NJPRO Study Says Major Hurdles for NJ Businesses Are Affordability, Investment Read
NJBIA Employee Benefits Report Read
Twelve Projects Win 2008 New Good Neighbor Awards Read
Highly Successful Basic Skills Training Program Begins Second Year Read
Getting the Full Benefit: Save on Credit-Card Processing Read
Ask the Experts: Registering a Small Business Read

Sara Bluhm, Executive Director of NJPRO Read

High taxes, overregulation and spiraling healthcare costs are among the greatest economic concerns of New Jersey businesses, according to a new study on the State’s business climate.

The report, "Economic Policies and Solutions: Making New Jersey a Better Place for Doing Business," was conducted by NJBIA’s think-tank affiliate, the NJ Policy Research Organization (NJPRO).  The findings are based on a survey of nearly 300 business leaders, as well as out-of-state business executives.

Of those surveyed, 42 percent believe New Jersey’s business climate will deteriorate over the next five years, while only 23 percent said the State is doing a good job of making New Jersey an affordable place to live.

"Affordability and investment emerged as themes throughout the survey," said Sara Bluhm, executive director of NJPRO.  "Affordability was characterized by the costs facing all businesses - taxes, energy, healthcare and regulation.  These factors can easily make or break a business and determine whether it will start or expand its operations in New Jersey or depart the State.

"Investment," Bluhm continued, "was expressed by such concerns as better preparation for skilled workers in manufacturing and other sectors.  It also applies to State funding of university research and development and to partnerships between academia and private industry."

The second part of the report provided 37 detailed short- and long-term recommendations to strengthen New Jersey’s economy.  Chief among these were five high-priority "prosperity policies" NJPRO believes will have the greatest impact:

•      Allowing businesses to reduce their State-tax burden by carrying their losses forward for 20 years, the same number of years allowed for federal taxes and by many states, and to base their tax liability on sales in New Jersey, not on whether they own property or how many employees they have in the State, which penalizes companies for employing people and owning property.

•      Providing a system where permits and licenses are provided in a timely fashion and continuing to upgrade and improve New Jersey’s online business portal, www.state.nj.us/njbusiness.

•      Enacting legal liability reform measures to create a more balanced liability environment in the State.

•      Encouraging innovation in the State’s technology-driven economy through increased research and development funding at State colleges and universities and cultivating academic research partnerships with private industry.

•      Enacting reforms in the State’s health benefit plan and Medicaid programs, creating efficiencies, increased healthcare quality and cost savings that can be emulated by private insurance companies.

"In this report there is good and bad news," NJBIA President Philip Kirschner said.  "Our ultimate purpose, however, is not to just note complaints by the business community, but rather to offer constructive solutions that can be put into practice in New Jersey and strengthen our business climate."

For more information, or to download the complete study, visit njprofoundation.org/report.

Legislation that would protect property owners from overly aggressive eminent domain proceedings was recently released by the Senate Community and Urban Affairs Committee.

The bill, S-559 (Rice, Sweeney), would allow municipalities to continue to use eminent domain for redevelopment projects, but with new protections for the property rights of businesses and homeowners.

NJBIA supports the measure.  Eminent domain laws allow municipal governments to take ownership of private properties after compensating owners and then use them for public purposes, such as schools, roads and bridges.  The focus recently has been on the government’s ability to condemn private property that is "blighted," then sell it to another private entity for economic development purposes.  In New Jersey, a scramble for more property tax ratables has put pressure on local governments to use eminent domain.

S-559 would protect businesses in condemnation proceedings by providing greater notification that such proceedings have begun, including a requirement to notify tenants as well as property owners.  The bill would also provide greater relocation assistance and compensation, and provide compensation for the value of the business if foot traffic or its location is critical to its revenue stream.

Finally, the measure would provide businesses with the right of first refusal, which would give business owners in the condemned property area first choice of space in the new development.  For more information, contact at ext. 236.

Governor Corzine signed legislation to overturn onerous new Council on Affordable Housing (COAH) regulations on July 17.

New COAH regulations would allow municipalities to charge an 8 percent to 10 percent tax on nonresidential development, adding substantial new costs to businesses that want to build or expand their facilities.  A-500 (Roberts, Watson Coleman) would instead establish a Statewide fee of 2.5 percent on nonresidential development and prohibit municipalities from assessing other fees or requiring affordable housing construction by nonresidential developers.  NJBIA supported the legislation. 

For more information, contact at ext. 247.

Legislators recently gave final legislative approval to a bill, supported by NJBIA, that would protect the permits and approvals of projects delayed by the economic downturn.

Known as the Permit Extension Act, A-2867 (Greenwald, Malone) and S-1919 (Sarlo, Van Drew), would extend until December 31, 2010, the expiration date of all State and local government approvals issued since January 1, 2007.  The permitting process in New Jersey is extremely time-consuming and expensive, often taking several years and hundreds of thousands of dollars to complete.  It makes no sense to force developers and businesses to navigate the entire time-consuming permitting process again because of an arbitrary deadline.

For more information, contact at ext. 247.

Find out what benefits hundreds of New Jersey employers are offering their employees, from healthcare coverage and paid vacations to disability. Even if other employers don’t compete with you directly, they do compete for your good employees.  This is the essential guide for anyone who sets HR policies for your company!

The cost of the book for NJBIA members is $105 (plus tax).  Nonmembers must pay $225.  To place your order online, visit www.njbia.org/publications.

Corzine Signs Budget That Cuts Spending by an Unprecedented $600 Million
Governor Jon Corzine has signed a Fiscal Year 2009 State Budget that cuts spending from the FY 2008 level and pays down the State debt.  He also issued an executive order prohibiting one-shot revenue gimmicks from being used in next year’s budget.  These gimmicks have driven up spending in the past and contributed to a large structural deficit in the budget.

On June 30, the Governor signed a budget that appropriates $32.9 billion for the 2009 fiscal year, an unprecedented $600 million less than the previous budget.  The budget does not raise taxes or fees, but it does delay the elimination of the Transitional Energy Facilities Assessment, a "temporary" tax on energy that was supposed to be phased out starting in January 2009.

In addition, the Governor signed legislation that pays off $650 million in State debt, saving taxpayers $135 million in interest payments over the next five years. 

"In cutting spending by an unprecedented $600 million, the State has taken a first step towards fiscal sanity," said NJBIA President Philip Kirschner.  "If the State can continue to live within its means, it will be doing an enormous service to taxpayers."

The Governor also signed an executive order to ensure that next year’s budget is supported by recurring revenues, one of the budget reforms he proposed at the beginning of the year.  Past budgets had relied on one-shot revenue sources.  This automatically creates a deficit in the following year’s spending plan.  Corzine’s executive order requires the Office of Management and Budget to estimate recurring revenues for the fiscal year, and requires any non-recurring revenues to be dedicated solely to debt reduction.  While NJBIA differed on some of the priorities, the overall direction of the budget is a major step forward for fiscal responsibility.

For more information, contact at ext. 247.

A package of bills that would make some modifications to New Jersey’s workers’ compensation system received final legislative approval on June 23.

Before passage, however, legislators adopted several NJBIA-backed amendments that would continue to protect the fair benefits and relatively low costs that are hallmarks of New Jersey’s workers’ compensation system.  NJBIA believes New Jersey’s current workers’ compensation system works well and should be protected from any fundamental changes.  Bills receiving final passage were:

S-1915 (Sarlo, Cunningham)/A-3059 (Cohen, Egan), which would require employers to include proof of workers’ compensation insurance coverage as part of their annual reports to the State.

S-1916 (Sarlo)/A-2968 (Egan, Cohen), which would provide an accelerated procedure to obtain treatment when a physician indicates that delay would cause "irreparable harm or damage" to a worker in need of urgent care that is not being authorized by the employer or insurance carrier.

S-1917 (Sarlo, S. Kean)/A-2969 (Cohen, Egan), which would clarify the authority of the Compensation Rating and Inspection Bureau (CRIB) and increase the membership by adding one member each from a Statewide business organization, a Statewide labor organization, and the public at large.

S-1918 (Sarlo, Madden)/A-2970 (Egan, Cohen), which would authorize the insurance fraud prosecutor to prosecute employers who fail to provide required workers’ compensation insurance.

The measures await consideration by Governor Corzine.  For more information, contact at ext. 209.

 "We don’t need to reinvent the wheel.  Let’s see what’s working in other states...and what we can do to change things here in New Jersey."
- Sara Bluhm, Executive Director of NJPRO, describing the recommendations of its new report on New Jersey’s business climate.

Twelve construction projects involving everything from a renovated 18th century tavern to exciting office building projects were honored June 6 at the 48th Annual New Good Neighbor Awards Luncheon in Iselin.  Hosted by NJBIA and New Jersey Business magazine, the New Good Neighbor Awards Luncheon brought together 200 builders, architects, engineers and others in the development community to honor those responsible for some of the State’s most impressive new commercial construction and renovation.

New Good Neighbor Awards 2008 Winners
AAA Mid-Atlantic Inc.
Hamilton Township (Mercer Co.)

Berkeley College
Newark

Fidelco, LLC – Washington Park
Newark

Grand Cascades Lodge
Hamburg

Metropolitan Plant & Flower Exchange
Fort Lee

Paterson Market Growers, Inc.
Paterson

Pepsi Bottling Group
Kearny

The Roebling Mansion/New Jersey State League of Municipalities Headquarters
Trenton

sanofi-aventis
Bridgewater

Sheraton Meadowlands Hotel & Conference Center
East Rutherford

—Special Awards—
Raritan Valley Community College West Building
North Branch

Visiting Nurse Association of Somerset Hills
Bernards Township

NJBIA Thanks Its 2008 New Good Neighbor Luncheon Sponsors:
Atlantic City Electric
Building Contractors Association of NJ
Forest Electric
Ingrassia Construction Co., Inc.
Jersey Central Power & Light Co., A FirstEnergy Company
Mack-Cali Realty Corp.
New Jersey Business Magazine
NJ Economic Development Authority
NJM Insurance Group/NJM Bank FSB
Olson Construction Co.
sanofi-aventis
The Port Authority of NY & NJ

With a grant of $1.33 million, the State has renewed funding for an innovative Basic Skills Workforce Training Program, which in its first year trained over 3,500 people employed by 226 New Jersey businesses. 

The program is a partnership between the New Jersey Business & Industry Association (NJBIA), the State’s community colleges, which provide the training, and the NJ Department of Labor and Workforce Development, which supplies the funding.  It extends the State’s training resources to hundreds of small businesses that in the past have been unable to participate in other State training-grant programs.

The second year of the program got underway on June 9.  Over the next 12 months, it will be open to private-sector employers seeking to get training for their employees in basic computer operations (Microsoft), mathematics and measurement, verbal and written communications, and English as a second language.

The Basic Skills Training Program is available free of charge to participating companies and does not require that they complete any complicated paperwork or make financial disclosures.  They can enter one employee into the program or a large group of employees.  However, employers must pay their employees at their regular hourly rate while in training.

NJBIA President Philip Kirschner said the State’s decision to renew funding for the program means that more small companies will be able to get needed training for their employees over the next 12 months.  "We are very happy that the funding for this groundbreaking project has been renewed," Kirschner said.  "Our member companies had many positive things to say about this program in its first year.  It sharpened their employees’ work-related skills and, in some cases, led to job promotions."

More than 3,500 employees from 226 companies participated in 160 classes in the program’s first year.  The training was provided by the State’s 19 community colleges at 63 locations throughout the State.  The NJ Community College Consortium coordinated the training.  Many of the classes were pooled so that small numbers of employees from several different companies could participate.

Dr. Peter Mora, president of Atlantic Cape Community College and outgoing chairman of the NJ Community College Consortium for Workforce and Economic Development, had high praise for the program.  Mora said State Labor Commissioner David Socolow has "broken new ground in finding a way to effectively use public resources to provide workforce training to improve the skills of New Jersey workers."

Simon Kaplan, CEO of Crest Furniture in Dayton, NJ, said one of his warehouse employees, whose command of the English language was weak, was promoted to the company’s computer department after receiving training in English as a second language.  "He had previous computer software experience but could not communicate (that experience).  Now with his improved language skills, he got the promotion he deserved," Kaplan said.

Because of the new program’s success, the partners are planning to expand the program in 2008-2009.  New classes will include: various levels of Microsoft Office personal computer skills training; specific communications courses in verbal, written and customer service skills; mathematics and measurements skills training; and various levels of English as a second language training.

To inquire about training, please contact Robert Rosa of the New Jersey Community College Consortium at 609-393-9009 or rrosa@njworkforce.org.

To Learn More
• Call Bob Rosa at 609-393-9009
• Visit njbia.org/resources/train

NJBIA-backed legislation that would allocate more funding for business energy efficiency projects passed the Assembly on June 23.

A-2705 (Chivukula) would provide grants for energy efficiency audits and improvements and on-site electricity generation.  The bill would allocate $60 million for on-site generation from the existing Retail Margin Fund, with the remaining balance, approximately $30 million, being allocated for energy audits and efficiency projects.  The Retail Adder Fund is financed through an assessment on large, hourly priced electricity bills.

For more information, contact at ext. 204.

Legislation that would provide a preference in State-funded government contracts for goods manufactured in New Jersey passed the Assembly on June 23.

A-1479 (Burzichelli, Greenwald) also would authorize local governments to provide the same preference, even when they are not using State funds.  NJBIA strongly supports the measure, which is part of its Manufacturing Counts! Agenda for Manufacturing Renewal in New Jersey.

For more information, contact at ext. 247.

Want to lower your credit card processing costs?  Through NJBIA’s partnership with Cornerstone Association Merchant Services (CAMS), you can lower your processing costs and integrate into one system the latest non-cash transaction programs such as PIN-based debit and check guarantee programs.

You can also receive free credit-card processing equipment, as well as free gift and program-reward cards.  Give a CAMS representative a call.  They will need just a few minutes on the phone with you to understand your situation.  Be sure to have copies of your most recent credit card statements to review.

For more information or to get a free customized quote, call 877-445-8195.  Visit “Money-Saving Programs” at www.njbia.org/resources for more information.

I have fewer than 100 employees.  How do I register as a Small Business Enterprise (SBE) and access State and local government contracting opportunities?

Answer.  New Jersey State and local governments procure billions of dollars of goods and services each year.  A review of government contracting opportunities should be part of every business plan.  Businesses with 1-100 full-time employees can qualify for Small Business Enterprise (SBE) designation, enabling them to participate in the Small Business Set-Aside program and the 25 percent of all State contract dollars specifically targeted for SBEs.  While the State does not provide contract set-asides specifically for minority or women-owned businesses (M/WBE), it will allow you to also register as a M/WBE for municipal and county government and corporate contracts.

How do I review government bidding opportunities?

Answer.  The State's online database allows businesses to obtain bid information from more than 100 entities including State agencies, authorities, commissions, colleges and universities.  You can search by category of product or service, by entity name and even by keyword.

Becoming a SBE Bidder, Step 1:
Make certain you are “registered” to do business in New Jersey and can access your Business Registration Certificate (SBE).  Any business you do with New Jersey State and local governments, including responding to bid requests and applying for SBE designation, will require you to submit a hard copy of your Business Registration Certificate.  If you are already registered, you can obtain a copy of your certificate.  If you are not registered, you can apply online.

Becoming a SBE Bidder, Step 2:
Make certain that you qualify as a “New Jersey” business.  Simply registering to do business in New Jersey (See Step 1) does not qualify a small business as a “New Jersey” business for SBE purposes.  Not only must a business be registered and have its principal place of business in New Jersey, but it also must meet one of the following two tests:  1) at least 51 percent of its employees work in New Jersey as demonstrated by paid New Jersey payroll taxes or 2) at least 51 percent of business income must be earned in New Jersey.

SBE Eligibility Standard and Application: 
Once you qualify as a “New Jersey” business, you can start the SBE application process to see if you meet the “small business” designation.  Here, the first test is the employee requirement: you must have 100 or fewer full-time employees.  Next is the revenue test.  For goods and services contracts, a small business’ annual gross revenues must not exceed $12 million.  For construction contracts, the revenue standard is based on the Code of Federal Regulations, construction revenue standards found at 13 CFR 121.201.  More information.

Minority or Women-Owned Business Enterprise Registration:
Any business whose management and daily business operations are controlled by one or more minorities or women who own it, and which is at least 51 percent owned by one or more minorities or women, is eligible to participate in this program.  Access the application.

Bid Opportunity Notification:
Now that you are registered as a SBE, enrolling in the eRFP notification program will provide you with e-mail notification of new and updated procurement notices issued by the State.  To enroll in eRFP, you must first establish a New Jersey business portal account.

Once registered and logged in, you will see three tabs in the upper left-hand corner: "myNJHome," "myNJ Business," "myNewJersey." Click on the "myNJBusiness" tab. Look for the "Bid Opportunities" section and click on the "View / Set Business Opportunities Notification Preferences" link.  Next, select the commodity code(s) you would like to receive notifications on.

For more information, contact at ext. 247.

Friday, Oct. 17: 
Environmental Regulation and Legislation
Meet NJ Department of Environmental Protection Commissioner Lisa Jackson and the respective chairmen of the Senate and Assembly Environment Committees, Bob Smith and John McKeon.

Both briefings will be held at Forsgate Country Club, Monroe Township (NJ Turnpike, Exit 8A), beginning with registration and a buffet breakfast at 7:45 a.m. and ending at 10:00 a.m.  Time will be set aside to answer your questions.  The cost to attend is $69 per person for NJBIA members and $105 per person for nonmembers.  Register online now, or contact at 609-393-7707, ext. 213, for more information.  To become a high-visibility sponsor, contact ext. 219.

Wednesday, Nov. 5
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 this awards dinner.  The Awards for Excellence program recognizes companies of every size and in every industry.  The program, to be held at the Pines Manor in Edison (Route 27), will begin at 6:00 p.m.  It will include a reception, dinner and the awards presentations.  The cost is $149 per person.  Tables of ten are available.  Register online now, or contact at 609-393-7707, ext. 213.  To become a sponsor, contact ext. 219.

PAID FAMILY LEAVE SEMINARS

Friday, October 24
Sheraton, Eatontown

Wednesday, October 29
Forsgate Country Club, Monroe Township

New Jersey has become only the second State to pass a broad paid family leave mandate affecting all employers.  Starting next year, your employees will be able to take six weeks of paid family leave.  On October 24 and October 29, top legal experts will present valuable information about the new law including who is eligible to take leave and your obligations as an employer.  You only need to attend one of these seminars (identical information will be presented).  Each will run from 8:30 a.m. until 1:00 p.m.  For more information, contact at 609-393-7707, ext. 239.