The New Jersey Chamber of Commerce anticipates the state Legislature will pass the FY2023 budget and Gov. Murphy will sign it into law this week.
This budget surpasses $50 billion in spending – by far a record for this state.
The New Jersey Chamber of Commerce recognizes that many worthwhile programs are supported in this budget and we believe the budget makes some strategic investments in child care, infrastructure, innovation and workforce development.
We also believe the property tax relief program is a start to addressing the state’s affordability issues, but much more needs to be done in that area.
Even after crafting this record-setting spending plan, the state has billions of dollars available from the American Rescue Plan and projected tax revenues.
Despite this surplus, no substantial new investments are budgeted for New Jersey’s business community outside of a comparatively small outlay for the Main Street Recovery fund ($50 million out of $50 billion, or one-tenth of one percent of the budget) and the possibility of tax credits for some employers who pay into the unemployment insurance fund.
It is hugely disappointing that our repeated requests that surplus revenue be used for direct capital infusions to businesses desperately in need of help went unheeded.
Looking down New Jersey’s fiscal road, if we are to maintain the spending levels established by this budget, we need to make strategic investments in our businesses now so they can grow and the economy can grow with them.
The N.J. Chamber finds it inexplicable that these investments are not in the budget.
Everyone needs to ask two critical questions: Why does New Jersey continually choose not to invest in New Jersey’s business community when it is the surest way to ignite long-term economic growth. How will we maintain these record levels of spending without a robust economy to provide the tax revenue?
We will need sustainable, reliable, recurring and organic revenue to grow the state and a strong, vibrant and growing business community is the only sure way to achieve that. How will we do it?
We need answers.
