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Update — Policy Center

New Jersey offers new model for economic development reform

April 6, 2010

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Tuesday, April 6, 2010

New Jersey Governor Chris Christie has taken dramatic steps to reform state economic development incentives mirroring recommendations described in a 2008 MassINC policy brief.

New Jersey Partnership for Action

Governor Christie’s budget proposal cuts $30 million in inefficient business tax credits, and eliminates the New Jersey film tax credit. From the savings, $22 million are redirected to the state’s Main Streets program, a successful urban revitalization initiative.

As described in MassINC’s policy brief, most economists believe geographically-targeted economic development investments (like the New Jersey Main Streets Program) generate much greater return on taxpayer investment than less focused business tax incentives, which have a limited impact on the location decisions companies make.

The governor’s proposal also consolidates state economic development agencies into a single public-private agency. Through the new organization – New Jersey Partnership for Action – the Christie administration will work hand in hand with business leaders to help market the state to prospective employers. 

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Recent Comments:

djs85   says on 4/6/2010 10:20 PM
“MA has been too lenient with what gets designated as an Economic Opportunity Area. If you look at the policy brief it just doesn’t make sense. I’d like to read about this Main Streets program to see what else they concentrate on to revitalize these areas and what kind of benefits it generates for the state’s economy as a whole. ”

djs85   says on 4/12/2010 4:42 PM
“I found a great (and quick) blog cited on Brookings.edu that also delves into the importance of “geographically-targeted” economic investments. Check it out! http://www.tnr.com/blog/the-avenue/the-landscape-innovation ”