The measure would have imposed a new paid leave mandate on New Jersey employers, using UI funds to pay up to 26 weeks of paid family leave benefits. Employees working as few as 15 hours per week could collect six months of benefits to care for a family member. Unlike the current state and federal unpaid leave laws, there is no exemption for small businesses with fewer than 50 workers. If the bill is enacted into law, tens of thousands of workers will seek the paid leave benefit. Many small employers simply cannot afford to operate without key employees, absorb the cost of paying and training a replacement worker for an employee on leave, or pay coworkers overtime to share the expanded workload.

NJBIA also fears that this legislation would trigger a hike in employer payroll taxes, as the expanded benefits and easier eligibility rules would deplete the UI fund below what it needs to pay claims. In testimony before the committee, NJBIA Vice President Jeff Stoller said the UI fund balance has already dropped from $3.5 billion to an estimated $1.8 billion over the last two years. Last year alone, the fund paid out $2 billion in UI benefits. Furthermore, the Governor's proposed state budget is looking to take another $325 million. The fund may already be paying out more in claims than it is raising in payroll taxes, making a payroll tax increase likely if this bill is enacted.

Also under S-1489, all UI claimants would automatically qualify for higher unemployment benefits, even if they have only worked long enough to qualify for minimum benefits now. For example, those eligible to receive 15 weeks of benefits today would get 20.

Part-time workers would no longer be required to show good cause for seeking part-time rather than full-time positions. Unemployed workers would be able to reject job offers based on a state-determined "self-sufficiency" income instead of their past income. They would also be able to reject any offer that is even $1 less than their previous salary.

Taken together, the costly provisions of S-1489 would make an employer payroll tax increase almost inevitable. For more information, contact Jeff Stoller at ext. 209 or jeffstoller@njbia.org.

Senate Joins Call to Continue Funding for Employment
Incentive Program
The state Senate on March 20 formally called on the McGreevey Administration to fully fund the Business Employment Incentive Program (BEIP). The Senate approved an NJBIA-backed resolution, SR-126 (Bark, Kenny), calling for funding of the $38 million in BEIP grants promised to businesses this year and next.

In his proposed fiscal year 2004 budget, Governor McGreevey recommended cutting BEIP incentive payments as a cost-saving measure. However, businesses have created jobs on the understanding that they would receive BEIP grants in return. These payments represent more than 10,000 jobs that would not exist without BEIP's job-creating incentives.

Testifying March 17 before the Senate Economic Growth Committee, NJBIA Vice President Art Maurice pointed out that BEIP is a tremendous economic development tool. The 300 companies enrolled in BEIP are committed to creating 75,000 new jobs. Furthermore, BEIP more than pays for itself since the grants represent only a portion of the added income taxes from the new jobs the program creates. Furthermore, no payments are made until the new employees have worked a full year.

"Reneging on BEIP contracts sends a terrible message to employers both inside and outside of New Jersey that our state cannot be counted on to keep an economic development agreement," Maurice said.

As the New President, Standing Up For Business and
Providing the Services You Need Are My Priorities
I was honored to be selected by the NJBIA Board of Trustees to serve as President, succeeding Joseph E. Gonzalez, Jr., who served this Association so well. I want to utilize my first column to introduce myself and share some of my thoughts about what I hope to accomplish for our members.

I have over 25 years of experience in association management, representing the interests of associations before the state Legislature. For the last 12 years I have worked for NJBIA, most recently as executive vice president.

Over the years at NJBIA, I have had the pleasure of meeting thousands of New Jersey employers. Because it was my job to represent the members of the Association before the Legislature, I thought it was important to get to know as many members as possible and what they stood for. I quickly learned that New Jersey has a business community of which it can be very proud.

I appreciate and recognize how difficult it is to run a business in New Jersey. I know how dedicated and committed our members are to running their businesses. Employers overwhelmingly provide good products and services at reasonable prices, treat their employees well, and support organizations in their communities. Many people do not understand how difficult it is to operate a business.

Some in the Legislature and media think that the money just comes rolling in to employers without any financial risks being taken. I pledge to you that NJBIA will work hard to give legislators, the media and the public a better understanding of what the business community contributes to New Jersey and the challenges you face.

In the Legislature, NJBIA will stand up for businesses and work to create the best business climate possible. It is important for the continued growth of the economy of New Jersey that we have a system of government that either helps the business community grow or at least does not put obstacles in its way.

NJBIA will continue to tell the Legislature that healthcare costs are exploding and need to be brought under control. We will tell them corporate business taxes and local property taxes need to be kept low so businesses can keep and invest more of their money in their companies, instead of feeding a government bureaucracy that often does little to help them. NJBIA will also continue to demand that all employers, not just unionized companies, get an equal opportunity to obtain state and local government contracts.

However, it is most important that NJBIA be relevant to its members. The Association wants to provide employers with services that meet their needs. I will be very active in reaching out to our members and finding out more about the services and programs they want. Please let me know what NJBIA can do for your company. Are we lobbying on the right issues? Are we providing the seminars and information that you need?

In conclusion, I would like the Association to be a place that you can reach out to when your business needs assistance. We should be a central information resource and provide seminars and information that are relevant to our member employers. We must also lobby effectively on issues that are important to the business community.

These are some of my initial thoughts as I begin serving you. Please contact me at New Jersey Business & Industry Association, 102 W. State Street, Trenton, NJ 08608-1199 or send an e-mail to pkirschner@njbia.org to let me know your thoughts.

Quote of the Month
"The outlook for 2003 is no better. No immediate relief is in sight. Two-thirds of employers said they expect their health plan costs to rise at a double-digit pace again this year."

Labor Mandates and Health Insurance Costs Dominate as NJBIA Promotes Its Economic Agenda at Briefing Breakfasts
NJBIA has taken its economic growth agenda directly to members and legislators in their districts, telling lawmakers how new workforce mandates, high taxes, onerous environmental regulations and skyrocketing health insurance costs are stifling job creation in New Jersey. As part of its annual Legislative Briefing Breakfast series, NJBIA presented its agenda on the state's key business issues.

So far, more than 250 members and 30 legislators have attended breakfasts in Mount Laurel, Tea-neck, Newark and Monroe Township. Breakfasts also are scheduled for Tinton Falls (April 30) and Parsippany (May 2). Contact Stacy Wichner at 609-393-7707, ext. 213, for more information.

Central to NJBIA's message is the need for a legislative agenda that promotes economic growth. NJBIA President Phil Kirschner noted that the number of NJBIA members who say New Jersey is a good place for business expansion has dropped sharply over the last three years and is now down to 35 percent.

"This is a bottom line question," Kirschner said. "When all things are taken together, would you recommend New Jersey as a good place to do business? Only 35 percent of our members say yes. And that's of the businesses already located here."

Employers are especially unhappy with bills that favor unions over nonunion companies in awarding state contracts. Vice President Jeff Stoller pointed out that 87 percent of New Jersey's private sector workforce is not unionized; yet, the Governor and legislators have approved legislation favoring the 13 percent of the workforce that belongs to a union.

Stoller pointed to proposals allowing unions to organize employees without a secret ballot election, prohibiting companies that do business with the state from opposing unionization activities, and forcing companies to disclose on the Internet their trade-secret-type information that can be used by union organizers.

On taxes, Vice President Art Maurice said the $1 billion Corporation Business Tax (CBT) increase has hit tens of thousands of small and medium-sized businesses, and not just the big companies that the Governor accused of not paying their fair share.

In fact, corporate tax revenues are exceeding budget estimates by hundreds of millions of dollars. Maurice said the state should return the money to businesses to help stimulate the economy. Specifically, Maurice said legislators should cut the Alternative Minimum Tax rate in half, fully fund the Business Incentive Employment Program, and eliminate a hidden 1 percent surcharge on utility bills.

Assistant Vice President Kelly Stewart Maer noted that employers are reeling from the skyrocketing cost of health insurance. In NJBIA's 2003 Health Benefits Survey, members reported an average 15 percent increase.

Maer said NJBIA is fighting against legislative healthcare mandates that already account for as much as 20 percent of the cost of health insurance. One proposed mandate would require unlimited coverage for an expanded list of behavioral disorders such as caffeine addiction, sibling relational problems and malingering.

NJBIA supports the creation of a Healthcare Mandates Advisory Commission-S-2275 (Bennett, Codey)/A-3137 (Roberts, Weinberg)-that would assess the financial impact of legislative mandates before they are voted on.

Environmentally, the New Jersey Department of Environmental Protection (DEP) has increased several fees to support a 3,500-employee bureaucracy. According to First Vice President Jim Sinclair, the DEP "loves penalties" and they have stepped up environmental enforcement on even minor violations that cause no environmental harm.

NJBIA Legislative Affairs Associate Sara Bluhm asked members to "tell us what you think" about the DEP's big map that is designed to control development.

Finally, Assistant Vice President Libby Vinson said that even in a weak economy, many employers report difficulty in finding the skilled workers they need. NJBIA is pursuing legislation to enhance technology education and keep more science and technology graduates working in New Jersey.

LoBiondo Calls For Increased Investment Tax Credit, Economic Stimulus at NJBIA Congressional Roundtable
At a recent NJBIA Congressional Roundtable, US Rep. Frank A. LoBiondo (R-Cumberland) said some sort of tax cut is likely to pass Congress this session. He touted provisions that would increase the business investment tax credit to help stimulate the economy.

Speaking with about a dozen business leaders and NJBIA representatives at the Safeway Supermarket in Elmer, LoBiondo covered a wide array of business topics and fielded questions as part of NJBIA's Congressional Roundtable Program.

LoBiondo said he and several other members of Congress suggested an investment tax credit to the Congressional Leadership as they craft an economic stimulus package. As a businessman himself (before he entered Congress, LoBiondo was operations manager at LoBiondo Brothers Motor Express in Rosenhayn), LoBiondo said that these tax changes would stimulate increased capital spending by businesses, which is essential for economic growth.

LoBiondo also reviewed the prospects for energy legislation, medical malpractice reform, tort reform, transportation and national security.

On the President's proposed $726 billion tax-reduction package, LoBiondo said at least a portion of the tax cuts will be enacted this session. Most likely, Congress would make the current tax reductions permanent and eliminate the marriage penalty. Beyond that, he said, it is hard to predict what the final tax cut may look like.

Cutting taxes would help improve consumer confidence, which is the key to getting the economy moving again.

"The voices of opposition say that a thousand dollars going back into somebody's pocket really doesn't mean that much," LoBiondo said. "Well, I disagree."

For more information about the Congressional Roundtable Program, contact Libby Vinson at ext. 201 or lvinson@njbia.org.

Hundreds Given Money-Saving Advice at Health Insurance Seminar
More than 200 employers and business leaders received advice on how to deal with skyrocketing health insurance costs at NJBIA's "How to be a Savvy Purchaser" seminar on March 26. Attendees heard from industry experts, asked questions, and received practical tips on everything from handling COBRA to finding the best dental plan.

Ward Sanders, executive director of the NJ Small Employer Health Benefits Program and Individual Health Coverage Program, reviewed the Buyer's Guide for his program, which gives step-by-step instructions for purchasing insurance and lists the carriers doing business in New Jersey. Industry expert Vaughan Reale, senior vice president of Fleet Insurance Services, shared his in-depth knowledge and expansive checklist of cost containment tools.

Allan Berkin, manager of Delta Dental Plan of NJ, brushed up the group's knowledge of dental plans, while Joyce Rudolph of Wheelock Inc. and Bonnie O'Brien of Placement Professionals shared their experiences in purchasing insurance.

WEDNESDAY, APRIL 23
Controlling Workers' Compensation Costs: Employer Safety Strategies that Work
New Jersey employers and workers' compensation experts will discuss how improved safety programs can result in controlling workers' compensation insurance costs. This half-day seminar will be held at the Sheraton at Woodbridge Place, Iselin. The cost is $105 per person for NJBIA members and $139 for nonmembers. For more information, call Lisa Figatner at 609-393-7707, ext. 239.

SPRING 2003 - NJBIA Legislative Briefing Breakfasts
Don't miss the final two Legislative Briefing Breakfasts on April 30 and May 2. Meet with legislators in your district, learn about legislation affecting your businesss, and net-work with colleagues and legislators. Breakfast begins at 7:30 a.m. and ends promptly at 9:30 a.m. The cost is $39 per person per breakfast for NJBIA members and $49 for nonmembers. To register, call Stacy Wichner at 609-393-7707, ext. 213. Sponsorships are still available; please contact Sherry Esteves at ext. 219.

• Wednesday, April 30
  Holiday Inn, Tinton Falls
• Friday, May 2
  Parsippany Hilton, Parsippany

TUESDAY, MAY 13
NEW JOBS South Jersey Legislative Reception
Sponsored by NEW JOBS, the New Jersey business community's largest political action committee, and the Chamber of Commerce Southern New Jersey, this event is a major fund-raiser for probusiness candidates for the state Legislature. Come and support candidates who will encourage job creation and economic growth! The reception will be held at The Mansion on Main Street in Voorhees from 6:00 p.m. until 8:00 p.m. Cost is $185 per person. To register, call Sherry Esteves at 609-393-7707, ext. 219. For information about NEW JOBS, call Executive Director Jim Sinclair at ext. 236 or jsinclair@njbia.org.

FRIDAY, MAY 30, DEADLINE!
Awards for Excellence-Call for Nominations!
Are you proud of your track record in rewarding your employees, protecting the environment, serving your community or creating jobs? Then nominate yourself or another NJBIA member company for an NJBIA Awards for Excellence. This year's nominations must be returned to NJBIA by May 16. To get your nomination form, contact Lisa Figatner at 609-393-7707, ext. 239, or lfigatner@njbia.org.

WEDNESDAY, MAY 21
Legal Issues in the Dismissing of Employees
This seminar will examine the court decisions and new laws on dismissing and disciplining workers. Employers will be given practical information in laymen's terms from some of the state's best legal authorities. Registration and continental breakfast begins at 8:30 a.m. at the Sheraton at Woodbridge Place, Iselin. The program will adjourn at 12:15. Registration fees are $105 per person for NJBIA members and $139 for nonmembers. For more information, call Lisa Figatner at 609-393-7707, ext. 239.

Friday, May 30
Briefing Breakfast with EPA Chief Christie Whitman
How will the Bush Administration's environmental policy impact New Jersey employers? Find out at this important briefing breakfast with Christie Whitman, the US Environmental Protection Agency administrator. Registration begins at 7:30 a.m. at the Sheraton at Woodbridge Place, Iselin. The cost is $49 per person for NJBIA members and $89 for nonmembers. For more information, call Stacy Wichner at 609-393-7707, ext. 213.