Enterprise 4Q 2011

Join us for the 75th Annual Walk to Washington in January  Page 20

NEW JERSEY CHAMBER OF COMMERCE

www.njchamber.com

a quarterly focus on the people and the issues that drive New Jersey business 4Q 2011

Also Inside: Education Reform is Coming to the State House How to Repair the Economy A Guide to Buying Health Insurance

MEET THE N.J. CHAMBER’S LEGISLATORS OF THE YEAR

(AND WHY THESE DEMOCRATS AND REPUBLICANS ARE GOOD FOR THE ECONOMY)  Page 12

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table of contents

COVER PHOTO: Senate President Stephen M. Sweeney (D); Assemblyman Jon M. Bramnick (R); Sen. Steven V. Oroho (R); and Assemblyman Albert Coutinho (D) take time out for photos on Sept. 27 at the New Jersey Chamber of Commerce’s Legislative Awards.

LEFT: So much for political rancor. The two Democrats and two Republicans were all laughs when Enterprise magazine staff asked them to participate in a photo shoot.

PHOTOS BY: Russ DeSantis

cover 12 N.J. Chamber’s Legislative

Focus on: news 06 Christie Administration:

We Will Push Education Reform in Lame Duck Session

18 New Jersey’s View of the Day that

Awards Reception Proves Democrats and Republicans can Get Along

features 04 Message from the President

How to Repair the Economy: ‘Be Courageous’

22 News Makers

Remembering Fred Westphal, Former N.J. Chamber President and CEO

Changed America

19 Most New Jersey Executives Expect

Economy to Improve in Next 12 Months, More Than Half Plan to Hire

health and wellness 08 A Business Owner’s Guide to

Buying Health Insurance

09 Making the Most of Your Health Benefits, and

Your Company’s Bottom Line

10 One Way to Control Health Care Costs:

Allow Top-Level Nurses to Deliver More Care

infrastructure 16 Hurricane Irene Brought Electric and Gas to

the Forefront, but Utility Companies Think about it 365 Days a Year

21

member discounts 11 Profile – Plymouth Rock Assurance chamber events 20 The New Jersey Chamber’s Walk

to Washington Turns 75

22

president’s message

BY THOMAS A. BRACKEN

How to Repair the Economy: ‘Be Courageous’ There’s a photo from the New Jersey Chamber of Commerce’s Legislative Awards reception in Atlantic City that was a big hit here at the Chamber offices.

In the picture, state Senate President Steve Sweeney, a Democrat, and Lt. Gov. Kim Guadagno, a Republican – two strong personalities who have had their differences – are exchanging warm smiles (see it on page 12).

Actually, all the Republicans and Democrats at our reception were nothing but smiles. It was a welcome scene and a far cry from the perceived relationship between the Dems and the GOP. When they are inside the Trenton beltway, our government leaders criticize each other, issue scathing press releases and snipe. They assess blame and take credit.

But when you spend time with them, see them up close, lawmakers on both sides want essentially the same things – education reform, job growth, economic development and controlled spending. They want a better New Jersey.

This is what the Chamber wants too. For all of us to realize this goal, we need our elected officials in our towns, in Trenton and in Washington to end the political rancor, especially while we are emerging from a painful recession that has what economists call “a long tail of uncertainty.”

There’s no time for obstruction or self-promotion. It’s time for our leaders to grab some rope and pull the wagon in the direction of economic growth.

Business leaders and citizens must pitch in too – this state belongs to all of us.

Thomas Edison – a founder and a vice president of the New Jersey Chamber when it was established 100 years ago – said: “If we all did the things we are really capable of doing, we would literally astound ourselves.”

So what are we capable of?

Earlier this year, Gov. Chris Christie, Senate President Sweeney, Assembly Speaker Sheila Oliver and the Legislature proved they are capable of taking a courageous stand when they reformed health care benefits and pensions for government workers. There were protests in the streets, but the legislation will save taxpayer dollars from this day forward by significantly reducing the structural 4 |

deficits in both local and state budgets.

The governor and Legislature should now focus on adopting education reform that will strengthen education and maintain New Jersey’s talented workforce.

They should limit spending to programs with proven returns like transportation infrastructure – an investment that also generates jobs. They should adopt smart policies that encourage job growth and economic development.

We urge business leaders to stand strong in trying times.

It’s tempting to hunker down, but in crisis there is opportunity to grow and innovate. Interest rates are low, the job market is full of great candidates and consumer spending is increasing. Optimism indeed seems to be returning.

Seven out of 10 New Jersey business executives said they expect their companies’ business to improve over the next 12 months, and more than half said they plan to hire, according to a survey conducted Oct. 25 by the New Jersey Chamber of Commerce and Sovereign Bank (see story on page 19). Such optimism bodes well for the economy. If business leaders’ optimism is followed by action – hiring and investing in their companies – it will speed our momentum toward a full recovery.

New Jerseyans and Americans have displayed resilience while the unemployment rate remains high. There was an increase in consumer spending during the third quarter, which boosted growth to the highest level of the year. And in the past two months, the number of employed individuals in the state’s private sector increased by 34,000. We hope New Jerseyans’ confidence grows with these indicators – this too will speed the recovery.

“Be courageous,” Thomas Edison advised his countrymen during a tough economic stretch, “whatever setbacks America has encountered, it has always emerged as a stronger and more prosperous nation. Be brave as your fathers before you. Have faith and go forward.” ❖

Thomas A. Bracken President and CEO New Jersey Chamber of Commerce

CHAMBER STAFF

Thomas A. Bracken President and CEO

Dana Egreczky Senior Vice President, Workforce Development

Michael Egenton Senior Vice President, Environment and Transportation

Ray Zardetto Communications Director

Scott Goldstein Communications Manager and Enterprise Editor

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New Jersey Chamber of Commerce Staff

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ENTERPRISE 4Q 2011 | 5

focus on news

Christie Administration: We Will Push Education Reform in Lame Duck Session

BY SCOTT GOLDSTEIN

Gov. Chris Christie’s chief counsel told a group of New Jersey Chamber of Commerce members on October 14 that the administration will press ahead with education reform this fall and “concrete steps” could be seen between the elections in November and the end of the Legislative session in January.

“We are in the process of seeing what part of this can make it in the lame duck session and which ones we’ll move in the new session,” said Jeff Chiesa, Christie’s chief counsel, at a roundtable breakfast in Monroe sponsored by the New Jersey Chamber.

Education reform is so important to the governor – “he cares about education so much” – that he leans forward when he talks about it, Chiesa said. “He comes out of his shoes a little,” he added.

“It’s never been about attacking teachers” the chief counsel said. “It’s about identifying areas where we can TOP LEFT: Jeff Chiesa, the chief counsel to Gov. Chris Christie; Tom Bracken, president of the New Jersey Chamber of Commerce; and Dale Florio, founding partner of Princeton Public Affairs Group.

TOP RIGHT: Michael Egenton, senior vice president of government affairs at the New Jersey Chamber of Commerce, kicks off the breakfast.

BOTTOM LEFT: Chiesa addresses New Jersey Chamber members.

BOTTOM RIGHT: Chiesa during a Q&A session.

PHOTOS BY: Ric Principato

6 |

improve education, whether it’s tenure reform, whether it’s merit pay, whether it’s seniority protection.”

Chiesa, who served as executive director of Christie’s transition team, refuted talk by critics that the governor is a “bully.”

“He listens. He solicits opinions from people he trusts. He makes thoughtful and concrete decisions,” Chiesa said of the governor. “Not everybody always agrees with his decisions, but he takes steps that make progress.”

In Trenton, he added, “If you are not taking steps and making progress every day, you will find yourself under water quickly.”

The governor has another quality.

“When he starts down a course, he sticks to it,” Chiesa said. “He doesn’t allow folks to undermine us.” ❖ Scott Goldstein is communications manager at the New Jersey Chamber of Commerce.

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focus on health and wellness

It’s Complicated, Costly and Personal A BUSINESS OWNER’S GUIDE TO BUYING HEALTH INSURANCE

BY ALICIA BROOKS WALTMAN

Few times of the year evoke as much dread for business owners as enrollment season for health insurance. It’s complicated.

It’s costly. And it’s personal. It’s a time when employers must adjust benefits to guard their businesses’ bottom line while providing their employees with the coverage they need.

Add the changing federal regulations, and “open season” can feel more like headache season.

Chamber members who are experts in the field offer the following tips when wading through the benefits-buying morass.

JIM O’CONNOR

JEFF SCHEININGER

8 |

Don’t Go it Alone First and foremost: Get a good benefits broker.

“Get an agent who really cares,” says Jeff Scheininger, chairman of the New Jersey Chamber of Commerce who headed the Chamber’s Platform for Progress Health Care Coalition for seven years.

A good broker brings in “five, six, seven, even 10” different proposals to an employer several weeks before the enrollment deadline to give the boss time to analyze and discuss the offerings with employees to ensure the fairest rates and coverage, says Scheininger, who is president of Flexline/U.S. Brass & Copper Corp., a Lindenbased manufacturer of metal hoses.

“Find a local, trustworthy advisor with experience serving similar-sized groups,” advises benefits broker David Stearns, a managing partner for Benefit Service Company in Westfield. A broker should fight on behalf of your employees with the insurer; advise the employer and employees on contribution rates; and inform you how much you are paying compared to other companies your size, Stearns says. The broker will also know how federal regulations affect your policy.

Where to find such an agent? Word of mouth is a good start. Ask your attorney or accountant.

Ask human resources professionals, or other business owners. The Society of Financial Service Professionals (www.sfsp.net), a group of 16,000 accredited members around the country, including insurance brokers, can refer you to members in your area.

Be Flexible Another key to effective benefit buying: flexibility. Don’t be afraid to change programs, carriers and brokers. “Don’t be tied to one carrier, or one particular format of health care,” Scheininger says.

A recent trend in the face of escalating premiums is high-deductible plans in which the employees – often with money kicked in by their employers – pay the first few thousand dollars of their health care expenses every year through their health savings account (HSA). As a result, the cost of their health insurance premiums go down. To cover those initial expenses, part of the employees’ paychecks can be direct-deposited into their HSA. “This exposes employees to the actual cost of health care, and may encourage them to be smarter consumers, and possibly take better care of themselves,” says Stearns.

Another option is for employers to self-insure, eliminating premiums and paying all expenses through a plan administrator. In this case, employers will purchase a stopgap policy that protects them from major expenses.

“Self insurance programs and partially selfinsured programs used to be the domain of larger employers, but they have come down-market quite a bit,” says broker Jim O’Connor, managing director and executive vice president of CBIZ EAO Benefits in Manasquan.

“You’ll take more financial risks than if you were fully insured,” adds Stearns. “But you have the possibility of rewards if claims you expect to pay out of the plan don’t materialize.”

Be Preventative Under the new federal health law, insurers must fully cover preventative care such as wellchild visits and screenings such as mammograms.

Employers can go a step further, giving employees incentives to keep themselves healthy.

O’Connor, the broker from Manasquan, administers a plan for some clients called a “healthy plan,” in which workers get cost breaks on their contributions to insurance premiums if they agree to get all health care screenings. Companies might even give employees a cash bonus at the end of each year for participating in the screenings.

“Money is the great motivator,” says O’Connor.

It is cost-effective for employers and employees to get into health programs that promote exercise, healthy diets and lifestyle changes before they get sick, said Jay Kingley of Kingley Health in Iselin, which focuses on the treatment and prevention of chronic lifestyle diseases. “If done correctly, preventative care ought to save the health care system a lot of money,” Kingley said.“Spending a dollar today will save $10 tomorrow.”

What’s Ahead?

Doug Forrester, CEO of Integrity Health of Princeton, believes his company has the answer to containing health care costs. Under his model, employers open round-the-clock health care centers (a “health home”) for employees. These centers offer routine and acute care, such as check-ups, sick visits, x-rays and blood work with no out-of-pocket costs to employees.

Employees who opt not to use the center pay a co-payment.

After just two years of operating such a system for the Toms River School System, which has about 500 employees, 85 percent of its employees opt to use the center, he says.

“The savings have been phenomenal,” says Forrester, who once served as assistant treasurer and director of pensions for New Jersey, and has run for both governor and U.S. senator. “We have lowered [the number of] emergency room visits tremendously.”

Of course, business owners hope that health insurance premiums would simply stop rising.

“For me, health care reform should mean an end to double-digit increases in premiums every year,” said Scheininger. “I don’t think we’re going to see that.” ❖ Alicia Brooks Waltman is a freelance writer.

Making the Most of Your Health Benefits, and Your Company’s Bottom Line

BY MICHAEL MCGUIRE, CEO, UNITEDHEALTHCARE EMPLOYER & INDIVIDUAL OF NEW JERSEY

Many employees are unaware that health plans offer wellness programs and other benefits at no additional cost.

Employees who use these benefits may be healthier, more productive, and may pay less for health care.

Healthy employees lead to reduced absenteeism, greater office morale and increased retention.

Many health plans offer online self-assessments that help employees identify elevated blood sugar, MICHAEL MCGUIRE high blood pressure, weight issues and other risks, and take steps to address them.

Depending on the policy, there are underused programs that give employees the opportunity to: • Receive alerts when it’s time to visit the doctor for check-ups and annual preventive care, such as mammograms, vaccinations and physicals. In addition, many insurance plans offer resources that help guide expectant mothers through their pregnancies or assist those with diabetes and prediabetes, for example.

• Receive and access information online to help track prescriptions and health histories, reduce medical errors, increase cost savings and improve health outcomes.

• Lower prescription drug costs by using generic or “preferred brand” drugs or receive medication through mail order. An in-

dividual also may be able to cut prescription bills in half by splitting pills, if approved by a physician.

• Compare treatment costs. Some health plans offer tools that enable individuals to compare the quality ratings of physicians who participate in your health plan’s network, in addition to their cost.

The UnitedHealth Premium designation program, for example, recognizes physicians who meet national industry standards for quality.

• Access 24/7 nurse care lines where trained, licensed nurses are available to answer basic health questions. They are especially helpful after-hours or for minor health issues that do not require an immediate trip to the urgent-care clinic or emergency room.

By using all available resources and adopting employee-wellness programs, it’s easier for employees to get and stay healthy, and even to find ways to reduce their out-of-pocket health expenses. So encourage your staff to review their benefits and use programs – for their health and for the health of your company.

Michael McGuire is the chief executive officer of UnitedHealthcare Employer & Individual of New Jersey.

UnitedHealthcare provides access to care for more than 1.4 million New Jersey residents.

ENTERPRISE 4Q 2011 | 9

focus on health and wellness

One Way to Control Health Care Costs: Allow Top-Level Nurses to Deliver More Care When the Institute of Medicine, one of the world’s most authoritative advisers on issues of health and medicine, released a report last fall on the future of nursing, New Jersey was chosen as one of the lead states to implement the report’s recommendations.

Since then, the New Jersey Action Coalition, a group of more than 100 volunteer experts, has been busy adopting the reforms to ensure quality nursing care and to control rising health care costs.

The report’s recommendations were well received by the New Jersey Chamber of Commerce Foundation, which is involved in increasing the number of nurses in New Jersey and widening the scope of the work they do.

“With the most severe shortage of family doctors in the nation, New Jersey needs advanced practice nurses who have the knowledge and management skills necessary to deliver the care and ensure that every citizen gets quality health care,” said Dana Egreczky, president of the New Jersey Chamber Foundation.

The Institute of Medicine’s Recommendations Nurses should be fully engaged with other health professionals and assume leadership roles in redesigning care in the United States, stated the Institute of Medicine’s report, called “Future of Nursing: Leading Change, Advancing Health.”

To ensure its members are well-prepared, the nursing profession should institute residency training for nurses, increase the percentage of nurses who attain a bachelor’s degree to 80 percent by 2020, and double the number who pursue doctorates, the report recommends. And regulatory and institutional obstacles – including limits on nurses’ scope of practice – should be removed so that the health system can reap the full benefit of nurses’ training, skills and knowledge of patient care.

The New Jersey Action Coalition’s implementation effort is being led by Edna Cadmus, clinical professor at Rutgers University School of Nursing; Mary Ann Christopher; president and CEO of Visiting Nurse Association Health Group; and Dave Knowlton, president of the New Jersey Health Care Quality Institute.

10 |

At more than three million, nurses make up the single largest segment of the health care work force in the nation. They also spend the greatest amount of time in delivering patient care. Nurses therefore have valuable insights to contribute as partners with other health care professionals in improving the quality and safety of care as envisioned in the Affordable Care Act enacted this year, the report said.

What is the N.J. Chamber Foundation’s New Jersey Nursing Initiative?

The work to implement the recommendations in New Jersey is being augmented by the New Jersey Nursing Initiative, a multi-million dollar partnership between the Robert Wood Johnson Foundation and the New Jersey Chamber of Commerce Foundation, thanks to contributions

by The Horizon Foundation for New Jersey and the Robert A. Mills Foundation.

DANA EGRECZKY

“New Jersey needs advanced practice nurses who have the knowledge and management skills necessary to deliver the care and ensure that every citizen gets quality health care.”

— Dana Egreczky, president of the New Jersey Chamber Foundation The New Jersey Nursing Initiative is focusing on increasing the number of nursing faculty members in the state. Further, the Nursing Initiative launched a program last year to help nursing graduate students strengthen the quality of their scholarly writing. That program was made possible thanks to contributions by Horizon Foundation for New Jersey, Healthcare Foundation of New Jersey, Johnson & Johnson Corporate Contributions, FM Kirby Foundation, Provident Bank Foundation, Van Houten Memorial Fund and Verizon Foundation of New Jersey. ❖ For more information, go to www.njni.org/page/newjersey-action-coalition.

focus on member discounts EXCLUSIVE DISCOUNTS FOR N.J. CHAMBER MEMBERS Save up to 28 percent on shipping costs

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Save up to 70 percent on your audio, web and video conferencing

For a complete list of discounts for N.J. Chamber member companies and their employees, go to www.njchamber.com/affinity.asp.

Plymouth Rock Assurance Members of the New Jersey Chamber of Commerce and their employees get a 5 percent discount on auto insurance through the Chamber’s discount program with Plymouth Rock Assurance, formerly known as High Point Auto Insurance.

This partnership gives member companies a way to increase the value of the benefits package they offer employees – without paying more. It is just one of the member-to-member discounts for N.J. Chamber members. (For a complete list, go to njchamber.com/affinity.asp.)

As the fourth largest auto insurance group in New Jersey, Plymouth Rock offers the financial stability of a national insurer, with the care and attention of a local company.

This unique combination allows Plymouth Rock to offer more than just insurance. For example, if a customer feels unsafe driving for any reason, Plymouth Rock will cover a cab fare up to $50 under the Get Home Safe program. Whether a customer is too tired to drive or had a little too much wine at dinner, this service helps keep customers safe.

The company also offers unique claims assistance designed to save customers time and money. With Door-toDoor Valet Claim Service, customers can have a damaged vehicle transported to and from a participating repair shop.

Customers who wish to more closely manage the repair process can opt for a

visit from a claims representative in one of Plymouth Rock’s Crashbusters vans, and, in many cases, a check is issued right at a customer’s home or office.

Plymouth Rock’s commitment to delivering the highest level of value and service is backed by their Pledge of Assurance. If Plymouth Rock falls short of its standards – in a customer’s opinion or the company’s opinion – it will make a $25 donation to the customer’s choice of select charities.

In addition, Chamber members may be eligible for extra discounts from Plymouth Rock of up to 50 percent on the company’s other products and services, such as homeowners insurance. ❖ New Jersey Chamber member companies and their employees can take advantage of the Plymouth Rock discount. For more information or to get your free quote, visit www.njchamberquote.com or call 1-800801-0977.

Healthier employees build stronger businesses.

©2011 Aetna Inc. 2011015

ENTERPRISE 4Q 2011 | 11

12 |

N.J. CHAMBER’S LEGISLATIVE

AWARDS RECEPTION Turns into

A RALLY FOR

BI-PARTISANSHIP

BY SCOTT GOLDSTEIN

The New Jersey Chamber of Commerce honored four legislators and three members of Gov. Chris Christie’s economic development team – all of whom have gone above and beyond to help recharge New Jersey’s business climate – at a reception on Sept. 27 in Atlantic City that felt more like a rally for bipartisanship than an awards ceremony.

The event, held on the sixth floor of Bally’s Atlantic City’s Diamond Lounge, attracted 150 guests, including Lt. Gov. Kim Guadagno and leaders of both parties – many of whom who said it is time for the parties to put politics aside and pave the way for more economic development and jobs in the Garden State.

“These are not Democratic ideas or Republican ideas,” said Senate President Stephen Sweeney, an award recipient and a Democrat. “We need to create an environment where businesses want to be here. We have a lot of work to do.”

“As the New Jersey Chamber says, ‘Our business is your business.’ That should be our motto in Trenton,” added award recipient Assemblyman Jon M. Bramnick, a Republican.

The four winners of the Legislative Awards were: • Senate President Stephen M. Sweeney (D-3 / Gloucester, Salem and Cumberland Counties) • Senator Steven V. Oroho (R-24 / Sussex, Morris and Hunterdon Counties) • Assemblyman Albert Coutinho (D-29 / Essex and Union Counties) • Assemblyman Jon M. Bramnick (R-21 / Union, Somerset, Morris and Essex Counties) TOP: Sen. Steven V. Oroho, Assemblyman Albert Coutinho, Assemblyman Jon M. Bramnick, and Senate President Stephen M. Sweeney.

BOTTOM LEFT: Senate President Sweeney and Lt. Gov. Kim Guadagno.

BOTTOM RIGHT: John Bigelow, president of New Jersey American Water, accepting on behalf of Tracye McDaniel, CEO of Choose New Jersey; Caren Franzini, CEO of the New Jersey Economic Development Authority; and Linda Kellner, executive director of the state’s Business Action Center.

PHOTOS BY: Russ DeSantis

ENTERPRISE 4Q 2011 | 13

The three winners of the Chamber’s Business Advocacy Award were: • Caren Franzini, CEO of the New Jersey Economic Development Authority • Linda Kellner, executive director of the state’s Business Action Center • Tracye McDaniel, CEO of Choose New Jersey, whose award was accepted by John Bigelow, president of New Jersey American Water, who serves on the board of Choose New Jersey The Business Advocacy Award was presented to the three executives by Guadagno, who praised the women and the members of the state’s business community.

“The people needed to return New Jersey to the New Jersey that created the light bulb are in this room right now,” Guadagno said.

“New Jersey is a place people want to do business again,” she added. “More than 50,000 private-sector jobs were created [in New Jersey] in this seven-month period and for that, you all need to be thanked.”

This year is the centennial anniversary of the New Jersey Chamber of Commerce. The award winners were presented crystal sculptures depicting a light bulb in honor of Thomas A. Edison, one of the Chamber’s founding members, and in honor of the innovative spirit in New Jersey.

“A lot of [the legislation] we have been fortunate enough to pass is because the Chamber has advocated for it,” Coutinho said. “I look forward to working with each and every one of you to make New Jersey the best it can be.”

Sweeney said the time is now to move forward with additional economic development legislation.

“We can’t afford to say we can’t afford to do it anymore,” he said. “We’ve done great things in New Jersey and both parties are doing it together.” ❖ Scott Goldstein is communications manager at the New Jersey Chamber of Commerce.

Meet the Award Winners SENATE PRESIDENT STEPHEN SWEENEY D-3 / Gloucester, Salem and Cumberland Counties The Senate President was the prime architect of the recently enacted pension and health care benefits reform – and his commitment and leadership helped usher through the landmark legislation. The new law will go a long way in changing New Jersey’s antiquated and expensive pension and health benefit system, and begins the process of stabilizing the state’s fiscal health. Recognizing the difficult economic times, Sweeney introduced many bills that will help grow jobs and the economy. He was a primary sponsor of legislation that prevented a $1 billion payroll tax increase to employers that was intended to supplement the Unemployment Insurance Fund.

SEN. STEVEN V. OROHO R-24 / Sussex, Morris and Hunterdon Counties As a member of the Senate Budget and Appropriations Committee, Oroho consistently voices concerns regarding proposals that raise taxes or impose overly burdensome regulations on the business community. He sponsors reform bills that are the result of his work on the Red Tape Review Commission, which analyzes and makes recommendations to improve the state’s regulatory structure. He was a primary sponsor of two major tax reform bills this session – a measure that, for the first time, allows small businesses to carry forward net operating losses for 20 years, and the single sales factor which changes the formula for determining business taxes.

ASSEMBLYMAN ALBERT COUTINHO D-29 / Essex and Union Counties On the Assembly Commerce and Economic Development Committee, he champions pro-growth initiatives, including tax reform and economic development legislation. He recently sponsored legislation which extends the moratorium on a 2.5 percent fee on non-residential construction projects for two years. He also sponsored legislation that allows Urban Enterprise Zone-certified businesses to receive sales tax exemptions on business purchases at the point of sale; and legislation that broadens the availability of grants to companies that hire new workers.

ASSEMBLYMAN JON M. BRAMNICK R-21 / Union, Somerset, Morris and Essex Counties

Amy Mansue, president and CEO of Children’s Specialized Hospital; John J. Pydyszewski, senior director for state tax policy at Johnson & Johnson; Arthur Herrmann, vice president, New Jersey Governmental Affairs, at Prudential Financial.

14 |

The Republican Conference Leader sponsored a key tax bill that would have eliminated the minimum tax on New Jersey’s S-corporations (Ultimately the tax was reduced, not eliminated, in the 2011-2012 state budget). He sponsored legislation that would phase out the estate tax over a fiveyear period. Bramnick was a prime sponsor of the Market Competition and Consumer Choice Act, which streamlines state regulation of services provided by telecommunications and cable television companies in New Jersey, resulting in increased investment and job creation.

The Business Advocate Award Winner PARTNERSHIP FOR ACTION

Caren Franzini

Linda Kellner

Tracye McDaniel

CEO of the New Jersey Economic Development Authority

Executive Director of the state’s Business Action Center

CEO of Choose New Jersey

Along with Lt. Gov. Kim Guadagno, these executives direct economic development in New Jersey. The agencies they lead provide financing, business assistance and marketing strategies to attract businesses. The team is changing the perception of New Jersey through their services and programs, including regulatory relief, financial incentives, tourism and international trade. Their focus on business attraction and retention – by being responsive, accountable and helpful with business inquires – has ignited a renewed sense of enthusiasm.

A SPECIAL THANKS to Atlantic City Electric and the Greater Atlantic City Chamber for being major partners in the event.

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© 2011. Constellation Energy Group, Inc. The materials provided and any offerings described herein are those of Constellation NewEnergy, Inc., a subsidiary of Constellation Energy Group, Inc. Brand names and product names are trademarks or service marks of their respective holders. All rights reserved. Errors and omissions excepted. Environmental information about Constellation Energy’s competitive energy supply services along with other information about our business is available at: www.newenergy.com and our toll-free number: 866.237.POWER.

ENTERPRISE 4Q 2011 | 15

focus on infrastructure

Hurricane Irene Brought Electric and Gas to the Forefront, but Utility Companies Think about it 365 Days a Year

BY DIANA LASSETER DRAKE

When Hurricane Irene knocked out power to some 70,000 residents, utility crews worked feverishly. Electric substations were literally hand-dried to get circuits back online; and, once power was restored, Gov. Chris Christie called for state Board of Public Utilities hearings to assess utility performance.

Following that storm, utility-speak like “substation” and “kilovolt” entered the vernacular and all eyes were suddenly on utility companies and the durability of their infrastructure.

But for utility companies, talk, attention and work on infrastructure never really stops.

16 |

PSE&G transmission projects employed more than 500 local union workers.

They are continually investing in capital projects to upgrade and maintain the lines that bring power to businesses and homes in New Jersey. The projects also carry with them a bonus for the economy: New jobs.

Over the next five years, for example, Public Service Electric & Gas (PSE&G), New Jersey’s largest gas and electric utility, is investing approximately $3.1 billion in transmission projects. It is investing heavily in power transmission, like its Susquehanna-Roseland Project, a 500,000volt transmission line that will be built between Pennsylvania and New Jersey.

“New transmission lines are essential for New Jersey to meet the growing demand for electricity over the long term,” says Ralph LaRossa, president of PSE&G. In 2010, PSE&G transmission projects employed more than 500 local union workers and utilized some $100 million worth of products and services from 175 New Jersey companies.

Capital improvements are business as usual, says Ron Morano, spokesperson for Jersey Central Power & Light (JCP&L), a FirstEnergy electric company providing electricity service in northern and central New Jersey.

JCP&L has more than 50 transmission projects scheduled over the next five to 10 years that include equipment upgrades, increasing the capacity of existing lines, new line projects and adding equipment at substations,” said Morano.

“The company expects to invest $200 million during that time,” he said.

Equipment improvements are often necessary to keep the lights on in both clear and stormy weather, notes Greg Brubaker, engineering manager at Atlantic City Electric in Mays Landing, a public utility owned by Pepco Holdings that provides electricity to customers in southern New Jersey. Earlier this year, the company completed two substations, a $6 million project that brought more than 20 jobs to the Wild-

wood area.

The much-anticipated Revel Atlantic City, a casino and resort under construction on 20 acres in Atlantic City, in part prompted Atlantic City Electric to spend another $12 million on a substation upgrade.“The growing population in this area and the general need to enhance this particular area

of our service territory were the main factors in proceeding,” says Brubaker.

“Not only will Revel receive power when completed, but the rest of Atlantic City is benefiting from the addition of this new 23-kilovolt system.” ❖ Diana Lasseter Drake is a freelance writer based in New Jersey.

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ENTERPRISE 4Q 2011 | 17

focus on news

New Jersey’s View of the Day that Changed America STATE MUSEUM EXHIBITION

The New Jersey State Museum in Trenton is commemorating the 10-year anniversary of September 11, 2001, with the opening of the first comprehensive exhibition that tells the history of 9/11 from a New Jersey perspective.

The major exhibition, “Remember 9.11: Reflections and Memories from New Jersey,” features oral histories of 9/11 families, survivors, rescue workers and volunteers, and includes evocative artifacts like twisted impact steel from the World Trade Center and clothing worn by the first responders and recovery workers. Together, it conveys the magnitude of the destruction and the acts of benevolence that followed.

The museum’s event runs through Sept. 30, 2012.

“New Jersey, home to 700 victims on 9/11, deserves its own place for victims to be honored,” said Lt. Gov. Kim Guadagno. “Our exhibit does that, in addition to providing an education tool for our students.”

The exhibition, sponsored in part by the New Jersey Chamber of Commerce, includes heart-wrenching photographs by Donald Lokuta, Thomas Franklin and Robert Cumins – three New Jersey photographers who captured the attacks and their aftermath. Interactive components throughout the exhibition give visitors oral accounts from World Trade center survivors, and allow them to share their own personal stories about the day that changed America.

For visitors like Carl Ceposki, the exhibit inspired a sense of pride and patriotism. “This exhibit was sad and beautiful,” Ceposki wrote. “Although it reminds us of the potential for man to do evil, it really reminds me to be proud that people are there to help one another. Always remember.”

New Jersey played a central role in this turning point in

“New Jersey, home to 700 victims on 9/11, deserves its own place for victims to be honored.”

— Lt. Gov. Kim Guadagno American history. Most of the New Jersey victims commuted daily from towns throughout the state to jobs in Lower Manhattan. Some were New Jersey-born Port Authority police officers who died in the line of duty. Some, like New Jersey resident Jeremy Glick, died after waging a heroic onboard uprising against the terrorists who hijacked United Airlines Flight 93, which took off from Newark International Airport.

Injured and dazed survivors in Manhattan, many covered in the ash and dust from the World Trade center collapse, fled to New Jersey. New Jersey hospitals mobilized and waited 18 |

The exhibition “Remember 9.11: Reflections and Memories from New Jersey” conveys the magnitude of the destruction and the acts of benevolence that followed. It is open through Sept. 30, 2012.

PHOTO BY: Russ DeSantis

for the injured. As the smoke billowed from the World Trade Center site, hundreds of New Jersey volunteers participated in the rescue and recovery operations at the World Trade Center. Across the Hudson River, the state of New Jersey opened a Family Assistance Center at Liberty State Park to coordinate relief efforts and to offer solace to the families of victims.

The exhibition, organized through the State Museum’s 9/11 Commemoration Committee, opened Sept. 7 with more than 250 guests, including Gov. Chris Christie, Lt. Gov. Kim Guadagno, former Gov. Don DiFrancesco, members of the governor’s cabinet, legislators, New Jersey Chamber of Commerce President Tom Bracken, New Jersey Chamber Chairman Jeff Scheininger and other generous benefactors. ❖

Remember 9.11: Reflections and Memories of New Jersey Through September 30, 2012 The State Museum, 205 West State Street, Trenton www.njstatemuseum.org

focus on news

New Jersey Chamber/Sovereign Bank Survey MOST N.J. EXECUTIVES EXPECT BUSINESS TO IMPROVE IN NEXT 12 MONTHS; MORE THAN HALF PLAN TO HIRE

BY SCOTT GOLDSTEIN

Here’s good news: New Jersey business owners are optimistic. Seven out of 10 New Jersey business executives said they expect their companies’ business to improve over the next 12 months, according to a flash survey conducted Oct. 25 by the New Jersey Chamber of Commerce and Sovereign Bank.

Seventy percent of the respondents said their companies will be in better shape over the next year, 22 percent anticipate business will hold steady, while 9 percent expect business to worsen.

The survey participants were the 200 executives, business owners and managers who attended the N.J. Chamber’s and Sovereign Bank’s Economic Outlook Breakfast at the Pines Manor in Edison. Participants used hand-held devices to respond to 10 questions, and responses were immediately tabulated and displayed. The survey provided a real-time snapshot of business leaders’ views of the economy, and was followed by an expert panel that discussed the results.

Kevin Welsh, senior vice president of CB Richard Ellis, said the respondents’ optimism is consistent with what’s occurring on the ground in New Jersey: the relocation or expansion in New Jersey of companies like Panasonic in Newark; Novo Nordisk in Plainsboro; Whyndham Worldwide headquarters in Parsippany; and LG Electronics in Englewood Cliffs.

“Business leaders and CEOs have a lot of confidence in New Jersey,”Welsh said. “These transactions are creating jobs. If this doesn’t speak to confidence in this state, I don’t know what does.”

Other panelists, like Jeff Scheininger, the chairman of the New Jersey Chamber of Commerce, and Emil Solimine, president and CEO of the construction firm Spiniello Companies, said New Jersey’s strengths lie in its highly skilled workforce, its infrastructure and its strong customer base. But, they added, New Jersey’s reputation as a high-tax and highly regulated state continues to be an obstacle.

The survey respondents chose property taxes (31 percent) and the cost of health care (17 percent) as the top challenges facing New Jersey. As for their companies’ biggest challenges, the respondents chose attracting customers (30 percent), retaining existing customers (19 percent) and the cost of health insurance and employee benefits (18 percent).

Other findings of the survey Fifty-five percent of respondents said their companies plan to hire in the next 12 months, while 37 percent expect to main-

Business executives at the Economic Outlook Breakfast review real-time survey results.

The N.J. Chamber’s Everything Jersey Business Expo drew hundreds of business leaders and 85 exhibitors.

PHOTOS BY: Gary Gellman

tain staffing levels and eight percent expect to see a staffing decrease.

When asked for their most pressing reasons for hiring, the respondents chose projected sales growth (23 percent), current staffing levels cannot meet demand (20 percent) and expanding into a new segment or market (14 percent).

More than two of every three respondents (65 percent) said the New Jersey economy has improved since Gov. Chris Christie took office in January 2010, while 22 percent said it has not changed and 17 percent said it has deteriorated.

Everything Jersey Business Expo The Economic Outlook Breakfast was followed by the New Jersey Chamber’s 5th Annual Everything Jersey Business Expo, where hundreds of business executives visited 85 exhibitors and attended workshops addressing the issues of skyrocketing health care costs, capital lending, the unpredictable cost of energy, and using social media to grow sales in a challenging economy. ❖ Scott Goldstein is communications manager at the New Jersey Chamber of Commerce.

ENTERPRISE 4Q 2011 | 19

focus on chamber events

The New Jersey Chamber’s Walk to Washington Turns 75 in January The Walk to Washington tradition began in 1936 when several of the state’s top business executives took a train to the nation’s capital, to have dinner with New Jersey’s congressional delegation – and the rest is history.

Today, the Walk to Washington and Congressional Dinner is regarded as one of New Jersey’s most influential business and political events with a long and rich history of bringing together the state’s premier political and business leaders to discuss how they can work together to generate economic growth and create jobs for New Jersey. The two-day event also is a prime networking experience, with the opportunity to hand out and collect business cards, shake hands and make friends.

This year’s walk, the 75th annual, is Jan. 26 and 27 with a dinner at the Marriott Wardman Park Hotel.

20 |

Why is it called the Walk to Washington?

The Walk to Washington obtained its name when folks realized that few sit on the train; they literally walk up and down the train the whole way to Washington.

The guests board a chartered Amtrak train that leaves from Penn Station in Newark and then stops at various stations across New Jersey, as well as stops in Philadelphia and Wilmington. After the train arrives in the nation’s capital, guests are joined by governors, state legislators, New Jersey’s Congressional delegation, representatives of the state’s premier media organizations and other prominent business and political leaders from the Garden State for the annual Congressional Dinner.

President Clinton spoke at our 1993 dinner and George H.W. Bush spoke at the 1989 dinner.

Last January’s Walk to Washington and Congressional Dinner was a huge success.

“I’m glad to be here and I’m glad all of you are here to support the Chamber,” Gov. Chris Christie told the audience of 700 CEOs, business owners, politicians, college presidents and directors of associations. “The work that we all have to do together for the people of the state is extraordinarily important.”

Walk to Washington and Congressional Dinner Jan. 26-27, 2012

The 75th Annual Walk to Washington & Congressional Dinner Marriott Wardman Park Hotel, Washington, D.C. To become a Walk to Washington sponsor, call Amy Kolis, our NJBIZ partner, at 732-246-5730.

To register to attend, go to our website, www.njchamber.com.

PHOTOS BY: Gary Gellman

“I’m glad to be here and I’m glad all of you are here to support the Chamber. The work that we all have to do together for the people of the state is extraordinarily important.”

— Gov. Chris Christie, at 2011 Congressional Dinner

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ENTERPRISE 4Q 2011 | 21

news makers

 Jeff Scheininger, president of FLEXLINE/U.S. BRASS & COPPER CORPORATION in Linden and chairman of the New Jersey Chamber of Commerce, was named Man of the Year by the Boy Scouts of America at its Harvest Ball on October 21.

JEFF SCHEININGER

DENNIS BONE

KAREN SCHWARTZ

KEVIN SULLIVAN

 Dennis M. Bone, president of VERIZON NEW JERSEY, will receive the Angel of Hope Award from the Partnership for a Drug-Free New Jersey at its 20th anniversary gala on April 26, 2012.

Ben Arroyo, Southern New Jersey community bank president for WELLS FARGO & COMPANY, has been selected to serve as a board member for the Trenton Habitat for Humanity Board of Trustees. Wells Fargo also announced it has extended more than $1 billion in SBA 7(a) loans to small businesses in the current federal fiscal year that began Oct. 1, becoming the first lender to reach this milestone in a year.  Karen Schwartz was promoted to director in EISNERAMPER’s Audit Department and Kevin Sullivan was promoted to director in its Consulting Services Group. Schwartz has been a member of the firm’s Professional Practice Group for 20 years. Sullivan previously served as vice president of internal audit for a property and casualty insurer.

MERCK is contributing $3 million over three years to the “Pink Ribbon-Red Ribbon” initiative to help address both cervical and breast cancer in subSaharan African nations by supporting disease education, screening and treatment efforts as well as increased access to cervical cancer vaccination.

Newark-based PRUDENTIAL FIANCIAL, INC. received the C. Everett Koop National Health Award in recognition of its health promotion program that has improved employee health and reduced costs. Prudential’s employee wellness program includes discounts on healthy food in cafeterias; health risk assessments; onsite health clinics; exercise opportunities at onsite fitness centers; and life, health and budget coaching.

Newark-based PSEG celebrated the power of volunteerism at a ceremony on Oct. 4 recognizing exemplary employee volunteers and rewarding the nonprofit organizations they support with $34,000 in grants.

BANK OF AMERICA hired 180 Merrill Edge Financial Solutions Advisors (FSAs) throughout New Jersey this year, including 155 in the Merrill Edge Advisory Center in Hopewell, and 26 in banking centers across northern and central New Jersey. These FSAs provide financial solutions and guidance to help customers manage their banking and investment needs and stay in better control of their finances.

Lawyer Ted Zangari was named the 2011 chairperson of the Greater Newark Holiday Fund, which kicked off its annual campaign Nov. 14. Zangari serves on the executive committee of the Newarkbased SILLS CUMMIS & GROSS commercial law firm and serves on the boards of the Newark Alliance and New Jersey Chamber of Commerce.



REMEMBERING FREDERICK WESTPHAL 1921-2011

We mourn the loss of Fred Westphal, former chairman, president and honorary lifetime board member of the N.J. Chamber of Commerce.

Fred served as state Chamber president for 10 years, starting in 1982, a term in which he interacted with President Ronald Reagan, Sen. Bill Bradley and Governors Brendan Byrne and Tom Kean to promote the business community in New Jersey. He died peacefully on July 28. He is missed.

22 |

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