Thomas Bracken, President & CEO of the New Jersey Chamber of Commerce, addressed the Assembly Budget Committee and Senate Budget and Appropriations Committee on June 26, 2024. In his testimony, Bracken expressed strong opposition to the proposed budget and the Corporate Transit Fee (CTF), citing significant harm to the state.
Bracken emphasized the state's structural deficit as a primary concern. "Our state spends more than it generates in revenue – and it is getting worse," he stated. He compared this financial situation to bankruptcy in a business context if such conditions persist.
The need for a 2.5% surcharge in the budget was highlighted by Bracken as a measure to fill the structural deficit and support New Jersey Transit. However, he argued that New Jersey Transit's financial issues are minor compared to the structural deficit.
"This year’s outrageous and punitive new 2.5% CTF fee, plus the usage of surplus dollars that came from federal COVID grants, will cover this year’s budget," Bracken noted. He warned that future reliance on corporate contributions would be untenable due to depleted surplus funds.
Looking ahead, Bracken pointed out an impending $1 billion gap in the general fund starting July 1, 2025, when those funds will be redirected to New Jersey Transit. He called for a focus on fostering a growing economy driven by a vibrant business community to generate sustained revenue.
Bracken criticized recent progress reversals due to budget constraints: "We were beginning to make some progress and gain momentum on both of those areas until the budget slammed the door on both."
Acknowledging that changes to the proposed budget were unlikely, Bracken hoped his testimony would serve as a wake-up call about what he described as an approaching economic crisis. "The business community has run out of patience, the state is running out of money, and our economy has no well-defined path forward," he asserted.
He concurred with Senator John Bramnick's sentiment that legislative priorities should shift from smaller issues to more significant economic challenges: "Meaning that the myriad of small issues hatched over many years has helped New Jersey become the fairest state in the nation … which is wonderful."
Bracken concluded by stressing an urgent need for priority shifts: "A dramatic and quick change in priorities is needed because the pace of our downward economic and competitive spiral will accelerate with passage of this budget."
