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MonthlyNewsletter January 2003 Issue
Pro-Growth Agenda
Pro-Growth Agenda Targets Members' Concerns: Lower Costs of Business, Boost Confidence   Read.
Legislative News
Senate Committee Approves Technology Education Standards Read.
Bill Makes $150 Million Available for Brownfields Read.
Labor Department Says NJ Workplaces Are Safer Than National Average Read.
Senate OKs More Aid to Small Businesses Read.
Quote of the Month
NJBIA Executive Vice President Philip Kirschner Read.
Employment Watch
Two-Month Employment Surge May Signal the End of a Long Recession Read.
NJBIA in Action
DEP Commissioner Campbell Touts Brownfields Reforms at NJBIA Event Read.
Awards for Excellence Dinner Sponsors Read.
Calendar of Events
Wednesday, February 26-HR 101 Seminar Read.
Wednesday, March 26-Health Benefits Seminar Read.
Spring 2003-Briefing Breakfasts Read.
Wednesday, April 23-Workers' Compensation Seminar Read.
Tuesday, May 13-NEW JOBS South Jersey Legislative Reception Read.
Wednesday, May 21-Dismissing Employees Seminar Read.
Publications
NJBIA Compensation Report (2002-2003) Read.
Pro-Growth Agenda Targets Members' Concerns:
Would Lower Cost of Business, Boost Confidence
The New Jersey Business & Industry Association this year will promote a pro-growth agenda designed to strengthen the state's business climate and encourage the creation of new jobs.

NJBIA's pro-growth agenda is based on input from the Association's 19,000 member-companies and is intended to guide policymakers through the issues that matter most to New Jersey employers.

NJBIA members feel such guidance is necessary. In response to the 2003 Business Outlook Survey, employers as a group said that while they are feeling more optimistic about their business prospects, they are feeling less happy with the state's political leadership.

When the survey was conducted last September, 36 percent of participants said they expected conditions in their industries to improve in the first six months of 2003, versus only 23 percent who expected conditions to worsen and 41 percent who expected conditions to stay essentially the same. This represents a reversal of sentiment from the 2002 survey, when more were pessimistic than optimistic. Among specific industries, expectations were more positive than negative in all major sectors except retail and construction, where they were essentially neutral.

Despite the more positive outlook, only 24 percent of respondents expected to expand employment in the year ahead, while 10 percent anticipated cutbacks and 66 percent expected no change.

"This year's survey reveals hopeful evidence that the worst is behind us. After two very tough years, we are encouraged that our members are feeling more upbeat in their outlook," NJBIA President Joe Gonzalez said.

Unfortunately, the brighter economic outlook has not translated into greater confidence in state government.

In the 2003 survey, only 11 percent said the Governor and Legislature were doing a good job. Asked how they viewed New Jersey as a site for business expansion, only 35 percent said the Garden State was good or very good, down sharply from a 12-year high of 50 percent in the 2001 survey and the lowest rating in six years.

To regain the confidence of the business community, NJBIA Executive Vice President Philip Kirschner said political leaders must address the nuts-and-bolts issues that impact the way employers run their businesses.

NJBIA, through its 11 employer-run policy committees, has developed a pro-growth agenda to help guide policymakers on the issues that employers say are important to them. The agenda includes:

1. Balanced Labor Laws
"Eighty-seven percent of private-sector employees work for companies with no union affiliation," Kirschner said. "Yet many current state policy initiatives favor the 13 percent of unionized employees. In making new laws, the Governor and Legislature must take into account the needs of both the union and nonunion segments of our workforce, without favoring one over the other."

Specifically, the state should not pass laws such as union-only project labor agreements that discriminate against nonunion employers by virtually shutting them and their workers out of public contracts or forcing them to unionize in order to win those contracts.

Similarly, the state must not impose costly employer mandates not seen in other competitor states. In particular, NJBIA is opposed to the paid family leave mandate now pending in the state Legislature. Only California has enacted a paid leave mandate.

2. Common Sense Environmental Regulation
"Environmental policy can be probusiness without compromising environmental standards or harming our land, air and water," Kirschner said. "The state should work cooperatively with the business community to foster compliance rather than take an adversarial approach on environmental issues."

The NJ Department of Environmental Protection should emphasize results and cooperation over fines, penalties and strike-force inspections. Progress should be measured by improvement in the quality of air and water, not by the number of fines imposed.

Furthermore, the permitting process must be made faster. New Jersey can improve the efficiency of the state's permit-approval process without compromising environmental quality standards.

"The current system puts New Jersey at a competitive disadvantage with New York and Pennsylvania, where employers can get permit approvals more quickly and get projects built sooner," Kirschner said.

3. No Corporate Tax Increase
Last July, the state imposed a billion-dollar tax increase on New Jersey employers in the middle of a recession. This is bad public policy. No other state balanced its budget on the backs of its private-sector employers. "The state should not look to the business community to balance its fiscal 2004 budget," Kirschner said. "We already gave at the office."

4. Cut Government Spending
With a $4 billion to $5 billion budget deficit looming, state government must commit to cutting government spending and the size of the bureaucracy before seeking to raise taxes. Businesses cut spending when their revenues decline. State government should do the same. Yet a recent audit shows that state government spending actually increased by 3.1 percent over the last year.

5. Healthcare Mandates Study Commission
The cost of providing health insurance is rising by a double-digit rate of inflation for most employers. The state can do its part to control rising costs by creating a Healthcare Mandates Study Commission, as proposed in A-3137 (Roberts, Weinberg), that would review all legislation on insurance-coverage mandates before any are formally considered by the Legislature. Taken together, mandates account for about 15 percent of the cost of health insurance premiums today.

"These are common sense measures that recognize the importance of private-sector commerce," Kirschner said. "A strong private-sector economy will provide jobs, generate state and local tax revenues, and make it possible to address the multitude of issues that confront this state. New Jersey's political leaders have the opportunity to pursue policies that will put the state on solid economic footing in the future. Let's hope they seize it."


Senate Committee Approves
Technology Education Standards
The Senate Education Committee on January 9 released legislation that would make technology education part of the core curriculum content standards for all public schools. NJBIA has been pushing for technology education standards in response to employers' concerns that many high school graduates do not possess needed technological and problem-solving skills.

The bill, S-1531/A-2169/A-1350 (Turner, Conaway, Conners, Geist), would better prepare students for the modern workplace by making technology one of the fundamental subjects taught to all New Jersey public school students. Currently, technology education is included as a workplace readiness standard; but teachers are not required to teach technology education, and students are not assessed in this subject area.

Once the bill is enacted, the state Board of Education would have one year to develop and implement technology education standards. A committee of educators, businesspeople, parents and state Department of Education personnel would draft the standards. Prior to adopting the standards, the state Board of Education would conduct at least two public hearings-one each in the northern and southern parts of the state.

Technology education gives students an understanding of the role technology plays in our society and how it can be used to solve problems. Making technology education part of the core curriculum content standards would address one of employers' most persistent complaints-that entry-level workers do not possess the problem-solving skills they need to do their jobs. Even in a weak economy, employers struggle to find skilled employees.

Many states competing with New Jersey for technology companies and skilled workers have already adopted the national standards for technological literacy for grades K-12. Without technology education as a field of study, New Jersey will not be able to supply a workforce for the growing technology-based industries that are driving our economic growth.

For more information, contact Libby Vinson at ext. 201 or lvinson@njbia.org.


Bill Makes $150 Million Available for Brownfields
The Senate Community and Urban Affairs Committee has released legislation that would make $150 million in grants available for the redevelopment of contaminated industrial sites known as "brownfields." S-476 (Adler, Vitale) would make the grants available to municipalities for the acquisition and cleanup of these sites. The measure is aimed at smaller brownfields sites that are difficult to redevelop due to their size. NJBIA supports brownfields redevelopment as an economic development tool to transform idle industrial properties into productive enterprises.

Under S-476, the Department of Community Affairs and the Department of Environmental Protection (DEP) would develop criteria for awarding grants. The grants would cover the cost of redevelopment and would only be used for projects that could otherwise not be undertaken. Municipalities would have to provide fiscal oversight and demonstrate that the projects fit their planning policies and have sufficient infrastructure support.

Since the DEP began tracking progress in the 1970s, more than 20,000 brownfields sites have had their environmental problems addressed. But more than 12,000 sites still require action in New Jersey.

For more information, contact Jim Sinclair at ext. 236 or jsinclair@njbia.org.

Labor Department Says NJ Workplaces Are Safer
Than National Average
New Jersey workers had safer workplaces in 2001 than their counterparts in many other states, according to results of the latest survey on occupational injuries and illnesses by the NJ Department of Labor.

New Jersey's private-sector workers sustained job-related injuries and illnesses in 2001 at an incidence rate of 4.8 per 100 workers, down from 4.9 in 2000. The national incidence rate for 2001 was 5.7, down from 6.1 in 2000, but nearly 19 percent higher than New Jersey's private-sector rate.

"The numbers indicate that many New Jersey employers understand the importance of management and labor working together to keep workplaces safe and healthy," state Labor Commissioner Albert Kroll said. "This department helps employers identify and correct safety issues through the free services of our OSHA On-Site Consultation Service."

Overall, New Jersey's 2001 incidence rate for both public and private sector workers was 5.4 cases per 100 full-time workers, down from 5.5 in 2000. That rate is down steeply from the first survey in 1993, when the combined incidence rate was 8.3.

Since 1993, the state Department of Labor has worked in cooperation with the US Bureau of Labor Statistics to produce estimates of occupational injuries and illnesses for the private and public sectors.

Senate OKs More Aid to Small Businesses
Legislation that would make it easier for small businesses to get financial assistance for underground storage tank remediation was approved by the NJ Senate on December 16.

S-1948 (McNamara/Suliga) would increase the maximum size of loans and grants, raise income eligibility limits, and extend the application deadline. NJBIA supports the proposal, which would:

  • Extend the application deadline for regulated tanks to June 30, 2004;
  • Authorize financial assistance for 18 months after the date of discovery of a tank;
  • Increase the maximum grant from $250,000 to $500,000;
  • Raise the maximum loan from $1 million to $2 million;
  • Authorize loans of up to $3 million where discharge poses an imminent and significant threat to a drinking water source;
  • Raise the income limit to $250,000 and net worth limit to $500,000 for grant eligibility;
  • Remove the requirement that an applicant must have owned a regulated tank as of December 1, 1996, to be eligible for a conditional hardship grant;
  • Authorize financial assistance from the fund for the remediation of a discharge, even if the discharge began subsequent to the upgrade of the underground storage tank.


Quote of the Month
"If there is a message for the Governor and the Legislature for 2003 it is this: it is time to address the everyday concerns of employers."

-NJBIA Executive Vice President Philip Kirschner on
NJBIA's pro-growth agenda for 2003.

Two-Month Employment Surge May Signal the End of a Long Recession
New Jersey's private-sector employers created an unexpected 6,600 jobs in October and November, an event that may herald an end to New Jersey's long if shallow recession. However, regional economists say the state's employment growth will be subdued over the next several years, remaining well below the explosive levels reached in the late 1990s.

With a gain of 3,900 jobs in October and 2,700 in November, the state's private sector pared its recession losses. As of November, private-sector employment was down 17,200 jobs for the year and down 28,900 from its June 2001 peak.

The brunt of the recession was shouldered by the state's manufacturing sector, which lost 31,300 jobs between June 2001 and November 2002, a 7 percent decline. The state's service sector added 500 jobs over the same period, thanks to a gain of 7,900 jobs in October and November, effectively cancelling out its earlier recession losses. Finally, the construction sector added 1,800 jobs over the 16-month period, an increase of just over 1 percent. (See table below.)

In its December 2002 forecast, the Rutgers Economic Advisory Service (R/ECON) said it expects employment in New Jersey to expand by an average of approximately 40,000 new jobs a year through 2007, an annual growth rate of about 1 percent.

Rutgers economist Jim Hughes said the October-November employment uptick provides a "pretty good indication" that the recession ended in September 2002. However, he cautioned, "two months do not a definitive trend make."

R/ECON Director Nancy Mantell said she fully expects the recovery, which got underway in October, to continue with modest employment growth of about 40,000 jobs annually over the next several years.

Mantell and Hughes, speaking at a December 19 news conference in New Brunswick, said they do not expect the state to return to the heady growth rates of the late 1990s, which produced an average annual gain of 90,000 jobs."During the forecast period (through 2007), the state will add about 40,600 jobs annually," Mantell said. "That's very modest growth and about 10 percent lower than the average annual growth during the post-World War II period."

Although the monthly unemployment rate may creep slightly higher next year, rising above its November peak of 5.6 percent, it should remain below the national rate and should average about 5.5 percent for the year. Mantell said the unemployment rate is a lagging economic indicator and typically rises in the first year of a recovery. As more people are drawn back into the job market, the pool of available labor expands faster than new jobs can be created.

For 2003, Mantell also forecasts:

  • A 4.1% rise in real gross state product, following a 1.1% gain in 2002;
  • A 4.3% rise in real personal income, following a 4% gain in 2002;
  • Consumer price inflation of 2.3%, versus an inflation rate of 2.4% in 2002.
Mantell said the only business sectors likely to experience above-average growth over the next several years are finance, insurance and real estate. Communications, dragged down by the implosion in the telecommunications industry, will show little growth, while manufacturing will continue its long-term decline.

Employment in the state's manufacturing industries has been cut in half since reaching a peak of 800,000 in 1979. As of November, there were 420,200 goods-producing jobs in New Jersey, accounting for one out of every eight private-sector jobs.


DEP Commissioner Campbell Touts Brownfields Reforms,Changes to New Jersey's Water Management System
NJ Department of Environmental Protection (DEP) Commissioner Bradley Campbell said the Administration has enjoyed a successful first year implementing environmental policies and has made great progress on NJBIA's environmental policy recommendations. Campbell spoke before 200 employers at an NJBIA environmental briefing breakfast held on December 13.

Commissioner Campbell used NJBIA's environmental agenda-"Fifteen environmental policy ideas and regulatory reform initiatives: Potential areas of cooperation between the business community and the new Administration"-as the basis for a review of the Administration's environmental policy. NJBIA submitted the ideas during the McGreevey administration's transition period. After an item-by-item review, Campbell said that at least two-thirds of the items had been addressed, such as improving the brownfields remediation process, reforming the air reengineering permitting process, and cutting red tape as part of the port expansion program. He also outlined a number of program initiatives for 2003, including those designed to reward "good actors" and help small businesses.

According to Campbell, two of the DEP's most significant accomplishments are a strengthening of the state's water management program in the aftermath of the drought and putting greater emphasis on its brownfields redevelopment program.

Campbell said the DEP has conducted a review of its remediation and brownfields operations and, as a result, is more consistent in how it applies the standards that projects must meet. He said his staff reorganized the program and is conducting a thorough audit to help reduce costs and accelerate approval of cleanup plans in growth areas. Meanwhile, a reengineering of the permitting process is underway in the air program.

Improvements to water management became a priority in 2002 as a result of the severe and lengthy drought. Campbell pointed out that a $5.5 million study of aquifers-strongly supported by NJBIA-is now underway, and water recycling is receiving greater attention.

Looking to the future, the Commissioner said his department is working on a program to help small businesses comply with environmental rules and regulations through training programs and online assistance. Additionally, the agency has begun discussion of a new alternative track process designed to reward "good actors" (those with proven environmental records) with more flexible permits and other incentives.

Campbell said that while the DEP and the business community may not agree on every issue, they have worked cooperatively. The dialogue with business has led to significant changes in environmental policy over the last year-notably the abandonment of a flawed environmental justice proposal and a thorough revamping of proposed septic system regulations.

For more information, contact Jim Sinclair at ext. 236 or jsinclair@njbia.org.


Awards for Excellence Dinner Sponsors
NJBIA wishes to thank the sponsors of our 2002 Awards for Excellence Dinner, which was held October 22 at the Princeton Westin at Forrestal Village.

Gold Sponsors
Aventis Pharmaceuticals Inc.
The Center for Hope Hospice and Palliative Care
El Taller Colaborativo, PC
G.F. Imaging Studio, Inc.
NJM Insurance Group/NJM Bank FSB
Organon, Inc.
Pharmacia Corporation
Saint Barnabas Health Care System

Silver Sponsors
Lowenstein Sandler PC
Micro Stamping Corp.
PNC Bank
Sprint

Thank you!


WEDNESDAY, FEBRUARY 26
HR 101: A Beginner's Seminar on Managing your Workforce
This program is a "crash course" in the key human resource issues facing New Jersey employers. Small business owners and first-time HR managers will have a special interest in hearing experienced labor attorneys and veteran personnel executives discuss the basics of managing employees. Learn how companies with limited resources can successfully avoid costly mistakes in the complex world of employment law. This half-day program will be held at the Sheraton at Woodbridge Place in Iselin. Cost is $99 per person for NJBIA members and $139 for nonmembers. To register, contact Lisa Figatner at 609-393-7707, ext. 239.


WEDNESDAY, MARCH 26
Health Insurance: How to be a Savvy Purchaser
This half-day seminar will tackle some of the critical issues facing employers in providing health benefits and will help you make educated decisions. Some of the issues that will be covered will be cutting costs, individual and small employer plans, and savings trends for healthcare. This seminar will be held at Forsgate Country Club in Monroe Twp. from 9:00 a.m. to 12.00 p.m. Cost is $99 per person for NJBIA members and $139 for nonmembers. For more information, call Stacy Wichner at 609-393-7707, ext. 213.


SPRING 2003
BRIEFING BREAKFASTS
Continuing its annual tradition, NJBIA will travel across the state this spring to host a series of six Legislative Briefing Breakfasts. These breakfasts give you the chance to meet with legislators in your district and learn about pending and proposed legislation affecting your business. Each breakfast will begin at 7:30 a.m. with registration and end promptly at 9:30 a.m. so you can return to work. Don't miss this excellent opportunity to network with colleagues and legislators in an informal atmosphere. The cost is $39 per person per breakfast for NJBIA members and $49 for nonmembers. Call Stacy Wichner at 609-393-7707, ext. 213, for dates and locations.


WEDNESDAY, APRIL 23
Workers' Compensation Seminar
New Jersey employers and workers' compensation experts will discuss how improved safety programs can result in lower workers' compensation insurance compensation costs. This seminar will be held at the Sheraton at Woodbridge Place, Iselin. The cost is $105 per person for NJBIA members and $139 for nonmembers. Call Lisa Figatner at 609-393-7707, ext. 239, for more information.


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 South Jersey's regional fund-raiser for probusiness candidates for the state Legislature. Remember, it is of vital importance to support candidates who advocate policies that 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. For more information or to register, call Sherry Esteves at 609-393-7707, ext. 219. For details on NEW JOBS, call Executive Director Jim Sinclair at ext. 236 or jsinclair@njbia.org.


WEDNESDAY, MAY 21
Dismissing Employees Seminar
This seminar will take a comprehensive look at the many court decisions and new laws that affect the dismissal and discipline of workers. You will be given practical information in laymen's terms from some of the best legal authorities in the state. The program begins with registration and continental breakfast at 8:30 a.m. and will be held at the Sheraton at Woodbridge Place in Iselin. Registration fees are $105 per person for NJBIA members and $139 for nonmembers. To register, call Lisa Figatner at 609-393-7707, ext. 239.


NJBIA Compensation Report (2002-2003)
Knowing how much to pay existing and prospective employees is an important task! This is precisely why you need NJBIA's 2002-2003 Compensation Report. Compiled from 314 companies reporting data on 28,000 employees, our Report is the state's most complete guide to the salaries and wages employers in your industry and your region are paying their employees. Find out what the competition is paying, what they are budgeting for salary increases, and what lump-sum bonuses they are offering. The Report contains information on over 200 job classifications within 12 job families. Prices: NJBIA members $95 (plus 6% NJ sales tax); nonmembers, $200 (plus 6% NJ sales tax).

To order this and other NJBIA publications, call Christine Lopez at 609-393-7707, ext. 224


 
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