New Jersey Chamber of Commerce on National Health Care Reform

New Jersey Chamber of Commerce on National Health Care Reform: There is Room for Common Ground and Areas we Vehemently Oppose

When the New Jersey Chamber of Commerce launched its Platform for Progress Healthcare Coalition four years ago its main objective was to improve New Jersey's health care system to ensure that it is accessible, accountable, and affordable.

Congress and the Obama Administration are considering sweeping reforms of the health care system to be completed in an extremely compressed timeframe.

Where does the New Jersey Chamber of Commerce stand on this issue?

The Chamber's Board of Directors believes there is common ground - and many of the Platform for Progress objectives are being addressed. We have long advocated for expanding the use of electronic medical records and other healthcare IT; offering prevention and wellness programs that make employees healthier; and pay-for-performance, which rewards healthcare providers for positive outcomes.

Sen. Ted Kennedy's bill has some positive aspects not called for in the Platform for Progress agenda, such as health care Gateways (allowing one-stop shopping for health insurance) and guaranteed coverage without regard to preexisting conditions.

While the number one issue for consumers may be the elimination of the tax-free nature of health insurance premiums, the Chamber Board has serious concerns about four other aspects of the reform agenda that may endanger millions of jobs and hurt companies of all sizes - the creation of a "public option" insurance plan, an employer mandate, a minimum benefits package, and changes to The Employee Retirement and Income Security Act (ERISA).

Of most concern to the members of the Chamber Board is the creation of a new government run insurance plan that would compete unfairly with private insurance. One recent study by the Lewin Group, a national health care consulting firm, suggested that 131 million Americans would drop their current coverage to take advantage of this plan. This would lead to a huge new liability for the government, and there would be tremendous pressure to bring costs under control. We instead support a system where patients and their doctors make decisions related to the delivery of care. We oppose the public option.

An employer mandate would cripple small companies that are not able to afford health insurance. As a result, they may have to lay off employees or invest less in the business. Employers nationwide already voluntarily pay $500 billion annually for health benefits for employees.

The U.S. Chamber of Commerce has testified before Congress that a minimum benefits package might force all health plans to be expensive "Cadillac" plans. Health reform needs to be affordable, or it will not be successful.

Finally, ERISA allows large companies to offer health benefits to their employees that are specifically designed to meet their needs. We oppose any change to the ERISA preemption so that employer provided benefits continue.

The number of people who are provided insurance through small New Jersey companies - firms with between two and 50 employees - has shrunk by 111,667 in the past 10 years, including a staggering 36,000 in the last year, according to the state Department of Banking & Insurance. Today, at least 1.3 million state residents are uninsured and the numbers are growing. The lack of affordability has resulted in roughly half of the state's uninsured being full time workers.

On a national level our health care crisis has resulted in 50 million uninsured. Both the public and private sectors are being strangled by spiraling costs that are crippling our economy in New Jersey and nationwide. The Obama administration and Congress are addressing this extremely complex issue quickly, with little time for citizens to digest what is happening. This is alarming because, according to the Congressional Budget Office, the tab for health care reform could cost Americans $1.6 trillion over 10 years.

Everyone agrees the health care system has problems. Solutions need to be identified and vetted in a cautious and thoughtful way. After all, decisions made will impact 17% of our economy. Whether a full understanding of the impact on patient care, viability of our hospitals and cost to the nation can be demonstrated over a single summer remains to be seen. As our representatives in Congress weigh alternatives, it's appropriate to reference the Hippocratic oath; do no harm.

New Jersey 29th in Happiness Index

Source: MainStreet.com

The Happiness Index, which looks at household income, debt, employment and foreclosures, is a fresh take on the old and tired Misery Index, made popular in the 1970s. The Misery Index takes into account unemployment and inflation rates and seeks to identify the most financially miserable places to live. The Happiness Index, on the other hand, is all about which states are best weathering the current economic storm.

Click here for the Index.

The Fight For Private Union Elections Is Not Over

Employee Free Choice Act removes your choice for secret ballots

This bill would undermine long standing principles of workplace democracy and fairness and result in employees having less ability to determine if they wish to be represented by a union. It does so by allowing unions to collect employee signatures in public-or so-called "card check"-and do away with the secret ballot process. While the the Employee Free Choice Act is being promoted by organized labor as labor law reform to level the playing field, it does not represent "reform" in any sense of the word. Rather, the legislation will radically restructure 60 years of carefully crafted labor law balances that have served both unions and employers well for many decades.

This is a battle that is a long way from being over and we need you to act today.

Urge your Senators and Members of Congress to vote against the Employee Free Choice Act.

Click here to urge your U.S. Senators and Members of Congress to vote against the Employee Free Choice Act

LUARCC RELEASES MUNICIPAL EFFICIENCY REPORT

The state's Local Unit Alignment, Reorganization and Consolidation Commission (LUARCC) has released its 2009 report, “A Quest for Efficiency in Local Governance,” which meets the group‘s statutory reporting requirement as set forth by the New Jersey Legislature. Members of the Chamber's Platform for Progress Government Reform Coalition actively lobbied for the creation and staffing of the Commission, and will spend the next few days reviewing the recommendations outlined in the report. Initial highlights include findings that “…seem to indicate the potential for savings in a vast array of capital dependent and unique services such as emergency communications and municipal courts.” In addition, the report highlights the difficulty associated with looking for a one-size fits all approach, and suggests a focus on service delivery options “…that might achieve real cost-savings without sacrificing quality.”

If you are interested in seeing a copy of the report, please contact Chamber Lobbyist Jim Leonard at jim@njchamber.com. The report is not currently available on the LUARCC website.

Employment in NJ Fell in February; Unemployment Rate at 8.2 Percent

Employment in New Jersey was down sharply in February, the 13^th consecutive monthly decline. The state unemployment rate moved above the national rate for the first time since October 2006. The New Jersey unemployment rate rose by 0.9 percentage point from January’s 7.3 percent to 8.2 percent in February, just above the U.S. rate of 8.1 percent.

According to preliminary estimates from the New Jersey Department of Labor and Workforce Development’s monthly survey of employers, nonfarm wage and salary employment in the Garden State decreased by 19,700 jobs in February to a total of 3,968,100. Job contraction occurred in both the private (-19,200) and public sectors (-500) of the state’s economy. Based on more complete reporting, the previously released January estimate was revised lower by 3,800 to reflect an adjusted December-to-January loss of 12,700.

The economic fallout from the national recession on New Jersey’s job market has accelerated in 2009, with the loss of over 30,000 jobs over the first two months of the year. Job loss in February was widespread, as declines were recorded in eight of ten supersectors. The largest contractions occurred in professional and business services (-10,000), manufacturing (-5,200), construction (-3,300) and financial activities (-1,700). February losses in these industry supersectors are continuations of downward trends that are following the ongoing national recession which began in December 2007.

Source: New Jersey Department of Labor and Workforce Development

Licensed Site Professional bill a result of patience and persistence

Your Support of the Chamber is Helping to Forge Real Change

Licensed Site Professional bill a result of patience and persistence

Joan Verplanck, President, New Jersey Chamber of Commerce

Little did you realize almost three years ago when you were paying your annual dues and voluntarily contributed to the Chamber’s Enterprise Trust Fund that you were helping to fund a study that would result in some of the most significant legislation to come out of Trenton in years.

Your contributions to Enterprise in 2006 helped to fund the State Chamber’s Site Remediation Benchmarking Study, which recommended that the state Department of Environmental Protection (DEP) create a Licensed Site Professional (LSP) program for site remediation within the DEP. This study proposed that the DEP borrow aspects of a Massachusetts program to allow certified professionals to proceed through the investigation and remediation of selected sites with a minimum of DEP oversight.

Why is this important to all of us? It is because this legislation enables hundreds of contaminated properties throughout New Jersey to be remediated and put to good use for economic development or recreation purposes. The abandoned warehouse you pass on the way to work that has been dormant for years might finally be redeveloped thanks to this legislation. The same applies to the dilapidated building in that city you always visit and the factory along the rail lines near your home that ceased operating in the 1950s. The LSP legislation will allow DEP to break an 88-year backlog of site remediation cases by allowing outside professionals to get to work and help to turn blighted and often dangerous sites into thriving places once again.

Our Platform for Progress Environment Coalition members, along with others, worked tirelessly for two and a half years, presenting the LSP study to DEP officials and legislators, helping to draft legislation and working with stakeholders to meet the needs of many groups. Finally, after much sweat and hard work, the Senate and Assembly Environment Committees passed the LSP legislation, and it is expected to be passed by the full legislature and signed by the Governor.

I want to thank certain individuals who dedicated many hours and energy to this cause. The list includes Jorge Berkowitz and Nick DeRose of Langan Engineering, Dave Brogan of the New Jersey Business and Industry Association, Tony Russo of the Chemistry Council of New Jersey, Steve Senior of Riker Danzig, Andy Robins and Dennis Toft of the New Jersey Builders Association, Mark Smith of the New Jersey Chapter of the National Association of Industrial and Office Properties, Eric DeGesaro and John Donohue of the New Jersey Fuel Merchants, Kevil Duhon of the Senate Majority Office, Judy Horowitz of the Office of Legislative Services, and Michael Egenton from my staff. DEP Assistant Commissioner Irene Kropp also deserves special recognition for her dedication and perseverance.

I use the LSP legislation as an example of how your individual membership in the Chamber made a difference. It was through your contribution to Enterprise almost three years ago that we were able to secure the data and lay the groundwork for this important legislation. Because of you, properties that were destined to remain contaminated for many more decades will eventually see life again. The results of your participation are not always immediate. What we are trying to accomplish may take many years. For that reason, it is important for you to be patient and to continue your membership so that we can together change the status quo.

It might not always be apparent, but your support of the chamber is making a huge difference and forging real change in New Jersey. Thank you again for being a member of the New Jersey Chamber of Commerce and for your continued support.

State Chamber President Joan Verplanck can be reached at joan@njchamber.com.

NJ's Share of Federal Economic Stimulus Plan

New Jersey will receive $5 billion from the federal stimulus package when the money gets dispersed to the states. The following is a list of how we will benefit from the spending plan:

General allocation of New Jersey's share:

• $5 billion overall goes to the state
• $1.33 billion - education funding and the state budget
• $1.33 billion - infrastructure such as roads and bridges and water projects
  
• $2.2 billion - Medicaid support
  
• The rest will go towards such as areas as special education, support for low-income students, and programs such as food stamps, child care and preventing homelessness
  

Residents will benefit from the following:

• More than half of our residents will see a $400-per-worker credit; couples would receive $800. The credit applies to those with incomes under $75,000, and the median income in New Jersey is $68,000. Officials estimate it would mean about $13 a week more in people's paychecks this year. Next year, the measure could yield workers about $8 a week
• $100 a month in unemployment insurance for 731,000 out-of-work New Jersayans; 148,000 laid-off workers will also qualify for extended unemployment benefits
  
• 77,000 families will become eligible for a tax credit for college-saving plans. The plan creates a partially refundable $2,500 tax credit for those saving for up to four years of college
• 1.7 million middle-class New Jersey workers will get a one-year reprieve from the Alternative Minimum Tax