Governor Chris Christie on February 11 announced $2.2 billion in budget cuts to balance New Jersey's current-year budget before the fiscal year ends on July 1, fulfilling his oft repeated promise to address New Jersey?s fiscal crisis with cuts in spending, not tax increases. The cuts primarily come from savings from over-funded programs, targeting waste, and the capture of unexpended balances from accounts in every corner of State government. In all, Christie outlined 375 line items of cuts, efficiencies and program eliminations.

"These are among the hardest decisions any governor could be called upon to make," said Christie in an address to a joint session of the Legislature. "But this process is also an extraordinary opportunity, a generational moment, where we confront the consequences of past failures while providing the solutions and permanent reforms we need to lead us to stability and better, more prosperous times."

NJBIA has repeatedly called on State government to address its budget problems by cutting spending, because tax increases, borrowing and one-shot revenue gimmicks only make the problem worse in the future. Reacting to the address, NJBIA President Philip Kirschner said: "For too long now, the State has tried to tax and borrow its way out of budget trouble. Governor Christie has shown today that he is going to take a different route, one that will give businesses confidence that the State is not going to sock them with higher taxes. That will pay dividends for our economy down the road."

2. Fix the Regulatory Process to Get NJ?s Economy Going, NJBIA Says

As State policy makers prepare to tackle New Jersey?s massive regulatory system, NJBIA wants to make sure both the regulatory process itself, as well as specific onerous regulations are fixed.

Testifying February 8 before the newly created Assembly Regulatory Oversight Committee, NJBIA First Vice President Art Maurice pointed out that the way the State adopts and enforces regulations has contributed to a business climate that is often hostile to the business community. "Unelected, with virtually unlimited power to ?interpret? State law, these State bureaucrats exert tremendous influence over New Jersey commerce," Maurice said. "From their Trenton offices, State regulators opine on everything from where businesses can locate, to business tax processes, to commercial vehicle standards, to business customer billing practice."

Maurice said such regulations have a big impact on the ability of businesses to grow and create private-sector jobs. He also pointed out that regulators often have little knowledge and concern about how their decisions affect employers in the management of their business.

To change course, Maurice said the regulated community should be treated as a customer, not as an adversary. This simple culture change would focus on reducing paperwork, strive for beneficial outcomes rather than blindly following rules, and listening to customers feedback. He cited the Division of Motor Vehicles as an agency that evolved from a "command and control" system to a customer-based service system. Also, regulators should get business?s input before new rules are drafted, and pay more respect to law and legislative intent in drafting rules. Too many regulations that claim to implement laws that are sometimes decades old go way beyond anything the Legislature ever intended. He also called for allowing agencies to waive regulations when common sense dictates and giving more authority to the Office of Administrative Law to reject or modify rule proposals when they contradict other regulations.

A bipartisan group of State Senators introduced a four-bill package designed to reduce the cost of public employees? pension and health care benefits. The measures are aimed at reducing an estimated $34 billion unfunded liability and curtail some of the increases in health benefits costs. Senate President Stephen Sweeney had promised to make pension reform a priority at the beginning of the legislative session.

S-2 (Scutari, O'Toole) would limit enrollment in the pension system to full-time employees, and increase the number of "high salary" years for calculating benefits from three to five years for public employee and teacher pensions, and from one to three years for police, fire and State Police pensions. This would reduce the cost of the overall pension benefit amount.

S-3 (Doherty, Whelan) would require all public employees to pay at least 1.5 percent of their salary towards their health benefits after the expiration of their current contract, and would require all newly hired employees to pay at least 1.5 percent of their base pension toward health benefits upon retirement.

S-4 (O'Toole, Buono) would limit unused sick leave payouts at retirement for local and school employees to $15,000, the standard for State employees. It would only apply to new workers.

SCR-1 (Sweeney, Kean) would amend the State constitution to require the State to annually meet its monetary obligation for each pension plan it operates.

NJBIA believes these bills represent positive steps forward to reduce bloated government pension and health benefits.

4. NJBIA Turns 100: Celebrating a Century of Service to New Jersey Business

This week, the New Jersey Business & Industry Association turned 100 years old, marking a century of service to its member businesses statewide. NJBIA was formed on February 10, 1910. Originally called the Manufacturers Association of New Jersey, NJBIA was founded by eight businessmen who recognized the need to speak with a single voice on the major issues of the day, such as a proposed workers? compensation system. Throughout its long history, NJBIA has remained steadfast to its original mission of assisting member companies. At the same time, it has evolved into a business-service organization, a leading advocate for business before the State government and a key source of valuable information on business issues and trends. A key benefit of NJBIA membership, for employers and employees alike, is access to workers' compensation, auto and homeowners insurance from NJBIA's affiliate since 1913, the highly rated New Jersey Manufacturers Insurance Company.