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New Jersey
is facing one of its worst economic crises in modern
times. Recently Speaker Joe Roberts said “this is the
worst budget I have dealt with in twenty-one (21)
years. As the economic climate continues to worsen and
New Jersey
heads for a recession, there are many experts who
believe we are already in one, businesses are facing
severe choices of cutting back, leaving the state and
in some cases closing their doors. The impact on our
communities is further deterioration of our economic
base and the loss of taxable revenues to the
municipalities.
We
are all aware that DEP adds to the burdens of business
trying to grow and develop in the State. Additionally,
we are faced with the third round of COAH, which is a
disincentive for a municipality to want to do anything
for fear it will deplete existing limited financial
resources.
There may be three major efforts taking place that
could have the potential of reversing the downward
spiral for business in New Jersey: legislation to
change the onerous impact of the third round of COAH;
NEST International with the State of New Jersey and a
“Business Economic Stimulus Package and S281, “New
Jersey Economic Development and Promotion Act”
sponsored by Senators Kean and Adler.
The Administration and Commissioner Joseph Doria, DCA,
recognize the terrible burden that COAH’s third round
requirements would cause to both the municipalities
and business development. Working in conjunction
language, as we have been told, is being crafted that
would make it a straight across the board 3% fee for
entities to pay as their COAH obligation and
municipalities will find the cost of their “fair share
obligation” when seeking to send units to other
municipalities will be reduced closer to round two’s
amount than the outrageous amount sought under round
three. These changes will have a dramatic affect on
development and assist the municipalities moving
forward to grow their economic development ratables.
The hue and cry of the drafted third round rules would
have forced many municipalities to avoid development
at all cost. My Mayor, Patrick Delany, of
Lumberton
Township was prepared to discontinue all redevelopment
and development projects because of the fear that the
third round will bankrupt the township and harm its
residents financially.
As
soon as the legislation is introduced, NJCM should
organize and coordinate a legislative campaign to seek
passage of this important change to COAH.
Additionally, there are several other bills that have
been introduced dealing with COAH that would be of
benefit to municipalities that feel the burden from
COAH obligations. These bills require NJCM attention.
Throughout the State we hear the call for the State of
New Jersey to get its own house in order and look
internally at its own waste and inefficiencies to help
with the budget crisis. The State is looking to meet
this demand with the possibility of the expertise that
is provided by NEST International. NEST International
is a New Jersey based company located in Gloucester
City. They presently are in discussions with the State
of
New Jersey
to apply Nest’s expertise as a national management and
consulting company focused on building business
solutions to the facility maintenance and construction
needs of the retail, financial services and restaurant
industries to seek similar solutions in the operation
and maintenance of the State and it’s facilities and
programs. NEST has been able to save 10’s of millions
of dollars for their clients and the State is hoping
that they may do the same thing for them.
Additionally, NEST, in conjunction with my firm MGR,
has recommended to the Governor’s office, the
legislature and NJBIA (all of have voiced support) the
development of a “Business Economic Stimulus” package
that would have a positive impact on businesses and
bring into New Jersey new monies that presently are
leaving the State. Are you aware that the State of New
Jersey does a lot of it contracts with out of state
businesses even though we have highly qualified
companies in state? The same holds true for other
levels of government. Millions upon millions of tax
payers’ monies are being spent and sent to other
states. One measure presently being entertained by the
leadership in both Houses of the Legislature is
creating a “point system” for qualified New Jersey
businesses when bidding on State contracts. A second
measure deals with the issue of New Jersey businesses
contracting for services with out of state businesses
rather than use qualified local talent, which means
hundreds of millions of dollars are being spent
outside of the state. A measure is being considered by
the leadership that would provide a tax credit to New
Jersey
businesses that contract for services with
New Jersey companies. This would pump hundreds of
millions of dollars back into the economy for a small
investment by the State. Municipalities will benefit
tremendous from this two bill package by seeing job
and business growth that will increase state and local
revenues.
Lastly, S281 sponsored by Senators Kean and Adler
needs to be looked at carefully and supported by New
Jersey Mayors. This bill has two major purposes. First
it is intended to streamline New Jersey’s economic
development activities, which will assist businesses
grow and develop bringing in new revenue to local and
state government, by consolidating them within the New
Jersey Economic Development Authority and transfer the
funding of the operating expenses for economic
development out of the State’s General Fund.
Thus the answer to the headline for the article is a
cautious yes. New Jersey Mayors are in a position to
help this come about. There is a need for an
aggressive public/private partnership that will
benefit everyone. |
