ECONOMIC GROWTH FALTERING IN NEW JERSEY

Senate Republican Budget Officer Leonard Lance issued the following statement regarding the state of New Jersey's economy:

"New Jersey has reached the tipping point. It is hard to believe that New Jersey's economy is in such sad shape on so many fronts that our prosperity is endangered.

"Earlier this year, some people were quick to dismiss the Tax Foundation report that ranked New Jersey's business climate as 49th among the 50 states. Corrective action is desperately needed if New Jersey is to remain a place where middle class people can afford to raise a family and run a business. The state's economic climate can be improved by addressing three priorities: restraining state spending, lightening the tax burden and easing the regulatory environment.

"For five consecutive years, New Jersey residents have listened to governors lamenting that the state has a several billion-dollar revenue shortfall. The swelling is proof that the state's problem isn't a lack of revenues but an excess of spending. There needs to be a bottoms-up review of all state spending that challenges long-held assumptions regarding the state's budgeting process.

"The surge in state spending has led to a barrage of tax increases – 101 since 2002, which total $12 billion. While New Jersey's flawed property tax system gets much attention, our state's business, income and sales taxes are now among the nation's highest -- making New Jersey the country's third most heavily taxed state.

"There will be dire consequences for all New Jersey residents unless dramatic steps are taken to make the state more hospitable to employers. In my capacity as the Senate Republican Budget Officer, I will continue to heed my self-imposed obligation to make state government less of an adversary to business people – who take financial risks and contribute to making New Jersey a better place to live. "