Michael Karlovich Receives NJBIA’s Johnson Award Read
Senator Shirley Turner Receives NJBIA’s Paul L. Troast Award at Public Policy Forum Read
NJBIA Thanks Its Public Policy Forum Sponsors Read
Governor, Legislators Meet Manufacturers at NJBIA’s Made in New Jersey Day Read

Governor Jon Corzine assured the 250 businesspeople attending NJBIA’s December 9 Public Policy Forum that he will continue to push for economic relief at the State and federal level to help businesses weather a deepening recession and credit squeeze.  To underscore his point, Corzine concluded his appearance by signing a bill providing businesses with $120 million in incentives for job creation (grants of $3,000 for every new employee hired) and business investment (grants equal to 7 percent of the cost of new equipment and capital improvements). 

"What we want to do is have New Jersey ready to go when (the economic) environment changes, and it surely will," Corzine said.  "When the confidence turns, we will be in a position to capture a bigger percentage of job growth."

Corzine’s speech and bill signing capped a full day of events dedicated to the theme of the Forum - Making New Jersey a Better Place for Business.  It featured a morning keynote address by US Senator Robert Menendez on the efforts in Washington to stimulate the economy.  That was followed by a legislative leaders’ panel discussion with the State’s top legislative leaders - Senate President Richard Codey, Senate Republican Leader Tom Kean, Assembly Speaker Joseph Roberts and Assembly Republican Leader Alex DeCroce.  The panel moderator was Comcast Newsmakers’ Joe Bisicchia.

A political outlook panel discussing the upcoming race for Governor was moderated by New Jersey Network Senior Political Correspondent Michael Aron and featured a taping of his talk show, On The Record, with State Democratic Party Chair Joe Cryan, Republican State Party Chair Tom Wilson, Republican strategist Roger Bodman and Democratic strategist Harold Hodes.  At the same time, a panel discussion on New Jersey’s economic outlook featured Lisa Hirsh, president and CEO, Accurate Box Company, Inc.; Doug Kuiken, president, Kuiken Brothers Co.; James Blake, president, NJ Society of CPAs; and Rae Rosen, senior economist, Federal Reserve Bank of New York, who works for incoming US Treasury Secretary Timothy Geithner.  NJBIA First Vice President Art Maurice moderated the discussion.

NJBIA also presented the Paul L. Troast Award to State Senator Shirley Turner and the Leonard C. Johnson Award to Michael Karlovich of ConocoPhillips Bayway Refinery.

In his speech, Corzine pointed out that he and the Legislature had made progress in recent weeks in making New Jersey’s business-tax laws more competitive.  The Governor last month signed legislation expanding to 20 years from seven years the period over which companies can deduct net operating losses.  The Governor recently signed legislation to eliminate the State’s costly "throw-out" and "regular-place-of-business" tax rules, providing businesses with $150 million in tax relief. 

The Governor and the Legislature are also working on legislation to speed the cleanup of environmentally contaminated brownfields sites "that will unclog some of the backlog we have going on within the DEP," Corzine said.  He also pledged to reform New Jersey’s regulatory system and speed up environmental permit approvals by implementing the permit-efficiency recommendations in the recently released Daggett report. 

In the morning keynote address, Menendez said he expected Congress to move quickly on an economic stimulus package so that President-elect Obama will have it early in his administration.

He predicted that the stimulus bill would contain a significant infrastructure investment in projects that are ready to go - projects that have their permit approvals and designs ready and simply need the resources to make them happen.  He indicated that New Jersey was well-poised to take advantage of it because it had several transportation projects that met the criteria.

During the legislative leaders panel, Senate President Codey said one of the priorities for the Legislature would be to avoid an automatic payroll tax hike, triggered by a drop in the Unemployment Insurance fund balance.

"We will do everything in the Legislature... to make sure that does not happen.  That’s the last thing we want to have happen."

Assembly Republican Leader Alex DeCroce said the State should consider delaying the implementation of paid family leave, given the current economic climate.

"We really should give (a delay) consideration until we see where we are going in terms of how the stimulus package may work both on a federal level and here in New Jersey," DeCroce said.

Dear Business Voice Reader,
Throughout 2008, these pages of the Business Voice have served as a kind of play-by-play of our battles with State government.  And while our quest for a more business-friendly State will continue in 2009, I wanted to take this opportunity to look back and share with you some of our accomplishments in 2008.

Our team of government affairs professionals constantly monitor legislative activity on more than 3,000 bills that will impact your business, and meet regularly with all 120 legislators to explain how the business community’s agenda will benefit the State.  We have been able to secure meaningful probusiness initiatives, but just as often we are able to stop antibusiness bills or have them amended to ease their impact on your companies.

These pages contain a summary of some of the highlights from the 2008 legislative session.  For a more detailed list of our work, please visit www.njbia.org/issues.asp. 

Sincerely,
Melanie Willoughby, Senior Vice President for Government Affairs

A legislative session that began with making New Jersey only the second state in the nation to impose a paid family leave mandate on business ended with probusiness tax reform and economic stimulus legislation.

In between, legislators tackled healthcare reform, environmental regulations, taxes and an unemployment insurance fund in danger of running out of money.  Here’s a look back at a 2008 legislative session that was anything but typical.

ECONOMIC STIMULUS
Corzine and legislators responded quickly to the sharp downturn in the economy, enacting a comprehensive package of tax reform and credit availability legislation.   Since the economic crisis hit in the fall, the Governor and Legislature:

• expanded net-operating-loss deductions to 20 years from seven;
• eliminated the throw-out rule and regular-place-of-business requirements from the Corporation Business Tax;
• provided $50 million in loan and loan-guarantees for small businesses;
• enacted a grant program providing $3,000 to businesses for each net new job they create and/or 7 percent of the cost of capital improvements or equipment purchases.

The tax reform bills will save businesses $300 million a year, while the loan and grant programs will provide businesses with an estimated $420 million in financing.

PAID FAMILY LEAVE
Supporters of paid family leave legislation had this bill at the top of their agenda at the start of 2008.  After raising enough objections to the bill to keep it from passing in 2007, NJBIA pulled out all the stops to keep it from passing in 2008.  NJBIA members delivered more than 60,000 e-mail messages to the Governor and the Legislature, and many companies came to Trenton to testify personally against the bill.

The bill became law, but not before the business community had an impact.  Supporters were forced to scale back the bill’s scope from 12 weeks to six, to allow employers to require employees to use two weeks of existing time off first (bringing it down to four weeks), and to make other concessions to soften paid family leave’s impact.

Even then, the bill passed with great difficulty, clearing the Senate by only one vote.  
     
UNEMPLOYMENT INSURANCE FUND
Years of divesting tax revenues from the Unemployment Insurance (UI) fund to balance the  budget caught up with the State in 2008.  The UI fund balance dipped to a level that could have triggered a $350 million automatic payroll tax increase on employers.

Governor Jon Corzine, the first governor in recent memory not to divert UI taxes, responded with an infusion of cash from the State’s general fund, thereby avoiding the tax increase.  The Legislature subsequently approved $260 million in funding by passing S-1698 (Buono)/A-2801 (Greenwald, Milam).

In addition to preventing the tax increase, the Senate has passed a constitutional amendment, SCR-60 (Sweeney, T. Kean), outlawing the practice of diverting UI taxes.

NJBIA had warned the State for years about the impact such diversions would eventually have.  Between 1993 and 2006, $4.7 billion in UI taxes were diverted. 

ENVIRONMENTAL REGULATION
In 2007, the NJ Department of Environmental Protection (DEP) proposed an unprecedented 2,000 pages of new or revised land use regulations.  In 2008, legislators took the first steps towards exercising their regulatory oversight role.

As the economic slowdown took hold and development ground to a halt, the Legislature passed and Corzine signed the Permit Extension Act, A-2867 (Greenwald, Malone).  The measure extends to July 1, 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.  With the financial crisis tightening credit  and delaying projects, it makes no sense to force companies to navigate the entire process again.

Also, legislators have taken the rare step of challenging a DEP regulation directly—specifically, DEP’s expanded public access rules.  The original purpose of the regulation was to ensure people can use the State’s beaches.  But DEP went further,  requiring any property owner along any tidal waterway to provide 24-hour public access or pay to have that access provided elsewhere.  Providing public access at most industrial facilities is clearly  dangerous, making the regulations, in effect, a tax on businesses.

Legislators passed S-1553 (Ciesla, Van Drew)/A-2601 (Wolfe, Holzapfel), exempting marina facilities from the regulation.  The Assembly has also passed a broader bill, S-1921 (Ciesla, Van Drew)/A-2954 (Milam, Albano), exempting all industrial, port, and energy facilities.

HEALTHCARE REFORM
In the never-ending battle against legislatively imposed healthcare mandates, NJBIA scored a victory.

A bill requiring small-business health plans to provide unlimited coverage for behavioral disorders and substance abuse would have dramatically increased premiums for tens of thousands of small businesses.  But the Assembly Appropriations Committee adopted amendments to A-2077 (Gordon, Vainieri-Huttle) to provide the checks and balances used to control costs in treating other diseases.

The bill now allows for independent medical management to ensure that the treatment is necessary and effective, and applies the same coverage limits and financial requirements (co-payments, deductibles, etc.) as apply to plans’ medical and surgical benefits.

New Jersey legislators also passed a healthcare reform bill that will not increase employers’ costs.  Lawmakers did not impose an employer mandate to provide healthcare insurance (S-1557, Vitale, Greenwald), opting instead for an individual mandate that parents take responsibility for obtaining health insurance for their children.

In fact, the new measure, which has been signed into law, includes several market reforms backed by NJBIA.  In particular, sole proprietors will have more access to affordable coverage.

BUDGET
Corzine and the Legislature enacted one of the few State budgets that actually spends less than the year before.  The fiscal year 2009 State Budget appropriated $32.9 billion in State funds for fiscal year 2009, about $600 million less than the previous budget.

NJBIA had been warning of the consequences of runaway spending and borrowing for years.  Legislators also approved a constitutional amendment to require voter approval of all State debt.
 
ENERGY
As the State government tries to figure out how it is going to meet all of the greenhouse gas emissions targets it set in 2007, NJBIA says don’t forget about business.  When it comes to projects like renewable energy and energy conservation, businesses have delivered results.

That point helped to move legislation providing $105 million in business-related energy projects.

S-1932 (Ruiz, Gordon)/A-2507 (Chivukula), which was released December 11 from the Senate Budget and Appropriations Committee, would fund grants from the existing "retail adder," a tax on large, hourly priced electric bills.

The bill would allocate $60 million for the development of on-site energy generation and $45 million for energy efficiency projects at businesses.

Michael Karlovich, Manager of Strategic Communication with the ConocoPhillips Bayway Refinery, has been awarded NJBIA’s 2008  Leonard C. Johnson Award for his work on behalf of the Association and its affiliate, the Employer Legislative Committees (ELCs).

NJBIA Senior Vice President Melanie Willoughby presented the award during the Association’s 2008 Public Policy Forum, which was held at the Woodbridge Hotel and Conference Center in Iselin.  The award goes to individuals who have made a long-term commitment to the work of the New Jersey Business & Industry Association.

"It is my honor to present Michael Karlovich with the Leonard C. Johnson Award," Willoughby said.  "Not only is Michael a long-time member and past chairman of his local ELC, he has also served two terms as the ELC State chairman."

The Leonard C. Johnson Award is named after Leonard Johnson, president of NJBIA from 1963 through 1977.  He was a highly regarded industry leader and served as an advisor to four New Jersey governors.

NJBIA has presented State Senator Shirley Turner with its 2008 Paul L. Troast Award for her outstanding work on issues of importance to the business community.  The Troast Award is presented annually at the Association’s Public Policy Forum to a public servant who has made an outstanding contribution to the State of New Jersey and its business community.

The Award was presented by Max Crane, managing partner of the law firm of Sills, Cummis and Gross, and Senate President Richard Codey, during the Association’s 2008 Public Policy Forum.

"Senator Turner has been a tremendous watchdog for the business community," Crane said.  "She fought to protect the State’s Unemployment Insurance and Temporary Disability Insurance funds and steadfastly opposed attempts to divert money away from those funds to balance the State budget."

As a member of the Budget and Appropriations Committee, Turner not only was an outspoken opponent of taking money from the State’s Unemployment Insurance and Temporary Disability Insurance funds, she was also a strong voice against the State’s Paid Family Leave Act and the new payroll tax on employees.  She has fought against costly health insurance mandates.

As a member of the Senate Education Committee, Turner has fought to control costs and improve education quality by bringing business concepts into the classroom and criticizing wasteful spending.

Paul Troast was a founder of the highly successful Troast Construction Company and served as chairman of the board of NJBIA and its affiliate, the New Jersey Manufacturers Insurance Co., from 1963 until his death in 1972.  He made so many contributions to New Jersey and its business community that Governor Richard Hughes called him "Mr. New Jersey."

Premier
NJM Insurance Group
The Port Authority of New York & New Jersey

Gold
Sills Cummis & Gross, PC
Wal-Mart

Breakfast
United Water
Verizon

Lunch
AT&T
Atlantic City Electric
BP
Exelon
Horizon Blue Cross Blue Shield of New Jersey
Jersey Central Power & Light Co., A FirstEnergy Co.
Johnson & Johnson
Novartis Pharmaceuticals Corporation
sanofi-aventis
Tonio Burgos & Associates
Voyant Strategies Inc.

Coffee Breaks
Delta Dental of New Jersey
NJ Economic Development Authority
Schering-Plough Corporation
Wakefern/ShopRite
Valero Paulsboro Refinery

Political Outlook Panel
 AT&T
Comcast
ConocoPhillips Bayway Refinery
New Jersey Natural Gas
South Jersey Industries

Economic Outlook Panel
Jersey Central Power & Light Co., A FirstEnergy Co.
 New Jersey American Water
New Jersey Society of CPAs
New Jersey State Library - "NJ Knowledge Initiative"

NJBIA manufacturers lined the halls of the State House on December 15, showing Governor Jon Corzine, Senate President Richard Codey, Assembly Speaker Joseph Roberts, legislators and the media what they make, how they make it, and what New Jersey should do to help manufacturing succeed.

It was all part of NJBIA’s Made in New Jersey Day, designed to highlight the products and innovations of New Jersey manufacturers, according to NJBIA President Philip Kirschner.

"Our manufacturers are amazing," Kirschner said.  "Year in and year out they stand up to fierce global competition while operating in one of the highest cost states in the nation.  They provide quality jobs and good benefits.  Manufacturing in New Jersey has a great story to tell and Made in New Jersey Day is our chance to tell it."

The exhibits ran the gamut from baseball bats used by Major League baseball players and integrated communications systems used by the US Navy to bus shelters and innovative gardening tools. 

NJBIA’s Made in New Jersey Day Exhibitors
Akadema Inc. - Hawthorne
Artisans of the Valley - Pennington
Blonder Tongue Laboratories, Inc. - Old Bridge
Concord Products - Belmawr
ConocoPhillips Bayway Refinery - Linden
Creative Film Corp. - Lakewood
Eastern Tea Company, Inc. - Monroe Twp.
EPV Solar, Inc. - Robbinsville
Falstrom Company - Passaic
Gerdau Ameristeel - Sayreville & Perth Amboy
Handi-Hut Inc. / Dome’l Inc. - Clifton
Heat-Timer Corporation - Fairfield
L-3 Communication Systems - East - Camden
TDK-Lambda Americas - High Power Division. - Neptune
Lee Linear - Piscataway
New Jersey Tooling and Manufacturing Association - Fairfield
Plast-O-Matic Valves, Inc. - Cedar Grove
Royal Aluminum Co., Inc. - Newark
Squire Corrugated Container Corporation - South Plainfield
Toth Technology - Pennsauken
W.W. Manufacturing Company, Inc. - Bridgeton
Weiss-Aug - East Hanover
ZEB Staples - Hillside
ZONEFIRST - Elmwood Park

Sample Bag Contributors
Eastern Tea Company, Inc.    
General Pencil
JRM Industries, Inc.
L’Oreal USA
LPS Industries, LLC
Mars Snackfood US
Ocean Spray Cranberries, Inc.
Schering-Plough Corporation
Sea Breeze Fruit Flavors, Inc.
Squire Corrugated Container Corporation
Trenton Printing

NJBIA Thanks Our Made in New Jersey Day Sponsors

Premier
NJM Insurance Group
The Port Authority of New York & New Jersey

Event Sponsors
ConocoPhillips Bayway Refinery
Hermitage Press
Lee Linear
Meridian One Corp.
New Jersey Economic Development Authority
New Jersey Manufacturing Extension Program
Squire Corrugated Container Corporation
TDK-Lambda Americas, High Power Division
Trolex Corp./ZONEFIRST

Friday, February 20
Building the Schools:  How to Get NJ School Construction Contracts
Governor Corzine recently signed legislation providing $3.9 billion for new school construction.  At this seminar, you will learn how the program will operate and how to capture school construction work.  Over two dozen school construction projects will be going to bid between March and September 2009!  Also, you can meet Kris Kolluri, the new Chief Executive Officer of the New Jersey Schools Development Authority.

The seminar, to be held at the Pines Manor in Edison (Route 27), will begin with a continental breakfast at 8:00 a.m. and end at 12:00 p.m.  The cost to attend is $129 per person for NJBIA members and $169 for nonmembers.  Register online now or, for more information, call at 609-393-7707, ext. 213.  To become a sponsor, call at ext. 219.

Friday, February 27
Meet the Governor’s New Top Advisors
Meet Governor Jon Corzine’s new Chief of Staff, Ed McBride, Jr.; new Chief Counsel, William Castner, Jr.; and his new Policy Counsel, Michellene Davis at NJBIA’s Meet the Decision Makers briefing.  Learn what the Governor plans to do in the coming year to close the fiscal deficit and stimulate the economy!  This great networking event will begin with registration and a buffet breakfast at 7:45 a.m. and end at 10:00 a.m.  It will be held at Forsgate Country Club in Monroe Township (Exit 8A, NJ Turnpike).  The cost to attend is $75 per person for NJBIA members and $125 for nonmembers.  Register online now or, for more information, contact at 609-393-7707, ext. 213. To become a high-profile sponsor, contact , ext. 219.

Friday, March 6
Navigating NJ’s Paid Family Leave Law
Starting in July, employees at all NJ companies will be able to take six weeks of paid leave each year for the birth or adoption of a child or to deal with a family member’s "serious health condition."  Hear directly from top legal experts who will provide you with details on how the law will impact your workplace and how it will work with existing State and federal unpaid leave laws.  Learn how to protect yourself and your business!  This seminar will be held at Forsgate Country Club in Monroe Township (Exit 8A, NJ Turnpike) from 8:30 a.m. until 12:45 p.m.  The cost to attend is $129 per person for NJBIA members and $169 for nonmembers.  Register online now or, for more information, call at 609-393-7707, ext. 239.  To become a sponsor, contact at ext. 219.

Wednesday, March 25
Meet the Decision Makers:  NJ’s State Treasurer
Get the inside story on the State budget (taxes and spending) from New Jersey’s State Treasurer, David Rousseau, and leaders of the Senate and Assembly Budget and Appropriations Committees at this special briefing.  To be held at Forsgate Country Club in Monroe Township (Exit 8A, NJ Turnpike), the event will begin with registration and a buffet breakfast at 7:45 a.m. and end at 10:00 a.m.  The cost to attend is $75 per person for NJBIA members and $125 for nonmembers.  Register online now or, for more information, contact at 609-393-7707, ext. 213.  To become a high-visibility sponsor, contact at ext. 219.

Friday, April 17
Meet the NJ Legislature’s Majority and Minority Leaders
Like it or not, what happens in Trenton impacts your business.  Don’t wait until a new law is passed to make your voice heard.  Meet the legislative leaders who make these laws, and they will also answer your questions.  Taxes, healthcare, economic stimulus legislation and regulatory reform will be discussed.  This event will begin at 7:45 a.m. with a buffet breakfast and will end at 10:00 a.m.  It will be held at Forsgate Country Club in Monroe Township (Exit 8A, NJ Turnpike).  The cost to attend is $75 per person for NJBIA members and $125 for nonmembers.  Register online now or, for more information, contact at 609-393-7707, ext. 213.  To become a sponsor, contact at ext. 219.