newjerseynewsroom.com

BY TOM HESTER SR.

NEWJERSEYNEWSROOM.COM

Democratic legislative leaders on Wednesday announced the Legislature's focus in December and January would be on what they describe as a "landmark Back to Work New Jersey" package of 30 bills designed to create jobs and jumpstart economic development in the state.

Senate President Stephen M. Sweeney (D-Gloucester) and Assembly Speaker Sheila Y. Oliver (D-Essex) said the Democratic-controlled Legislature will also act on the proposals by Republican Gov. Chris Christie – his "tool kit" – and Democrats that would attempt to cut government costs and lower property taxes.

Sweeney and Oliver said at the Statehouse that little attention has been paid to the issue of jobs and the economy, even as New Jersey's unemployment rate stands at 9.2 percent. Christie has made attempting to bolster the state's economy one of his main issues.

Another key proposal is bill (A-3398/S-2345) that would give New Jersey senior citizens whose total earnings fall under $100,000 a state income tax exemption on any income from a pension or deferred compensation plan. Such a change would put New Jersey on par with Pennsylvania, which is one of only two other states (Illinois and Mississippi) to have a similar retirement income tax-exemption.

The tax break for seniors would reach Christie's desk as he confronts a potential $10 billion deficit as he begins to shape his 2011-12 state budget. If the governor vetoed the measure, the Democrats would have a political issue to use against the Republicans in a legislative election year.

Michael Drewniak, Christie's press secretary, said of the Democrats' announcement, "Addressing job creation and passing the tool kit are not mutually exclusive, and a little multi-tasking by the Legislature at this late stage would go a long way toward helping New Jersey taxpayers and our state's economy.

"Property tax relief is critical to improving the state's business climate and job creation efforts," Drewniak said. "Both must get done, and the legislature needs to fulfill the commitment it made in June and July to get the tool kit done."

Assembly Republican Leader Alex DeCroce (R-Morris) said Christie’s “tool kit” proposals should be the Legislature’s priority in the coming weeks.

“New Jersey residents and businesses have been suffering from the effects of the Great Recession since December, 2007,” DeCroce said. “It is astounding that it has taken three years for the Democrats to realize that jobs and the economy are important. In order to return New Jersey as an affordable place to live and work, we must give the highest priority to enacting the property tax reform legislation….

“In August, Assembly Democrats made a similar announcement regarding a business expansion and jobs plan,” DeCroce added. “Today’s proposal is more rhetoric that we’ve heard over and over. The repackaged job creation initiative outlined today is another attempt to divert attention away from the fact that the Democrat majority has done virtually nothing on advancing key property tax reform legislation.”

"Putting New Jersey back to work is essential if we are to be successful in tackling the state's other problems," Sweeney said. "People won't be able to pay their property taxes if they don't have a job. Small businesses won't be able to succeed if people don't have money to spend in their stores. All of the broader challenges facing New Jersey circle back to the need to create jobs."

"One thing we can all agree on is the need to create new jobs, reinvigorate our economy and put New Jerseyans back to work," Oliver said. "All the property tax reforms in the world won't mean a thing if people cannot afford to keep their home. That's why we've put together a creative jobs program that will help lift New Jersey out of this recession and make it more affordable for working class residents struggling to make ends meet."

Sweeney and Oliver said that for two months they have convened roundtable meetings of business leaders to hear ideas for jumpstarting the state's economy, improving its business image and creating jobs. Their plan involves putting ideas garnered from that group into action.

Other highlights of the package include:

• Corporate business tax legislation (A-1676/S-1646) designed to attempt to modernize the formula used to determine the portion of business income subject to tax by the state from a three-factor formula to a single sales factor formula. The change is a priority for New Jersey businesses.
• Small business tax legislation (S-1540/A-3535) that will attempt to modernize the small business tax code to provide a meaningful tax break to entrepreneurs.
• Bipartisan legislation (A-3389/S-2370) that will attempt to expand the state's Business Relocation and Retention Assistance Grant program to allow more companies to benefit and keep jobs in-state.
• Legislation (A-3353) that would create the state Closing Fund that would attempt to stimulate economic activity by encouraging and promoting the retention and expansion of existing business and industry and creating and attracting new business and industry to the state.
• And legislation (S-2454) that would provide targeted tax credits for investments in new, emerging biotech businesses. An Assembly version will soon be introduced.

"These initiatives are a great step toward retooling New Jersey as an economic force primed to lead the pack in the economic recovery," Oliver said. "We're going to create jobs for residents, ease outdated burdens on businesses and spark economic growth throughout the state by encouraging investment. It's a plan that benefits everyone."

"With everything going on in New Jersey, it all points back to the old mantra, ‘It's the economy'," Sweeney said. "Unless we can get New Jerseyans back to work and attract the new businesses that will be the backbone of our economy for years to come, we won't ever be able to surmount the challenges we face today."

Sweeney and Oliver the business roundtable discussions will continue so that participants can offer more ideas and track progress of pending bills.