Spiraling healthcare costs, high taxes and over regulation are the greatest economic concerns of New Jersey businesses, according to a new study on the State's business climate.

The report, Economic Policies and Solutions: Making New Jersey a Better Place for Doing Business, was conducted by NJBIA's think-tank affiliate, the NJ Policy Research Organization (NJPRO). This comprehensive study is based on a detailed survey of nearly 300 business leaders, as well as one-on-one interviews with New Jersey business leaders and out-of-state business executives who are responsible for deciding where to locate facilities.

Of those surveyed, 42 percent believe New Jersey's business climate will deteriorate over the next five years, while only 23 percent said the State is doing a good job of making New Jersey an affordable place to live. Affordability (the costs facing all businesses - taxes, energy, healthcare and regulation) and investment (enhancing the skills of workers in manufacturing and other sectors) emerged as dominant themes throughout the survey. The second part of the report provided 37 detailed short- and long-term recommendations to strengthen New Jersey’s economy. Many of the recommendations came from other states that are successfully using their policies to retain and attract employers.

"This is not some academic report based on theories and models," said NJPRO Executive Director Sara Bluhm. "The views of New Jersey's business climate and the recommendations for improving it come directly from the businesses themselves and from successful programs from other states. If policy makers are looking for concrete ideas to improve the economy, this is the place to start."

Among the recommendations:

• Reform the tax structure to allow businesses to reduce their State-tax burden by carrying their losses forward for 20 years, the same number of years allowed for federal taxes and by many states. Also, base corporate tax liability on sales in New Jersey, not on how many employees or facilities they have in the State. The current system actually punishes employers for hiring people or owning property in New Jersey.

• Make it easier to get permits and licenses in a timely way and continue to upgrade and improve New Jersey’s online business portal, www.state.nj.us/njbusiness.

• Enact legal liability reform measures to create a more balanced liability environment in the State.

• Encourage innovation in the State's technology-driven economy through increased research and development funding at State colleges and universities and by cultivating academic research partnerships with private industry.

• Enact reforms in the State's health benefit and Medicaid programs to create efficiencies, increased healthcare quality and cost savings. The lessons learned can then be applied to reduce private-sector health insurance costs.

For more information, contact Sara Bluhm at 609-393-7707, ext. 204.

Affordable Housing Reform Bill with Reasonable Fees Becomes Law

Legislation to overturn new Council on Affordable Housing (COAH) regulations was signed into law by Governor Corzine July 17.

The law overturns COAH regulations that would have added substantial new costs to businesses that want to relocate or expand their facilities by allowing municipalities to charge an 8 percent to 10 percent tax on nonresidential development. Instead, the measure, A-500 (Roberts, Watson Coleman), establishes a Statewide tax of 2.5 percent on nonresidential development and prohibits municipalities from assessing other fees or requiring affordable housing construction by nonresidential developers. NJBIA supported the bill. For more information, contact Art Maurice at ext. 247.

Corzine Signs Healthcare Reform Bill with Insurance Market Reforms

Governor Jon Corzine on July 8 signed legislation expanding coverage under FamilyCare, the State's government-subsidized health insurance program for lower income children, and requiring parents to provide health coverage for their children.

The measure, S-1557 (Vitale)/A-2624 (Cohen, Greenwald), also enacts numerous insurance market reforms that have been championed by NJBIA, including changes to insurance-plan pricing in the individual market, a reduction of red tape in the small-employer market, and greater transparency in insurance plan pricing. NJBIA supported the bill. For more information, contact Christine Stearns at ext. 260.

NJBIA Golf and Tennis Day Draws 235

Two hundred golfers and 15 tennis players competed for trophies and prizes in NJBIA's 38th Annual Golf and Tennis Day on July 15 at Forsgate Country Club in Monroe Township and the East Brunswick Racquet Club, and many more attended the afternoon reception and luncheon.

Playing in the new scramble format, the team of James Morano of Suzanne's Specialties, Jim Nicoll of News 12 New Jersey, Charles Pelesky of David Lerner Associates and Ron Zirkel of Cowan, Gunteski & Co., PA captured first prize on the Palmer Course with a team score of 63. On the Banks Course, the team of Evan and Stephen Fischbein of Just Packaging, Inc., Richard Falkin of Temple Beth Ahm Yisreal and Art Kravitz of Americas Insurance Centers captured first place with a 58. In the tennis tournament, the team of Van Ripps of Palmer Asphalt and Adedolapo Oyefeso of Crown Rehab, Inc. won first place.