New Jersey's business groups welcomed news Tuesday from Gov. Chris Christie that the state's Unemployment Insurance Trust Fund had reached a surplus of about $1 billion and would lead to a roughly $200 million tax cut for employers.
“This positive development means employers will pay less into the fund and will instead invest more in their businesses and in New Jersey's economic growth,” said New Jersey Chamber of Commerce CEO and President Tom Bracken.
“That’s money that is being reinvested in creating new jobs and building New Jersey’s economy,” added New Jersey Business & Industry Association CEO and President Michele Siekerka.
Previously insolvent, the fund reached its peak deficit of $2.1 billion in 2011. Since then, approximately $800 million has been prevented from being improperly diverted from the trust fund by antifraud measures, according to the administration.
Christie made the announcement Tuesday at JP Morgan Chase in Jersey City.
“The continued sound financial management of the unemployment insurance fund also ensures New Jersey businesses will not be hit with additional payroll taxes during a recession, when they can least afford it,” said Siekerka.
Senate Minority Leader Tom Kean Jr. (R-Westfield) noted that it was a constitutional amendment he sponsored in 2010 and supported by voters at the ballot box that began the process of protecting the fund from inappropriate diversions.
“Our ballot measure to prohibit the state from raiding the UI fund was the first step in restoring the fund to solvency,” said Kean. “That forced discipline has brought us to today, with a $1 billion surplus and a tax cut that will boost the New Jersey economy.”