Governor-elect Jon Corzine discussed controlling healthcare mandates to make insurance more affordable and altering the State’s gross receipts tax during an earnestly probusiness speech to more than 350 business leaders at NJBIA's December 13 Public Policy Forum. Corzine stressed his 25 years in the private sector with the Goldman Sachs investment firm and reiterated his desire to strengthen private-sector economic growth when he becomes Governor in January. “I believe the business climate needs to change in the State,” Corzine said. “I do not consider business the problem, I consider it the solution.”

This was the first chance for employers to hear from Corzine about what he plans to do on such important issues as the budget, taxes, and health insurance. The Governor-elect declared that he wants “to grow the private sector job element in this State.” He also said that too much of New Jersey’s job growth has come from government, not the private sector.

To reverse the trend, Corzine said he wants to control the cost of health insurance by controlling mandates, offering more affordable plans, and promoting purchasing co-ops. “I do understand that some of the mandates we have price small business particularly out of the market and its ability to access health care.”

Facing a structural budget deficit of more than $5 billion, Corzine conceded that there would be no easy solutions. However, he wants to change the way New Jersey formulates its spending plans by replacing the annual budget cycle with two-year plans for operating budgets and five-year plans for capital budgets. He also reiterated his call to have an elected State comptroller to oversee how State government spends taxpayers’ money. “I wouldn’t run a company without having an independent audit going on, on a consistent basis, on the internal activities of the firm,” Corzine said. “And I don’t think we should as a State.”

On taxes, Corzine sympathized with business on two of the most onerous provisions of the 2002 Corporation Business Tax (CBT) increase—creation of a gross receipts tax (alternative minimum tax) and suspension of net operating loss (NOL) deductions. “I don’t think we should be looking at business as greedy tax cheats…,” he said. “I don’t like the gross receipts tax and I don’t understand why we didn’t have deductibility for NOLs. Those are kind of simple, basic concepts that make sense.”

During the morning program, Governor Richard J. Codey said he was proud of his accomplishments during his year as the State’s chief executive, but has more he wants to accomplish during his two remaining years as Senate President. By being straight with the people, Codey said, he could leave the office proud of the way the government was run. “A great deal of our success can be tied to our approach to governing,” he said. “We tried to govern in a different way. No BS. No fancy spin. Just plain talk.” He then waded into the audience with a wireless mike to take questions.

Also as part of the program, NJBIA President Philip Kirschner presented the findings of NJBIA’s 2006 Business Outlook Survey. The State’s legislative leaders—Assembly Republican Leader Alex DeCroce, Senate Majority Leader Bernard Kenny Jr., Senate Republican Leader Leonard Lance, and Assembly Majority Leader and incoming Assembly Speaker Joseph Roberts—assessed the prospects for property tax reform and transportation trust fund renewal during a panel discussion moderated by 101.5 Radio’s Statehouse Correspondent Kevin McArdle. Attendees then chose between a political panel discussion with State Democratic Party Chair Bonnie Watson Coleman, Republican State Party Chair Tom Wilson, Peter McDonough of the consulting firm Winning Strategies, and NBC Channel 4 New Jersey Correspondent Brian Thompson, that was moderated by New Jersey Network’s Political Correspondent Michael Aron; and an economic outlook panel featuring David T. Houston Jr., president of Colliers Houston & Co.; Clifford Lindholm III, president and CEO of the Falstrom Company; Joel Naroff, chief economist for Commerce Bank; and Matthew Wright, president of Apgar Brothers, Inc., that was moderated by NJBIA Vice President Chris Biddle.

NJBIA Presents Troast Award to Governor Codey—NJBIA on December 13 presented Governor Richard J. Codey with its 2005 Paul L. Troast Award for his outstanding performance as Acting Governor. The Troast Award is presented annually to a public servant who has made an outstanding contribution to the State of New Jersey and its business community. “As Governor, Dick Codey has left his mark,” said NJBIA President Philip Kirschner. “He has been universally praised for his performance. He has brought leadership and integrity to the office of Governor at a time when it was sorely needed. He connected with the public in a way few people in public office do.”

NJBIA Presents Johnson Award to JoAnn Trezza—NJBIA on December 13 presented JoAnn Trezza, vice president of human resources with Arrow Group Industries of Wayne, with its 2005 Leonard C. Johnson Award for her work on behalf of the Association. NJBIA President Philip Kirschner said Trezza “has used her years of hands-on experience to provide key insights into human resources issues at a time when employers have faced some of their greatest challenges.” Among numerous activities, Trezza has been an outstanding chair of the NJBIA Human Resources Committee, where she analyzes countless bills and policy initiatives, and advises the Association on the real-world impact they will have on businesses.

Senate Gives Final Legislative Approval to HSA Bill—The Legislature has passed A-3440 (Cohen, Russo)/S-2574 (Rice, Bucco)/S-2435 (Kean), which would legally establish the high deductible health insurance plans used in conjunction with health savings accounts (HSAs). The bill received final legislative approval December 15 and has been sent to Governor Richard Codey. New Jersey has until the end of the year to change its insurance laws so that employees and employers can continue to save money with HSAs. HSAs allow employers and individuals to contribute tax-free to savings accounts that are then used to pay for routine medical expenses, but they must be accompanied by a high-deductible health insurance plan that covers hospital stays and expensive medical treatments. For more information, contact Christine Stearns at ext. 260.