Without change, DeCroce says NJ's economic future is bleak

Citing unfavorable job data and harmful state legislation, Assembly Republican Leader Alex DeCroce expressed deep concern for the future of New Jersey’s economy at a convocation of business leaders last night.

In an address to members of the Commerce and Industry Association of New Jersey, DeCroce referred to the recent report from Rutgers University detailing that job growth in 2007 in New York and Pennsylvania far out-paced that of New Jersey. New York’s rate of growth was 23 times higher than the Garden State, while Pennsylvania’s was eight times higher.  DeCroce also noted that during the first four months of 2008 New Jersey lost nearly 10,000 jobs.

"While the total job loss in the state so far this year is distressing, the recent news that 1,000 private sector jobs were added in April is somewhat encouraging," said DeCroce, R-Morris and Passaic. "But we have a long way to go before anyone considers our economy on the upswing."

The state Department of Labor and Workforce Development reported Wednesday that the state’s economy gained 1,000 jobs, but that was offset by news that New Jersey’s unemployment rate jumped from 4.8 to 5 percent. In addition, the manufacturing sector lost 1,200 jobs.

DeCroce also referred to a survey of businesses in South Jersey in which 23 percent of the respondents indicated they expect a decline in their business activity in 2008, with only 19 percent who think activity will improve. He also remarked that employers stated that general economic conditions are their greatest concern, followed by fringe benefit costs and government regulation. 

"Given the results of the Rutgers report, coupled with the fact that Trenton has continued to enact harmful legislation such as Paid Family Leave, increasing the sales tax and the corporate business tax, it is not too surprising the state is experiencing an out-migration in population and a reluctance of business to expand or even locate in New Jersey," stated DeCroce.

DeCroce was cautiously optimistic regarding another study released by Rutgers for the Department of Transportation that said over the next decade the state’s capital plans for highway, rail and bridge projects could generate more than $1.5 billion dollars in state and local tax revenues, and nearly 27,000 jobs. 

He did point out that these projections assume that state and federal funding for the projects remains level, but that is not a certainty, given the depletion of the Transportation Trust Fund by 2011, and the potential expiration of the federal surface transportation program next year.

The Assembly Republican Leader also spoke about the role of his party during the budget process.

"While Republicans are not in the majority in Trenton, it is our obligation not only to act as watchdogs during the process, but to offer meaningful and constructive suggestions," he said.

"The public has told us loud and clear it wants spending reduced before giving consideration to raising taxes. My members serving on important committees in the Assembly will be vocal in offering suggestions on ways to improve government."

DeCroce also praised the recent recommendations offered by the South Jersey Chamber of Commerce for improving state operations based on the concept of 'best practices' employed by the private sector.

"The goal for legislators in Trenton should be to foster economic growth in New Jersey, not impede it," cautioned DeCroce.

He said Assembly and Senate Republicans will be offering a comprehensive plan to promote job growth in the near future.

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