Despite skyrocketing health insurance costs, the Assembly Appropriations Committee on May 10 released a costly healthcare mandate bill that would force employers buying insurance in New Jersey’s regulated market to pay for unlimited coverage for behavioral disorders and substance abuse treatment. The bill, A-2512 (Gordon, Johnson)/S-807 (Vitale, Buono), now heads to the full Assembly for final legislative approval and could be scheduled for a vote at any time. Access NJBIA's Membership Alert to send a message opposing the bill to Assembly Speaker Joseph Roberts and your Assembly representatives. The last thing employers need is higher healthcare costs.

The legislation would greatly increase insurance costs on businesses that have already been hit with staggering increases. According to NJBIA's 2007 Health Benefits Survey, health insurance costs rose by an average of 11.3 percent for NJBIA members in 2006 and have increased 80 percent over the last five years. These soaring costs have forced many small businesses to drop health insurance coverage altogether. The survey showed that 82 percent of companies with two to 19 employees provided health insurance coverage in 2006, compared with 92 percent three years earlier.

Testifying against the bill, NJBIA Vice President Christine Stearns pointed out that for small employers and individuals, mental health and substance abuse treatment is already covered with reasonable limits to keep insurance more affordable. "New Jersey employers are facing a crisis, and not only is the Legislature doing little to help them, it's actually making the situation worse," Stearns said. "Legislators should be working to lower health insurance costs, not increase them."

Finally, the increased costs in this bill would result in thousands of people losing their health insurance altogether. They would receive no coverage for doctor’s visits, hospitalization, or mental health treatment. For more information, contact at ext. 260.

CEOs Present Diverse Outlooks for Key Industries at NJBIA-Merrill Lynch Economic Forum—A nationally known analyst from Barron's Weekly said New Jersey is well positioned to weather an economic downturn, while a panel of top executives offered outlooks for their respective industries that were as diverse as the companies they represented. It was all part of the NJBIA-Merrill Lynch Economic Forum, entitled CEO’s Speak Out. It featured a keynote address by Michael Santoli, author of Barron’s Streetwise column, and a panel comprised of Douglas Conant, President & CEO of Campbell Soup Company; William Marino, President & CEO of Horizon Blue Cross Blue Shield; and Larry Sorsby, CFO of Hovnanian Enterprises.

While the executives presented differing outlooks for their industries, they all agreed that high taxes and a poor business climate in New Jersey had hampered their growth. Marino, for instance, said he has seen an erosion of New Jersey's big advantage over other states in income and employment in high value industries like pharmaceuticals and technology. That is cause for concern because Horizon relies on a growing economy to find new customers. "We are in a business that is a zero-sum game," he explained. "The pie that is the source of our revenue is not growing."

For Sorsby, it's just the opposite as the short-term outlook is poor but the housing market's prospects are solid in the long term. Right now, Hovnanian and other home builders must weather a steep downturn in the housing market. He described the current housing slump as a "predictable cooling off period." Housing prices grew faster than income, and the market is now waiting for salaries to catch up. In the long-term, he said, demographics point to a robust housing market as US demand is expected to grow from 1.6 million housing starts per year to between 1.8 and 2.0 million.

The real threat is what Sorsby calls New Jersey's anti-development attitude—a regulatory environment that blocks the construction of thousands of homes and adds $40,000 to $80,000 to the cost of those that are built. "The anti-development attitude at State and local levels has prevented our industry from supplying the homes you need...," Sorsby said. "Unless we are successful in changing this environment, we believe the State's economy faces a grave threat."

Meanwhile, Conant said Campbell Soup is "in growth mode" and believes southern New Jersey is ideal for its corporate headquarters, which is located in Camden. In fact, Campbell's hopes to break ground soon on a major expansion. Its proximity to the greater Philadelphia area puts it near 88 colleges and universities, making it a great place to recruit talent. Having established itself there in 1859, Conant said Campbell's feels a connection to the city and believes it has a role to play in its recovery.

Nevertheless, high taxes and other costs could scare away other companies, particularly those that do not have the same connection to the area, Conant said. Even his company looked at other states for expansion. "To be responsible stewards of our company, we had to look at alternatives to New Jersey before we made a commitment to New Jersey. So there is a risk."

During his keynote address, Santoli pointed out that New Jersey had already undergone a shift from a manufacturing-based economy to a service-based economy that other states are still experiencing. Therefore, the State is in better shape to weather an economic downtown. "New Jersey, in a sense, has taken its medicine years ago," he said. He said he is particularly excited about growth in high value service jobs like financial services. The fast-growing economies of Europe, China, and Asia will drive up demand for the types of services New Jersey companies provide. He encouraged people to look at services as a potential export.

Taking Charge of Your Workers’ Comp Costs, Wednesday, May 16—Would you like to lower your company’s workers’ compensation insurance costs? Learn workplace safety strategies and get money-saving tips from other businesses that have lowered their workers’ comp costs. There’s still time to register for NJBIA’s Taking Charge of your Workers’ Compensation Costs seminar, which will be held from 8:30 a.m. until 12:30 p.m. on Wednesday, May 16 at the Pines Manor on Route 27 in Edison. The cost is $109 per person for NJBIA members, $139 for nonmembers. You can register online or contact at 609-393-7707, ext. 239.

New Good Neighbor Awards Luncheon, June 1—NJBIA's 47th Annual New Good Neighbor Awards Luncheon will be held on Friday, June 1, 2007, at the Sheraton at Woodbridge Place in Iselin. Awards will be presented to New Jersey businesses that have recently built or renovated outstanding commercial facilities.

A reception will be held at 11:45 a.m. followed by lunch and the awards presentation from 12:30 p.m. - 2:00 p.m. Tickets are $70 per person. Register online now, or contact at 609-393-7707, ext. 239, for more information. Sponsorship and advertising opportunities are available; call ext. 219.

ELC State Dinner, June 20—Don't miss New Jersey’s top two law enforcement officials, NJ Attorney General Stuart Rabner and US Attorney Christopher Christie, who will be the featured speakers at the State Employer Legislative Committee (ELC) Dinner sponsored by Bank of America. The dinner is one of New Jersey's top networking events, where you will get the chance to meet the State's top business leaders over dinner.

This event will be held at the Hyatt Regency Princeton. Cocktails are at 6:00 p.m. and the dinner is at 7:00 p.m. Register online now, or download our event flyer. For additional information, contact at 609-393-7707, ext. 219.

Nominate Your Company for an Award for Excellence by May 25—NJBIA annually presents its Awards for Excellence to member companies that excel in job creation, environmental protection, human resources management, and public service. Don't miss this opportunity to have your business's accomplishments recognized. The deadline for nominations has been extended to May 25, and all NJBIA member companies are eligible.

Nominations are being accepted in four categories: Job Creation, for contribution to the New Jersey economy through the creation of new jobs; Environmental Quality, for work in preserving or enhancing the quality of the environment in New Jersey; Outstanding Employer, for creative and forward-looking approaches to managing human resources; and Public Service, for outstanding service to the community. For more information, contact at 609-393-7707, ext. 239. You can also download the nomination forms.

Raise Your Visibility. Become an Event Sponsor—Golf & Tennis Day. NJBIA's Meet the Decision Makers series. 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 online or contact at 609-393-7707, ext. 219.