NJBIA President Calls for Strategic Economic Reforms in New Jersey

Siekerka emphasized that despite New Jersey's strong economic assets, including a highly educated workforce and a strategic geographic location, the state continues to struggle with employment and business conditions. "It is critical that as policymakers, you now focus on how to leverage our assets and take immediate actions to stop the jobs bleed that we are experiencing," she stated.

She made two specific recommendations to foster a more positive business climate: first, to clarify the implications of the newly enacted ABC rules for job creators and gig workers; and second, to commit to ending the Corporate Transit Fee (CTF) on its scheduled date in 2028. New Jersey currently has the highest Corporate Business Tax in the nation at 11.5%, which includes a 2.5% CTF surcharge set to sunset at the end of 2028.

Siekerka also noted a controversial new regulation implemented by Governor Mikie Sherrill that applies the most stringent ABC test in the country, complicating the independence of gig workers.

During the hearing, Siekerka highlighted challenges facing New Jersey's manufacturing sector, suggesting that manufacturers suffer from regulatory burdens, increased costs, and taxes which put them at a disadvantage.

Her recommendations included:

- Establishing a permanent regulatory review commission to alleviate compliance issues for small and mid-sized manufacturers.

- Ensuring a stable funding source for the New Jersey Manufacturing Extension Program (NJMEP).

- Restoring the Manufacturing Voucher Program (MVP), which incentivizes capital investment by manufacturers.

- Expanding support from the New Jersey Economic Development Authority (NJEDA) for key initiatives related to innovation and technology.

- Enhancing existing tax incentives to stimulate manufacturing and innovation, including further development of R&D and Angel Investor tax credits.

- Reducing business costs through decreased corporate and property taxes and simplified licensing procedures.

Siekerka also pointed out the unique workforce challenges in manufacturing, emphasizing the urgent need for skilled technical workers and dispelling misconceptions about manufacturing jobs.

To address workforce development, she recommended expanding STEM education focused on manufacturing, investing more in the Manufacturing Skills Initiative, building on successful funding acts for workforce development, and enhancing support for the Commission on Science, Innovation & Technology.