New Jersey Governor Wants State to be the California of the East Coast and it’s Not Looking Good

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TRENTON, NJ — When Governor Phil Murphy first took office in 2018, he famously declared his ambition to transform New Jersey into “the California of the East Coast.” This vision was rooted in progressive policies and environmental initiatives, echoing California’s approach to governance. However, as California faces its own set of challenges, questions arise about the feasibility and desirability of adopting a similar model in New Jersey.

Now, seven years later, the governor is about to host the 2025 “State of the State” presentation on January 14th.

Since taking office, Murphy has worked overtime to turn New Jersey into California, and the state appears split on whether his New Jersey makeover was a success, while many, especially the GOP believe his state-flip was a terrible disaster.

Here’s some of the things Murphy did to flip New Jersey since taking office.

Gas Car Ban: One of the most notable parallels drawn from California’s legislative playbook was New Jersey’s decision to follow suit in banning the sale of new gas-powered vehicles by 2035. Governor Murphy announced this move in 2022, aiming to combat climate change and promote electric vehicle use. Critics argue that this could strain the state’s infrastructure and increase costs for consumers, given the current lack of widespread charging stations and the high initial cost of electric vehicles.

Sanctuary State Policies: New Jersey, under Murphy’s leadership, has also embraced policies akin to California’s sanctuary state status. In 2019, measures were passed to limit state and local law enforcement’s cooperation with federal immigration authorities, aiming to protect immigrant communities. These policies have sparked a debate on public safety and resource allocation, with some residents feeling that local law enforcement’s capabilities are being stretched thin.

Economic Impacts:

• Higher Energy Prices: Following environmental regulations similar to those in California, New Jersey has seen an uptick in energy costs. The push towards renewable energy sources, while beneficial for the environment, has led to higher utility bills for residents, often cited as a byproduct of aggressive green policies.
• Insurance Rates and Taxes: Insurance rates, particularly for property and auto, have climbed in New Jersey, mirroring trends in California where natural disasters and regulatory burdens have driven up costs. Similarly, tax rates have been adjusted, with income tax increases for high earners, contributing to the narrative of a high-cost state.
• Regulations and Gas Prices: New Jersey has introduced numerous regulations aimed at reducing carbon emissions and improving air quality, which some argue have led to higher operation costs for businesses, reflected in higher prices for goods and services. Gas prices in New Jersey have also risen, influenced by both state policies and external market pressures, compounded by high toll fees on major thoroughfares.

The California Example: California, in recent years, has been grappling with severe wildfires, often attributed in part to its environmental policies that have restricted forest management practices. The state’s challenges, including high living costs and regulatory complexities, serve as a cautionary tale for New Jersey.

The left is blaming state Farm for leaving millions of Californians insured, but the company says it fled because the state would not allow the company to increase premiums on fire-prone homeowners. So they got up and left, realizing they are just one state-bungled disaster away from losing it all if they kept gambling on Governor Gavin Newsom and his radical left-wing agenda.

Should New Jersey Follow Suit?

The question of whether New Jersey should strive to be the “California of the East Coast” is contentious. Proponents of Murphy’s vision argue that progressive policies are necessary for long-term sustainability and social justice. However, critics point to the economic and practical challenges faced by California, suggesting that New Jersey should chart its own path, focusing on balanced policies that consider both environmental goals and economic realities.

As New Jersey approaches another State of the State address in 2025, the debate continues. With Murphy’s term nearing its end, the legacy of his governance will likely be measured against these ambitious but controversial policies. Whether New Jersey can adapt California’s model to its unique context without inheriting its pitfalls remains an open question, one that will influence future political landscapes in the Garden State.

More on why State Farm left California and could also leave states like New Jersey in the future:

Press release by State Farm:

Bloomington, IL, March 20, 2024 — State Farm General Insurance Company (“State Farm General”) is working to ensure its long-term sustainability in California. In doing so, State Farm General has had to make some difficult but necessary decisions that will impact a portion of our California policyholders as follows:

• Non-renew approximately 30,000 homeowners, rental dwelling, and other property insurance policies (residential community association and business owners). (A rental dwelling policy insures rental home owners. Renters insurance is not affected.)
• Withdraw from offering commercial apartment policies with the non-renewal of all of those approximately 42,000 policies. (A commercial apartment policy insures apartment owners. Renters insurance is not affected.)

These actions are California-specific and will occur on a rolling basis over the next year, beginning on July 3, 2024, for homeowners, rental dwelling, residential community association and business owners policies and on August 20, 2024, for commercial apartment policies. Combined, these policies represent just over 2% of State Farm General’s policy count in California.

This decision was not made lightly and only after careful analysis of State Farm General’s financial health, which continues to be impacted by inflation, catastrophe exposure, reinsurance costs, and the limitations of working within decades-old insurance regulations. State Farm General takes seriously our responsibility to maintain adequate claims-paying capacity for our customers and to comply with applicable financial solvency laws. It is necessary to take these actions now.

We also recognize the Insurance Commissioner’s proposed regulatory reforms, such as streamlining the rate application process, accounting for catastrophe modeling and reinsurance costs in rates, and addressing FAIR Plan vulnerabilities. We will continue to work constructively with the California Department of Insurance, the Governor’s Office, and policymakers to actively pursue these reforms in order to establish an environment in which insurance rates are better aligned with risk. 

We will notify customers impacted by this decision in advance of their policy expiration to provide information on other coverage options. State Farm independent contractor agents licensed in California will continue to service policies not impacted by these decisions. State Farm General’s May 2023 decision regarding new applications remains unchanged. We will evaluate the need for any additional business actions as market conditions change.