Trying to Get Companies to Stay Put in NJ

New Jersey is working on a bipartisan plan to overhaul its always controversial business economic incentive program, this time putting a greater emphasis on attracting jobs to the state, rather than just retaining them.

But critics warn that it could lead to spending even more money on a program that some see as a boondoggle for companies that will eventually choose to either stay or relocate based on criteria other than tax breaks. The Assembly passed the New Jersey Economic Opportunity Act, A-3680, on Monday by a 53-6 vote.

Designed to merge five different tax-incentive programs into one, the bill has 26 sponsors, six of whom are Republicans. GOP Assembly members cast all six votes against the measure and there were 15 abstentions, by both Democrats and Republicans. A similar but not quite identical bill, S2583, passed the Senate Economic Growth Committee two months ago.

That measure is sponsored by one Democrat and three Republicans. The bills will have to be reconciled before being sent to the governor.

New Jersey’s economic incentive programs -- which distributed $698 million to 228 projects last year, according to the state Economic Development Authority -- have been controversial. Critics complain that the state has been giving companies money to merely move from one community to another – Secaucus will lose about 1,200 jobs when Panasonic and Goya both move their headquarters to Newark with the help of $184 million in state tax incentives.

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