The CEOs of Camden-based companies were among those who testified Monday at a meeting of a state Senate committee to tout the effectiveness of economic development programs that have come under scrutiny amid an intense battle that has pitted the New Jersey’s most powerful Democrats against each other.
“Let there be no mistake in understanding what I’m saying here today,” said Tom Doll of Subaru of America. “Were it not for the NJEDA’s direct engagement of Subaru in a proposal they presented approximately five years ago, I would not be sitting here today before you as head, as CEO, of a New Jersey-based company.”
His comments were echoed by Susan Story, president of American Water Works, which also established a headquarters in the impoverished Delaware River city after tapping incentives offered by the state’s Economic Development Authority.
“Incentives are and should be smart investments for the future of underserved and economically distressed cities throughout New Jersey,” she said. “They should, however, also be carefully designed, implemented and tracked to ensure they’re doing what they were proposed to do.”
Camden itself was also represented at Monday’s meeting of the Select Committee on Economic Growth Strategies.
“Since 2015, Camden has witnessed unprecedented economic investment, growth and development,” said Dana Redd, a former mayor who now serves as chief of the Rowan University/Rutgers board of governors. “And that is the direct result of the Economic Opportunity Act of 2013.”
That legislation, and the way it was administered by NJEDA, is the focal point of a dispute between Gov. Phil Murphy and Senate President Steve Sweeney, who impaneled the select committee just as a task force report was finishing a report sharply critical of the EDA and the tax breaks it awarded.
The report of the task force, commissioned by Murphy, raised questions about political influence and shoddy oversight of the EDA’s main economic-development tax-incentive programs. In particular, it uncovered concerns that the writing of the tax-incentive law itself was influenced by attorneys with close ties to companies that went on to win lucrative tax breaks, and that many of the winning firms have links to Democratic South Jersey powerbroker George Norcross, a close Sweeney ally.
In the wake of the release of the report, Murphy allowed the programs to lapse, blocking a measure favored by Sweeney that would have allowed them to continue while lawmakers weighed reforms.
During Monday’s hearing, the CEOs told the lawmakers about what they were doing to be good corporate citizens, and about steps they were taking to benefit residents.
“We’re conducting interview-preparedness training in our corporate headquarters,” Story said. “We’re trying to help students improve their resume-writing skills. And we’re focusing on soft skills, like how to shake hands, how to make eye contact.”
Critics were also at the State House on Monday.
“Who’s benefiting from these tax breaks? said Sue Altman of the Working Families Party. “Who we heard out there today was an unbelievably condescending set of corporate executives saying that what their companies do is give volunteer hours and free books to Camden school children. That’s not helping a community. That’s condescending. That’s borderline racist.”
A study last week released by the head of the EDA said only 27 Camden residents got construction jobs from these projects.
That raised hackles here.
“You got a guy who’s in charge of the most powerful entity that we have in this state right here,” said Camden Freeholder Jonathan Young, referring to Tim Sullivan, who took the helm at the EDA after Murphy took office. “He’s got all the data in his hands, and he chose — he chose — to put out an incomplete report.”
Young said the true number is 194.
“Today’s hearing was a total sham,” Altman said. “We had people who are direct beneficiaries and friends of George Norcross testify in front of people who are direct beneficiaries and friends of George Norcross in the Senate.”
Supporters of the programs said the critics should propose alternatives.
“For those that are critics, what is your solution?” Redd said. “I never hear anyone propose a solution for how we attract businesses to the city of Camden.”
The select committee plans to hold one more hearing, probably after the November election, in which all seats in the state Assembly are on the ballot. Then the state will need to get around to replacing the incentive programs, which expired June 30.
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