Gov. Corzine taking steps to help grow state's economy

Appeared in Star Ledger and Asbury Park Press in April 2006

By Thomas A. Bracken, Chairman, NJ Chamber of Commerce
President & CEO, Sun Bancorp & Sun National Bank

As the saying goes, "the journey of a thousand miles begins with a single step." As Gov. Corzine passes the 100-day mark in his administration, it seems he's off to a running start.

For the first time in a long while, the employer community of New Jersey is optimistic about the direction in which our state is headed. The team Corzine has assembled understands that growing the economy is essential if we are to successfully compete with neighboring states, as well as the rest of the nation and the world, for high-quality jobs.

After years of neglect, New Jersey's image as a desirable place to do business suffered considerably. A recent Chief Executive Magazine survey revealed that CEOs from around the country believe New Jersey is the fifth-worst state in the nation to do business. The Tax Foundation also ranked New Jersey as having the second worst business tax climate in the United States. We have the highest property taxes in the nation and our combined federal, state and local tax burden is third highest.

Deeply concerned about the state's future, the New Jersey Chamber of Commerce launched the Platform for Progress Coalition. The group, which comprises companies, associations, chambers of commerce and individuals, developed a vision for the state in the areas of economic development, education, environment, government reform, health care and transportation. We are encouraged that the governor shares many of our recommendations.

In one of his first steps forward, Corzine tackled the crucial issue of ensuring that transportation funding is available to New Jersey for the next five years. That is important because a strong economy is tied to having a first-class transportation network that can move products and people.

Although we are concerned the plan relies too much on increased bond debt, we are pleased transportation dollars will be dedicated to transportation projects. New Jersey still needs a stable long-term source for funding transportation needs. Our leaders should not wait until the new five-year plan is about to run dry to come up with viable revenue options.

The governor's bold fiscal 2007 budget proposal is another step forward. One of our keys to economic prosperity is getting New Jersey's fiscal house in order. Lack of restraint and decisions to ignore structural deficit issues such as pensions and health benefits have resulted in a state budget that many argue is out of control. We are impressed that Corzine has a willingness to tackle many of the politically unpleasant budget problems that have plagued the state for too long.

The governor has also demonstrated his strong leadership ability by not playing the blame game and by personally taking responsibility for fixing the state's problems. He is not looking back, just to the future.We are pleased that for the first time in several years, the budget does not target the employer community as the primary source of revenue increases. Taxing the business community to plug deficits does nothing to encourage economic growth, especially when other states are cutting taxes. Once in the hands of the Legislature, however, keeping the key components of this budget in place and avoiding additional taxes on the business community will be an uphill battle.

Rutgers economists James Hughes and Joseph Seneca report that over the past five years, New Jersey lost 118,000 above-average-paying jobs while gaining 113,000 lower-paying service-sector jobs. Corzine and his team, including new economic czar Gary Rose, Commerce Commissioner Virginia Bauer and Economic Development Authority CEO Caren Franzini, are confident they can bring the quality jobs back, so our economic future is not in jeopardy. But bringing back quality jobs can happen only when state fiscal policy does not hamper a company's ability to grow.

The issue of improving the state's image has been a priority of the Platform for Progress Coalition - and thankfully for the governor. Since taking office, Corzine has made significant strides in this area by issuing executive orders to set ethics guidelines and create a commission on government efficiency. We look forward to working with the administration on continuing to rid New Jersey of impropriety at all levels of government. This will go a long way toward improving the state's reputation.

The employer community has been impressed with the first 100 days. Are there other steps that need to be taken? Absolutely. One of the most pressing issues is health insurance. The governor must lead the charge for a health care system that is accessible, accountable and affordable.

As Corzine continues to work collaboratively with business leaders to find solutions to our collective challenges, we will together return the state to its glory. All the pieces are there; we just have to travel down this road together. Then, we can look forward to a brighter future where New Jersey is again a great place to do business, earn a living and call home.

Thomas A. Bracken is chairman of the New Jersey Chamber of Commerce and chairman and CEO of Sun National Bank.

April 2006