Legislative Update

NJBIA Capitol Memo - October 21, 2011

Christie Makes Economic Development Top Goal of State Plan

Governor Chris Christie on October 19 unveiled a new State Strategic Plan to direct state resources toward--and encourage new development in--areas that are prepared for economic growth. The plan would also protect the state's natural resources from development pressures. It replaces the previous state plan, which had been criticized as complex and ineffective.

Christie's state plan puts job creation and economic development at the forefront of its goals. It would also create a new State Strategic Plan Steering Committee to ensure that state departments and agencies are following the goals, objectives and values of the new plan.

"New Jersey's challenges are too great to be approached in the stratified, haphazard and unrealistic manner that has characterized previous statewide planning efforts. This is a plan that will foster job growth in a sensible, sustainable and truly effective manner over the long term," Christie said in unveiling the new plan.

The plan will direct growth to "Priority Growth Investment Areas" that provide access to quality education, housing, public transportation and infrastructure. Such areas include major urban centers, existing designated growth centers, port areas, growth areas as identified by regional or county master plans, and areas targeted by municipalities for redevelopment.

The plan will also promote projects that fulfill a list of best practices called "Garden State Values." Such projects will:

> increase job creation and business opportunities;
> be compact, mixed use, and accessible to existing development and infrastructure;
> prioritize redevelopment, infill and existing infrastructure;
> support healthy communities through environmental protection and enhancement;
> diversify housing opportunities; and
> fit within regional planning frameworks.

Christie's vision also directs state officials to determine how they can best help expand the state's major industries--including pharmaceuticals, manufacturing, technology and healthcare--where those industries already exist. The plan refers to these industries as "Regional Innovation Clusters."

At the plan's unveiling, the previous state plan, adopted in 2001, was criticized. The old plan focused on state capital expenditures and environmental regulations separate from the state's economic development, transportation and social services plans. A statement issued by the Christie administration also said that conflicting state regulations and inconsistent application of rules and standards discouraged economic development and contributed to a system of planning that was restrictive, complex, confusing and difficult to navigate.

Christie's new steering committee is designed to prevent this. The Committee will include representatives from every department in state government involved with development. The committee will coordinate plans for each agency and department to implement the strategic plan, including program and rule changes, annual capital spending plans, better coordination between agencies and strategic plan training for staff. For more information, contact Dave Brogan.

2. Court Says Judges Are Exempt from New Pension and Benefits Reform Law

The new state law requiring 700,000 government workers to contribute more money towards the cost of their pension and health benefits does not apply to judges, Mercer County Superior Court Assignment Judge Linda Feinberg said in an October 17 ruling. She argued that the increased contributions are an indirect reduction in pay and therefore a violation of the state constitution, which prohibits salary reductions for judges while in office. The ruling came in response to a lawsuit filed by Superior Court Judge Paul DePascale of Hudson County.

The law, which Christie signed on June 28, increases state workers' pension contributions from 3 percent to as much as 12 percent of their annual salaries. It also requires them to pay up to 35 percent of their healthcare premiums, depending on their pay. The Governor blasted Judge Feinberg's decision as outrageous and vowed to both appeal the ruling and seek a constitutional amendment clarifying that the provision does not apply to payments for benefits.

3. Free Trade Agreements with Korea, Columbia and Panama To Be Approved

President Barack Obama is expected to sign new free trade agreements with Korea, Panama and Columbia on October 21, less than two weeks after they were approved by Congress. The agreements are expected to boost US exports by $13 billion. The Korea agreement is the biggest such deal since the North American Free Trade Agreement (NAFTA) and could be worth nearly $11 billion in its first year.

While each trade agreement is different, New Jersey generally benefits from foreign trade. More than 16,000 New Jersey companies export goods from New Jersey. In 2010, the state exported a total of $32.2 billion worth of goods.

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