After eight years of cajoling (and criticizing) got them little from the governor in their efforts to make New Jersey a more business-friendly state, Tom Bracken and Michele Siekerka — the heads of the two biggest business chambers in the state —didn’t mask their annoyance at the record $58.8 billion budget passed Monday in Trenton.
Bracken, the head of the N.J. Chamber of Commerce, said his group was “deeply disappointed” in this year’s budget.
“It marks the eighth consecutive year of overspending and continues to show a troubling lack of focus on growing New Jersey’s current and future economies,” he said. “This budget makes the state less affordable, less competitive, and less business friendly.
“Rather than driving progress, it maintains a status quo that has failed to deliver real economic success — and it’s not what New Jerseyans want, as reflected in a recent Rutgers-Eagleton poll showing widespread dissatisfaction with the state’s economic direction.”
Siekerka, the head of the N.J. Business & Industry Association, agreed — calling the budget “anti-business.”
“We applaud the Legislature for working toward a budget that is by-and-large an improvement from what it was handed in February,” she said. “But at the end of the day, there is another structural imbalance, more than $700 million in additional, last-minute spending and hundreds of millions of dollars in tax increases — particularly for the business community – for one of the highest-taxed states in the nation.”
Bracken commended the governor and Legislature for including support for manufacturers, restoration of community college funding, elimination of certain sales taxes, expedited building inspections, and increased assistance for small businesses.
But he said there wasn’t enough to spur growth, which he feels is the best way to produce more revenue.
“What is noticeably absent from this budget is a forward-looking, growth-oriented economic strategy,” he said. “New Jersey continues to miss the opportunity to unleash the full potential of our business community.
“This budget does not do enough to encourage business investment and expansion. It overlooks the fact that sustainable, organic revenue growth is only possible through a strong private sector. Empowering businesses to thrive is the surest way to create long-term fiscal stability without burdening residents with more taxes. The budget sets us back economically.”
Siekerka agreed, pointing to the 2025 Blueprint for a Competitive New Jersey that NJBIA recently released.
“As stated in our (plan), we need structural reforms for our pension and benefits systems. We need more pro-growth spending and fewer one-time gimmicks that give no bang for the buck.
“We need budget policies that make New Jersey more competitive and less anti-business. And we need an improved and more transparent process for how our budget is finalized.
“Absent any of this, New Jersey will continue its solemn march toward a fiscal cliff, with more residents unable to afford to live, work and play here and more businesses unable to sustain or grow. We can do better. In fact, we need to.”
Bracken said he hopes the next governor will be more in the corner of business.
“This budget only steepens the economic mountain our next governor will have to climb – an already enormous challenge,” he said. “After eight years of punitive budgets targeting the employer community, I’m hopeful that chapter is finally closing.
“Looking ahead, New Jersey needs a governor who will prioritize fiscal discipline, reject new taxes, and place a strong emphasis on economic development and business attraction. That is the path to real, sustainable prosperity for all New Jerseyans. It is never too late to rescue our faltering economy, but it will be how boldly our next governor responds that will determine the fate of our fiscal crisis.”
