West Windsor businessman Doug Forrester beat former Jersey City Mayor Bret Schundler and a field of five other candidates to capture the Republican nomination for Governor. Forrester’s win sets up a fall showdown with US Senator Jon Corzine, the Democratic nominee, who faced only token opposition in his party’s primary.

Voters also selected nominees for the NJ Assembly in 19 contested districts (ten Republican and nine Democrat), ousting two incumbents in the process. This fall, all 80 Assembly seats are up for grabs. Democrats currently hold a 47-33 majority.

Forrester won 15 of the State’s 21 counties and grabbed the GOP nomination with 36 percent of the vote, while Schundler nabbed 31 percent. Morris County Freeholder John Murphy finished third with 11 percent of the vote in what many observers viewed as a good showing for a candidate who was virtually unknown at the beginning of the race.

The rest of the vote was distributed to Bogota Mayor Steve Lonegan (8 percent), Assemblyman Paul DiGaetano (6 percent), Bergen County businessman Robert Schroeder (6 percent) and Bergen County Freeholder Todd Caliguire (3 percent).

Corzine was nominated with 87 percent of the vote in a Democratic primary that did not feature any other major candidates.

Corzine, the former chairman of Goldman Sachs, and Forrester, founder of Benecard Services Inc., are expected to wage the most expensive gubernatorial campaign in New Jersey history.

Coming in an off-year election when there are no congressional races and only one other gubernatorial contest nationwide, the Corzine-Forrester contest also will be one of the most closely watched campaigns in the country.

In key Assembly contests:

• Monmouth County Freeholder Amy Handlin defeated incumbent Assemblyman Joe Azzolina* to capture the Republican nomination in the 13th Legislative District in Monmouth and Middlesex counties. She will join the ticket with incumbent Samuel Thompson.* The two Republicans will face Michael Dasaro and William Flynn, Democrats, in what may be a close race.

• Incumbent Assemblyman Louis Manzo and Jersey City Superintendent of Schools Charles Epps defeated incumbent Assemblyman Anthony Chiappone for the Democratic nomination in Hudson County’s 31st Legislative District.

• Hunterdon County Freeholder Marcia Karrow defeated a slate of four other candidates to join incumbent Assemblyman Michael Doherty* as the Republican nominees in the 23rd Legislative District (Warren and Hunterdon counties). She will be vying to fill the open seat left by retiring Assemblywoman Connie Myers.

• Incumbent Democrats Joseph Cryan* and Neil Cohen* beat back a challenge from Garrett Smith in Union County’s 20th Legislative District Democratic primary.

• Republican incumbents Christopher “Kip” Bateman* and Peter Biondi* handily defeated Stan Serafin in the 16th District (Somerset and Morris counties).

• Republican incumbents Charlotte Vandervalk* and John Rooney* fended off challengers Kenneth Gabbert and Jeffrey Hering in Bergen County’s 39th Legislative District.

• Incumbents Kevin O’Toole* and David Russo* easily won the Republican nomination for the 40th Legislative District (Bergen, Essex and Passaic counties) over John Ginty.

*Candidates endorsed by NEW JOBS PAC, the State’s oldest and most influential probusiness political action committee.

HSAs are a health coverage option that allows individuals to build up savings in personal accounts that can be used to pay for medical expenses. Federal regulations require those using HSAs to carry a high-deductible health insurance plan, but New Jersey’s high-deductible plan does not meet federal requirements. The bill, A-3440 (Cohen), would change New Jersey law to allow for the sale of federally approved plans.

The federal government has given New Jersey until December 31 to come into compliance. Unless A-3440 is enacted by the end of the year, New Jersey employers and employees will not be able to take advantage of this program.

HSAs could increase the number of workers with health insurance because they allow employers and individuals to contribute tax-free to savings accounts and withdraw the funds without tax penalty to pay for “qualified medical expenses” as defined by the IRS. These include a wide range of medical services, including doctor office visits, routine checkups, and even over-the-counter medication.

Unspent funds in an HSA can accumulate from year to year; they do not have to be spent down at the end of the year like Flexible Spending Accounts (FSAs). These funds also belong to the account holder and can be used even if the individual changes jobs. For more information, contact Christine Stearns at ext. 260.

Legislation aimed at increasing the use of money-saving electronic medical records by New Jersey hospitals was released May 23 by the Senate Health Committee. The bill, S-1559 (Bark), would create a 15-member task force to identify the types of technologies that would be most effective in reducing duplication and errors at hospitals.

With employers’ health insurance costs rising at four times the rate of inflation, New Jersey’s healthcare system can no longer afford costly medical errors, duplicative tests and procedures, and high administrative costs. Experts estimate that as many as one in five lab tests and x-rays are conducted solely because previous test results were unavailable.

Greater use of electronic records will reduce duplication by giving doctors access to previous tests and cut down on errors by making a patient’s medical records more accessible to the treating physician. For more information, contact Christine Stearns at ext. 260.

The original proposal would have defined as “lobbying” such routine activities as obtaining bid specifications or checking on permit applications. Employees involved in these types of activities would have had to register as lobbyists and pay an annual fee of $425. For more information, contact John Rogers at ext. 209.

Currently, unions and employers have an equal right to impose work stoppages during a labor dispute, either through a strike or a lockout. This balance encourages good faith negotiations because it inflicts economic hardship on both sides.

Under S-2264 (Sweeney), unions would still be able to impose economic hardships on business owners with a strike, but union workers would be eligible for up to $503 a week in unemployment benefits during a lockout.

For more information, contact John Rogers at ext. 209.

In separate actions, the Senate Budget and Appropriations Committee voted to amend S-1759 (B. Smith) and the Assembly Environment Committee amended A-3182 (McKeon, Manzo) to drop the requirement that most private-sector companies retrofit their diesel engines. Both bills would now limit diesel engine retrofits to school buses, publicly owned diesel garbage trucks, privately owned diesel garbage trucks under public contract, publicly owned on-road diesel vehicles and off-road diesel equipment, and all commercial buses.

Originally, the two bills would have required all private-sector employers to retrofit diesel engines on trucks and equipment at an estimated cost of up to $8,000 per vehicle.

NJBIA opposed forcing New Jersey businesses to retrofit their vehicles, as it would have put them at a competitive disadvantage with companies in other states while providing little reduction in overall emissions. Transportation companies in Pennsylvania, New York, Delaware and other states would not have been required to undergo retrofits, even though they transport goods through New Jersey and provide services to New Jersey companies.

Furthermore, by concentrating on buses, garbage trucks and publicly owned vehicles, the State can achieve a significant reduction in emissions in the areas of the State most impacted by diesel exhaust. For more information, contact Jim Sinclair at ext. 236.

Repeal of Air Toxics Surcharge Advances

Legislation that would repeal a year-old tax on air emissions was released May 19 by the Senate Budget and Appropriations Committee.

The NJBIA-backed bill, A-3667 (Sires, Van Drew)/S-2124 (Doria), has the support of the NJ Departments of Treasury and Environmental Protection and the Commission on Commerce, Economic Growth and Tourism. It now awaits action in the full Senate. The surcharge was supposed to target on facilities that generated certain air emissions, but it has actually penalized facilities that have reduced emissions. For more information, contact Jim Sinclair at ext. 236.

State Assembly OKs Property Tax Convention

The full Assembly on May 16 approved property-tax-convention legislation that would likely lead to a higher tax burden on businesses. NJBIA opposes the bill.

As conceived in A-5269 (Roberts, Greenstein), a property tax convention could do little more than shift property taxes to other taxes, such as business taxes. Delegates would be prevented from considering government spending, which drives the need for higher taxes.

NJBIA is particularly concerned that the convention would lead to repeal of a provision in the New Jersey State Constitution that requires business and residential properties to be taxed at the same rate. Without it, municipalities could tax business properties at higher rates.

For more information, contact Art Maurice at ext. 247.

Small and medium size businesses would become eligible for State job retention tax credits through the “Business Retention and Relocation Assistance Act” of 2004 under legislation, A-3834 (Fisher), that was released by the Assembly Commerce Committee on May 12. Specifically, the bill would lower the minimum number of retained jobs to 50 from 250 needed to qualify for a one-time business tax credit of up to $1,500 per job retained.

The program is a great idea, but the current threshold of 250 jobs excludes 97 percent of the State’s employers. NJBIA strongly supports this bill. Lowering the threshold in this program is one of the items on NJBIA’s Agenda for Manufacturing Renewal in New Jersey. For more information, contact Art Maurice at ext. 247

It was all part of Junior Achievement’s April 29 “JA-In-A-Day” event to give grade-school students the opportunity to hear firsthand how the academic subjects they learn in school apply to the real world of work.

HSBC is one of the world’s largest banks and Junior Achievement (JA) is the world’s largest organization dedicated to educating young people about business, economics and free enterprise.

“As an organization committed to financial literacy, HSBC employees are keenly aware of the critical role early education plays in creating a generation of knowledgeable consumers,” said Patrick A. Cozza, Group Executive of HSBC Insurance Services & Taxpayer Financial Services in Bridgewater, NJ, and a member of the State Board of Directors of JA-NJ.

HSBC has supported Junior Achievement since 1942, both financially and practically. HSBC employees Kirk Bryans, Group Director, Sales; Keith Pladsen, Division General Manager; and Sondra Keith, Division HR Manager, all serve on the JA-NJ Board of Directors. HSBC also provides company time for employees to participate in JA programs. This year, HSBC employees will visit 114 classrooms and deliver JA programs to more than 2,000 students from kindergarten thru 12th grade.

“We are thrilled to receive volunteer support from HSBC, a longtime champion of JA,” said Catherine Milone-Richards, president of JA-NJ. “HSBC volunteers impart their experience and financial knowledge to students who are starting to learn the value of personal financial literacy and the economics of life.”

NJBIA has partnered with JA to expand programs statewide. “JA programs show young people how to be successful young adults in tomorrow’s business world,” NJBIA President Philip Kirschner said.

To learn how to support JA programs in your area, contact NJBIA Vice President Libby Vinson at ext. 201.

Meet Our Members

A periodic profile of the people who make NJBIA the State’s premier business association.

Julie A. Strout
Manager of New Jersey Government Affairs
Jersey Central Power and Light

When it comes to legislative activity concerning her company and the energy industry, Julie Strout is a fixture of the business community throughout central and northern New Jersey. She is the public voice for FirstEnergy Corp. and its Jersey Central Power and Light electric utility operating company. For this reason, it is critical that she maintains contact with the businesses the company serves.

Julie uses the great networking events and grassroots affiliates of NJBIA to meet many business professionals and legislators.

“It’s important for me to know what the issues are with the businesses our company serves,” Strout says. “Being an NJBIA member allows me to share in their resources, reach out to fellow NJBIA members and participate in their events. Having the knowledge gained from NJBIA helps me better understand the business issues of our customers.”

Strout has been a member of the Monmouth County and Ocean County Employer Legislative Committees (ELCs) for 15 years. She is a past chair of the Monmouth ELC and she is currently chair of the Ocean ELC. The ELCs are NJBIA’s grassroots affiliate.

For ten years, she has also participated in the annual Legislative Briefing Breakfast series, where NJBIA presents its legislative agenda at breakfast meetings throughout the State, and the NJBIA Public Policy Forum, which brings together the State’s top political and economic opinion leaders.

Strout is a long-time member of NJBIA’s Government Affairs Committee and a regular participant in the annual Made in NJ Day, where NJBIA members display their products in the halls of the State Capitol.

“Julie is an eloquent spokesperson for her industry and a tireless advocate for improving New Jersey’s business climate,” NJBIA Senior Vice President Melanie Willoughby said. “We’re certainly glad that she is part of the NJBIA team.”

Twelve Projects Win 2005 New Good Neighbor Awards

Twelve construction projects involving everything from renovated office buildings to state-of-the-art distribution centers were honored at NJBIA’s 45th Annual New Good Neighbor Awards Luncheon, held June 3 at the Somerset Marriott in Somerset, New Jersey.

The New Good Neighbor Awards Luncheon annually brings together a dynamic group of builders, architects, engineers and others in the development community to honor those responsible for much of the State’s impressive new construction and renovation.

Twelve winners were selected based on economic impact, architectural merit and community involvement. In all, 31 applications representing $500 million in construction costs and 7,000 jobs were submitted.

“It gives me great pleasure to present these awards,” NJBIA President Philip Kirschner said. “Today’s winners have improved communities across the State with new development or redevelopment projects. They have turned their properties into vibrant, thriving businesses. They have beautified downtowns, restored historic buildings, and created new jobs.”

The New Good Neighbor Awards are presented annually to new developments or renovations that exhibit architectural excellence, create jobs, and enhance the community. An independent panel of judges selects the winners.

New Good Neighbor Awards 2005 Winners

Cape Liberty Cruise Port, LLC
Bayonne

Cedar Crest of Pompton Plains
Pompton Plains

Lyric Hall
Rocky Hill

Mercedes-Benz Regional
Master Parts Distribution Center
Robbinsville

The Peddie School-120 Main Street
Hightstown

Red Bank Veterinary Hospital
Tinton Falls

Roche Molecular Systems
Branchburg

Stryker Orthopaedics
Mahwah

Firmenich’s “The Prism”
Fragrance Laboratory
Plainsboro

Woodcrest Corporate Center
Cherry Hill

_____________________

Special Projects

Lewis Sigler Institute for Integrative Genomics at Princeton University

The Enterprise Center at the NJ Institute of Technology in Newark

NJBIA thanks its 2005
New Good Neighbor Luncheon Sponsors

Allied Fire & Safety Equipment Company, Inc.
Building Contractors Association of New Jersey
Center Square Builders, Inc.
Firmenich Incorporated
Fitzpatrick & Associates, Inc.
New Jersey Commerce, Economic Growth & Tourism Commission
PSEG Site Finders
Schoor DePalma, Inc.
Skanska USA Building, Inc.
Stryker Orthopaedics
Valley National Bank

NEW JOBS
Legislative Receptions
NEW JOBS will hold five evening legislative receptions to support the State’s probusiness legislators in the 2005 elections. Proceeds will benefit the New Jersey Organization for a Better State (NEW JOBS), the business community’s leading political action committee. Support legislators who will work for a better business climate. For more information, call Sherry Esteves, ext. 219, or visit www.newjobspac.com.

July 7
Morris County Legislative Reception, Wyeth, Madison

September 13
Monmouth/Ocean County Legislative Reception, The Mill at Spring Lake Heights

September 22
Atlantic County Legislative Reception, The Carnegie Library Center in Atlantic City

September 27
Mercer County Legislative Reception, The Boathouse at Mercer County Park

October 5
Night at the Meadowlands, Meadowlands Racetrack

TUESDAY, JULY 19
Golf & Tennis Day
NJBIA will hold its 35th Annual Golf & Tennis Day at Forsgate Country Club in Monroe Township. The event is one of the State’s major business outings, attracting 300 golfers each year. Cost per person: $260 for golf and dinner, $145 for tennis and dinner, and $99 for dinner only. For more information, call Stacy Wichner at 609-393-7707, ext. 213. To become a sponsor, contact Sherry Esteves at 609-393-7707, ext. 219.

TUESDAY, OCTOBER 18
Awards for Excellence Dinner
NJBIA member companies that have achieved excellence in activities related to environmental quality, human resources management, public service, and job creation will receive NJBIA’s Award for Excellence during a dinner banquet at the Westin Princeton. Established in 1984, NJBIA’s Awards for Excellence recognize companies of every size, from modest, family-owned enterprises to Fortune 500 companies. The program begins at 6:00 p.m. and will include a reception, dinner and the awards presentations. The price is $149 per person. Tables of ten are available. To register, call Stacy Wichner at 609-393-7707, ext. 213.

— Become an Awards for Excellence Sponsor! —
Associate your business with excellence by formally recognizing the achievements of your colleagues through one of the following sponsorship opportunities. To become a sponsor, call Sherry Esteves, ext. 219.

Gold Sponsor - $2,000
You get: reserved table of 10; company name listed on event signs; two-line message in event program; listing in follow-up story in NJBIA’s monthly Business Voice newsletter and New Jersey Business Magazine, both of which reach more than 23,000 business owners and managers across the state; and a link to your company Web site on www.njbia.org.

Silver Sponsor - $600
You get: one ticket to dinner with reserved seating; company name listed on event signs; two-line message in event program; listing in follow-up story in NJBIA’s monthly Business Voice newsletter and New Jersey Business Magazine.

Bronze Sponsor - $400
You get: two-line congratulatory message in event program.

NOTE: Copy deadline for congratulatory messages in the event program is October 3.

NJBIA is proud to offer this valuable publication for the savvy employer edited by Martha Lester, Esq., Chair of Lowenstein Sandler’s Employment Law Practice Group. The guide covers Federal and New Jersey employment-related laws, regulations, and best practices, making it an essential resource for managers and employers seeking to comply with laws and manage workplace risks effectively. This user-friendly resource provides the law, contact information, HR tips, frequently asked questions, and forms. Contact Chris Lopez at 609-393-7707, ext. 224, to reserve your copy of this invaluable guide, which will be available for distribution by early summer. Prices: NJBIA members $80 (plus 6% NJ sales tax), nonmembers $115 (plus 6% NJ sales tax).