www.buonoforgovernor.

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www.buonoforgovernor.com

Better Jobs and Economic Security for the Middle Class

The Buono Plan for New Jersey:

My economic plan reflects an understanding that economic growth begins with the middle class. We will create better jobs in New Jersey not just by offering tax credits to corporations, but by investing in our workforce, schools, working families, small businesses and infrastructure.

Executive Summary

Hundreds of thousands are unemployed in New Jersey today, and more are stuck in part-time, low-paying jobs, unable to obtain the skills necessary for quality jobs with good pay. Families are falling out of the middle class and into poverty, crushed by soaring property taxes, a rising cost of living and stagnant wages. Across the state, students take on thousands of dollars of debt in pursuit of a postsecondary education, only to find that the job opportunities they had counted on simply arent there. Though some of these problems have been years in the making, Governor Christies failed policies, guided by his discredited belief that economic prosperity trickles from the top down, have made them worse. Governor Christie has made his economic priorities clear: businesses and individuals who are already on top are worth the states investment, but middle class families, small business owners, and the working poor are not. Over the past four years, Governor Christie has awarded over $2.1 billion in corporate subsidiesdouble the amount awarded by the last four governors combinedbut he has refused to invest in worker training programs. At the same time, he has protected millionaires from tax increases, but he has blocked a minimum wage increase tied to the cost of living and slashed funding for education, womens health and middle class tax relief. The result of Christies economic philosophy? Today New Jersey has one of the lowest job creation rates in the nation, the highest unemployment rate in the region and one of the highest unemployment rates in the nation. New Jersey is at a defining moment. We can choose to continue Governor Christies failed economic policies that have crippled the middle class while enriching the wealthy.
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 Or we can choose to grow our economy and bring jobs back to our state in a way we know works: by building a strong middle class. As governor, Barbara Buono will lift up our middle class and put New Jersey back on the path to economic prosperity by: Investing in New Jersey workers, both those in the workforce today and those who will fill the jobs of tomorrow; Ensuring working families have basic supports and protections; Creating the right conditions to attract new businesses and better jobs to New Jersey; Redirecting state support to the businesses and families that need it most; and, Building on New Jerseys economic strengths and addressing the underlying barriers to economic growth. The following pages provide a comprehensive plan to get New Jerseyans back to work and to build an economy that is built to last.

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INVESTING IN NEW JERSEY WORKERS

Our business owners know there are three keys to a head start in any industry location, location, location. Businesses locate where they can find a skilled workforce. From pre-k to graduation day, we need to provide our students with the education and training necessary to thrive in the global economy. Keep talented students in New Jersey. New Jersey experiences a net loss of 30,000 college students By 2018, New Jersey will need every year. At the same time, by 2018, an estimated to fill 794,000 jobs that require 794,000 open jobs in New Jersey will require postsecondary credentials. postsecondary credentials. To remain competitive in the global economy, we must take bold steps today to -Georgetown University, Center on ensure the best and brightest New Jersey students Education and the Workforce, 2010 stay in the state and contribute to our skilled Report workforce tomorrow. o Restore our state as a leader in research and innovation. Investing in our colleges and universities will ensure they have resources to educate the workforce of tomorrow while keeping tuition affordable for students today. o Make tuition at our public colleges and universities more affordable. When the state cuts higher education funding, students foot the bill. Investing in higher education will make tuition more affordable, making it easier for thousands of New Jersey students to pursue their education in the state they call home. o Increase scholarships and tuition assistance. The TAG, EOF, and NJ STARS I & II scholarship programs have been critical in helping New Jerseyans afford their postsecondary education. Originally intended to cover 100% of tuition at public institutions and 80% at private institutions, TAG has declined in value, covering significantly less of the costs. Expand affordable options to train and retrain our workforce. As the world changes, the demands of our economy change with it. Without postsecondary training, people who lost their jobs during the recession are finding it increasingly difficult to find new ones. Expanding access to affordable job training will be critical to lowering unemployment and spurring economic growth. o Invest in county colleges. For years, county colleges have provided New Jerseyans with an affordable way to obtain the skills they need to get quality jobs. Yet our county colleges today are forced to serve more students with less funding. We must reinvest in county colleges, giving countless unemployed and underemployed New Jerseyans a chance to compete in todays job market and providing job-creating businesses with the skilled workers they need. o Improve vocational schools. Hundreds of fulfilling careers in New Jersey do not require a college education. New Jersey must increase funding for vocational education programs that train workers for quality jobs.

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Make the most of our investments in workforce development. Do what you can, with what you have, where you are. Theodore Roosevelt. We must invest in the workforce of tomorrow but also be cognizant of our limited resources. Increasing the efficiency of our investments will maximize the number of skilled workers in New Jersey and ensure that we maintain that workforce for years to come. o Make sure students go to college prepared. New Jersey spends millions annually teaching college students what they should have learned in high school. If we ensure our K-12 students are better prepared for college, then our public colleges and universities can spend more time equipping students with skills to succeed in the workforce. o Develop a fair and consistent way to fund higher education. New Jersey currently operates without a predictable and rational funding mechanism for higher education, which has made it difficult for colleges and universities to plan for the future needs of their students. Make New Jersey first in the nation for professionals in science, technology, engineering and math (STEM) fields. New Jersey will need to fill 269,000 jobs in science, technology, engineering and mathematics or STEM fields by 2018. These workers fuel New Jerseys biotech and life science industries and earn an average salary of nearly $86,000, far above the state average. While New Jersey boasts the 10th highest percentage of STEM professionals of any state, our STEM workforce has shrunk over the past decade as it has grown in other states. We must commit once again to growing a STEM workforce that will fuel innovation and economic prosperity. o Recruit more qualified science and math Job growth, employment teachers in K-12 schools. New Jersey should rates, patenting, wages, and expand programs to address the shortage of exports are all higher in more qualified science and math teachers in our STEM-based economies. schools, equipping students with the tools to -Brookings Institution, The Hidden succeed in STEM majors in college. STEM E conomy, 2 013 R eport o Encourage more women to enter STEM fields. Women are less likely than men to pursue degrees in STEM fields and are even less likely to enter careers in those fields. We cannot ignore half the population in our efforts to create a new generation of STEM professionals. Our state must engage its women students. New Jersey should pursue a statewide initiative in our K-12 schools to encourage young women and girls to pursue STEM fields.

ENSURING WORKING FAMILIES CAN MAKE ENDS MEET

Just as employers across the state can count on New Jerseys workers, our workers need to know someone is looking out for them. They need fair wages and fundamental workplace protections that enable them to provide for their families, participate in the workforce, and contribute to our states economic growth.
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Increase New Jerseys minimum wage and tie it to cost of living increases. New Jersey has one of the highest costs of living in the nation, but its minimum wage is the lowest federally allowable. Increasing the minimum wage will inject millions of dollars into our economy while making it easier for working families to make ends meet. Protect tax relief for the families that need it most. Putting more money in the pockets of working class New Jerseyans is one of the surest ways to generate consumer spending. We should restore the Earned Income Tax Credit to 25 percent and market it to all eligible families, which will help working families pay for basic needs, increase consumer spending, and generate economic growth. Provide workers with a limited number of earned sick days. Over a million New Jersey workers do not have access to a single paid sick day. These workers are more likely to go to work sick, putting the health of their co-workers and the public at risk. Guaranteeing workers a limited number of earned sick days will save taxpayers money in the form of reduced hospital visits and increased worker output. Strengthen equal pay laws. Women are increasingly the breadwinners in society, yet New Jersey women still only earn 78 cents to the dollar compared to men. Strengthening equal pay laws will help our economy grow and allow our working families to thrive. Expand tax relief for child care expenses. The average New Jersey family spends 9 percent of its monthly income on child care expenses. For low earning families, that figure is double. Creating a state-based child care tax credit will provide much-needed relief to these families, enabling them to pursue gainful employment and provide for their children at the same time. Give parents the tools to save for their childrens higher education. The average student at a New Jersey college or university graduates with over $27,000 in debt. This debt puts tremendous strain on New Jersey families and inhibits the economic freedom of graduating students as they enter the job market. Creating up-front tax deductions for the NJ BEST college savings program will encourage families to save for their childrens tuition expenses, reduce debt, and increase long term savings.

BRINGING QUALITY BUSINESSES TO NEW JERSEY

Strategic investments and cooperative partnerships between emerging markets and institutions of higher learning will define New Jersey as a leader in innovation and help attract high quality businesses. Connect start-up and emerging market Research and development businesses with institutions of higher unequivocally pays off economically. learning. New Jersey is home to world- But the biggest payoff is in renowned colleges and universities. We must ecosystems that take the innovation capitalize on these centers of innovation by inputs and make them commercial encouraging businesses in emerging markets outputs. such as biotech, life sciences, and renewable -Dr. David B. Audretsch, director, energy industriesto locate near our colleges Institute for Development Strategies, Indiana and universities, allowing them to share University resources and create jobs for recent graduates.

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 Increase investments in research and development. Companies locate where they can find the best opportunities for developing their products. Increasing our investments in research and development will attract these companies to New Jersey, creating quality jobs for the middle class.

REDIRECTING STATE SUPPORT WHERE IT IS MOST EFFECTIVE

Tax credits and incentives work best when targeted. New Jersey should give priority to small businesses and hardworking people who need it most. Small businesses, including women- and minority-owned, are the lifeblood of New Jerseys economy. In total, they account for approximately 95% of all New Jersey businesses. Expand local contracting preferences for New Jersey-based businesses. Its common sense: New Jersey tax dollars for state projects should go to businesses here at home, not firms located outside of New Jersey. Especially in the wake of Superstorm Sandy, we need to do more to ensure that local businesses are at the forefront of the rebuilding effort. Target assistance to small businesses, many of Small businesses are which are women- and minority-owned. In spite the driving force behind of the many challenges their owners face, small American innovation businesses create almost half of all jobs in New Jersey and economic growth. and generate billions in economic output each year. -Third Way: Starting and Directing support to small businesses, many of which Owning a Small Business, 2010 are women- and minority-owned, will maximize our Report capacity to create jobs. o Continue efforts to simplify the tax code to encourage the formation and growth of small businesses. The 2011 Small Business Tax Cut was a great example of a bipartisan effort to make it easier for small business owners to operate. We must continue to take commonsense steps to lower costs and streamline regulations for small businesses. Make sure small business owners know where to go for help. New Jersey offers a number of programs to help small business owners, but due to insufficient efforts to publicize these programs, those who can benefit most dont know they exist. We must expand outreach efforts and develop a more hands-on approach to small business owners to ensure they get the help they need. o Start a Community Solutions program to help small businesses open and grow. Its not easy to start a business. Consolidating New Jerseys appropriate economic development resources into a Community Solutions program will give small businesses the capital and hands-on advice they need to get off of the ground. Target tax credits for small businesses in biotechnology, life sciences, and other advanced fields. Tax credits work best when targeted. New Jersey will get the biggest return on its investments by focusing incentives toward businesses that create high-skilled, high- paying jobs.

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 Focus on sustainable urban development. Our states urban centers provide an opportunity for environmentally sound development in areas that stand to benefit most from new jobs and increased economic activity. Fostering development in these areas can stem chronic unemployment and reduce the violence that has plagued our urban communities. It will also prevent sprawl and development in areas of economic sensitivity, including our wetlands, the Highlands and the Pinelands. o Launch an urban investment bank. Entrepreneurs and start-ups in New Jersey often lack access to capital, especially during periods of economic downturn. We can support local entrepreneurs and lift up communities by leveraging state investment and private capital through the creation of a self-sustaining public-private investment bank. This type of bank will encourage companies to direct their resources where they will see the greatest return while promoting local businesses and improving conditions for people in their surrounding communities. o Restore and strengthen oversight of the Urban Enterprise Zone program. The Urban Enterprise Zone program has provided businesses in urban communities with invaluable support since 1983. New Jersey needs to restore and strengthen oversight of this program now more than ever to give businesses the means to hire more employees and attract more shoppers. o Provide tax credits in areas of chronically high unemployment. Factors associated with systemic disadvantages, such as high crime rates, high unemployment and failing schools, lead to stagnant economic development in too many urban communities. We must couple efforts to reduce crime and improve schools with targeted tax credits to attract and keep businesses in these areas.

BUILDING ON OUR STRENGTHS, ADDRESSING OUR WEAKNESSES

New Jersey has a lot to be proud of, but we still have plenty of room for improvement. We need to take advantage of our assets and take action where inadequacy exists. Remove underlying barriers to growth by tackling the foreclosure crisis. New Jersey has the second highest foreclosure rate in the nation, a problem that ripples throughout our economy in the form of decreased property values, increased crime and lost revenues. We must act swiftly to stem foreclosures and get back on the path to economic growth. o Promote proven strategies to keep people in their homes. We should do more to encourage loan modification, principal reduction and housing counseling. These strategies have proven to be effective in keeping underwater homeowners in their homes. Fix our crumbling roads, tunnels and bridges. For years our leaders have delayed making the investments necessary to keep our transportation infrastructure safe and efficient. As a result, New Jersey faces $21 billion in needed transportation repairs alone, with our roads and bridges receiving a D rating from the American Society of Civil Engineers. These pressing issues demand creative solutions.
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New Jerseys future economic success depends upon the ability to fund investment in transportation infrastructure.

Take full advantage of federal infrastructure resources. Infrastructure projects are essential, but they are a considerable undertaking. New Jersey needs to take advantage of federal infrastructure funds wherever possible to ensure we can finance these sorely needed projects. o High-speed rail. Located between New York City and Philadelphia, New Jersey stands to benefit greatly from transportation projects that capitalize on its strategic location. New Jersey should engage the federal government and its neighboring states to improve regional access between the states. o Expand access to New York City. A number of projects have been proposed to expand transportation options to New York City, including the ARC Tunnel and the Number 7 train. Pursuing these projects will give New Jerseyans better access to specialized jobs in New York City and promote in-migration of investment, jobs and people into New Jersey.

-Facing Our Future: Infrastructure Investments Necessary for Economic Success, April 2013

o Leverage private capital to fund infrastructure projects. New Jersey should create a self-sustaining state infrastructure bank to couple public and private investments to fund infrastructure repairs while retaining complete control of our transportation infrastructure.

Renew our commitment to a clean energy economy. New Jersey has been a leader in promoting clean energy technology, but our continued success in these industries is by no means guaranteed. We need to adopt and adapt policies that help ensure our economic growth is environmentally sustainable. o Invest in solar, wind and other renewable energy sources. These energy sources provide a unique opportunity to produce energy in a way that does not hurt the environment or our wallet. Eco-friendly energy is sustainable and can result in long- term cost savings. o Save by promoting energy efficiency. New Jersey should expand incentives to ensure that future development takes advantage of energy efficient technologies. Green buildings can conserve energy, reduce the need for new, expensive generation and reduce operating costs.

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