Companies that got huge tax breaks in NJ's poorest city barely employ its residents

Many of the companies that received multimillion-dollar tax breaks in Camden, New Jersey, only employ a handful of local residents, according to new data released by the city on Tuesday.

The newly released disclosures show that of the dozen companies that received corporate tax breaks starting in 2014, half had fewer than a dozen Camden residents working for them in 2022. Local activists say that's a paltry amount for a program that was supposed to spur economic development in the city.

Community activists have long been skeptical of the Gov. Chris Christie-era program that steers $1.6 billion in tax breaks to Camden businesses and say the lackluster local hiring numbers demonstrate that the program is failing to create a stronger job market for people living in New Jersey’s poorest city.

“Giving giant tax incentives to large corporations in the vague hope that they hire your residents is not good policy,” said Sue Altman, executive director of New Jersey Working Families Alliance. When the tax breaks were being awarded, Altman lived in Camden and was part of the local opposition to the tax breaks.

Billed in 2014 as a critical investment that would propel New Jersey’s poorest city into a new era, the tax break program did not require businesses that relocated to Camden to hire local residents. But a grassroots signature petition forced Camden city officials to begin releasing local hiring disclosures online over the past month.

“This isn’t just a test case for New Jersey and for Camden. This should be a test case for the country,” said Altman, whose organization is a member of Camden We Choose, a coalition of grassroots groups that petitioned the city for the disclosures.

Ayinde Merrill, a Camden resident and president of Watu Moja — a nonprofit organization that provides support for young people in the city — worked on the signature gathering campaign and said he’s not surprised by the job numbers.

“When we went door knocking for signatures, this is what the residents expressed, that they don’t get jobs at these local companies — and I just think if you're really going to invest in the community, invest in it full-heartedly and honestly,” Merrill said.

The latest disclosures show that roughly 1% of Subaru’s workforce during the second half of 2022 were Camden residents. Subaru, which received a $118 million tax break in 2014, employed just 10 Camden locals out of its 786 employees in the city.

In response to questions over its hiring practices, the company said in a statement that it donated $5.2 million to organizations in the city, where roughly a third of all residents live in poverty.

“It’s our commitment to improving the lives of those around us, not just with donations, but with actions that bring us closer to the community and encourage others to get involved to increase the cumulative impact,” said Diane Anton, the corporate communications manager for Subaru.

The Philadelphia 76ers organization received an $82 million tax break in 2014 to move its practice facility to Camden. The NBA team employed 11 residents out of its 275 employees in the city.

A spokesperson for the team said in a statement that it plans to “develop” its workforce and pledged to support local nonprofits.

“Understanding the critical importance of further developing the workforce in Camden, we have partnered with local leaders to create and support infrastructure programs to train, prepare and connect Camden residents with stable, rewarding jobs,” said Molly Mita McEndy, the senior director of corporate communications for the 76ers. “We will continue those efforts with a $1 million pledge over the next three years to support vital community organizations such as Camden Works, Hopeworks and Urban Promise.”

The most recent disclosures also show that the multibillion-dollar defense contractor Lockheed Martin received a $107 million tax break and employed just three Camden residents at the end of 2022. Meanwhile, American Water Works received a $164.1 million tax break and employs seven residents.

The New Jersey Economic Development Authority, which runs tax incentive programs statewide, did not respond to requests for comment this week about the Camden jobs.

The Camden tax breaks have a long and storied history.

George E. Norcross III, a wealthy insurance executive who has run a powerful political machine in south Jersey for more than 30 years, championed the measure. In 2013, his brother Donald — now a member of Congress — sponsored the state legislation and a third Norcross brother, Phil, is the managing director of a law firm that helped write the bill. The legislation took the existing corporate tax break program and gave special benefits to companies that moved to Camden.

In 2019, WNYC and ProPublica reported on the dozen companies connected to the Norcross family in a variety of ways that received $1.1 billion in tax breaks.

Conner Strong & Buckelew, the insurance company owned by George Norcross, received an $86.2 million tax break in 2017. The company's disclosure says it employed six Camden locals out of its 402 employees in 2022.

Norcross used the tax break to build an office tower on the Camden waterfront, along with two other business partners. One of those partners, NFI LP — a trucking and logistics firm — received a $79.3 million tax break and now employs nine Camden residents out of its 524 member workforce in the city.

On the other hand, some of the companies that received large tax breaks do employ more local residents.

Holtec International, which makes nuclear power plant equipment, received $260 million, the second largest tax break in New Jersey history. The company employs 37 Camden residents out of its 1,623 employees. Eastern Metal Recycling, which salvages car materials, employs 186 residents out of its 648 workforce.

Gov. Phil Murphy appointed a task force in 2019 to investigate the tax break program. The task force sent its findings to the attorney general's office, recommending a criminal investigation into whether some companies fraudulently threatened to leave the state to obtain a tax break. But to date, the attorney general’s office has not announced any related charges.