M E M O R A N D U M

TO:                      Members of the New Jersey Senate

FROM:                Hilary Chebra, Manager, Government Affairs, CCSNJ

RE:                       FY2023 State Budget

DATE:                  June 29, 2022

The Chamber of Commerce Southern New Jersey (CCSNJ) is the region’s largest and most influential business organization representing businesses in the seven most southern counties of New Jersey, as well as greater Philadelphia and northern Delaware.  The CCSNJ has more than 1,100 member companies, approximately 85 percent of which are small businesses that employ less than 50 people, as well as approximately 130 nonprofit members.  Thank you for the opportunity to comment on the FY2023 state budget.

The CCSNJ remains concerned about the growth in total spend as presented in the $50.6 billion proposal, the largest budget in state history. While the state has seen a recent revenue surge due to higher than usual tax collections and an influx of assistance from the federal government, these circumstances are unique to this year. This budget does not offer new reliable long-term revenue sources that the state can depend on in the future. To maintain this level of long-term growth in spend, the state will inevitably have to raise taxes on the already overburdened residents and businesses of New Jersey.

However, the CCSNJ was pleased to see some steps taken in this budget to address long term fiscal issues, including the $6.82 billion pension payment, making this the second year that the annual obligation would be paid in full. The full pension payment, along with the additional $5.2 billion deposit in the Debt Defeasance and Prevention Fund are fiscally responsible actions that address the state’s enormous debt burden. The CCSNJ applauds these actions and the state should continue to practice these fiscally responsible actions, which can only continue to improve New Jersey’s overall fiscal position.

The CCSNJ was disappointed that more was not allocated to businesses, including in the Main Street Recovery Fund, since the Governor’s proposed budget was introduced in March. The CCSNJ was grateful that over the past two years we have seen previous New Jersey Economic Development Authority (NJEDA) programs to assist businesses, however, further resources towards several programs, including the Main Street Recovery Fund, would go a long way in assisting the small business community’s continued recovery.

The CCSNJ was happy to see the budget does not present new taxes, however the budget still fell short of providing tax relief for businesses. While Affordable New Jersey Communities for Homeowners and Renters (ANCHOR) Property Tax Relief Program, will provide direct property tax relief to homeowners and renters, the program excludes businesses, a large portion of the state’s property tax payers.

The CCSNJ supports the $7.5 million allocation for the Walter Rand Transportation Center, which is a key transportation hub in South Jersey, as well as the $5 million allocation to the Wind Institute for Innovation and Training. South Jersey stands to be a national leader in the offshore wind industry with the nation’s first purpose-built offshore wind marshaling port, the New Jersey Wind Port situated in Paulsboro. The Wind Institute for Innovation and Training will ensure that there is a skilled, local workforce available to fill the hundreds of available jobs and assure this budding industry is a success. 

The CCSNJ thanks you for the opportunity to present our position on the Fiscal Year 2023 state budget.