Highland Park—New Jersey Citizen Action released the following statement today in response to a state Comptroller audit finding that $11 billion in tax breaks given to corporations between 2005 and 2017 by the New Jersey Economic Development Authority have generated no known economic benefits for New Jersey and its taxpayers. The EDA’s corporate tax incentive program was meant to spur economic growth and create thousands of new jobs. But the audit found the EDA has been grossly mismanaged, resulting in improperly awarded incentives, inflated and misleading job counts, and corporate tax incentive recipients taking advantage of the agency’s lack of oversight, accountability and internal controls.

“For years, a badly mismanaged state EDA has been giving billions of dollars of tax breaks to corporations while New Jersey working families have struggled with rising housing costs, health care costs, failing infrastructure and student debt,” said Phyllis Salowe-Kaye, executive director of New Jersey Citizen Action. “With these funds we could have expanded health care coverage for our uninsured and for lower income families, provided tax relief for caregivers and families, and expanded the Earned Income Tax Credit to lower-wage, childless adults. We could have provided funding to make New Jersey Transit more reliable and affordable, invested in infrastructure improvements and funded education at all levels. We could have made tax breaks available for small business owners, who form the backbone of our local economies.

“Instead of investing in New Jersey’s working families and their communities, the state EDA enriched the shareholders and executives of large corporations who wield undue influence over political party bosses.  We demand a full investigation into how and why the EDA’s mission was derailed and to punish any wrongdoers involved in these abuses. We agree with Governor Murphy’s call to overhaul the EDA so it can help promote smart, sustainable economic growth, particularly in economically depressed areas of our state. New Jersey’s hardworking taxpayers deserve nothing less.”