03/05/2008
Small business victory!
Small businesses that feel that they are unfairly burdened by government regulation will be able to take their case to court under legislation released recently by the Assembly Economic Growth Committee. This proposal, a priority issue for NFIB/New Jersey, would expand New Jersey's Regulatory Flexibility Act to permit businesses with less than 100 employees to appeal to the courts if they have been economically harmed by the actions of a governmental agency. In addition, the bill requires governmental agencies to simplify and consolidate reporting requirements for small businesses. This legislation now heads to the full Assembly for a vote.
Cell phone ban takes effect
Effective immediately, text messaging or talking on the phone while driving could result in fines. Police in New Jersey can now fine drivers $100 for talking or text messaging on hand-held devices. New Jersey is just one of five states where talking on a hand-held cell phone is reason enough to get pulled over and the first state to make text messaging a primary offense. Drivers can still use their cell phones to contact police or emergency services, and can talk at any time with a hands-free device.
Paid family leave bill receives Senate approval
Legislation that would grant up to six weeks per year of paid family leave to all employees to care for a sick family member or new child was passed by the New Jersey Senate by a vote of 22-16 on Monday. The bill would allow workers to take up to six weeks off and collect two-thirds of their salary to a maximum of $524 a week. Employees would pay for the program with a new payroll deduction estimated to cost about $33 per employee per year.
Current unpaid family leave law does not apply to employers with less than 50 employees. This proposal will impose a one-size-fits-all mandate on every business and has no exemption for small businesses with 1-49 workers. Small businesses that have never had to cope with unpaid leave mandates will suddenly face the prospect of having key employees out for up to 10 weeks at a time.
This legislation, strongly opposed by NFIB/New Jersey members, has the potential to hurt productivity, places a new mandate on already struggling employers and adds to the anti-small-business climate of New Jersey. In addition, it will place an undue burden on employers at a time when the state cannot afford to lose any more industry.
An angry Sen. Kevin O'Toole (Essex) said the bill was just the latest example of how New Jersey is hostile to employers. "We need to have employers come to New Jersey ... People will think twice about coming here or staying here," O'Toole said. "We have to change the climate in New Jersey."
Businesses in New Jersey are already struggling to find and retain skilled workers. A paid family leave law would force employers to find replacement workers who won't be as productive or to pay overtime and put more burdens on other employees.
We believe that our businesses should be permitted to tailor a benefit package to their employee base and not have a benefit package mandated by the legislature. Passage of this legislation will certainly add to the current anti-business climate of New Jersey.
The bill now heads to the Assembly Appropriations Committee for consideration. Gov. Corzine has publicly promised to sign the bill.
Gov. Corzine proposes cold turkey budget plan
Gov. Jon Corzine presented his Budget Address for Fiscal Year 2009 before a joint session of the Legislature. The proposed budget is just under $33 billion and cuts $500 million from last year's budget -- making it the second largest spending cut in state history. The proposal freezes spending, does not offer debt service relief, provides a new formula for property tax relief and does not include any new taxes.
Additionally, the governor has proposed cutting 3,000 state jobs, eliminating the Commerce Commission and Agriculture and Personnel Departments and enacting long-term reforms to limit spending to available revenues.
NFIB/New Jersey state director Laurie Ehlbeck is carefully monitoring the budget process. History shows that the final budget that is signed on June 30 will look a lot different than the document proposed last week.
Toll hike plan is banged up but not dead
The governor's controversial Financial Restructuring Plan that would significantly increase highway tolls was noticeably missing from his proposal. The proposal, which calls for large toll hikes and borrowing up to $38 billion to halve state debt and fund decades of transportation projects was strongly opposed by NFIB/New Jersey. Corzine acknowledged that his plan does not have the votes to get through the Legislature, but asked New Jersey citizens and legislators to work with him to develop a plan to pay down debt and fund vital capital investments.
Meanwhile, other legislators have offered alternative proposals. The most detailed counter proposal was offered by Assemblyman John Wisniewski, chairman of the Assembly Transportation Committee. His plan calls for smaller toll hikes and more than doubling the gas tax to fund transportation projects.
