Doherty, AFP Call Foul On Sixers Deal

The Rutgers-Camden campus near the Delaware Riverfront

By Matt Rooney | The Save Jersey Blog

The Rutgers-Camden campus near the Delaware Riverfront
The Rutgers-Camden campus near the Delaware Riverfront

More of the same Robin Hood fiscal practices that landed New Jersey in its current predicament? Or a necessary evil given the Democrat legislature’s hostility to tax cuts? Perhaps a little of A and B?

Two voices from the political right are letting their opinions be heard on the subject, Save Jerseyans, and both are strongly opposed to the 110,000 square foot Philadelphia 76ers practice facility on the Camden waterfront.

Why? Because it’s being subsidized by $86 million in tax credits from the Economic Development Authority

“Governor Christie states that we have an $800 million budget shortfall” State Sen. Mike Doherty said in a characteristically-direct statement. “Then why is New Jersey providing an $82 million gift for a billionaire?”

The premise, critics assert, is flawed. “It’s regrettable that Gov. Christie and others in the Legislature continue to buy into the idea that these kinds of corporate welfare handouts will bring jobs and economic growth,” said AFP-NJ state director Daryn Iwicki. “If they were right, Atlantic City would be a bastion of prosperity today but it’s far from it.”

AFP-NJ’s criticism wasn’t reserved for the top Republican. “It’s also hypocritical to say the least to hear politicians like Sen. Norcross tell us this is a cure-all for Camden,” Iwicki added. “I thought this was the kind of ‘trickle down economics’ Sen. Norcross would otherwise decry. Yet, here he applauds a massive tax break to a billionaire while trying to sell that this will turn Camden around? If only Sen. Norcross were as willing to cut taxes for the rest of us, New Jersey might just be a lot better off and far more prosperous than it is right now.”

Don’t make the mistake of thinking it’s only an ideologically conservative thing. This issue unites folks on both sides of the aisle:

“In return for the team’s agreement to build a practice facility in Camden and shift 250 jobs across the Delaware River, New Jersey will match the team’s investment dollar for dollar, giving up $82 million in tax revenue over a decade in the process – despite the fact that the team is worth $469 million and hardly needs a tax break to build a facility.

This subsidy deal is among the worst we’ve seen under the Economic Opportunity Act. The net benefit to the state is incredibly low – $76.6 million over 35 years, according to the state’s own projections. That is, if the team even stays that long, since they will only be required to stay for 15 before they can seek tax breaks elsewhere. Each job promised in this deal is worth an astounding $328,000 in state tax dollars, despite having a median wage of just $45,000.”

There’s a lot of truth in there. The real problem, however, is that the Economic Opportunity Act itself shouldn’t have been a capstone; Republicans were hoping for a springboard to additional tax reforms. Unfortunately, Picking up seats in the legislature was a prerequisite, so maybe we can revisit saving Camden (and everyone paying for it) next decade after redistricting?

Matt Rooney
About Matt Rooney 8405 Articles
MATT ROONEY is SaveJersey.com's founder and editor-in-chief, a practicing New Jersey attorney, and the host of 'The Matt Rooney Show' on 1210 WPHT every Sunday evening from 7-10PM EST.

1 Comment

  1. Let’s put this ‘family and friends’ insider deal into perspective: Last year, Kansas City, Missouri, lured Freightquote, an online transportation broker of freight services, and its 1,225 jobs, from Lenexa, Kansas, just 12 miles away. None of the jobs were new to the metro area, but the move cost Missouri $64.3 million in city and state incentives. MO paid $64 million for 1,225 jobs to cross the state line and we pay $80+ million for 200 jobs to cross the state line….?????

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