NJ Gov. Phil Murphy Vows Veto As Showdown Looms Over Taxes

New Jersey Gov. Phil Murphy is vowing a veto now that his battle over taxes – especially his tussle with lawmakers over a controversial tax-incentive program – with the state Legislature continues.

Murphy is vowing to veto legislation that would extend the tax-incentives now that a task force suggested that the program was, in the governor's words, "rigged" to possibly benefit businesses connected to South Jersey power broker George Norcross.

Norcross is a childhood friend and a strong ally of Senate President Stephen Sweeney, who has promoted and supported the program. Read more: Report Says Program Provided Big Benefits To NJ Political Boss

"This is a rigged system. This was designed by special interests to benefit special interests. It allowed hundreds of millions of dollars to flow to insiders based on misleading, false, ommited or fabricated information," Murphy said. "This system cannot be allowed to continue for one day past June 30th."

"If the legislature sends me a bill to renew this system as is, without the necessary reforms, it will be vetoed," he added.

Murphy also took aim at the legislature's proposed budget, which could get a vote on Thursday. The plan cuts funding proposals to school districts that were pushed by Murphy and also does not include the governor's plan for a millionaire's tax. Read more: NJ Government Shutdown Looms As Gov. Murphy Offers Tax Hike Deal

Murphy said the budget has "voodoo math," adding: "There's a lot ... kicking the can down the road."

As for his own plans with the legislature's budget, Murphy said: "All options are on the table." Read more: Lawmakers Reject NJ Gov. Phil Murphy's Taxes – Except For 1

In his tax-incentive criticism, Murphy targeted a bill (A-5343) sponsored by Assembly Democrats Eliana Pintor Marin and Roy Freiman that would extend the application deadlines for the Grow New Jersey Assistance Program and local Economic Redevelopment and Growth (ERG) grant program to Jan. 31, 2020. Both programs are due to sunset on July 1.

Grow NJ and ERG were established under the Economic Development Authority in 2011 and 2009 respectively as a response to the 2008 economic recession. Grow NJ is a job-based tax credit program, and ERG offers incentive grants to developers, according to lawmakers.

Both programs aimed to stimulate the economy and help New Jersey recover from the recession, lawmakers said.

Targeted tax incentives have attracted major corporations to distressed areas, including Subaru, American Water, Holtec and the Philadelphia 76ers to Camden. Companies like Prudential and Panasonic chose to remain in New Jersey thanks to business incentives, lawmakers say.

“While we cannot ignore the incredible impact these programs have made on cities like Newark and Camden, we’re going to need more time to adequately address ongoing concerns about Grow NJ and ERG,” said Pintor Marin, D-Essex. “It’s only fair to extend them a little longer so we can evaluate how to improve our initiatives going forward.”