TRENTON — Democrats today said they were exercising oversight when they refused to approve the Economic Development Authority’s request to allocate $13 million in bond money for business development programs, claiming they weren’t given enough details about how the money would be spent. But Republicans suspected there was an element of revenge, with Democrats holding out because they were...
Clik here to view.
Assemblyman Louis D. Greenwald speaks during an Assembly Budget Commmittee hearing in this December 2010 file photo. TRENTON — Democrats today said they were exercising oversight when they refused to approve the Economic Development Authority’s request to allocate $13 million in bond money for business development programs, claiming they weren’t given enough details about how the money would be spent.
But Republicans suspected there was an element of revenge, with Democrats holding out because they were still bitter over Gov. Chris Christie’s veto of their package of their bills meant to spur job growth.
"If dealing with business can be subject to the whims of politics and (the committee), then we’re in a sad state of affairs," said Assemblyman Joseph Malone (R-Burlington), a committee member. "The biggest problem we have with business right now is a total lack of trust."
Assembly Budget Chairman Lou Greenwald (D-Camden) said the move was based on economics, not politics.
"I can imagine the governor’s response if we passed legislation for $13 million and said ‘We’re going to get back to you and tell you what we’re going spend it on.’ I’m pretty sure that would be vetoed soundly," he said.
In a party-line vote of 4-2, the panel turned down the authority’s request, which would have allowed it to use the money to fund three programs. Greenwald invited the authority’s CEO, Caren Franzini, to return with more details.
Malone said the Democrats were sending "the wrong message to business that the state of New Jersey really is not a partner that you can trust."
The authority wants to use money left over from a $50 million bond issue in 2004. It would have been used for matching loans to life science companies funded in part by "angel investors" who invest in startups in exchange for a stake in the company; provide seed money for a technology park at the soon-to-be-closed Fort Monmouth; and fund small grants and a mentorship program for information technology and web-based startups.
The authority did not say how much money would be spent on each program. Spokeswoman Erin Gold said officials would provide a breakdown of how the funds would be spent to the legislature.
A Democrat-sponsored bill that would have given tax credits to angel investors (S2454) was vetoed by Christie last month. Senate Budget Committee Chairman Paul Sarlo (D-Bergen) said the EDA program would be less effective because it rewards businesses that have already secured the investors.
"The bottom line is the governor couldn’t come to terms with signing a piece of our legislation that does exactly what they wanted to accomplish today," he said.
Previous coverage:
• N.J. entrepreneurial activity declines, trails national rate, report says
• N.J. Democrats, Republicans battle over failed override of vetoed jobs bills
• N.J. Senate is unable to override 5 job creation bills Gov. Christie vetoed
• GOP Assembly leader says attempt to override of Gov. Christie's veto of job growth bills will fail
• N.J. Democrats are unlikely to succeed in overriding Gov. Christie's veto of job creation bills
• N.J. Democrats question Gov. Chris Christie's veto of job creation bills
• Christie vetoes 'irresponsible' Democrat-backed bills to cut taxes, stimulate job growth
• Gov. Christie pushes tax waiver for N.J. businesses in financial hardship
• Business tax cut to be included in Gov. Christie's budget this year
• N.J. Assembly passes bill that could give companies major tax break
• Gov. Christie cites N.J. job growth in past month as proof his policies are working
• N.J. Republicans troubled by price tag of Assembly job creation bill