The final vote on legislation providing up to six weeks of paid family leave for employees at all businesses has been postponed. The Senate was expected to take final action on March 17, but the vote was delayed by a constitutional requirement that revenue-raising bills originate in the Assembly.

NJBIA strongly opposes the measure. Employers should contact their State senators and tell them to vote "no" on SA-873 (Albano, Oliver). Visit NJBIA's Membership Alert to contact your senator.

NJBIA and its members have fought this bill every step of the way. We have testified before legislative committees and communicated directly with all 120 legislators about the impact this job-killing mandate will have on all businesses. "Legislators cannot say they didn't hear from the business community on this issue," NJBIA Senior Vice President Melanie Willoughby said of NJBIA's exhaustive campaign efforts. "This makes it all the more frustrating that legislators did not heed the opposition by thousands of employers."

NJBIA President Philip Kirschner said news of an increasing budget shortfall requiring spending cuts beyond the $2.7 billion that Governor Jon Corzine has proposed should put any new benefits program on hold. "It's incredible that while the State cannot fund the programs it already has, legislators want to create a huge new program and hire dozens of new government employees," Kirschner said. Paid family leave would expand the temporary disability insurance program, requiring a loan of $25 million from temporary disability funds to cover startup costs, and $5 million to $7 million a year in administrative costs. For more information, contact at ext. 209.

NJBIA Backs Budget Cuts and Spending Reforms

Reducing overall spending is a necessary first step in breaking the cycle of ongoing budget shortfalls and financial instability that have plagued New Jersey for the past 15 years, NJBIA First Vice President Art Maurice told the Senate Budget and Appropriations Committee on March 20. Maurice praised the budget proposed in February by Governor Jon Corzine because it tackles the State’s structural budget deficit (the difference between recurring tax revenues and ongoing expenses) by cutting spending.

"While Governors have come and gone, the one constant in Trenton has been the annual hunt for new money to fund State spending that we simply could not afford," Maurice told the committee. "So, Governors have resorted to annual gimmicks to balance the budget, such as diverting nearly $5 billion in unemployment insurance trust fund revenues, issuing $14 billion in long-term debt, and raising business, income and sales taxes. Despite these extraordinary efforts, our structural deficit today is little changed."

"Reducing overall spending, as the Governor proposes, is a necessary first step in breaking the cycle of structural deficits. While reasonable people can question individual budget cuts, and certainly this Committee will make budget changes, we urge you to retain the Governor’s goal of a budget that reduces overall spending below current levels," Maurice said.

NJBIA also supports the constitutional amendment sponsored by Senators Leonard Lance and Ray Lesniak (SCR-39), which would prevent State authorities from increasing taxpayer-supported State debt without voter approval. NJBIA also supports the Governor's proposal to limit future spending increases to growth in recurring revenues, which should be done through a constitutional amendment as well. For more information, contact at ext. 247.

Incentives, Not Mandates and Regulation, Are the Best Way to Reduce Carbon Emissions, NJBIA Says

In order to reduce greenhouse gases without hurting the economy or putting New Jersey businesses at a competitive disadvantage, New Jersey should provide financial incentives to commercial and industrial electricity users for renewable-energy projects and energy efficiency upgrades, Assistant Vice President Sara Bluhm said March 19. Bluhm testified before the NJ Department of Environmental Protection (DEP), the NJ Board of Public Utilities (BPU) and the NJ Economic Development Authority (EDA) on ways to reduce greenhouse gas emissions as part of the Regional Greenhouse Gas Initiative (RGGI).

As part of RGGI, the State will auction carbon credits to electricity producers and use the money collected to pay for clean-energy projects, such as solar power, wind power, and energy efficiency upgrades. Bluhm said the best approach is to provide financial incentives to help private-sector businesses overcome the high initial costs of alternative energy projects. "We need to protect the environment, but we also need to protect our fragile economy," Bluhm said. "The best way to do that is to encourage and assist, not mandate and regulate. Renewable energy and increased efficiency make good business sense. Employers will do anything they can to reduce energy costs; the problem is paying for the technology upfront."

Bluhm noted that private-sector investments in clean energy have a proven track record of reducing greenhouse gases significantly. In 2006, the State’s existing Clean Energy Program budgeted $79 million for residential efficiency programs, while budgeting only $39 million for commercial and industrial projects. Yet, the 2006 Clean Energy Program Report showed that commercial and industrial programs reduced carbon emissions by 67,969 metric tons, compared to residential programs, which reduced them by only 19,032 metric tons. For more information, contact at ext. 204.

Laws of 2006-2007 Now Available

In the last legislative session, New Jersey enacted more than 80 laws impacting the business community in one way or another. NJBIA made available a summary of the laws of the 2006-2007 Legislative Session that impact businesses. For more information, contact at ext. 205.

Meet NJ’s Transportation Decision Makers, March 26

Get the latest on the Governor's fiscal restructuring plan and transportation funding from Transportation Commissioner Kris Kolluri, Assembly Transportation Committee Chairman John Wisniewski, Port Authority of NY and NJ First Deputy Executive Director Susan Bass Levin, and members of the Senate Transportation Committee. Register online now, or contact at ext. 213 for more information.

Support the NJ Business Hall of Fame Gala, April 17

The NJ Business Hall of Fame (NJBHOF) 2008 Gala, to be held April 17 at The Mezzanine in Newark, will honor three business leaders, including NJM Insurance Group President and CEO Anthony G. Dickson. Please support this special event by buying a ticket, being a sponsor and/or purchasing an advertisement. Call Dawn Schwartz at 973-533-1133 for more information.