Legislation that would impose what amounts to a healthcare tax on large employers is the wrong approach to healthcare reform, NJBIA Vice President Christine Stearns testified at a Senate Labor Committee hearing May 11. The bill, S-477 (Sweeney, Coniglio), would require businesses with 1,000 or more employees to spend up to $3.30 per employee per hour ($6,874 per year for a full-time employee working 40 hours per week) or pay the difference between this figure and actual spending as a tax to the State. Despite the business community's strong objections to the bill, the committee released the legislation, which was then sent to the Senate Budget and Appropriations Committee for further consideration.
At a time when employers are struggling with skyrocketing premium increases that are rising three times faster than the rate of inflation, NJBIA believes that forcing businesses to spend more on healthcare is just wrong. According to NJBIA's Health Benefits Survey, employers' costs soared 55 percent from 2001 through 2004. This bill is the wrong approach because it does not address the exploding cost of health insurance, which is the root cause of the uninsured problem. NJBIA has proposed a comprehensive plan of insurance reform that would provide employers with more affordable health insurance choices, cut down on medical mistakes and duplication and offset the skyrocketing costs with tax credits and deductions.
S-477 would instead cement New Jersey's reputation as an antibusiness State by mandating that companies spend a certain amount on health insurance on every employee working more than 15 hours per week or pay the difference to the State. The minimum amount would be phased in over three years ($1.65 per employee per hour in 2007, $2.50 in 2008 and $3.30 in 2009) and then indexed to medical inflation afterwards. For more information, contact Christine Stearns at ext. 260.
Assembly Committee Hearing Tackles Reform of Eminent Domain Laws—The Assembly Commerce and Economic Development Committee on May 11 took up the issue of reforming New Jersey 's eminent domain laws, hearing testimony from legislators on 11 separate proposed reforms. None of the bills received a committee vote, but rather served as a starting point to debate how, and to what degree, local governments should be able to take private property for public use through condemnation proceedings. NJBIA applauds the committee's effort.
Eminent domain should be used only in limited circumstances, and measures should be added to protect property owners from abuse. In New Jersey, less developable land, dramatically higher property values and a desperate need for more property tax ratables have created a “perfect storm” that is putting pressure on local governments to use eminent domain. NJBIA believes the need for reform now is crucial. Specifically, NJBIA supports reforms that would clarify what constitutes “blight” or an “area in need of redevelopment,” provide greater public access to information, offer more opportunities for public comment, increase compensation for property owners, ensure a substantive method to appeal a designation of blight, and add pay-to-play protections. For more information, contact David Brogan at ext. 236.
New Law on 30-Year-Old Dependents Takes Effect—A new law taking effect May 12 requires employers who provide health insurance to their employees to offer health insurance coverage for employees' dependents up to 30 years of age. Employees are required to pay the full premium for their dependents. Employers must provide notice of extended dependent coverage immediately before the dependent reaches the age limit, before each open enrollment period, and immediately after the initial effective date of extended dependent coverage under the plan. The law applies only to health insurance purchased in the State's regulated market. To qualify, dependents must be under 30 years of age, unmarried, have no dependents of their own, reside in New Jersey or be full time students and have no insurance coverage of their own. For more information, contact Christine Stearns at ext. 260.
Abelow Says New Jersey Committed to Long-Term Budget Fix—Despite receiving more bad budget news the day before, New Jersey State Treasurer Bradley Abelow on May 5 said the administration is still committed to fixing New Jersey 's fiscal problems for the long-term and will not resort to wide use of budget “gimmicks” to plug a $4 billion budget deficit. Abelow spoke to NJBIA members at the final NJBIA Meet the Decision Makers breakfast. Despite revenue collections that are $300 million below projections, thereby adding to a budget deficit of about $4 billion, Abelow said the shortfall would be dealt with through additional budget cuts, not one-time revenue sources.
He added that the administration remains committed to improving the business climate in New Jersey. That's why it did not propose suspending net-operating-loss (NOL) deductions again. He cautioned, however, that some legislators are looking at NOL deductions as a way to increase revenues and encouraged businesspeople to speak out on the need for those deductions. “If our Legislature does not hear from you on this issue, then you will have to keep sending in the checks,” he warned.
The May 5 Meet the Decision Makers breakfast was sponsored by Altria Corporate Services Inc., AT&T, Bank of America, Fidelity Investments, Jersey Central Power & Light (a FirstEnergy Company), MyWireless.org, NJM Insurance Group/NJM Bank FSB and Verizon.
Bluhm Promoted to Assistant Vice President—NJBIA's Board of Trustees on April 29 promoted Sara Bluhm to assistant vice president for energy affairs and federal issues. Bluhm will head up NJBIA's efforts to make electricity and natural gas more affordable and handle key issues like alternative energy and the Regional Greenhouse Gas Initiative (RGGI). She also serves as executive director of NJBIA's research affiliate, the New Jersey Policy Research Organization Foundation (NJPRO), which prepares detailed analyses and research papers of key business policy issues. Bluhm joined NJBIA in 2000 and has handled environment, labor and other issues throughout her career. Sara Bluhm may be reached at ext. 204.
New Good Neighbor Awards Luncheon on Friday, June 2—NJBIA's 46th Annual New Good Neighbor Awards Luncheon will be held Friday, June 2, at the Sheraton at Woodbridge Place in Iselin . Join the biggest names in New Jersey 's commercial construction industry as NJBIA presents its New Good Neighbor Award to 12 of the State's newest and best development projects. Come meet our winners and network with many of the top developers, architects and builders in the State. Tickets are $70 per person. Tables of ten are available for $700. This outstanding networking event will begin with a reception at 11:45 a.m., lunch at 12:30, followed immediately by the awards presentations. For more information, contact Stacy Wichner at 609-393-7707, ext. 213, or register online. You can also reach a captive audience of the State's top builders and developers by becoming an event sponsor. Contact Sherry Esteves at ext. 219 for sponsorship information.
June 7 Seminar: Making Sense of Family and Disability Leave—This half-day program will help you sort through bewildering levels of leave regulations and show you how to avoid costly mistakes regarding length of leave, job protection, benefits and discrimination issues. Top employment law specialists will explain how to avoid the many legal pitfalls and will share the lessons they have learned from years of struggling with leave requests. The seminar will be held on Wednesday, June 7, at the Holiday Inn in Hazlet from 8:30 a.m. to noon. The cost is $109 per person for NJBIA members and $139 for nonmembers. To register, contact Alex Hollywood at 609-393-7707, ext. 262. You can also download the brochure or register online now.
Navigating New Jersey's Pay to Play Laws, Friday, June 23—Since January 1, doing business with State, county and local governments has become much more challenging, thanks to complicated new pay-to-play rules on campaign contributions by government contractors and vendors. This half-day seminar explains what you need to know to protect your contracts. Meet the government officials in charge of enforcing the new requirements. Cost is $109 per person for NJBIA members and $139 for nonmembers. To register, please contact Sherry Esteves at 609-393-7707, ext. 219, or register online.
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