New Jersey Archives - Talk Poverty https://talkpoverty.org/tag/new-jersey/ Real People. Real Stories. Real Solutions. Fri, 10 Jul 2020 14:37:52 +0000 en-US hourly 1 https://cdn.talkpoverty.org/content/uploads/2016/02/29205224/tp-logo.png New Jersey Archives - Talk Poverty https://talkpoverty.org/tag/new-jersey/ 32 32 A Tax Break Took New Jersey’s Poorest City From Zero Grocery Stores To… Zero Grocery Stores https://talkpoverty.org/2019/06/28/new-jersey-tax-break-food-desert/ Fri, 28 Jun 2019 15:45:27 +0000 https://talkpoverty.org/?p=27764 Camden, located in the southern part of New Jersey, just across the Delaware River from Philadelphia, is one of the poorest cities in the state, if not the whole U.S. The median income there is just $26,000, compared to $76,000 in the rest of New Jersey, and the poverty rate is above 37 percent. In the 2013-2017 period, per capita income in Camden was just $14,405.

But income isn’t the only issue: Camden is also infamous for being a “food desert.” According to the U.S. Department of Agriculture, huge swathes of the city are populated by people who live in low-income neighborhoods, don’t have a car, and don’t have a grocery store within half a mile of their homes.

New Jersey lawmakers have been trying to “help” Camden for what feels like forever, and one of their ideas was to use tax incentives to entice new grocery stores into the city. But instead of bringing in new shopping options and addressing entrenched inequality, the effort showed how giving tax breaks to private corporations doesn’t help local economies or reduce poverty.

First, some background. At the behest of Gov. Phil Murphy (D), a task force is looking into New Jersey’s corporate tax incentive programs, which, in theory, use tax breaks to entice and retain businesses, thus creating jobs and boosting incomes. What the task force has found so far is that those programs are a total mess: Instead of creating good jobs for residents of the state, they’ve allowed connected lawyers and lobbyists to direct tax breaks to their clients, who often broke their job creation promises, all at an exorbitant cost to taxpayers.

Case in point: The effort to bring a grocery store to Camden. In its first official report, the task force noted that a provision of a 2013 rewrite of New Jersey’s corporate tax incentive programs specifically addressed grocery stores in Camden, under a program called Grow NJ. But a politically connected law firm called Parker McCay — whose CEO happens to be the brother of a prominent New Jersey Democrat — “drafted large swaths of the [tax incentive] bill in various respects that appear to have been intended to benefit the firm’s clients,” according to the task force. That included shaping the grocery store provision to explicitly help its client, ShopRite, and prevent other grocery stores from benefiting from the tax break.

Here’s what the law firm allegedly did: It represented a joint project to have a ShopRite anchor a larger retail area in Camden, which was announced before the state legislature rewrote New Jersey’s tax incentive programs. That project, per the task force “was planned to be over 150,000 square feet, with at least 50 percent occupied by the grocery store.” Another developer was, at the same time, pushing a smaller project that also included a grocery store.

When New Jersey’s new tax incentive programs were later announced, the criteria for grocery stores were very specific. Grocers only qualified if they were “at least 50 percent” of a larger retail development “of at least 150,000 square feet” — the exact specifications that ShopRite had planned. (At the time, the average grocery store in the U.S. was 46,000 square feet.) As a result, the incentive explicitly helped ShopRite and rendered its competitor ineligible for the tax break, even though either project would also have fulfilled the goal of opening a supermarket in an underserved area.

Ultimately, ShopRite didn’t follow through on its Camden project, and neither did the second store that was made ineligible for subsidies. So the end result was no new grocery store in Camden at all. Instead, a sealant company took the site ShopRite would have used, thanks to $40 million in tax breaks; per the Philadelphia Inquirer, “No explanation has been provided for why the ShopRite project collapsed.” (In 2014, a PriceRite opened in Camden that was also too small to qualify for the tax breaks ShopRite would have enjoyed.)

Camden’s grocery stores were one of many examples in New Jersey’s incentive programs in which private concerns trumped the public interest. As the task force put it in its report: “Certain aspects of the Grow NJ program’s design are difficult to justify from a rational policy perspective and can be understood only as the result of a process in which certain favored private parties were permitted to shape the legislation to their benefit — and further, in some cases, to disfavor potential competitors.”

New Jersey lawmakers took a dubious idea and made it worse.

Sadly, such inside wheeling and dealing is a standard part of corporate tax deals. In fact, according to a study by the Kansas City Federal Reserve, an increase in a state using corporate tax incentives is correlated with an increase in its officials being convicted of federal corruption crimes. That connection makes a certain sort of sense, since corporate tax incentives are targeted to specific industries, if not specific companies, making a coziness between elected officials and corporate interests nearly inevitable.

But inside dealing aside, was using tax breaks to entice grocery stores into Camden even a promising strategy? A growing body of research says probably not.

One problem inherent in tax incentives is that they often go toward “incentivizing” actions that the business receiving them would have taken anyway, for other reasons. A study by Timothy Bartik at the W.E. Upjohn Institute for Employment Research found that at least 75 percent of incentives wind up merely being free money for companies that planned to take such action regardless of the incentive. That’s also true with grocery stores: A 2017 study found that up to about 70 percent of grocery stores that entered low-income areas due to the federal New Market Tax Credit likely would have done so even in the absence of the credit.

There’s also plenty of evidence that bringing grocery stores into food deserts isn’t necessarily the panacea for those areas that advocates claim it is. Higher-income and lower-income households actually spend about the same amount of money on average in supermarkets: 91 cents of every dollar spent on groceries versus 87 cents, respectively. They also travel roughly the same distance to those stores, on average.

So simply bringing a store into the neighborhood cuts down on travel costs, but doesn’t have all the ancillary benefits — better diets and better health — that policymakers claim will occur. Diet is much more closely connected to the amount of money a household has and in what region of the country it’s located.

“The primary factors are economic and time constraints that are affecting people, not geographic barriers, in wealthy countries,” said University of Iowa College of Law Adjunct Professor Nathan Rosenberg. “The more studies that have been done, the stronger those studies are, and the better the data we have, the more clear that’s become.”

In 2018, Rosenberg argued in a paper he co-wrote with Nevin Cohen entitled “Let Them Eat Kale” that incentives for grocery stores get the food access solution precisely backward. Instead, Rosenberg and Cohen noted that boosting wages, strengthening worker protections, and increasing funds for programs such as those providing school lunches will all do more to address the root causes of food-related inequality.

So New Jersey lawmakers took a dubious idea, made it worse by allowing politically connected players to influence the process, and wound up achieving nothing for the people of Camden. Sadly, that’s often how programs like Grow NJ shake out: Good for the rich and connected, and leaving everyone else hungry for better solutions.

]]>
New Jersey Now Offers Paid Leave for All Families — Including Chosen Ones https://talkpoverty.org/2019/02/19/new-jersey-paid-leave-chosen-family/ Tue, 19 Feb 2019 21:35:59 +0000 https://talkpoverty.org/?p=27341 New Jersey is a state of “mosts.” The most epic rest stops. The most tanned beach goers. The most envy of New York. But now it is has a new most to add to its name: state with the most inclusive paid family leave in the nation.

Today, thanks to the efforts of local advocates led by the NJ Time to Care Coalition, New Jersey Gov. Phil Murphy (D) signed into law dramatic improvements to New Jersey’s paid family leave law. The law doubles the length of paid family leave available to 12 weeks, increases the average weekly benefit to $859 from $632, improves supports for domestic violence survivors and their families, and more.

One of the most exciting policy advances is that the bill updates the definition of “family” to people who “have a close association with the employee which is the equivalent of a family relationship,” making New Jersey the first state in the nation to extend paid family leave benefits to chosen family. This new law will particularly improve the economic security of workers who are LGBTQ or who have a disability, as these workers are most likely to be forced to make the impossible choice between caring for a chosen family member and taking home a paycheck.

New Jersey’s victory is standing on the shoulders of decades of legal precedent. The U.S. government first recognized chosen family during Vietnam, allowing federal workers to take leave for the funerals of loved ones killed in combat if those people had “a close association with the employee … equivalent to a family relationship.” More federal benefits incorporated this definition in the 1990s, and in the last few years a host of states and localities, such as Arizona, Chicago, and Austin, have passed paid sick time laws that are inclusive of chosen family.

What is chosen family anyway? Simply put, it’s those people in your life you would do anything for. For me, one of those people is my college roommate, Diana. When my mom had a potentially fatal cerebral hemorrhage the month before finals our senior year, Diana dropped everything and drove with me nine hours to the hospital. When Diana’s son was born prematurely at just 24 weeks, I took time off work to help support her and her family. Diana and I have been family for more than 20 years — longer than I’ve known my husband, my stepmother, or any of my nieces and nephews — but until now no state in the country would have let us take paid family leave to take care of each other.

Millions of people across the country have an elderly neighbor who is more like a grandmother or a battle buddy they served with in the military.

And Diana and I aren’t alone — millions of people across the country have an elderly neighbor who is more like a grandmother or a battle buddy they served with in the military. In fact, research Laura Durso and I conducted shows nearly one in three Americans have taken time off work to care for chosen family. While caring for chosen family is a shared experience, it is especially common among LGBTQ workers and workers with disabilities, due in part to family rejection, making this advance particularly important for those communities.

While this bill makes New Jersey a trailblazer on paid family leave and chosen family, this is the latest step for the movement to increase recognition of the importance of supporting diverse family structures in legislation. Historically, of course, diverse families have always existed, but the law has at best ignored them and at worst actively harmed them, from denying cash benefits to unmarried mothers to defining marriage as a union limited to one man and one woman. While harmful family policies still exist, increasing legal recognition of chosen family is a bright light.

Of course, these legal changes were not happening in a vacuum. In the media, chosen family rose to the spotlight as the name of Noreen Stevens’ cartoon about Canadian lesbians and their loved ones, and is in evidence today on FX’s award-winning Pose, about New York City ball culture, as well as in media that isn’t queer-specific. (X-Men or Fast and the Furious, anyone?) And more to the point, it’s the reality of people’s lives, perhaps made most painfully, tragically clear during the height of the AIDS epidemic, when chosen family were denied visitation rights in hospitals despite their family-like relationships.

New Jersey has made a great start. Who’s next?

]]>