While praising government rhetoric, business leaders echo policy concerns

In his January 10 State of the State address, Gov. Phil Murphy laid out his vision for shaping the “next New Jersey,” citing the Garden State as a national model of opportunity and opportunity. “New Jersey is a place where opportunity exists, education is valued, justice is embraced, compassion abounds, and the American Dream is alive and well,” Murphy said. “We’ve done a lot to make New Jersey the best state in the nation to live, work and raise a family, but we can do even better.”

Business leaders across the state generally applauded the governor’s tone and the direction he is taking.

“The best advertising we can do to attract business to the state is to make the businesses in the state happy,” said Tom Bracken, president and CEO of the New Jersey Chamber of Commerce, in response to Murphy’s speech. “There’s no better way than to present a good image, I mean, from a business perspective, put your customers in a good place. And the customers of the state of New Jersey are the businesses here.”

Bracken described the speech as one he believes New Jersey needs and is “very appropriate.”

“I hope that the trend will start to be happier than we are. This will help us move forward as a country,” he added. “The region is not where we want to be from a business perspective. There is a lot we can do to make it a better business environment and create a better economy. If we go in there with a better attitude, we will progress.” We’ll have a better chance of doing it.

New Jersey Business and Industry Association President and CEO Michelle Sikerka said as she begins the second year of her second term, she recognizes and appreciates recent steps taken to improve New Jersey’s business climate. Address of State “In particular, last week’s signing of Bill A573 and last month’s signing of Bill A4929, which accelerates construction inspections, will bring flexibility to New Jersey’s economic incentive requirements related to remote work, which has been much needed and accepted by the business community.”

Siekerka also mentioned the recent announcement that Netflix will build a new production facility in Fort Monmouth.

“These initiatives provide tax revenue, permanent and temporary jobs and important economic activity for the state,” Sikerka said.

“From some of the recent announcements and some of the recent legislation, the message that we’re a little optimistic and trying to improve our image. That all sat well with me,” Bracken said. “We’re not there yet. We’ve got a long way to go. It’s giving me optimism that if we keep going, we can get there sooner than usual.

During the speech, Murphy highlighted several of the administration’s accomplishments, recent initiatives and plans for 2023 and beyond. NJBIZ covered most of these things throughout our coverage last week. Among the list of new announcements were extending the application deadline for the ANCHOR property tax program, reforming the state’s antiquated liquor license laws and creating a new boardwalk fund to support coastal towns and cities.

Among the accomplishments are 31 consecutive months of job growth, the unemployment rate falling to 3.4%, increased third-quarter GDP growth, raising the minimum wage, advancing critical infrastructure projects, the state’s recent credit rating upgrade, and more. .

A large part of the speech focused on continued efforts to build new sectors such as film and television, sports betting, legal cannabis, fintech and offshore wind, as well as renewing the state’s historic position in life sciences and manufacturing.

“We were better than most of the so-called ‘business friendly’ states – some say we should emulate. States like Georgia and Florida. “We have a better track record of success than states that take away investments from public education and civic programs and give huge tax breaks to the rich and powerful,” Murphy said. “In New Jersey, we’re making sure we can live our values, improve our lives and compete with anyone. But more than that, those regions are not leaders in emerging industries. we are.”

While Murphy said he’s proud of major companies bringing investment to the Garden State, he acknowledged the state’s economy depends more on the health and vitality of small businesses and downtowns.

“A film set in one of our great and historic downtowns is a big deal. But what’s even better is knowing that your main road is going to be just as active and as soon as it’s on, after the cameras go off,” Murphy said. “Our downtowns took a beating during the outbreak and we are committed to restoring them completely. We’ve helped our downtowns and small businesses get through some of the darkest times and recover with over $1 billion in support. And collectively, in our last budget, we’ve maintained our $50 million investment in the Main Street Revitalization Program.

The business community has welcomed the recognition of small businesses and downtowns, but they are asking for more help.

“We believe the administration is and should be doing more to address opportunities for New Jersey’s small businesses,” Sikerka said. “In the NJBIA 2023 Business Outlook Survey, 82% of businesses said New Jersey is either somewhat unaffordable or not at all favorable for doing business. That is not speech. Rather, it reflects what we and our business-supporting peers hear every day.

Sikerka added that while the business subsidies are appreciated, they don’t compare to the comprehensive and well-deserved relief needed to help the overburdened small business community.

Bracken expressed cautious optimism about what he heard from Murphy. “In his speech, the governor acknowledged that our small business community is still suffering,” Bracken said. “And I think it’s a good sign that he recognizes that some of the things we have on the table are needed.

The overall business response is essentially creating a “next New Jersey” that attracts new businesses, but businesses should not be overlooked as policymakers face many challenges and costs. Some of the contentious issues between Murphy and the business community include the delayed unemployment insurance trust fund, the need for more aid for undercapitalized businesses and, of course, taxes.

Sikerka noted that unlike many other states, New Jersey did not use surplus Covid funds to help replenish the UI Trust Fund. “This $1 billion unemployment tax is a business tax increase, a job tax, and because of the longest pandemic shutdown in the country, every New Jersey business now costs hundreds of dollars more per employee than before. to the epidemic,” Sikerka said. “Just as we heard a lot about ANCHOR property tax relief in the governor’s address today, it’s worth noting again that New Jersey businesses are excluded from the relief — even though they pay nearly half of the state’s property taxes.”

Two other pressing issues drew some significant response after the speech. First, when discussing the administration’s clean energy efforts, Murphy didn’t provide much detail about the potential of buildings around the state to generate electricity.

“He refused to justify his costly and intrusive policy of requiring every building in the state to be retrofitted with electric heat,” Eric DeGecero, executive vice president of the New Jersey Oil Merchants Association, said in a statement. With today’s lack of sincerity regarding the most radical change in the state’s energy, environmental, housing and economic policies in New Jersey’s history, the silence on electrification continues unabated. Governor Murphy is putting your money where his mouth isn’t.”

Another unresolved issue at the local and county level is raising state health insurance premiums.

“As most New Jersey municipalities prepare their 2023 budgets, those participating in the State Health Benefits Program (SHBP) still have no agreement on additional state revenue. SHBP, the New Jersey State League of Municipalities, said in a statement. “While negotiations are underway, this issue must be resolved as soon as possible to minimize fiscal and revenue issues.”

That’s the first in-person speech since 2020, a game-changer for the upcoming Budget address in a matter of weeks.

“We always had to argue. In the past, it was our line of defense against all kinds of pranks and pranks. But not anymore,” Murphy said. “It’s okay to admit it — it’s good to be from New Jersey again. It’s good because again we’re leading with all the right stuff. Protecting basic rights and respecting the human dignity of every New Jerseyan. Attracting tomorrow’s high-growth industries. Creating opportunities for every individual, in every community, to get a world-class education and a well-paying, family-supporting job.

“And, because we’re hosting the World Cup in 2026,” Murphy added.

Bracken said he believes the Jersey Pride theme of Murphy’s speech, his praise, especially about the suffering small business community, as well as those recent announcements and laws can be an improvement.

“We have to go in the same direction from yesterday,” Bracken said.