<\/span>Audrey Lane<\/span> This tax hike was not a surprise. Gov. Phil Murphy and the Legislature’s Democratic majority leadership telegraphed their approach for months, continuing to believe that every problem facing the state can be solved by spending more money.This is a failing proposition.Despite receiving $8.5 billion of pandemic related federal aid, New Jersey policy makers squandered the unprecedented opportunity to make long-term investments or real agency changes that could have spurred economic growth and changed the trajectory of our state. They failed to make necessary infrastructure improvements; did not take steps to improve pension solvency for the next generation of retirees; and slashed funding to 140 public school districts \u2014 forcing teacher layoffs, school closures and the canceling of school sports, clubs and activities.\u00a0\u00a0As for the state\u2019s largest corporations, they planned for the sunset of the 2.5% Corporate Business Tax surcharge as promised in 2023 by the governor, and yet, six months into 2024, they are left with a retroactive tax increase.The fact is these corporations won\u2019t suffer in the long-term; rather, they will adapt and pivot.\u00a0Some will shift more jobs to other states, while others may leave altogether, continuing a trend that has seen the number of Fortune 500 companies headquartered in New Jersey fall from 22 in 2016 to just 14 today.The companies that stay will increase the price of their goods and services, resulting in working families and seniors paying more for groceries, gas, healthcare and home repairs. This isn’t a tax increase on business, it’s a tax increase on all of us.Opinion: <\/strong>Plans for New Jersey’s energy future badly need a reality check. We need realistic plans<\/span><\/p>\n How do we change course?\u00a0That is something that we at the Garden State Initiative continue to prioritize.As a non-partisan organization, we do not take sides in elections or advocate for the victory or defeat of candidates.\u00a0Rather, we advocate for better policies and more transparency in state government \u2014 particularly as it relates to the state budget.Currently, the state budget is largely negotiated behind closed doors by a handful of people, while most members of the state legislature are kept in the dark.\u00a0During my time at the Statehouse last month, I watched in real-time how legislators in both parties were expected to vote on a 373-page document that they received with 15 minutes notice.This process is troubling. Scheduled committee meetings were more than two hours late and seemingly dismissed as \u201cnormal.\u201d\u00a0The budget moved out of committees without being available to the public. There was an indifferent tone by some legislators when questions were asked about the process.\u00a0Colleagues and members of the public were treated as an impediment rather than a welcome part of the process.\u00a0\u00a0My experience in Trenton reinforced my belief that reforms like the ones we endorse at GSI are needed now more than ever.\u00a0Our recent Fiscal Cliff Report addresses\u00a0New Jersey\u2019s addiction to higher taxes and more spending.\u00a0 It also suggests reforms to the budget process itself, like \u201cstress-testing\u201d the budget through multiyear budget assessments; requiring annual spending to be completely and truly covered by annual recurring revenues; mandating the final state budget bill be made public seven days before a vote for final passage to allow for more scrutiny; and the addition of a detailed annual capital report that clearly outlines the state\u2019s capital assets and planned investments.No singular policy recommendation is a panacea.\u00a0However, after my recent Statehouse experience, it is clear that maintaining the status quo is not an option.Audrey Lane is the president of Garden State Initiative after previously serving as its policy director.\u00a0Lane served as a government policy and strategic messaging professional on both the municipal and state level, and served as an elected councilwoman in her home borough of Mountain Lakes.\u00a0She is a graduate of Johns Hopkins University and was selected as a Member of the American Enterprise Institute Leadership Network in 2021.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"
\n\u00a0|\u00a0 Special to the USA TODAY Network<\/span><\/span>I spent the days leading up to passage of this year\u2019s New Jersey state budget at the Statehouse in Trenton.\u00a0 It was an eye-opening and, at times, frustrating experience.\u00a0Our state\u2019s economic and fiscal policies are resulting in deficit spending, and the process surrounding those policies is troubling.This year\u2019s New Jersey state budget landed at $56.6 billion dollars, which is almost $22 billion dollars higher than the final budget signed by Gov. Chris Christie in 2017 \u2014 representing a 63% increase in state government spending in just 7 years.Worse, this budget spends $2.1 billion more than it takes in, creating a structural deficit of more than $3.5 billion next year \u2014 relying on the state\u2019s declining surplus to fill the gap. To add insult to injury, the budget also reinstates the corporate business tax that will once again give New Jersey the highest corporate business tax rate in America at 11.5%.\u00a0 New Jersey\u2019s reclaimed outlier status is a stark contrast to our neighbors in Pennsylvania who utilized their state surplus funds as an opportunity to implement a tax reduction strategy and decrease their state business tax rate down to 4.99% by 2031.<\/p>\nNew Jersey can’t spend its many problems away<\/h2>\n
How can New Jersey budget better?<\/h2>\n