Article from myCentralJersey.com
Every dollar cut from New Jersey's annual budget is not a dollar saved for the cash-strapped state. No, indeed. Some line items pay for themselves, and many times over, by the way. Count among those expenditures what Trenton allots every year for support of the New Jersey SBDC, otherwise known as its Small Business Development Centers — primary engines of creating new companies, of guiding others to prosperity, and of growing new jobs for the Garden State while saving others from vanishing completely.
So when the SBDC's support was slashed in half as part of this year's state budget, and when Gov. Jon S. Corzine followed up by cutting it again by another half, what was once a $1 million line of assistance a year ago has now shriveled down to a measly $250,000. For those who know business, and for those who depend on business, Trenton's actions have been a disaster. Worse, the next budget cycle threatens again, and thus far, though members of the Legislature seem to understand the SBDC's vital role, the governor's office has flatly refused to even sit down with the group's officers and discuss the SBDC's funding, according to Deborah K. Smarth, its associate state director.
Lousy portent? Absolutely. Foolish, too. During a 15-month period when New Jersey has shed nearly 140,000 jobs from its private sector, when companies have left in droves, and when tax revenues due the state have tumbled precipitously amid the recession, Corzine and his crew have failed to recognize they need to give a little to get a little back, largely ignoring this tried-and-true method. The evidence?
Money directed the SBDC's way isn't money thrown down a hole; rather, for every dollar placed in the SBDC's hands, New Jersey earns a hearty $2.53 in economic growth as its return. Wall Street should do so well. Heck, so should some "financial guru" governors.
But nope. Know who does get it, though? Washington. Yup. Thanks to the new Congress and in no small part to the new president, the federal government has promised New Jersey's SBDC an additional $330,000 in funding for next year — part of its overall stimulus push — but it is a figure unfortunately that is not guaranteed, not unless Trenton comes up with sufficient capital of its own. In other words, these federal funds are matching funds, at 50 cents to every home-grown dollar. So if state and private sources of funding from within New Jersey border's don't supply enough of the required cash, those federal funds due the New Jersey SBDC will be redistributed to other states. What's ironic about such a scenario, and wholly distressing as well, is that most other state's already spend far more than New Jersey does on their Small Business Development Centers, yet they would get even more. Much less wealthy Georgia, for instance, already plunks down $1.8 million for its SBDC. And New Jersey, with all of its supposed wealth and zeal for enterprise, is unwilling to pony up? Please. How weak.
New Jersey's SBDC operates 11 assistance centers throughout all parts of the state. It is estimated that the state's dollar cuts would prevent the network from assisting at minimum 3,600 small business owners, resulting in the creation of 2,600 fewer jobs.
One would think that against this backdrop decision makers in Trenton would be doing everything within their power to promote enterprise, restoring New Jersey's competitive edge and its ability for a healthy commercial base to once again fund the state's many needs. Key to any such effort is New Jersey's Small Business Development Centers, but a paltry $250,000 isn't enough. The governor must see the SBDC for what it really is and for what he claims to know about oh so well — as a crucial, timely, sage investment for the present and for the future. Increase its funding. Otherwise, New Jersey must prepare for the further deterioration of its small businesses climate and the general welfare of the entire state.
Every dollar cut from New Jersey's annual budget is not a dollar saved for the cash-strapped state. No, indeed. Some line items pay for themselves, and many times over, by the way. Count among those expenditures what Trenton allots every year for support of the New Jersey SBDC, otherwise known as its Small Business Development Centers — primary engines of creating new companies, of guiding others to prosperity, and of growing new jobs for the Garden State while saving others from vanishing completely.
So when the SBDC's support was slashed in half as part of this year's state budget, and when Gov. Jon S. Corzine followed up by cutting it again by another half, what was once a $1 million line of assistance a year ago has now shriveled down to a measly $250,000. For those who know business, and for those who depend on business, Trenton's actions have been a disaster. Worse, the next budget cycle threatens again, and thus far, though members of the Legislature seem to understand the SBDC's vital role, the governor's office has flatly refused to even sit down with the group's officers and discuss the SBDC's funding, according to Deborah K. Smarth, its associate state director.
Lousy portent? Absolutely. Foolish, too. During a 15-month period when New Jersey has shed nearly 140,000 jobs from its private sector, when companies have left in droves, and when tax revenues due the state have tumbled precipitously amid the recession, Corzine and his crew have failed to recognize they need to give a little to get a little back, largely ignoring this tried-and-true method. The evidence?
Money directed the SBDC's way isn't money thrown down a hole; rather, for every dollar placed in the SBDC's hands, New Jersey earns a hearty $2.53 in economic growth as its return. Wall Street should do so well. Heck, so should some "financial guru" governors.
But nope. Know who does get it, though? Washington. Yup. Thanks to the new Congress and in no small part to the new president, the federal government has promised New Jersey's SBDC an additional $330,000 in funding for next year — part of its overall stimulus push — but it is a figure unfortunately that is not guaranteed, not unless Trenton comes up with sufficient capital of its own. In other words, these federal funds are matching funds, at 50 cents to every home-grown dollar. So if state and private sources of funding from within New Jersey border's don't supply enough of the required cash, those federal funds due the New Jersey SBDC will be redistributed to other states. What's ironic about such a scenario, and wholly distressing as well, is that most other state's already spend far more than New Jersey does on their Small Business Development Centers, yet they would get even more. Much less wealthy Georgia, for instance, already plunks down $1.8 million for its SBDC. And New Jersey, with all of its supposed wealth and zeal for enterprise, is unwilling to pony up? Please. How weak.
New Jersey's SBDC operates 11 assistance centers throughout all parts of the state. It is estimated that the state's dollar cuts would prevent the network from assisting at minimum 3,600 small business owners, resulting in the creation of 2,600 fewer jobs.
One would think that against this backdrop decision makers in Trenton would be doing everything within their power to promote enterprise, restoring New Jersey's competitive edge and its ability for a healthy commercial base to once again fund the state's many needs. Key to any such effort is New Jersey's Small Business Development Centers, but a paltry $250,000 isn't enough. The governor must see the SBDC for what it really is and for what he claims to know about oh so well — as a crucial, timely, sage investment for the present and for the future. Increase its funding. Otherwise, New Jersey must prepare for the further deterioration of its small businesses climate and the general welfare of the entire state.
