|America's independent, non-partisan advocate for overburdened taxpayers.||Home | Donate | RSS | Log in|
In New Jersey, 76ers Come First, Taxpayers Second
June 18, 2014
Various ideas are cropping up in the New Jersey legislature to close the looming $2.7 billion budget gap for fiscal year 2015, and Governor Christie has had to cut pension payments to pay for this year’s $800 million shortfall. Despite these fiscal woes, the state has approved an $82 million gift (paid in yearly $8.2 million installments) for the Philadelphia 76ers basketball team to build a training facility in Camden. While legislators debate raising income taxes on millionaires and an e-cigarette tax, Governor Chris Christie lauded the 76ers decision, which he believes will bring “additional revenue and other things and business for the city of Camden.” The New Jersey Economic Development Authority voted unanimously in favor of the grant, given their authority by the Economic Opportunity Act of 2013.
Local politicians believe the construction of the training facility will boost the economy in Camden, where unemployment continues to soar above national rates at 16 percent. For $82 million, the 76ers facility will bring only about 250 jobs to Camden, 200 of which are already filled by players and current members of their staff, according to reports. Still, Governor Christie and Camden’s own representatives believe that the facility will revitalize the area, bringing in new businesses to meet the demands of people visiting and working in the facility. Camden Mayor Dana L. Redd asserts, “The ancillary services that are going to be needed provide a great opportunity for small businesses, to reap rewards. There's going to be a spill-over effect."Based on the area’s current attractions, however, a spill-over effect seems unlikely. The 76ers’ training facility will be built at the Camden waterfront, a long-time local attraction. At the waterfront currently sits the Adventure Aquarium and Susquehanna Bank Center, along with the Battleship New Jersey and the Camden Children’s Garden. Despite the jobs these brought to Camden when they were first built, the existing attractions have done little to improve economic growth in the area. The state currently predicts the deal will bring in $76.6 million in benefits over 35 years. In the end, New Jersey will give the Sixers an $8.2 million per year tax cut, only to see approximately $2.19 million per year in net benefits. Next time, before catering to a multi-million dollar franchise, perhaps Governor Christie should give his own heavily-taxed constituents a break.
Comment on this blog