State Economy May See Yield Sign as Transportation Fund Nears Empty

By Rod Hirsch

 

It is like a gasoline truck running out of fuel. Despite billions in revenue from highway

tolls, license fees and the state gasoline tax, New Jersey’s beleaguered Transportation Trust Fund (TTF) will soon run out of money, a scenario that has played out several times since the fund’s establishment in 1985 as legislators repeatedly raided the trust to balance the state budget.

 

That has forced a succession of governors to borrow money to prevent the fund from going broke and to continue funding bridge, road and rail projects across the state. Meanwhile, mounting interest payments continue to eat away at the principal intended for transportation infrastructure improvements.

 

If funding for New Jersey’s roads, bridges and rail lines projects runs dry, the state’s economic growth may slow to a snail’s pace.

Early next year, New Jersey will turn over $865 million to pay off the debt service incurred by borrowing against the TTF, which will nearly bankrupt the fund and drastically reduce the number of projects that can be funded in 2011.

 

The result could be economically disastrous for New Jersey, according to officials.

 

The TTF is vital to the state and regional economy, with Union County’s Port Elizabeth playing a major role, according to Gene Feyl, first vice chairman of the North Jersey Transportation Planning Authority (NJTPA) and chairman of the authority’s Project Prioritization Committee.

 

“Funding infrastructure and area roadways is critical to that port,” Feyl explained. “We have a lot of other ports looking for business on the East Coast and the lowest-cost provider will get the bulk of the business."

 

“We believe New Jersey has a strong transportation infrastructure to start with. Some of it is growing tired but if you look at the port and inland, the investment in the port and rail, we are well placed to handle additional freight, particularly if we get funding and some dredging of the port."

 

“We have to make sure our port is competitive with Charleston, Jacksonville, New Orleans, Baltimore and others.”

 

Gov. Chris Christie has promised to craft a rescue plan to restore stability to the TTF. The governor and James Simpson, commissioner of the state Department of Transportation (DOT), have been working on the plan, with an announcement expected sometime next month. Details have yet to emerge.

 

Christie did address the TTF shortfall in September. “I instructed my administration months ago to present to me a variety of options for the reauthorization of the transportation trust fund,” Christie said, before adding, “When they present those options to me, I will make a decision on what I think is best for the future of the Transportation Trust Fund.”

 

Feyl, who also is Morris County freeholder director, is confident the governor will come up with a no-nonsense plan that will work. “The trust fund has faced crises before,” he said. “The governor and Commissioner Simpson have indicated they will have a plan for the fund by years’ end and if there’s one thing we’ve learned from this governor, we can take him at his word.”

 

One option would be to increase the state’s gasoline tax, one of the lowest in the nation: 10.5 cents per gallon on regular gasoline and 13.5 cents for diesel fuel. The tax has not been increased since 1988.

 

Christie has resisted that option.

 

Union County Freeholder Angel Estrada disagrees with the governor, insisting an increase in the gasoline tax makes the most sense.

 

“What other funding mechanism can you use to fund the TTF?” Estrada asked. “Increasing the gas tax is the best answer. That was the original intent when it was first created. New Jersey is an old state in terms of our infrastructure. Traffic here is heavier than (in) most of the nation and we need the funding to take care of our roads, our bridges.”

 

One solution offered by Feyl and Gail Toth, executive director of the New Jersey Motor Truck Association (NJMTA), is to shift the money that had been designated for the $9 billion Hudson River train tunnel project, which was derailed by Christie last month after consulting with advisors who were concerned by potential $5 billion in cost overruns.

 

New Jersey had committed $2.7 billion to the Access to the Region’s Core (ARC) project, which would have created a second train tunnel nine miles long beneath the Hudson River connecting New Jersey and New York.

 

Nearly half of New Jersey’s commitment to the ARC project came from toll revenues from the New Jersey Turnpike Authority. Toth noted that members of the NJMTA driving north and south on the Turnpike generate about 30 percent of those revenues annually and said they are willing to pay a higher fuel tax to help bolster the TTF.

 

The truckers’ organization has 775 members, including the 10 largest trucking companies in the United States. Toth said members are hopeful the TTF will reap a windfall from the illfated ARC tunnel project.

 

“The best way to go is to take the funds that were to be used for the ARC tunnel and move them to the TTF,” Toth said. “That could go a long way to helping it out. We’ve urged the governor to take the money and put it into the Transportation Trust Fund.”

 

Toth said the NJMTA would support an increase in the diesel fuel tax to fund the TTF. “From a consumer’s perspective, no, but from a trucking perspective, we’d rather see that than another toll increase,” she said. “We’re paying the fourth-lowest fuel tax in the nation. All trucks passing through New Jersey will pay it and we can build that increase into our rate structures. That’s less oppressive than raising tolls. It’s more fair.”

 

John Kruse is president and owner of J. Way Trucking in Hillside and a member of the Bi- State Motor Carriers, which represents trucking companies in New York and New Jersey that transport freight to and from Port Elizabeth. Kruse is concerned that the depleted TTF could have a negative impact on Union County and the metropolitan region.

 

“There’s a ton of distribution warehouses at the Turnpike Exit 8A and we’re actually seeing our competitors serving that area out of Baltimore and Norfolk,” he said. “That’s not something we like to see. It should all be here.”

 

To enhance access to the port, Kruse believes a dedicated exit off the Turnpike between Exits 13A and 14A is long overdue.

 

“Our organization has supported that but it’s fallen on deaf ears,” Kruse said.

 

A sound secondary road system in and out of the port is critical, as well, according to Kruse.

 

“The port has to be one of the biggest employers in Union County and the state,” he said. “We’d hate to lose volume due to a lack of infrastructure. The biggest issue is the roads. They haven’t (been) expanded and kept up as the port volume has increased.”

 

As the state continues to wrestle with a long-term solution to restore stability to the TTF, the DOT continues to adhere to a policy of “Safety First, Fix It First” to prevent any further deterioration, according to Feyl.

 

“There are projects begging for billions like the Pulaski Skyway, the Bayonne Bridge, port infrastructure,” he said. “From a commerce standpoint, the TTF is critical.”

 

Yet the fund is nearly on E.

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Grinch Who Stole Christmas Party Not Yet Thawed

By Karen Miller

 

When the recession hit a few years ago, one of the first industries to suffer was the hospitality sector. As the calendar changed and businesses slumped, companies were forced to say bah humbug to holiday parties and restaurants, banquet facilities

and caterers felt the cold of quiet winters.

 

Some businesses were too strapped for cash for host employee or customer parties, while others deemed it poor taste to announce layoffs while at the same time hosting a holiday lunch or dinner.

 

As the economy has strengthened in the last year it has raised the hopes of restaurants, banquet facilities and caterers for a better holiday party season this year.

 

So far locally, however, results are mixed. “Businesses are still cutting back on holiday parties,” says Karen Kamichof of the catering and sales department of the Crowne Plaza Hotel Clark. Not only is the hotel seeing about 30 percent fewer bookings this year than last year, groups giving parties are cutting back in other ways.

 

“If a business is having a party they are often choosing not to serve alcohol or they are switching from a sit-down meal to a buffet,” she said.

 

Some companies are requiring staff to pay to attend a department party, resulting in fewer reservations, according to Kamichof.

 

“I had one client call me recently to change to a smaller room,” she said. “She had expected to have 75 reservations for the party, but so far she only has 40.”

 

Bookings are about the same or slightly higher at The Westwood Banquet Center this year, according to the director of catering, Cathy Jones.

 

“A party is still a nice way to show appreciation to employees or clients, and you can still give a very nice event even if you feel you need to scale back a bit,” she said.

 

A few of the trends Jones is seeing are cocktail parties versus traditional dinners; lunches or breakfast events instead of evening affairs; and family events rather than employee-only parties. Cocktail parties are particularly popular for several reasons; they usually are shorter than a dinner or lunch event and allow guests to mingle and socialize.

 

Breakfast with Santa also has become a popular alternative to traditional company holiday events, because employees can bring their families, according to Jones. The

Westwood held a successful Breakfast with Santa party last year for its own employees.

 

“Particularly when families are feeling strapped for cash, parents are more willing to come out to an event where they can bring the children,” Jones said.

 

To attract more holiday parties, restaurants and other facilities must be flexible in hours, discounts and packages, according to Noelle Stary, marketing strategist and owner of 20 Lemons Marketing in Woodbridge, which specializes in marketing for the hospitality industry.

 

“Bundle services to make things more attractive to the client,” she suggests.

 

For example, a restaurant could add a buffet table or carving station as well as pass around hor d’oeuvres, she offered.

 

“People always want value for their dollars, but that’s particularly important right now,” she said.

 

One local restaurateur found that offering two proteins, for example chicken and salmon, is becoming popular rather than a beef dish because the combination costs less than beef but has more perceived value than chicken alone.

 

Other options to attract holiday business include a “bounce back coupon” for attendees to draw them back to the restaurant over the holidays or in the New Year. Kamichof at the Crowne Plaza is offering special overnight packages for holiday dinner guests who want to enjoy a few drinks at the party and not worry about driving home afterward.

 

One of the best ways for facilities to add to their holiday bookings is to extend the holiday season, experts say. A new trend shows companies holding parties early in January rather than in November or December, which offers many advantages.

 

“If you are laying off employees it may seem tasteless to hold a holiday celebration, while an event at the beginning of the year to talk about what you hope to accomplish in the new year will work well,” Kamichof said.

 

For the restaurant or catering or banquet facility, adding a party in January – traditionally a much slower time than November and December – is good for business.

 

The most important thing to remember right now for everyone in the hospitality industry is creativity, added Stary.

 

“You have to work harder and think creatively right now to bring in the holiday business,” she said.

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By Andy Gole

The movie Secretariat tells a powerful story – how the horse won the 1973 Triple Crown, a feat unmatched since 1948. The film’s climax is the Belmont Stakes – the longest race in the Triple Crown.

Secretariat was known for speed, not duration, yet winning the Belmont Stakes required a potent combination of both qualities.

 

Normally, Secretariat started a race back in the pack before moving up to win. According to the film, in the Belmont Stakes the trainer left a critical decision up to the jockey, Ron Turcotte – how to run

Secretariat, how hard to push the horse.

 

Turcotte decided to drive Secretariat hard from the outset. As a result, Secretariat led from the opening bell and continuously increased the lead until the end of the race – winning by an unprecedented 31 lengths.

 

Until this race, Secretariat’s trainer never challenged the time-honored racing tenet – speed or duration, but not both.

 

If Turcotte didn’t drive Secretariat hard from the outset, the team never would have discovered Secretariat could deliver both speed and duration. They would have continued to embrace a self-limiting assumption.

 

Self-limiting assumptions aren’t confined to horse racing – they also are the bane of salespeople, who are responsible for business development. A major debilitating sales assumption is: We can’t push the prospect.

 

When salespeople don’t want to call a prospect again to ask for the order or ask the prospect to do a reasonable behavior (like check references), they typically say, “I don’t want to push the prospect. I may ruin the relationship.”

 

What relationship? If they aren’t buying, there isn’t a relationship to ruin.

 

What justifies calling the prospect one more time, pushing the prospect to do a reasonable behavior? We need to “earn the right” to a relationship. We do this through a material difference – a difference so strong it motivates a change in prospect behavior.

 

Material difference is how we earn the right to call the prospect again. Anytime you have a new material difference to offer the prospect, give them a call. If you don’t have a new material difference but want to call the prospect anyway, look for a new material difference.

 

Examples of material difference:

 

   • Ipods replacing CDs, which replaced records

 

   • Healthy foods replacing foods grown with pesticides

 

Material difference by itself is not enough. In addition we need:

 

   • A strong message to transmit the material difference;

 

   • The will to use it, to drive the prospect forward into a relationship.

 

How strong a message do we need to drive the relationship forward? We need to follow the example set by Benny Goodman in 1938. Until then, no jazz band had performed in Carnegie Hall. In 1938, Benny Goodman legitimized jazz by being invited to perform at the revered concert venue.

 

When a later contemporary jazz band leader played Goodman’s music from the 1938

concert, he said the music was so strong it “peeled the paint” off the walls at Carnegie Hall.

 

That’s what we need to do with prospects – present a case so strong it peels the paint off the walls. We do this by driving the relationship forward with strong material difference.

 

Secretariat won the Belmont Stakes because he was driven hard from the outset. We need to do the same with prospects. They can take it, just like Secretariat.

 

In fact, they will want to take it if we make a material difference.

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Andy Gole has taught selling skills for 14 years. He started three businesses and has made approximately 4,000 sales calls, selling both B2B and B2C. He invented a selling process, Urgency Based Selling®, with which he can typically help companies double their closing or conversion ratio. Learn more about Andy’s method at www.bombadilllc.com or by calling him at 201.415.3447.

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By Barry Cohen

A machine is more than the sum of its parts. An engine is a machine. Your marketing apparatus must also take on the attributes of a machine: a device with many parts that can perform several functions and operate independently – and interdependently.

A well-oiled marketing machine encompasses the entire process of moving the product or service through the system, from producer to end-user. Along the way, it includes the following sub-processes:

• Market Research – Studying your potential customers: who they are, what they buy, how they buy, when and where they buy, where they live and what drives their purchasing decisions.

• Advertising – The art and science of telling your company and/or product story to your potential consumers; selecting the most effective and efficient media and devising and executing the most motivating message.

• Promotion – Showcasing special opportunities to trigger a consumer purchase.

• Merchandising – Creating the most enticing product displays, offers and packaging.

• Publicity – Engaging the media to tell the newsworthy aspects of your story.

• Customer Relationship Management – Continuing involvement with the consumer following the sale to maintain a level of satisfaction.

Research is your insurance policy against misspending your dollars. It comprises the “acid test” that tells you whether your product or service will truly appeal to the customer and whether or not your price points, packaging, promotions and offers really resonate with your target consumer.

The mantra always should be “Test, test, test – then test some more.” Marketers should even test their delivery systems. Remember, you are not your consumer. It pays huge dividends to ask them what they like or dislike.

Do not assume that any product, no matter how breakthrough, will sell itself – or that its mere presence on the internet will generate revenue. The United States has become the proving ground of this mistake.

Thousands of companies have tried unsuccessfully to launch “no-name” brands. Consumers will only accept and embrace certain products as commodities – those that are purchased on price considerations alone. People choose to engage with a brand, just as they choose friends, partners and spouses. If your brand has no name recognition, no known value proposition associated with it and no credibility in the marketplace, consumers will not choose it.

Advertising accelerates the process of brand recognition and differentiation. Advertising drives sustained traffic and sales – online in the internet world, as well as off-line in brick and mortar establishments.

Promotion takes your advertising to a higher level. By creating special events and opportunities, you signal urgency and a heightened reason to buy. Promotion does not have to mean selling off-price. You can create a special experience for the high-end buyer that gives them a sense of exclusivity if they participate.

Merchandising needs to fit the product or service. Package the product according to the consumers’ expectations. An economy product should have a different look and feel than a luxury product. So should the selling environment for that product. Don’t confuse the consumer. Keep the merchandising consistent with the brand’s position in the marketplace.

Don’t confuse publicity with advertising. Public relations creates credibility, raises your company’s profile and creates a climate favorable to sales. For the most part, it does not drive traffic and sales; that’s the job of advertising. If you have mounted a successful public relations campaign, your advertising will have greater credibility. However, it has to have a true story element to garner press.

Your marketing serves to gain and maintain customers, foster repeat purchases and encourage referrals. What happens after the first sale can be the key to your ultimate business success. That’s where Customer Relationship Management (CRM) comes in. If you engage in a successful CRM program, you will not have to market as aggressively to build your sales. To an extent, your growing customer base will remarket your business for you.

Barry Cohen is the managing member of AdLab Media Communications, LLC in Clifton. He is the author of 10 Ways to Screw Up an Ad Campaign and co-author of Startup Smarts. He can be reached at 973.472.6304 or at www.adlabcreative.com.

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Inside Views

It's the Parents

 

Much talk over the last several months – or years or decades, depending on your attention span – has revolved around the problems of educational effectiveness in New Jersey. Why do we have so many schools that fail their students? Why do we have such high dropout rates? What can we do to fix the problem?

The dilemma of school effectiveness has hounded the politics of New Jersey at least since the mid-1980s. It was recently turned into an all-out war with teachers on one side and the governor on the other. It is strident, bitter and ugly – and I would argue, ultimately ineffective.

In 1985, in its landmark Abbott v. Burke decision, the New Jersey Supreme Court decided that the problem was all about money. The decision identified 31 districts that were substandard and ordered the state to provide funding to improve these schools so that students could obtain an education equal to students in suburban schools.

This decision has been a key factor in undermining state finances. Billions upon billions of dollars have been spent on urban school districts. The facilities that have been built are far nicer than even those in the wealthiest school districts. The amount spent per student in Abbott districts far exceeds that spent in suburban districts.

And to what effect? Very little, unfortunately. The average cost of a student in Newark is in the range of $25,000 per year. Yet about half the students in Newark will drop out of school. Clearly money is not the solution.

But if money isn’t the problem, as most people now realize, what is? Ah, it must be the teachers.

If only we had better teachers we would have more success. If only we got rid of the deadwood, our children could flourish. If only we had the best and the brightest in front of the class, all problems would end.

There is probably some truth in this. Better teachers make better students. But better schools offer more opportunities, as well. Fixing the teacher problem may have some effect but, like money, it is not the sole solution.

The Elizabeth school district is an interesting case in point. Elizabeth is an Abbott district. It has done a great job building new schools. It has been on the cutting edge of improving teacher performance.

It has done away with middle schools, converting all its schools to Kindergarten through eighth grade. Elizabeth also has more high-performing schools than any other district in the state.

Yet Elizabeth has a number of underperforming schools, as well. Why the dichotomy? All the kids are in the same district. They all have state-of-the-art facilities. All the teachers are drawn from the same pool.

Years ago my wife’s cousin, who was a teacher in a rough San Francisco school, paid us a visit. My son was just a toddler and I asked her how I could make sure he did well in school.

Her answer was not to send him to a nice suburban school, or to make sure his teachers had advance degrees. Her answer was that my wife and I be involved – that we go to back-to-school night, that we get to know the teacher and, most importantly, that we push our son to do his best.

My son has done very well in school. He will graduate this year and he is applying to some of the top universities in the country. I know he is where he is because of us, his parents.

I think if you look closely at the top performing schools in Elizabeth, you will also find that parental involvement is far higher than in the failing schools.

So maybe the real solution to the education problem is the education of parents. If parents push their children, their children will succeed. It is the greatest gift we can give.

James Coyle

President

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In the world of twenty-something males it is called beer muscles, when testosterone trumps common sense and leads to pig-headed immaturity. On the playground it is echoed in the childish retorts of oh yeah and so there, am not and are to.

In New Jersey, this petty gamesmanship plays out daily in the halls of Trenton, with the state’s residents being the only true losers. One of the current tit-for-tats revolves around the failure of the Senate to act on dozens of Gov. Chris Christie’s nominations to fill vacancies in the state’s courts, commissions and authorities, apparently in retaliation for the governor’s refusal to renominate Justice John Wallace to the state’s Supreme Court.

Many political insiders and pundits describe this as the standard dance of government, one branch vying for leverage over the other in an effort to achieve compromise. Others claim either that Gov. Christie started this battle by ignoring a long tradition of renominating sitting Supreme Court justices, thereby politicizing and undermining the judiciary, or that Senate President John Sweeney is childishly punishing the governor for removing a justice he considered sympathetic to his causes.

Both arguments are wrong and overlook one key constituency in the equation – the voters.

But why bother with trivial details?

There are three basic points to the argument that the Senate should stop holding up reviews and votes on the governor’s nominations. First, the residents of New Jersey deserve to have their courts, commissions and authorities functioning at the most effective level at a time when the state is fighting for its economic life, as well as its reputation – which plays no small role in its economic future.

Second, the appropriateness or inappropriateness of the ousting of Wallace and the replacement nomination of Anne Murray Patterson is entirely independent of the need to fill open positions at the Port Authority or Sports & Exhibition Authority, for example. Whether Christie was right or wrong on Wallace is irrelevant to these positions.

Third – and perhaps most importantly – the purpose of electing a new government is to have a new government. The voters of New Jersey elected Christie because they wanted a change in the direction of the state’s government – not just in its statehouse. Voters elected an administration, not just one man. Christie deserves to be able to name men and women whom he feels will best follow a philosophy he laid out to the voters when he campaigned.

That does not mean the Senate should abrogate its responsibility to properly vet the governor’s nominees and bring them to the full Senate for a vote. It just means they must do both rather than neither. Nor does it mean that any governor should undermine the judiciary branch for the benefit of his or her political philosophy. If the clearly defined system of nomination, review and vote is followed, that should not be a concern. After all, the U.S. Supreme Court survived a so-called stacking of the court more than 60 years ago.

Earlier this year Christie promised to significantly rein in the state’s runaway boards and commissions that spent $1.8 million lobbying state government in 2006-2007 and employ nearly 750 people earning more than $100,000 annually, according to the state’s comptroller and Inspector General, respectively, as reported in the Star Ledger. Executive Order 40 eliminated 60 boards and commissions, a great step toward honoring that promise.

Those boards and commissions that remain need to be properly led and the governor deserves to have that leadership exercised by people he selects – as long as they pass muster.

When the governor’s Judicial Advisory Unit resigned en masse over the Wallace decision, Christie shrugged and replaced the unit with seven new members, including retired Supreme Court Justice Peter Verniero. The pillars of the state’s judiciary did not topple. Let us show greater respect for our judges and other members of the judiciary than to think they can so easily be turned into puppets.

Similarly, when Christie in September made direct appointments to the State Ethics Commission that did not require Senate approval, there was no concern of undermining the commission or its mission to protect New Jersey residents from political corruption.

It is ironic that through all this bickering, one important act forced by the governor’s decision not to renominate Wallace and Sweeney’s refusal to consider Patterson has risen above petty politics. When Chief Justice Stuart Rabner appointed Judge Edwin Stern to temporarily fill Wallace’s vacancy, he selected a widely considered apolitical jurist and showed wonderful maturity.

The Senate should follow suit and move on Gov. Christie’s nominees.

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When I had the honor of becoming the Assembly Speaker in January, I made it clear property tax reform was going to be a top priority.

Property taxes are the tax without a conscience. They unfairly hammer those with the lowest incomes hardest and increase year after year after year, and the status quo could no longer remain.

As 2010 nears its end, I’m pleased that we continue moving closer to major reforms that will go a long way toward controlling property taxes, benefiting New Jersey residents and businesses alike for years to come.

New Jersey’s property tax woes were not created overnight and they won’t be fixed with sound bites and news conferences. Fist-pounding won’t cure New Jersey’s property tax woes.

What’s needed is thorough legislation that will actually bring long-term reform.

So far this year, the Assembly has moved nearly two dozen property tax reforms. The governor has signed some, including major bills to save local governments money by revising public worker pensions and benefits and the bill to slice the 4 percent property tax levy cap to 2 percent.

Some of the bill’s we’ve advanced were included in the governor’s so-called tool kit, including legislation sponsored by Assemblywoman Pam Lampitt and Assemblyman Nelson Albano to limit unused sick leave payouts for public workers.

Others are ideas generated by the Assembly Democratic caucus, such as legislation to ease overly burdensome master plan revision requirements. Still others remain works in progress that should be moved by year’s end, including legislation to reform arbitration and civil service rules.

Some – such as the 2 percent cap and pension and benefits reforms – are obvious. Others, though, will prove very helpful when it comes to controlling property taxes, even if they haven’t been as highly touted.

For instance, a law sponsored by Assemblywoman Connie Wagner and Assemblyman Upendra Chivukula will clarify state government’s responsibility for funding the evaluation of special education children, saving local school districts – and thus property taxpayers – money.

We continue to work through the governor’s ideas, but of the 22 bills tied to the governor’s ideas, 15 require fiscal notes so the public will have full knowledge of their potential impact.

So far, the administration has submitted three fiscal notes to nonpartisan legislative staff. We look forward to continuing to work with it to accomplish our shared goals.

But there’s one thing we must keep in mind – no matter what bills are approved, nothing can be done to undo the damage wrought by the governor’s decision to cut state aid to schools and municipalities and eliminate property tax relief rebates for 2010 and slash them for next year.

The property tax accounts for more than 40 percent of total state and local tax revenue in our state, compared to a national average of about 30 percent. State aid and rebates have helped ease that burden, so massive cuts in each do nothing but increase the heavy load on hard-working New Jerseyans and businesses.

This is especially true for middle-class and lower-income residents. Households with incomes in the lowest 20 percent pay 9.2 percent of their earnings toward property taxes, while the wealthiest 20 percent pay 3.6 percent of their income.

We tried to alleviate that somewhat by asking millionaires to pitch in and help provide property tax relief to senior and disabled citizens, but unfortunately the governor and Republicans didn’t agree.

As we move forward, we have to keep in mind that whatever progress we make legislatively can easily be erased by ill-advised policies that continue pouring a heavy tax burden onto working class New Jerseyans and businesses. That’s why the thorough effort we’ve undertaken is the right approach.

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New Jersey is making national headlines and, for the first time in a very long time, it’s for the positive. The state’s Republican legislators have teamed with popular reformist Gov. Chris Christie and, together, we are ushering in an era of much needed government reform at both the state and local levels.

In July, Gov. Christie signed into law a historic bipartisan 2.0 percent annual cap on local government spending which will guarantee permanent property tax relief for New Jersey taxpayers, who pay the highest property taxes in the nation.

Since 2001, spending at the local level has increased 69 percent from $26.5 billion to an estimated $44.7 billion. Taxpayers bore the brunt of that surge in government spending, with property taxes growing an astonishing 70 percent from 1999 to 2009. The average New Jersey household now pays $7,281 a year in property taxes.

The Tax Foundation estimates that at 11.8 percent of income, New Jersey’s state and local tax burden percentage is the highest in the country. This is well above the national average of 9.7 percent.

The new hard cap will ultimately put an end to skyrocketing property taxes. Cap 2.0 is the most important initiative in Gov. Christie’s government reform agenda, but when he first proposed the tax levy cap, he told the Legislature the cap will not work unless local government officials have the necessary tools to rein in spending.

Republicans understand that local governments are facing the same difficulties we are facing at the state level – depressed revenue, reduced aid and fewer resources. In order to control property taxes, county governments, municipalities and school districts must look inward and conduct the same rigorous reviews of services and programs the Christie Administration is performing in state government.

That, along with Gov. Christie’s Property Tax Reform Tool Kit, a package of bills that call for arbitration, civil service, collective bargaining and employee pensions and health benefits reforms and mandate relief, are the only viable, practical solutions to controlling runaway Assemblyman Alex DeCroce (R-26), Assembly Republican Leader Era of Government Reform Underway property tax rates. When Gov. Christie first proposed the Tool Kit, he made it clear he was willing to work with both parties in an effort to move the kit forward.

To date, however, the Democrat-controlled Legislature has taken minimal action on the legislation. When they had the opportunity – and they have had several – to post property tax reform legislation for a floor vote, they instead either cancelled scheduled committee hearings or posted bills on non-priority issues.

When they finally took a step toward arbitration reform in October, Assembly Democrats ignored a Republican-sponsored bill that called for a hard cap on arbitration awards and instead passed through committee their version of an arbitration bill which lacked substantive reform. The bill never made it to the General Assembly floor.

No one can dispute that the state’s economy is in crisis. Excessive taxation, spending and borrowing have crushed economic growth and job creation. Public sector job growth during the past 10 years has far exceeded private sector jobs. At the center of this storm are unrelenting property tax rates which contribute to New Jersey’s unfriendly business environment.

Republicans know that in order to attract businesses, entrepreneurs and companies need long-term predictability regarding the fiscal health of our state. We need to get government out of the pockets of our taxpayers and business community. This begins with fundamental reform of government at all levels. We must get our fiscal house in order and that’s why the governor’s Tool Kit is a must.

Neither the governor nor Republicans claim any one aspect of the reform plan is a cure-all, but taken collectively it will help fix the problems left behind by the previous three Democrat administrations. It also won’t happen overnight. It will take time to see the fruits of our labor.

The road ahead of us is long, but we must stay the course and not waste this golden opportunity to make New Jersey affordable again for our families, business community and future generations.

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Reardon Communications Group (RCG) of Mountainside recently celebrated its 5th anniversary. The full-menu business communications firm was founded by corporate communications veteran Christopher Reardon after a 20-plus-year career in the publicly held sector. Having grown tired of a business arena tethered to the whims of Wall Street, Reardon in 2005 decided to return to his roots and what he does best – writing, or story telling.

RCG’s clients span a variety of business sectors as well as the nonprofit areas. The company also partners with several advertising agencies, graphic designers and web site designers throughout North-Central New Jersey. In addition, Reardon serves as editor of the monthly newspapers Inside Business, affiliated with the Gateway Regional Chamber of Commerce, and Business Edge, which is affiliated with the Morris County Chamber of Commerce.

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Community Access Unlimited members, staff, family and friends recently helped raise more than $30,000 for the agency and its programs and services at the 2010 Ira Geller Memorial Walk-A-Thon. More than 325 walkers took part and the walk was supported by more than two dozen local businesses.

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Realm Designs, Inc., of Warren, NJ, recently was recognized for its integral role in helping to create a uniquely authentic escape into the charm and elegance of Old World Portugal. The interior design firm was cited for its design and implementation work at Portuguese restaurant Solar do Minho in Roselle Park, earning the Bronze Award for Design Excellence in the hospitality category of the 2010 biannual Design for Excellence Awards competition of the New Jersey Chapter of the American Society of Interior Designers (ASID).

Solar do Minho was created as a tribute to the heritage of the owners’ native Portugal, with a passionate commitment to authenticity. Shortly after its opening, NJ.com described the restaurant as “a grand, sweeping classic.” Realm Design served as interior designer for Solar do Minho’s restaurant, bar, two banquet hall areas, bridal suite, and lobbies, hallways and restrooms.

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Accounting firm Fazio, Mannuzza, Roche, Tankel, LaPilusa, LLC, in Cranford announced that Cohen, Doren, Addeo & Co., LLC joined the firm effective October 1. The combined firm will practice under the name of Fazio, Mannuzza, Roche, Tankel, LaPilusa, LLC, and will have offices in Cranford, Bayonne and Jersey City.

The firm also participated in its 2nd Alzheimer’s Association Jean Day, supporting firm member Ruthann Santangelo. The Alzheimer’s Association is the leading global voluntary health organization in Alzheimer care and support, and the largest private, nonprofit funder of Alzheimer research. FMRTL members were encouraged to wear denim in exchange for making a donation on behalf of the cause.

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Berkeley College recently received the Outstanding Employer Award for its Healthy Living program from the New Jersey Business and Industry Association at its 2010 Awards of Excellence program. The award is presented to companies that demonstrate a creative and forward-thinking approach to managing their human resources. Berkeley College was one of 11 award recipients.

The college also recently has made a number of appointments. Edwin Hughes was named vice president, student development and campus life; Al Widman was named chair, online, School of Business; Marilyn Kulik was named chair, online, School of Liberal Arts; and Beth Coyle was named senior vice president, administration.

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The law firm Lindabury, McCormick, Estabrook & Cooper recently announced that Paula Clark, Silvia Courtney and Scott Zucker have joined the firm as associates. All three are graduates of Seton Hall University School of Law. Prior to joining Lindabury, Zucker spent a year as a law clerk to New Jersey Superior Court Judge Thomas Lyons.

Clark/ Courtney/ Zucker

The firm also participated in the 15th Annual Lee National Denim Day fight against breast cancer, raising more than $400. Employees were encouraged to wear denim in exchange for a $5 donation to the Women’s Cancer Programs of the Entertainment Industry Foundation (EIF).

Employees (from left to right) Paula Clark, Ken Sorriero, Diane Stevens, Denise Del Priore and Vernon Starks.

 

 
 

 

 

 

 
 

 

 

 

 

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The Platform for Progress is a coalition of New Jersey businesses and organizations working in partnership with the New Jersey Chamber of Commerce. The coalition is dedicated to bringing solutions to long-term challenges our state is facing in six key areas, Economic Development, Education, Environment, Government Reform, Health Care and Transportation.  Follow the above link to find out more.

 

 
 
 
 
 
 

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