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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 SellingTM, 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.

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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.

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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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