Click here to visit NJBIA home page
BusinessVoice
BusinessVoice
 
MonthlyNewsletter June 2003 Issue
Election Roundup
NEW JOBS-Endorsed Candidates Nearly Sweep Primaries with Business Backing Read.
Contribute To New Jobs! Read.
Legislative News
Senate Labor Committee Holds Costly UI Bill That Could Cause a Tax Hike Read.
"California Car" Emission Rules Advance in NJ Read.
Criminal Penalties for Prevailing Wage Violations Clears Senate Committee Read.
Call Center Bill Would Hurt NJ Companies Read.
Health Mandates Advisory Commission Bill Clears Senate Health Committee Read.
Senate Approves Funding for BEIP Read.
Businesses Pay $1.5 Billion More in Corporation Business Taxes Read.
Quote of the Month
NJBIA First Vice President Jim Sinclair Read.
NJBIA in Action
Eleven Projects Honored at NJBIA's 2003 New Good Neighbor Awards Read.
Summer Fun Discount Coupons Read.
Employers Learn How to Cut Workers' Comp Costs Through Improved Safety Read.
Whitman Draws Standing Ovation from NJBIA Environmental Network Read.
Calendar of Events
Tuesday, June 17-2003 Employer Legislative Committees (ELC) Biennial Dinner Read.
Tuesday, July 15-Golf & Tennis Day Read.
Wednesday, September 24-NEW JOBS Night at the Meadowlands Read.
Tuesday, October 21-Awards for Excellence Dinner Read.
November-Made in New Jersey Day Read.
NEW JOBS-Endorsed Candidates Nearly Sweep Primaries with Business Community Backing
Candidates endorsed by NEW JOBS, the state's largest probusiness political action committee, nearly swept the June 3 primaries, taking 13 of 14 races with one election still undecided and headed for a recount.

NEW JOBS, the New Jersey Organization for a Better State, endorsed 15 candidates in contested primaries. The NEW JOBS Board of Trustees, made up of businesspeople like you, carefully examined the records of all candidates facing contested primaries in either party. The endorsed candidates all have proven probusiness records and deserve the support of the entire business community. NEW JOBS then backed those candidates by making substantial financial contributions, issuing press releases and sending letters, faxes and e-mails on their behalf.

That effort helped nominate Perth Amboy Mayor Joe Vas in the 19th District (Middlesex County) Democratic primary, where he will run with Assemblyman John Wisniewski, who also was endorsed by NEW JOBS. Vas and Wisniewski defeated long-time incumbent Arline Friscia, chair of the Assembly Labor Committee. Friscia had one of the most antibusiness records of any legislator, pushing job-killing paid family leave bills and union-only project labor agreements. Wisniewski led with 42 percent of the vote, followed by Vas with 37 percent, and Frisicia with 31 percent.

In Morris County's 26th District Republican primary, Senator Robert Martin, endorsed by NEW JOBS, fended off a strong challenge from Jay Webber. Martin won 57 percent to 43 percent.

And in one of the state's most closely-watched contests, Senate Co-President John Bennett, endorsed by NEW JOBS, defeated Richard Pezzullo in the District 12 (Monmouth, Mercer) Republican contest. In what was his stiffest challenge in 23 years in the Legislature, Bennett outpolled his opponent, grabbing 58 percent of the vote.

In the heavily Republican 23rd District (Hunterdon and Warren counties), NEW JOBS-endorsed incumbents Connie Myers and Michael Doherty outdistanced former Assembly Speaker Garabed "Chuck" Haytaian, blocking his bid to return to the Legislature. Doherty captured 42 percent of the vote; Myers, 39 percent and Haytaian, 19 percent.

In another Republican stronghold, District 24 (Hunterdon, Morris and Sussex counties), NEW JOBS-backed Senator Robert Littell defeated Paul Viall 60 percent to 40 percent in the Senate Republican primary. In the Assembly, incumbents Guy Gregg and running mate Alison Littell-McHose-the NEW JOBS-backed candidates-out-polled Sussex County Republican Party Chairman David Mortimer and Newton businessman George Matreyek. Gregg grabbed 36 percent of the vote and McHose 28 percent, against 20 percent for Mortimer and 16 percent for Matreyek.

In District 25 (Morris County), Republicans chose incumbent Assemblymen Michael Carroll and Richard Merkt-the NEW JOBS endorsed candidates-over Morris County Freeholder Douglas Cabana and former Freeholder Peter J. O'Hagan. Merkt garnered 33 percent of the vote, Carroll 30 percent, Cabana 20 percent, and O'Hagan 17 percent.

In District 38 (Bergen), Assemblywoman Rose Heck received the Republican Senate nomination, defeating Jay Schainholz with 62 percent of the vote. In the District 36 (Bergen, Passaic, Essex) primary, Assembly Republican Leader Paul DiGaetano easily won renomination. NEW JOBS endorsed both Heck and DiGaetano.

The District 31 (Hudson) Democratic primary was the only race where a NEW JOBS-endorsed candidate lost. In one of the closest primary races, incumbent Assemblywoman Elba Perez-Cinciarelli lost to Tony Chiappone 23 percent to 26 percent. Her running mate, long-time Assemblyman Joe Doria, was trailing Louis Manzo by about 448 votes. A recount is expected.

But the primary is just the beginning. NEW JOBS will be working hard in the fall election campaigns to support candidates who will work to create jobs and strengthen our economy. To learn more about how you can contribute to NEW JOBS, contact Jim Sinclair at ext. 236 or jsinclair@njbia.org. Or visit our NEW JOBS section Here.


Senate Labor Committee Holds Costly UI Bill That Could Cause a Tax Hike
Legislation that would likely trigger a payroll tax increase by loosening the requirements for receiving Unemployment Insurance benefits failed to win release from the Senate Labor Committee on May 8-the second time this year that the bill, S-1489 (Sweeney), failed to get a majority vote.

Enacting this legislation probably would hike UI payroll taxes by draining the already depleted UI fund to a level where an automatic tax increase would be triggered to replenish the funds. The UI fund balance has already dropped from $3.5 billion to below $2 billion over the last two years. Additionally, the Governor is looking to take another $325 million from the fund to balance the budget this year.

The expanded benefits contained in S-1489 would aggravate the UI fund's financial problems. The NJ Department of Labor estimates that S-1489 would drain up to $100 million a year from the fund. Since state law requires employers to contribute more to the UI fund if the balance drops below a certain point, S-1489 would make an employer payroll tax increase almost inevitable. Rather than giving out larger benefits, the state should ensure that the fund is able to meet its current obligations. For more information, contact Jeff Stoller at ext. 209 or jeffstoller@njbia.org.

"California Car" Emission Rules Advance in NJ
In what would amount to a new tax on car buyers, the Senate Transportation Committee on May 15 voted to impose California's strictest-in-the-nation emissions standards on New Jersey.

The bill, S-2351 (Bennett, Adler), would require at least 10 percent of a manufacturer's New Jersey fleet to be low-emissions vehicles, whether or not the public wants to buy them. The cost of stocking these vehicles would be added to the price of all vehicles, making it a de-facto tax on car buyers.

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

Criminal Penalties for Prevailing Wage Violations Clears Senate Committee
Violators of New Jersey's prevailing wage laws would face years in prison and tens of thousands of dollars in criminal fines under legislation released May 8 by the Senate Labor Committee. The bill, A-205 (Guear)/S-247 (Suliga), would impose penalties for prevailing wage violations equal to those of violent crimes.

Prevailing wage is the standardized regional wage scale that all contractors must use when working on government contracts. Currently, violations are handled administratively by the state Department of Labor (DOL) and are punished with fines levied on the offending contractor.

Contractors convicted of intentionally paying a lower wage on a government contract would be guilty of a third-degree crime if the total amount of the contract is between $2,500 and $25,000, punishable by three to five years in prison and fines of up to $15,000. If the total amount exceeds $25,000, the offender would be guilty of a second-degree crime, punishable by up to ten years in prison and fines of up to $150,000. Even violations involving contracts up to $2,500 could be punished with up to 18 months in prison and a fine of up to $10,000.

NJBIA has always supported enforcement of New Jersey's prevailing wage laws, but violations do not warrant criminal penalties. The penalties contained in this bill are excessive and totally out of proportion to the offense. For more information, contact Jeff Stoller at jsinclair@njbia.orgor ext. 209.


Call Center Bill Would Hurt NJ Companies
Legislation that would mandate onerous phone call and e-mail answering procedures for many New Jersey businesses was released by the Assembly State Government Committee on June 5.

The bill, A-3529 (Greenstein/Guear), would require businesses to disclose their physical location and other personal and business information within 30 seconds of receiving a call.

The bill covers a wide range of telephone communications, including customer service, sales solicitations, orders and reservations, account reactivation, survey or research, and collections.

For more information, contact Art Maurice at amaurice@njbia.org or ext. 247.

Health Mandates Advisory Commission Bill Clears Senate Health Committee
The Senate Health Committee on May 19 released an NJBIA-backed bill creating a Healthcare Mandates Advisory Commission to help control the soaring cost of health insurance. NJBIA believes a Healthcare Mandates Advisory Commission is essential to controlling costs and making health insurance more affordable for employers and their employees. Establishing a commission is one of the goals of NJBIA's 2003 Economic Growth Agenda.

The bill, S-2275 (Bennett, Codey), would give legislators an important tool for controlling one cause of rising health insurance costs-legislatively-imposed coverage mandates. These mandates require insurance carriers to provide coverage for specific conditions, whether or not consumers want or need them. Estimates show that such mandates account for as much as 20 percent of the cost of insurance premiums. For the average NJBIA member, that equals more than $1,200 per employee.

Controlling the cost of health insurance is the top issue for NJBIA member companies. According to the latest NJBIA Health Benefits Survey, member companies experienced an average premium increase of 15 percent in 2002 and paid an average of $6,325 per employee for health insurance last year. Companies are expecting another 14 percent increase this year. For more information, contact Kelly Stewart Maer at ext. 203 or kmaer@njbia.org.


Senate Approves Funding for BEIP
Wednesday, Sept. 24
NJBIA-backed legislation to restore $39 million in Business Employment Incentive Program (BEIP) funding for fiscal year 2004 was approved by the Senate on May 19. The money would fund payments that New Jersey already owes to participating companies in return for creating jobs. The bill, S-2435 (Littell, Kenny), would use funds collected from the Corporation Business Tax.

BEIP payments equal 80 percent of state income taxes generated by the new employees that a company hires. Since no payments are made to the employer until the new employees work one full year, the program pays for itself. Governor James E. McGreevey eliminated funding for BEIP payments in his proposed FY 2004 budget. Reneging on these agreements is unfair to the participating businesses and makes it difficult to use BEIP to attract new businesses. For more information, contact Art Maurice at ext. 247 or amaurice@njbia.org.


Businesses Pay $1.5 Billion More in Corporation Business Taxes
New Jersey businesses are paying $513 million more in Corporation Business Taxes (CBT) than the McGreevey administration forecasted last year, according to the nonpartisan Office of Legislative Services.

The new figures show that the $1 billion business tax increase enacted last year has become a $1.5 billion tax increase. This represents a doubling of corporate taxes during a weak economy. This huge tax increase has hurt New Jersey's economy and has been an impediment to creating jobs. The tax increase included a new alternative minimum tax (AMT) on gross receipts or gross sales. Businesses taxed under the AMT are not allowed to deduct employee salaries, benefits and other legitimate business expenses from taxable income.

NJBIA First Vice President Art Maurice said CBT collections are so far in excess of estimates that the excess collections should be used to:

  • fully fund $39 million in Business Employment Incentive Program (BEIP) payments;
  • phase out the unfair alternative minimum tax before the scheduled 2006 sunset; and
  • eliminate the new 1 percent surcharge on utility bills.
Maurice noted that the CBT increase was a broad tax hike that hurt tens of thousands of employers. For more information, contact Art Maurice at ext. 247 or amaurice@njbia.org.


Quote of the Month
"It's silly, and everybody knows it's silly. There is no environmental benefit."

NJBIA First Vice President Jim Sinclair
on adopting California's auto
emission standards in New Jersey.


Eleven Projects Honored at NJBIA's 2003 New Good Neighbor Awards
Eleven construction projects-everything from renovated historical landmarks to new waterfront developments-were honored at the 43rd Annual New Good Neighbor Awards Luncheon on June 4 at the Sheraton at Woodbridge Place in Iselin. The event is hosted by NJBIA and New Jersey Business Magazine.

"With the many excellent entries, picking only 11 was difficult," NJBIA President Philip Kirschner said. "The winners have refurbished old buildings, developed our urban waterfronts, and incorporated mass transit into their planning. Most important of all, they created thousands of jobs and helped build a stronger economy. Everyone associated with today's winning projects deserves congratulations for a job well done."

A panel of independent judges selected the winners from among 38 nominated projects representing $1 billion in construction costs, 15,700 permanent jobs and thousands of construction jobs. The New Good Neighbor Awards Luncheon annually brings together a dynamic group of builders, engineers and architects to honor those responsible for much of the state's impressive new construction and renovation.

New Good Neighbor Awards
2003 Winners
Bridgewater Crossing/Aventis Pharmaceuticals-Bridgewater
Architect: Hillier
Builder: Hines
Builder: Turner Construction Company

Claremont Tower-Newark
Architect: Ehrenkrantz Eckstut & Kuhn Architects
Builder: Tishman Construction Corporation of NJ

Congress Hall Hotel-Cape May
Architect: Robert Litchfield Architect
Builder: J.A. Jones/Tompkins Builders

Hamilton Farm Golf Club-Gladstone
Architect: Hurdzan/Fry Golf Course Design
Builder: Daylar Group/LCM Construction

Harborside Financial Center Plaza 10-Jersey City
Architect: HLW International LLP
Builder: Jeffrey M. Brown Associates, Inc.

Novartis Research Center-East Hanover
Architect: Hillier
Builder: Torcon, Inc.

Parkway Corporate Center-Montvale
Architect: SNS Architects and Engineers
Builder: Eastman Construction Co.

The Plaza at Morristown-Morristown
Architect: NK Architects
Builder: R.C. Dolner

New Offices for Silverberg Associates-Lawrence Township
Architect: Silverberg Associates, Inc.
Builder: Doyle Builders

Trenton Marriott at Lafayette Yard-Trenton
Architect: Ford Farewell Mills & Gatsch,
Architects LLC
Architect: Johnson Jones Architects - Planners
Builder: Turner Construction Company

Waterfront Corporate Center-Hoboken
Architect: HLW International LLP
Builder: SJP Properties

Thanks to our 2003
New Good Neighbor Sponsors
AT&T
Cardolite Corporation
Champion Container Corp.
Claremont Newark, LLC
Ehrenkrantz Eckstut & Kuhn Architects
First Union National Bank
Mack-Cali Realty Corporation


Summer Fun Discount Coupons
NJBIA member companies can order discount coupons to Six Flags in Jackson, NJ, and Busch Theme Parks including Sesame Place in Langhorne, PA, for their employees.

Save money on car rentals for business or pleasure through Hertz and National. E-mail or fax your request along with mailing information and number of coupons to: jjespersen@njbia.org or lsabo@njbia.org. Fax to: 609-695-0442


Employers Learn How to Cut Workers' Comp Costs Through Improved Safety
With workers' compensation premiums rising for the first time in years, employers have begun looking for new ways to improve safety and reduce risks at their workplaces. NJBIA responded to this need with an April 23 seminar, "Controlling Workers' Compensation Costs."

More than 120 companies heard from a panel of experts, who explained how aggressive safety programs can prevent costly accidents.

Peter Calderone, chief judge of the NJ Division of Workers' Compensation, reported that employee injury rates in New Jersey have fallen steadily in recent years. However, he warned that rising healthcare costs have begun to push workers' compensation rates higher, and he urged employers to take additional steps to reduce workplace injuries.

Tony Stonis of Cardolite Corporation and Glenn Gerber of Gerber Metals Company both achieved outstanding safety records by working with their workers' compensation insurer, NJM Insurance Co., to reduce on-the-job injuries and time lost. Both companies now enjoy outstanding safety records.

Congressman Mike Ferguson (R-7) and Bill Warvel of Infineum Corporation's Linden plant explained how a comprehensive safety program, such as the US Occupational Safety & Health Administration's (OSHA) Voluntary Protection Program, could yield tangible benefits. Rep. Ferguson is sponsoring federal legislation that would encourage more small and mid-sized employers to adopt this program.

Finally, Bill Margaretta, president of the NJ State Safety Council, demonstrated a new software package that enables managers to estimate the true dollars-and-cents savings of their safety programs.

Throughout the morning, regional representatives from OSHA met with NJBIA members attending the conference to answer their questions. Members can also learn more about the NJ Department of Labor's free safety consulting service by calling 609-292-0404.

Whitman Draws Standing Ovation from NJBIA Environmental Network
EPA Administrator Christine Todd Whitman, who will step down June 27 after two and a half years at the helm of the US Environmental Protection Agency, says the EPA's record of achievement should be judged by a simple benchmark - that the nation's land, air and water is cleaner.

Speaking to 132 NJBIA members, who gave the former New Jersey Governor two standing ovations, Whitman said the debate in Washington focuses too much on winners and losers. And for too long success has been measured by the number of laws and regulations passed and fees and fines imposed.

"That's not the measure of environmental success," Whitman said at NJBIA's May 30 Environmental Briefing Breakfast. "We should be able to answer the question: Is the environment cleaner or not?"

Whitman said one of her chief goals as EPA administrator was to get the EPA to focus on measurable results. However, she said that anyone in her position faces a daunting uphill challenge in the world of Washington politics. When one environmental nonprofit praised her agency for a clean-air initiative, she said, other environmental groups angrily lashed out at it.

"You would have thought they had offered up Spotted Owl for dinner," Whitman quipped.

In his introduction of Whitman at the breakfast, NJBIA President Philip Kirschner noted that common sense environmental regulation based on measurable results is a top goal in the Association's 2003 Economic Growth Agenda.


TUESDAY, JUNE 17
Employer Legislative Committees (ELC) Biennial Dinner
One of New Jersey's top networking events, the ELC dinner gives New Jersey employers a chance to tell legislators how issues like paid family leave impact their businesses. The ELCs are a statewide grassroots network founded by NJBIA in 1959 to bring lawmakers and businesspeople together. This event will be held at the Hyatt Regency Princeton. Cocktails are at 6:00 p.m. and dinner is at 7:00 p.m. The cost is $110 per person with tables of 10 available for $1,100. Contact Sherry Esteves at 609-393-7707, ext. 219, for more information.


TUESDAY, JULY 15
Golf & Tennis Day
NJBIA will hold its 33rd Annual Golf & Tennis Day at Forsgate Country Club in Monroe Township. The event is one of the state's major business outings and largest amateur golf tournaments, attracting 300 golfers each year. Cost per person: $250 for golf and dinner, $140 for tennis and dinner, and $95 for dinner only. Sponsorships are available by contacting Sherry Esteves at 609-393-7707, ext. 219. To register or for more information, call Stacy Wichner, ext. 213.


Wednesday, September 24
NEW JOBS Night at the Meadowlands
The New Jersey Organization for a Better State (NEW JOBS), the state's largest probusiness political action committee, will hold its annual Night at the Meadowlands event in the Pegasus Restaurant at the racetrack in East Rutherford. Come meet New Jersey's probusiness legislators! The event begins with cocktails at 6:00 p.m., followed by a buffet dinner at 7:00 p.m. and racing. The price is $200 per person, and tables of 10 are available. To register, call Sherry Esteves at 609-393-7707, ext. 219.


Tuesday, October 21
Awards for Excellence Dinner
A select number of NJBIA member companies that have achieved excellence in activities related to environmental quality, human resources management, and job creation will receive our Award for Excellence at a dinner banquet at the Westin Princeton on October 21. An Award for Excellence in public service will also be presented to an individual. Established in 1984, NJBIA's Awards for Excellence recognize the corporate "cream of the crop"-from the modest, family-owned enterprise to Fortune 500 companies. The program will begin at 6:00 p.m. and will include a reception, dinner and the awards presentations. Tables of 10 are available. To register, call Stacy Wichner at 609-393-7707, ext. 213.

Awards for Excellence Dinner sponsorship opportunities are available! Associate your business with excellence by formally recognizing the distinguished achievements of your corporate colleagues through one of the following sponsorship opportunities.

$2,000 Gold Sponsor includes:
  • Reserved table of 10,
  • Recognition in the event program and signage,
  • Listing in follow-up stories in the NJBIA Business Voice and New Jersey Business Magazine.

$500 Silver Sponsor includes:
  • Recognition in event program,
  • Listing in follow-up stories in the NJBIA Business Voice and New Jersey Business Magazine.
To be a sponsor, call Sherry Esteves at ext. 219.


NOVEMBER (date to be determined)
Made in New Jersey Day
If your company makes a product in New Jersey, showcase it by exhibiting at NJBIA's 8th Annual Made in New Jersey Day, which will be held in November at the State House in Trenton. There is no cost to exhibit! You can also provide a product sample for our New Jersey Sampler Bag. If you are a member of NJBIA and would like to be an exhibitor, a Sampler Bag contributor or an event sponsor, contact Stacy Wichner at 609-393-7707, ext. 213, or Sherry Esteves at ext. 219.


 
NewJersey Business & Industry Association
102 WestState Street
Trenton,NJ 08608-1199
609-393-7707

Copyright© 2001 NJBIA
All RightsReserved. Reproduction in whole or in part in any medium
withoutexpress written permission is prohibited.