TRENTON, NJ—The impasse between the state's legislature and governor over implementation of a higher gas tax to fund the state's insolvent Transportation Trust Fund will have serious implications for business development and economic growth in the Garden State if it is not resolved quickly, according to several business leaders and economists who spoke exclusively with GlobeSt.com.
“It's just very frustrating at this eleventh hour that we're having these poorly thought-out, not well-articulated proposals being shared,” says Michael McGuinness, executive director of the New Jersey Chapter of NAIOP. “I just think that whole system is not very effective for producing sound public policy, especially as it relates to something as near and dear to our economy as a stable, healthy transportation system.”
The delay in implementation is “a double-edged sword,” says Thomas Bracken, president of the New Jersey State Chamber of Commerce. “The inaction in implementing it right now is not good,” he says. “It's such a crucial issue for the state, to be deadlocked and not find a compromise solution to get this done, doesn't look good for the state's ability to address their major problems.”
You can hear an extended version of GlobeSt.com's conversations with the business leaders in the audio player below.
Perception of state paralysis can negatively affect the decision-making of companies thinking about relocating to New Jersey, Bracken says. And despite billions spent to retrofit the ports of New York and New Jersey to accommodate the “neo-Panamax” vessels able to traverse the new, wider Panama Canal, he says shippers concerned about highway infrastructure issues in New Jersey may well seek other ports instead of investing in New Jersey.
“They're going to start to opt for other ports,” he says noting that much-needed highway and bridge clearance and maintenance projects are languishing. “The longer we wait, the longer it's going to take to start those projects. That's just going to put off the desire for those shippers to come here. And if they start using other ports and find them acceptable, it's going to be tough to lure them back here. Time is not our ally here, time is our enemy.”
“It would make it easier for our competitors in the Lehigh Valley, in lower New York State, in Baltimore and beyond, to be able to attract a lot of these companies,” says McGuinness. Noting the large consumer market New Jersey and New York inhabit, he adds, “Without adequate funding, without sending a message to companies that are thinking of investing in this market, we're going to lose those jobs, we're going to lose those investment dollars to other markets outside our borders.”
Infrastructure is the one investment that government cannot afford to ignore, says Joel Naroff, president of Naroff Economic Advisors, a strategic economic consulting firm in Holland, PA.
“New Jersey has essentially allowed it to deteriorate, and it goes back 20 years,” he says. “Most of the trust funds were being raided to balance budgets in the state, and the fiscal irresponsibility that's been around for decades – and it's bipartisan, they're both equally to blame for destroying the fiscal responsibility of the state – the state is extraordinarily well-positioned for future growth. The world economy is not going away, and globalization and interrelationships will only expand. New Jersey is in that position with its ports, its airports. We need the roadways. People think of trade and forget there's a distribution element to it.”
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Steve Lubetkin
Steve Lubetkin is the New Jersey and Philadelphia editor for GlobeSt.com. He is currently filling in covering Chicago and Midwest markets until a new permanent editor is named. He previously filled in covering Atlanta. Steve’s journalism background includes print and broadcast reporting for NJ news organizations. His audio and video work for GlobeSt.com has been honored by the Garden State Journalists Association, and he has also been recognized for video by the New Jersey Chapter of the Society of Professional Journalists. He has produced audio podcasts on CRE topics for the NAR Commercial Division and the CCIM Institute. Steve has also served (from August 2017 to March 2018) as national broadcast news correspondent for CEOReport.com, a news website focused on practical advice for senior executives in small- and medium-sized companies. Steve also reports on-camera and covers conferences for NJSpotlight.com, a public policy news coverage website focused on New Jersey government and industry; and for clients of StateBroadcastNews.com, a division of The Lubetkin Media Companies LLC. Steve has been the computer columnist for the Jewish Community Voice of Southern New Jersey, since 1996. Steve is co-author, with Toronto-based podcasting pioneer Donna Papacosta, of the book, The Business of Podcasting: How to Take Your Podcasting Passion from the Personal to the Professional. You can email Steve at [email protected].
