NJ Business & Industry President Philip Kirschner today issued the following statement on scheduling a vote on A-873, the paid leave mandate, for Monday, April 7:

“It is incredible, given New Jersey’s weakening economy and the government’s fiscal mess, that the Senate would not only attempt to give final passage to an expensive mandated paid leave program, but would also go out of its way to schedule a special session to do it.”

“On Tuesday, we learned that the balance of the fund used to pay unemployment benefits is so low that a $350 million payroll tax increase may be triggered.  The situation is so bad that Governor Jon Corzine has pledged to pump $260 million into the Unemployment Insurance fund.  But Wednesday, after hearing the news that the State has to provide a massive infusion of cash to cover its unemployment insurance program, the Senate announced that it would hold a special voting session to enact a brand new payroll-tax funded program.”

“New Jersey can’t even pay for the programs it has now, yet the Senate may create a huge new program.”

“Senators should reject this bill.  The State should not create a new government program at a time when it is cutting government spending across the board.  A paid family leave program requires $25 million in start-up costs and will need $5 million a year and 32  employees just for administration.  That’s before it even starts paying benefits.”

“Now is not the time to enact a paid leave mandate on businesses.  Employers across the State are struggling in a weak economy.  In the first two months of 2008 alone, New Jersey lost more than 10,000 private-sector jobs.  Senators should pursue policies that help businesses, not hit workers with a payroll tax increase and employers with mandates that make it harder to do business.”

“Ever since Governor Corzine presented his budget plan, there has been a lot of talk about New Jersey getting its fiscal house in order.  It’s time for action, and the first action the Senate should take is to vote down this massive new paid leave program.”