be following things the Governor’s mentioned in the State of the State like analyzing prescription drug costs, which could include creating the Prescription Drug Affordability Board. Passing and establishing an Easy Enrollment program (which he conditionally vetoed this legislative session) too would help get more New Jerseyans insured.
Availability, affordability, accessibility, quality — there are plenty of issues for the Gov’s team to pursue in term two!
Sheila: I appreciate the idea of tending to the policies of the first term to ensure their longevity. That being said, there is room in his second term for more tax reform, especially when it comes to taxation of inherited wealth. The amount of foregone revenue that is instead flowing into the pocketbooks of a few thousand very wealthy families every year is a policy failure, plain and simple. The Governor has made it clear that taxation based on ability to pay (unlike the local property tax) “open[s] opportunities for more New Jerseyans to gain the tools they need to have their own prosperous future.”
Lou: Amazing. Thanks, team! Any final thoughts?
Peter: Next time we do this we need more memes.
Lou: Noted. We’ll make that a priority next time we do this. Go, team!
Medicaid provides a crucial safety net for families experiencing economic hardship and saves thousands of lives during public health crises like the COVID-19 pandemic. With the federal pandemic public health emergency (PHE) extended again on October 15th, but expected to expire in early 2022, the upcoming return to pre-pandemic redetermination processes and rules on continuous enrollment threatens families’ health insurance coverage.
Thousands of New Jerseyans at Risk of Losing Health Coverage
New Medicaid applications have now fallen below pre-pandemic levels, a positive sign and reflection of how pandemic relief policies have protected many of those who may otherwise have exited and then re-entered Medicaid in a short period of time due to unstable employment and income.
However, around 320,000 New Jerseyans will lose Medicaid coverage in 2022 with the reintroduction of eligibility processes and the end of continuous coverage, resulting in a 19 percent decrease in enrollment compared to the end of 2021. Disenrollment from NJ FamilyCare will jeopardize health insurance for residents with low incomes. It will also disproportionately threaten the coverage of Black, Hispanic/Latinx, and mixed race families, who are disproportionately represented in the program and are more likely to experience housing and employment instability, limiting their ability to complete redetermination processes that require extensive and onerous documentation, workday commitments, or mailed notifications.
To Prioritize Equity, New Jersey Must Plan Proactively
The harms created by the sudden end of the PHE and return to normal eligibility processes necessitate state plans that center health equity. New Jersey decision makers can reduce adverse effects with several measures:
Use a 12-Month Timeline for Disenrollments
Guidance from the Centers for Medicare & Medicaid Services (CMS) allows states to take up to 12 months to return to normal income eligibility after the month in which the PHE ends, but states may choose to implement this more quickly. A slower rate for disenrollment would allow more time for beneficiaries to complete the redetermination process, fully understand their other options if they are no longer eligible, and plan for next steps in maintaining health insurance coverage.
Create and implement a communication strategy that meets people where they’re at
Complicated forms, extensive documentation requirements, and language access issues make it difficult for Medicaid beneficiaries to meet the necessary requirements of redetermination, even if they are still eligible. Actively addressing these barriers through strategies like pre-populated forms, state officials can better serve the diverse population that relies on Medicaid.
Partner with Navigator organizations and other community groups to amplify messaging and build trust
Many New Jerseyans turn to community organizations and local leaders that they trust for health insurance information. By following a structured, data-driven plan that includes clear guidance and resources for outreach to Navigators, the state can use communication channels that already exist and reach many residents who may otherwise miss the department’s messaging.
Explore Continuous Coverage, Autorenewal, and Other Coverage Opportunities
Addressing instability in Medicaid coverage requires advancing technology and policies that provide greater flexibility under changing circumstances. The state can explore a Section 1115 demonstration waiver to extend Medicaid’s 12-month continuous eligibility to adults, similar to the coverage currently provided to children. It can also improve data-sharing across state departments to simplify and efficiently process automatic renewals. Finally, clear communication or easy transfers to other insurance options for those determined to be ineligible for Medicaid — as many will be eligible for the Children’s Health Insurance Program (CHIP) or subsidized marketplace coverage through GetCoveredNJ — can help keep families covered.
Air quality improvements may pay dividends beyond reducing COVID-19 exposure. Research has shown that reductions in indoor air quality coincide with decreases in test performance in school. This is particularly concerning for the many New Jersey school children who live in areas with low outdoor air quality due to proximity to highways, busy intersections, and industrial facilities. One study found that 13.8% of New Jersey schools are within 250 meters of a major roadway, with high-poverty schools eligible for Title I funding 67% more likely to be near a major roadway than their higher-income counterparts. Although less obvious than curriculum or teaching staff, improving indoor air quality may be an important, if overlooked, component of student and teacher performance.
New Jersey School Implementation Of Air Quality Standards Can Vary
Like all public buildings, New Jersey public schools are governed by the state’s indoor air quality standards, N.J.A.C. 12:100-13.1 (2007). The State has issued guidance summarizing these requirements and providing recommendations for improving ventilation. This standard requires checking whether carbon dioxide levels exceed 1,000 parts per million, which may require regular carbon dioxide monitoring. However, implementing these standards is largely dependent on proactive approaches by individual school districts and boards of education, and some of these changes can be expensive, especially changes to a school building’s ventilation system.
Resources Are Available For School Districts To Improve Their Ventilation And Air Quality
Federal funding through the American Rescue Plan can be used on physical ventilation improvements and improved airflow in school buildings, including HVAC system upgrades, filters or filtration devices, and carbon dioxide and other air quality measurement devices. Guidance is available here.
If local lawmakers and school board officials take advantage of these new resources, the current focus on ventilation and airflow in schools could result in substantial improvements for student and school staff well-being, as well as academic performance.
Despite New Jersey’s reputation as a high-wealth state, poverty remains pervasive, with roughly 1 in 10 New Jersey residents living in poverty. New Census data show that 871,000 New Jersey residents were living in poverty between 2018 and 2020 based on the Supplemental Poverty Measure, a more comprehensive Census measure of poverty.
Nationally, New Jersey ranks 25th in the percentage of its population living in poverty. Considering New Jersey residents’ median income is routinely among the top in the nation, its poverty rate shows how inequality remains a large problem in the state.
Bold Public Investments Help Reduce Poverty
Although the poverty figures are three-year estimates, the new data show how the COVID-19 pandemic led to a striking decline in household incomes nationally. With historic job losses and unemployment, many people struggled to make ends meet. However, effective government stimulus programs helped mitigate this economic cost and keep families out of poverty. These programs included: expanded unemployment insurance, direct aid checks, refundable tax credits, suspensions of evictions, and forbearance of mortgage and student loan payments.
Federal stimulus checks alone kept nearly 12 million Americans out of poverty, with millions more helped by expanded unemployment and refundable tax credits (see figure below).
Unfortunately, many of these poverty-reducing programs are ending soon or have already ended, despite continued economic turmoil for New Jersey’s low-income residents. As NJPP’s recent employment report details, the economic hardship caused by the pandemic still weighs heavily on low-wage workers and the unemployed, who are disproportionately Black and Hispanic/Latinx.
And it was precisely these populations for whom the anti-poverty effects of COVID-19 were strongest, reducing the percentage of people in poverty nationally by:
7.4 percentage points for those without a high school diploma
4.7 percentage points for those who worked part-time or did not have work at least part of the year
1.7 percentage points for white, non-Hispanic residents
4.3 percentage points for Black residents
4.9 percentage points for Hispanic/Latinx residents
The “official” poverty measure compares a family’s cash income to the cost of a minimum food diet from more than 50 years ago, failing to account for other household costs like housing or utilities and failing to adjust for geographic differences.
The Supplemental Poverty Measure includes a wider range of cash and non-cash benefits and costs, including taxes and tax credits, food assistance, work or medical expenses, and child support, while also accounting for more costs like clothing, shelter, and utilities.
Even the Supplemental Poverty Measure fails to account fully for the high cost of living in New Jersey, as noted in a recent report from Legal Services of New Jersey on the true cost of poverty. Based on the “official” poverty measure, New Jersey’s poverty rate between 2018 and 2020 was 7.6 percent, compared to the Supplemental Poverty Measure of 10.0 percent.
For more information on the supplemental poverty measure, see here>.
The following testimony on American Rescue Plan funds was delivered before Governor Murphy’s American Rescue Plan virtual hearing on July 28, 2021.
Good morning. I’m Sheila Reynertson and am a Senior Policy Analyst at New Jersey Policy Perspective (NJPP), a member of the For the Many NJ coalition. Thank you for the opportunity to testify on how best to administer the remaining $4 billion in Fiscal Recovery Funds (FRF) made available through the federal American Rescue Plan.
NJPP is fully aligned with the U.S. Treasury’s recommendation to use these flexible funds to “foster a strong, inclusive, and equitable recovery, especially with long-term benefits for health and economic outcomes.” The most effective way to achieve such a goal is to target aid to those most in need and begin dismantling racial, gender, and economic inequities exacerbated by the pandemic.
New Jersey must be aggressive in reversing the pervasive barriers that keep the safety net out of reach for some families and allow poverty to remain widespread. Benefit programs are difficult, and sometimes impossible, to navigate for residents already under extreme stress. Unnecessary red tape for those struggling to find a job, feed their kids, or manage a health crisis is both punitive and regressive.
NJPP recommends using FRF dollars to spearhead a robust outreach campaign and application assistance for all social safety net and support services, targeting communities that face systemic barriers to learning about and accessing support programs, including immigrants and people of color with low-incomes as well as families in deep poverty who are less likely to owe and file taxes and, as result, may miss out on tax credits for low-paid workers and their families.
Provide Direct Cash Assistance to Residents Who Need It Most
Second, NJPP recommends using relief funds to stabilize residents facing hardship and keep their children safe from the long-term effects of deep poverty. The most straightforward way to boost household income of families who are living paycheck to paycheck is to provide direct cash payments with no strings attached — and regardless of immigration status. In fact, one targeted population that must be included is the nearly a half million undocumented immigrants who have been excluded from almost every form of state and federal relief for the past seventeen months. New Jersey can provide relief to these residents by fully funding the Excluded New Jerseyans Fund.
Support Low-Paid Essential Workers with Bonus Pay
It can’t be said enough: Those who worked outside of their home during the pandemic providing critical services like health care and food production were overwhelmingly women and people of color — and they often went without basic health and safety protections, paid leave, or hazard pay. These workers deserve recognition through fair compensation, yet they have been repeatedly overlooked in federal relief and recovery legislation. New Jersey can rectify this using FRF dollars to provide bonus pay to those with limited income and those who worked in difficult and often dangerous conditions so the rest of us could quarantine safely at home.
Advance Health Equity
Past policies and continuing racism in health care — the effects of which were on full display during the COVID-19 pandemic — have disproportionately burdened Black, Hispanic/Latinx, and indigenous populations. The physical and emotional toll of such disparity will be felt for years to come. NJPP recommends using FRF dollars to break down barriers and expand access to high-quality and affordable mental health care services for adults and children through provider recruitment efforts, insurance expansion, and improved Medicaid reimbursement. To reach chronically underserved low-income areas and Black and Hispanic/Latinx communities, fund mental health outreach efforts through community-based organizations. To reach pandemic-stressed students in high-poverty schools, provide enhanced payments for behavioral screenings and school counselors and mental health professionals.
Incorporate Racial Impact Analysis into Selection Process and Data Collection
Finally, even with the best of intentions, New Jersey’s distribution of these recovery funds is likely to exacerbate racial injustice without intentional strategies to do otherwise. To demonstrate a commitment to an equitable recovery, NJPP recommends that racial equity impact assessments be produced for FRF grants that have a potential racial impact. New Jersey can also foster a culture of advancing racial and gender equity by improving its data collection with data on gender, race, and ethnicity. By modernizing the IT infrastructure across departments, New Jersey can enhance the quality of administrative data to better evaluate existing programs and demonstrate transparency.
These recommendations would make the biggest difference in providing long-term benefits for communities most at risk of being left behind and laying the groundwork for a more prosperous future for all New Jersey families.
