New Jersey Citizen Action released this statement following the Senate Select Committee’s invite-only hearing on the New Jersey Economic Development Authority’s corporate tax subsidy programs.

“The public hearing today did nothing to advance the discussion about the need to reform one of the nation’s most costly and least effective corporate subsidy programs,” said Dena Mottola Jaborska, Associate Director of New Jersey Citizen Action. “Camden-based corporations alone received $1.6 billion in tax credits. No one addressed if the purported benefits these heavily subsidized corporations delivered were worth that much to New Jersey taxpayers and low-income Camden residents. The money spent on these tax credits could have been invested in proven economic drivers that benefit all businesses and Camden residents, such as workforce education, transportation and infrastructure.

“The testimony given today also ignores the fact that these tax subsidies cost taxpayers hundreds of thousands of dollars per job created, well above the national average of $33,000. We urge the Legislature to act now and support the comprehensive reforms proposed in the Governor’s conditional veto and by advocates and policy experts. These critical reforms include

·       Hard caps on annual and per-job awards

·       Shorter award timeframes

·       Local hiring agreements

·       Goals driven by national best practices

·       Strict reporting and evaluation criteria

“Without meaningful reforms our state corporate tax subsidy programs will continue to damage New Jersey’s fiscal health while benefiting a few politically connected corporations.”