Senate President Richard Codey and Assembly Speaker Joseph Roberts recently promoted their ideas on property tax reform while declaring changes to the fairness clause of the New Jersey State Constitution to be a dead issue.  Codey and Roberts also took questions from the audience of more than 250 NJBIA members at the Association’s September 27 “Meet the Top Two Legislative Leaders” breakfast.  The two leaders covered a wide range of topics, including health insurance, economic development, and energy.

But with four joint legislative committees investigating possible property tax reforms, the issue of what to do about New Jersey’s highest-in-the-nation property taxes took center stage.  An issue of particular concern to business is the fairness, or uniformity, clause of the State Constitution.  It has always required that business and residential property be taxed at the same rate, but some policymakers have suggested changing it. Both Codey and Roberts said they had no intention of taxing businesses at a higher rate.  “I’m a licensed funeral director, and as far as I’m concerned, (the issue) is in the morgue with a toe tag on it,” Codey said.  “It’s not going to happen.”

Assembly Speaker Roberts agreed.  He said the property tax issue is a “multi-dimensional monster” that defies a single “silver bullet” solution, but must be addressed with a combination of initiatives to provide meaningful tax relief.  Local government consolidation, spending cuts, shared services, and public employee benefits reform all must be part of the solution, he said.  Codey added that past solutions like increased property tax rebates, more State aid to schools and municipalities, and State assumption of local costs have not yielded long-term results.  “Obviously, more of the same will not work.”

At the top of the list of proposed reforms are shared services and consolidation.  The hundreds of municipalities, school districts, and local government entities that are supported by local property taxes create a wasteful, inefficient system that drives up costs.  Roberts said consolidation would require more than incentives to encourage towns to merge.  Those that refuse to consolidate should face an economic cost as well.  “It can’t just be a carrot approach in my opinion.  There has to be a stick as well,” he said.  Codey said school districts had to dramatically increase the use of shared services.  Codey’s home town of West Orange shares a tax assessor and health officer with other communities to save money.  “I can’t give you any examples of school districts that share services,” Codey said.

The cost of public-employee benefits is also on the list of needed reforms, the two leaders said.  Most local government employees get their health benefits through the State Health Benefits Program at very little cost to them.  With health insurance costs skyrocketing, changes will have to be made in the future.  Both said they envisioned a benefits system that would look more like the private sector.  “More often than not, people like you (business people) are ahead of the curve on this,” Codey said.

Roberts added that Governor Jon Corzine moved new NJ Transit employees into a 401k-style pension plan, and he would like to see more of that.

Assemblywoman Joan Quigley recently spoke to NJBIA’s Health Affairs Committee members and told them about the problems New Jersey hospitals face.

The Assemblywoman said many hospitals in the State — such as St. Mary Hospital in Hoboken, which was facing closure — are under tremendous pressure to make ends meet.  To help St. Mary stabilize financially, legislation was passed in June to allow it to become a municipal authority.

Quigley engaged in a wide-ranging discussion with the Committee members about the problems hospital systems face.  These included the need to improve quality, allow for necessary infrastructure investments, require higher standards for physicians’ admitting credentials, and allow for presumptive eligibility for Medicaid and FamilyCare.

Concerns about the high cost of health insurance were addressed, which prompted a discussion of strategies that businesses are taking to reduce costs, including Health Savings Accounts.  Committee members also stressed the need for legislative action to reform the Small Employer Health Insurance marketplace and to hold the line on mandated health benefits.

The next Health Affairs Committee meeting will be held on Friday, November 10 at the Forsgate Country Club in Monroe Township.  For more information, contact Christine Stearns at ext. 260.

NJBIA has recently partnered with Junior Achievement and The Star-Ledger to establish the New Jersey Business Hall of Fame.  It will recognize New Jersey business leaders who are role models to today’s youth.  At a Hall of Fame ceremony in the spring, the first three laureates will be recognized for outstanding achievements in their industries and for their commitment to improve the quality of life in New Jersey.

The ceremony honoring the laureates, sponsored by Verizon, will be held at 6:00 p.m. on Tuesday, April 19, 2007, at The Mezzanine, which is located at 744 Broad Street in Newark. Proceeds from the event will benefit Junior Achievement of New Jersey (JA), a nonprofit organization dedicated to bringing the real world into the classroom by teaching young people about business and economics.

As a partner of the event, NJBIA is seeking your nominations for honorees.  This is your chance to nominate a business leader from New Jersey whom you feel deserves it!  Visit the JA Web site http://nj.ja.org to obtain a nomination form and nominate your candidate. The deadline for nomination submissions is November 15, 2006.

For more information about the event or laureate nominations, please contact JA’s Dawn Schwartz at 973-533-1133.

Wages.  Salaries.  Bonuses.  Annual compensation increases.  In hiring qualified employees or retaining talented staff, you want to ensure that your pay scale is competitive with that of employers in your field and within your region.

Dealing with these issues can be confusing and unnerving. 
Avoid unnecessary anxiety!  NJBIA has a cost-effective remedy. 
The NJBIA Compensation Report (2006-2007) is the most complete guide to salary and wages in your industry and location.  It contains valuable information on over 200 job classifications within 13 job families. The report also contains breakdowns by five geographic regions within the State for most jobs listed, along with statewide totals for all jobs.

NJBIA members can purchase this handy and invaluable reference guide at a discount!  The cost is $95 for NJBIA members and $200 for nonmembers plus 7 percent NJ sales tax.  To purchase a copy, contact Member Services at 609-393-7707, ext. 224.

In releasing his new Economic Growth Strategy, Governor Jon Corzine has presented a much needed blueprint for overcoming some of the persistent problems hindering economic growth in New Jersey, said NJBIA President Philip Kirschner.

“For the first time in years, we have a comprehensive plan to tackle many of the problems that have been holding our private-sector economy back,” Kirschner said.  “Governor Corzine has picked up on many of the key issues facing employers.  This is a report that attempts to build on the State’s strengths and address the problems that many businesses face.”

Bolstering small businesses, creating a single stop for businesses navigating the State’s bureaucracy, and making the State more business-friendly are some of the recommendations in Corzine’s plan.  The Administration’s plan, released September 7, covers a wide range of issues, from the high cost of health insurance and workforce education to strengthening government contracting opportunities for small businesses.

Corzine also announced the creation of a new Web site to centralize State-agency information for businesses and a toll free number, 1-86-NJFIRST-9 (1-866-534-7789), that businesses can call for personalized assistance.

The report, prepared by Gary Rose, chief of the Office of Economic Growth, picks up on key issues facing employers.  Many of the problems identified in the report have long been cited by NJBIA and its members, and NJBIA has provided detailed policy initiatives for addressing them.

Corzine said the State would focus on six economic growth priorities. They are:

•           Market New Jersey for economic growth by partnering with the State’s businesses and helping them to grow and prosper;
•           Develop a world-class workforce by assisting the State’s students and job seekers to obtain the skills and education needed in a competitive global economy;
•           Promote sustainable growth with a particular emphasis on the State’s cities and make strategic infrastructure investments to support economic growth;
•           Nurture the development of new technologies;
•           Encourage entrepreneurship and the growth of small, minority-owned, and women-owned businesses; and
•           Enhance the global competitiveness of New Jersey’s businesses.

“First impressions are lasting ones,” Kirschner said.  “New businesses interested in coming to New Jersey or existing businesses that need help are confronted with a sprawling bureaucracy that makes it difficult to find information and get approvals.  The report recognizes that we must do a better job in the way government does business with business.”

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

Employment in the State’s private sector rose by 1,000 jobs in August, but the State’s monthly unemployment rate rose from 5.1 percent to 5.3 percent, the highest level in two and a half years, according to information provided by the NJ Department of Labor (DOL).

The modest one-month gain of 1,000 private-sector jobs failed to offset July’s loss of 2,400 (based on DOL revisions), leaving the State with a gain of just 12,000 private-sector jobs in the first eight months of 2006.

“I'm a licensed funeral director, and as far as I'm concerned, (the
issue) is in the morgue with a toe tag on it.  It's not going to happen.”

Sen. President Richard Codey
Referring to proposals
to change the property-tax
fairness clause of the
State Constitution

Senate President Richard Codey and Assembly Speaker Joseph Roberts have publicly added to a growing chorus of bipartisan support for preservation of the State Constitution’s property-tax fairness clause.  NJBIA vehemently opposes making any change to this clause, which protects business-property owners from property-tax discrimination. 

In a recent meeting with 250 NJBIA members, the two top leaders of the State Legislature said they firmly oppose making any change to the fairness clause.  Also known as the uniformity clause, it guarantees that the same property-tax rates are imposed on all properties, whether commercial or residential.  They said there are better ways to reform the State’s property-tax system.

Within the past seven weeks, three members of the six-member Joint Legislative Committee on Constitutional Reform, which is investigating constitutional changes to New Jersey’s property tax system, have also stated their opposition to changing the clause. 

During hearings on the issue, Senate Republican Leader Leonard Lance said: “Shifting taxes is not the solution to New Jersey’s property tax problem, cost containment is.”

Assemblymen Louis Manzo (D-Hudson) and Richard Merkt (R-Morris), stated their opposition to changing the uniformity clause in earlier hearings.  They said such a change would only shift more of the property-tax burden onto business in a state that already has a poor business climate.

The committee is one of four currently reviewing property-tax-reform proposals.  Based on the committees’ findings, the Legislature is expected to propose and enact a reform package before the end of the year.

Governor Jon Corzine has also expressed serious reservations about doing away with the constitutional guarantee of property-tax fairness.  “I think that one would have to seriously consider its implications,” Corzine told reporters at a news conference. “I believe it is absolutely essential that we grow our economy if we are to have long-run economic success, and we need to be doing those things that enhance it, not limit it.”

Removing or altering the fairness clause would allow municipalities to tax commercial properties at much higher rates. 

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

Forcing New Jersey businesses to pay higher property tax rates than homeowners would be devastating to businesses and the economy, four NJBIA members recently told a legislative committee investigating property tax reform.

They said high taxes—both local property taxes and State taxes—are already driving companies out of the State.  Creating a two-tier property tax system that discriminates against businesses by forcing them to pay a higher rate than homeowners would only worsen the situation.

Testifying September 21 before the Joint Committee on Constitutional Reform were: Robert Kortenhaus, president and CEO of Bilkays Express Co. of Elizabeth; Patrick Deo, a partner in the financial planning firm of Deo, LaManna, Deo & Co. of Denville; Ralph Evangelista CPA, owner of the accounting firm Evangelista & Associates of East Brunswick; and Phil Schepel, vice president with the corporate relocation firm ADP Mintax of East Brunswick.

The Joint Committee on Constitutional Reform is investigating the uniformity clause of the State Constitution.  Changing the clause would allow local governments to impose higher property tax rates on business.

Kortenhaus said he has seen many large customers move out of New Jersey to more affordable states, such as the Carolinas, Illinois, Tennessee and Virginia.  While his NJ property taxes cost 94 cents to $2 per square foot, other states charge between 20 and 50 cents.  “I can tell you emphatically and with personal knowledge that any actions to initiate a two-tier real estate tax system will cause many of our larger companies to leave New Jersey,” he said.

Evangelista said New Jersey businesses have already absorbed a number of business tax increases. He pleaded with the committee not to add a business property tax increase. 

“By increasing taxes like this, New Jersey does not present itself as a business friendly community.  If we are going to chase businesses away, how can we create jobs?”

Schepel said New Jersey risks losing the migration of jobs from New York.  Because the city is more expensive than New Jersey, many businesses have moved large portions of their operations across the river.  This has enabled them to save money on operating costs while keeping their New York addresses.  But according to a recent analysis Schepel undertook for a client, New Jersey’s cost advantage is now minimal.

“New York City is taking significant steps to offer substantial tax incentives to retain its current employer base,” Schepel told the committee.  “If a dual property tax system is enacted in New Jersey, our business cost advantage over New York City will disappear.”

Responding to an NJBIA Membership Alert on the issue, Association members recently sent more than 2,300 messages to their legislators asking them to preserve the fairness clause.

Exclusively for NJBIA Members:

Learn about Proposed Laws with NJBIA Legislative Briefs
NJBIA has made available online a complete list of the Legislative Briefs it has prepared on the most important bills it is following in the current session of the State Legislature.  The Legislative Briefs cover bills concerning health insurance, business taxes, energy costs, environmental regulation, economic development and many other issues of interest to business.

Each of the 61 Legislative Briefs in our current listing provides a description of the bill, its status in the Legislature, an analysis of how it would impact your business, and NJBIA’s position. If you are an NJBIA member, you can access the full list of briefs here.  You can submit an online request for the ones you wish to receive.  To obtain a list of briefs by fax, contact Joanne Gordy at ext. 216.

On Tuesday, October 17, the New Jersey Business & Industry Association presented its Award for Excellence to nine member companies during a dinner program at the Hilton East Brunswick.  The companies were recognized for outstanding achievements in managing their workforces, protecting the environment, creating new jobs and serving their communities.

Every year, NJBIA honors a small group of employers from among its 23,000 members for their outstanding achievements. Any NJBIA member company in good standing is eligible to be nominated for an award.

“It always gives us great pleasure to recognize the outstanding achievements of our member companies.  Each of our winners has a wonderful story that deserves to be told,” said NJBIA President Philip Kirschner.

NJBIA wishes to thank the members of its independent panel of judges, who volunteered their time to review the award nominations and select the finalists.  The panel was comprised of individuals from NJBIA’s policy committees and the Service Corps of Retired Executives (SCORE).  The NJBIA policy committee members who participated in the judging were Wayne DeFeo, Toby Hanna, Ed Hogan, Vicki Isler, John Kinkela and JoAnn Trezza.  NJM Insurance Group Senior Vice President and CFO Tom Meyers and NJBIA Presidents Emeriti, Joe Gonzalez and Bruce Coe, also participated.

NJBIA also thanks Mercadien,  P.C., Certified Public Accountants of Princeton,  for performing the agreed-upon procedures to verify the information supplied by the award-winning finalists.  Mercadien, P.C., CPAs is a Mercadien Group Company, a family of distinct companies that provides accounting and tax, consulting, technology, asset management, outsourcing and investment banking services.

THE 2006 WINNERS
Enterprise Award
Presented to companies that have contributed to the State’s employment growth through the creation of new jobs.

Advanced Health Media, Inc., Union

DSCI, Eatontown

Environmental Quality Award
Presented to companies that have done outstanding work to preserve or enhance the quality of the environment in New Jersey.

Atlantic County Utilities Authority, Pleasantville

Fisk Alloy Wire, Inc., Hawthorne

Outstanding Employer Award
Presented to companies that demonstrate a creative and forward-looking approach to managing their human resources.

Cooper University Hospital, Camden

MDAdvantage Insurance Company of NJ, Lawrenceville

Public Service Award
Presented to companies for finding solutions to pressing social or economic problems in their communities and for committed leadership in serving those communities.

HSBC – North America, Bridgewater

Lockheed Martin, Moorestown

McCarter & English, Newark

Wednesday, Oct. 25, Hot Legal Topics for Employers
This half-day seminar is a must for human resources managers, especially those at small- to medium-sized companies.  NJBIA will bring together some of the State’s foremost HR attorneys to cover all the latest developments in hiring and firing, employee handbooks, wage and hour compliance, immigration issues, and avoiding discrimination and harassment.  Learn how to avoid costly legal landmines.  Network with other HR professionals.  The program, which will be held at the Holiday Inn in Tinton Falls (Exit 105, Garden State Parkway), begins at 8:30 a.m. and ends at 12:30 p.m.  The cost per person is $109 for NJBIA members and $139 for nonmembers.  To
register, call Katie Wittkamp at 609-393-7707, ext. 239, or register online.

Friday, November 3, Selling to the Top: Doing Business with Top NJ Companies and State Government
Find out how you can sell your goods or services to State Government and top New Jersey companies at this half-day seminar.  Get practical tips from purchasing agents.  Government officials will tell you how to become a certified minority- or woman-owned business.  You will also be able to register as a qualified business on the spot.  Purchasing agents from at least five large companies, including sanofi aventis and PSE&G, will be on hand to answer your individual questions.  The event will be held from 8:00 a.m. until 12:30 p.m. at the Sheraton Newark Airport Hotel.  The cost is $109 per person for NJBIA members and $139 for nonmembers.  To register, call Katie Wittkamp at 609-393-7707, ext. 239, or register online.  To become a high-profile sponsor, call Sherry Esteves, ext. 219.

Wednesday, Nov. 15, How to Comply with State Environmental Regulations
Learn how to comply with New Jersey’s strict environmental regulations and how to avoid costly fines and litigation at this half-day NJBIA seminar.  Our experts will answer your questions about air and water permits, solid and hazardous waste, chemicals, land use, and other vital topics.  You will receive a list of key contacts at the NJDEP.  The program will be held at Forsgate Country Club in Monroe Township (Exit 8A, NJ Turnpike) from 8:00 a.m. until 12:45 p.m.  The cost per person is $109 for NJBIA members and $139 for nonmembers.  To register, call Alex Hollywood at 609-393-7707, ext. 262, or register online.  To become a high-profile sponsor, call Sherry Esteves at ext. 219.

Heighten Your Visibility Become an NJBIA Event Sponsor

NJBIA’s first-rate seminars and events offer companies like yours a great opportunity to reach their target audiences and heighten their visibility.  The following sponsorship opportunities are currently available.

November 3
Selling to the Top: Doing Business with Top NJ
Companies and State Government
Co-Sponsor/Exhibitor: $1,500

November 15
How to Comply with State Environmental Regulations
Co-Sponsor/Exhibitor: $500 (NJBIA Member) $750 (Nonmember)

Co-Sponsors of either event receive:
•  An exhibit table to display your company’s promotional materials and network with attendees.
•  Two seminar registrations.
•  Display of your company’ name on event signage
•  Recognition during the program at the event.

December 12
2006 Public Policy Forum

NJ's Growth Challenge:
Can We Be Restored to a Leadership Position?

7:45 a.m. - 8:15 a.m.  Registration/Networking

8:15 a.m. - 11:00 a.m.  Opening Breakfast Program

Presentation of Paul L. Troast Award
Recipients:        Hon. Paul Sarlo, NJ State Senate, and
                              Hon. John Wisniewski, NJ General Assembly

Morning Keynote Speaker
US Senator-Elect, State of New Jersey (Invited)

Presentation of 2007 Business Outlook
Findings of NJBIA’s Annual Survey of 23,000 Employers

NJBIA President Philip Kirschner

The Legislative Leadership
Confronting the Big Issues

A slow-growing State economy, property tax reform, the high cost of government, and skyrocketing healthcare costs are among the biggest challenges facing the Legislature as it heads into 2007.

Legislative Leaders:  Hon. Bernard Kenny, Hon. Leonard Lance,
                        Hon. Joe Roberts, and Hon. Alex DeCroce.

11:00 a.m. - Noon  Concurrent Panel Discussions

Political Outlook 2007
The Corzine Factor
In his first year in office, Governor Jon Corzine leapt from gubernatorial novice to a respected political force.  He survived a contentious State budget process and announced ambitious plans for economic growth and property tax reform.  How is this changing the State’s political landscape?
            Panelists:  Nick Acocella, Hon. Joseph Cryan, David Rebovich, and Tom Wilson.

NJ Economic Outlook
Overcoming Weak Job Growth
New Jersey isn’t producing private-sector jobs like it should be.  In fact, 2006 is shaping up to be one of the weakest years for private-sector employment growth in a quarter century.  What are the underlying causes of weak job growth and what is the outlook?
            Panelists:  Steve Kalafer, Gary Rose, Rae Rosen, and Philip Schepel.

Noon - 2:00 p.m.  Luncheon Program

Presentation of the Leonard C. Johnson Award
Recipient:  Charlene Brown, AT&T

KEYNOTE LUNCHEON SPEAKER  Governor Jon Corzine

REGISTRATION INFORMATION

Fees:
NJBIA members:  $170 per person
Nonmembers:  $230 per person

Contact Stacy Wichner at 609-393-7707, ext. 213.

Become A High Profile
Forum Sponsor!

The following opportunities are available for Forum sponsors.  Contact Sherry Esteves at ext. 219 for details.
________

All $1,500+ sponsors will be recognized during the event with public announcements and signs.  Your company will also be recognized in the February 2006 issue of New Jersey Business Magazine.  In addition, you can have a link to your corporate Web site posted on NJBIA’s Web site.

Opening Breakfast:
Co-Sponsorship @ $2,500
(Also includes one complimentary ticket to the Forum with reserved seating at breakfast)

Morning Panel Discussions:
Co-Sponsorship @ $1,500

Luncheon Program:
Co-Sponsorship @ $2,500
(Also includes one complimentary ticket to the Forum with reserved seating at lunch)

Networking/Coffee Breaks:
Sponsorship @ $500
(Only includes signs at the event)

Sponsor levels:
$2,500 Breakfast Co-Sponsor (Legislative Leaders Panel)
$2,500 Lunch Co-Sponsor (Governor’s Speech)
$1,500 Concurrent Panel Co-Sponsor (Political or Economic Outlook)
$500 Networking/Coffee Break Co-Sponsor

For more information, visit njbia.org.  You can also contact Sherry Esteves at 609-393-7707, ext. 219.