Legislation that would make health insurance in New Jersey even less affordable and accessible was approved by the Senate on December 4. The bill, S-807 (Vitale, Buono), would require that insurance plans sold in New Jersey provide unlimited coverage for the treatment of behavioral problems and substance abuse, forcing many employers to pay higher premiums. The bill is now in the Assembly Appropriations Committee.

NJBIA is vehemently opposed to this bill. With health insurance costs rising at three times the rate of inflation, legislators should be looking for ways to make insurance more affordable, not more expensive. Treatment for behavioral problems and substance abuse is already covered under existing insurance plans, albeit with reasonable limits to ensure broader access. If enacted, this bill would result in thousands of people losing their health insurance coverage altogether as insurance premiums become too expensive. In other words, some people will get expanded coverage while others will lose their hospitalization, their drug coverage, and everything else.

New Jersey companies are already struggling to pay for the employee health benefits they provide now. According to Families USA, health insurance costs in New Jersey rose 80 percent between 2000 and 2006, with the cost of an average family plan rising to $13,620 a year per employee. Legislators should work to reduce the cost of health insurance, not raise it as the Senate has incredibly done. In light of the dismal ratings employers gave New Jersey's business climate in NJBIA's 2007 Business Outlook Survey, legislators should reject bills like S-807 and work to make health insurance more accessible by making it more affordable. For more information, contact Christine Stearns at ext. 260.

NJBIA Backs Cost-Saving Measures as Legislators Ready Property Tax Reform Vote—After marathon committee hearings on dozens of property tax reform bills, most of which are supported by NJBIA, legislators worked into the night December 7 preparing for floor votes that could come as early as next week. A last minute request by Governor Jon Corzine, however, has left the fate of public employee pension and health benefits reform up in the air. Corzine has asked that most of the provisions of the bills be removed so that he can negotiate them directly with the unions.

The bills that received hearings on December 7 embody many of the recommendations of the four joint legislative committees studying property tax reform. NJBIA supports many of the recommendations because they offer the potential for cost efficiencies and savings that may lower the property taxes business owners pay.

The Joint Committee on Consolidation and Shared Services held hearings on ten measures, all supported by NJBIA. In written comments, Senior Vice President Melanie Willoughby singled out two bills in particular: A-4 (Roberts)/S-42 (Smith), which would make it easier for local government to share services by simplifying the existing patchwork of laws that govern shared services and consolidation; and A-15 (Wisniewski)/S-38 (Smith), which would create the Local Unit Alignment, Reorganization, and Consolidation Commission to recommend regionalization of local services and provide financial incentives for regionalization and consolidation. “Your body of work and thoughtful analysis will serve as the first step to prove that New Jersey taxpayers can still be well served with more efficient and quality service, but with fewer than the 1,689 government units we have now,” Willoughby told the committee.

Testifying before the Joint Committee on Public Employee Benefits Reform, NJBIA First Vice President Arthur Maurice said the Association supports the reforms in S-40(Codey)/A-2 (Pou, Giblin), which would rein in the cost of public employee health benefits and reform the pension system. “New Jersey will never get away from annual budget deficits nor see long-lasting property tax reform until public employee benefit costs are brought under control,” Maurice said. At the present rate of benefit spending growth, public employee health, pension and post-retirement medical benefits will cost more than $6.6 billion in 2010, compared to “only” $2.4 billion last year. The fate of that bill is unknown, as Governor Corzine requested that the legislature not act on many of the provisions because they are part of contract negotiations between the Administration and public employee unions. As originally written, S-40/A-2 would have required using 401k pension plans for some employees, capped the amount of sick time that can be accrued at retirement, and increased the retirement age for new employees.

On education, NJBIA supports both A-5 (Conaway, Stack)/S-44 (Adler) and AJR-10 (Conaway, Stack)/SJR-59 (Adler), which would enhance accountability for the largest segment of local property taxes—spending for local public schools. The two measures would give the State education commissioner greater authority to curtail certain school spending decisions and provide standards for travel and expenses by school personnel. “With the property tax crisis in New Jersey, every effort needs to be made to ensure that all education spending is necessary and done effectively and efficiently,” NJBIA director Christopher Emigholz told the Joint Committee on School Funding Reform in written comments. Additionally, NJBIA supports A-7 (Conaway, Stack)/S-43 (Adler), which would eliminate a number of outdated mandates—such as commemorating Commodore Barry Day—that do nothing to improve school quality or efficiency.

Finally, Maurice praised the Joint Committee on Constitutional Reform for what it did not recommend: shifting a greater share of the property tax burden onto businesses. Some policymakers had suggested altering the uniformity or "fairness" clause of the New Jersey State Constitution to allow business property to be taxed at a higher rate. The committee specifically recommended not changing the uniformity clause, which ensures that business and residential properties are taxed at the same rate. To learn more about how property tax reform will impact your business, visit the property tax section of our Web site.

Last Chance to Register! Hear Corzine, Menendez Speak Dec. 12 at Policy Forum—Governor Jon Corzine and US Senator Robert Menendez will be the keynote speakers at NJBIA’s December 12 Public Policy Forum. They will be joined by four of the State's top legislative leaders, seasoned political observers and experts on the New Jersey economy. Don't miss this high-level conference that brings together New Jersey's top leaders in business and government for a thorough and lively discussion of current issues impacting your business. Take advantage of this great opportunity to network with fellow business colleagues!

The event will be held from 7:45 a.m. until 2:00 p.m. at the Sheraton at Woodbridge Place in Iselin (Exit 131A, Garden State Parkway). The cost is $170 per person for NJBIA members and $230 for nonmembers. Breakfast and lunch are included. To register, contact Stacy Wichner at 609-393-7707, ext. 213, or register online now.

New Good Neighbor Call for Nominations, Deadline February 5—The 47th Annual New Good Neighbor Awards competition recognizes companies that have worked to bring about an improved business climate in New Jersey by building or renovating a commercial facility. Winners will be chosen based on economic benefit and job creation, architectural merit, and community involvement. The nominating deadline is February 5. Go here for more information.

Raise Your Visibility. Become an Event Sponsor—The Awards for Excellence Dinner. NJBIA's Public Policy Forum. First-rate events like these offer your company an excellent opportunity to reach their target audiences and heighten their visibility as an event sponsor. Learn more about becoming an NJBIA sponsor by contacting Sherry Esteves at 609-393-7707, ext. 219.