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NJBIA supported legislation approved by the General Assembly on Monday would extend the accommodations previously given to companies regarding the percentage of time their employees must spend working on site in order for their employers to keep their economic development grants. 

Bill A-4046, sponsored by Assemblywoman Eliana Pintor Marin (D-29), impacts companies participating in the Business Employment Incentive Program, the Business Retention and Relocation Assistance Grant Program, the Grow New Jersey Assistance Program, and the Urban Transit Hub Program, each of which is administered by the New Jersey Economic Development Authority (EDA).  The employer flexibility that was previously authorized for these grant recipients is due to expire on March 31. 

“NJBIA strongly supports this bill as a win-win-win compromise supporting employers that have created jobs and built the facilities they promised, their employees who want greater workplace flexibility in the shift to remote work, and the need to invest in our downtown areas,” NJBIA Chief Government Affairs Officer Christopher Emigholz said. 

Economic development incentives provided in the form of tax credits require businesses to meet certain program criteria, including creating or retaining a certain number of jobs at a qualified business facility. For a full-time job to be counted toward satisfying those requirements, full-time employees must spend 60% of their working hours on-site at the business’ location.  

In recognition of the hybrid work realities ushered in by the pandemic, the state added greater flexibility to the rules. Under an accommodation that expires on March 31, businesses participating in any of the four NJEDA grant programs could waive the requirement that a full-time worker be on-site 60% of the time if the  employee spent at least 10% of their time at the business location and their employer made a payment equal to 5% of its tax credit for 2022 tax period to the NJEDA. 

The bill approved by the  Assembly by a 64-12 vote on Thursday was amended last week in committee to only allow an accommodation beyond April 1, 2024, for certain businesses if full-time employees spend at least 40% of their work hours on-site and if those businesses make a payment to NJEDA equal to 10% of their tax credit. For businesses in economically distressed areas, the on-site requirement is 50% of hours worked. 

 The payments received from businesses under this accommodation for partially remote workers must be used by the NJEDA to provide loans, guarantees, equity investments, grants, or other forms of financing to support small business and downtown or commercial corridor activation activities within enhanced areas or government-restricted municipalities.  

Women board leaders and executives, including NJBIA’s President & CEO Michele Siekerka, will share their insights on how to navigate a career path that leads to the corporate boardroom during an April 16 event presented by the New Jersey Chapter of the National Association of Corporate Directors. 

The event, “Women on Boards: Navigating Your Pathway to the Boardroom,” takes place from 8:30 a.m. to 10:30 a.m. on April 16 at the Canoe Brook Country Club in Short Hills.  

According to the latest report from The Conference Board and ESGAUGE, the share of female directors in the S&P 500 was only 32% in 2023. 

“We need more women on boards,” Siekerka said. “The opportunities are plentiful, but it doesn’t just happen. It takes work, networks, and a commitment to wanting to bring your skills and expertise to the table.” 

Siekerka, who serves on public company and nonprofit boards, including the NACD NJ, will moderate a panel discussion in which women speakers will share career path insights and answer audience questions. Speakers include:  

  • Karen Kessler, Founding President & CEO, Kessler PR Group;  
  • Cheryl Norton, Executive Vice President & Chief Operating Officer, American Water 
  • Brenda Ross-Dulan, Founder and Managing Principal, The Ross-Dulan Group and a NACD NJ Director; 
  • Kelly Watson, Vice President & Managing Partner, IBM Consulting 

For registration information about this NACD NJ event, go here. 

 

 

More than just a broken promise, the proposed business tax increases in the governor’s proposed FY25 state budget set “terrible policy” that hurts the state’s economic competitiveness, NJBIA President & CEO Michele Siekerka said on a recent episode of “New Jersey Business Beat with Raven Santana.” 

Businesses were promised that a temporary 2.5% surcharge imposed on top of the permanent 9% Corporation Business Tax would sunset as scheduled on Dec. 31, 2023. Now in his new budget proposal, Gov. Phil Murphy is proposing a permanent 2.5% corporate transit tax that is retroactive to Jan. 1, essentially replacing a temporary 2.5% corporate income tax surcharge with a permanent one. 

“The business community needs predictability,” Siekerka told Santana, noting that companies were counting on the repeal of the temporary surtax to make investments in their facilities, workforces and communities. “And now the rug has been pulled out from underneath them.” 

New Jersey business currently pay the fourth-highest business tax in the nation, which will rise to the highest at 11.5% if the Legislature approves the governor’s plan. This puts New Jersey businesses at a competitive disadvantage to states in the region that have lower corporate taxes, income taxes and property taxes, Siekerka said. 

The governor’s proposed tax on trucks using warehouse facilities is also bad policy, she said. Moreover, the proposal would affect not just warehouses, but thousands of manufacturing facilities across the state, she said. 

“We’re a logistics state and now want to take a thriving industry and take them for granted and throw another tax on them? It’s just wrong,” Siekerka said. 

“This is going to fall back on the consumers,” she added. “I want to emphasize that this winds up being a tax on consumer products.” 

As for next steps, Siekerka said “the ball is in the Legislature’s court.” 

“They will drive the next part of this process and we are out there speaking with our legislators; we are testifying at the budget hearings … we can’t discuss anything else in the budget we don’t get over this significant hurdle for the business community.” 

To watch the March 9 interview on NJ Spotlight News, go here. 

 

 

NJBIA President and CEO Michele Siekerka will appear on WJLP’s/On NJ’s “NJ Politics with Laura Jones” this weekend to discuss Gov. Phil Murphy’s proposed new Corporate Transit Fee, and how it reverses a commitment to lower a surtax on New Jersey’s largest job creators and damages New Jersey’s business reputation.

The show will air on WJLP-TV at 6:30 a.m. on Saturday and 8:30 a.m. on Sunday.

A list of MeTV affiliates can be found here

Registration is now open for the New Jersey Licensed Site Remediation Professionals Association’s conference offering information on the latest industry advances, continuing education credits for environmental professionals, and extensive networking opportunities. 

NJBIA members can register here to attend the conference April 3-4 at the Hyatt Regency in New Brunswick at a special early bird discounted rate of $175 (a 40% savings) using the discount code: NJBIA-2024NJSRC. 

Ten new courses will be offered at the conference, including continuing education credits for licensed site remediation professionals (LSRPs), attorneys, professional engineers and professional geologists.  

The conference showcases the latest advances in site remediation education for environmental practitioners and provides opportunities to network with professional peers, industry experts, sponsors and vendors who provide specialized services that support site remediation. 

Women-owned small businesses can learn procurement contract opportunities with the U.S. Department of Energy, including national laboratories, at a free workshop that will be held at the Princeton Plasma Physics Laboratory from 9 a.m. to 2 p.m. on March 27. 

Pre-registration is required here for this event, which is sponsored by the U.S. DOE’s Office of Small and Disadvantaged Business Utilization, the Princeton Plasma Physics Laboratory (PPPL) and the Brookhaven National Laboratory.  Event attendees must be U.S. citizens. 

The PPPL Laboratory is a U.S. Department of Energy national laboratory managed by Princeton University. The workshop, which is limited to 200 people, will also include a talk on resources, as well as a vendor exhibit where business owners will have an opportunity to network with representatives of the OSDBU, PPPL, Brookhaven and each other. 

The Procurement Division of the Princeton Plasma Physics Laboratory (PPPL) purchases a wide variety of goods and services, ranging from: 

  • Commercial Products and Services 
  • Complex Fabrications (using exotic materials) 
  • Computers & Computer Peripherals 
  • Construction Services 
  • Chemicals 
  • Electronic Components 
  • Facilities Maintenance 
  • Janitorial Supplies 
  • Lab Supplies 
  • Machined Parts 
  • Raw Materials 
  • Scientific Consulting Services 
  • Staff Augmentation 
  • Training 

The Housing Authority of Plainfield (HAP) recently celebrated Black History Month with residents and the greater Plainfield community during an event that also raised funds for student scholarships. 

The March 1 event at Richmond Towers was sponsored by The Plainfield Culture and Heritage Foundation, HAP, Premier Community Development Corporation, and the Joanne Hollis Gardens and Richmond Towers Residents Associations.  

Guest speaker Pastor Mae Belin of Rose of Sharon Community Church in Plainfield led the discussion titled “Black History Month 2024: Black Resistance.”  

Proceeds benefited the HAP/PCDC Scholarship Fund supporting students in the Plainfield community. Scholarships range from $500 to $1,000 and are awarded to students seeking to attend college, university, or post-secondary educational institutions.  

“Every February I place great importance on taking the time to honor Black History Month,” said HAP Executive Director Randall M. Wood. “As an organization deeply connected with the Black community, all of us at the Housing Authority of Plainfield are celebrating the legacy of the incredible Black leaders who came before us. Acknowledging their accomplishments and understanding our past helps us shape the future of American history.” 

For more information about the HAP/PCDC scholarship process please contact Joyce Clark-Cabbell at joycec@hap-nj.org or call 908-769-6335 extension 619. 

NJBIA released its 2024 Regional Business Climate Analysis showing New Jersey continues to remain last in the region by a wide margin in terms of business taxes and cost competitiveness.

The analysis, found here, shows New Jersey maintaining the highest corporate business tax rate and property tax paid as a percentage of personal income in the region.

New Jersey also has the second highest rate in the remaining four categories: top income tax rate, state sales tax, minimum wage and maximum unemployment insurance tax contribution per employee.

New Jersey’s top corporate rate is measured at 9% in this year’s analysis, following Gov. Phil Murphy’s commitment to sunset a temporary 2.5% surtax on the state’s largest employers on Jan. 1.

However, he did a sudden about face and reversed that sunset with a new and permanent 2.5% Corporate Transit Fee, retroactive to Jan 1, in his FY25 budget proposal.

This would return the state’s top earning companies to extreme national outlier status for corporate taxes at 11.5%.

“Over the past year, our policymakers publicly acknowledged that New Jersey is an expensive state to do business and affordability and regional competitiveness were important factors for our economy,” said NJBIA President and CEO Michele Siekerka. “Sadly, their actions ignore their words and being a national outlier appears irrelevant to them when it comes to competitiveness.

“What our policymakers also miss is the fact our businesses rely on their word and actions when considering making investments. While the tax hike alone is bad enough, the way we are getting there, through broken promises and lack of notice, sends a clear message that our job creators don’t matter.

“Beyond the numbers showing New Jersey as an outlier of cost-drivers for business, we appear to have a mindset that it’s OK to make it worse. It’s a sad time for New Jersey’s business community when the negative attitude toward our top employers falls in line with our negative numbers. We must do better for business.”  BREAKING DOWN THE DATA

Each year, NJBIA’s annual Regional Business Climate Analysis, prepared by Director of Economic Policy Research Kyle Sullender, scores six individual business cost drivers that measure business competitiveness in seven states.

State rates in each category are scored from 1 (least competitive) to 7 (most competitive).

New Jersey’s overall business climate score (10 points) was the lowest for the sixth straight year.

Maryland and Delaware both tied for a top score of 34. Pennsylvania finished third with 30 points, followed by Massachusetts (24), Connecticut (21) and New York (19).

New Jersey’s current top 9.0% corporate business tax rate is the highest in the region, ahead of Delaware (8.7%) and Pennsylvania (8.49%). The Keystone State, however, is on a path to reduce its top corporate rate to 4.9% by 2031.

Compared to the six other states, New Jersey also has the top property taxes paid as a percentage of income at 4.76% – which is down from 4.98% two years ago.

For the third straight year, New Jersey’s top income tax rate of 10.75% has been surpassed by New York’s top rate of 10.9%.

Beginning with last year’s analysis, NJBIA has adjusted its unemployment insurance tax category to represent the maximum UI contribution per employee, which is calculated by multiplying each state’s taxable wage base and maximum tax rate.

With this metric, New Jersey is the second highest in this category at $2,630.40 – a whopping $507.60 increase from last year due to increases in both the taxable wage base and maximum tax rate. Massachusetts maintains the highest maximum UI contribution per employee at $2,935.50.

Connecticut currently has the top minimum wage rate of $15.69 per hour. New Jersey’s current minimum wage of $15.13 is the second- highest in the region.

To account for both state and local sales taxes, NJBIA’s  sales tax metric combines each state’s statewide sales tax rate with the average of any local sales taxes collected by local governments.

As a result, New Jersey finished with the second-highest rate at 6.61% – a good distance behind New York’s 8.53%.

“New Jersey businesses are in a tax rut and it doesn’t appear there are any mechanisms to drive them out of it,” Sullender said.

“A $1-billion-plus UI tax increase on employers after the pandemic, which could have been mitigated with federal COVID relief dollars, has greatly increased what employers pay every week for every employee.

“With the proposal of a new and permanent 2.5% corporate income surtax, it appears New Jersey will remain a regional and national outlier for business cost drivers,” Sullender said.

A proposed constitutional amendment that attempts to establish that every person has a legal right to a clean environment could, in fact, block initiatives designed to improve the environment, such as offshore wind projects, NJBIA said Thursday.

NJBIA Deputy Chief Government Affairs Officer Ray Cantor, testifying in opposition to Senate Concurrent Resolution 43 (Greenstein, D-14; Zwicker, D-16) today in the Senate Environment and Energy Committee, said it could also lead to a surge in costly litigation and create uncertainty that would jeopardize financing for public infrastructure and private development projects.

“If this ‘green amendment’ becomes a constitutional provision, those who oppose could legally challenge whether an offshore wind project would pass a ‘pure water’ or ‘preservation of the natural, scenic, historic of esthetic qualities of the environment,’” Cantor said.

Cantor also warned the so-called “green amendment” essentially transfers policymaking power and important deliberations away from the Legislature and to the courts, with unknown implications.

“It is crafted on the premise that the Legislature cannot be trusted to protect the public and make the right decisions,” Cantor said in previous written testimony. “It seeks to go around the Legislature, and the Governor and Executive Branch as well, and allow any person to go to the courts to get the result they want.

“(With the legislative process) there is debate, there is compromise, there are hard choices. All sides are represented. Representative democracy works. Sometimes it is messy sausage making. Sometimes we don’t get what we want. But at the end of the day, we make progress. And if we don’t like the results, we have elections.”

The committee voted 3-1 with one absention to release SCR-43. If approved by the full Legislature, the proposed constitutional amendment would be put up for a statewide vote in the next general election for voters to approve or reject. If approved, it would become part of the Constitution on the March 1st next following the general election in which it was approved.

During the Senate Education Committee hearing on Thursday, NJBIA urged legislators to correct the inequities in the school funding formula without making the already high property taxes that businesses and residents pay worse. 

“As property taxpayers, businesses, both large and small, foot almost half of the bill for our public schools. As a key school funding stakeholder, the business community wants to ensure the current formula is as effective and efficient as possible without increasing costs on already over-taxed New Jersey taxpayers,” noted NJBIA Vice President of Government Affairs Althea D. Ford. 

NJBIA supports bipartisan legislation, S-1986, sponsored by Senate Education Committee Chairman Vin Gopal (D-11), that would establish a school funding formula evaluation task force to review the issues and make recommendations, Ford said in her written testimony submitted to the committee. 

“As we learned with the School Funding Reform Act of 2008 and the current funding tribulations of S-2, when attempting to right-size, apply an approved formula and approach 100% funding of equalization aid, it resulted in sizeable funding changes from year to year,” Ford said. 

“While these adjustments were challenging to navigate, it provided stakeholders with important feedback that the State can use to inform future changes and modifications to arrive at a more equitable distribution of resources,” she said. 

Correcting these issues will require the state to smooth-out the formula to improve its predictability and stability for schools and taxpayers from one year to the next. Ford noted A-942 (Freiman/Drulis/Stanley) would use a five-year average of equalized property valuation and make other adjustments.  

“Changes can be made to smooth out jumps and drops in enrollment and income on the calculation side or by creating a corridor in the year-to-year aid changes. This would smooth the running of the formula that is as it should be run every year, and that will reduce shocks to the system that could lead to a perceived need for new taxes at the local and state level,” Ford said. 

Special education adjustments are also needed to make funding more equitable and less of a burden on certain districts and taxpayers, she said. 

“The formula should be reformed to eliminate the census-based special education calculations and move to better follow the individual needs of children and districts,” she said. “The state should fully fund extraordinary special education and have the state assume more of the special education burden such as through making special education categorical instead of wealth equalized.” 

The intersection between the 2% property tax cap (which is not part of the formula) and the state’s formula, which may determine that a district has the means to contribute more to its local fair share, creates a funding gap that needs to be investigated and resolved, she said. 

“But it is important that any adjustments do not increase the overall tax burden in an already over-taxed and unaffordable New Jersey,” Ford said. 

Foreclosure completion rates declined in 28 states, including New Jersey, in February compared to a year ago, according to the latest U.S. Foreclosure Report released by ATTOM, a curator of land, property and real estate data. 

States with the largest year-over-year declines in completed foreclosures (REOs) were Georgia (-52%), New York (-41%), North Carolina (-34%), New Jersey (-28%) and Maryland (-26%). 

Although there was collectively an 11% drop in REOs nationwide, some states bucked the trend and experienced a significant year-over-year increase in completed foreclosures: South Carolina (+51%); Missouri (+50%); Pennsylvania (+46%); and Texas (+7%). 

Metropolitan areas with populations over 1 million with the worst foreclosure rates in February 2024 included Orlando, Florida (1 in 1,938 housing units); Cleveland, Ohio (1 in 2,176 housing units); Riverside, California (1 in 2,293 housing units); Philadelphia, Pennsylvania (1 in 2,355 housing units); and Miami, Florida (1 in 2,392 housing units). 

Foreclosure Starts Up 

Although completed bank repossessions were down year-over-year in February, there was a nationwide uptick in initial foreclosure filings, both monthly and annually. Lenders started the foreclosure process on 22,575 U.S. properties in February 2024, up 4% from the prior month and an increase of 11% from February 2023. 

Those states that saw the greatest number of foreclosures starts in February 2024 included:  Florida (2,732 foreclosure starts); California (2,730 foreclosure starts); Texas (2,694 foreclosure starts); New York (1,289 foreclosure starts); and Ohio (1,097 foreclosure starts). 

“The annual uptick in U.S. foreclosure activity hints at shifting dynamics within the housing market,” said ATTOM CEO Rob Barber on Tuesday. “These trends could signify evolving financial landscapes for homeowners, prompting adjustments in market strategies and lending practices.” 

6 NJ Counties Vulnerable to Market Decline 

Last week, ATTOM released its Special Housing Risk Report spotlighting housing markets deemed more at-risk to market decline because homes are less affordable, there are more underwater mortgages (mortgage balances exceeding estimated property values), higher local unemployment rates, higher property taxes and insurance costs, and other factors. 

That report showed that California, New Jersey and Illinois have the highest concentration of most-at-risk real estate markets. In New Jersey, the report included Camden, Essex, Gloucester, Ocean, Passaic and Union counties among its 50 most-at-risk counties nationwide. 

Cigna Healthcare has selected Berkeley College as a recipient of its 2023 Gold-Level Healthy Workforce Designation for demonstrating a strong commitment to improving the health and vitality of its employees through a wellness program. 

The Cigna Healthy Workforce Designation evaluates organizations based on the core components of their well-being programs, including leadership and culture, program foundations and execution, policies and accommodations, and additional areas. This is the fifth consecutive year Berkeley College has earned workplace recognition from Cigna Healthcare. 

“At Berkeley College, employee health is our top priority, and we are proud to once again earn the Cigna Healthy Workforce Designation,” said Karen Carpentieri, vice president, Human Resources, Berkeley College. “A healthy workforce is essential for creating a productive workplace culture and a positive environment for teaching and learning.” 

Berkeley College seeks to increase employee health and engagement through initiatives such as biometric screenings, Lunch and Learn activities, and Wellness Fairs.  

“Higher vitality is linked to a more motivated, connected, and productive workforce,” said Kari Knight Stevens, executive vice president and chief human resources officer at The Cigna Group. “Employers that foster vitality will fuel a healthier workplace and drive business and economic growth. That’s why we’re proud to recognize employers for their efforts to prioritize multiple dimensions of wellness, build a culture of health, and boost employee engagement.” 

According to Cigna Healthcare, vitality is defined as the capacity to pursue life with health, strength, and energy. Research conducted as part of the Evernorth Vitality Index shows that those with higher vitality experience better mental and physical health, along with higher levels of job satisfaction and performance. 


Photo caption: Members of the Berkeley College Human Resources team, (L-R) Justin Robertson, Human Resources Manager; Karen Carpentieri, Vice President, Human Resources; Galina Kapitanker, Senior Benefits Manager; Kira Leis, Senior Human Resource Administrator; and Steven Millet, Director, HRIS.  – Photo courtesy of Berkeley College.