Posted on

New Jersey Economic Development Authority has generated no known economic benefits for main street New Jersey and state taxpayers

clock

the staff of the Ridgewood blog

Cherry Hill NJ, New Jersey Main Street Alliance released the following statement today in response to a state Comptroller audit finding that $11 billion in tax breaks given to mostly large corporations between 2005 and 2017 by the New Jersey Economic Development Authority have generated no known economic benefits for main street New Jersey and state taxpayers. The EDA’s corporate tax incentive program was meant to spur economic growth, attract new business and create thousands of new jobs. But the audit found the EDA has been grossly mismanaged, resulting in improperly awarded incentives, inflated and misleading job counts, and corporate tax incentive recipients taking advantage of the agency’s lack of oversight, accountability and internal controls.

“While small business owners like me struggled for years to obtain loans and secure capital, an incompetently managed state EDA gave away billions of dollars in tax breaks to enrich CEOs and corporate shareholders,” said NJMSA Steering Committee Member Kelly Conklin, owner of Foley Waite LLC in Kenilworth. “Instead of giving tax breaks to large corporations, the EDA could have invested in main street and small businesses, who would have re-invested their profits in their communities. Small business owners create more jobs and create more GDP for the economy than a company that wants tax payers to subsidize them. We call on a full investigation of the state EDA and echo Governor Murphy’s call to overhaul the agency. Our businesses and communities deserve nothing less.”

https://www.insidernj.com/press-release/nj-comptrollers-nj-economic-development-authority-audit-pdf/

Posted on

Cardinale Bill to Establish a Permanent NJ Office of International Trade

August 8,2018

the staff of the Ridgewood blog

Port Newark NJ, In light of Governor Phil Murphy’s designation of the Office of International Trade and Investment, Senator Gerry Cardinale announced his plans to reintroduce legislation he has long-sponsored that would codify this program, by establishing a permanent global trade division within the New Jersey Economic Development Authority (NJ EDA.)

Senator Cardinale noted his bill would improve upon the steps Governor Murphy took last week to create a new Office of International Trade and Investment. Sen. Cardinale’s legislation is essential to ensuring that this new office continues to operate during future gubernatorial administrations as well.

“Small Businesses owners who are looking to expand abroad often do not have the legal resources to navigate foreign trade laws,” Cardinale (R-39) said. “By fostering partnerships between local mom-and-pop stores and international advocates, we can promote ‘Jersey Made’ products around the world. The future of our state’s economy depends on a permanent Office of International Trade, right here in Garden State.”
Currently, there are 1,100 multi-national businesses and 270 foreign headquarters in New Jersey.

Senator Cardinale’s bill would establish an Office of International Trade and Protocol within the NJ EDA. The division would encourage and assist New Jersey businesses entering into the international market.

The bill will officially be introduced in the Senate at the next Senate Quorum. Cardinale’s district mate, Assemblywoman Holly T. Schepisi, has already introduced an identical version of the legislation in the Assembly.

“It is essential that New Jersey businesses are provided with the right tools to remain competitive in today’s global market,” Cardinale said. “The establishment of an international trade office will spur commercial growth and generate career opportunities for our residents. I am glad to see that Governor Murphy is taking positive steps towards diversifying our economy. I hope that my colleagues in the Legislature will take immediate action to advance my bill, so that future generations of local business owners can benefit from this program as well.”