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Schering-Plough and New Jersey Catch Some Rays
By Rod Hirsch
Parking decks continue to sprout
across New Jersey like so many cactus plants in the
Arizona desert. Yet today these drab, monolithic
concrete structures are more akin to grey rainbows
anchored in pots of gold.
Parking decks – and other
similarly built structures – hold bright promise for
helping New Jersey meet the goals of its ambitious
Energy Master Plan – to reduce energy consumption by
20 percent while generating 30 percent of its energy
needs from renewable energy like solar and wind
power by 2020.
The rooftops of these
multiple-story structures provide an ideal platform
for the installation of environmentally friendly
solar panels used to generate electricity, much like
the endless stretches of barren desert floor in the
Southwestern United States are being transformed
into solar farms that produce electricity.

Approximately 22,000 solar panels
on the rooftops of seven buildings at the Schering-
Plough Summit campus will produce 1.7 megawatts of
electricity, the equivalent of nough energy to power
200 homes during peak hours.
Global health care giant
Schering-Plough last month became the latest New
Jersey company to “go solar.” The company literally
threw the switch on one of the largest solar energy
systems in the United States and the largest in New
Jersey, an innovative network of 22,000 solar panels
installed on the rooftops of seven buildings at its
Summit campus.
The 1.7 megawatt system,
installed over a 15-month period by PPL Renewable
Energy, is expected to deliver about 12 percent of
the energy needs at the Summit facility annually.
That is the equivalent of enough electricity to
power 200 homes during peak hours.
While helping to reduce reliance
on more conventional fossil-based fuels, the solar
project also takes advantage of an innovative
commodity brokerage system that will trade SRECs –
Solar Renewable Energy Credits – and replace a
costly rebate program that had helped launch solar
initiatives in the state with a robust free market
system.
The project also embodies a
classic win-win situation for a partnership forged
between private enterprise and state government,
with tangible economic and environmental benefits.
It is a symbiotic business and
environmental relationship that benefits all
partners – Schering-Plough, PPL, New Jersey and, in
a larger sense, the global community.
Power generated by the grid will
help the pharmaceutical giant’s bottom line by
reducing and helping to manage energy costs.
PPL will derive income from its
investment, as Schering Plough is under contract
with the company to purchase energy for the next 15
years.
“It’s good for the bottom line,”
said Fred Hassan, Schering-Plough chairman and
CEO. “It’s also a good model for what we might see
in this country as we work on energy conservation.”
The Summit solar system is
expected to reduce greenhouse emissions by 3 million
pounds of carbon dioxide annually. That is equal to:
• Removing 250 cars from the road
• Saving 150,000 gallons of gasoline
• Reducing oil imports by 3,000 barrels
• Not using 52,000 propane cylinders for home
barbecues
• Planting 123 acres of pine forest
Throughout the state, in downtown
shopping districts, train stations, college
campuses, hospitals, shopping malls, casinos,
industrial parks and corporate campuses, parking
decks and other sprawling buildings with substantial
rooftops offer more partnership opportunities for
companies like PPL Renewable Energy, which has
several other solar and wind-powered installations
in New Jersey and other northeastern states.
Thanks in large part to
installations similar to the Schering-Plough
project, New Jersey is at the forefront of
solar-power; only California has more.
“Here in the state of New Jersey
we are number two in solar installations in the
United States,” said Joseph Fiordaliso, a
commissioner on the state Board of Public Utilities.
“We’re number seven in the world.
Per square mile we have more solar installations
than any state in the union.”
Added Gov. Jon Corzine, “New
Jersey has been a national leader in solar energy
programs, and this private sector project is a fine
complement to our own initiatives as we work to
secure and strengthen the state’s energy future.”
“Managing energy well is critical
to our operations,” said Tom Pagliuco, energy
director for Schering-Plough. “We are making our
consumption of energy ‘greener’ by using renewable
sources like solar and by reusing byproduct heat
created in generating electricity on our sites."
“However, reducing overall energy
consumption is our main goal. We believe the
greenest kilowatt is the one not used.”
The BPU has enabled companies
like PPL to more aggressively pursue solar
installations by approving the transition of New
Jersey’s solar program from an up-front rebate
system to a commodity market based upon Solar
Renewable Energy Credits (SRECs).
“What the state has done is to
create and support a market for renewable energy
credits,” explained PPL’s John Steckel. “We’re not
getting any money from the state for the Schering
project, but what the state did do was create the
market for SRECs so that the value of SRECs replaced
the need for grants to build projects. The state
provided a revenue stream that made the project
economically feasible. That’s why there is as much
solar in the state.”
Traditionally, solar had been
funded by rebates and grants,” Pagliuco explained.
“SRECs were a smaller piece of the puzzle. The state
knew they couldn’t do it with rebates alone but to
fund that level of activity were looking for a more
market-driven approach. The state went with a solar
REC market-driven approach in 2007. That’s when we
were first approached by PPL about the project.”
Under the program, solar system
owners earn SRECs for solar electricity production,
which are registered and traded among electricity
suppliers and other buyers within an established
infrastructure. Electricity suppliers are required
to buy the SRECs, or pay a Solar Alternative
Compliance Payment in lieu of the purchase.
The SRECs allow renewable energy
producers to raise cash. One SREC is equivalent to
1,000 kilowatt hours (KWh), or one megawatt-hour (MWh).
SRECs represent the renewable
attributes (clean energy benefits) of solar power
generated from a solar electric system, and they can
be bought or sold separately from the electricity,
thus providing the solar system owner with a source
of revenue to help offset the cost of the system
installation.
The BPU expects to phase out
rebates by 2012 and rely on SREC-based financing to
spur private investment and market development for
solar technologies.
The Summit project will help push
Schering-Plough closer to its goal of reducing
energy consumption 10 percent at its facilities
worldwide by 2013.
Schering-Plough’s ambitious
global strategy has earned recognition from the
United States Environmental Protection Agency (EPA).
In March, the EPA named Schering-Plough a 2009
ENERGY STAR Partner of the Year, which recognizes
corporate efforts to use energy efficiently in
facility operations and to integrate superior energy
management into overall organizational strategy.
The EPA cited the company’s
Global Energy Management Team, which develops global
policies, programs and initiatives aimed at energy
reductions.
Progress is already being made.
Worldwide Schering-Plough managed a 3.7 percent
reduction in energy usage last year aided by a
web-based data management system that monitors and
controls 16 million square feet of facility space
worldwide.
“Three years ago Schering-Plough
initiated a global strategic energy management
initiative to build a foundation for an
energy-efficient future,” Hassan said. “This project
is a major achievement of that initiative. It
represents the achievement of three objectives –
savings, sustainability and societal benefit.”
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Chambers of
Commerce Offer Food for Thought in Down Economy
By Karen Miller
In the early 1900s the leading
packaged cereal manufacturer in the United
States was Post. Lagging behind in the number two
spot was a lesser known company, Kellogg.
When the Great Depression hit,
Post did the predictable – decreasing expenses by
cutting back on marketing – while Kellogg did the
opposite, doubling its marketing budget.
By 1933, Kellogg’s profits had
increased almost 30 percent and the company had
taken the lead as the number one cereal manufacturer
– a place it still holds today.
As the economy began to slow in
2008 Jim Coyle, president of the Gateway Regional
Chamber of Commerce, wondered if the business
downturn would mean that many area business would
follow the example of Post, cutting back on their
marketing by cutting out their chamber membership,
or Kellogg, increasing marketing to expand their
sales. The answer was not long in coming.
“It’s been pretty amazing,” said
Coyle. “(Membership) started slowly in 2008, then
picked up dramatically this year.”
Instead of contracting,
membership at the Gateway has grown each month and
now stands at about 1,500, an increase of about 200
over last year.
The numbers tell the tale. In
February/March of 2007 17 new members enrolled in
the Gateway, 20 new members joined in February/March
of 2008, and 34 new members enrolled in the same
period this year. In addition, the Gateway Chamber,
the largest business-to-business association in the
New York/New Jersey region, continues to maintain a
retention rate of about 95 percent.
But numbers are only part of the
story. People and benefits are the real explanation
behind the organization’s growth, according to
Coyle.
Marcy Sasso, director of
operations for the Ambulatory Surgical Center of
Union County, “had heard rumblings about how good
the Gateway Chamber was for awhile,” she said. Sasso
looked into the dues-versus-benefits ratio and
decided to enroll a few months ago.
“In times like these it only
makes sense for businesses to band together to
support one another,” Sasso said. She found the
chamber to be a great place to network and also
found other services she needs for her business.
“I saw some work done by Blu Hand
Design Studio at the Chamber and I asked them to
design a poster for us,” she said. Now Sasso is
encouraging other healthcare businesses to
join the chamber.
Not every chamber of commerce is
doing as well as the Gateway during the downturn.
“Membership is somewhat flat,
which we consider a positive during this time,” said
Kevin Friedlander, senior vice president of
communications for the New Jersey Chamber of
Commerce.
While some businesses have cut
back on marketing, including budgets for
organization memberships, many others, both current
and prospective members, understand the value of
face-to-face networking chambers offer.
Mick Fleming, president of the
American Chambers of Commerce Executives, a national
association for chamber of commerce executives, says
that trends in membership vary from region to region
and even chamber to chamber. Chambers that give the
most value for the dollar are retaining more members
in hard times than those that give less, he said.
“It used to be that many
companies joined the chamber just for the concept of
civic rent,”
Fleming said. “They felt an
obligation to have that chamber sign in their
window, just to support the organization in
principal. But that has been changing in the last
few years. Chambers must earn the respect of the
members.”
For example, the Gateway Chamber
offers a wide variety of meetings at various
locations and times of day.
“We have over 200 meetings a
year. That’s almost daily networking opportunities,”
Coyle said.
The Gateway is an umbrella
organization for 14 other chambers and business
groups, including local chambers in communities such
as Springfield, Clark and Linden and specialized
groups such as a women’s business group, a group for
veterans and even an Irish business group. There
also are committees that work with municipal
governments and an education committee that meets
with local officials from both area universities and
local school boards.
The Gateway’s Affinity program
also offers discounts for members at a variety of
businesses.
That program was particularly
attractive to new member Lynette Walcott of Cavagna
North America, Inc. Cavagna joined the Chamber in
February and has already “reached out to a number of
businesses to see where we can develop partnerships
and take advantage of discounts,” Walcott said. In
fact, the cost savings Cavagna receives through the
Affinity Partnership program will help make the
chamber membership pay for itself.
For businesses that want to
follow Kellogg’s example and come out the other side
of the recession on top, joining a chamber of
commerce is a cost-effective way to develop new
business relationships, according to chamber experts
and business people.
“I tell everyone I talk to about
the Gateway Chamber,” says Sasso. “It just makes
good sense to join.”
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Gran'ther
Pendleton Returns
By Andy Gole
Gran’ther Pendleton has been a
treasured literary favorite since childhood. Dorothy
Canfield Fisher tells his story in Heyday of the
Blood. Everyone should know Gran’ther and his
zest for life – particularly in these challenging
times.
At the outset, Gran’ther’s great
grandson Professor Mallory – nearing retirement –
talks with his unhappy young assistant.
The younger man started,
“Why-Why-“ his face twitched. He went on
desperately, “I’ve lost my nerve, Professor
Mallory.”
“What do you mean – nerve?” Asked
Mallory, challenging impatience in his tone.
The younger man started, “Why,
Why” His face twitched. He went trembling so the
papers he held fell on the floor. “I worry – I
forgot things – I take no interest in life. The
psychiatrists tell me to relax, to rest. I try to,
but it’s no good. I never go out – every evening I’m
in bed by nine o’ clock.”
To inspire his assistant, Mallory
tells of an extraordinary experience with Gran’ther
at the turn of the century. Gran’thur – 88 years
old, in very poor health – worried everyone in the
extended family, who tried restricting his
activities appropriately.
Gran’ther ignored obvious and
sound medical advice, did what he pleased and:
“He used to remark triumphantly
that he had now outlived six doctors, who had each
given him but a year to live, ‘and the seventh is
going downhill fast, so I hear!’”
Professor Mallory recounts a
glorious childhood day, when he and Gran’ther stole
off to the county fair after being forbidden by his
parents. Here’s a taste of that day, a description
of the horse race:
“If I live to be a hundred and
break the bank at Monte Carlo three times a week,”
said Mallory, shaking his head reminiscently, “I
could not know a tenth part of the frantic
excitement of that race or of the mad triumph when
our horse won. Gran’ther cast his hat upon the
ground, screaming like a steam calliope with
exultation as the sorrel swept past the judges’
stand ahead of all the others, and I jumped up and
down in an agony of delight which was almost more
than my little body could hold.”
Mallory recounts Gran’ther’s view
on fear:
“‘I’ve larned a lot about the way
folks is made. The trouble with most of ‘em is,
they’re ‘fraid-cats!…The only way to manage this
business of livin’ is to give a whoop and let her
rip!’”
Mallory concludes with
Gran’ther’s recurring motto:
“Live while you live, and then
die and be done with it!”
Gran’ther is a fictional
character. My father-in-law is a flesh-and-blood
relative of Gran’ther.
Grandpa Charles, now 85 and
largely retired, has a unique business in upstate
New York. He purchases merchandise and drives into
the countryside to migrant work camps. He is the
store.
His health has been failing for
many years, but he continues to do what he loves –
to the extent he can – going on the road, selling
merchandise, against medical advice.
Last fall, Charles was
hospitalized for a heart attack; his kidney function
declined dangerously. We drove to Rochester to say
goodbye.
He was ashen, largely confined to
bed.
When he and I were alone in the
hospital room, I asked him how he kept mentally
alert. He told me he was planning his next sales
trip. I felt this kept him going, thinking about
getting back on the road.
We were concerned he wouldn’t
last the week.
Well, he did last the week. He
returned home, his kidneys regained some
functionality, and within a few months, he started
getting out again.
On Mother’s Day my mother-in-law
returned from a morning walk and passed Charles
taking off in hiscar, going on the road to sell –
against medical advice.
We waited all day for his safe
return. When he returned safely, I was reminded of
Gran’ther’s motto:
The only way to manage this
business of livin’ is to give a whoop and let her
rip!
© Bombadil
LLC 2008
Andy Gole has taught selling skills
for 13 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 TM,
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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Executives Staying More Connected During
Vacations
Out of sight does not necessarily
mean out of mind for vacationing executives,
according to results from a recent business survey
of marketing and advertising executives. The survey
showed that 61 percent of those polled said they
check in with work at least once a day while on
break.
That compares to 47 percent in
2006 and 38 percent in 2001.
The national study was developed
by The Creative Group, a specialized staffing
service providing creative, advertising, marketing
and web professionals on a project and full-time
basis, and conducted by an independent research
firm.
Advertising and marketing
executives were asked, “How often do you check in
with work while on vacation?”
“For better or worse, technology
has made it easier for professionals to check in
with the office from just about anywhere,” said
Megan Slabinski, executive director of The Creative
Group. “While periodic updates may provide peace of
mind, being overly connected can detract from the
benefits of time spent away from work.”
Slabinski said careful planning
can help employees disengage while on holiday.
“Professionals should prepare for
their vacation as if they won’t be available, rather
than planning to check in,” she said. “Handing off
projects ahead of time can help workers come back
genuinely refreshed.”

Tips to help professionals make a
clean break from the office include:
• Put someone on
point – Managers should select someone whose
judgment they trust to make decisions in their
absence. It’s important to give the point person the
responsibility and authority to make judgment calls.
• Establish ground
rules – If you need to check in, set specific times
when you’ll be checking in, rather than having
people contact you throughout the day.
• Don’t leave them hanging
– Use out-of-office functions to let your clients
and customers know when you’re away, and provide the
names and contact information of colleagues to
contact in your absence.
• Let it go – Delegate
projects that must continue in your absence. Be sure
to let coworkers know where to find key materials.
• Bring in reinforcements
– Hiring temporary or freelance professionals to
bridge gaps can help projects stay on course while
you’re gone.
• Consider remote locales
– If you have a hard time breaking away from the
office, consider vacationing in a spot that doesn’t
have cell phone or Internet access.
Source: The Creative Group
Results of the survey were
based on 250 telephone interviews – 125 with
advertising executives randomly selected from the
nation’s 2,000 largest advertising agencies and 125
with senior marketing executives randomly selected
from the nation’s 2,000 largest companies.
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With a foundation anchored in more than 80 years of family
tradition, Bayway Lumber is built on a reputation of customer
service and responsiveness that rises above expectations like
the world-class structures it helps create.
It is a reputation built on honesty, quality
and value and borne out by Bayway Lumber’s commitment to
responding to customer needs of all sizes – from the local
contractor and municipality to world-class builders and the Port
Authority of New York/New Jersey.
Bayway Lumber is known throughout the
tri-state region and beyond as a premiere supplier of building
materials, doors and hardware. The company occupies 50,000
square feet of manufacturing and storage space, including five
warehouses, a walk-in showroom and a 9,000-square-foot
state-of-the-art manufacturing shop for wood and metal doors and
metal frames.
Bayway Lumber serves the commercial building,
municipal and industrial sectors, as well as small and
medium-sized contractors – providing “a box of screws to a
truckful of sheetrock,” according to its president, Robert
Dattilo.
Yet it is Bayway’s customer service that sets
it apart from other companies. Customers flowing into Bayway’s
showroom each morning are greeted by friendly faces and familiar
voices.
“I treat my employees and customers the same
way, as family,” Dattilo said. “I try to create with the
customer the same tradition you have with your family. I want
them to feel comfortable.”
Bayway Lumber combines that sense of family
values ingrained by the family’s great grandfather and company
founder, John Dattilo, with a keen business knowledge developed
over the years by Robert Dattilo and his brothers Dennis and
Jeffrey.
“I started as a kid, 12 years old, working in
the shop and yards,” Robert Dattilo said. “I did window glazing,
helped unload trucks, put lumber away and later worked in sales,
at the counter and in ordering lumber.”
Bayway Lumber remains as committed to
unrivaled customer service and community involvement as when the
company opened its doors in 1928.
“All business today is driven by economics
and price,” Robert Dattilo said. “We try to enhance that with
the building of trust, honesty and family.”
Education also plays a significant role in
allowing Bayway to build customer loyalty, according to Dennis
Dattilo. He believes many consumers mistakenly view independent
suppliers as being more expensive than national chains. Being
part of the True Value cooperative system of buying allows
Bayway Lumber to supplement its customer service with the value
that comes with volume wholesale buying of large co-op programs.
“We have a cooperative of over 3,500 stores,
allowing us to buy as competitively as the large retailers,”
said Jeffrey Dattilo.
While Bayway Lumber has been at the same
location just off the Bayway Circle in Linden since its
founding, not everything has stayed the same. The company’s
embrace of technology has allowed it to become a national and
now global supplier.
“Technology is what brings you into the
future,” Robert Dattilo said. “The name of the game is getting
back to customer requests as quickly as possible for the best
service. A customer can reach anyone in this business 24/7.
That’s unusual nowadays, but that’s what we do to develop
clientele.”
That responsiveness has taken on many
different forms for Bayway Lumber and the Datillo family. Robert
Dattilo was at the World Trade Center in 1993 when a terrorist
bomb exploded on the other side of the wall. He received a
citation of bravery for helping the injured. Eight years later
Bayway Lumber once again was tapped by the Port Authority during
the 9/11 crisis and was among the leaders in responding to the
disaster.
We were the first convoy of trucks that made
it into the disaster site,” Robert Dattilo said. While those
days were remarkable, Bayway Lumber’s response was typical.
“With our heritage of five generations in
this business, we will continue to instill that feeling of
friendship, family and benevolence with every one of our
customers,” he said. “That’s our promise.”
Bayway Lumber can be reached at 908.486.4480
or www.baywaylumber.com.
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Recession Disables Special Needs
Workforce
By Christopher Reardon
The tractor trailors pulling into
the Occupational Center of Union County are a
reflection of the down economy gripping the nation
and the far-reaching impact the recession is having
on many levels. In better times three trailors might
offload at the Occupational Center, a vocational
training facility for people with disabilities in
Roselle that specializes in high-volume, light-hand
assembly and packaging of consumer goods. These
days, more often than not only one trailor pulls in.
That means less work for the 250
full- and part-time individuals employed by the
Occupational Center. It also reflects a wider pool
of ripples, according to Mark Lasky, the center’s
president.
“The last couple months have been
a bit of a struggle to fully employ our people,”
Lasky said. “We have a tradition of full emplopyment.
Now we don’t have a backlog of work. Our leads begin
to say call us back next week.”
The Occupational Center’s
clientele includes companies that supply the big box
chains and price clubs. Lasky sees imports slowing,
orders dropping and inventories not being
replenished, resulting in less work coming through
his doors.
“One company kept 30 or 40 (of
our) people busy year-round,” he said. “Now they’re
going under.”
Individuals with disabilities and
special needs are among those in the work force
being hardest hit by the recession, according to
Lasky and other human services experts.
The federal Office of Disability
Employment Policy reported that in April the
unemployment rate for those with disabilities was
12.9 percent, compared with 8.4 percent for persons
with no disability.
In New Jersey the Corzine
administration is proposing to cut $3.8 million in
funding for non-profit agencies that help train and
place people with disabilities in the workforce, a
reduction that will further hamper the efforts of
organizations like the Occupational Center,
according to Lasky.
In addition to its in-house
vocational training, the Occupational Center also
places candidates into the workplace and provides
transitional support. At any time the center might
have 40 to 50 individuals working on-site at
companies, and Lasky is finding those placements
harder to come by, as well.
“We’re having a little bit of a
hard time finding entry-level positions,” he said.
“Due to layoffs throughout the state there are more
people qualified on paper.”
Down the road from the
Occupational Center the Cerebral Palsy League also
is feeling the pinch of a slower economy. The League
operates adult services that include in-house work
training and a vocational center.
“We operate within
a larger community and many of the organizations
that sub-contract with us are declining in
activity,” said Louis Brigando, associate executive
director. “Consequently less work is subcontracted
to us.”
The Union County
Educational Services Commission helps special needs
individuals aged 16-21 transition into the work
environment, placing students from its own five
schools and four other Union County school districts
with employers.
The commission
places students in entry-level positions, attempting
to find a good match that benefits both employer and
employee.
“The whole idea of
doing it in school is so when they come out as young
adults they are trained for the work force,” said
Jim Quinn, transition coordinator at the commission.
Quinn has seen a
reduction of available spots for students as a
result of the slow economy.
“I approach
smaller businesses and they tell me they’ve laid off
people and really don’t have any work,” Quinn said.
Hard times seem to
hit individuals with disabilities and special needs
hardest, experts agree.
“Persons with
disabilities experience a curious paradox,” said
Brigando. “Specifically, the benefits of good
economic times are often attenuated in the face of
higher competition and productivity demands. On the
other hand, the consequences of stressed economic
times are often accelerated, meaning that there are
clearly fewer opportunities and major likelihood of
reduction of support and services essential to
maintaining viable employment.”
When the loss of
work opportunity that comes with a tight economy is
matched with cuts in state funding supporting
non-profits working on behalf of people with
disabilities and special needs, the repercussions of
the single trailer at the Occupation Center are
magnified for this sector of society.
“The safety net is
going to begin to break down as more and more people
look strictly at the dollars,” Lasky said.
As the safety net
unravels, so does an integral part of the lives of
people with disabilities and special needs.
“Working is
essential to the quality of life,” Brigando said.
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Inside Views

Irrational Thinking Won’t Produce a Rational
Budget
Last month, on April 15, tax day,
I attended a presentation by Assemblyman Joe Cryan
(D-20) on next year’s budget. It was an excellent
presentation where Assemblyman Cryan outlined the
efforts of the Corzine Administration to produce a
rational budget in the middle of the worst recession
in generations. The Assemblyman described it as a
budget of sacrifice and cutback, furloughs and belt
tightening.
So far so good.
Then came the kicker in his
presentation. Even with all this sacrifice and belt
tightening the state government needs more revenue,
i.e. a tax increase. The Assemblyman said don’t
worry, however, taxes would be increased for only
the top 1 percent of income earners, those making
more than $500,000 per year.
Cryan said there were fewer than
30,000 filers in this category, and they could well
afford to ante up a bit more to keep the state
solvent. And it had been shown by Governor McGreevy
that the wealthiest don’t flee the state when their
taxes are raised.
Assemblyman Cryan is also the
chairman of the Democratic Party for the state, and
what he said was great politics. First he appealed
to all of us with the talk of cutbacks and
sacrifice. Then he said that the pain of the tax
increase would be limited to only 1 percent of the
population. The other 99 percent of us get off
scot-free.
Good politics this may be, but it
is bad policy. Our politicians seem to forget that
the annual variation in income is the greatest for
that top 1 percent of earners. In other words, when
times are good, these folks make a lot. This floods
government coffers and leads to increased spending.
Everyone is happy in these fat years.
In the lean years, however, the
folks at the top make a lot less, and the government
that is used to feasting on their largesse is
suddenly put on a diet. Remember, nearly half of all
state income tax revenue comes from this measly 1
percent of earners.
Thus a drop in income of just 10
percent for these earners results in a drop of 5
percent in state income tax revenue. Given that much
of the income in this group is related to investment
performance, it is easy to see why we are facing
such a deep hole.
All we have to do is take a look
at our leader, Governor Corzine. In 2007 the
Governor had investment income of $11.8 million. His
contribution to the state through income tax was
just more than $1 million.
In 2008, however, the Governor
lost nearly $3 million. That means that his state
and federal taxes are zero. Here’s one of the
richest guys in the state and he isn’t paying
anything. A lot of the top 1 percenters are in this
same fix. Investment revenues are down, bonuses are
down and tax obligations are down.
On April 15 I mentioned to
Assemblyman Cryan that I would be surprised if the
tax collections that they expected for 2008 were
accurate. I expected them to be way short.
And way short they are, with the
shortfall now estimated to be $1.2 billion for this
fiscal year. I would guess that this fact also will
necessitate a new estimate of 2009 revenues. The
economy is not recovering and large income growth in
any sector certainly is not on the horizon.
So, what will they do? Will they
see an even greater shortfall and raise taxes on the
most volatile even more? If more tax revenue is
needed, from a policy perspective, it would be much
more sensible to raise taxes for a far greater
number of people, maybe the top 50 percent of income
earners.
We are, however, dealing with
politicians. Why would we ever expect anything
sensible to come out of them?
James Coyle
President
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Where the Chamber Stands...
No Accounting for Accountability
The New Jersey Legislature is
considering a bill that would prohibit an employer
from looking at a job applicant’s credit history or
finances when deciding whether or not to hire that
individual.
What’s next, outlawing resumes
for being intrusive and labeling typing tests as
genetically biased?
Sometimes it seems as if New
Jersey’s lawmakers want every business in the state
to pull up stakes and head to Pennsylvania or
Delaware. There can be no other explanation for the
never=ending parade of suffocating regulations and
laws that handcuff businesses in a state that
consistently polls among the least-business friendly
in the nation.
Now during the worst economic
downturn in 60 years the newest kick in the gut to
the state’s business community seeks to bar
companies from considering an applicant’s history of
paying their bills or their state of finances.
Specifically, A3804, introduced
by Assemblyman Anthony Chiappone (D-31), “Prohibits
job discrimination on basis of credit history or
financial status.”
Certainly any bill trumpeted as
being anti-discriminatory sounds like a good idea.
Certainly it is unfair for someone to be denied
employment because through no fault of their own
they have lost their job in a sour economy and have
fallen behind in mortgage payments and perhaps
medical bills.
Certainly that individual should
be protected.
The problem with A3804 is that
there already exists a law that does just that. The
federal Fair Credit Reporting Act (FCRA) ensures
that job applicants are protected from their credit
histories being used unfairly in denying them
employment.
Among other things, the FCRA
states a job applicant:
• Must be told if any information
in their credit report has been used against them to
deny employment;
• Has the right to know what is
in their file;
• Has the right to dispute
incomplete or inaccurate information and have that
information either corrected or deleted; and
• May seek damages from
violators.
Most important, under the FCRA a
job applicant must give consent for credit reports
to be shared with existing or potential employers.
Simply put, a job applicant can refuse to allow his
or her credit history to be revealed.
Yet A3804 seeks to extend this
protection so far as to make it impossible for a
potential employer to even ask to consider this
information, forcing them to hire blind and fill
positions in which a poor credit history might
indeed be relevant.
Few if any employers would use a
credit history as the sole determinant for a
decision to hire a candidate. Yet credit histories
are relevant because they reflect how people handle
their personal obligations.
An unemployed individual making
good faith effort payments on their bills while
seeking employment is viewed in a different light
than a person with five maxed credit cards or a
practicing doctor or lawyer living beyond their
means.
In addition, the personal
comportment that is often reflected in an
individual’s credit history takes on importance at
many different levels in the business environment. A
bank teller in serious credit card debt is a
liability no institution would be expected to carry.
Yet a department head or administrative assistant
with access to proprietary information valued by the
competition is no less a threat to a company’s
health. Is an individual with six-figure student
loan debt a sound choice for a student loan
management position at a college?
It is often noted that one bad
employee can cost a business more money than a good
employee can bring in. At a time when businesses
throughout the state are fighting for survival, it
is illogical to force employers to increase their
risk of hiring bad employees when sufficient
protection already exists for any job applicant.
Times are hard. Résumés are being
padded and work histories are being forged. Honest
job applicants are competing with those less so.
When a trust-worthy individual loses out on a job to
someone less scrupled, it is not only the honest
applicant who suffers. The employer and its
customers suffer, as well.
A personal credit history
reflecting short-term difficulties in no way
reflects dishonesty or desperation. However,
long-term trends may indeed be indicative of more
deeply rooted problems.
Job applicants deserve – and have
– the right to ensure their credit histories are
accurate and are being fairly used when evaluating
them. Employers have a right to perform that
evaluation.
Bill A3804 is a bad idea.
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U.S.
Rep. Frank Pallone, Jr.
(D-6) Chairman of
the House Energy and Commerce Subcommittee on Health
In 1994, when Congress last tried
to reform our nation’s healthcare system, I was
still a fairly new member of Congress serving out my
third term in the House. Fast forward 15 years and I
think it’s a useful exercise to ask, “What has
changed?”
My colleagues and I from the 1994
battle are still here. We are a little bit older,
but we are also a little bit wiser about how to
approach health reform. We have the benefit of
having a second chance and we have no intention of
making the same mistakes that were made during the
last go-round on health reform.
For example, in the House the
three committees that have jurisdiction over health
issues are working together in a unified fashion to
develop a single proposal based on the key
principles outlined by President Obama. This is a
stark contrast from 1994 when the three committees
were handed a legislative proposal from above in
which they had little or no input and went to work
on separate paths.
Even though it was early in his
first term, President Clinton’s health reform plan
came too late.
He had already spent significant
political capital on other priorities, like the
North American Free Trade Agreement, making it more
difficult to get healthcare reform across the finish
line.
Another major difference between
today and the 1994 debate is how various
stakeholders are positioning themselves now. Back
then, lines were drawn and many organizations and
interests took sides. The debate became polarized
and politicized, including the use of campaign-style
attack ads.
The attitudes and actions of
everyone involved, including the business community,
are completely different now. Industry
representatives, such as America’s Health Insurance
Plans and PhRMA, have teamed up with consumer groups
like Families USA and AARP. Similarly, groups
representing employers’ interests have joined forces
with unions.
They all recognize the importance
– even the imperative – of working together. They
understand that we all have a vested interest in
reforming health care. Businesses want healthy
workers who improve productivity. Workers want a job
that provides important benefits such as health
coverage for themselves and their families.
For businesses large and small,
health care costs are a growing expense. They have
become a costly burden for some and they make it all
but impossible for many small businesses to provide
health care to their employees. The cost of coverage
for businesses has increased by as much as 80
percent in the past five years alone. As a result,
one in five small businesses in New Jersey can’t
afford health insurance.
Businesses want workers who are
in good health, who don’t lose time to illness and
who don’t seek work elsewhere just to get health
coverage. The “cost” to businesses of not providing
coverage includes lost productivity.
The longer we debate this issue,
the longer healthcare costs continue to spiral out
of control and the longer Americans have to wait for
access to affordable and quality health care
coverage.
We need people who are willing to
take their seats and stay firmly planted as we
hammer out these details, especially on the most
controversial aspects of health reform.
There are many other details that
will need to be flushed out that require tough
choices on the part of patients, providers,
insurers, manufacturers and members of Congress. I’m
hopeful that we all have learned from our previous
mistakes and will continue to work together to
finally reform our nation’s healthcare system. We
literally can’t afford to let history repeat itself;
we may not get a third chance to do it right.
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By Sidney Blanchard
The writer and poet Karl Kraus
once said, “In case of doubt, decide in favor of
what is correct.”
The New Jersey Legislature is in
the unique position of doing both what is fiscally
wise – at a time when fiscal wisdom is nothing short
of imperative – and also what is morally correct.
The Legislature is considering a
bill to close five of the state’s seven institutions
for people with developmental disabilities. The
legislation, A3625/S2654 introduced by Assemblyman
Louis Greenwald, will more closely align New Jersey
with the national trend of moving people with
developmental disabilities out of institutions and
into the community while also more efficiently
allocating scarce budget dollars.
At a time when state leaders are
desperate for solutions to help close the projected
$1.2 billion budget deficit, this bill offers the
Legislature the chance to save money while also
doing what is correct.
First let’s look at the numbers.
Nearly 3,000 New Jersey residents live in
developmental centers at an annual cost of about
$225,000 each, or two to three times the average
cost of community living. By comparison, the cost
for providing community housing for members of
Community Access Unlimited (CAU) runs just $20,00 to
$80,000 annually.
New Jersey’s seven developmental
centers consume 31 percent of the $1.4 billion
budget of the Division of Developmental Disabilities
(DDD) while serving less than 8 percent of the
population served by the department. Closing five of
the seven centers and moving those residents into
community living will equate to a considerable cost
saving for DDD and the state.
So clearly the numbers support
closing New Jersey’s developmental centers. So does
our moral obligation to do what is correct, to
enable each member of society to live more
fulfilling lives.
Community living offers people
with developmental disabilities the opportunity to
live in their own homes while receiving the supports
they need. They contribute to the fabric of society,
in many ways financial – by paying rent or mortgages
and through income taxes when they work – and build
self-esteem.
This year at Community Access
Unlimited we are celebrating our 30th year of
helping people with disabilities and at-risk youth.
We began CAU in 1979 by successfully removing 20
people with developmental disabilities from
institutional living and integrating them into the
community. In our 30 years we have supported more
than 7,000 individuals, helping 3,000 people with
developmental disabilities to live independently or
semi-independently.
While it has been immeasurably
rewarding to provide this support for three decades,
equally important is that our business model works.
CAU was one of the first non-profit agencies in the
nation to see the federal low-income housing tax
credit as an opportunity to acquire property to be
used for community housing for its members. Today,
in addition to 55,000 square feet of commercial
space, CAU owns more than 200 units of housing
throughout Union County. Each year we assist more
than 3,500 individuals with all kinds of
disabilities.
Our core value and belief has
always been that all people can be independent
citizens participating in and contributing to the
community. One of our first members, Adelaide, spent
the first 22 years of her life in institutions and
foster care before coming to CAU in 1979. Today she
lives independently and is a member of our board of
trustees, an officer in our self-advocacy arm,
Helping Hands, and a proud partial owner of Jump
Start, our self-advocacy consulting business.
A look at the dollars makes
closing New Jersey’s developmental centers a
fiscally sound decision.
A look at the thousands of people
with disabilities whose lives have been improved
through community living makes it a correct
decision.
Sidney Blanchard is the executive
director of Community Access Unlimited, a
multi-faceted, human services agency that provides
support services for at–risk youth and people with
disabilities.
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Fazio, Mannuzza, Roche, Tankel, LaPilusa, LLC, of
Springfield recently announced that Tara Lotito, Esq., has
joined the firm’s trust and estate department as a manager.
Lolito formerly was with the tax and benefits group at McCarter
& English, LLP. Lotito earned her J.D. from Seton Hall
University and her master’s of laws degree in tax from New York
University.
______________________________ 
Lindabury, McCormick, Estabrook & Cooper
announced that partners Edward Frisch (left) and Barry
Donohue have been named Super Lawyers for corporate counsel
in the area of construction law. Attorneys are selected for this
nationwide recognition after a rigorous screening process that
includes peer recognition and review by a blue ribbon panel in
their respective practice areas.
Lindabury attorneys and staff recently put on
walking shoes and participated in the Susan G. Komen Race for
the Cure Walk/Run at Branch Brook Park in Newark.

Lindabury walkers (back row, l-r) Scott
Pyfer, Lori Miller, Cindy D’Ambola, Eric Levine, Kim Jackson and
Nancy Jogis; and (front row, l-r) Marissa Kussoy, Fran Martin
and Julie Frank.
________________________________ 
Trinitas Regional Medical Center
announced that Nancy DiLiegro, administrative vice
president of clinical services, recently was honored as a “Woman
of Distinction” at the Seventh Annual American Heart Association
Garden State Go Red for Women Luncheon: A Celebration of Life &
Women. The American Heart Association also recently honored
cardiologist Ernest Federici, MD, with its Harvey E.
Nussbaum Distinguished Service Award at the 12th Annual 2009
Affair of the Heart Ball.
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By Kim Dushinski
There’s been a lot of buzz in the past few
years about mobile marketing coming of age. Quite a few thoughts
about using this medium for marketing have taken root as common
knowledge. Since mobile marketing is seemingly here to stay it
is important for businesses and consumers to understand which of
these concepts are true and which are false.
It’s Just Teenagers, Right?
While it may seem that teens and
20-somethings are the only demographic groups a business can
reach via mobile marketing it is actually one of the biggest
myths surrounding this powerful new marketing tool. The reality
is that in the U.S. there are 270 million cell phone subscribers
– 88 percent of our population. Clearly it is not just teens
using cell phones.
Usually the first form of mobile marketing
that comes to mind is text messaging (also known as SMS). A
common misunderstanding on this topic is that only teens send
and receive text messages.
In fact, according to Nielsen Mobile, 123
million Americans use text messaging regularly and up through
the age of 44 people actually send more text messages than make
phone calls. Yes, the teens are the most voracious users of SMS,
but they are not the only users.
I Don’t Want to Start Getting Spam on My
Phone
Of course consumers and businesses alike are
very concerned about mobile spam, as well they should be. But it
is important to note that mobile spam is the exception not the
rule. Due to the consumer-focused guidelines and best practices
outlined by the Mobile Marketing Association and enforced by the
cell phone carriers, the vast majority of text message vendors
are very strict about ensuring that text messages are sent only
with the recipient’s explicit permission.
In addition to the industry’s best practices
there is legislation (m-SPAM Act of 2009, S.788) before Congress
that, if passed, will make sending mobile spam illegal.
Consumers should be careful to only sign up for text message
programs from reputable companies or businesses they currently
do business with. However, they should not forgo all text
message offers if they are interested. Text messaging is not
synonymous with mobile spam.
We Don’t Need to Develop a Mobile Website
Many businesses don’t realize that their
audience may already be interacting with them on the mobile web
whether or not they are ready for them. Nielsen Mobile reports
that 44 million Americans regularly use the mobile web and a
survey done by iCrossing shows that 84 percent of mobile web
users expect sites they visit frequently to provide a dedicated
mobile version of their site.
Since the iPhone hit the market thinking has
started down the path that a mobile-specific site is not
necessary since this device can handle the full-sized Internet
with ease. Yes, the iPhone is amazing and has changed the face
of mobile marketing forever, but the sites that are shown in the
commercials are iPhone-developed sites. They work that way
because they are developed to do so. It doesn’t happen
naturally.
Secondly, even as well as the iPhone has
sold, as late as third quarter 2008 it was only fourth in the
list of Top 10 Mobile
Phones in the U.S., with a 1.5 percent
market share of all subscribers. Bottom line, people are using
other phones besides the iPhone and they need and expect to find
a mobilespecific version when they get there.
People Don’t Want to be Marketed to on
Their Phone
Of course no one wants to be marketed to on
their phone. We don’t want to watch commercials on TV either.
People do not read a newspaper or magazine specifically for the
ads.
What people do want is to have valuable
interaction with businesses on their terms. If businesses keep
their customers’ needs first and follow all applicable best
practices, the marketing efforts they make will not feel like
marketing to the people receiving them.
As an example, a mobile coupon from a company
that comes after they have signed up to receive it is welcome.
Getting a tidbit of information on a topic of interest (daily
horoscope, sports scores, stock quotes) is fine. Finding out
about a hard-to-find product being available is valuable. Being
able to purchase a theater ticket or find a local restaurant on
the go is helpful. The list is virtually endless if a business
just pays attention to what their customers want.
One other aspect of mobile marketing that is
important is trust. People buy from companies they trust and
they are more likely to interact via mobile with trustworthy
companies. If the trust is there then that also takes the edge
off it feeling like marketing to the consumer.
While it may seem cumbersome to figure out
how to get started in mobile marketing it is something that
businesses cannot afford to ignore. Consumers are using mobile
media and they expect businesses to be there for them.
Kim Dushinski is the author of The Mobile
Marketing Handbook and founder of Mobile Marketing Profits, a
Denver, Colorado, firm that educates marketing professionals
about how to use mobile marketing effectively.
For more information visit
www.mobilemarketingprofits.com.
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