On Monday, the State Department of Treasury and the Office of Legislative Services each forecast a revenue windfall for New Jersey in testimony before the state Senate Budget and Appropriations Committee.
If their estimates are borne out, New Jersey’s coffers will see almost $7 billion more in revenue than was projected by the Murphy administration in March for fiscal years 2022 and 2023. This windfall is bolstered by increased economic activity in the state since the COVID-19 pandemic restrictions were eased.
This revenue windfall is in addition to the reported $3 billion still available to New Jersey in American Rescue Plan funding.
With about $10 billion at its disposal, there are no longer viable reasons why Trenton cannot provide financial support to the business community on a scale equal to the programs that have helped Gov. Murphy realize the fairer economy he envisioned.
Some legislative leaders are already calling for tax relief and rebate programs for the state’s taxpayers.
The New Jersey Chamber of Commerce urges these leaders to remember the New Jersey business community when it comes to tax and financial relief.
Our businesses remain the most heavily taxed in the nation and now we have the chance to move toward ending this unwelcome distinction.
For example, state leaders can do two things immediately. They can make more grants available to small businesses that are still looking to get back on their feet since the pandemic, and they can allocate some of the surplus revenue to the unemployment insurance fund in order to ease the tax burden this fund puts on small businesses. These are just two of many examples.
A number of lawmakers are voicing concerns about the state sustaining the revenues required for the level of spending resulting from this revenue windfall.
Trenton needs to realize that the only chance to maintain this level of revenue is to create a vibrant state economy, and the only way to do that is to invest in the growth of the business community that Trenton ultimately turns to for the tax revenue it needs.
The N.J. Chamber recognizes that there will be many worthwhile requests for these surplus dollars but investing in the business community will generate long-term prosperity for New Jersey and will benefit every citizen in the state.