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

Chamber Applauds NOL Extension Bill Signing

By enacting legislation that extends the net operating loss (NOL) carryover period from seven to 20 years, the Governor and members of the Legislature are taking an important step to revise our corporate business tax code so that New Jersey is positioned to come out of this economic recession in a better competitive position in terms of job creation.

Today, more than ever, accountants and chief financial officers will be scrutinizing their balance sheets and seeking opportunities elsewhere where it makes financial sense. We are pleased our leaders are reviewing past policies and amending them, if necessary, so that our companies have a better chance to succeed and grow over the long-term.

NOL provisions allow businesses to weather economic fluctuations by allowing additional time for investment, growth and expansion, which is particularly important for small businesses and new ventures. Extending the time period for net operating losses will help struggling businesses survive the downturn and retain jobs.

Now that the NOL bill has passed, we are looking forward to the passage of other measures that will reform our tax code and encourage companies to stay here in New Jersey, as well as create jobs. This includes repealing the “throw out” rule and Regular Place of Business requirements, and providing a single sales factor formula. These are all recommendations included in the Chamber’s Corporate Business Tax Reform Package presented to the Governor and members of the Legislature.

In the midst of this current crisis, when all sized businesses are struggling, today's action sends a positive message that our government leaders are serious about putting a plan in place that helps us through this economic crisis and positions us well during the next upturn.

New Jersey's Economic Crisis

Members of the New Jersey Legislature met in a special session yesterday to discuss ways to provide relief to companies in order to spark the economy during these troubling times. The impression provided during the legislative session is that New Jersey became uncompetitive overnight as a result of the current economic woes plaguing the stock market and the rest of the nation’s economy.

In actuality, New Jersey's high taxes and past business policies have stifled job growth and investment in the state for quite some time. The Chamber has been warning for many years that New Jersey’s longstanding fiscal problems would multiply tenfold should a major national economic crisis occur. All indications are that that day has arrived and now our elected officials are scrambling to make some adjustments and undue policies that have resulted in us placing last or close to the bottom in almost every competitiveness poll.

We are pleased that some of the corporate business taxes implemented in 2002 might finally be repealed. It is unfortunate that it took a major crisis for some of these onerous policies to finally be reviewed and hopefully changed.

Click here to read more about the chamber's activities to reform the tax policies of New Jersey.

Chamber Applauds Corzine Ethics Reform Announcements

At 2:30 p.m. today, the Governor will be signing an Executive Order on the steps of the State House dealing with ethics reform.

Specifically the Executive Order will:

• Ban political contributions by state redevelopers and their consultants
• Tighten the current ban on state-contractor contributions to include those made by partners of professional service firms
• Appoint a task force to study whether the Local Government Ethics Law should be changed to match state law
• Update financial disclosure rules for members of newly created boards and commissions
  

In addition, he will be pushing for legislation that will:

• Ban contributions by county government contractors to municipal candidates and ban contributions by municipal contractors to county candidates
• Ban contributions by developers seeking development approvals
• Ban contributions from audit firms and partners to audit clients
  

By signing today's Executive Order and by calling for stronger legislative initiatives designed to dissuade government corruption, he is improving our state's reputation to investors and restoring residents' faith in our government institutions and leaders.

As business advocates, we see this as an economic issue. Financial commitments are made to the state when investors know they are working with elected officials at all levels of government that they believe to be honest. When the credibility of public servants is called into question, investment is chilled and our reputation is forever damaged.

The New Jersey Chamber of Commerce's Platform for Progress Government Reform Coalition applauds these initiatives. If nothing is done, the corruption stories that appear too often will only increase, as these activities become the norm - or the culture of the society.

What Do You Think of the New Transportation Proposal?

Yesterday, the New Jersey Turnpike Authority's board requested that tolls be raised starting in 2009 to help pay for much needed transportation projects. The increases will go towards widening the New Jersey Turnpike (Exits 6 to 8A) and the Garden State Parkway (Exits 63 to 80 and around Atlantic City); providing $1.2 billion over 10 years to fund a mass transit rail tunnel into Manhattan; ensuring bridge safety; and increasing funding to New Jersey Transit.

Tolls on the Parkway would increase from 35 cents to 50 cents in 2009, 75 cents in 2012 and 85 cents in 2023. Drivers that today pay on average $1.20 on the Turnpike see tolls increase to $1.80 next year, $2.70 in 2012 and $3 in 2023.

While the State Chamber and the Platform Coalition have not taken an official position on the current proposal, the organization has supported the projects mentioned in order to improve our transportation infrastructure and boost our economy.

The last time Turnpike tolls increased was in 2000 and Parkway tolls have not gone up since 1989.

For the latest updates on this issue, when they become available, please visit www.njchamber.com.

Tell us what you think of this new proposal.

Click here to complete the survey.

Sign the Pension and Health Benefits Reform Act of 2008

It is almost Labor Day and Governor Corzine still has not signed into law the Pension and Health Benefits Reform Act of 2008, which was passed by members of the legislature back in June. As a result, the Associated Press is reporting that newly hired teachers and public workers are still getting the same generous benefits received in the past - the same ones that add to the cost of government and create a larger long-term debt load. These are also benefits that can't be taken away once offered. The chamber backed the reform measures and we urge the Governor to sign them into law immediately so that we can begin to realize some savings and put less burden on current and future taxpayers.

The reform act is only the first step in changing the system. In fact, the current modifications are pretty minor. The Chamber encourages the legislature to consider additional changes, such as increasing the retirement age of public employees to 65; replacing the defined-benefit hybrid plan for new hires with a defined contribution plan; negotiating one contract on behalf of all local workers where the state picks up the cost; and phasing out lifetime benefits for retirees, as has been done successfully in the private sector.

The state still has a long way to go to truly reform the system, but let's get started by having the Governor sign the Pension and Health Benefits Reform Act of 2008 into law.

New Jersey's Fiscal Problems

It was reported yesterday in the Star-Ledger and other newspapers that overall state debt grew by $2.2 billion last year to an astonishing $36.5 billion, nearly triple the level of a decade ago. Governor Corzine announced plans to make a small dent into this huge problem by paying down $650 million in outstanding debt, a move that will save taxpayers $130 million a year in bond payments.

The Governor should be applauded for this initiative to reduce debt, as well as his and the legislature's efforts to cut state spending. The fiscal 2009 state budget passed in June was unprecedented because it appropriates $600 million less than the fiscal 2008 budget, which breaks the pattern of significant yearly budget increases. The fiscal 1998 budget was $16.4 billion, compared to $32.86 billion in fiscal 2009.

The above examples represent just the beginning of a long process to repair our state's fiscal affairs. The employer community will know our elected officials are serious about undoing the mess left from past years if they continue efforts to reduce spending in future budgets, as well as figure out how to cut our debt load. Only then will we be able to focus solely on economic growth activities, as well as pay for badly needed transportation projects and other programs.

Let's give state officials much credit for recent activities, but let's also acknowledge that we have a long way to go, which will require much sacrifice from all. If the state returns quickly to poor spending and borrowing habits, New Jersey will only dig itself deeper in a hole.

New Jersey Transportation Funding

The State Chamber has been advocating for years that a dedicated, long-term, stable transportation funding source is desperately needed in New Jersey. That's because the key to a strong economy is having a transportation network that can adequately move people and goods around. If our transportation system is not properly maintained because dollars are not available, then New Jersey stands to lose much of its economic assets.

The chamber board and staff believe all potential options to fund our transportation trust fund should not be taken off the table during the current debate, including the implementation of a gas tax. The chamber has historically supported the gas tax concept for many reasons - one being that many of the dollars collected comes from out-of-state motorists passing through New Jersey.

Today, The Star-Ledger published an editorial urging our state leaders to act soon on the transportation funding issue and to consider the gas tax option.

Act on transportation now

Wednesday, August 13, 2008
The Star-Ledger

Two years ago, Gov. Jon Corzine and lawmakers took the usual Trenton way out when faced with a transportation funding crisis: They borrowed an additional $6.4 billion instead of raising the gas tax or other revenue to keep road, bridge and mass transit work going.

The financing "fix" was supposed to carry the so-called Transportation Trust Fund until 2011, at which point Cor zine would be well into his second term or some other governor would have the problem of replenishing the transportation money.

Unfortunately for them, the crisis took the fast route back, arriving ahead of schedule. No matter how much Trenton would like to keep procrastinating, the federal government is forcing the governor and legislators to face up to the need for new transportation money now, not later.

State leaders must figure out a new, long-term funding solution before the end of the year or Washington will revoke its offer to contribute up to several billion dollars toward a badly needed new rail tunnel under the Hudson River. This is a deadline that Trenton cannot ignore.

The governor is once again keeping his lips zipped about where he thinks new rail, bridge, train and bus money can be raised. Corzine's unwillingness to release any proposal before early fall leaves New Jerseyans to speculate again that no one in the governor's office has a clue about what to do. And it gives legislators plenty of time to say what they're against -- although that could come back to haunt them.

Senate President Richard Codey (D-Essex) and Sen. Raymond Lesniak (D-Union) are doing just that by publicly declaring that a hike in the state's third-lowest-in-the-nation gas tax is a nonstarter.

Certainly no one wants a gas tax increase, especially with prices so high. But taking the gas tax off the table seriously limits potential transportation funding solutions.

That is a mistake because it means more money will have to be raised some other way -- say, through toll hikes, installing tolls on Routes 80, 78 and other highways or letting private investors build and operate lanes on the New Jersey Turnpike. But none of those ideas will be particularly popular either, no matter how intriguing Lesniak and Codey find the possibilities.

Republicans aren't helping. Their insistence that money can be freed up for roads and mass transit by slashing aid to towns and urban school districts, finding "efficiencies" and cutting government jobs and benefits doesn't add up.

Cutting municipal aid further will only raise property taxes more. Efficiencies never turn out to be as valuable as any administration of any party suggests. And the state is under court order to fund urban schools. Corzine is correct when he calls the GOP plan make-believe math.

Lesniak made more sense yesterday when he said it's likely some combination of money-raising strategies will be needed to replenish the Transportation Trust Fund. Which is why it is foolish to place even a minor gas tax increase off limits. The more options available, the less the increase needed in any one.

Early 2009 Gubernatorial Polling

Once the presidential election has ended, New Jerseyans will have no time to recover because we will be thrown immediately into the 2009 gubernatorial race. Should Governor Corzine decide to run again, his most likely GOP opponent is U.S. Attorney Chris Christie, although it is certain many more will throw their hats into the ring. Here's the latest Quinnipiac University poll on a potential Corzine-Christie race. It shows that at this point and time the gubernatorial race has the potential to be very competitive.

August 12, 2008 (Quinnipiac University) - Christie Ties Corzine In Early Look At NJ Gov Race

New Jersey Gov. Jon Corzine, plagued by ongoing budget problems, is locked in a dead heat with federal prosecutor Christopher Christie, a possible Republican challenger in the 2009 Governor's race, with 41 percent of registered voters for Christie and 40 percent for the Democratic incumbent, according to a Quinnipiac University poll released today.

Christie wins independent voters 42 - 37 percent and Republicans 76 - 10 percent, while Democrats go with Gov. Corzine 64 - 17 percent.

View the complete poll by clicking here.

New Jersey Highest Tax Burden

The Tax Foundation of Washington, D.C released a study today announcing that New Jerseyans have the heaviest state-local tax burden in the nation. This should come as little surprise since our residents - as well as employers - have traditionally paid some of the highest taxes in the U.S. Hopefully, new policies will be enacted to ease the tax burden so that we can focus on growing our economy and creating much needed jobs. High taxes compared to the rest of the nation - and world - is often cited as the number one issue negatively impacting New Jersey's economic growth efforts, according to chamber studies and surveys conducted over the years.

Key findings of the Tax Foundation study include:

• Tax burdens are down from 9.9 percent of income in 2007 to 9.7 percent in 2008, mostly because income growth outpaced tax growth as the macroeconomy slowed.

• In 2008, the residents of New Jersey pay the most, 11.8 percent of their income. New York and Connecticut are the only other states where residents pay more than 11 percent, compared to a national average of 9.7 percent. Maryland and Hawaii round out the top five.

• Alaskans pay the least, 6.4 percent in 2008, Nevadans pay 6.6 percent, and residents of Wyoming, Florida, New Hampshire and South Dakota pay between 7 and 8 percent of their income in state-local taxes.

To view the complete study visit, click here.