The Governor’s budget address this morning was both confusing and disappointing. We have a severe economic crisis and the Governor’s proposed budget would make it worse.
In the new reality of the COVID-19 economic shutdown, most businesses in this state have had to rethink their futures and make difficult and sometimes painful decisions. This is an opportune time for state government to do the same thing and rethink what it does.
Unfortunately, Governor Murphy’s address this morning shows it will be thinking as usual in Trenton.
The governor is doing what this state government always does when there is a revenue shortfall – propose new taxes - especially on the business community.
He is proposing these taxes while the state is still in the throes of a partial economic shutdown. Businesses across the state have been economically decimated and many are still waiting for clarity as to when they can reopen. They are struggling to stay afloat and keep their employees on payroll. For the Governor to propose new taxes in this environment is cruel and irresponsible.
The new taxes proposed by the governor do not make sense. They will not raise enough revenue to move the needle in a $40 billion budget. However they will further cripple existing businesses and keep away new businesses. This will only worsen, not improve, the problems the governor is attempting to solve.
Other aspects of the budget proposal do not make sense.
Why make a record pension payment and create a record surplus when reducing both would still be fiscally responsible and allow us to use more dollars to close the budget gap?
Why not also use those additional dollars to fund the working capital our businesses will need to fully recover from the downturn – something the NJ Chamber has been advocating for months?
Why are we not using these dollars for real incentive programs that will stimulate investment and growth?
Why are we not using these dollars to offer loans and grants to help businesses get back on their feet instead of levying new taxes on them?
Why are there no initiatives in the budget to cut the cost of government?
The governor has the authority he requested to borrow up to $10 billion to fill the budget gap caused by the downturn but borrowing is a one-time action with 30 years of interest payments as a consequence.
We urge the Governor and the Legislature to move away from the old Trenton way of thinking and make strategic decisions and investments that will provide long term and self-sustaining growth.
Cutting the cost of government, reducing the pension payments and the surplus, while creating opportunities for business growth is the foundation we need to make New Jersey more affordable and more prosperous.
We applaud the Governor for his vision of making New Jersey a better place to live and work but it is a strong business community and a vibrant economy that provides the fuel for the engine of prosperity.