that is weighed down by nearly 570 mu- nicipalities within the state, many with separate public services, such as police forces and school systems, that could be combined to alleviate the tax burden. “It’s time someone had the courage to chop all these fiefdoms down and con- solidate them,” he says. The revenue shortfall and rising taxes mentioned by Houston were cited by others as well as the twin challenges the state must confront. In the RENJ/ GlobeSt.com poll, nearly 42% pointed to the budget deficit. “The budget and taxes, I believe, are getting out of con- trol,” one respondent stated. In June, the legislature passed a $29-billion state budget that will up taxes by nearly $1 billion. The hikes were needed to compensate for a $5-bil- lion drop in revenues. Coming in second was an unfriendly business climate, checked by a third. “Not because it is the most important issue, but because it encompasses the major issues,” said a partner at an own- ership/development firm. “If we get the state working with less fluff, we can tackle the other issues. We need to make New
Jersey more competitive and stop push-
ing people out through higher taxes.”
Houston concurs that job one for the
Garden State is boosting private employ-
ment, noting that one out of every seven
people in New Jersey works for state
government, which means a lot of taxes
needed to pay their salaries. Until that
happens, the state’s economy will not
recover, he says.
Likewise, respondents to the RENJ/
GlobeSt.com poll said that economic
development in the state is hampered by
a loss of private sector jobs and residents
moving to other states; no coordinated
plan for sustained economic growth; and
New Jersey’s external image as a high-
cost state, all of which garnered 23.5%
of the votes. Said one participant: “The
state is getting clobbered by [Pennsylva-
nia Gov. Edward G.] Rendell.”
Property taxes are part of the reason
many view the state as an expensive
place to live and work, thus putting
yet another roadblock to bringing in
and keeping tenants. “We are going to
drive more and more people out of the
state every time we raise taxes,” Houston says. “And we are just not cutting
spending.”
Board member Jeff Schotz, executive
managing officer and head of the New
Jersey office of FirstService Williams in
Parsippany, has yet to pick a candidate.
He maintains that the state’s tax structure puts an undue burden on commercial real estate, putting it at a competitive
disadvantage with other states. “We need
to be more aggressive on business development efforts,” he says. “The first thing
we need to do is attract and retain companies, then we can worry about where
to develop because there is plenty of
space available.”
Board member Ted Zangari, a Newark-based redevelopment law attorney
with Sills Cummis & Gross PC, says that
employers will still want to come to the
state as long as the high cost does not
outweigh the benefits the state offers
in terms of an educated workforce and
its airport, seaport and rail network.
“If we can stay in the premium range
and not tip into unaffordable, then it’s
fine that some may have a perception
of high cost.”
Unlike Schotz, Zangari contends
there is a lack of suitable large track development sites, which he attributes to
the “severe constraints” on eminent domain and the imposition of preservation
areas in the Highlands, Meadowlands,
coastlands and Pinelands. “It’s a challenge, but it is one that can be overcome
now that we are starting to get our smart-growth act together.”
In terms of the hurdles impeding
development, more than half who took
the RENJ/ GlobeSt.com poll pointed to
the length and complexity of the permit process. COAH took second place,
with 11.4% of the vote. One respondent suggested that affordable housing
development, which should be set at a
“reasonable number,” could be financed
through a fee on home sales. “A small
fee on all sales will not impact the state in
the same way COAH does,” the owner/
developer partner said.
More than 67% of the respondents to
the RENJ/ GlobeSt.com poll rated Gov.
Corzine as poor on business issues and
50% said that high taxes on businesses
Who are you supporting in the upcoming governor’s race? 13.9%
22.2%
Jon Corzine
Chris Christie
Christopher
Daggett
63.9%
Overall, what are the major
challenges the state faces?
2.8%
11.1%
41.7%
State Budget
Deficit
Need for
Infrastructure
Upgrades
Unfunded State
Pension
Need for
Affordable Housing 33.3%
2.8% 2.8% 5.6%
Poor Pro-Business
Climate
Political Corruption
Other
In regards to economic development,
what challenges does the state face?
20.6%
23.5%
Lose of Private
Sector Jobs
and Residents
to Other States
23.5%
Inadequate
Economic
Incentives
Higher Costs of
Redevelopment
of Inner Cities
5.9%
2.9%
23.5%
No Coordinated
Plan for Sustained
Economic Growth
Image as a High
Cost State
High Property Taxes
GlobeSt.com/RENJ Survey
