Governor: New Jersey Positioned Well for Recovery 
State Putting in Place Initiatives that will Benefit Economy After Crisis  

Governor Jon S. Corzine used his State of the State Address today at the State House in Trenton to provide comfort to New Jerseyans, stating that although rough days are ahead, the state is positioning itself for a bright future when the economy recovers. He said state leaders have been working tirelessly to enact legislation and programs that will benefit employers and make New Jersey competitive in the long-run compared to neighboring states, as well as the rest of the country and the globe.

The Governor praised the tremendous leadership displayed by all as New Jersey tries to mitigate the impact of the worst national financial crisis since the Great Depression. He said he has collaborated with members of the legislature to put programs in place that address our state's most vulnerable while also keeping an eye on the state's economic future. The Governor pointed out that New Jersey's unemployment rate is at 6.1 percent while the national rate is 7.2 percent. He credited this to his Administration's strong focus on job creation.

The Governor said he has been trying to get the state back on track through $600 million in spending cuts, reducing the overall size of government and making sure spending equals revenues in the state budget. He went on to say that New Jersey has positioned itself well for a quick recovery whenever the national financial market turns around.

"The Governor, as well as those in the legislature, are responding to this economic crisis by rising to the occasion and offering innovative solutions," said State Chamber President Joan Verplanck. "Although times are tough right now, there should be some comfort in knowing that many of the actions taking place as of late will position New Jersey positively once the storm clouds have passed. The employer community will continue to offer ideas on how to grow the economy and create jobs desperately needed by New Jerseyans."

The Governor listed the following as his main agenda for the coming days and weeks ahead: 

• He has instructed the Local Finance Board to strictly enforce the 4 percent tax levy cap.
• The Governor requested by March 31 concrete recommendations on shared services and consolidations that will help save taxpayer dollars.
• The Council On Affordable Housing (COAH) was instructed  to work cooperatively and provide maximum flexibility and time for a collaborative review of the affordable housing plans submitted by the court's Dec. 31 deadline.
• There was a call for a one-year moratorium on the 2.5 percent developer's fee while also exempting projects in the pipeline before the fee was instituted.
• The Administration is committed to try and provide towns the option of deferring their pension commitments as a concession to the national economic crisis, as a way to provide flexibility for these towns to keep their property taxes down.
• He has directed the Comptroller to review how to post state expenditures on the Internet to increase accountability and transparency in the budget process.
• The Governor is committed to working to get an interim bonding question on November's ballot to extend the financing the voter's approved in 2007.
• Through infrastructure investment, the state will save or create 42,000 jobs. This includes building the proposed mass transit rail tunnel into Manhattan.
• The Governor called on the legislature to pass stronger ethics laws by closing loopholes in the state's pay-to-play ban, as well as ending wheeling and no-bid contracts at all levels of government. 

Chief Chamber lobbyist Jim Leonard, commenting on the State of the State, said, "the Chamber is pleased that the Governor recognized how detrimental the COAH tax is to economic growth efforts in New Jersey." He went on to say that, "the moratorium on the 2.5% COAH tax represents a good first step in removing costs that have been added to employers operating in our state." 

Leonard also said, "holding the line on the 4 percent property tax cap sends a message that the Governor is serious about reducing government spending."

The Governor also highlighted some of the tax reform and job creation bills he signed this past December. These included: 

• Signing legislation that expands the net operating loss provisions from 7 years to 20 years. (This is an initiative recommended in the Chamber Corporate Business Tax Package).
• Signing legislation that repeals the “throw out” rule effective July 1, 2010. (This is an initiative recommended in the Chamber Corporate Business Tax Package).
• Signing legislation that repeals the Regular Place of Business requirement effective July 1, 2010. (This is an initiative recommended in the Chamber Corporate Business Tax Package).
• Creating a new job creation incentive program where businesses with between 5 and 500 employees would receive $3,000 for each New Jersey job created.

The Governor will have more proposals when he unveils the fiscal 2010 state budget proposal in early March.  


Click here for the full text of the Governor's State of the State Address, as well as audio and video files.

Please contact Jim Leonard at (609) 989-7888 with any questions.