ECONOMIC GROWTH A KEY COMPONENT OF GOP FISCAL PLAN

Recognizing that a strong state economy is vital to New Jersey’s fiscal stability, Republican legislators on Thursday unveiled a common sense fiscal reform plan designed to stimulate economic growth and make life in the Garden State more affordable for struggling families while holding government more accountable.

“Among other things, our fiscal road map includes an economic development plan to jump-start a struggling state economy that has lost nearly 10,000 private sector jobs in the first four months of this year alone,” said Assembly Republican Leader Alex DeCroce, R-Morris and Passaic.

“Due to the poor economic climate in our state, many businesses and families are struggling,” he continued. “With that in mind, we developed a comprehensive plan that not only addresses the excess spending by government, but also speaks to the frustration that many businesses and families encounter. By incentivizing and encouraging investment from the private sector, people will not only want to work in our state, but continue to live here as well.”

In an effort to generate more economic development in New Jersey, Republican lawmakers are proposing the following:

* Placing all economic development functions of the state, currently scattered among numerous departments, under the control of the Economic Development Authority. This will provide one, streamlined agency in charge of boosting job growth in New Jersey.
* Allowing all businesses in the state to participate in a program that sets aside a guaranteed percentage of government contract work just for New Jersey businesses.
* Extending the urban transit hub tax credit program to all towns in the state. This program provides incentives for large companies to locate in towns with mass transit stations.
* Enacting regulatory reforms that will reduce the amount of time it takes to get approval for economic development projects.

“The only long-term solution to our budget problems is to grow the economy,” stated Senate Republican Leader Tom Kean, R-Union, Morris, Somerset and Essex. “We need to act now to let businesses know that we will work with them as partners in making New Jersey more prosperous and progressive.”

The plan also identifies $1.32 billion in unnecessary spending in the Corzine Administration’s Fiscal Year 2009 budget proposal, provides sustainable property tax relief, restores aid to municipalities and provides funding for state transportation needs without tax or toll increases and includes a series of long-term structural reforms to the state budget and reforms to the state pension and benefits system.

It was announced Thursday by DeCroce, Kean and budget committee members state Senator Steven Oroho, R-Sussex, Hunterdon and Morris, and Assemblyman Joseph Malone, R-Burlington, Mercer, Monmouth and Ocean.

The Republican plan calls for re-allocating $1.32 billion from the governor’s Fiscal Year 2009 spending proposal. Republicans would restore $525 million in property tax relief that Governor Corzine has put on the chopping block. This includes keeping the state’s commitment to property taxpayers by restoring the $375 million of Corzine’s proposed cuts to property tax rebates – rebates that last year Democrats in the Legislature promised taxpayers would be permanent – and also restoring $150 million in municipal aid cuts that will be used by municipalities to offset projected property tax increases. This also includes funding for rural state police patrols.

Republicans will constitutionally redirect $500 million of annual and recurring revenue as a permanent source of funding to bolster the State’s transportation program. Democrats are fighting amongst themselves about whether to raise the gas tax or tolls or some other tax to pay for transportation when it is obvious to taxpayers that a $33 billion budget has ample resources within to finance state transportation needs without asking them to pay more.

About $100 million would be set aside because it’s prudent to build a surplus in a time of uncertainty. The remaining $195 million freed up by trimming overspending on various programs will allow the Legislature, working on a bipartisan basis, to explore other priorities.

These include the possibility of restoring funding for hospitals and nursing homes, financing more of higher education costs and maintaining the NJStars tuition assistance program. It could also include the elimination of the newly proposed Medicaid co-pay, and putting an end to the redirection of dedicated funds for State Police classes and the arts.

“During the past year, numerous studies have concluded that New Jersey -- as a result of its tax and regulatory climate -- is among the least desirable states in the nation for businesses to locate or expand,” said DeCroce. “The result has been that we have lagged far behind neighboring states in private sector job growth.

“Republicans understand that New Jersey residents need access to good-paying jobs so they can provide for their families and meet their expenses,” he added. “Our plan does not rely on gimmicks, band-aid fixes or political rhetoric. We have heard the cries of families and businesses who are suffering from the state’s crushing tax and debt burden and are confident that, if implemented, the plan we have put forward will put us back on the path to fiscal solvency.”

For more details on the plan, including the list of proposed budget cuts, please go to www.njassemblyrepublicans.com or www.senatenj.com.