Friday Facts and Figures: January 24, 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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687

This past legislative session was among the most productive in New Jersey history. Governor Murphy signed more bills into law over the last two years, 687, than any governor since 1985. Some major legislation includes raising the minimum wage to $15 an hour, enacting paid sick leave, and establishing a state-based health care exchange. In the last year, Governor Murphy signed 518 bills, including 144 this Tuesday alone. [New Jersey 101.5 / Michael Symons]


First

One major bill signed into law on Tuesday guarantees severance pay for workers after mass layoffs. New Jersey is the first state in the nation to enact such a law, which was prompted by the recent closure of Toys R Us. In the event of mass layoffs or a plant closure, the new law requires businesses with 100 or more full-time employees pay their workers one week of severance pay for every year they were employed by the company. The law also requires that companies give their workers 90 days notice of mass layoffs before they happen. [NPR / Vanessa Romo]


2.5 Times

Millions of workers across the country, including hundreds of thousands in New Jersey, are working overtime and not getting paid for it. Why? Because the right to overtime pay has eroded over the last 70 years as the pay threshold was never raised to keep up with inflation. Fortunately, the Murphy administration can fix that. Raising the threshold to 2.5 times the minimum wage — $78,000 by 2024 — would restore the standard that existed from the 1940s through the 1970s and boost overtime protections for 287,000 workers. [NJPP / Nicole Rodriguez]


$100 Million

Despite mounting evidence that movie production incentives are not worth their high cost, New Jersey has expanded its film tax credit program budget from $75 million to $100 million per year. The program was also extended for five years through mid-2028. This runs counter to a growing national trend where states are scaling back the use of film tax credits; since 2009, 13 states have ended their film incentive programs. As NJPP Senior Policy Analyst Sheila Reynertson notes in this article, “The high price of these tax breaks, combined with the short-term nature of the jobs they bring, make film tax credits a poor use of state resources.” [NJ Spotlight / John Reitmeyer]


47

This week marks the 47th anniversary of Roe v. Wade, the landmark Supreme Court decision that struck down statewide bans on abortion. While the decision created a constitutional right to abortion care, it also left far too many people behind, as access remains out of reach for those without sufficient economic resources. New Jersey can help break down these barriers by ensuring everyone has access to reproductive health services, regardless who they are or where they come from. [NJPP / Sheila Reynertson]


ICYMI

NJPP just got a little bigger and a lot brighter with the election of two new board members: Sarah Lechner and John Butler. Welcome to the NJPP team, Sarah and John! [NJPP] 


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Friday Facts and Figures: January 17, 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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“Getting to Yes”

New Jersey’s corporate tax subsidy programs prioritized special interests and failed to maximize economic benefits to the state, according to a new report by the governor’s task force on tax incentives. The report details systemic issues with the Economic Development Authority’s (EDA) administration of subsidy programs, as the EDA fostered a culture of “getting to yes” with tax break applications. In some instances, subsidy underwriters were warned against and criticized for asking “too many questions.” Another big finding: the “phantom tax” provisions in the Grow NJ program were drafted for the specific benefit of one company: Holtec International. [NorthJersey.com / Ashley Balcerzak]


$20 Million

The task force report wasn’t the only big EDA story this week. On Monday, news broke that Home Depot will open a new distribution center in New Jersey despite having its tax subsidy application rejected. Why is this newsworthy? Because the company’s CEO signed a statement saying that $20 million in tax breaks were necessary for the company to build a new facility in the Garden State. When the EDA called their bluff and denied their application, Home Depot decided to build here anyway. This should serve as further proof that New Jersey has a competitive business climate independent of corporate tax breaks. [Politico NJ / Katherine Landergan]


Cut in Half

A new report on the Affordable Care Act (ACA) finds that the landmark health care law advanced racial equity in health coverage, both nationally and here in New Jersey. By 2018, the state’s uninsurance rate for Latinx residents dropped from 40 percent to 25 percent. For Black residents, the uninsurance rate was cut in half, from over 20 percent in 2013 to less than 11 percent in 2018. According to the report’s authors, new health care reforms in New Jersey — such as establishing a state-based exchange and codifying ACA protections — could help continue equity gains into the future. [NJ Spotlight / Lilo Stainton]


$121 Million

When Governor Murphy signed the state budget last July, he placed $235 million in expenditures in a “lock box,” only to be appropriated once the state was confident it had enough revenue. Now, the state Treasury will release the remaining $121 million in frozen funds, indicating strong revenue collections through the first half of the fiscal year. This is welcome news, as these funds will now be invested in state colleges and universities, municipal aid, reentry programs, the Civic Info Consortium, and much more — all without having to dip into the state’s surplus or Rainy Day Fund. [Burlington County Times / David Levinsky]


14,000

The number of New Jersey school children who are unvaccinated is on the rise, due in no small part to religious exemptions in the the state’s immunization law. Between 2013 and 2019, the number of New Jersey children with religious exemptions increased from 9,000 to 14,000, representing 2.6 percent of all students. A bill to close the religious exemption loophole was thwarted earlier this week by “angry parents and the mobilization of national anti-vaccine celebrities.” Read this explainer by The New York Times and make sure to call your lawmakers so science and basic public health principles prevail. [The New York Times / Tracey Tully, Sharon Otterman, and Jan Hoffman]


ICYMI

The NJPP team broke down Governor Murphy’s second State of the State address in this Rapid Reaction recap. Click through for highlights from the speech, what we liked, what was missing, and plenty of gifs! [NJPP / Louis Di Paolo et al.] 


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Friday Facts and Figures: January 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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$30 Billion

A new study co-authored by Princeton University economist Owen Zidar finds no strong evidence that corporate tax subsidies actually work. According to the paper, state and local governments across the country award $30 billion in corporate tax breaks every year — and the benefits are hard to find. Corporations receiving subsidies create a very small number of jobs relative to the tax breaks they receive, and even when jobs are created there is no evidence they go to local residents who need them. Further, Zidar concludes that corporate tax incentives do not increase broader economic growth for the region. [The Outline / Noah Kulwin]


$85 Million

In 2018, New Jersey lawmakers revived the state’s film production tax credit program with an $85 million annual cap. Now, some lawmakers and the governor want to expand the program and its budget. The problem? Like corporate tax subsidies, there is little evidence that tax breaks for film production are worth the investment. A 2019 study of 30 states’ use of film tax breaks show “no statistically significant effects” on the broader economy due to their high price tag and the short-term nature of film production jobs. According to TalkPoverty’s Pat Garofalo, “You could just set the money on fire and have the same outcome.” [NorthJersey.com / Dustin Racioppi and Ashley Balcerzak]


Billions

On Thursday, the New Jersey Senate passed a package of bills to codify core provisions of the Affordable Care Act (ACA) in state law. These bills will ensure key protections of the ACA — such as prohibiting insurers from denying coverage for preexisting conditions, requiring essential benefits, providing free preventive services, and allowing parents to keep their dependents on their plan until age 26 — will remain in place should a federal court strike down the landmark law. The threat of an ACA repeal still looms large, however, as the state could lose billions in federal funding for Medicaid expansion and keeping insurance premiums affordable in the individual market. [NJPP / Raymond Castro]


$1

Raising the minimum wage not only benefits the wages of low-paid workers, but also their mental health. According to a new study, raising the minimum wage by $1 or more appears to reduce the suicide rate, especially when the unemployment rate is high and it’s difficult to find a job. From the article: “Between 1990 and 2015, raising the minimum wage by $1 in each sate might have saved more than 27,000 lives. An increase of $2 in each state’s minimum wage could have prevented more than 57,000 suicides.” [NPR / Graison Dangor]


69 Percent

A majority of asylum claims — 69 percent — were denied in 2019, a drastic increase from 45 percent in the early 2010s. This is a direct result of the Trump administration strictly limiting the grounds on which immigration judges can grant asylum. In 2018, then-Attorney General Jeff Sessions restricted the legal basis for asylum for Central American women and children fleeing from violence. [Syracuse University / Transactional Records Access Clearinghouse]


ICYMI

In a new editorial, the Philadelphia Inquirer has called on state lawmakers to rein in New Jersey’s costly and ineffective corporate tax subsidies. The piece links to NJPP’s latest report on corporate tax incentives and calls hard caps a sensible step, though well short of a solution. From the editorial: “It’s especially galling that the insatiable appetite to offer incentives persists despite abundant evidence the enticements don’t work well, or are unnecessary.” We couldn’t agree more. [The Philadelphia Inquirer / Editorial Board]


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Friday Facts and Figures: January 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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2020

New year, new laws! After a busy 2019, some major legislation will take effect this year, benefitting New Jersey residents of all ages and in every corner of the state. By the end of 2020, New Jersey will have restored voting rights for people on probation and parole, banned employers from asking job applicants about their previous salaries, established its own state-based health exchange, and much more. According to NJPP Health Policy Director Ray Castro, “state exchanges are much more effective in keeping premiums down and ensuring more adults and children are covered.” Read this breakdown from The Star-Ledger for a list of 13 new laws set to take effect in 2020. [NJ.com / Samantha Marcus]


$11.00

New Jersey’s minimum wage is on the rise! On January 1, the minimum wage increased from $10.00 an hour to $11.00, benefitting approximately 460,000 workers and their families. Of those who received an increase in take home pay, a majority are adults, women, and workers of color. According to an analysis by NJPP Research Director Nicole Rodriguez, the wage increase will add $480 million to the state’s economy as minimum wage workers have more money to spend in their communities. [NJPP / Nicole Rodriguez]


$9.5 Million

On Thursday, Governor Murphy restored $9.5 million in funding to women’s health clinics in response to an anti-abortion gag rule enacted by the Trump administration in 2019. The federal rule bans agencies receiving Title X funds — which are meant to provide reproductive health care to people with low incomes — from advising patients about abortion. Without these funds, organizations like Planned Parenthood have had to dip into emergency reserves to provide care for more than 70,000 clients across the state. [NJTV News / Brenda Flanagan]


10.5 Percent

On January 1, New Jersey’s top-end corporate business tax rate decreased from 11.5 percent to 10.5 percent, which should reduce state revenues the same year the state is slated to make its biggest-ever pension payment. Without new, sustainable sources of revenue, it will be difficult for state lawmakers to pass a balanced budget without making cuts to public programs and infrastructure that ordinary New Jersey residents rely on. To ensure the state continues to meet its obligations, lawmakers should consider bringing back the estate tax on wealthy heirs, restoring the sales tax to 7 percent, and finally passing the millionaires tax. [NJ Spotlight / John Reitmeyer]


$450 Billion

As the economy operates at near full capacity, federal revenue continues to lag as a result of the 2017 Trump tax cuts. According to Jared Bernstein of the Center on Budget and Policy Priorities, the tax cuts are responsible for $450 billion in foregone annual revenue, mostly benefitting the nation’s wealthiest individuals and corporations. This serves as further proof that trickle-down economic policies do not work — at least not for the overwhelming majority of residents — and that millionaires in New Jersey can afford to pay at least a little more in state income taxes. [Washington Post / Jared Bernstein]


ICYMI

NJPP Policy Analyst Erika Nava compiled everything you need to know about the Trump administration’s public charge rule change in this comprehensive blog post. Click through for answers to frequently asked questions on the issue. [NJPP / Erika Nava]


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Friday Facts and Figures: December 20, 2019

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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Programming note: Friday Facts and Figures will be off next week for the holidays. We’ll be back in your inbox in January. See you in 2020!


15th

It’s official — New Jersey is the 15th state in the nation to expand access to driver’s licenses to all residents, regardless of immigration status! Governor Murphy signed the historic bill into law on Thursday at a ceremony in Elizabeth (there’s a great photo from the bill signing of NJPP Policy Analyst Erika Nava and her son on the @NJPolicy Twitter page). As Erika said in a statement after the bill was signed, this policy, more than any other, “will immediately boost the mobility and economic opportunities of mixed-status families in every corner of the state.” [NJ.com / Sophie Nieto-Munoz]


737,418

Earlier this week, NJPP’s Erika Nava released a new analysis outlining the top six reasons to pass driver’s license expansion. The biggest one: it will benefit a large and diverse group of people, including the 737,418 New Jersey residents who will be able to legally drive for the first time. This number includes 444,000 immigrants without status, 288,000 low-paid residents, survivors of domestic violence, and over 5,400 residents who were formerly incarcerated and reentering society. The report also shows how this law will benefit everyone in the state through safer roads, stabilized insurance premiums, and stronger communities. [NJPP / Erika Nava]


2-1

By a 2-1 vote, the U.S. Court of Appeals for the Fifth Circuit in New Orleans ruled that the Affordable Care Act’s (ACA) individual mandate is unconstitutional. The appeals panel also sent the case back to a federal district judge to determine whether the rest of the ACA can survive without the individual mandate, threatening the health care of millions. If the ACA were repealed, 17 million people across the country could lose their coverage — including 800,000 in New Jersey — and more than 50 million people with pre-existing conditions could be denied insurance. [New York Times / Abby Goodnough]


17

Seventeen states did a better job than New Jersey at insuring young children under age six, according to a new report by the Georgetown University Health Policy Institute. This is an important health metric as this time period is critical for the brain and overall physical development of children. In New Jersey, far too many kids — 3.1 percent — do not have access to health coverage. State lawmakers could fix this by expanding NJ FamilyCare coverage and performing better-targeted outreach. [Georgetown University Health Policy Institute / Elizabeth Wright Burak, Maggie Clark, and Lauren Roygardner]


4

Governor Murphy has appointed four new members to the board of the state Economic Development Authority, including NJPP Board Chair Marcia Marley. At the announcement, Governor Murphy stated that his four picks know that “our future can’t rest on delivering huge payouts to the best connected among us while failing to deliver real results to so many in our communities.” We wholeheartedly agree. And congratulations, Marcia! [NJTV News / Michael Aron]


Fund the Facts!

You can help NJPP continue providing the research and analysis that fuels progressive policy change in the Garden State. Please consider making a special year end gift to fund the facts! [NJPP / Fund the Facts]


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Friday Facts and Figures: December 13, 2019

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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466,000

New Jersey is poised to become the next state to allow all residents — regardless of immigration status — to legally drive. Earlier this week, a bill to expand access to driver’s licenses cleared both Senate and Assembly committees; a full vote in both chambers is scheduled for Monday. Already law in 14 other states, Washington D.C. and Puerto Rico, driver’s license expansion would make roads safer for all as more drivers would become trained, tested, and insured. According to NJPP’s Erika Nava, there are 466,000 undocumented immigrants of driving age who would directly benefit from the proposal. [NJ.com / Matt Arco]


82 Percent

Earlier this week, the House Ways and Means Committee advanced a new proposal to temporarily repeal the $10,000 cap on state and local tax (SALT) deductions. If enacted, this change to the tax code would primarily benefit the wealthiest households in the nation — and few middle-income households would benefit. According to the Center on Budget and Policy Priorities, the top 5 percent of households (those earning at least $319,000 per year) would receive 82 percent of the benefit, while the bottom 80 percent of households would receive just 4 percent. [Center on Budget and Policy Priorities / Chuck Marr, Kathleen Bryant, and Michael Leachman]


$460 Million

On Thursday, a special legislative committee identified one major barrier to NJ Transit’s success: the lack of a sustainable source of funding. To balance its budgets, NJ Transit has transferred funding from its capital budget — including $460 million this year alone — to its operating budget. This means less money to invest in rail expansion and the purchase of new trains and buses. New Jersey could properly fund NJ Transit if it raised more revenue by implementing a millionaires tax, restoring the estate tax, and bringing the sales tax back to 7 percent. [NJ.com / Larry Higgs]


3.1 Feet

New Jersey is “ground zero” for sea level rise, according to a new report released by the state Department of Environmental Protection (DEP) and Rutgers University. The report estimates that the state could experience a sea level rise of 3.1 feet by 2070 if greenhouse gas emissions remain constant, and more than 3,000 New Jersey homes are located in areas at risk of flooding annually. Sea level is rising in New Jersey more than in other parts of the world due to warming global temperature, melting polar ice sheets, and a sinking tectonic plate under the mid-Atlantic region. The time to act is now. [Asbury Park Press / Amanda Oglesby]


Expungement

New Jersey is one step away from passing major expungement reform, with a full vote in the Senate and Assembly both scheduled for Monday. The proposal would make it easier for people to clear their records of minor drug offenses by creating an e-filing expungement system, eliminating application fees, creating a “clean slate” process to automatically seal minor offenses after ten years, and allowing immediate expungement for past offenses involving small amounts of marijuana. “[T]his is a necessary step to begin to address the inequities and racial disparities that have characterized marijuana prohibition,” said Sarah Fajardo, Policy Director at ACLU-NJ. [NJ Spotlight / Colleen O’Dea]


ICYMI

NJPP’s Erika Nava makes the case for driver’s license expansion in an op-ed for the Star-Ledger, calling on New Jersey to join the fourteen other states that have passed similar policies. “Every state that has expanded access to licenses has felt the positive effects,” writes Nava. Those benefits include: safer roads, stronger communities, stabilized auto insurance premiums, and more revenue for the state. [NJ.com / Erika Nava]


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Friday Facts and Figures: December 6, 2019

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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7 Percent

Last week, Governor Murphy reiterated his support for restoring the sales tax to 7 percent to increase funding for public schools, mass transit, and higher education. For context, the state sales tax was cut to 6.625 percent in 2016 as part of a deal between former Governor Christie and the legislature to raise the gas tax. Governor Murphy has called the tax cut a “gimmick,” as it provides negligible savings to low- and middle-income families. NJPP’s research supports that claim. As NJPP’s Sheila Reynertson explains to NJ Spotlight, “Instead, [the tax cut] primarily benefits the wealthiest residents … who have the most disposable income to spend, and robs the state of over $600 million in revenue that could be invested in areas proven to grow the economy.” [NJ Spotlight / John Reitmeyer]


Consensus

A proposal advancing through the legislature would modify how the state estimates revenue during budget season. The bill would create a new joint advisory board — comprised of the State Treasurer, Legislative Budget and Finance Officer, and an agreed upon member of the public — to forecast how much revenue the state expects to collect in the following year. This differs from the current approach where the executive and legislative branches offer competing forecasts; however, the proposal still allows the executive branch to ultimately certify the state’s revenue projections. National budget experts, including the Center on Budget and Policy Priorities, recommend consensus revenue forecasting as a way to depoliticize the budget process. [NJ.com / Samantha Marcus]


12,000

The Trump administration has announced a new rule that will cut off basic food assistance for nearly 700,000 people across the country, including 12,000 in New Jersey. Specifically, the new rule would restrict states’ flexibility to help unemployed adults who may not qualify for the federal Supplemental Nutritional Assistance Program (SNAP) due to strict work requirements. According to NJPP’s Ray Castro, the rule would only affect the “poorest of the poor” and “hunger will likely increase” if the rule is implemented. Fortunately, New Jersey’s Rep. Jeff Van Drew has said he will seek to overturn the change under the Congressional Review Act. [NJ.com / Jonathan Salant]


$700 Million

Workers will lose more than $700 million annually under a new rule proposed by the Trump administration. Unveiled in October, the proposal would do away with the 80/20 rule, a critical protection for tipped workers. This requires workers be paid at least the full minimum wage if more than 20 percent of their labor is performed on non-tipped duties. Getting rid of this protection will allow employers to legally exploit their workers by paying them the tipped minimum wage for work where the full minimum wage should apply. The Economic Policy Institute sums it up neatly, saying the change “will transfer large amounts of money from workers to their employers.” [Economic Policy Institute / Heidi Shierholz and David Cooper]


3.4 Million

Horizon Blue Cross Blue Shield is New Jersey’s largest health insurer, providing coverage to 3.4 million residents across the state. A new proposal would change the insurer’s corporate structure from non-profit to a not-for-profit mutual. NJPP has joined health and consumer advocacy groups in calling for the process to slow down so an independent analysis can be conducted. “The smallest change to Horizon’s structure could have a tremendous impact on the health care of millions of New Jersey families, as well as the broader health insurance market,” explains NJPP’s Ray Castro. “This proposal is far too broad and complex to be fast-tracked without a serious vetting process.” [NJ Spotlight / Lilo Stainton]


ICYMI

The Star-Ledger’s editorial board has endorsed driver’s license expansion! From the editorial: “This is not about charity for the undocumented, though it will make their lives a little easier. It is really about the self-interest of the rest of us. Bringing the undocumented out of the shadows will save us all money, and make our roads safer.” [NJ.com / Editorial Board]


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Friday Facts and Figures: November 29, 2019

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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The People’s House

Last Friday, NJPP joined advocates from across the political spectrum to denounce anti-democratic practices at the State House. In an open letter to legislative leadership, more than a dozen organizations outlined how the public is increasingly shut out of the legislative process through limited access to the State House and committee hearings. As Jesse Burns of the League of Women Voters of New Jersey summed it up, “Members of our legislature are representatives accountable to the public. They are guests in the people’s house — not the other way around.” [WHYY / Joe Hernandez]


Best Practices

In a new report, NJPP Senior Policy Analyst Sheila Reynertson compares the legislature’s corporate subsidy extension bill with Governor Murphy’s proposed reforms. Only one plan — Governor Murphy’s — follows national best practices by instituting a hard cap on dollar-per-job awards, shorter award timeframes, and recurring evaluations of subsidies. Both plans, however, continue to overemphasize large-scale tax breaks to mega-projects rather than cultivating small- and medium-sized businesses. Read the full report for a thorough breakdown and easy to read comparison infographic. [NJPP / Sheila Reynertson]


$50 Billion

State and local governments spend a collective $50 billion per year on corporate tax breaks, according to economist and economic development policy expert Tim Bartik. These investments are often a waste of taxpayer money, as empirical evidence suggests that at least 75 percent of the time, the same jobs would have been located in the state and local economy anyway. Read this Q&A between CityLab’s Richard Florida and Tim Bartik for more info on the high cost of corporate tax breaks and how lawmakers can better evaluate corporate subsidy awards. [CityLab / Richard Florida]


80,000

Approximately 80,000 residents will be added back to the voter rolls under a bill passed by the Assembly on Monday, as New Jersey is on track to become the 17th state to extend the right to vote to people on probation and parole. This is a big win for social justice advocates, as New Jersey’s prisons are the most segregated in the nation and Black residents are disproportionately barred from voting. Ryan Haygood, President and CEO of the New Jersey Institute for Social Justice, describes the current state of disenfranchisement as, “an insidious form of voter suppression that creates voiceless ghosts of democracy.” [NJ Spotlight / Colleen O’Dea]


No-Brainer

The legislature is set to vote on driver’s license expansion next month, according to a spokesperson for Senate President Stephen Sweeney. The proposal, characterized as a “no-brainer” by bill sponsor Assemblyman Raj Mukherji, would allow all residents the ability to apply for a driver’s license, regardless of their immigration status. Similar laws exist in 14 other states and have been shown to promote public safety and stabilize insurance premiums. NJPP estimates that 338,000 residents will obtain a driver’s license during the first three years of implementation. [NorthJersey.com / Monsy Alvarado and Dustin Racioppi]


ICYMI

Thanksgiving is not only a time to gather with family and friends, but an opportunity to acknowledge and reflect on the colonial history of our nation. As historian David Silverman explains in this op-ed, “If Americans continue to insist on associating Thanksgiving with Pilgrims and Indians, the least we can do is try to get the story straight.” [New York Times / David Silverman]


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Friday Facts and Figures: November 22, 2019

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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Join the NJPP Team!

NJPP is looking for a new policy analyst to help us research the financial and social costs of drug prohibition in New Jersey. We are looking for someone with strong quantitative and qualitative skills to both dig through data and ensure the perspectives of individuals with lived experiences are fully included. This is a part-time, fixed-term position. Is this a good fit for you or someone you know? Apply here! [NJPP / Job Opportunity]


$650 Million

New Jersey is seeking approximately $650 million from Uber Technologies Inc. for unpaid unemployment and disability insurance taxes over the last four years. According to the state Department of Labor, the rideshare company has been misclassifying its drivers as independent contractors to avoid taxes and providing workers with certain benefits. Lawmakers are also considering new legislation to expand the definition of “employee” to prevent future misclassification and boost protections and compensation for workers in the gig economy. [NJ Spotlight / John Reitmeyer]


Up in Smoke

New Jersey will not be legalizing recreational marijuana, at least not during this year’s lame duck session, as a last-ditch attempt to pass a bill through the legislature went up in smoke earlier this week. Instead, lawmakers plan on putting the proposal on the ballot for voters to decide next November. In the meantime, legislative leaders are working with Governor Murphy to expunge criminal records on past marijuana charges. Some lawmakers are also considering decriminalization as a short-term solution until cannabis is fully legalized. [NJ.com / Matt Arco and Amanda Hoover]


Negligible

A new analysis by economist Arindrajit Dube finds that increases in the minimum wage benefit workers through higher pay without much downside. Specifically, his comprehensive review of decades worth of minimum wage research finds that the effect on employment is very close to zero, meaning the number of jobs cost by minimum wage laws is negligible. This study further disproves the age-old assumption that increases in the minimum wage result in widespread job loss. [Vox / Dylan Matthews]


41 Percent

A substantial portion of wealthy households’ income escapes taxation or qualifies for special tax breaks, according to a new report by the Center on Budget and Policy Priorities (CBPP). For working and middle class families, more than 80 percent of household income comes from labor. Meanwhile, for the top 1 percent of households, capital income — most of which enjoys a lower tax rate — makes up 41 percent of taxable income, and pass-through business profits account for 25 percent of taxable income. The CBPP analysis recommends state and federal governments reconsider how the tax code treats the most well-off to push back against rising inequality. [Center on Budget and Policy Priorities / Chuck Marr, Samantha Jacoby, and Kathleen Bryant]


ICYMI

Congratulations to NJPP President Brandon McKoy for being featured in Insider NJ’s Insider 100 Power List! Insider NJ describes Brandon as “the face — and mind — of the young progressive generation.” [Insider NJ / Insider 100 Power]


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

Friday Facts and Figures: November 15, 2019

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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Irresponsible

New Jersey’s minimum wage will continue to rise! A proposal to roll back the $15 minimum wage was pulled from Thursday’s Senate Labor Committee agenda after pushback from NJPP, progressive advocates, and members of Congress. Rep. Donald Norcross (NJ-1) sent a letter to the legislature on Tuesday morning deriding the bill as “irresponsible” and “illogical.” On Wednesday morning, Senator Bernie Sanders urged state lawmakers to “stand on the side of workers and their families.” As NJPP President Brandon McKoy told The Intercept, “we can’t be entertaining a process that would possibly further delay increases.” [The Intercept / Akela Lacy]


400,000

The Earned Income Tax Credit (EITC) has proven effective at lifting low-paid workers and their families out of poverty, but many young adults entering the workforce are left behind due to strict eligibility requirements. In a new report, NJPP’s 2019 Crotty Fellow Vineeta Kapahi outlines three ways state lawmakers can expand and strengthen the EITC, benefitting over 400,000 workers. The report, released yesterday at the State House, coincided with the introduction of new legislation by Senator Joe Lagana and Assemblywoman Verlina Reynolds-Jackson to allow anyone who is 18 or older to qualify for the EITC and to boost the credit to 50% of the federal benefit. [NJPP / Vineeta Kapahi]


Vulnerable

Just as New Jersey was unprepared for the Great Recession, the state remains vulnerable to a future economic downturn. According to a new report by graduate students at the Rutgers University Bloustein School of Planning and Public Policy, budgetary decisions made before a recession play a big role in how a state reacts to and recovers from it. Unfortunately for New Jersey, the state is making the same mistakes it made before 2007, namely by using non-recurring revenue for recurring expenses, skipping pension payments, and not investing enough in the Rainy Day Fund. Report advisor and emeritus professor Cliff Zukin, Ph.D, sums it up here: “New Jersey is as prepared for the next economic downturn as a skydiver without a parachute.” [ROI NJ / Emily Bader]


17,000

Earlier this week, the U.S. Supreme Court heard oral arguments on the Trump administration’s attempt to terminate the Deferred Action for Childhood Arrivals (DACA) program. Without DACA protections, 17,000 New Jersey residents are at risk of deportation. This would do irreparable harm to New Jersey’s communities and local economies, as NJPP’s Erika Nava outlines in this blog post. [NJPP / Erika Nava]


$600 Billion

Senators Bernie Sanders and Cory Booker have a new bill to rein in prescription drug prices, a leading driver of increasing healthcare costs. Based on a Canadian model, the new legislation would create an independent organization to monitor drug price increases and establish the list price for new medications. Without legislation like this, total U.S. spending on prescription drugs is expected to top $600 billion in 2020. [NJ Spotlight / Lilo Stainton]


Save the Date!

NJPP’s annual policy conference, Progress 2020, will take place on Friday, April 24, 2020. Keep an eye out for ticket and sponsorship info in the next few weeks. In the meantime, use this link to suggest a breakout panel and potential speakers. We look forward to reading your suggestions! [NJPP / Progress 2020]


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