One week before the constitutional deadline requiring a balanced State budget, the Legislature on June 23 passed a Fiscal Year 2009 State Budget that would cut spending from the FY 2008 level by an unprecedented $600 million. It also would pay off $650 million in State debt and would not increase taxes. Governor Jon Corzine is expected to sign the measure.

"This is the most fiscally responsible budget to come out of Trenton in many years," NJBIA President Philip Kirschner said. "While we're not happy with all of the priorities within the budget, the plan cuts spending and pays down debt without increasing taxes on business."

Melanie Willoughby, NJBIA's senior vice president for Government Affairs, added that "NJBIA has been warning of the consequences of run-away government spending for years. This year, legislators heeded those warnings and took action to start to rein in spending."

The budget would appropriate $32.9 billion in State funds for Fiscal Year 2009, about $600 million less than the $33.5 billion FY 2008 budget the Governor signed last year. Legislators also passed separate bills that would modestly reduce benefits for newly hired State employees and provide early retirement incentives to permanently eliminate 2,000 State jobs. A constitutional amendment to require voter approval of all State debt was approved for the November ballot. On the downside, legislators voted to delay the elimination of the Transitional Energy Facilities Assessment, a "temporary" tax that was supposed to begin phasing out in January 2009. For more information, contact Art Maurice at ext. 247.

Workers' Compensation Bills Get Final Legislative Approval

A package of bills that would make some modifications to New Jersey's workers' compensation system received final legislative approval on June 23. Before passage, however, legislators adopted several NJBIA-backed amendments that would continue to protect the generous benefits and relatively low costs that are hallmarks of New Jersey's workers' compensation system. NJBIA believes New Jersey's current workers' compensation system works well and should be fundamentally maintained. Bills receiving final passage include:

• S-1915 (Sarlo, Cunningham)/A-3059 (Cohen, Egan), which would require employers to include proof of workers' compensation insurance coverage as part of their annual report to the State;

• S-1916 (Sarlo)/A-2968 (Egan, Cohen), which would provide an accelerated procedure to compel treatment when a physician indicates that delay would cause "irreparable harm or damage" to a worker in need of emergent care that is not being authorized by the employer or insurance carrier;

• S-1917 (Sarlo, S. Kean)/A-2969 (Cohen, Egan), which would clarify the authority of the Compensation Rating and Inspection Bureau (CRIB) and increase the membership by adding one member each from a Statewide business organization, a Statewide labor organization, and the public at large; and

• S-1918 (Sarlo, Madden)/A-2970 (Egan, Cohen), which would authorize the Insurance Fraud Prosecutor to prosecute employers who fail to provide required workers' compensation insurance.

The measures await consideration by Governor Jon Corzine. For more information, contact John Rogers at ext. 209.

Legislators on June 23 gave final legislative approval to a bill, supported by NJBIA, which would protect the permits and approvals of projects delayed by the economic downturn. Known as the Permit Extension Act, A-2867 (Greenwald, Malone) and S-1919 (Sarlo, Van Drew) would extend until December 31, 2010, the expiration date of all State and local government approvals issued since January 1, 2007. The permitting process in New Jersey is extremely time-consuming and expensive, often taking several years and hundreds of thousands of dollars to complete. It makes no sense to force developers to navigate the entire time-consuming permitting process again because of an arbitrary deadline. For more information, contact Art Maurice at ext. 247.

Pro-Manufacturing "Buy New Jersey" Bill Clears Assembly

Legislation that would provide a preference in State-funded government contracts for goods manufactured in New Jersey passed the Assembly on June 23. A-1479 (Burzichelli, Greenwald) also would authorize local governments to provide the same preference, even when they are not using State funds. NJBIA strongly supports the measure and has included it in its Manufacturing Counts! Agenda for Manufacturing Renewal in New Jersey. For more information, contact John Rogers at ext. 209.

NJBIA-backed legislation that would allocate more funding for business-related energy conservation projects passed the Assembly on June 23. A-2705 (Chivukula) would provide grants for energy efficiency audits and improvements and onsite electricity generation. The bill would allocate $60 million for on-site generation from the existing Retail Margin Fund, with the remaining balance, approximately $30 million, being allocated for energy audits and efficiency projects. The Retail Adder Fund is financed through an assessment on large, hourly priced electricity bills. For more information, contact Sara Bluhm at ext. 204.

Golf & Tennis Day, with New Shotgun Scramble Format, Tuesday, July 15

One of NJ’s best business outings just got better with a new shotgun scramble format. Download the registration form, or contact Stacy Wichner at 609-393-7707, ext. 213, for more information. To become a sponsor, contact Sherry Esteves at ext. 219.

Starting in July 2009, employees will be able to take six weeks of paid family leave each year for the birth or adoption of a child or to deal with a family member’s "serious health condition." Hear directly from attorneys Katherin Nukk-Freeman of Nukk-Freeman & Cerra, P.C. and Kathleen M. Connelly of Lindabury, McCormick, Estabrook & Cooper, P.C. They will provide you with details about this new law, including: when an employee is eligible to take paid leave, crucial deadlines, your obligations as an employer, and how to make sure your workplace is in compliance. Register online now, or contact Stacy Wichner at 609-393-7707, ext. 213, for more information. To become a sponsor, contact Sherry Esteves at ext. 219.