Corzine, Christie Tell 400 at ELC Dinner Why They Would be Best for NJ Business Read
Paid Family Leave Begins, New State Program Impacts All Businesses Regardless of Size Read
Employer Legislative Committees of NJ Celebrate 50 Years of Grassroots Action Read
Quotes of the Month: Gubernatorial Candidates Read

Governor Jon Corzine said his policies have positioned New Jersey to emerge from the global recession stronger than other states, while challenger Chris Christie pledged to rein in taxes and reduce the regulatory burden on businesses.

These were the messages the Democratic and Republican candidates for Governor presented to 400 businesspeople at NJBIA’s State Employer Legislative Committees (ELCs) Dinner on June 16. It was the candidates’ first joint appearance since capturing their parties’ nominations in the June primary.

The dinner was sponsored by the Credit Union League of New Jersey, whose president and CEO, Paul Gentile, served as dinner chair. The event also marked the 50th anniversary of the ELCs existence. ELCs were started in 1959 as the grassroots affiliate of NJBIA. Today, there are 18 ELCs representing all 21 New Jersey counties. ELC members hold informal monthly meetings with local legislators and other government officials.

Corzine kicked off the night by pointing to several probusiness initiatives he spearheaded, including reforming corporate business taxes, which he said has saved businesses hundreds of millions of dollars in taxes; replenishing the Unemployment Insurance fund, saving businesses $800 million over two years; and creating new financial incentives to encourage businesses to create jobs and undertake capital improvement projects.

“I think we have been working and making those right decisions for the last three and a half years,” Corzine said. “And I believe we will come out of this recession sooner and stronger in New Jersey than most of the rest of the country.”

Christie said the State was paying the price for the high tax and regulatory burden it has imposed on the business community, and he pledged to cut taxes and reduce regulations to get the economy going again.

“We saw in the ’80s and the ‘90s what lower taxes and less regulation would do for the business community in this State,” Christie said. “We have a great business community in this State…but we are pricing you out of the market.”

He said that as Governor, he would do what he did as US Attorney—surround himself with good people and stay true to his principles.

Corzine also pointed out that his administration had streamlined environmental regulations—specifically through the enactment of the Permit Extension Act, allowing expiring development permits to remain in force until July 2010, and the Licensed Site Professional program, which will allow private-sector environmental engineers, instead of the NJ Department of Environmental Protection, oversee many site remediation projects.

Christie, however, said government taxes and bureaucracy have been growing in New Jersey. He said taxes and fees have been increased 103 times since Corzine was elected.

Over the last seven years, “for every one private-sector job that has been created in New Jersey, there have been 15 government jobs created,” Christie said. “You don’t need to be an economist to understand that this is not sustainable.”

During the last 36 years, the ELC dinner has been the first major event where the Democratic and Republican candidates for Governor appear together after winning their respective primary elections. Corzine and Christie met and shook hands as both were campaigning during the dinner portion of the event.

           
For more information, contact

State legislators cut spending by record levels in this year’s budget and enacted a new round of economic stimulus initiatives, but also raised taxes. With both the Governor’s Office and all 80 Assembly seats up for grabs this November, legislators also acted on energy legislation, healthcare mandates and other initiatives. Here is a look at key bills that NJBIA has recently worked on.

Budget
Governor Jon Corzine on June 29 inked a $29 billion budget that cuts spending by $4 billion but increases various taxes on businesses and individuals.

From the beginning, NJBIA urged lawmakers to cut spending to make up for a steep drop in State revenues. The $29 billion spending plan cuts expenditures by 12 percent from the $33 billion budget that was approved last year.

NJBIA was successful in convincing lawmakers to add $120 million to the Unemployment Insurance (UI) fund to avoid an additional $350 million payroll tax hike on employers. NJBIA was also able to dramatically scale back a planned 135 percent tax increase on health insurance premiums.

Despite the welcomed $120 million appropriation to shore up the UI fund, employer payroll taxes rose by $350 million (an average of about $87 per employee) on July 1. The UI tax hike resulted from the State’s diversion of nearly $5 billion from the UI fund to pay for other budget expenses over the past 12 years. NJBIA believes strongly that the money should have been appropriated to avoid a UI tax increase completely. We cannot think of a worse tax to raise in a recession than a tax on payroll.

The budget also includes several tax increases, which NJBIA opposed. It continues for one year a 4 percent surcharge on corporate tax rates that was scheduled to expire this year.
The budget also raises taxes for one year on incomes between $400,000 and $500,000 (to 8 percent from 6.37 percent), $500,000 to $1 million (to 10.25 percent from 8.97 percent) and over $1 million (to 10.75 percent from 8.97 percent). It also increases the cigarette tax by 12.5 cents per pack and hikes alcohol and wine taxes by 25 percent.

For more information, contact Art Maurice at amaurice@njbia.org.

Economic Stimulus
The Governor on July 27 signed a new economic stimulus bill that provides tax and fee reductions and financial incentives to stimulate large-scale, private-sector economic development projects. S-2299 (Lesniak)/A-4048 (Roberts, Coutinho), reforms several existing economic development programs by:

• establishing a moratorium on the collection of the 2.5 percent nonresidential development fee by the NJ Council on Affordable Housing (COAH);
• creating a new tax increment financing program to provide rebates for some taxes paid by a development project;
• expanding the amount of net operating losses available under the Technology Business Tax Certificate Transfer program and reforming the Urban Transit Hub Tax Credit program to make it easier to qualify;
• allowing public-private partnerships to build facilities at State colleges and universities.

NJBIA supports the measure. As currently structured, these programs are too complex and have too many barriers. While 48 states currently have viable tax increment financing programs, New Jersey’s program has attracted only one project in ten years. Similarly, because its requirements are too onerous, the Urban Transit Hub program has not generated any applicants. For more information, contact Art Maurice at amaurice@njbia.org.

Green Building Codes
Legislation that would incorporate “green building” requirements into New Jersey’s Uniform Construction Code received final legislative approval on June 25.

S-702 (Smith)/A-1629 (McKeon, Chivukula) would require the Commissioner of Community Affairs to develop an energy building subcode for the State based on existing federal models. The Legislature adopted NJBIA-backed amendments to link New Jersey’s requirements to a national construction code, thus avoiding costly, New Jersey-only regulations.

For more information, contact Sara Bluhm at sbluhm@njbia.org.

Prevailing Wage for Energy Projects
Businesses that undertake already expensive energy efficiency or renewable energy projects will be forced to pay higher union-scale prevailing wages to contractors under a new law. A-3372 (Barnes, Diegnan)/S-2340 (Sweeney, Buono) was signed into law by Governor Corzine July 15. It requires businesses to pay prevailing wage on any project receiving more than $11,892 in financial assistance from the Board of Public Utilities (BPU), including rebates, tax abatements or loans. Projects ranging from replacement of heating and cooling equipment to the installation of solar panels would be covered.

NJBIA opposed the bill because it increases the cost of energy conservation and renewable energy projects promoted by the State. According to the Mid-Atlantic Solar Energy Industries Association, the prevailing wage mandate will add 25 percent to labor costs for installing a solar energy system. The higher costs outweigh the benefits of many of the rebates and tax incentives for renewable energy and energy efficiency projects, ensuring that fewer companies will undertake such expensive projects in these tough economic times.

For more information, contact Sara Bluhm at sbluhm@njbia.org.

Health Insurance Coverage of Autism
On June 25, legislators sent Governor Corzine a bill requiring State-regulated health plans to cover treatments for autism and other developmental disabilities.

A-2238 (Roberts, Prieto)/S-1651 (Vitale, Weinberg) would require coverage for physical therapy, speech therapy, occupational therapy and evidence-based behavioral interventions when they are determined to be medically necessary by a physician.

While the final legislation included many of NJBIA’s recommendations to balance costs with access to needed services, we remain concerned about the impact this mandate will have on the cost of health insurance. For more information, contact Christine Stearns at cstearns@njbia.org.

For a complete list of bills NJBIA worked on, visit
www.njbia.org/issues.

On July 1, New Jersey became only the second state in the nation to impose a paid family leave mandate on all businesses. Under the law, all companies, even those with as few as one employee, must allow employees to take up to six weeks of paid time off to care for a newborn or a sick relative.

Unlike State and federal unpaid leave laws, which exempt companies with fewer than 50 employees, there is no small-business exemption for paid family leave.

Employers may require employees to substitute two weeks of paid vacation and sick leave for the paid family leave, thus reducing it to four weeks. There is also a one-week waiting period for many employees who wish to receive benefits.

Employees are eligible for up to two-thirds of their wages, with a maximum of $546 per week. Employers with one to 49 employees are not required to hold open the job for the employee who is taking leave under the paid family leave statute, but could face legal liability for discrimination under other federal and State laws. To learn more, visit www.njbia.org/paidleave.

“I believe we will come out of this recession sooner and stronger in New Jersey than most of the rest of the country.”
--Governor Jon Corzine at the Employer Legislative Committees State Dinner

“We have a great business community in this State…but we are pricing you out of the market.”
--Gubernatorial Candidate Chris Christie at the Employer Legislative Committees State Dinner

Since 1959, the Employer Legislative Committees (ELCs) have been bringing business and government together in a spirit of cooperation. At the June 16 State Dinner, 400 NJBIA members gathered at the Princeton Hyatt to celebrate their golden anniversary.

“For 50 years, the ELCs have embraced the time-honored democratic tradition of working with State and local government officials to address the important issues of the day to help build more prosperous communities,” said ELC Dinner Chair Paul Gentile, president and CEO of the Credit Union League of New Jersey. “Now, not only are the ELCs stronger than ever, but it is more important than ever that the voice of New Jersey business be heard.”

State ELC Chair Julie Holman, director of State government affairs for JCP&L, a FirstEnergy Company, said the ELCs have been effective because of the people who participate in them. The success of the ELCs is determined by local businesspeople who are willing to give their time and effort to make them better.

“Every month, in counties across the State, legislators and other State, county, and local government officials get together with local businesspeople to discuss and debate the issues impacting New Jersey’s economy and business climate,” Holman told the crowd. “It’s this kind of grassroots effort that has been at the heart of the Employer Legislative Committees for 50 years. The ELCs work because they are run locally by people who secure the speakers, arrange for a meeting place and send out the notices.”

The ELC concept is simple: Bring government leaders and area businesses of all sizes and types together in an informal setting to discuss the best ways to resolve critical issues like taxes and health- care costs.

The ELCs are the grassroots affiliate of NJBIA. For a complete list of ELC meetings in the State, please visit www.njbia.org/ELCs.

What are some of the major changes to the Small Business Administration’s (SBA) programs resulting from the American Recovery and Reinvestment Act?

A. Since President Obama signed the American Recovery and Reinvestment Act (referred to below as the Act) on February 17, several changes and new programs are now available to small business owners through the US Small Business Administration (SBA).
The Recovery Act provided SBA with $730 million to enhance our programs and to allow us to assist more small businesses during these tough economic times. A total of $375 million was budgeted to temporarily eliminate fees on SBA loans and to raise the guaranty limits up to 90 percent on most types of 7(a) loans.
Since the signing of the Act, SBA lending has increased and 388 New Jersey small businesses have secured SBA-backed loans totaling $126 million. The higher guaranty has acted as a strong inducement for our lending partners to approve loans, and our small business borrowers have saved over $2.5 million by taking advantage of the current fee elimination policy.

What are America’s Recovery Capital (ARC) Loans for small business owners?

A. ARC loans can provide up to $35,000 in short-term relief for viable small businesses experiencing immediate financial hardship. $255 million was allocated by the Recovery Act for this new SBA loan program, and our lending partners started accepting ARC loan applications on June 15.
The loan enables a firm to redirect cash flow from loan payments into other uses such as retaining employees or meeting operational expenses. ARC loans are disbursed over a six-month period and are used for payments on existing, qualifying small-business debt including mortgages, term and revolving lines of credit, capital leases, credit card obligations and notes payable to vendors, suppliers and utilities.
ARC loans carry a 100 percent SBA guarantee and are interest free to the borrower (the SBA pays the interest to the lender). To further conserve cash flow for our small business clients, this loan offers a deferred payment plan with the first repayment of loan principal due 12 months after the final disbursement. Borrowers also have up to five years to repay the loan principal.

What is the debt refinancing change to the 504 loan program introduced by the Recovery Act?

A. Under this new and permanent change, our 504 Certified Development Company lenders will be allowed to refinance existing loans that were used for the acquisition of fixed assets. By allowing small businesses which are expanding to restructure eligible debt under more favorable terms and conditions, this loan program allows firms to improve their cash flow and enhances their viability and capacity for growth and job retention.

For More Information
• Visit www.sba.gov/recovery.
• For SBA loans in New Jersey, contact SBA’s Assistant District Director of Lender Relations, William C. Boone at (973) 645-2179.
• Business owners in need of counseling or other specialized services should visit NJBIA’s Small Business Resource page at www.njbia.org/links_smallbiz.asp.

Friday, September 18
Managing Energy Costs in Challenging Times
• Location: The Pines Manor, Edison (Route 27)
• Time: 8:30 a.m. – 12:30 p.m.
• Cost: $129 pp for NJBIA members / $169 for nonmembers
• Contact: Katie Wittkamp, ext. 239
At this program, top experts in business and government will tell you how to control costs and make your company more energy efficient. Talk to energy-conservation experts and energy providers. Learn about the latest strategies to manage energy costs and developments on energy policy and regulation.

Friday, September 25
Meet the Decision Makers: NJ’s Senate President and Assembly Speaker
• Location: Forsgate Country Club, Monroe Twp. (Exit 8A, NJ Turnpike)
• Time: 7:45 a.m. – 10:00 a.m.
• Cost: $75 pp for NJBIA members / $125 for nonmembers
• Contact: Stacy Wichner, ext. 213
Hear directly from New Jersey’s two most powerful legislative leaders, Senate President Richard J. Codey and Assembly Speaker Joseph J. Roberts at this NEW JERSEY BUSINESS & INDUSTRY ASSOCIATION special breakfast event. These two individuals have enormous influence over issues that directly impact your business, such as taxes, healthcare costs, environmental requirements, and the overall cost of doing business. The upcoming election for Governor and the Assembly will also be discussed. Plenty of time will be set aside to answer your questions. Don’t miss this opportunity to network with your colleagues and hear about issues to be addressed in the coming months!

Friday, October 2
Hot Legal Topics for Employers
• Location: Forsgate Country Club, Monroe Twp. (Exit 8A, NJ Turnpike)
• Time: 8:30 a.m. – 1:00 p.m.
• Cost: $129 pp for NJBIA members / $169 for nonmembers
• Contact: Katie Wittkamp, ext. 239
This program will provide you with the latest information on the most current legal issues affecting your business. Legal experts will discuss a broad range of topics, including hiring and firing, developing and updating employee handbooks, and avoiding liability in discrimination cases.

Friday, October 9
Meet the Decision Makers: Environmental Policy
• Location: Forsgate Country Club, Monroe Twp. (Exit 8A, NJ Turnpike)
• Time: 7:45 a.m. – 10:00 a.m.
• Cost: $75 pp for NJBIA members / $125 for nonmembers
• Contact: Stacy Wichner, ext. 213
At this special NEW JERSEY BUSINESS & INDUSTRY ASSOCIATION breakfast, you will hear directly from NJ Department of Environmental Protection Commissioner Mark Mauriello and the chairs of the Senate and Assembly Environment Committees on environmental issues directly affecting your business, including air, water and land-use permitting, regulatory compliance, development restrictions, and new environmental legislation. Plenty of time will be set aside to network with your business colleagues and have your questions answered.

Tuesday, October 20
Awards for Excellence Dinner
• Location: The Pines Manor, Edison (Route 27)
• Time: 6:00 – 9:00 p.m.
• Cost: $149 pp (Tables of 10 are available.)
• Contact: Stacy Wichner, ext. 213
NJBIA member companies that have achieved excellence in business expansion, human resources management, environmental quality, and public service will receive NJBIA’s Award for Excellence at this dinner. Established in 1984, the Awards for Excellence program recognizes companies of every size.

Friday, November 13
Health Insurance: How To Be a Savvy Purchaser
• Location: Renaissance Woodbridge Hotel, Iselin (Route 1 South)
• Time: 8:30 a.m. – 12:30 p.m.
• Cost: $129 pp for NJBIA members / $169 for nonmembers
• Contact: Stacy Wichner, ext. 213
This half-day seminar will provide an overview of the New Jersey health insurance markets, cost-containment and purchasing strategies, how to find a good broker, and how to manage costs with Health Savings Accounts (HSAs) and Health Reimbursement Accounts (HRAs).

Friday, November 20
Navigating Paid Family Leave
• Location: Wilshire Grand Hotel, West Orange (Exit 7, Route 280 West)
• Time: 8:30 a.m. – 1:00 p.m.
• Cost: $129 pp for NJBIA members / $169 for nonmembers
• Contact: Katie Wittkamp, ext. 239
All New Jersey employers, regardless of size, must comply with the State’s new Paid Family Leave Act. As of July 1, employees can take six weeks of leave each year to care for a sick family member, a newborn or adopted child. At this seminar, top legal experts will explain your rights and responsibilities as an employer under the final regulations. It’s not too late to learn how to protect yourself and your business!

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NJBIA’s many events and programs are made possible in part through the financial support of our Premier and Grand sponsors.  NJBIA extends its deepest appreciation for the generosity and support of these members.

Premier Sponsors
NJM Insurance Group
www.njm.com  •  1-800-232-6600

The Port Authority of New York & New Jersey
www.panynj.gov  •  212-435-7000

Grand Sponsors
Connell Foley LLP  •  973-535-0500
Horizon Blue Cross/Blue Shield of NJ  •  1-800-355-2583
NJ Credit Union League  •  1-800-792-8861
South Jersey Industries  •  609-561-9000
United Water  •  201-767-9300 
Verizon •  1-800-837-4966