The New Jersey Business & Industry Association’s 64th annual Business Outlook Survey finds that Garden State business leaders believe they are being left out of the affordability conversation that has dominated Trenton over the past year.
According to the survey, released Nov. 28, 75% of respondents said that the governor and lawmakers have not done enough to address business affordability in the past 12 months, while a combined 82% said that New Jersey is either somewhat unaffordable for businesses (46%) or not affordable at all for businesses (36%).
In fact, just 5% said that policymakers are doing enough to help businesses.
Siekerka
“It was a year which saw historic spending and budget surplus, yet no comprehensive business relief – and our businesses have taken notice,” said NJBIA President and CEO Michele Siekerka.
Siekerka points out that there has still not been any relief from the $1 billion unemployment insurance tax increase, something she notes was brought on by COVID restrictions and shutdowns that were not the fault of the business community.
“The ANCHOR property tax relief program excluded businesses, even though they pay nearly half the property taxes in the state,” said Siekerka. “This sends a strong message to businesses that they don’t have the support they need in Trenton.”
The outlook also found national factors and trends at play. Other key findings include:
- 93% of business owners or executive staff said they were substantially (45%) or moderately (48%) affected by inflation in 2022
- 58% said increasing prices for goods and services was the most effective way to offset rising costs
- A total of 83% said they were impacted by supply chain issues or delays in 2022
- Some 70% were challenged to find appropriate staffing in 2022
As for the main challenges facing New Jersey businesses, the survey found that, for the second straight year, overall cost of doing business was listed as the most troublesome problem, with 25% listing that first among their top four. Health insurance was No. 2 at 16%, followed by availability of skilled labor (14%), and property taxes, which had held the top spot from 2017 to 2020, now fourth at 11%.
The NJBIA says that no two words have been more concerning for the business community this year than “inflation” and “recession,” and the economic outlook in this survey bears that out.
Most (48%) rated New Jersey’s economy as fair, while 30% described it as poor. And when asked how New Jersey’s economy will fare in the first six months of 2023, only 16% reported it would be better, while 52% said it would be worse. That -36% net negative is the weakest outlook for New Jersey’s economy since 2009 during the Great Recession.
Respondents were asked how to improve affordability in the Garden State. The leading answers called for a reduction in corporate business taxes (19%), income taxes (17%), and property taxes (17%).
Siekerka said the survey results reflect the challenges businesses are facing and underscores the need for more help from policymakers to the business community.
“While state grants for targeted businesses are appreciated, they do not address the high cost of running a business in New Jersey, which is underscored by the highest business tax burden in the nation,” said Siekerka. “And they do not provide the comprehensive or targeted relief needed as we see more small businesses continue to close.”
