State government would become smaller, spend less and not borrow for operating expenses under a $33 billion budget proposed February 26 by Governor Jon Corzine. Corzine has proposed cutting 3,000 State jobs, eliminating the Commerce Commission and Agriculture and Personnel Departments, and enacting long-term reforms to limit future spending to available revenues.

NJBIA President Philip Kirschner said NJBIA supported the core principles contained in the proposed budget, namely cutting spending and limiting it to no more money than comes in through revenues. Senior Vice President Melanie Willoughby pointed out that the Governor was not proposing any tax increases and drastically limited the use of one-time funding sources. "We look at this as a solid step toward getting the State's fiscal house in order," she said.

The proposed budget also includes incentives for towns to merge and share services. It would reduce aid to municipalities with fewer than 10,000 residents while giving them priority in funding for consolidation and sharing services. The budget also increases school aid by about $500 million, most of which would go to increased funding for suburban school districts. Property tax rebates would be eliminated for homeowners making more than $150,000 per year and reduced for those making between $100,000 and $150,000. For more information, contact at ext. 247.

NJBIA Blasts Paid Family Leave Bill at Assembly Hearing

Legislation that would grant up to six weeks per year of paid family leave to all employees at all workplaces is harmful to operating a business and would hurt New Jersey's weakened economy, NJBIA told the Assembly Labor Committee on February 28. Nevertheless, the committee voted 6-2 to release the bill, A-873 (Albano, Oliver), after rejecting an amendment proposed by Assemblyman Michael Doherty to exempt businesses with two to 49 employees. The measure now heads to the Assembly Appropriations Committee for consideration. Doherty joined Assemblyman Jay Webber in voting against the bill, while Assemblyman Ronald Dancer abstained.

NJBIA urges you to contact your legislators and tell them to oppose a paid family leave mandate on all businesses.

Testifying before the committee, NJBIA President Philip Kirschner said it is simply unrealistic to expect employers, especially small employers, to operate without employees for up to 12 weeks (in the case of pregnancy). Businesses would be forced to pay for temporary workers, overtime, or lost productivity in their workplaces. Some jobs would simply not get done. In many cases it would be difficult to find skilled workers to fill positions. This would hurt the businesses' relationship with their customers and put them at a disadvantage with competitors in neighboring states, which do not have this mandate.

Kirschner also noted that New Jersey is in the midst of a very weak economy, having lost 9,200 private-sector jobs in January alone and having seen its annual job growth trimmed to a mere 3,700 private-sector jobs in 2007. "This is the wrong bill at the wrong time," Kirschner said.

Kirschner pointed out that businesses work with their employees to balance work and family needs, but employers need the flexibility to operate their workplace to meet their specific needs. A one-size-fits-all mandate like A-873 does not take into account the differences in the needs of the small retailer or office, a medium-sized manufacturer or a large hospital. Employers use sick days, vacation, other time off, flexible scheduling and many other methods to accommodate employees' needs. For more information, contact at ext. 209.

Private-Sector Employment Picture Turns Bleak

New Jersey lost 9,200 private-sector jobs in January, and revised employment numbers show that the State economy created a mere 3,700 private-sector jobs (0.1 percent) in 2007, not 23,600 new jobs as originally estimated.

"This dismal performance cannot be blamed solely on the national economic slowdown," NJBIA President Philip Kirschner said. "This is clearly a result of the State's failure to address the root cause of New Jersey's poor business climate - the high cost of doing business."

The largest private-sector job gains in 2007 came in education and health services (+11,100), professional and business services (+6,100), and information technology (+2,400). Healthcare employment has been expanding rapidly over the past several years, partly due to New Jersey's aging population. These gains were offset in 2007 by losses in manufacturing (-8,400), financial activities (7,900), and construction (-4,100). For more information, contact at ext. 227.

Regulatory Flexibility Act Expansion Clears Committee

Small businesses that feel they are unfairly burdened by government regulations would be able to take their case to court, under NJBIA-backed legislation, A-832 (Chivukula, Schaer), released February 25 by the Assembly Economic Growth Committee. The bill would expand New Jersey's Regulatory Flexibility Act to allow businesses with fewer than 100 employees to appeal to the courts if they have been economically harmed by the actions of a government agency. The bill would also require government agencies to simplify and consolidate reporting requirements for small businesses. The measure now heads to the full Assembly for consideration. For more information, contact at ext. 236.

Making Sense of Family and Disability Leave, Friday, March 7

This program will help employers sort through the bewildering levels of leave regulations and show how to avoid costly mistakes regarding length of leave, job protection, benefits and discrimination issues. Top employment law experts will explain how to avoid the many legal pitfalls and will share the lessons they have learned. The seminar will be held at the Sheraton Eatontown (near Exit 105, Garden State Parkway) from 8:30 a.m. to 12:00 p.m. The cost is $119 per person for NJBIA members and $149 for nonmembers. Register online now, or contact at 609-393-7707, ext. 219, for more information.

Support the NJ Business Hall of Fame Gala, April 17

The NJ Business Hall of Fame (NJBHOF) 2008 Gala, to be held April 17 at The Mezzanine in Newark, will honor three business leaders, including NJM Insurance Group President and CEO Anthony G. Dickson. Please support this special event by buying a ticket, being a sponsor and/or purchasing an advertisement. Call Dawn Schwartz, at 973-533-1133 for more information.