The State must end its long-standing practice of diverting Unemployment Insurance (UI) Trust Fund revenues to pay for hospital charity care, NJBIA Senior Vice President Melanie Willoughby told the Senate Labor Committee in testimony June 8.
“We very narrowly avoided triggering a payroll tax this year, but any change in economic conditions could tip the balance,” she warned, adding that a new diversion of even a few million dollars in the Fiscal 2007 State budget could result in a UI tax hike for employers of $300-$600 million.
Willoughby urged the Legislature to support Governor Jon Corzine, who has proposed the first budget in 14 years that does not include a raid on the UI Fund to pay for charity care. She called the Governor's decision “a truly historic moment.”
“The Governor recognized that halting diversions will put us on the path to restore the strength of the Fund, assure the ability of the UI Trust Fund to pay benefits to workers who need them, and avoid further harm to our State's competitiveness and prospects for future economic growth,” Willoughby said.
Since 1993, a total of $4.7 billion in unemployment tax revenues have been diverted from the Fund to help balance the State budget and support charity care, leaving the current fund balance at a 20-year low.
NJBIA Urges Legislature to Protect Businesses' Interests in Reforming Eminent Domain Laws—A-3257 (Burzichelli), the first of what may be multiple bills reforming the State's condemnation laws, has been introduced in the Legislature. NJBIA Vice President David Brogan said the Association would like to see greater transparency in the condemnation process, increased protections for business-property owners, and increased compensation that takes into consideration the value of a business.
NJBIA supports the appropriate use of eminent domain to promote revitalization of blighted areas, but believes that improvements must be made to the law to prevent abuse of eminent domain power, Brogan said. The Legislature is considering rewriting New Jersey 's existing eminent domain laws, which make it much too easy for state or local government to condemn and “take” a property. The definition of “blight” is so broad that the State Public Advocate has said even the Governor's mansion could be taken. NJBIA wants to be sure businesses are protected in any rewrite of the law.
“While a majority of attention has been focused on the homeowner, we must not forget that business owners are equally affected by eminent domain,” Brogan said. “The intrinsic value of a business's location must be taken into account when a business property is condemned. In the past, this has not been done.” For more information, contact David Brogan at ext. 236.
New Rules and Oversight for School Administrative Costs—NJBIA supports two bills that would provide greater standards, oversight and accountability for public-school administrative salaries and benefits, NJBIA Director of Education Christopher Emigholz told lawmakers on June 9. In testimony before the Senate Education Committee, Emigholz said the Association supports S-1876 (Karcher) and S-1878 (Karcher), both of which seek to combat rising property taxes by controlling public-school administrative costs.
S-1878 would require that salaries and benefits for public school administrators fit a uniform standard and be approved by the NJ Department of Education. S-1876 would require the public disclosure of school administrator salaries and benefits, thus making school districts more accountable to the public for their spending. S-1876 was released from committee, but S-1878 was only discussed. Both bills are aimed at eliminating some of the extravagant salaries, expenses and waste detailed in a recent State Commission of Investigation report. For more information, contact Christopher Emigholz at ext. 201.
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 due to complicated new rules on campaign contributions by government contractors and vendors that can prevent you from getting or keeping government contracts. At this seminar, the government officials in charge of enforcement will explain what contractors and vendors need to know about the new laws.
You will also get practical advice from local and county government officials and vendors who are already dealing with the new laws. If you have a government contract of any kind or are looking to do business with government, register now and find out what you need to do to protect your business. This event will be held at the Hilton East Brunswick (right off Exit 9 of the NJ Turnpike) from 8:30 a.m. until noon. The 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.
RESERVE YOUR TEE TIME! Golf & Tennis Day, July 18—NJBIA will hold its 36th annual Golf and Tennis Day at the Forsgate Country Club in Monroe Township on Tuesday, July 18. Register now to enjoy one of the State's biggest and most fun business outings, attracting 300 golfers each year. The cost per person is $260 for golf and dinner, $145 for tennis and dinner, and $99 for dinner only. You can register by contacting Stacy Wichner at 609-393-7707, ext. 213, or you can download the fax-back event registration form now. To become an event sponsor, contact Sherry Esteves at ext. 219.
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