Sweeney Praises EDA Chairman Downes & Comptroller Degnan for ‘Setting the Record Straight’ on Tax Incentive Programs

Calls for Disclosure of Alleged Bad Actors

TRENTON – Following a legislative hearing that refuted many of the mischaracterizations of the State Comptroller’s audit of the Economic Development Authority’s tax incentive programs, Senate President Steve Sweeney praised Economic Development Authority Chairman Laurence Downes and State Comptroller Phil Degnan for setting the record straight.

“No evidence was presented to demonstrate that companies defaulted on their promises to the EDA or have not complied with their agreements with the state,” said Senator Sweeney (D-Gloucester/Salem/Cumberland).

Comptroller Degnan said during the hearing that “we didn’t find that anyone was in violation.”

The legislative hearing and the testimony of the comptroller and the chairman of the EDA reaffirmed the actual findings of the report – and underscored both that the $11 billion price tag is a grossly inaccurate figure and that the report did not claim the promised jobs were not created.

Comptroller Degnan said that the flagged jobs “may exist” and that the report never made “any allegation that a job was or was not created,” only that the EDA did not provide enough documentation. He also noted that none of the companies were contacted for the audit.

In a prepared statement, EDA Chairman Downes said, “The review and approval process for incentives was substantive, had legal oversight (from the Attorney General’s Office), and it was publicly transparent.”

“To ensure full transparency, I am calling on the Comptroller to release the list of the 48 companies that were audited and to identify any companies that violated the requirements of the programs,” said Senator Sweeney. “If there are any bad actors who are ripping off the state, as some have alleged, the taxpayers have a right to know and those companies should be held accountable. But it is not in the best interest of New Jersey to cast aspersions on all the companies and employees who are complying with the law.”

Tom Bracken, the president of the New Jersey Chamber of Commerce, warned that we have to be careful not to “diminish the EDA in its entirety” and that going after an institution such as the EDA and its incentives could stop companies from looking at the state if people continue to “rip into it.”

“We need to know the facts before the administration continues its courtship of Amazon with $5 billion in tax breaks.” said Senator Sweeney. “As we work to make sure that we have effective incentive programs that support the creation and retention of jobs and promote economic growth, we need an accurate analysis of the successes and weaknesses of the current programs so that we can make an informed decision about their renewal and any refinement or changes that may be needed. We can’t forget that these programs are for the benefit of job holders, job seekers and the state’s economy.”

For example, Assemblywoman Eliana Pintor Marin said during the hearing that incentives helped to generate new development in places like Newark. “It’s brought supermarkets to food deserts. It’s really created new opportunities that didn’t exist there before,” Assemblywoman Pintor Marin said.