Senator Jennifer Beck (R-Monmouth) said that the Democrats' elimination of funding in the FY 2015 New Jersey budget for payments approved through the state's Business Employment Incentive Program (BEIP) would serve as a warning to employers who are considering whether the Garden State is a good place to do business.
"Many companies that signed deals with the state under BEIP are dependent on those funds to continue operating, and the state has a contractual obligation to make the payments," said Beck. "With other states aggressively promoting lower taxes, better regulatory structures and their own incentive programs, how can New Jersey afford to break its word?"
According to data provided by the New Jersey Economic Development Authority (EDA), 498 BEIP grants have supported the creation of an estimated 83,849 new jobs.
"We have signed deals with pharmaceutical, manufacturing and financial services companies to promote the creation of thousands of jobs in those high paying industries for New Jersey residents," said Beck. "By not funding already signed deals, are Democrats saying that New Jersey doesn't need those jobs?"
Beck noted that just yesterday, New Jersey inked a deal with Citigroup to create 1,000 jobs in the state through incentives offered through the Grow NJ Assistance Program.
"We have to wonder if major businesses like Citigroup that can locate operations anywhere in the world will start to reevaluate the value of signing agreements with the State of New Jersey," added Beck. "Would Citigroup have still pursued this deal to create 1,000 jobs in New Jersey if they were just starting the process of looking for a place to locate a new office today?"