Friday Facts and Figures: November 8, 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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At Least 1 Year

On Thursday, the Senate Labor Committee will consider a bill that would all but guarantee the suspension of New Jersey’s $15 minimum wage. The proposal, S3607, would pause the phase in of the minimum wage for at least one year if broad and arbitrary metrics are hit: any increase in unemployment and any annual drop in sales tax receipts. NJPP President Brandon McKoy had this to say about the bill: “With income inequality at an all time high, this bill moves New Jersey in the wrong direction and rolls back one of the most consequential, pro-worker policies in state history less than a year after it was signed into law.” [NJPP / Brandon McKoy]


Thriving

New York City’s restaurant industry is thriving, further proving that a $15 minimum wage helps workers and businesses alike. Restaurant revenue and employment are up, as low-paid workers have more money to eat out and restaurants do not have to raise prices much to pay higher wages. According to Nicole Hallett, employment law professor at the University at Buffalo, “a pay increase for low-wage workers doesn’t have to be a zero sum game. In fact, evidence suggests that everyone can win.” [Business Insider / Nicole Hallett]


Two Thirds

Even with a higher minimum wage, unpredictable work schedules disrupt the work-life balance of far too many workers in New Jersey. Employers in low-paid sectors, like food service and retail, increasingly use software to “microadjust” workers’ schedules based on things like customer traffic, sales, and the weather. This results in workers getting called in for shifts with little to no notice, with some even being told to go home once they get to work due to a new microadjustment. A recent study by the University of California found that workers of color, particularly women, are much more likely to be assigned irregular work schedules, and that two thirds of service workers get less than two weeks’ notice of when they have to work. [Politico NJ / Katherine Landergan]


400,000

Approximately 400,000 immigrants from El Salvador, Honduras, and Haiti are under threat of deportation if the Trump administration succeeds in ending their Temporary Protective Status (TPS) protections. The Trump administration wanted to end TPS protections for these refugees in time for the 2020 election, according to a new Senate Foreign Relations Committee report commissioned by Senator Bob Menendez. The report includes internal State Department documents showing that senior State Department officials and career diplomats repeatedly warned the administration that ending TPS protections would put national security, foreign relations, and American-born children at risk. [NJ.com / Jonathan D. Salant]


19,000

New research finds that Medicaid expansion has saved the lives of at least 19,00 adults aged 55 to 64 between 2014 and 2017. Over the same four year period, 15,600 adults died prematurely in states that decided not to expand Medicaid. The authors of the study note that even this research may undercount the full effects of Medicaid expansion, as prolonged exposure to Medicaid results in increasing health improvements. Regardless, the findings make it clear that increased access to health care saves lives. [Center on Budget and Policy Priorities / Matt Broaddus and Aviva Aron-Dine]


ICYMI

Hundreds of people rallied outside the State House on Thursday as advocates renewed their push for driver’s license expansion. Allowing all residents—regardless of immigration status—the ability to get a driver’s license would result in a stronger economy and safer roads as more drivers are trained, tested, and insured. This is a policy proposal to keep an eye on in this year’s lame duck session. [WHYY / Joe Hernandez]


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Friday Facts and Figures: November 1, 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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Today

Heads up, New Jersey! The open enrollment period for health insurance starts today and runs through December 15. Unlike years past, the state will take the lead in enrollment education and assistance as New Jersey moves toward creating its own health exchange. At a press conference earlier this week, Governor Murphy announced $1.1 million in new funding for Navigator grants on top of the $1.5 million previously allocated for the state’s Get Covered NJ awareness campaign. The governor also announced $500,000 in funding for community organizations to boost enrollment efforts. [NJTV News / Joanna Gagis]


2,621

Targeted enrollment outreach is critical for New Jersey given the Trump administration’s ongoing efforts to sabotage the Affordable Care Act and instill fear in immigrant communities. According to a new NJPP report, thousands of legal immigrants and citizens in mixed status households are dropping out of or not applying for public health coverage likely due to federal policies—namely the public charge rule change—that penalize immigrants. From 2017 to 2018, the number of uninsured Hispanic and Asian children in New Jersey increased by 2,621, while the number of uninsured White and Black children decreased over the same time period. [NJ 101.5 / Michael Symons]


800,000

More than 800,000 New Jersey residents are now eligible for family planning services—without paying out of pocket—thanks to the state’s new Medicaid expansion. Under the Plan First benefit, which is based on legislation signed by the Governor in February 2018, residents who make between $17,240 and $25,605 per year will have access to birth control, pregnancy tests, screenings for HIV and other sexually transmitted diseases, and counseling sessions related to reproductive planning. According to the state Department of Human Services, the services will cost $17.8 million, where all but $1.8 million will come from the federal government. [NJ Spotlight / Lilo Stainton]


$2,278

State funding for public colleges and universities still lags behind pre-recession levels. According to a new report by the Center on Budget and Policy Priorities, New Jersey lawmakers spent 22.6 percent—or $2,278—less per student between 2008 and 2018, far outpacing the national average decline. Students who already face the greatest racial and economic barriers to higher education are particularly at risk of being harmed by rising tuition and fees; for Black and Latinx households, the net price of attendance at a public four-year college accounted for 32 percent and 29 percent of household income, respectively. [NJPP / Brandon McKoy]


17

Seventeen of New Jersey’s 21 counties touch some portion of the state’s coastline and, as a result, are at serious risk of being harmed by climate change and rising sea levels. These same counties are home to approximately 80 percent of the state’s 9 million residents and are responsible for more than $400 billion in annual economic activity. Click the link for a captivating, interactive report on the new risks of sea-level rise and hurricane activity in the Garden State (spoiler: the risks associated with climate change extend beyond the coasts and carry significant economic costs). [New Jersey’s Rising Coastal Risk / The Rhodium Group]


ICYMI

Tim Sullivan, CEO of the state Economic Development Authority (EDA), makes the case for hard caps on corporate subsidies in a new op-ed in ROI NJ. Sullivan rightly points out that caps are not a new or radical idea. Numerous other states—including New York, Connecticut, and Pennsylvania—have caps on their economic development programs, and New Jersey caps many of its tax credit programs. Even Grow New Jersey and the Economic Redevelopment & Growth program were both capped prior to 2013. [ROI NJ / Tim Sullivan]


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Friday Facts and Figures: October 25, 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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$1 Billion

It’s finally happening! The American Dream Mall—which broke ground in 2004—is set to open today in the Meadowlands. State and local governments have committed more than $1 billion in taxpayer funds to prop up the mega-mall in the form of tax subsidies, abatements, and public transit upgrades. Specifically, the state Economic Development Authority approved up to $390 million in subsidies, the state’s Local Finance Board approved up to $800 million in tax incentives, and NJ Transit built a new rail link to the Meadowlands for $185 million. All of this for a mall in the middle of a swamp. [NJ.com / Kelly Heyboer]


842,000

Hundreds of thousands of salaried New Jersey workers do not have overtime protections and are at risk of being exploited by their employers. Why? The federal overtime threshold has eroded over the last forty years as it was rarely updated nor indexed to the cost of living. If New Jersey enacts its own overtime threshold at 2.5 times the minimum wage, 842,000 workers would benefit from stronger overtime protections, including 315,000 workers who would gain the right to time-and-a-half pay for the first time. Read all about it in Nicole Rodriguez’s first report for NJPP! [NJPP / Nicole Rodriguez]


-2.3 Percent

New Jersey is one of just nine states—and the only state in the northeast—where real tax revenue collections have yet to recover from the Great Recession. Due to a series of tax cuts under the previous administration, New Jersey brings in 2.3 percent less revenue now than it did at its peak over ten years ago. This is further proof the state has a revenue problem, not a spending problem. [The PEW Charitable Trusts / Barb Rosewicz, Justin Theal, and Joe Fleming]


45,000

Know someone looking for a job? The U.S. Census Bureau is looking for 45,000 temporary workers in New Jersey to conduct the 2020 census. Recruitment is in high gear as the bureau seeks to fill 65,000 positions in total. Pay varies by location, with the federal government offering as much as $22 per hour for help in getting an accurate count. Share far and wide! [NJTV News / Brenda Flanagan]


2 Percent

Customized job training has a return on investment that is ten times higher than conventional tax incentives, according to a new report by the Brookings Institute. However, job training represents a mere 2 percent of the country’s $50 billion in economic development subsidies. That is not a recipe for success. The report recommends that states emphasize skill development in economic development programs, namely through job training grants and partnerships with community colleges. [Brookings Institute / Joseph Parilla and Sifan Lu]


Required Reading:

A new study published by the National Bureau of Economic Research finds that estate taxes are an effective tool for bringing in state revenue. While wealthy households may try to avoid paying the tax, history shows that estate taxes bring in more than enough revenue to make up for the few families that move. With wealth inequality at an all time high and New Jersey not bringing in enough revenue, state lawmakers should seriously consider bringing back the estate tax. [The New York Times / Eduardo Porter]


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Friday Facts and Figures: October 18, 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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$2.4 Million

Track Changes in a Microsoft Word Document helped uncover more fraud in New Jersey’s corporate tax subsidy programs. How? Rainforest Distribution Corporation secured a $2.4 million subsidy, in part, because the company backdated a letter in their tax break application. The letter suggested Rainforest was considering moving to Orangeburg, New York in addition to Bayonne, even though the company had no intention of doing so. CBRE, a real estate and relocation firm, advised Rainforest to include the alternate site in its certified application and told a Rainforest executive to visit the Orangeburg site, “in case we are asked.”  [NJ.com / Ted Sherman]


$114 Million

Earlier this week, Governor Murphy announced he will release $114 million in state spending for municipal aid, colleges, and reentry programming. The funds were included in this year’s budget, but placed in a “lock box” by the governor until the state brought in enough revenue to pay for the investments. Without new, sustainable sources of revenue — like the millionaires tax — New Jersey will continue to struggle paying for its existing obligations. [NJ.com / Samantha Marcus]


17 Percent

“Just-in-time” scheduling is becoming the norm for low-paid food-service and retail employees, who make up 17 percent of the nation’s workforce. Under this scheduling system, workers are given little notice of what hours they are expected to come in, and shifts can be canceled day-of. This results in low-paid workers being on-call, without pay, whenever their employer is open. Fortunately, a new coalition — Fair Work Week NJ — has emerged to push back against this practice with fair scheduling legislation. [NJTV News / Michael Aron]


$11

Here’s some good news for New Jersey’s low-paid workforce: the state minimum wage will increase to $11 an hour on January 1, 2020. The increase was already scheduled under the $15 minimum wage legislation signed by Governor Murphy earlier this year. The new law will raise the statewide minimum wage to $15 an hour — for most workers — by 2024, after which it will be indexed to inflation. [NJ Spotlight / John Reitmeyer]


31 Percent

As we’ve previously mentioned in Friday Facts and Figures, New Jersey’s funding for higher education has yet to surpass pre-Recession levels. According to a new report by The PEW Charitable Trusts, this mirrors a national trend, as total state spending on higher education fell by 31 percent from 2000 to 2015. Federal spending on higher education, meanwhile, has increased by 24 percent, but these funds go mainly to individual students and specific research projects — not general operations or infrastructure. This leaves students paying more in tuition and taking on more student loan debt. See “Figure 4” in the linked report to see the convergence of state and federal funding for higher education. [The PEW Charitable Trusts / Anne Stauffer, Phillip Oliff, et al.]


Required Reading:

When national economic development experts testified to the legislature last month, they were unified in their recommendations to rein in and reform the state’s corporate subsidy programs. If you left the hearing wanting more information on tax incentives — whether they work, what role they play in relocation decisions, national best practices — you’re in luck! Economist Tim Bartik just released a new book, Making Sense of Incentives: Taming Business Incentives to Promote Prosperity,​ and it’s available for free (or purchase) using this link. [W.E. Upjohn Institute / Tim Bartik]


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Friday Facts and Figures: October 11, 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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$2.9 Million

The wrestling may be fake, but the cost to taxpayers is very real. Earlier this week, the state Economic Development Authority (EDA) awarded $2.9 million in film tax credits for WrestleMania XXXV, which took place at MetLife Stadium in April. As Pat Garofalo states: “Subsidizing a one-off entertainment event is one of the worst possible uses of taxpayer dollars. It creates no permanent jobs, no sustained economic growth, and doesn’t build a foundation under any industry.” New Jersey is doubling down on film tax credits as they lose their star power across the nation. In the last decade, thirteen states have eliminated their film incentive programs, while other states have scaled theirs back. [Boondoggle / Pat Garofalo]


Lowest

Wealth inequality is on the rise, and the US tax code is a big reason why. For the first time in recorded US history, the wealthiest 400 households are paying the lowest combined tax rate — 23 percent — of any income group. This is a fraction of the 70 percent overall tax rate paid by the nation’s wealthiest families in 1950, and half of the 47 percent tax rate paid in 1980. Today’s inequality is not normal, but it is the result of deliberate policy choices that prioritize the wealthiest individuals and corporations at the expense of everyone else. [New York Times / David Leonhardt]


3.4 Percent

New Jersey is not prepared to weather the next possible recession, according to a new analysis by The Pew Charitable Trusts. The state simply does not have enough money saved to mitigate a revenue shortfall, as budget reserves equal a mere 3.4 percent of the state’s total spending. That’s less than half of the national average of 7.5 percent. This is a direct result of the state not taking in enough tax revenue to meet its obligations and save for a rainy day. Over the last decade, New Jersey allowed its millionaires tax to expire, phased out the estate tax on wealthy heirs, cut taxes for corporations, and cut the sales tax. State lawmakers will surely miss these billions of dollars in foregone revenue when the next economic downturn hits. [NJ Spotlight / John Reitmeyer]


$500 Million

Earlier this week, Governor Murphy announced a plan to replace lead water pipes across the state over the next ten years. This effort would be funded by a $500 million bond initiative, which would go towards replacing lead service lines in publicly owned water systems. This is a good starting point, but it would not address the lead problem entirely. The American Water Works Association estimates that replacing all 350,000 lead service lines in New Jersey, including privately owned systems, would cost $2.3 billion. [NJ.com / Michael Sol Warren]


8.7 Percent

The average premium in the private insurance market will increase by 8.7 percent next year as a result of rising medical care costs. This is still 1.4 percent lower than the average cost of premiums two years ago, however, and many residents will have higher costs offset by state and federal assistance. Nevertheless, the high rate for next year is another example of how New Jersey must do much more to keep premiums at affordable levels, especially as the Trump administration sabotages the Affordable Care Act. According to NJPP’s Ray Castro, a good place to start would be passing legislation to reduce the exorbitant cost of prescription drugs. [NJ Spotlight / Lilo Stainton]


ICYMI

NJPP’s Erika Nava appeared on News 12 to discuss the widespread benefits of driver’s license expansion. The proposal would boost public safety as more drivers are trained, tested, and insured before they get behind the wheel. And as Erika explains, it’s also a matter of fairness: “If you live here in New Jersey, you’re a New Jerseyan. And you should be treated as such.” [News 12 New Jersey]


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Friday Facts and Figures: October 4, 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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$14.7 Million

Seven corporations received $14.7 million in annual tax breaks from the state Economic Development Authority (EDA) for property taxes they never had to pay, according to a new report by the Philadelphia Inquirer. How? Under the Economic Opportunity Act of 2013, state officials included future property tax payments when calculating the size of corporate subsidy awards, even when new developments were given local abatements and property tax exemptions. Two companies — Holtec and ResinTech — would not have qualified for their corporate subsidy awards if not for their phantom property tax bills. [Philadelphia Inquirer / Catherine Dunn and Andrew Seidman]


Less Than 25 Percent

“Voters and policymakers should recognize that incentives are not a free lunch,” writes economist Tim Bartik in an op-ed for the Star-Ledger. Bartik explains that corporate tax breaks are not only costly, but they’re also not effective at altering the location decisions of companies. Incentives tip a corporation’s location or expansion decision less than 25 percent of the time — and even when they do, there is no financial windfall for state and local governments. To ensure a better return on investment, Bartik recommends reining in the cost of subsidies, shortening the timeframes on awards, and designing incentives to encourage hiring local workers and those who are unemployed. [NJ.com / Tim Bartik]


280,000

The Trump administration has expanded the right to overtime pay to salaried workers earning up to $35,586 a year. However, the increase leaves behind 8.2 million workers — including 280,000 in New Jersey — who would have benefited from an Obama-era rule that raised the overtime eligibility threshold to $47,000. The Trump administration rejected commenters’ requests to index the new threshold to inflation, and the rule maintains exemptions for “executive, administrative and professional” workers. This loophole allows employers to legally misclassify low-paid workers as executives to get around paying them for overtime. [NJ BIZ / Daniel Munoz]


287(g)

State Attorney General Gurbir Grewal has ordered local police to end their participation in the 287(g) program, which deputizes law enforcement as Immigration and Customs Enforcement (ICE) agents. The decision will help build trust between local police and immigrant communities, thereby enhancing public safety for all residents in the state. When local law enforcement participate in deportation efforts, it dissuades immigrants from stepping forward as witnesses to crimes or participating in criminal investigations. Anthony Ambrose, Newark’s director of public safety, sums it up here: “We have more (undocumented) immigrants that are witnesses and victims. We have very few who are suspects.” [NJ.com / S.P. Sullivan]


39 Percent

Income inequality continues to climb, but wealth inequality is far more severe, according to a new analysis by the Institute on Taxation and Economic Policy (ITEP). The top 1 percent of residents in the US now own 39 percent of total wealth in the United States, up from 23 percent in in 1979. Since the late 1990s, the top 1 percent have owned more wealth than the bottom 90% of US residents combined. By instituting a national wealth tax, the federal government could help combat inequality and invest in critical public assets like education and transit infrastructure. [Institute on Taxation and Economic Policy / Steve Wamhoff]


ICYMI

NJPP President Brandon McKoy joined Rep. Bonnie Watson Coleman and Imani Oakley of the New Jersey Working Families Alliance to discuss the federal Earned Income Tax Credit (EITC). “The EITC is one of the most successful programs in the history of the country in lifting families out of poverty,” Brandon explains. Far too many workers, however, are left behind due to rigid eligibility requirements. Fortunately, Rep. Watson Coleman has a plan to fix that. Tune in to hear more! [Facebook Live / Rep. Bonnie Watson Coleman]


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Friday Facts and Figures: September 27, 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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FBI Investigation

FBI agents are investigating New Jersey’s corporate tax subsidy programs, according to a new report by the Philadelphia Inquirer. From the article: “Among their areas of interest has been the development boom in Camden, which has been fueled by $1.6 billion in tax breaks that the state’s Economic Development Authority (EDA) awarded to companies there since 2013.” The investigation, out of the US Attorney’s Office in Philadelphia, is reportedly in its early stages. Agents have interviewed potential witnesses over the last month. [Philadelphia Inquirer / Jeremy Roebuck, Andrew Seidman, and Catherine Dunn]


$100 Million

Twelve New Jersey-based companies threatened to move to the same office park in Pearl River, NY — right on the New York-New Jersey border — unless the state offered them millions in corporate tax subsidies. The result: none of the companies followed through on the threat to move, and the EDA awarded them more than $100 million in combined tax breaks. According to the office park’s leasing agent, the companies used the site to “maximize their incentive packages” from New Jersey, and had no real intention of moving there. This is the latest example of how New Jersey’s corporate subsidy programs enabled fraud and abuse. It also underscores the need for an interstate corporate tax subsidy ceasefire between New Jersey and neighboring states. [New York Times / Nick Corasaniti and Matthew Haag]


Highest Level

Income inequality in the United States has reached its highest level since the Census Bureau began tracking it in 1967. The Gini index, which measures wealth distribution (zero represents total equality while 1 represents total inequality) increased to 0.485 in 2018. To put this number in perspective, the Gini index was 0.397 in 1967, and no European nation had a score higher than 0.38 last year. Increasing inequality, despite a growing economy, shows that growth is not shared widely. More can and must be done to ensure everyone has the opportunity to live a safe and healthy life. [Washington Post / Taylor Telford]


832,133

More New Jersey residents lived in poverty in 2018 than prior to the Great Recession, according to new Census data. In total, 832,133 New Jerseyans were living in poverty in 2018, representing 9.5 percent of the state’s population. This rate remains higher than in 2008, when 8.7 percent of residents lived in poverty. Due to a history of exclusionary economic and social policies, the rate of poverty is even higher for people of color. Lawmakers must continue to prioritize low-income workers, communities of color, and impoverished New Jerseyans who face barriers to success. As NJPP President Brandon McKoy states, “Until we can ensure all New Jerseyans are able to safely and reliably make ends meet, our economy will continue to have trouble growing in a healthy manner.” [Insider NJ / NJPP]


No Discernible Effect

Raising the minimum wage in New York had a positive effect on average wages and no discernible effect on employment, according to a new analysis by economists at the New York Fed. The report measured the impact of New York’s increasing minimum wage on two low-paid industries, hospitality services and retail, in nineteen New York-Pennsylvania border counties (Pennsylvania’s minimum wage is currently $7.25 an hour). This contributes to the mounting evidence showing increases in the minimum wage are good for workers and the broader economy — and no, the sky won’t fall, and jobs won’t disappear if workers are paid a more-living wage. [Federal Reserve Bank of New York / Jason Bram, Fatih Karahan, and Brendan Moore]


ICYMI

Rutgers University President Robert Barchi urged New Jersey lawmakers to expand access to driver’s licenses to all state residents, regardless of their immigration status. In a letter to legislative leaders, President Barchi recommended hearings on driver’s license expansion “as soon as possible” as the policy would benefit DREAMer students who commute to the university’s campuses in New Brunswick, Newark, Camden, and Piscataway. As NJPP has previously reported, ensuring all drivers are trained, tested, and insured will make roads safer for all and provide a boost to local economies across the state. [The Daily Targum / Brenda Brightman]


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Friday Facts and Figures: September 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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$105,192

New Jersey’s corporate tax subsidies are a national outlier — both in their cost and how little the state receives as a return on its investment. According to a new NJPP report, the passage of the Economic Opportunity Act of 2013 enabled an unprecedented spike in spending on corporate tax breaks. In 2015, the cost of subsidies peaked at $105,192 per job created or maintained, and some of the state’s largest tax breaks cost more than half a million dollars per job. At the price New Jersey is paying on subsidies, taxpayers will never break even. The report also offers ten key reforms, like hard caps on awards, to rein in spending on corporate subsidies and revamp the state’s approach to economic development. [NJPP / Sheila Reynertson]


$52.7 Million

The state Economic Development Authority (EDA) has approved the pay out of $52.7 million worth of corporate tax breaks to 31 projects for 2018. The total cost of these projects exceeds $533 million in tax breaks over ten years. These payments are newsworthy, as all corporate subsidy payments were put on hold earlier this year as the EDA reevaluated whether companies were delivering on their promised jobs and capital investments. Payments to many high profile projects, including Holtec’s headquarters in Camden, are still on hold. [NJ.com / Ted Sherman]


49,000

New Jersey’s warehouse distribution economy is booming, with over 49,000 workers in the sector. On average, these jobs do not pay well, and they often have strict production quotas and unpredictable work schedules. Nevertheless, the state has awarded over $230 million in corporate subsidies over the last five years to warehouse operators, even as they pay poverty wages and take advantage of New Jersey’s robust transportation infrastructure. Better yet, some award recipients, namely NFI and goPuff, have previously violated wage and hour laws. As outlined in this op-ed (and in NJPP’s report linked above), New Jersey must do more to ensure the state no longer subsidizes low-paying jobs or companies with a poor record on workers’ rights. [NJ.com / Alberto Arroyo and Brandon Castro]


3.2 Percent

New Jersey’s unemployment rate is down to 3.2 percent, a record low since state-level data became available in 1976. The state added 1,100 new non-farm jobs in August, while the public sector added 2,300 new jobs, mostly at the local level. This indicates a strong labor market, which is good news for workers as it increases their bargaining power relative to that of employers. [ROI NJ / Emily Bader]


43rd

New Jersey has the 8th best overall health of women, infants, and children, according to America’s Health Rankings. However, the state ranks 43rd in the nation in adequate health insurance for children. That is a shocking statistic for New Jersey, which is one of the wealthiest states in the nation. The report did not provide specifics on why the state ranks so poorly, but we know that New Jersey FamilyCare has the second highest premiums in the nation for moderate income children not eligible for Medicaid. NJPP has been advocating for major changes in the program to provide more coverage and quality insurance for kids. A more systemic review of insurance in the private sector is also needed to address this major deficit. [America’s Health Rankings / United Health Foundation]


Thank you!

As I’m sure you know from the many emails we’ve sent, yesterday was NJPP’s Celebration of Progress 2019. On behalf of NJPP, thank you all for making last night’s event a big success and for your work making New Jersey a stronger and more equitable state! New Jersey wouldn’t be the progressive laboratory it is today without your continued support. Big shout outs to last night’s honorees: Reverend Dr. Charles Boyer, Milly Silva, Bill Caruso, and Senator Loretta Weinberg. We’ll have pictures from the event up on the website soon, so be on the lookout! [No link, just a thank you!]


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Friday Facts and Figures: September 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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** Celebrate with us next week! **
NJPP’s Celebration of Progress cocktail reception is this coming Thursday, September 19! Join your favorite policy wonks, advocates, and elected officials to commemorate a year of progressive victories.
Click here to purchase your ticket!


2 Percent

Who exactly benefits from New Jersey’s corporate subsidies? Not the residents of Camden, according to a new analysis by the state Economic Development Authority (EDA). Data from 25 EDA-subsidized projects in Camden County — representing about half of Camden projects since 2013 — show that only 26 percent of construction jobs went to county residents, and a mere 2 percent of those jobs went to residents of Camden city. Due to lax reporting requirements, data regarding permanent jobs is not yet available. Tim Sullivan, CEO of the EDA, requested companies voluntarily provide that info to the state by the end of the month. Needless to say, New Jersey’s corporate subsidies need a serious overhaul, including stronger reporting criteria and community benefit agreements that prioritize local employment. [The Philadelphia Inquirer / Catherine Dunn]


17.3 Percent

New Jersey has one of the best education systems in the nation, in no small part due to a well-trained and highly qualified teacher workforce. The state’s teachers, however, make substantially less than similarly educated workers, even when accounting for pensions and health benefits. According to a new NJPP report, teachers with a bachelor’s degree make, on average, 14.5 percent less than similarly educated non-teachers. The gap is greater for teachers with a master’s degree: 17.3 percent. When teacher compensation lags this much behind other professions, recruiting the best possible teacher candidates is a real challenge. [NJPP / Mark Weber]


$65,000

This Sunday is the deadline to apply for tuition-free community college under the recently expanded Community College Opportunity Grant (CCOG) program. For students with a gross adjusted income under $65,000, the CCOG closes the gap between tuition (including fees) and all other state and federal financial aid. The program helps level the playing field for higher education so all students — regardless of their income or immigration status — have a fair shot at a college degree. Click through for a brief explainer on the program and information on how to apply (spoiler: it’s pretty simple). [NJPP / Erika Nava]


3 Percent

A new report by the Urban Institute helps clarify the major positive effect of a $15 minimum wage in New Jersey. Notably, the report found that 1.4 million New Jerseyans, including 375,000 children, will benefit from the increase when it is fully phased in. The report also shows that less than 3 percent of workers who will benefit from the wage increase may no longer qualify for Medicaid; instead, these workers will qualify for health coverage on the Affordable Care Act exchange, with many receiving financial assistance to help cover the additional cost. Through the creation of a state exchange and other efforts to expand health coverage, New Jersey is well-equipped to close this potential coverage gap. [NJ Spotlight / Lilo Stainton]


1.9 Million

The number of uninsured Americans has grown by 1.9 million — including 425,000 children — according to new data by the US Census. This increase is the first since 2008, and represents a stark reversal after years of progress under the Affordable Care Act (ACA). New Jersey bucked this national trend, as the number of uninsured decreased by 33,000, but this number could have been much greater without the Trump administration’s ACA sabotage. Across the state, Medicaid enrollment decreased by 44,000, which is likely a result of federal anti-immigrant policies, namely the “public charge” rule. Marketplace enrollees also decreased by 16,000, which is likely a result of a shorter enrollment window and a drastic cut in outreach funding. [NJ.com / Editorial Board]


ICYMI

NJPP’s senior staff is growing! Following a months-long national search, NJPP has hired Nicole Rodriguez as our new Research Director. Nicole previously worked as a Senior Researcher with Community Labor United, and as Senior Policy Analyst at the Massachusetts Budget and Policy Center. NJPP also promoted Becca Jensen Compton to Development Director. Congrats to Nicole and Becca! [NJPP]


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Friday Facts and Figures: September 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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No Evidence

Yesterday, the Senate Select Committee on Economic Growth Strategies heard expert testimony on potential reforms to New Jersey’s scandal-plagued corporate subsidy programs. Jackson Brainerd, a policy specialist with the National Conference on State Legislatures, had the quote of the day. There’s really no need for me to editorialize, so here it is in full: “There is no evidence the number of economic tax incentives bear any relation to the broader performance of a state’s economy. And there is quite a bit of evidence that tax incentives often fail to achieve their stated goals and can have a negative impact on a state’s fiscal health.” Every expert who spoke echoed these same points, making the hearing a potential watershed moment in the ongoing corporate subsidy debate. [Insider NJ / Max Pizarro]


2.6 Million

While there is no doubt — especially after yesterday’s hearing — that New Jersey’s corporate subsidies are costly and ineffective, there are other tax credits better suited to lift the workers and families who need it most. Earlier this week, NJPP President Brandon McKoy stood alongside Rep. Donald Norcross and the Anti-Poverty Network to urge the state’s congressional delegation to support the Working Families Tax Relief Act, which would increase and expand both the Earned Income Tax Credit (EITC) and the Child Tax Credit (CTC). The proposal, sponsored by Rep. Norcross, would make the federal tax code more progressive and directly benefit more than 2.6 million New Jerseyans, including over 1.1 million children. [NJTV News / Briana Vannozzi]


20 Percent

With or without the federal government’s help, New Jersey is taking major steps to provide families and children facing poverty with critical basic assistance and work supports. After 30 years of neglect, the state has raised cash assistance benefits under Temporary Assistance for Needy Families (TANF) for the second time in as many years, with a 20 percent boost in FY 2020. Combined with last year’s 10 percent increase, New Jersey has raised its TANF benefit more than any other state in the nation over the last two years. Increasing TANF is not only the right thing to do for families in poverty, but it’s also one of the best investments a state can make as it leads to an immediate increase in consumer spending which reverberates throughout the broader economy. [NJ Spotlight / Lilo Stainton]


268,000

Even with an increase in TANF, more must be done to combat poverty and child hunger in the Garden State. According to a new report by Hunger Free New Jersey, approximately 268,000 children in the state — a whopping 14 percent — are food insecure. Schools, nonprofits, and local governments in several dozen municipalities are stepping up by serving free suppers to children eligible for free or reduced-price school lunches. These programs are powerful tools in combating child hunger and must be expanded, as the existing programs reach only 6 percent of eligible children who could benefit. This is unacceptable in one of the wealthiest states in the wealthiest country in the world. [NJ Spotlight / Colleen O’Dea]


14

The Trump administration’s punitive immigration agenda has created a humanitarian crisis at the US-Mexico border, with countless children being separated from their parents with no promise of seeing them ever again. Family separation, however, is not unique to the border, as it also happens here in New Jersey. We all know that driving is necessary to fully participate (and even subsist) in our suburban-sprawled state, but driver’s licenses remain out of reach for over 700,000 people, including many undocumented immigrants. For these residents, driving puts them at risk of getting pulled over and sucked into the deportation process. Expanding access to driver’s licenses to all residents — as fourteen states have already done — would stop families from being separated while making roads safer for all drivers. [NJ Spotlight / Johanna Calle]


ICYMI

Talk of an interstate corporate subsidy ceasefire is garnering national attention. In this article, The American Prospect outlines the potential benefits of a regional pact between New Jersey and its neighboring states, citing many of the same experts who testified at Thursday’s Senate committee hearing. NJPP’s Sheila Reynertson is also quoted, saying “a cease-fire agreement is a great way to redefine ourselves as part of a larger ecosystem,” and has the potential to stop corporations from playing costly games with taxpayer dollars. [The American Prospect / Marcia Brown]


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