News Release: September 2, 2003
Contact: Steve Wilson, ext. 245New Jersey Business & Industry Association President Philip Kirschner today praised legislation reinstating funding for the Business Employment Incentive Program (BEIP) as it was signed into law by Governor James E. McGreevey at a bill signing ceremony in Hoboken.
McGreevey signed S-2669 (Littell, Kenny)/A-3705 (Sires, Guear, Fisher) at the world headquarters of John Wiley & Sons Inc., a publisher of medical books and periodicals and an NJBIA member. The company recently moved its world headquarters from New York City to Hoboken using BEIP grants to help make the plan work.
"BEIP provides something that our state and our economy needs-jobs. For every BEIP grant we fund, there is a real person with a real family who gets a real job," Kirschner said. "This is one of the state's best tools for attracting new businesses and helping existing businesses to expand and grow. Best of all, the program pays for itself."
"On behalf of the business community, I want to thank the bills sponsors-Senators Robert Littell and Bernard Kenny, Assembly Speaker Albio Sires, and Assemblymen Gary Guear and Douglas Fisher," Kirschner said. "I also want to thank Governor McGreevey for recognizing the value of the program and working to strengthen it."
BEIP is one of the state's most effective economic development programs. Participating businesses receive incentive grants for creating at least 25 new jobs. The payments can equal as much as 80 percent of the state income taxes generated by the new employees. Since no payments are made to the employer until the new employees work one full year, the program pays for itself. About $38 million in grants were funded this year.
Early in the year, BEIP funding was in jeopardy as the Governor and lawmakers looked for spending cuts to help balance the budget. NJBIA pushed hard to maintain the program, arguing that BEIP grants more than paid for themselves by generating new tax revenues.
Under the new law, any year in which the Legislature does not appropriate BEIP funding, the EDA would provide the payments by issuing contract bonds. The bill would eliminate the possibility of the state reneging on its BEIP obligations in the face of some future budget crisis.
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