Assemblyman Greg McGuckin said on Mar. 26 that recent state decisions have favored large sports franchises over students in Republican districts, citing a new law granting $300 million in tax subsidies to the Prudential Center while school aid remains capped.
McGuckin argued that state funds which could have supported schools in districts like Brick and Toms River were instead allocated to tax breaks for the Newark-based venue. He said, “There’s only one certain venue in New Jersey that met the bill’s requirements, and that’s the Prudential Center. I missed the part where the state is constitutionally required to provide thorough and efficient tax breaks for a hockey team’s building.”
The Prudential Center is managed by Harris Blitzer Sports & Entertainment LLC (HBSE), owner of several sports franchises including the New Jersey Devils. HBSE could receive a tax credit equal to 80% of eligible upgrade costs or up to $300 million. McGuckin stated, “HBSE doesn’t need the break,” adding, “You know who does need a break? The taxpayers in Republican districts who have been getting screwed by the school funding formula, and their children who are getting screwed by bigger class sizes and program cuts.”
The S2 school funding formula signed into law in 2018 was intended to create equity but has led to significant reductions for some districts while increasing funds for others such as Newark. Toms River schools reportedly lost $175 million over seven years resulting in staff cuts and larger class sizes; Brick is under adequacy by $28 million. Last year, Governor Phil Murphy imposed caps on increases (6%) and decreases (3%) in aid—a policy his successor Mikie Sherrill will continue—resulting in both Toms River and Brick receiving millions less than they would otherwise be entitled.
Despite facing a structural deficit of $1.5 billion, Sherrill’s proposed budget includes an increase of $1.9 billion overall spending with an additional $372 million earmarked for school aid; removing current caps would require another $332.6 million.
McGuckin concluded: “Democrats can give $300 million in tax breaks to billionaire sports team owners, but in a $60 billion budget, can’t find another $332 million to give every district what they were entitled to under S2 if it wasn’t for the caps… What a joke.”
John DiMaio has played multiple roles within New Jersey government since joining the General Assembly in 2009—including serving as Minority Leader starting from 2022—and has represented District 23 which includes Hackettstown according to the official legislative roster.
