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A slew of the state’s top leaders gathered in Woodbridge Tuesday for a highly anticipated New Jersey Business & Industry Association event to discuss the year that was – and the year ahead – as well as broader trends impacting the state’s economy and business climate.

Following opening remarks from NJBIA President and CEO Michele Siekerka, the 2023 Public Policy Forum’s first batch of panels kicked off on topics including: New Jersey’s economic outlook; the looming fiscal cliff; and election perspectives.

“This is about relationship-building,” said Siekerka at the top, as she spoke about the benefits of having in-person events versus a virtual format over Zoom or Teams. “This is about spending time talking about critical issues and opportunities affecting each and every one of us here in our great State of New Jersey. We have an amazing program for you today.”

After those initial panels, Gov. Phil Murphy delivered the keynote address, touching on a number of New Jersey-centric as well as macro-economic trends and topics facing all people and businesses. Most notably, especially given the recent speculation surrounding the issue coming out of Trenton, Murphy reiterated his support for the upcoming sunset of the corporate business tax (CBT) surcharge, which is set to expire at the end of 2023.

The year began with that hot-button issue at the top of the wish list from the business community, which Murphy and the Legislature agreed to let sunset.

But, as the lame duck session kicked off in Trenton, the topic popped back up with Senate President Nick Scutari, D-22nd District, hinting at revisiting the CBT as a potential source of funding for NJ Transit. Jersey City Mayor and declared gubernatorial candidate Steve Fulop has also introduced a transportation proposal that would reinstate the surcharge as a funding source for NJ Transit.

That has led to concern from the business community, who urged Murphy to keep his word. And the governor has stood pat — despite some clamoring from those who oppose letting the surcharge expire.

“Michele [Siekerka] would never ever invite me back again if I did not say – I am still supporting the sunsetting of the corporate business tax on December 31st,” said Murphy. “On the one hand – a deal is a deal. We said this was a bridge until we get into a better place – and we meant it. On the other hand, it does exacerbate what is a structural deficit that we are running at the moment. And we have to be clear-eyed about that as well.”

Triple checked

The topic also kicked started the legislative leaders panel, which followed an awards presentation that included Murphy accepting an award posthumously on behalf of the late Lt. Gov. Sheila Oliver. That discussion – moderated by Eric Scott, Morning News anchor at New Jersey 101.5 – featured Senate Budget Chairman Paul Sarlo, D-36th District; former Senate Republican Leader Steve Oroho, R-24th District; Assembly Budget Chairwoman Eliana Pintor Marin, D-29th District; and Assemblywoman Aura Dunn, R-25th District.

“It seems like a year ago – we started and ended our legislative panel discussion centered around this issue, which has been talked about a lot today – and that is that 2.5% corporate business tax surcharge and whether it is going to sunset,” said Scott as he began the panel discussion. “We heard Gov. Murphy say that he was not going to renew it. I think everybody on this stage has been universal in that view. Sen. Sarlo – you mentioned that last year at this time. Can we just reiterate for everybody here one more time that that will sunset at the end of December? Everybody in agreement on that?”

All four legislative leaders answered yes to that question.

Sarlo said that a dedicated funding source needs to be found for NJ Transit through a collective collaboration and process between numerous stakeholders, but does not believe using the CBT surcharge is the right way to go about it.

“I have ruled out using the CBT surcharge for a dedicated revenue source for New Jersey Transit,” said Sarlo. “I said it last year. I said it again here today.”

Stay tuned for further coverage from the NJBIA event, including further comments from the governor and the legislative leaders, in an upcoming edition of NJBIZ.