NJBIA members have strongly opposed the initiative, concerned that it would lead to costly disruptions of their businesses. In November and December, they sent more than 29,000 messages asking the Governor and legislators to defeat the legislation. (The Legislature did not pass paid leave in 2007. See related story.)
During the Forum’s morning program, NJBIA President Philip Kirschner presented the findings of the Association’s 2008 Business Outlook Survey, which found employers to be more pessimistic than optimistic about the State economy and deeply unhappy with New Jersey’s business climate.
Kirschner said the survey data showed that "favorable business conditions in NJ's current economic expansion actually peaked in 2005 - two full years ago," which explains why job growth in this State has been so weak in recent years, growing at half the national rate.
The issue of paid family leave provoked lively debate when the State’s top four legislative leaders took questions from Joe Bisicchia, host and producer of Comcast Newsmakers.
All four legislators expressed concerns during the morning panel discussion. Senate President Richard Codey said he supports the concept of paid family leave, but thinks the bill, S-2249 (Sweeney, Buono)/A-3812 (Albano, Panter), should be amended to pay only six weeks of leave and do more to protect small businesses.
"I've spoken to (bill sponsor) Steve Sweeney," Codey said. "I said 'Steve, ten weeks, too much. Take it to six.' He said 'yes.' "
Assembly Republican Leader Alex DeCroce, who opposes paid family leave, warned businesses that they ultimately would pay for the program. As currently written, the legislation would fund paid-leave benefits with a $150 million employee payroll tax.
"I frankly believe that in the long run, the business community will end up with the bill," DeCroce said.
Senate Republican Leader Leonard Lance, who opposes the legislation, added that if any paid family leave program is adopted, it should be done at the national level so New Jersey businesses are not put at a disadvantage with their competitors in other states.
Assembly Speaker Joseph Roberts said that while he supports paid family leave, the Assembly needed more time to work on the bill. Two days after the Forum, Roberts issued a statement indicating that a number of significant concerns need to be addressed.
"We will need more time to work through some issues, such as the bill’s impact on small businesses, the potential for abuse, and the timing of some of the bill’s provisions," Roberts said in his statement.
For his part, Corzine said he believes that paid family leave is right for New Jersey, and he tried to convince NJBIA members that it would not have a big impact on their workplaces.
On broader economic issues, Corzine said New Jersey was in better shape than many other states due to the diversification of its economy, the quality of its employees, and the dynamism of its private sector. He also noted that the State had maintained a lower unemployment rate than the nation for most of the last two years. He said close to 60,000 new jobs will have been created in New Jersey over the past two years, with 81 percent of those jobs coming from the private sector.
The Governor also noted that the State's economy has a good balance of pharmaceuticals, bio-technology, finance and logistics, making New Jersey less susceptible to downturns in any one industry. "We're not as dependent on one area or another as a lot of places," he said.
He added that New Jersey makes a tremendous commitment to workforce training, helping to maintain one of the best labor pools in the nation. The State has committed $60 million to workforce training, including a $1.9 million grant for a Basic Skills training program organized by NJBIA and the Consortium of Community Colleges.
"We're trying to make sure (the State training programs) match up with what the demands of business are, (and that it’s) not just us ginning up some government program that doesn’t relate to what the business needs are," the Governor said.
The Forum also featured:
• An "On the Record" political panel moderated by New Jersey Network Senior Political Correspondent Michael Aron. The panel discussion, which was taped and later shown on NJN television, featured State Democratic Party Chair Joe Cryan, Republican State Party Chair Tom Wilson, Roger Bodman of the Giuliani for President campaign, and Harold Hodes of the Clinton for President campaign.
• An economic outlook panel moderated by NJBIA First Vice President Arthur Maurice and featuring Roma Bank President and CEO Peter Inverso, Unex Manufacturing Inc. President Brian Neuwirth, Commerce Bank Chief Economist Joel Naroff, and AT&T New Jersey President Michael Schweder.
• Former US Congressman Bob Franks asked the audience to support Rudy Giuliani for the GOP nomination for President. Franks is president of the Healthcare Institute of New Jersey and co-chair of the Giuliani for President Campaign in New Jersey.
• The presentation of four NJBIA awards. Anthony Dickson, president and CEO of NJM Insurance Group received the Paul L. Troast Award; NJ Department of Community Affairs Commissioner Joseph Doria and State Senator Peter Inverso received the Association’s first ever Distinguished Public Service Award; and Julie Holman of Jersey Central Power & Light, A FirstEnergy Company, received NJBIA’s Leonard C. Johnson team-player Award.
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