What to Know
- New Jersey Gov. Phil Murphy says he will put forward an economic ``master plan'' during a speech Monday on the state's laggard economy.
- The coming year will see the expiration of two tax incentive programs that started under Murphy's predecessor.
- New Jersey also has a relatively high unemployment rate, among other economic indicators that compare unfavorably with national figures.
New Jersey Gov. Phil Murphy says he will put forward an economic "master plan'' during a speech Monday on the state's laggard economy.
In an interview with The Associated Press, Murphy said the state needs to reverse downward-trending wages and employment growth figures, as well as the poverty rate.
He revealed few other details about changes he's planning.
Dropping his typical avoidance of even mild vulgarities for which his predecessor Republican Chris Christie was well known, Murphy says he got input over the summer from a range of groups, including business organizations like the Chamber of Commerce.
"The reason we're unveiling an economic master plan? The damn economy hasn't grown,'' Murphy said.
The speech comes as Murphy wraps up his first year in office since succeeding Christie.
He's followed through on several promises he'd made on the campaign trail, including increasing funding for Planned Parenthood, expanding environmental programs and funding pensions and school aid.
But he faces a pension and retiree health benefits liability estimated at more than $150 billion, or almost four times as much as the state's budget. New Jersey also has a relatively high unemployment rate, among other economic indicators that compare unfavorably with national figures.
Plus, he and the Democrat-led Legislature raised taxes on those making more than $5 million this year, as well as on businesses that bring in more than $1 million, leaving little appetite among legislators to consider raising rates once again next year as they head into an election year.
Business groups that opposed tax increases this year say they are optimistic and hold high expectations that Murphy might begin to enact more friendly policies for industry.
Michele Siekerka, the president and CEO of the New Jersey Business and Industry Association, pointed to a sign at the organization's headquarters that refers to New Jersey as the ``innovation state,'' echoing a regular Murphy slogan.
She says it's possible for Murphy, an unabashed liberal, and businesses to bridge their differences since they seem to have a similar vision.
"It has to be one where business is recognized as the job provider,'' she said.
One area where there could be some common ground, according to Siekerka and Chamber of Commerce executive Michael Egenton, is tax incentives.
The coming year will see the expiration of two tax incentive programs that started under Murphy's predecessor. Tax credit programs going back to the start of Christie's term account for about $8 billion in approved awards, according to the Economic Development Authority.
Siekerka and Egenton said they are pushing for a potential new incentive program aimed at middle and smaller businesses, moving away from grants for bigger firms in cities like Newark and Camden.
Murphy didn't tip his hand about what kind of new program he wants to see, but sounded unsatisfied with the current incentives, which he railed against on the campaign trail.
"We've put out a lot of tax incentives and what we've gotten back is not pretty,'' he said.
