The Burlington County Times features opinion-editorial by Robert Kasuba titled, "Save building industry, save NJ economy"
This opinion-editorial by Robert Kasuba originally appeared in the Burlington County Times.
Several prominent state legislators and real estate developers had frank discussions about the current state of residential development at the Atlantic Builders Convention on April 8, hitting on such important issues as home rule, property taxes, affordable housing and the state plan.
While the topics varied, one theme was consistent: A revitalized construction industry is key to the economic recovery.
Everyone knows New Jersey has been hit hard by the recession, and recent employment statistics are grim. The state's jobless rate has doubled over the past few years; there are more than 400,000 unemployed residents here. Well-paying jobs are not returning, while our neighbors in New York and Pennsylvania are finding ways to create more jobs.
Many of New Jersey's lost jobs have been in construction. There are simply too few new homes being built to create long-term employment. At the current rate, there will be about 10,000 new homes constructed in New Jersey in 2011. This is well below the 35,000 to 40,000 permits pulled annually for new homes before the recession hit.
Even in this troubled economy, many developers are willing to invest in New Jersey with major residential projects. Each project is an investment of millions of dollars, spurring the economy and creating new jobs.
Unfortunately, many of these job-creating projects are thwarted by local resistance to any new development that could potentially add children to public schools and create traffic. Other developments are delayed and jobs are ultimately lost in the state and local regulatory labyrinth, which adds about 20-25 percent to the cost of building in New Jersey.
The good news is that New Jersey lawmakers have the ability to reform policies, encourage construction and revive our economy. One potential solution is for the state to promptly review and, if appropriate, approve permits in smart- growth areas.
In fact, such a Fast Track law was enacted in 2004, but the law has been effectively ignored by the issuance of two executive orders. The excuse given is that state needs to first coordinate with the federal government to ensure that New Jersey's streamlined permitting procedure conforms to federal wetlands regulations.
Seven years have passed and yet there has been no word of any agreement with the federal government and no implementation of the Fast Track law. Perhaps such inaction could be somewhat excused when the economy was strong and the unemployment rate low. However, things have changed.
If the federal government will not agree to reasonable changes to expedite New Jersey's review of environmental and other state permits, New Jersey should consider rescinding its assumption of the federal program to regulate wetlands under the Clean Water Act.
Only New Jersey and Michigan have assumed the responsibility to administer wetlands permitting. This raises the question of why New Jersey voluntarily shoulders the burden of more government and regulation when its neighboring states do not.
By revoking its assumption of administering wetlands permitting, New Jersey can reduce Department of Environmental Protection staff and streamline the state's review of permits for developments in smart-growth areas. There will be no hurdle to New Jersey's implementing the Fast Track law and helping revive the construction industry and its economy.
One panelist at the builders convention noted that the state is past the point where it can resuscitate the construction industry. For the sake of any family struggling in this recession, let's hope he's wrong.

