Bolstering small businesses, creating a single-stop for businesses navigating the State’s bureaucracy, and making the State more business-friendly are some of the recommendations in Governor Jon Corzine’s plan for improving New Jersey’s economy.  The Administration’s plan covers a wide array of issues, from the high cost of health insurance and workforce education to strengthening government contracting opportunities for small businesses and expanding the ports.

In releasing the report on September 7, Corzine announced the creation of a new Web site to centralize State-agency information for businesses.  Businesses can also call a toll free number, 1-86-NJFIRST-9 (1-866-534-7789), and get personalized assistance.  One of the biggest problems facing businesses is navigating the State’s sprawling government, whether they are new enterprises looking to expand in New Jersey or existing establishments that need some help.  Corzine said the Web site is the first step in improving businesses’ access to information.

The report is a comprehensive plan that, for the first time in years, identifies the problems that have hampered New Jersey’s private-sector economy.  Prepared by Gary Rose, chief of the Office of Economic Growth, the report picks up on key issues facing employers.  Many of the problems identified in the report have long been cited by NJBIA and its members, and NJBIA has provided detailed policy initiatives for addressing many of them. 

Corzine said the State would focus on six economic growth priorities.  They are:

• market New Jersey for economic growth by partnering with the State's businesses and helping them to grow and prosper;

• develop a world-class workforce by assisting the State's students and job seekers to obtain the skills and education needed in a competitive global economy;

• promote sustainable growth with a particular emphasis on the State's cities and make strategic infrastructure investments to support economic growth;

• nurture the development of new technologies;

• encourage entrepreneurship and the growth of small, minority-owned, and women-owned businesses; and

• enhance the global competitiveness of New Jersey's businesses.

For more information, contact Art Maurice at ext. 247.

NJBIA Calls on Legislators to Support Fairness Clause, Oppose Property Tax Discrimination—NJBIA asked legislators looking at ways to reform New Jersey’s property tax system to take any ideas about changing the fairness clause of the New Jersey State Constitution off the table.  Testifying before the Joint Legislative Committee on Constitutional Reform and Citizens Property Tax Constitutional Convention, NJBIA First Vice President Art Maurice said changing or eliminating the fairness clause would usher in widespread tax discrimination against business and hurt the State’s business climate.

The fairness or “uniformity” clause protects property owners from tax discrimination by requiring local governments to tax all properties, whether commercial or residential, at the same rates.  Removing or altering this clause would allow municipalities to tax commercial properties at much higher rates, thereby shifting more of the property-tax burden onto employers.  One recent proposal would increase business-property taxes in one year by a whopping $2 billion, a 40 percent increase.  A tax increase of this magnitude would be devastating to business property owners and renters.

Newspapers and other groups have joined NJBIA in criticizing any move to alter the fairness clause.  The legislators on the committee could send a strong pro-economic development message by taking the issue of changing the fairness clause off the table and by concentrating on reducing government spending, which is what drives property taxes higher in the first place. 

The committee is one of four special legislative committees created in July to study the issues confronting New Jersey’s highest-in-the-nation property taxes and recommend legislative reforms that can be enacted before the end of the year.  For more information, contact Art Maurice at ext. 247.

New Law Ensures Contractors Are Paid Quickly—Clients would have to pay contractors and subcontractors within 30 days after their billing date or be liable for the full amount of the payment plus interest, under a new law enacted September 4.  Governor Jon Corzine recently signed legislation, S-1726 (Sweeney, Madden)/A-3174 (Caraballo, Watson Coleman), which is meant to ensure that contractors get paid in a timely fashion for their work on construction projects.  The law applies to both public and private contracts.  Clients have 20 days to dispute any part of the payments, but must notify the contractor in writing how much is being withheld and the reasons why.   Any contractor or subcontractor who is not paid as required is allowed to suspend construction, after giving seven calendar day’s written notice, without penalty for breach of contract if certain conditions are met.  For more information, contact John Rogers at ext. 209.

Senate President Codey, Assembly Speaker Roberts on Sept. 27—Hear directly from New Jersey's two most powerful legislative leaders, Senate President Richard J. Codey and Assembly Speaker Joseph Roberts, at a special NJBIA breakfast briefing, Meet NJ's Top Two Legislative Leaders, which will be held on Wednesday, September 27, at the Forsgate Country Club in Monroe Township (just off exit 8A of the NJ Turnpike) from 7:30 a.m. until 10:00 a.m.  Plenty of time will be set aside to answer your questions. Don't miss this informative networking event.   The cost is $69 per person for NJBIA members and $105 for nonmembers. For additional information contact Katie Wittkamp at 609-393-7707, ext. 239, or register online.

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