This was Corzine’s first post-election appearance
before employers. It gave NJBIA members a chance to
hear from him about what he plans to do on such important
issues as the budget, taxes, and health insurance.
Corzine 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 up to $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.
Following Codey, four top legislative leaders debated
issues such as the gas tax, property tax reform and
improving the State’s business climate. The
panel, moderated by 101.5 Radio’s Statehouse
Correspondent Kevin McArdle, was
comprised of 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. Roberts pointed
to measures aimed at tackling the high cost of health
insurance, particularly the Mandated Health Benefits
Advisory Commission, which is designed to control
costs on healthcare mandates that drive up insurance
costs. More broadly, he called for a balance between
business interests and other interests.
“Our mission in the Legislature from my perspective
is all about trying to achieve balance: balance between
business and labor, balance in terms of protecting
the environment and also creating a climate that allows
you to get approval for projects in a timely fashion,”
Roberts said.
DeCroce said he did not think New Jersey was business
friendly at all. “In fact, between the onerous
taxes that have been imposed these last several years,
as well as the regulations that have been imposed
on business, I think they’ve scared the hell
out of the business community,” DeCroce said.
On the contentious issue of property tax reform,
Kenny said changing New Jersey’s property tax
“culture” would involve “a major
war with municipalities, with county governments and
with school boards.”
“To regionalize police and fire, try doing
it and see the big political fight you have on your
hands,” Kenny said. “We did it in North
Hudson (County). It took seven years and we did it
because we had very, very strong mayors…that
were able to pull it off.”
Lance agreed that the issue would not be easy to
solve. He said he supported the concept of a Constitutional
Convention to reform property taxes, but only if spending
is included as part of the debate. A proposed Constitutional
Convention bill considered in 2005 would have prohibited
delegates from proposing spending changes. He warned
the business community, however, to watch out for
proposals that would remove the requirement that residential
and commercial properties be taxed at the same rate.
“Not all states do that…. That has been
our tradition in New Jersey,” Lance said. “In
many states, business and commercial and industrial
properties are taxed more heavily than residential
real estate. A convention would have the option to
change that.” He added that he supports maintaining
the same standard of value for commercial and residential
property.
Also as part of the program, NJBIA President Philip
Kirschner presented the findings of NJBIA’s
2006 Business Outlook Survey. 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 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 have.”
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 business.
2005 Public Policy
Forum Sponsors
Altria Corporate Services, Inc. - www.altria.com
Arrow Group Industries, Inc. - www.sheds.com
Atlantic City Electric Company - www.atlanticcityelectric.com
AT&T Inc. - www.att.com
BP America Inc. - www.bp.com
ConocoPhillips Bayway Refinery - www.conocophillips.com
Constellation NewEnergy - www.newenergy.com
Exelon - www.exeloncorp.com
Jersey Central Power & Light…A FirstEnergy
Company - firstenergycorp.com
Lockheed Martin - www.lockheedmartin.com
NJM Insurance Group/NJM Bank FSB - www.njm.com
PNC Bank - www.pncbank.com
Providence Pediatric Medical DayCare, Inc. - www.providencenj.com
Sanofi-aventis - www.sanofi-aventis.us
South Jersey Industries - www.sjindustries.com
Sprint - www.sprint.com
United Water - www.unitedwater.com
Verizon New Jersey - www.verizonnj.com
