Andrew Kitchenman`s is the Statehouse correspondent for NJBIZ, which he joined in May 2009. He previously worked as a reporter at The Times of Trenton and the Journal Inquirer of Manchester, Conn., and as an editor for Sun Newspapers (now Sun-Gazette) in Northern Virginia. He has a master`s degree in journalism from Columbia University and a bachelor`s degree from St. Mary`s College of Maryland. He grew up in Willingboro and in Bucks County, Pa. 
Several state incentive programs would be reduced or eliminated under Gov. Chris Christie’s $29.3 billion budget.
The budget would not add any money for the Business Employment Incentive Program for the next fiscal year, although the program would be preserved. While companies could still apply for BEIP grants, the funding would depend on whether previously approved grants fall through. BEIPs are given to companies that move jobs to, or create jobs in, the state.
Lt. Gov. Kim Guadagno emphasized to business executives gathered at a post-budget-message reception held by The Business PAC of New Jersey that everyone in the state has been asked to share sacrifices in the budget.
“Everyone should be complaining equally,” Guadagno said, adding that the only way the budget is balanced without tax increases is if it doesn’t favor any special interests.
The budget would eliminate the InvestNJ and film production tax credits and halve the amount for the Technology Business Tax Transfer Program from $60 million to $30 million. The film production credits totaled $15 million in the current budget.
The Main Street Business Assistance Program would receive $22 million from the InvestNJ program. InvestNJ had provided $3,000 to companies for each employee they hired but was judged by the Christie administration to be ineffective.
Assemblyman Upendra J. Chivukula (D-Somerset) expressed disappointment in the elimination of the incentive programs, saying that the film credits were intended to make the state a filmmaking and digital-media destination. He added that the absence of more BEIP funds would make it more difficult to attract and retain companies.
“Those things will have long-term effects,” Chivukula said. “Whatever you’re trying to do now, you won’t feel right away – you will feel it in the long term.”
The New Jersey Economic Development Authority has found a high demand from banks and businesses for the Main Street program, according to state Treasurer Andrew Sidamon-Eristoff.
In addition, the 3.5 percent Urban Enterprise Zone sales tax would not be returned to the zones for economic development projects.
The Regional Greenhouse Gas Initiative funds, which have been used to fund energy-efficiency and environmental-protection projects, would be used to balance the budget. Chivukula also criticized this change.
“It will set us back from a climate change perspective, and equally importantly, in creating jobs,” Chivukula said.
Guadagno and other state officials are planning a review of incentive programs to determine how to use them most effectively, according to administration officials. All incentive programs will be included in the New Jersey Partnership for Action, an umbrella organization to be led by the lieutenant governor.
E-mail Andrew Kitchenman at akitchenman@njbiz.com.
(Christina Mazza/NJBIZ photos)
