Senate leaders will call all Senators back to Trenton early to vote on final passage of a paid leave mandate impacting all businesses. The session will be held on Monday, April 7. The bill, A-873 (Albano), would provide up to six weeks of paid family leave for employees at all businesses. The Senate was expected to take final action on March 17, but a constitutional requirement that revenue-raising bills originate in the Assembly delayed the vote. (The bill increases payroll taxes on workers by $104 million.) NJBIA has fought the bill every step of the way.

NJBIA President Philip Kirschner said, given the weak economy and the government’s fiscal mess, it was incredible that the Senate would attempt to give final passage to such an expensive program. "New Jersey cannot even pay for the programs it has now, yet the Senate may create a huge new program," he said.

Senior Vice President Melanie Willoughby urged employers to contact members of the Senate who voted "yes" on a similar bill in February.

"The Senate passed paid family leave by only two votes," Willoughby said. "Since then, Governor Jon Corzine has proposed massive spending cuts and our economy has gone downhill. If we can convince just two of those Senators that now is not the time for a massive new mandate on businesses, we can prevent paid leave from becoming law." Contact Senators who voted "yes" last time and tell them to vote "no."

Corzine Proposes Plan to Avoid $350 Million Payroll Tax Increase

Governor Jon Corzine on April 1 proposed putting $260 million into the Unemployment Insurance (UI) fund to avoid an automatic $350 million payroll tax increase on employers. Federal law requires the State to maintain a minimum balance in its UI fund, and if the balance dips below that level on March 31 of any year, employers’ UI contributions increase automatically on the following July 1. To prevent a UI tax increase this year, Corzine proposed moving the trigger day to June 30 and infusing the UI fund with cash from the State’s general fund surplus.

This welcome infusion would repay some of the money that had been diverted from the fund since 1993. Between 1993 and 2006, $4.7 billion in UI contributions were diverted to help balance past State budgets. Corzine has made the restoration of the fund a priority. His Administration has never authorized or approved a UI diversion.

Spending Cuts, Not Tax Increases, Will Define FY 2009 Budget, Government Leaders Say

Whatever form the upcoming budget ultimately takes, it will not include any new taxes and it will cut spending. That’s according to five influential policymakers whose job it is to craft a spending plan for fiscal year 2009, which begins July 1. Speaking April 2 at NJBIA’s Meet the Decision Makers program, State Treasurer David Rousseau, Barbara Buono, chairwoman of the Senate Budget and Appropriations Committee, Louis Greenwald, chairman of the Assembly Budget Committee, and the two Republican budget officers, Senator Leonard Lance and Assemblyman Joseph Malone, agreed the time was ripe to rein in out-of-control State spending.

"Governor (Jon Corzine) made the decision to turn things around," Rousseau said, describing how the Administration has approached closing a $3.2 billion structural deficit. "That’s what this budget is, a turning point." Greenwald, Lance, Malone and Rousseau also assured the group that tax increases were not in the mix this year. (Buono had to leave for a budget hearing before the tax question was brought up.) "There will be no new taxes," Greenwald said. "There will be no new fees."

Earlier, Buono said the budget offered an opportunity to look at how New Jersey can do things differently. She said she planned to look at what she called "procurement integrity" to make sure taxpayers were getting the best value from State contracts with vendors, and to revisit some of the property tax reform recommendations that were shelved last year. "We may not agree on everything, but one thing is for sure: (Corzine) is changing the dialogue, and he is changing the framework of the dialogue."

Lance vowed to fight against any attempt to increase borrowing without first getting voter approval, pointing out that 85 percent of State borrowing has occurred in the last ten years. "Never again should we borrow money without voter approval," he said. Lance is sponsoring a Constitutional amendment to require voter approval of all borrowing.

Malone added that legislators had to fix the budget this time because the public is fed up. He said he could see it in the faces of the audience. "You're totally astonished at the dysfunction of the State of New Jersey," Malone said. "You cannot understand how a state can be this fouled up."

NJBIA Urges Action on State Economic-Stimulus Package

As it confronts deep budget cuts, the Legislature should pass economic-stimulus legislation to create revenues and grow the economy, NJBIA First Vice President Art Maurice said April 2. Maurice testified before the Senate Budget and Appropriations Committee at a hearing on economic growth.

Specifically, Maurice urged legislators to tackle overregulation, eliminate taxes that discourage job growth, and ratchet up the State’s job-creation incentive programs. He said legislators should impose a moratorium on new regulations from the NJ Department of Environmental Protection (DEP). In 2007 alone, DEP proposed more than 2,000 pages of new or expanded regulations, many of which have been criticized as failing to balance environmental protection with the need for economic growth.

Maurice also pointed out that New Jersey’s current Corporation Business Tax (CBT) structure punishes businesses for investing and creating jobs in New Jersey. It bases the tax on a company’s New Jersey sales, operations and employment. A company with a physical presence and a workforce in New Jersey pays higher taxes than a company that simply sells its goods here, but creates jobs in other states. Legislators should level the playing field for New Jersey companies by enacting single-sales-factor reform, which would base the CBT for all businesses solely on their share of New Jersey sales.

Survey: NJ Small-Business Advisor Seeks Input

The NJ Small Business Development Centers (NJSBDC), a business advisor that offers counseling to small and medium-size companies, is seeking feedback from NJ businesses on its programs. The information will be used by a Rutgers University team to make recommendations to help market and develop the NJSBDC’s business-counseling programs. Take survey.

NJBIA's Legislative Briefs Available Online

Need more information on the issues impacting your business? NJBIA prepares detailed Legislative Briefs on bills impacting business that are pending in the State Legislature, as well as Issue Briefs and Regulatory Briefs on other priority issues. Visit our Web site to view the full list of available Briefs, or contact NJBIA Senior Vice President Melanie Willoughby at ext. 205 for more information.

Meet NJ's Top Government Leaders at 3 Special Briefings

NJBIA will bring together top Administration officials, along with legislative leaders, for insightful briefings at the Forsgate Country Club in Monroe Township on three of the biggest issues impacting your business operations, Healthcare Reform - April 22, Energy - May 16, and Environmental Regulation and Legislation - October 17.

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.