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The Costs and Benefits of Alternative Growth Patterns: The Impact Assessment of the New Jersey State Plan

This impact assessment compares two possible growth plans for New Jersey, one in which growth continues according to historical trends and one where is managed according to the State Development and Redevelopment Plan, in which development will be close-in, contained, somewhat denser and will be directed into existing and new centers. Although both development scenarios will accommodate the same level of population and job growth, the state plan saves appreciable amounts of developable land, will reduce fiscal deficits due to growth by $160 million a year and save $870 million in local road infrastructure costs.

Over a 20-year projection period of 2000 to 2020:

  • Development under the state plan will attract income to and expand the tax base of communities with existing and new centers; save appreciable amounts of developable land; require fewer roads and water/sewer infrastructure; slow the increase in housing prices; and substantially reduce the need for expanded local public services in rural and environmentally sensitive areas.
  • Both plans will accommodate the same level of population and job growth. Under the state plan, almost twice the number of new jobs will be found in urban communities and household growth will be six times greater in urban communities. Communities with more densely developed planning areas and communities characterized by the presence of urban, regional, and/or town centers will also see higher population growth.
  • The state plan will reduce fiscal deficits due to growth by $160 million a year. Under either plan, most development will be residential, which, under any growth scenario, creates fiscal deficits. By continuing along historical trends, municipalities, counties and school districts will have an annual $418 million fiscal deficit. Under the state plan, local governments will experience an annual fiscal deficit of $257 million dollars.
  • Under the state plan, 870 fewer miles of centerline roads will need to be constructed and $870 million in local road infrastructure costs will be saved.
  • Under the state plan, more people will be able to afford housing. Continuing along historic trends, the percentage of the state’s households able to afford housing will drop from 77% to 62%. Under the state plan, it will drop to 67%.