Nearly every program launched by the N.J. Economic Development Authority during Gov. Phil Murphy’s eight years offered enhanced benefits for companies locating in distressed areas, hiring from underserved communities, or committing to minority- and women-owned contractors.
Murphy’s moments
Gov. Phil Murphy spoke with BINJE Editor Tom Bergeron about his eight years in office. BINJE will produce numerous content items — all with an eye toward his impact on the business community. The schedule:
Wednesday
AM: COVID: A defining moment
PM: Energy: All in on offshore wind
Thursday
AM: Budget, taxes and pension payments
PM: Choose New Jersey
PM: The Disparity Study
Friday
AM: His legacy
PM: A last look back — and first look ahead
The Murphy administration also made New Jersey the first state in the country to codify a law that said LGBTQ-owned businesses could certified and be eligible for set-asides.
And first lady Tammy Murphy helped bring a chapter of Golden Seeds, the largest angel investor of women-owned companies in the country, to the state.
These are the types of accomplishments that progressives celebrate.
So why isn’t Murphy leaving office with universal praise from minority communities?
His record also includes the six years it took to produce a disparity study confirming what many already knew — that minority groups were largely shut out of government contracting — and the fact Murphy was unable to make any significant strides on the issue since the study was released in January of 2024.
To be fair, the governor needs help from the Legislature to address issues in the disparity study. And, to be sure, any change surely would be challenged in a court system that has been overturning programs that favor under-represented groups.
But Murphy himself admits he came up short in this key area.
“We’ve led the nation literally on helping LGBTQ+-, minority-, women- and veteran-owned businesses — the record there is unassailable,” he said last week during an end-of-the-administration interview with BINJE. “But I’m as upset about the disparity study as any critics are. It took us way too long to get it done.”
The study was startling and shameful. Among many inequities, it found that Blacks in the state represent 9.19% of the available construction businesses but received only 0.14% of the dollars on construction contracts valued over $65,000 to $5.71 million. The report estimates this potentially cost these businesses more than $200 million.
In the nearly two years since the release of the study, Murphy has mentioned it in major speeches (such as the State of the State) and even convened a meeting with legislators and media about proposed legislation. Little progress has been made.
“The study is the requirement, you then need statute on top of that,” Murphy said. “The lack of legislative progress has begun to frustrate me.”
Murphy’s record on social equity is strong. Dramatically raising the minimum wage and efforts to improve maternal and infant health certainly have had a strong impact in underserved areas.
But while leaders of minority groups say they appreciate the efforts the Murphy administration made to keep their pledge of a stronger and fairer New Jersey, they’ll be the first to say that they learned long ago not to hope for too much. They aren’t surprised by the inaction around the disparity study.
Murphy, as he approaches the final weeks of his administration, said progress on the issue is still on his wish list.
“In terms of what our realistic objectives are between now and the time we leave, we’ve got a pretty full agenda, but it’s on it,” he said. “The study took too long, guilty as charged, and really frustrating. Covid had something to do with it, but that’s no excuse.”
Murphy insists he is ready to sign any new laws until the day he leaves office.
“The pen is ready,” he said.
