Governor Jon Corzine said his policies have positioned New Jersey to emerge from the global recession stronger than other states, while challenger Chris Christie pledged to rein in taxes and reduce the regulatory burden on businesses. These were the messages the Democratic and Republican candidates for Governor presented to 400 businesspeople at NJBIA’s State Employer Legislative Committees (ELCs) Dinner on June 16. It was the candidates’ first joint appearance since capturing their parties’ nominations in the June primary.

The dinner was sponsored by the NJ Credit Union League, whose president and CEO, Paul Gentile, served as dinner chair. The event also marked the 50th anniversary of the ELCs existence. ELCs were started in 1959 as the grassroots affiliate of NJBIA. Today, there are 18 ELCs representing all 21 New Jersey counties. ELC members hold informal monthly meetings with local legislators and other government officials.

Corzine kicked off the night by pointing to several probusiness initiatives he spearheaded, including Corporation Business Tax reforms that have saved businesses hundreds of millions of dollars in taxes; replenishing the Unemployment Insurance fund to save businesses $800 million over two years; and new financial incentives for businesses to create jobs and undertake capital improvement projects. "I think we have been working and making those right decisions for the last three and a half years," Corzine said. "And I believe we will come out of this recession sooner and stronger in New Jersey than most of the rest of the country."

Christie said the State was paying the price for the high tax and regulatory burden it has imposed on the business community, and he pledged to cut taxes and reduce regulations to get the economy going again. "We saw in the '80s and the '90s what lower taxes, less regulation would do for the business community in this state," Christie said. "We have a great business community in this State... but we are pricing you out of the market." He said that as Governor, he would do what he did as US Attorney - surround himself with good people and stay true to his principles.

Health Insurance Tax Increase Should Be Rescinded

A tax amnesty program that brought in $600 million should be used to eliminate a planned hike in taxes on health insurance, NJBIA said June 18. The State's tax amnesty program, which was expected to bring in $200 million actually delivered more than $600 million, and tax payments are still being counted. Legislative leaders delayed a final vote on the budget so it can be amended next week. A final vote on the $29.8 billion budget is now expected June 25.

The 45-day tax amnesty program results brought some welcome news on State revenues. NJBIA believes some of the added revenues should be used to eliminate a $75 million tax increase on health insurance, dental, group accident and other plans. With health insurance costs rising at three times the rate of inflation and the number of New Jerseyans who cannot afford health insurance growing, eliminating this added tax burden should be a priority. For more information, contact Art Maurice.

Bill Allowing Labor Commissioner to Revoke Business Licenses Released from Committee

The Commissioner of Labor could suspend or even permanently revoke various licenses needed by businesses if those businesses have violated State labor laws. S-2773 (Sweeney, Madden) would apply to businesses that fail to pay wages, benefits or taxes or fail to properly maintain records or simply file certain reports with the NJ Department of Labor & Workforce Development (LWD).

NJBIA opposes the bill. Remedies are in place to penalize companies that do not follow New Jersey's wage and hour laws. But to suspend and even permanently revoke a business's license and effectively shut down their operations for technical paperwork violations is counterproductive to improving New Jersey’s business climate. For more information, contact Christine Stearns.

New Financial Incentives To Stimulate Business Investment Released

A new economic stimulus bill that would provide tax and fee reductions and financial incentives to stimulate large-scale, private-sector economic development projects was released by the Assembly Appropriations Committee on June 15. The bill reforms several existing economic development programs by:

• Creating a new tax increment financing program (the Economic Redevelopment and Growth Grant program);
• Reforming and expanding the Technology Business Tax Certificate Transfer and Urban Transit Hub Tax Credit (UTHTC) programs to make it easier to qualify;
• Allowing for public-private investment partnerships at the State's colleges and universities; and
• Establishing a moratorium on the collection of the 2.5 percent nonresidential development fee by the NJ Council on Affordable Housing (COAH).

NJBIA supports the measure, which is expected to receive consideration in both the Assembly Budget and Senate Budget and Appropriations Committees on June 22. For more information, contact Art Maurice.

Stimulate Your Bottom Line with Government Contracts, July 7

Tens of millions of dollars in contracting and financing opportunities are being made available to New Jersey businesses under the federal stimulus program and through State and local governments. At this seminar, July 7 at the Forsgate Country Club in Monroe Township, you will find out who to contact and how to access contracts, projects and funds being made available by federal, State and local governments.

Cost to attend is $129 per person for NJBIA members and $169 for nonmembers. Register online now, or for more information, contact Katie Wittkamp at 609-393-7707, ext. 239. Contact Sherry Esteves at ext. 219 to become a high-visibility sponsor.