Friday Facts and Figures: April 10, 2020

Friday Facts and Figures is a brief digital newsletter focusing on data points from NJPP reports, research, and policy debates in New Jersey and beyond.
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Positive COVID-19 Cases: 54,588 | Deaths: 1,932
[New Jersey Department of Health / COVID-19 Dashboard]


Monday

On Monday, Senator Teresa Ruiz will join NJPP and the Anti-Poverty Network of New Jersey to unveil new legislation to reduce child poverty by improving the state’s Temporary Assistance for Needy Children (TANF) program. The announcement, which will be streamed on Facebook Live, coincides with the release of a new NJPP report, Promoting Equal Opportunities for Children Living in Poverty. The report finds that far fewer families living in poverty receive cash assistance today than when TANF was established in 1996, and that the state’s TANF benefit levels are too low to lift families out of poverty. Watch the livestream on Monday at 12:00pm on NJPP’s Facebook page, linked here.  [Facebook / New Jersey Policy Perspective]


577,000

Another 215,000 New Jersey residents filed for unemployment last week, according to new data from the state Department of Labor. This is the third week in a row of record-breaking unemployment claims. In total, more than 576,000 New Jersey workers — more than 13 percent of the state’s workforce — have filed for unemployment since the COVID-19 pandemic hit. To quote NJPP President Brandon McKoy, “Our policy response must match the enormity of the moment. So far, it hasn’t. We have a lot of catching up to do if we want any chance of staving off the worst.” [NJ.com / Samantha Marcus]


70 Percent

Skyrocketing unemployment will result in hundreds of thousands of New Jersey workers losing not only their job, but their health coverage as well. That’s because 70 percent of workers in New Jersey get their health insurance through their employer. Last week, the Economic Policy Institute (EPI) estimated that more than 147,000 New Jerseyans with employer-based insurance lost their jobs due to COVID-19. That number is now much higher, as the EPI estimate does not account for the 215,000 workers who filed unemployment claims last week. Fortunately, these residents have options to maintain coverage, namely through the ACA marketplace or continuing their existing health insurance policy through COBRA. [NJ Spotlight / Jon Hurdle]


$500 Billion

The COVID-19 pandemic is stretching state and local governments thin, as revenue from sales, income, and corporate business taxes have plummeted due to necessary social distancing measures. Because states and localities are required by law to balance their budgets, significant revenue shortfalls could result in drastic cuts to public programs and services that families rely on. To avoid these cuts and the harm they would cause families and the broader economy, the federal government must act quickly to provide state and local governments with more aid. According to a new analysis by EPI, approximately $500 billion more in federal aid will be needed by the end of 2021 to help state and local governments with revenue shortfalls. [Economic Policy Institute / Josh Bivens and Naomi Walker]


$100 Million

A new bill, sponsored by Senate President Sweeney and Senators Stack and Corrado, would provide $100 million in rental assistance to tenants across the state. The proposed legislation would establish a temporary emergency rental assistance program for low- and middle-income families who have lost income due to the COVID-19 crisis. The rental assistance would be paid for by a combination of uncommitted and unspent Community Development Block Grant Disaster Recovery funds and federal aid provided to the state for COVID-19 recovery efforts. The bill is up for a vote in the Senate on Monday. [ROI-NJ / Tom Bergeron]


ICYMI

The New Jersey State Senate will hold its first ever virtual voting session this upcoming Monday. On the docket: a package of bills to respond to COVID-19, including proposals to expand TANF benefits, assist inmates released from incarceration in obtaining reentry benefits, increase support for laid off workers eligible for unemployment benefits, and much more. [Insider NJ]


Pets of NJPP

This is Mercury, Sheila’s co-working cat! Mercury is a scrappy street kitty who was adopted by the Reynertson family last winter. The rescue’s initial plan was to neuter Mercury and let him back out on the streets, but staff were enamored by his stellar personality and decided to put him up for adoption. He now enjoys long naps on the couch and makes frequent appearances in NJPP’s #petsofnjpp Slack channel. Meow!


Have a fact or figure for us? Tweet it to @NJPolicy. 

Friday Facts and Figures: April 3, 2020

Friday Facts and Figures is a brief digital newsletter focusing on data points from NJPP reports, research, and policy debates in New Jersey and beyond.
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Positive COVID-19 Cases: 25,590 | Deaths: 537
[New Jersey Department of Health / COVID-19 Dashboard]


206,253

A record number of New Jersey workers — 206,253 — filed for unemployment benefits last week due to the COVID-19 pandemic. This is in addition to the 155,815 workers who applied for unemployment in the week ending March 21. Approximately 17 percent of unemployment applications over the last two weeks were from food service workers, as many restaurants have closed or limited their hours of operation. Nationwide, more than 6.6 million people filed for unemployment benefits last week, which is double the number of workers who filed for benefits two weeks ago. Based on these figures, there will be many workers and families who will be unable to pay their bills because of this crisis. The only responsible path forward is for New Jersey to expand the social safety net and provide critical relief to everyone who needs it.  [NJ.com / Samantha Marcus]


$30

New Jersey’s local health departments, representing the state’s front line of defense against COVID-19, are having a difficult time responding to the pandemic. Why? These health departments have been underfunded for decades, meaning they do not have the staff or resources to handle the increased workload during a health crisis. This is part of a national trend, as many states have scaled back investments in public health since the Great Recession over a decade ago; since 2008, local health departments across the country lost about 1 in 4 of their workers due to budget cuts. New Jersey’s local health departments are among the lowest-funded in the nation, as the state spends less than $30 per resident on these critical agencies. To put this number in context, this is less than half of what states like New York and Maryland spend. [NorthJersey.com / Ashley Balcerzak and Terrence McDonald]


Wealth Taxes

The economic fallout from COVID-19 will be much worse than anything we’ve experienced in a long time, as skyrocketing unemployment will bring many residents to the brink of financial ruin. To protect the families harmed most by COVID-19 and ensure the state’s economy has a speedy recovery, New Jersey must expand social safety net programs and avoid cutting public services that workers and small businesses rely on. According to a new report by NJPP Senior Policy Analyst Sheila Reynertson, this can be accomplished with higher taxes on the wealthiest households in the state. As Sheila told Law360, “If state lawmakers want to avoid brutal cuts to public services and programs that families rely on, especially during times of crisis, they must raise new revenue.” [Law360 / James Nani]


3

In response to COVID-19, New Jersey will extend both the tax filing deadline and the state’s fiscal year. The new tax deadline, July 15, mirrors the federal extension announced last month. The three-month extension of the fiscal year, an unprecedented move, will push the state’s budget deadline back to September 30. This was a necessary move, according to Governor Murphy and legislative leaders, as the state is still unaware of precisely how much revenue the state will lose from drops in sales, income, and corporate business tax collections. [NJ Spotlight / John Reitmeyer]


35 Percent

Thousands of New Jersey residents were expected to pay rent this past Wednesday for the first time since the COVID-19 pandemic rocked the state’s economy. Last week, Governor Murphy announced a stay on some mortgage payments for the next 90 days, but renters — who account for 35 percent of New Jersey residents — have yet to receive similar relief. “It’s unprecedented. It’s crazy. It’s an emergency situation, and right now tenants are bearing the burden,” said Matt Shapiro, director of the New Jersey Tenants Organization (NJTO). To support renters in these challenging times, the NJTO is calling on the state to reduce rent payments to a percentage of the tenant’s income and waive late fees. [NJ.com / Sophie Nieto-Munoz]


ICYMI

On Thursday, Congresswoman Bonnie Watson Coleman joined NJPP President Brandon McKoy for a Facebook Live Discussion on the federal government’s response to COVID-19. In the discussion, the Congresswoman and Brandon discuss the CARES Act, what it’s missing, and ways the federal government can better support families and small businesses hurt by COVID-19. This was a truly great conversation — I definitely recommend watching the recording if you missed it yesterday. [Facebook / New Jersey Policy Perspective]


Pets of NJPP

Meet my co-working cat, Mau! A former Jersey City bodega cat, Mau is a steadfast advocate for wet food for all and universal vet coverage. He enjoys bird watching from the window, having his chin scratched, and waking me up before the morning alarm goes off. Here he is practicing good social distancing inside a fort I made him.


Have a fact or figure for us? Tweet it to @NJPolicy. 

Friday Facts and Figures: March 27, 2020

Friday Facts and Figures is a brief digital newsletter focusing on data points from NJPP reports, research, and policy debates in New Jersey and beyond.
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Positive COVID-19 Cases: 6,876 | Deaths: 81
[New Jersey Department of Health / COVID-19 Dashboard]


$3.44 Billion

The federal stimulus bill, slated for a vote later today, will provide New Jersey with $3.44 billion in aid to address the COVID-19 pandemic. It’s unclear if these funds can only be used to cover new expenses incurred due to COVID-19, such as increased public health spending, or if they can also be used to shore up the state’s finances as income, sales, and corporate business tax revenue drop due to social distancing measures. Regardless, states, including New Jersey, will still need a lot more support from the federal government to provide critical relief to workers, families, and business, and to prevent the state from making dramatic cuts to programs due to a revenue shortfall. To put the $3.44 billion figure in context, just last week Governor Murphy estimated that New Jersey will need $20 billion in federal assistance to deal with the economic fallout caused by COVID-19. [Center on Budget and Policy Priorities]


$1,200

The federal stimulus bill, known as the CARES Act, will also provide direct relief to workers and their families. The bill provides up to $1,200 in “recovery rebates” to individuals with income up to $75,000 a year, plus an additional $500 per child. The benefit phases out for individuals with income over $75,000, with no benefit for those with income over $99,000. Similar to the state aid portion of the stimulus, these measures fall short of meeting the needs of families who may have lost their jobs but still have to pay for things like rent, groceries, and other necessities. The bill also includes troubling exemptions for immigrants who file taxes via Individual Taxpayer Identification Numbers (ITIN), and it exempts children who are U.S. citizens if their parents are undocumented. From both an economic and humanitarian perspective, no one should be left behind in the federal government’s COVID-19 stimulus, regardless of their immigration status or where their parents were born. [Institute on Taxation and Economic Policy]


155,815

New Jersey is experiencing an unprecedented surge in unemployment claims as a result of the closure of nonessential businesses to stop the spread of COVID-19. Nearly 156,000 New Jersey workers filed for unemployment last week alone — a 1,546 percent increase over the same week a year ago. This spike in unemployment claims shatters all previous records in New Jersey; weekly claims peaked after Hurricane Sandy at 46,000 and at the height of the Great Recession at 25,000, according to the state Department of Labor. This number likely undercounts how many New Jersey residents are actually out of work, however, as the state’s intake system has been overwhelmed by the volume of new claims. Further, this figure does not include workers in the gig economy who have lost hours but do not qualify for unemployment insurance. [NJ.com / Samantha Marcus]


$75 Million

The New Jersey Economic Development Authority (EDA) has approved $75 million in grants and loans to assist small businesses during the COVID-19 pandemic. The new initiatives include $5 million for a new Small Business Emergency Assistance Grant Program, which will provide up to $5,000 to small businesses to stabilize their operations and reduce the need for layoffs, and $10 million for a new Small Business Emergency Assistance Loan Program that will provide small businesses with zero- and low-interest loans. The EDA’s shift in focus to small businesses is a welcome one, as these are the businesses that will need relief the most — not large multi-national corporations. Tim Sullivan, CEO of the EDA, put it nicely here: “Small- and medium-sized enterprises are the heartbeat of New Jersey’s economy and it is crucial that we do what we can to provide the resources and assistance they need to withstand the outbreak of novel coronavirus.” [ROI NJ / Tom Bergeron]


1,000

New Jersey will release as many as 1,000 people from its jails to prevent the spread of COVID-19 under a new order by Chief Justice Stuart Rabner. The order, which may be the broadest effort yet in the nation to release people who are incarcerated during the COVID-19 pandemic, applies to those jailed for probation violations, those convicted in municipal court, and those sentenced for low-level crimes in Superior Court. Here’s what Amol Sinha, Executive Director of the ACLU of New Jersey had to say about the order: “Unprecedented times call for rethinking the normal way of doing things. And in this case, it means releasing people who pose little risk to their communities for the sake of public health and the dignity of people who are incarcerated.” We couldn’t agree more. [The New York Times / Tracey Tully]


ICYMI

Earlier this week, Senate President Steve Sweeney penned an op-ed in The Star-Ledger on the COVID-19 pandemic and the workers, public programs, and institutions that keep our society running in these challenging times. While the entire piece is worth a read and a share, this is my favorite line: “Social safety nets, along with equitable tax policy, not only protected the American middle class throughout the mid-20th century but fueled its growth.” This is precisely why New Jersey must protect and expand its social safety net programs and ensure the state has the resources to do so. [NJ.com / Senate President Steve Sweeney]


Pets of NJPP

Say “hello” to Bernie, NJPP Research Director Nicole Rodriguez’s co-worker cat. Bernie, also known as Bernard T. Toast, Esq., is a prolific bullet journaler (note the productivity planner), loves cat treats, and enjoys hiding behind the window curtains in his spare time.


Have a fact or figure for us? Tweet it to @NJPolicy. 

Friday Facts and Figures: March 20, 2020

Friday Facts and Figures is a brief digital newsletter focusing on data points from NJPP reports, research, and policy debates in New Jersey and beyond.
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742

There are now 742 known positive cases of COVID-19 in New Jersey, including nine deaths, according to the latest figures released by state health officials on Thursday. The number of cases has grown exponentially over the last week, with 312 new positive tests announced on Thursday alone. Still, this is likely a drastic undercount of the actual spread as testing remains limited. According to Governor Murphy, “These numbers, sooner than later, will go into the many thousands.” [NJ.com / Matt Arco]


15,000

The COVID-19 pandemic is a threat not only to New Jersey’s public health but also its economy. Approximately 15,000 residents across the state filed for unemployment on Monday alone due to the necessary business closings and restrictions enacted by the Murphy administration. NJPP President Brandon McKoy told NJ Spotlight that this record increase in unemployment filings “pales in comparison with what the state should expect to see in the coming weeks.” According to a new analysis by the Economic Policy Institute, New Jersey could lose 142,000 private-sector jobs by summer. If unemployment rises to 20 percent, as suggested by U.S. Treasury Secretary Steven Mnuchin, New Jersey would be poised to lose 900,000 jobs. [NJ Spotlight / Jon Hurdle]


How to Apply for Help

If you have lost your job or had your hours cut due to the COVID-19 pandemic, you should be eligible for unemployment insurance benefits. The Star-Ledger has compiled a list of options available to you depending on your circumstances. For example, if you cannot work because your child’s school or daycare is closed, you may use your paid sick days. If you cannot work because your health care provider has deemed you high-risk, you may qualify for temporary disability insurance. Click the link for more info. [NJ.com / Samantha Marcus]


First Wave

State lawmakers worked around the clock this week to pass the first wave of COVID-19 relief for New Jersey workers, children, and small businesses. The emergency package of bills, introduced Monday and approved by the Legislature on Thursday, includes funding for school districts to help them transition to remote learning, grants to help small businesses meet payroll, requires schools to provide free- and reduced- meals to students who qualify, freezes evictions, and much more. “We came here today because we thought it was extremely important to get a lot of this stuff done, because New Jersey families have to know that we’re not taking off,” Senate President Steve Sweeney said after the Thursday vote. “We’re following through to make sure they’re as safe as they can be.” [NJ.com / Samantha Marcus]


$1.25 Billion

NJ Transit, the third-largest commuter rail line in the nation, has asked the federal government for a $1.25 billion bailout due to a dramatic reduction in ridership stemming from the COVID-19 outbreak. According to CEO Kevin Corbett, NJ Transit has seen an 88 percent reduction in ridership since Monday as businesses are forced to close and employees are increasingly working from home. NJ Transit may need further relief in the future if the state is unable to provide the agency with its annual subsidy and if funding from the Transportation Trust Fund comes up short. [Politico / Ryan Hutchins]


ICYMI

Earlier this week, NJPP released a list of tax and budget policy do’s and don’ts to help guide state lawmakers in their response to COVID-19. The policy brief recommends that New Jersey expand safety net services and provide direct and immediate relief to the families and small businesses who will be harmed most by the pandemic. It also warns against broad-based tax cuts, such as lowering or suspending the sales tax, as the state will need significant financial resources to adequately respond to COVID-19. [NJPP / Brandon McKoy]


Pets of NJPP

As a much-needed visual palette cleanser, we will feature #PetsOfNJPP in Friday Facts and Figures emails going forward. Meet Scout, Brandon’s co-working pup and unofficial mascot of NJPP. Scout enjoys long walks in the park, even longer naps on the couch, and barking at squirrels.


Have a fact or figure for us? Tweet it to @NJPolicy. 

Friday Facts and Figures: March 13, 2020

Friday Facts and Figures is a brief digital newsletter focusing on data points from NJPP reports, research, and policy debates in New Jersey and beyond.
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Welcome to a special edition of Friday Facts and Figures. As the COVID-19 pandemic continues, NJPP will provide recommendations on critical policy interventions that federal, state, and local governments can take to mitigate harm in our communities. We will also share important directives from government and health officials to help you stay informed on the latest developments so you can act with accurate and reliable information.


29

According to state health officials, there are currently 29 presumptive cases of COVID-19 in New Jersey, with 13 in Bergen County alone. Due to the limited number of tests available — only 103 have been completed in the state at this time — the total number of cases is thought to be much higher. Virus symptoms may not show for up to two weeks, during which COVID-19 can still be passed onto others. The best thing to do right now is wash your hands thoroughly and regularly, avoid touching your face, and practice social distancing, which means that you should avoid crowds and stay home as much as possible. These measures are critical to protecting high-risk groups, specifically those over the age of 60 and those with an underlying health condition. [NJ Department of Health / COVID-19 Dashboard]


250

To help slow the spread of COVID-19, Governor Murphy has called for all public gatherings of 250 people or more to be canceled, New Jersey Chief Justice Stuart Rabner has suspended all new jury trials “until further notice,” and Bergen County officials have closed all 75 of the county’s school districts for at least two weeks. “We are taking this step because social distancing works,” Murphy said. “It is our best chance to ‘flatten the curve’ and mitigate the chance of rapid spread.” Flattening the curve, meaning delaying and reducing the outbreak peak through social distancing measures, is a critical containment strategy meant to prevent inundating the state’s health care system. [WHYY / Nicholas Pugliese]


Rainy Day Fund

As the COVID-19 virus continues to spread, there will likely be significant shocks to our economy, businesses, families, and systems of government. This is precisely why New Jersey must continue to raise revenue and invest heavily in its Rainy Day Fund, as this is the only way to maintain critical state services that families rely on during a revenue shortfall. As NJPP Senior Policy Analyst Sheila Reynertson told the Senate Budget Committee earlier this week, “The coronavirus might be gone by summer, but the U.S. economy might not be back in full swing at all. So we want to see New Jersey take a proactive stance and ensure those who will be hit hardest by the recession are protected.” [NJTV News / Briana Vannozzi]


State Policy

The decisions that states make in a crisis are crucial to fending off further shocks to the economy and to limiting damage to families, workers, and businesses. There are critical policy interventions that should be considered, including: expanding paid sick time , which allows people to recover from short-term illnesses without losing income and their job; expanding access to unemployment insurance to cover more at-risk employees, including tipped workers, care workers, gig economy workers, and independent contractors, and; extending credit and no-interest loan options to small businesses that may experience decreased commerce activity during the crisis. Further, as recommended by the Housing and Community Housing Network of New Jersey, the state should enact mechanisms to prevent foreclosures, implement a statewide moratorium on evictions, and provide additional rental assistance, as worker’s employment statuses may be at-risk.

Most importantly, state lawmakers must avoid the mistakes of the past; meaning no passing of broad-based tax cuts that will disproportionately benefit the wealthiest families and companies. This would not only place increased burdens onto the average resident but also hamstring the public sector’s ability to act swiftly and responsibly. Instead, states should explore targeted interventions to support vulnerable people, small businesses, and front-line responders so that the strain on social systems does not reach catastrophic levels. [Center for American Progress / Andy Green]


Federal Policy

Federal lawmakers and the Trump administration are currently negotiating a coronavirus response package that could include free testing, paid emergency leave, and increased unemployment coverage to those harmed by the pandemic. This follows the release of the Families First Act by House Democrats that would expand unemployment insurance, strengthen food assistance, and create paid sick days and emergency paid leave programs. As the Washington Center for Equitable Growth recommends, the federal government should make expansions of social supports permanent so that we are all prepared and protected when the next crisis hits. [Washington Center for Equitable Growth / Alix Gould-Wirth]


ICYMI

The state Department of Health (DOH) has created a 24-hour Coronavirus Hotline to answer general questions about COVID-19. Trained health care professionals are standing by to answer your calls at 1-800-222-1222. The DOH website also includes resource guides for the general public, businesses, schools, public health professionals, and state employees. Visit this site for more information. [NJ Department of Health / COVID-19 Resources]


Have a fact or figure for us? Tweet it to @NJPolicy. 

Friday Facts and Figures: March 6, 2020

Friday Facts and Figures is a brief digital newsletter focusing on data points from NJPP reports, research, and policy debates in New Jersey and beyond.
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4

Here’s your chance to have your voice heard on next year’s state budget! The first of four public budget committee hearings is this upcoming Tuesday at the New Jersey Institute of Technology (NJIT) in Newark. These hearings provide advocates, policy experts, and the general public an opportunity to testify on what they want included in the FY 2021 budget. NJPP and members of the For The Many NJ coalition will be there Tuesday morning, wearing green, in support of renewed investments in our communities and a fairer tax code that ensures millionaires and big corporations pay their fair share. [NJ Spotlight / John Reitmeyer]


8

It’s been eight months since New Jersey’s corporate tax subsidy programs expired as state lawmakers remain gridlocked on potential reforms. Has the sky fallen without these programs? Quite the opposite — business is booming in New Jersey, acting as further proof that a lack of a corporate subsidy program has not hindered economic growth. As NJPP Senior Policy Analyst Sheila Reynertson told The Star-Ledger, “This shouldn’t come as a surprise, as there is no evidence that corporate tax breaks have any impact on a state’s broader economic performance.” [NJ.com / Ted Sherman]


2.4 Million

As a result of welfare reforms passed in the 1990s, far fewer families living in poverty have access to federal cash assistance. Enrollment in Temporary Assistance for Needy Families (TANF) has plummeted since the program’s inception due to a lack of federal minimum eligibility standards, which allows states to enact barriers to the program, and flat funding. Today, for every 100 families with children living in poverty, only 22 receive TANF assistance. In 1979, 82 of every 100 such families received federal cash assistance. If TANF had the same reach of its predecessor — Aid to Families with Dependent Children — 2.4 million more families nationwide would receive TANF benefits. [Center on Budget and Policy Priorities / Ife Floyd]


Bogus

On Wednesday, federal Transportation Secretary Elaine Chao announced that Gateway Tunnel construction will be delayed indefinitely as a required environmental impact statement will not be completed anytime soon. The original deadline for this report was set for two years ago — March 2018. Representative Tom Malinowski (NJ-7) called the administration’s delay “bogus,” saying “This is obviously their latest excuse for not having a good explanation for sitting on this report for two years past their own self-imposed deadline.” [NJ.com / Larry Higgs and Jonathan D. Salant]


500,000

With the 2020 U.S. Census right around the corner, advocates and state officials have a simple message for families across the state: don’t forget to count your kids! Children between infancy and five years old are the most-likely demographic to be missed by the census, and new data shows that approximately 500,000 kids in New Jersey are at risk of being missed. An undercount could result in New Jersey receiving less than its fair share of federal grants and aid as these numbers are determined by census data. [NJ.com / Dale Shoemaker and Disha Raychaudhuri]


ICYMI

Catch NJPP President Brandon McKoy on the latest episode of News 12’s Power and Politics! Tune it at the 14:50 minute-mark to watch Brandon discuss Governor Murphy’s budget address and how the state can craft a budget that prioritizes low- and middle-income families over special interests. [News 12 New Jersey / Power & Politics]


Have a fact or figure for us? Tweet it to @NJPolicy. 

Friday Facts and Figures: February 28, 2020

Friday Facts and Figures is a brief digital newsletter focusing on data points from NJPP reports, research, and policy debates in New Jersey and beyond.
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$40.9 Billion

On Tuesday, Governor Murphy delivered his third annual budget address where he outlined his vision for the next fiscal year. The governor’s $40.9 billion proposal includes big investments in education, from pre-K to college, transit infrastructure, tax credits for working families, and much more. The budget also takes steps to repair the New Jersey’s fiscal foundation with a record pension payment, $1.6 billion surplus, and $300 million deposit into the state’s Rainy Day Fund. These latter two investments are critical safeguards against a future economic downturn or superstorm. [NJSpotlight / John Reitmeyer]


60,000

Approximately 60,000 workers across the state would get a boost in their take home pay under Governor Murphy’s plan to expand the state’s Earned Income Tax Credit (EITC). In his budget address, the governor proposed both raising the tax credit benefit and lowering the age eligibility threshold for workers without children from 25 years of age to 21. The EITC has been proven effective at lifting low-paid workers and their families out of poverty, so this reform is sorely needed. There are additional bills in the Legislature, however, that would expand the tax credit beyond what the governor proposed. [NJBIZ / Daniel Munoz]


$65,000

Another big proposal in the budget: two free years of college for students whose families earn less than $65,000 per year. The Garden State Guarantee would build upon the success of New Jersey’s free community college program by extending it to public four-year colleges and universities. This program is the first of its kind in the nation and would make college more accessible for tens of thousands of New Jersey students. It would also require colleges to freeze the student’s tuition rate for four years. [NJ.com / Kelly Heyboer and Brent Johnson]


18,000

For the third year in a row, Governor Murphy has proposed a millionaires tax to help fund new investments in the state budget. This would increase the marginal tax rate on earnings over $1 million from 8.97 percent to 10.75 — or less than two cents for every dollar over $1 million. Approximately 18,000 of New Jersey’s wealthiest residents would pay this new tax rate, as well as an additional 19,000 out-of-state residents who earn income in New Jersey. This analysis from The Record charts how much more New Jerseyans would pay given their income level. As NJPP President Brandon McKoy states in this article, “It’s a start” toward ensuring the wealthiest among us pay their fair share. [NorthJersey.com / Ashley Balcerzak]


2.5 Percent

As NJPP Research Director Nicole Rodriguez stated in our rapid reaction to the budget address, the millionaires tax is not the end all be all of tax fairness. More can and should be done to ensure the wealthiest individuals and biggest corporations pay their fair share in taxes. One way forward: extending the 2.5 percent corporate business tax (CBT) surcharge on high-earning businesses. Last Friday, Senate President Sweeney proposed doing just that in his plan to dedicate funding to NJ Transit. Extending the CBT surcharge is smart policy, especially in the wake of the 2017 Trump tax cuts that provided a huge windfall for big corporations. [NJBIZ / Daniel Munoz]


ICYMI

To learn more about true tax fairness and how the state budget can advance economic and racial equity, please join us and leading policy experts on April 24 at NJPP’s annual conference, Progress 2020: Policy for the People. Early bird registration is still open. Additional speakers and breakout sessions will be announced shortly, so keep an eye on your inbox over the next couple of weeks! [NJPP / Progress 2020]


Have a fact or figure for us? Tweet it to @NJPolicy. 

Friday Facts and Figures: February 21, 2020

Friday Facts and Figures is a brief digital newsletter focusing on data points from NJPP reports, research, and policy debates in New Jersey and beyond.
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$15 Billion

Big tax cuts, worth $15 billion over the last 10 years, for the ultra-wealthy and large corporations have made it difficult for New Jersey to properly invest in the programs and services ordinary families rely on. That’s why NJPP has teamed up with faith-based organizations, labor unions, and advocates for transit, housing, the environment, and more to form For The Many. This coalition will push for a fairer tax code so New Jersey can meet its current obligations and make bold investments in its future. Learn more about the coalition in this op-ed by NJPP President Brandon McKoy. [NJ.com / Brandon McKoy]


$3 Billion

Earlier this week, members of For The Many stood on the steps of the State House to call for a new approach to budgeting that puts the needs of the many before those of corporate special interests. At the press conference, the coalition unveiled a roadmap for New Jersey to recapture $3 billion in revenue a year, mostly through ending Christie-era tax cuts. Proposals include: restoring the estate tax for ultra-wealthy heirs, raising the income tax on the state’s highest earners, broadening the sales tax to include high-end services and restoring the rate to 7 percent, and extending the corporate business tax surcharge. [NJTV News / Joanna Gagis and John Reitmeyer]


Near-Failing

Another goal of For The Many: promoting fiscal responsibility and transparency in the state budget process. According to a new study by the Volcker Alliance, this is sorely needed in New Jersey, which received a near-failing grades for budget forecasting and budget maneuvers. The report knocks New Jersey for not using consensus revenue forecasting, not conducting long-term revenue or expenditure projections, and for using one-shot revenue gimmicks and revenue diversions to pay for long-term investments. [NJ Spotlight / John Reitmeyer]


Hard Caps

In a new editorial, The Star-Ledger makes a strong case for hard caps on annual corporate subsidy spending. Hard caps on awards are a national best practice and remain the state’s best protection against future waste and abuse of taxpayer dollars. Here’s a great excerpt from the editorial: “And the core problem is that we never know for sure when companies are bluffing us, demanding big tax discounts to do what they intended to anyway… If a subsidy only rewards companies for a move they would otherwise make, all we get out of the deal is lost revenue.” [NJ.com / Editorial Board]


100

Dozens of immigrants and supporters protested in Newark on Thursday against a new plan by Immigration and Customs Enforcement (ICE) to deploy 100 officers and agents to “Sanctuary Cities.” For context, in 2018, New Jersey Attorney General Gurbir Grewal issued a statewide “Immigrant Trust Directive” to limit state and local police from participating in federal immigration enforcement to promote public safety and build trust between police and immigrant communities. Immigrant advocates, including Wind of the Spirit, are encouraging community members to report to them any sightings of ICE officers. [NorthJersey.com / Monsy Alvarado]


ICYMI

NJPP President Brandon McKoy was named one of the most influential people in New Jersey in this year’s NJBIZ Power 100. According to NJBIZ, Brandon is “one of the most progressive voices in the state for policies aimed at boosting economic security for the state’s working families.” Congratulations, Brandon, on the well-deserved recognition! [NJBIZ / Power 100]


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Friday Facts and Figures: February 14, 2020

Friday Facts and Figures is a brief digital newsletter focusing on data points from NJPP reports, research, and policy debates in New Jersey and beyond.
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$4.8 Trillion

Earlier this week, President Trump unveiled a $4.8 trillion budget for 2021. Long story short: this budget proposal would be devastating for New Jersey. It includes major cuts to Medicaid, Medicare, and the social safety net. It also extends massive tax cuts for wealthy families that were initially passed in 2017. NJPP Health Policy Director Ray Castro described the budget as “yet another massive redistribution of wealth from low-income and working class families to the top 1 percent.” [NJ.com / Jonathan D. Salant]


4 Percent

A new study by economists at Princeton and Columbia Universities finds no strong evidence that corporate tax incentives increase “broader economic growth” at the state or local level. In fact, the paper finds that communities that attract new businesses with tax incentives experience, on average, a 4 percent decrease in house prices. The study concludes by saying that any argument for continuing such subsidies must prove that they advance equity, either by improving economic conditions in the most distressed areas or by promoting the well-being of under- and unemployed workers. [Princeton University / Caitlin Slattery and Owen Zidar]


25

Last week, a special state Senate committee released a report outlining 25 ways to reform New Jersey’s corporate tax subsidy programs. The recommendations were mostly good, but there was one glaring omission: a hard cap on annual spending. This commonsense reform, recommended by national experts on economic development policy, is the state’s best defense against the future waste and abuse of taxpayer dollars. As NJPP Senior Policy Analyst Sheila Reynertson told the Philadelphia Inquirer, “New Jersey is not in the financial position to give out limitless corporate tax breaks, and hard caps should be a nonnegotiable component as lawmakers consider tax subsidy reform.” [Philadelphia Inquirer / Catherine Dunn]


$2.7 Million

Jackson Hewitt has agreed to forfeit its entire $2.7 million corporate subsidy after a whistleblower testified last year that the company lied on its application to the Economic Development Authority (EDA). Two other companies, Gaming Laboratories International and Audio and Video Labs, Inc., have also agreed to give up their tax credits, worth a combined $11 million. [Politico / Matt Friedman]


$400,000

The Philadelphia 76ers were given a larger corporate tax subsidy than they deserved, even under the lax rules set by the Economic Opportunity Act. How? The company included the tax credit application fees in its calculation of how much it cost to relocate its practice facilities to Camden. This is just a fraction of its $82 million tax subsidy, but it serves as yet another example of the lack of meaningful safeguards in New Jersey’s tax incentive programs. [NJ.com / Ted Sherman]


Be Our Valentine? ❤️

Does the $15 minimum wage bring a smile to your face? Do you swoon over a strong safety net? Does the thought of closing corporate tax loopholes fill you with a warm glow? Don’t be coy! Show your love for progressive policy today by becoming a recurring donor to NJPP. Your commitment sustains the research that keeps our state moving forward. XOXO. [NJPP / Be Our Valentine!]


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Friday Facts and Figures: February 7, 2020

Friday Facts and Figures is a brief digital newsletter focusing on data points from NJPP reports, research, and policy debates in New Jersey and beyond.
Sign up here.


$1.3 Billion

We finally know why Amazon set up a public bidding war between hundreds of North American cities for its second headquarters. Was it free publicity? Nope. To collect data on the applicants? No. Because the company really needed subsidies to expand? Definitely not. According to a new report by Bloomberg, Amazon CEO Jeff Bezos held the infamous HQ2 contest because he was jealous of Elon Musk, the CEO of Tesla. Specifically, Bezos was envious of the $1.3 billion in subsidies Tesla received to open a battery plant in Nevada. If you don’t already support an interstate corporate subsidy ceasefire, this article should change your mind. [Bloomberg / Spencer Soper, Matt Day, and Henry Goldman]


15 Percent

In a new op-ed, fast-food manager Andrea Rodriguez details how she often works over 40 hours a week without overtime pay. Because federal overtime protections were never indexed to inflation, “workers like me can be made to work unlimited hours – essentially for free,” Andrea writes. In the 1970s, 63 percent of salaried workers were entitled to time-and-a-half overtime pay. Today, only 15 percent of salaried workers are covered. As Andrea points out, New Jersey can fix this by guaranteeing overtime protections to workers who make up to 2.5 times the minimum wage. This would restore the overtime threshold to its historical standard and boost the take home pay of thousands of workers across the state. [NJ.com / Andrea Rodriguez]


$11

Increases in New Jersey’s minimum wage may help a popular public pool open on time later this summer. Graydon Pool, a swimming pond in Ridgewood, is considering limited hours or a delayed opening due to a lack of lifeguards. New Jersey’s new minimum wage, currently $11 an hour, could help lure new workers and keep the pool open. As NJPP has previously reported, raising the minimum wage benefits workers and their employers alike as higher pay makes it easier to attract and retain employees. [NorthJersey.com / Alexis Shanes]


No Strings Attached

Newark is poised to launch a universal basic income (UBI) pilot program later this year, where residents will receive a set amount of cash with no strings attached. A similar pilot is already underway in Stockton, California, where preliminary findings indicate participants were spending the new income on household necessities like food and utilities. “It’s a novel idea, but I don’t think people take it seriously,” said Newark Mayor Ras Baraka. “That’s why it’s important for us to do these pilots, and show people the seriousness of this.” [Politico / Katherine Landergan]


115

During the last week of January, 115 New Jersey residents were detained by federal Immigration and Customs Enforcement (ICE), representing one of the largest ICE sweeps in the state under the Trump administration. Johanna Calle, director of the Alliance for Immigrant Justice, criticized the arrests as an attack on immigrant communities, stating that “ICE is spreading misinformation, fueling anti-immigrant stereotypes, and failing to show how deporting individuals without a fair trial is helping New Jersey.” [NorthJersey.com / Anthony Zurita and Monsy Alvarado]


ICYMI

Olugbenga Ajilore will be the keynote speaker at NJPP’s annual policy conference, Progress 2020! Gbgenga, a senior economist at the Center for American Progress, epitomizes the theme of this year’s conference, Policy for the People, and is a leading voice on closing the racial wealth gap. You can get to know Gbenga and purchase your tickets for Progress 2020 with this link. [NJPP / Brandon McKoy] 


Have a fact or figure for us? Tweet it to @NJPolicy.