Summary
Actual job-creation numbers are not an indicator of the BEIP's effectiveness, he says. "In an environment where the states economy is already slowing, an incentive program may look like it is not working," he says. "But if [job numbers] go down at a slower pace than they would have without the incentives, then indeed the incentive program is working."
Companies that withdrew BEIP applications after getting approvals included financial services giant Bear, Stearns & Co. Inc. of New York City, which fouryears ago promised to create 500 jobs with near- ly $85 million in project investments in Jersey City, and Pfizer Inc., which talked of 200 newjobs and $180 million in investments in Morris Plains. Sometimes a company will sound interested in one state j ust to get another state to make a higher offer," says Shure, a long-time critic of BEIR He says the NJEDA should increase both the $500 application fee and the $500 commitment fees for the program "because of the amount of staff time and energy used.See the full content of this document
Extract
Beip Candidates Promise, Often Don't Deliver
NEW JERSEY'S Business Employment Incentives Program (BEIP) is one of its main tools for bringing jobs to the state. But many companies that win approvals for such grants never follow through. They quietly drop their plans, scale them back or decide to make their investments in another state.
Data from the New ...See the full content of this document
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