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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.
Top




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.
Top

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.
_____________________________________________________________________
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.
Top
  


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.
Top 




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
Top




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.
Top




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.
_________________________________________________

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.
_________________________________
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.
_________________________________
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.
_________________________________

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.
_________________________________
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.
_________________________________
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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