The U.S. News & World Report last week released its rankings of the best states, revealing mixed news for New Jersey. The magazine named New Jersey the 14th best state overall, a positive development. However, when examining fiscal stability, a crucial metric for the state's business environment, New Jersey ranked 48th.
This follows a CNBC study from last year that placed New Jersey at an improved 19th overall on its list of “Top States for Business,” but also acknowledged significant shortcomings by ranking the state 44th in cost-effectiveness and 48th in business-friendliness.
Tom Bracken, president and CEO of the New Jersey Chamber of Commerce, expressed concern over these surveys. "These surveys raise red flags about New Jersey’s current economic conditions – and its long-term fiscal health and competitiveness," he said.
The critical question remains: what actions can New Jersey's government leaders take to address these issues? Bracken suggested avoiding measures that could worsen existing weaknesses highlighted in the surveys. He pointed specifically to the proposed Corporate Transit Fee (CTF) in Governor Murphy’s fiscal 2025 state budget. "That would certainly dissuade future investments by companies – and will stifle economic growth over the long term," Bracken stated. "We have to support one of New Jersey’s most precious assets – our businesses that employ tens of thousands of hard-working residents."
Bracken also criticized the proposed 'buck-a-truck' tax on trucks delivering goods within the state. "It simply makes our state more expensive and less competitive," he said.
In response to these proposals, Bracken and his team have been meeting with legislative leaders and members of the Murphy administration to discuss their concerns about potential tax hikes. They frequently remind officials of recent warnings from credit agencies following credit rating upgrades for New Jersey.
Credit agencies have indicated that maintaining these ratings requires finding “long-term, stable, organic sources of revenue.” According to Bracken, this can only be achieved by developing a healthy business climate in the state. "That's how New Jersey will flourish and pay for the state programs that help make it a great place to work and live," he said.
"The current budget proposals add fuel to the fire regarding New Jersey’s negatives highlighted in the CNBC and US News & World Report rankings – and the warnings issued by credit agencies," Bracken continued. "It also does not provide any meaningful support to our struggling business community."
Bracken concluded with optimism about New Jersey's potential: “There’s no reason we can’t be a top 10 state for doing business. A strong business climate that is not overtaxed and overregulated will allow New Jersey to flourish and move up in various economic surveys to higher rankings we deserve.”
