Politico’s Matt Friedman reports today:
In an absolutely scathing audit released yesterday, the state comptroller outlined the lack of oversight and standards in how the Economic Development Authority holds companies to the job creation goals they’re supposed to meet. Often, the state has just been taking corporations’ word for it that they’re creating the jobs without a concrete system to check them. The comptroller audited a small portion of the incentives awarded and found millions in overpayments and other problems.
This is the legacy of former Gov. Christie as well as Senate President Sweeney, and for that matter, Lt. Gov. Oliver, who was Assembly speaker when the Legislature passed the 2013 law to vastly expand the state tax credit programs. The board members of the EDA over the years bear responsibility. And perhaps we should have seen this coming. The Economic Opportunity Act of 2013’s biggest champion wound up resigning in disgrace over an unrelated case shortly after it was passed. And that bill had been rewritten at the last minute with sweetener after sweetener for South Jersey. One of the agency’s leaders, Michele Brown, was a first and foremost a Christie loyalist. Another, Melissa Orsen, left to take a job at South Jersey Industries, which had been awarded a $12 million incentive.
Sure, you can argue that it’s not the law that failed but its implementation. But you could just as easily argue that in vastly expanding the program, lawmakers should have included stricter enforcement standards.
The tax credit programs are set to expire in July. Sweeney indicated recently that he’d like to pretty much keep them as is. Murphy wants big changes. It’s hard to imagine at this point that Sweeney could get a veto-proof majority to push through a bill that doesn’t make major changes.
