Chambers launch coalition to oppose Murphy's budget plan

A coalition of nearly 40 local and regional chambers of commerce statewide launched an effort Wednesday in opposition to Gov. Phil Murphy’s proposed Fiscal Year 2025 state budget .

The Chamber Alliance was convened by the New Jersey Chamber of Commerce . A May 1 letter to legislators laid out specific concerns about the spending proposal, while also offering some recommendations.

The group opposes:

• The proposed corporate transit fee on the state’s most profitable companies. The topic has loomed over the budget process, and covered extensively by NJBIZ.



• The proposed "buck-a-truck" tax on trucks that deliver goods to and from warehouses around the state, which would impact the fast-growing Garden State logistics industry.



• Funding cuts to state agencies that support economic growth, such as the New Jersey Economic Development Authority (NJEDA), New Jersey Business Action Center (NJBAC) and New Jersey Small Business Development Centers (NJSBDC).

 

“This coalition of 40 chambers represents a substantial percentage of the state employers who believe these moves would damage New Jersey’s business climate, undermine the state’s corporate recruiting and retention efforts, and jeopardize good-paying jobs,” the group said in its launch announcement.

In its letter to the Legislature, the Chamber Alliance described the proposed budget as harmful to the business community. The group added it would result in a negative ripple effect on our state’s economy.

“The biggest threat to our state right now is the future of our economy. Right now, revenues are trending down, while expenses are going up,” NJ Chamber President and CEO Tom Bracken and Executive Vice President Government Relations Michael Egenton wrote on behalf of the cosigned organizations. “Yes, we have had several bond increases; yes, we have jumped to No. 19 in the CNBC ‘Best States for Doing Business’ poll . But none of that has been produced by a strong, growing, vibrant business climate. It was accomplished with federal COVID dollars and bond proceeds.”

Solutions

The letter stresses the need to create recurring, reliable, organic, growth-oriented sources of income to maintain the state’s economic prosperity.

“The only way to do that is through a growing, vibrant, and attractive business economy,” the letter continued. “This budget is in opposition to all of that. It begins to reverse the economic momentum we have. It also hurts our reputation as a business-friendly state. It also creates a lack of confidence for our business leaders that the state will not follow through on commitments they have made. And, it makes our state more expensive and less competitive.”

Some of the recommendations include:

• Reinvest the $6 billion surplus



• Remove the CTF and find the $1 billion elsewhere in the $56 billion budget with a "surgical approach"



• Eliminate the "buck-a-truck" tax, since it is a drop in the budget bucket ($10 million) and would undermine economic growth



• Restore money to the NJEDA, NJBAC and NJSBDC

 

Additionally, the group emphasized that the budget needs to address the state's economic future, something it believes is lacking.

“This is an opportunity that we cannot waste. This business community has been asking for these things for years and we need to begin to look at ways to fund those,” the letter said. “We must pivot to begin to create a stronger economy. You cannot grow anything unless you feed it. We are not only NOT feeding the business community we are starving it. With that in mind, we urge you to oppose these proposed measures in the budget and support measures that will strengthen the business community ultimately strengthening New Jersey.”

In an upcoming NJBIZ issue, we take a closer look at the CTF situation and the fight underway, which will only ramp up in the coming weeks as budget season gets in full swing. Stay tuned for more as the the process plays out in the Legislature to pass a budget by midnight June 30.

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