More corporate tax incentives coming?

From: POLITICO New Jersey Playbook - Wednesday Jan 11,2023 11:55 am

Jan 11, 2023

Presented by

Supporters of New Jersey’s corporate tax incentives over the years haven’t just argued they were necessary to keep jobs in New Jersey. They were also important to revitalizing downtowns, especially in New Jersey’s struggling cities. “Camden Rising,” anyone?

That’s at least one of the reasons the credits had a requirement that workers actually show up to the office for the companies to secure the credits. Those workers, the thinking went, would boost all the other businesses in the area that don’t get tax credits from the state.

So now, with the pandemic largely behind us, white collarwork culture has shifted. Naturally, companies are pushing to loosen those in-person requirements, and as The Record’s Daniel Munoz reported, Gov. Murphy recently signed a law that gives companies a one-year reprieve from stricter in-person requirements that were temporarily halted during the pandemic for New Jersey's existing tax incentive programs. Yesterday, Murphy hinted in his State of the State speech that there’s more to come.

“We must recognize that in the new, post-pandemic business environment, not every new job created for a New Jerseyan is going to be housed in a physical office in New Jersey,” Murphy said. “For many New Jerseyans, working remotely is here to stay. So, let’s take this moment to focus on incenting jobs in New Jersey, wherever they are, regardless of whether they are in an office building in Newark or at a kitchen table in Cherry Hill.”

I had to ask: Is Murphy planning to make it easier for corporations to secure massive tax breaks while quietly discarding one of the justifications for their existence?

Economic Development Authority CEO Tim Sullivan told methat’s not the case. This does not mean Murphy intends to do away with any in-person requirement, he said. Instead, it’s about a potentially new program to attract companies that look for smaller spaces and intend to have at least a significant portion of the workforce remote. That, he said, could be accompanied by measures to aid cities that have been hit harder by the shift in work habits.

So look out for more tax credit legislation.

PROGRAMMING NOTE: I’m going on vacation tonight, so Daniel Han will be your Playbook author. I’ll be back on Jan. 23. Email Daniel at dhan@politico.com. Also, Playbook will be off Monday for Martin Luther King Day.

DAYS SINCE MURPHY REFUSED TO SAY WHETHER HIS WIFE’S NON-PROFIT SHOULD DISCLOSE DONORS: 340

TIPS? FEEDBACK? HATE MAIL? Email me at mfriedman@politico.com

WHERE’S MURPHY? — In Mount Holly for a noon Chamber of Commerce of Southern New Jersey luncheon. Media: Ask Governor Murphy onlocal NPR affiliates at 7 p.m.

HAPPY BIRTHDAY — New Jersey Policy Perspective's Brittany L. Holom-Trundy, former state Sen. Sonny McCullough, NJ LECET’s Francisco Maldonado-Ramirez.

QUOTE OF THE DAY: “You know, one of these years I may actually get an office in this building.” — Gov. Murphy at the beginning of his State of the State speech

A message from the New Jersey Public Charter Schools Association:

Support the more than 20,000 students on public charter school wait lists!

WHAT TRENTON MADE

THE NEXT NEW JERSEY WILL BE BUILT IN CALIFORNIA AND CALLED ‘THE CALIFORNIA OF THE EAST OF THE WEST’ — Murphy, in State of the State, looks to 'build the next New Jersey' but pokes at DeSantis, by POLITICO’s Ry Rivard and Carly Sitrin: New Jersey Gov. Phil Murphy, a term-limited Democrat with an eye on national politics, used his annual State of the State address Tuesday to sell his version of New Jersey after five years in office and draw contrast between the recent political chaos on the House floor in Washington and what happens in the Statehouse.

People “don’t want to see Washington-style dysfunction and chaos — and neither do we,” Murphy said near the start of his hourlong address to a joint session of the state Legislature. Some national sweep was expected, Murphy is head of the National Governors Association and the Democratic Governors Association — perches others have used to run for a higher office.

Murphy used the speech to elbow Florida and its Republican governor, Ron DeSantis, saying New Jersey’s economic growth was outpacing Florida and “many of the so-called ‘business friendly’ states.” “Some governors boast that their state is ‘where woke goes to die.’ I’m not even sure I know what that means,” Murphy said, referencing a phrase DeSantis often uses when describing his state.

GOP RESPONSE — “The state of New Jersey is not good but it doesn’t have to stay that way,” by Steve Oroho for The Star-Ledger: “We have the highest taxes, the most debt and the worst business climate in the nation. Every year when national rankings come out, New Jersey is dead last. We have a state budget process that’s out of control, with spending up nearly 50% since Governor Murphy took office. Democrats continue to show no shame in tacking on billions in pork every year with no legitimate review or oversight. While they’re busy wasting billions on pet projects, they’ve failed to effectively manage the cost of benefits for hundreds of thousands of public workers. This year, that’s resulted in huge increases in health care premiums for local governments that will lead to spikes in property taxes across New Jersey.”

—For Pros: Highlights from Murphy’s State of the State address

—“N.J. extending deadline to apply for ANCHOR property tax relief program, Murphy announces”

—"NJ governor rebuffs Republican critique over being 'woke'"

MURPHY TO CREATE THE STATE OFFICE OF TOXIC AVENGER — “Explosive, flammable, carcinogenic: NJ neighborhoods put at risk by the hazards next door,” by The Record’s James M. O'Neill and Scott Fallon: “Buildings that store hazardous materials, or hazmats, are remarkably commonplace in North Jersey, and many exist just a few hundred feet from residential neighborhoods, schools, hotels, parks, nursing homes, public housing complexes and entertainment venues. And more often than not, the neighbors of these nondescript buildings have no idea what’s stored inside.

"A yearlong NorthJersey.com investigation into the potential risk for a hazmat emergency in the region found that: There are 159 sites in 21 of the more industrial communities in southern Bergen and Passaic counties that store potentially hazardous materials, according to state data — and that doesn’t include the ubiquitous gas stations or dry cleaners that dot the downtowns and local thoroughfares. More than 600 different materials were reportedly stored at the facilities, from acetic acid to zinc phosphate. Some can burn the eyes, throat and lungs. Some can cause cancer. Some are flammable and explosive. A number of public housing complexes, some with thousands of residents, sit adjacent to facilities that store hazmats in North Jersey.”

STEP INSIDE THE WEST WING: What's really happening in West Wing offices? Find out who's up, who's down, and who really has the president’s ear in our West Wing Playbook newsletter, the insider's guide to the Biden White House and Cabinet. For buzzy nuggets and details that you won't find anywhere else, subscribe today.

EDUCATION — State Board of Education needs to resume in-person meetings, advocates, lawmakers say, by POLITICO’s Carly Sitrin: Education advocates, Republican lawmakers and New Jersey’s most powerful teachers union are urging the State Board of Education to resume in-person meetings, arguing the virtual-only option that has been in place for nearly three years prevents the public from fully witnessing and participating in the policymaking process.

“It’s time, past time actually, for the State Board of Education to resume in-person meetings,” New Jersey Education Association spokesperson Steve Baker said in a text. “Work that affects the public should be done in public and very few institutions affect more New Jersey residents than our public schools.” … Since the start of the pandemic in early 2020, the board has been meeting via Microsoft Teams — a virtual meeting platform that at times has appeared to be clumsy or unfamiliar to members.

RISKY BUS-INESS — “'Critically important' NJ school bus safety office vacant as another vendor faces charges,’ by The Record’s Colleen Wilson: “A year after Gov. Phil Murphy signed a law creating a new Office of School Bus Safety, the state Department of Education has yet to hire anyone, also leaving other parts of the law remain unfulfilled. The Legislature sent $200,000 to the DOE to get the office started. Laura Frederick, a spokeswoman with the DOE, said the agency is "currently working to bring staff on board." Frederick said the state Board of Education approved the creation of the new office in the fall and has assigned internal staff to support the new department. The DOE is ‘working diligently to enact the entirety of the legislation,’ she added … Murphy's office deferred comment to the DOE when asked whether the governor is concerned about the delayed implementation of the law, if he plans to do anything about this and if he is concerned about children taking buses being run by companies facing criminal charges.”

FIRST LESSON: DON’T LISTEN TO 101.5FM — “Coming soon to all N.J. students: Lessons in debunking,” by NJ Advance Media’s Tina Kelley: “Michael Warren’s students at Hasbrouck Heights High School were contemplating which conspiracy theory to explore and refute: the CIA orchestrated JFK’s assassination, 9/11 was an inside job, the earth is flat, and the moon landing was staged, among others. On Thursday, 14 students were learning skills that will soon be required for all New Jersey students: critical thinking, effective research, and how to evaluate information. Just the day before, Gov. Phil Murphy had signed a law making New Jersey the first state in the U.S. to require K-12 lessons in how to tell reliable information from fiction and navigate a world — and an internet — rife with alternative facts and research rabbit holes.”

—“Gopal Officially Launches State Senate Re-Election Campaign”

BIDEN TIME

—“Rep. Rob Menendez Jr.: ‘I never saw myself’ running for office”

—“Feds should cover women with 9/11-linked cancer, [Pallone] says”

—“N.J.’s 2 rookie congressmen made their 1st vote on GOP bill to defund the IRS. They didn’t agree”

A message from the New Jersey Public Charter Schools Association:

LOCAL

CAPE MAY COUNTY — “Marie Blistan to lead Cape May Dems,” by The Press of Atlantic City’s Bill Barlow: “Cape May County Democrats picked Marie Blistan as the new county chairwoman in a special session Monday night. She is described as the first woman to lead the county Democratic organization in memory. She replaces Daniel Kurkowski, who spent a little less than a year as the county Democratic leader before being named as a Superior Court judge late last year … Blistan is the former president of the New Jersey Education Association. She retired in 2021, to her home in Wildwood Crest.”

TRENTON MAKES WE’LL TAKE THEIR WORD FOR IT — “Attorney General’s Office opposes hand recount in Trenton race decided by one vote,” by New Jersey Globe’s David Wildstein: “The New Jersey Attorney General’s office says election officials are simply too busy to conduct a hand recount of a Trenton city council race that was decided by just one vote. Algernon Ward, Jr. is seeking a recount after Jennifer Williams, now the city councilwoman from Trenton’s North Ward, defeated him, 427 to 426. ‘Requiring a hand-to-eye recount would prove unduly burdensome and difficult for both the (Mercer County) Board (of Elections) and the Superintendent given the tight timeline between the potential recount date and the preparations for the January 24, 2023 (at-large) runoff election,’ said Deputy Attorney General Levi Klinger-Christiansen in documents filed on Monday.”

—Trentonian: “Trenton City Council at-large run-off profiles”

JOIN NEXT TUESDAY TO HEAR FROM MAYORS AROUND AMERICA: 2022 brought in a new class of mayors leading “majority minority” cities, reshaping who is at the nation’s power tables and what their priorities are. Join POLITICO to hear from local leaders on how they’re responding to being tested by unequal Covid-19 outcomes, upticks in hate crimes, homelessness, lack of affordable housing, inflation and a potential recession. REGISTER HERE.

ABE WAS TOO HONEST FOR NJ — “After 80 years hiding 'in plain sight,' Madison's Lincoln portrait heads to Smithsonian,” by The Daily Record’s William Westhoven: “ Five years ago, borough officials were shocked to learn a marble bust of Napoleon, sitting on a wooden pedestal in their council hall, was a long-lost work of legendary French sculptor Auguste Rodin worth millions of dollars. Surprising as that was, it turns out the borough was home to another treasure, also hiding out in the open − a portrait that has hung for decades just feet from the Rodin. Displayed on a nearby wall in the Kings Road building is an imposing, life-size portrait of Abraham Lincoln recently revealed to be one of the most historically significant paintings of the Great Emancipator ever produced. It's one of the few he sat for … The 9-foot tall image of the 16th president will soon have a new home in the Smithsonian Institution's National Portrait Gallery. On Monday, Madison's council announced the foundation had agreed to loan the work of art for five years to the Washington, D.C. gallery. President Joe Biden is scheduled to celebrate its significance, and its return to Washington, during a ceremony at the museum in November.”

FOR JESUS, A MIRACLE — “Paterson worker gets promotion, pay raise after accusing mayor of retaliation. Here's how,” by The Paterson Press’ Joe Malinconico: “A city inspector who accused Mayor Andre Sayegh's administration of denying him a pay increase as a form of political retaliation has gotten the salary he was seeking in a federal lawsuit. Jesus Castro, who supported Sayegh opponent Alex Mendez in the 2018 mayoral election, received both the $70,000 salary and the job title he wanted under the lawsuit’s settlement. The city also agreed to give Castro $45,190 for the time he was performing the duties of the higher position but was not getting paid for it. The settlement said $15,816 of that money will pay for Castro’s legal fees.”

—“Hillsborough waiting for results of probe into school district's finances”

—“Man who tried to torch [Trenton] police car during George Floyd protests gets prison time”

—“[West New York] HS basketball coach charged with walking in on girls in locker room, sending inappropriate texts”

EVERYTHING ELSE

—“Why are so many dead whales washing up on NJ shores?”

—“N.J. chemical plant loses appeal against DEP after company was ordered to pay $3.5M for cleanup”

A message from the New Jersey Public Charter Schools Association:

Join thousands of families calling on the NJ DOE to support public charter schools and their ability to help more students reach their full potential.

Follow us on Twitter