In recent meetings with NJBIA members, Jon Corzine's top advisors stressed that the Governor is serious about growing the economy and that economic growth will play an ongoing and prominent role in his agenda. Their comments were made at the first two NJBIA Meet the Decision Makers events, held on April 12 and 21.

During the April 12 briefing, Corzine's Chief of Staff Tom Shea, Policy Counsel Heather Howard and Deputy Chief of Staff Maggie Moran said this Administration will do things differently, making it clear that everything from the way the office is structured to the way Corzine himself has gone about fashioning his first budget proposal represents a break from past practices.

Corzine's commitment to economic growth is demonstrated in his budget, where the alternative minimum assessment and the suspension of net-operating-loss deductions are allowed to expire, they said. Both provisions have cost businesses hundreds of millions of dollars a year in taxes. “Phase-out of some of the corporate taxes, we think, is essential if we are going to grow our way out of this problem,” Shea said. After the budget is settled (the deadline is July 1), Shea said the Governor's office would create a working group with business to find ways of attracting new jobs in key industries. He emphasized that it would not be an advisory panel, but a group that “will be able to turn ideas into action” quickly.

At the April 21 event, Office of Economic Growth Chief Gary Rose, Commerce Commission CEO Virginia Bauer, and Economic Development Authority CEO Caren Franzini explained how New Jersey will fashion and implement economic growth policy.

The way they see things, the newly created Governor's Office of Economic Growth will develop the plan, the NJ Commerce, Economic Growth and Tourism Commission will implement it, and the NJ Economic Development Authority (EDA) will finance it.

Rose plans to put together a world-class, private-sector-style tracking system to keep on top of the commitments State government makes. He also said he would review all of the State's economic development programs to see if they still make sense.

Bauer described the Commerce Commission as an advocate for business that does everything from helping businesses get registered to finding new markets overseas for companies. She said her main task is helping companies overcome the regulatory burdens they face in New Jersey .

EDA's Franzini said the trick is making financial investments at the right time and in the right place so they can have a big payoff for the State economy. She said the EDA is undertaking a program that will cut its two-month approval process down to a few days.

The April 12 Meet the Decision Makers program was sponsored by AT&T, the Healthcare Payers Coalition of New Jersey, Jersey Central Power and Light (A FirstEnergy Company), MyWireless.org, NJM Insurance Group/NJM Bank FSB, and Verizon.

The April 21 Meet the Decision Makers breakfast was sponsored by AT&T, Jersey Central Power and Light (A FirstEnergy Company), MyWireless.org, The New Jersey Community College Consortium for Workforce and Economic Development, The New Jersey Council of County Colleges, NJM Insurance Group/NJM Bank FSB, and Verizon.

The Senate on March 20 approved legislation that would require businesses to withhold payroll taxes for the unregistered construction contractors they hire.

The bill, S-468 (Sweeney) , is awaiting action in the Assembly Labor Committee. If the bill is enacted, employers who hire a contractor that is not incorporated in the State would have to collect a tax of 7 percent of the total amount paid and forward it to the NJ Department of Treasury on a monthly basis. Businesses would be responsible for verifying a construction contractor's incorporation and providing a written annual statement to each contractor detailing the total payments made on their behalf. Businesses that fail to withhold the taxes would be subject to the same penalties they would receive if they failed to pay payroll taxes for their own employees.

NJBIA opposes this legislation. The business of collecting these taxes belongs to the NJ Division of Taxation, not the hardworking employers of New Jersey . This bill would impose an inefficient and costly mandate on New Jersey businesses and would unfairly shift the burden of tax compliance onto them. Employers would need to establish costly monitoring and tracking systems to comply and face unfair penalties. For more information, contact Art Maurice at amaurice@njbia.org, or ext. 247.

Governor Jon Corzine recently created a special commission to make government more efficient and effective by enlisting the help of a panel of business and other leaders to examine every aspect of State government.

Corzine signed an executive order creating the New Jersey Commission on Government Efficiency and Reform on April 7. The commission will evaluate the State budget and the structure of State agencies and recommend changes to the way government operates and spends taxpayers' money. The commission will consist of 13 members appointed by Corzine and will be chaired by Richard Leone, a former State Treasurer and chairman of the Governor's transition after last November's election.

Corzine pledged to form the commission during his first budget address as a way to combat what have become annual multibillion dollar budget deficits. (The State is confronting its fourth budget deficit of more than $2 billion in as many years.) The commission is scheduled to issue its first report three months after its first meeting and will continue to offer suggestions afterwards.

In his announcement, Corzine said the commission would not be limited strictly to State government, but would include a comprehensive analysis of how all governments spend taxpayers' dollars. The review will include independent authorities, local school districts and other governmental entities as well as State agencies. The commission will report on issues such as regionalization and shared services, the structure of the State workforce, and the accessibility and efficiency of higher education. The idea, Corzine said, is to get the best ideas from business, labor, education, and government leaders to ensure that State government gives taxpayers the best service at the lowest cost.

Monthly E-News Contains News You Can Use

Beginning this month, a new feature will be added to NJBIA's monthly E-News online newsletter. We will present a timely issue that directly impacts your company; then you will be able to download useful information to help you deal with that issue. First up will be a recent revision to New Jersey 's health insurance coverage law that requires employers to offer coverage to young adults up to the age of 30 who are dependents of employees.

If you are not already signed up to receive the E-News, but would like to, please send an e-mail to Vincent Civitillo at vcivitillo@njbia.org with your company name and “Subscribe to E-News” in the body.

Controlling healthcare costs by offering more affordable basic health plans, improving quality and providing tax deductions is the best way to increase the number of people with health insurance. That's the message the New Jersey Business & Industry Association delivered during National Cover the Uninsured Week, a national project of the Robert Wood Johnson Foundation that took place May 1-7.

NJBIA joined a coalition of 11 New Jersey business groups May 1 at a State House press conference promoting efforts to increase the number of insured individuals. The coalition represents tens of thousands of businesses in the State, employing millions of New Jersey 's residents.

“We will work with legislators and the Governor's office to resolve the issues of healthcare affordability and access,” NJBIA Senior Vice President Melanie Willoughby said. “It would be a mistake, however, to scrap the entire system. New Jersey 's employer-based system remains strong and viable, providing health insurance to more than 5 million State residents. It just needs some help. So let's keep what works and mend what is broken. That's the way to get more people into the health insurance system.”

As the largest state-level employer association in the nation, NJBIA represents more than 23,500 member businesses, most of which struggle with the high cost of providing health insurance to their employees.

Exploding health insurance costs are pushing the cost of health benefits beyond the reach of many businesses, especially small businesses. According to NJBIA's Health Benefits Survey, the cost of providing health benefits to employees exploded by 55 percent in just four years (2001 through 2004). The number of employers providing health benefits to their employees has also begun to drop, the survey found.

NJBIA has been pushing for comprehensive health insurance reforms that will make it easier for employers to provide health insurance to their employees.

“Our goal should be to build on the successes of the employer-based system to expand coverage while improving the affordability, quality and value of coverage for all,” Stearns said. “State lawmakers can do much to accomplish these goals by refusing to enact costly new coverage mandates, injecting more flexibility into the State's regulated insurance markets, and giving employers who provide coverage a State tax benefit.”

NJBIA's health insurance reform plan would:

• Reform the Small Employer and Individual Health Insurance Markets to give employers more flexibility in designing their own plans.

• Improve the quality of healthcare by reducing medical errors and duplication of tests and making more information readily available to the consumer.

• Promote greater transparency in healthcare by giving employers and consumers ready access to information to compare healthcare plans and hospitals and doctors on the basis of cost and quality of performance.

• Advance the “pay-for-performance” movement—rewarding physicians and hospitals for delivering high-quality care.

• Hold the line on State-imposed health coverage mandates. Use the Mandated Health Benefits Commission to review the cost and necessity of existing and proposed new healthcare mandates.

• Provide direct State tax incentives to individuals and small businesses.

On April 15, New Jersey banned smoking in virtually all public and private workplaces, including office buildings, State or local offices, theaters and concert halls, public libraries, museums, bars, restaurants, parking facilities, break rooms, waiting rooms, sports venues, shopping malls, retail stores, hotels, and apartment building lobbies. A limited number of places are exempt from the law: casino floors, cigar bars, tobacco retail stores, private homes and automobiles. Also, a hotel may permit smoking in up to 20 percent of its guest rooms.

Businesses are required to post signs at all public entrances to their buildings saying smoking is prohibited. Signs must also be posted in any areas where smoking may be allowed. A person who smokes in violation of the act is subject to a fine of not less than $250 for the first offense, $500 for the second offense and $1,000 for each subsequent offense. A person who fails to comply with an order from the NJ Department of Health (DOH) or the local board of health concerning a violation is subject to the same fines. For questions and to obtain “No Smoking” signs, visit the DOH Web site at www.smokefree.nj.gov.

To obtain a copy of the NJBIA Fast Facts, which provides a comprehensive review of the smoking ban, contact Lisa Figatner at lfigatner@njbia.org, or at ext. 237.

“Whatever we do with the budget, it must create a climate that says ‘come on in businesses, because we need you.'”

State Senator Martha Bark discussing the State budget at NJBIA's March 31 Meet the Legislative Leaders breakfast briefing.

NJPRO Foundation, the public policy research affiliate of the New Jersey Business & Industry Association (NJBIA), held a reception recently to honor the assemblywomen in the State Legislature. Charlene Brown, vice president with AT&T and chair of the NJPRO Foundation Board of Trustees, served as master of ceremonies.

“New Jersey 's assemblywomen are a force to be reckoned with,” Brown said. “They have distinguished themselves with their outstanding contributions to the New Jersey Legislature and to the people they represent.”

Honored were Assemblywomen Bonnie Watson Coleman (Majority Leader), Jennifer Beck, Nilsa Cruz-Perez, Linda Greenstein, Amy Handlin, Valerie Vainieri Huttle, Marcia Karrow, Pamela Lampitt, Alison Littell McHose, Sheila Oliver, Nellie Pou, Joan Quigley, Linda Stender, Oadline Truitt, Charlotte Vandervalk, and Joan Voss.

Governor Jon Corzine's proposed budget and its impact on business were the central topics of discussion at two recent briefing breakfasts held by NJBIA to bring the State's top legislative leaders together with its members. The events were held on March 31 in Cherry Hill and April 7 in Elizabeth .

On April 7, the four legislative leaders from North Jersey , Senate Majority Leader Bernard Kenny, Assembly Speaker Pro Tem Wilfredo Caraballo, Senate Republican Whip Tom Kean and Assembly Republican Leader Alex DeCroce, took questions from 100 NJBIA members.

Kenny and Caraballo said Corzine's budget was remarkably probusiness, given the tremendous financial strain facing the State. It does not suspend net-operating-loss (NOL) deductions and does not extend the alternative minimum assessment (AMA), which taxes a company's gross receipts, beyond July 1.

Kean noted that the proposed budget includes $3 billion in new spending, a 10 percent increase over current levels, even as proponents say the budget is being cut. But Caraballo said most of the spending increases were mandatory, coming from court mandates on education funding and contractual health insurance and pension commitments for employeees and retirees.

DeCroce said there are still plenty of opportunities to cut the budget.

The three Southern legislative leaders, Assembly Budget Committee Chairman Louis Greenwald, Senate Labor Committee Chairman Stephen Sweeney and Senate Republican Conference Leader Martha Bark, pledged at the March 31 event to prevent higher taxes and support ending diversions from the State's Unemployment Insurance Fund. But they differed on ways to address skyrocketing health insurance costs.

On the budget, Greenwald said, “My advice to people is to remain calm.” The Governor's budget proposal includes a mix of tax increases and program cuts that will be thoroughly reviewed by the Legislature before anything is enacted.

Bark said she was concerned that tax increases, and in particular the sales tax increase, would further damage the State's business climate and make things even worse. “Whatever we do with the budget, it must create a climate that says ‘come on in businesses, because we need you desperately.'”

On the subject of healthcare, Greenwald and Sweeney expressed anger at large profitable companies such as Wal Mart, which they believe push employees into government-funded health insurance programs to lower their own health insurance costs. Sweeney has sponsored legislation that would make companies with more than 1,000 employees spend about $8,700 per person on health insurance or pay the balance to the State in the form of a healthcare tax. (NJBIA opposes this bill.)

Bark strongly disagreed with the healthcare tax bill, saying that reducing health insurance costs should be the Legislature's goal. “When you start to tell a business how to run itself, you cause a lot of problems.”

The March 31 Meet the Legislative Leaders breakfast was sponsored by AT&T, BP, the Chamber of Commerce Southern New Jersey, Jersey Central Power and Light (A FirstEnergy Company), MyWireless.org, NJM Insurance Group/NJM Bank FSB, and Verizon.

The April 7 Meet the Legislative Leaders event was sponsored by AT&T, Comcast, Fidelity Investments, Jersey Central Power and Light (A FirstEnergy Company), MyWireless.org, NJM Insurance Group/NJM Bank FSB, United Water, and Verizon.

The Health Affairs Committee met recently to discuss the Governor's recent budget proposal and its proposed hospital-bed tax. The meeting was led by committee Chair H. Jay Sexton of WithumSmith+Brown.

Committee members discussed Governor Corzine's proposed hospital bed tax that equals 5 percent of non-Medicaid hospital revenues. That amounts to a $430 million tax. Rather than simply assessing the tax on revenues, the State would impose the tax on each hospital bed. The NJ Hospital Association estimates that the tax would amount to $1,427 per licensed bed per month.

Of the money raised by the tax, half ($215 million) would go to the Medicaid program to raise hospital reimbursement rates and the other half would go to the State Treasury. Because state Medicaid expenditures are matched by the federal government, $430 million would be distributed to hospitals in the form of higher Medicaid fee-for-service reimbursements and higher Medicaid managed-care reimbursements.

Hospitals with a greater number of Medicaid patients would “win” under this proposal, while hospitals with a lower number of Medicaid patients would “lose” because they would pay more in the form of the new tax than they would receive back in the form of higher reimbursements. NJBIA opposes this hospital bed tax.

The budget also includes $583 million in charity care funding for New Jersey's hospitals. For the first time in 12 years, charity care would not be funded with a diversion from the State's Unemployment Insurance Fund.

NJBIA told committee members it strongly opposes the proposed committee substitute Senate bill 477 (Sweeney, Conniglio) . Essentially, the measure mandates that all large employers provide at least $8,700 per employee on health benefits or pay the difference between what it spends and that figure as a tax.

S-477 requires employers with 1,000 or more employees to provide health benefits with a value of at least $4.17 per hour to each employee who works 15 hours or more. If $4.17 per hour is not spent, then the employer would be required to pay a tax to the State to make up the difference.

For example, the bill would require an employer to spend $8,673 annually for those working 40 hours per week or pay a tax. Since single-health coverage costs an average of about $5,000 per employee, employers would be subject to a tax of about $3,700 per employee.

The Health Affairs Committee is one of 11 NJBIA policy committees. The committees have representation from companies of different size and regions of the State and guide the Association in responding to proposed laws and regulations and help shape NJBIA's public policies.

If you are interested in joining the Health Affairs Committee, contact Christine Stearns at cstearns@njbia.org, or ext. 260.

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

John Parodi
Energy Manager
Hoffmann-LaRoche Inc.

The ever-changing field of energy management has become lightning hot in recent years as spikes in energy prices and greater awareness of the environmental consequences of energy consumption have attracted the public's attention.

For this reason, the work that Hoffmann-La Roche Inc. Energy Manager John Parodi performs as Chairman of the NJBIA Energy Policy Committee is of great value.

Parodi is responsible for energy management and strategic energy planning for Hoffmann-LaRoche's Nutley site. His duties include energy procurement, price risk management, coordination with site utility operations and demand-side energy management.

“John's a great member and Chairman. He's always willing to meet and discuss the latest energy issues and recruit valuable people to the Association's Energy Committee,” said NJBIA Assistant Vice President Sara Bluhm .

Prior to working at Roche, Parodi worked as an energy-industry consultant, providing regulatory support to the utility industry. For the past nine years, Parodi has been a member of the NJBIA Energy Council, which provides guidance to the Association on energy issues.

Employers in New Jersey and seven other northeastern states recently got their first look at the proposed Regional Greenhouse Gas Initiative (RGGI) rule that will implement a costly new system with more stringent emission standards for electric-power utilities and other businesses with large generators. NJBIA opposes RGGI because it will increase employers' costs, either directly in meeting the new emissions standards or indirectly through higher energy costs, but will have little effect on the environment.

The public has until May 22 to comment on the draft regulations, after which the RGGI Staff Working Group will have 45 days (July 6) to make changes and release the revised rule. Written comments should be submitted to RGGIcomm@gw.dec.state.ny.us.

RGGI requires participating states to cut carbon dioxide and other greenhouse gas emissions every year beginning in 2009, reducing them by a total of 10 percent by 2019. Under the proposed rule, each state would set pollution allowances for how much utilities and generators are permitted to emit and charge fees based on 25 percent of each company's allowance. Companies that exceed their allowances either would have to install new emission control equipment and upgrade their facilities or purchase pollution credits from other companies that are below their allowances.

Even if the RGGI is implemented, it would have a minimal impact on air quality. This is a symbolic measure that will increase energy costs without any significant pollution reduction. Contact Sara Bluhm at ext. 204, or sbluhm@njbia.org, for more information.

Friday, June 2
New Good Neighbor Awards Luncheon

NJBIA's 46th Annual New Good Neighbor Awards Luncheon will be held at the Sheraton at Woodbridge Place, Iselin. Awards will be presented to New Jersey businesses that have recently built or renovated outstanding commercial facilities. A reception will be held at 11:45 a.m., followed by lunch from 12:30 p.m. to 2:00 p.m. Tickets may be purchased for $70 each. For more information, call Stacy Wichner at 609-393-7707, ext. 213. To become a sponsor, contact Sherry Esteves at ext. 219. The list of winners can be found at www.njbia.org.

Wednesday, June 7
Making Sense of Family and Disability Leave

This program will help employers sort through bewildering levels of leave regulations and show them how to avoid costly mistakes regarding length of leave, job protection, benefits and discrimination issues. Top employment law specialists will explain how to avoid the many legal pitfalls and will share the lessons they have learned from years of struggling with leave requests. The seminar will be held at the Holiday Inn in Hazlet from 8:30 a.m. to 12:00 p.m. The cost is $109 per person for NJBIA members and $139 for nonmembers. To register, call Alex Hollywood at 609-393-7707, ext. 262.

Friday, June 23
Navigating New Jersey's Pay-to-Play Laws

Since January 1, doing business with State, county and local governments has become much more challenging due to complicated new rules on campaign contributions by government contractors and vendors that can prevent you from getting government contracts. At this seminar, the government officials in charge of enforcement will explain what contractors and vendors need to know about the new laws. You will also get practical advice from local and county government officials and vendors who are already dealing with the new laws. If you have a government contract of any kind or are looking to do business with government, register now and find out what you need to do to protect your business. This event will be held at the Hilton East Brunswick from 8:30 a.m. until noon. The cost is $109 per person for NJBIA members and $139 for nonmembers. To register, please call Sherry Esteves at 609-393-7707, ext. 219.

Tuesday, July 18
Golf & Tennis Day

NJBIA will hold it's 36th Annual Golf and 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. The cost per person is $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. Heighten your company's visibility by becoming a Golf Day sponsor; contact Sherry Esteves at ext. 219.

Wednesday, Sept. 27
Meet NJ's Two Top Legislative Leaders

Hear directly from New Jersey's two most powerful legislative leaders, Assembly Speaker Joe Roberts and Senate President Richard J. Codey . This event will be held at the Forsgate Country Club in Monroe Twp. from 7:45 a.m. until 10:00 a.m. Plenty of time will be set aside to answer your questions. Don't miss this informative networking event. Cost to attend is $69 per person for NJBIA members and $105 for nonmembers. To register call Stacy Wichner at 609-393-7707, ext. 213. To become a $2,000 sponsor, contact Sherry Esteves at ext. 219.

2006 NJBIA Sponsor Opportunities

Every year, NJBIA holds more than 20 high-profile events that attract thousands of employers from across New Jersey. These events give our event sponsors a great opportunity to reach a large and responsive business audience. You can sponsor one event or several events. Visit www.njbia.org and click on Events and Programs for more details or call Sherry Esteves at 609-393-7707, ext. 219.