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The New Jersey Business & Industry Association late last month hosted its 2023 Public Policy Forum, drawing who’s who of business and government as well as academic and political experts to discuss policy in addition to the status and direction of the Garden State’s economy and business climate.

The annual event was held at the Delta Hotels by Marriott Woodbridge in Iselin.

It was headlined by a Gov. Phil Murphy keynote speech and a Legislative Leaders panel.

“This is about relationship-building,” said NJBIA President and CEO Michele Siekerka as she opened the program – speaking about the benefits of being able to have all these different leaders and stakeholders under the same roof and not 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.”

In addition to an exhibit hall and networking opportunities, the event included several panels which got underway before the governor’s arrival.

Those panels included:

• New Jersey’s Economic Outlook: A Fireside Chat moderated by Siekerka and featuring Catherine Brennan, former deputy state treasurer and now senior vice president/CFO for New Jersey Institute of Technology and John Cromie, partner, chair, Corporate and Business Law, Connell Foley. The panel offered insights on the state’s economic outlook and into the forces shaping the its financial future and legal landscape
• The Looming Fiscal Cliff: Moderated by Chris Emigholz, NJBIA chief government affairs officer and featuring Regina Egea, former chief of staff for Gov. Chris Christie and current president of Garden State Initiative; Mark Magyar, director of the Steve Sweeney Center Public Policy at Rowan University; and Dave Rousseau, former state treasurer. The group offered insights, analysis and actionable strategies to navigate the challenges ahead.
• Election Perspectives: Moderated by Emigholz and featuring Benjamin Dworkin, founding director, Rowan Institute for Public Policy & Citizenship; Jeanette Hoffman, president, Marathon Public Affairs LLC; Jay Redd, managing director, Stono Public Affairs; and Alex Zdan, former political journalist, News 12 New Jersey. The panel conducted a post-mortem on the recent election, dissecting the current political landscape – including key players, emerging trends and top issues, while looking to the consequential elections coming up in 2024 and 2025.

Following those discussions, Murphy delivered his speech, which hit on a number of issues pertaining to New Jersey and the broader economic trends that Garden State residents and businesses are facing.

As he began his remarks, the governor spoke about the process he began almost six years ago, referencing his running mate and political partner, the late Lt. Gov. Sheila Oliver – who was honored at the event with an award that Murphy accepted on her behalf, along with family and friends – to build a stronger and fairer New Jersey, growing the state economically in an inequitable and financially responsible way.

“We are on a journey. I am proud of the progress we have made,” said Murphy. “But I said this in Atlantic City at the League [of Municipalities annual conference] a couple weeks ago – I don’t want you to think that I am going to tear my rotator cuff patting myself on the back over all of the progress we have made. We have a way still to travel, for sure. But it is also equally accurate to say that we have made a significant amount of progress.”

As he reflected on his banking days, the governor spoke about systematic risk versus unsystematic risk – pointing to geopolitical issues and other such challenges as systematic risk. “So, while you have to acknowledge that reality, spending a lot of time on it is usually a waste of time,” Murphy explained. “But what we have been obsessed with from day one is the unsystematic risk, which is the risk specifically associated with New Jersey and our lot in life and our endeavors. That is one we manage obsessively – 24 hours a day, seven days a week.”

But he said he understands and acknowledges the malaise out there right now with many people struggling financially to make ends meet – facing rising costs in all facets of life.

From there, Murphy spoke about the state trending, overall, in the right direction – pointing to his administration’s record since he took office and the reception a recent delegation he led to East Asia as well as the state’s continued strong performance in education, quality of health care and as a place to raise a family. He noted that there are 66,000 more small businesses now in New Jersey than when he took office and pointed to his administration’s efforts to help small businesses in a variety of ways during the pandemic and after.

Murphy discussed some of the balancing acts from his position, such as helping small businesses to flourish while protecting workers and their rights; affordability versus being able to fund the programs that make New Jersey what it is; and cutting red tape while still protecting communities.

“We have made decent progress. We have to make more at the state, county and local levels,” said Murphy. “But at the same time, do it in a way that does not imperil our communities, our counties and our state.”

The governor then made a bit of news as he spoke publicly to the business community about a hot-button issue that was thought to be resolved, but resurfaced in recent weeks as the lame duck session in Trenton got underway: the sunsetting of the corporate business tax surcharge, which Murphy and legislative leaders agreed to let expire at the end of 2023.

Senate President Nick Scutari, D-22nd District, hinted at revisiting the topic – echoing Jersey City Mayor and 2025 gubernatorial candidate Steven Fulop – as a potential funding source for NJ Transit, which is facing a fiscal cliff. That led to immediate concern and threatened to cause a business community backlash – if Murphy were to go back on his word.

“Michele [Siekerka] would never invite me back again if I did not say – I am still supporting the sunsetting of the corporate business tax on December 31st,” Murphy said. “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.”

As he spoke about the potential revenue softness and economic headwinds, the governor stressed that was why he built a more than $8 million surplus into the budget.

Murphy also hit on two points of importance for the business community – workforce development and child care – noting the state’s investment into both areas.

As he wound down his remarks, the governor spoke about the broad economic reality – saying there is some softness right now as well as some positive indicators, including inflation easing. But he reiterated that there is a gap between what is being seen at the macro level and what the man on the street is feeling. “I am pretty confident we are going to see that reality flip. And it will be a positive reality,” Murphy said. “But it won’t be tomorrow. My gut tells me we are in a six-to-18-month side softness or sideways period of time. But in the medium-to-long-term, I am a huge, huge bull on New Jersey. We are really, really well set up in the medium-to-long-term.”

Following the governor’s speech, the NJBIA honored several leaders, starting with the late Lt. Gov. Sheila Oliver, who was posthumously presented with the Candy Straight Woman Trailblazer Award, which honors women who pave the way for other women in New Jersey politics and government.

“Lt. Gov. Oliver was a strong and inspirational advocate for women business owners through the years,” said Siekerka. “We at NJBIA were extremely appreciative of the time she spent with us with a focus on women business leaders. She attended our leadership programs. She spoke before our women leaders. And she inspired them to reach as high as they can. She inspired countless women to pursue their aspirations in public service and beyond – so much so that her family just yesterday formally announced the establishment of the Sheila Oliver Civic Association, so that her work could be carried on.”

Siekerka presented the award to Murphy, Oliver’s niece and nephew, Renee and Charles, and close friend Joyce Harvey — the latter three will all play prominent roles in the newly established foundation.

“She was a blessed friend and a great leader – a trailblazer, an icon,” said Murphy, who added that he loved the mission of the new foundation to uplift and empower the next “Sheila Oliver’s” of the world.

“Thank you, President Michele and the entire NJBIA team for having us and for, most importantly, honoring my beloved Aunt Sheila in this way,” said Renee Oliver. “I have no doubt that her spirit is with us in this room, and she’s smiling down from above.”

Other awardees included:

• Paul L. Troast Award
• John Ficara, former director and current policy advisor, New Jersey Division of Taxation
• Assembly Budget Chair Eliana Pintor Marin, D-29th District
• Outgoing Sen. Steve Oroho, R-24th District, the former Senate minority leader and budget officer
• Leonard C. Johnson Award
• Joseph Divis, president, retired, AT&T New Jersey
• John Harmon, president and CEO, African American Chamber of Commerce of New Jersey
• John Sarno, president, Employers Association of New Jersey

The event closed with the Legislative Leaders Panel, co-moderated by Siekerka and Eric Scott, Morning News Anchor at New Jersey 101.5, and featuring Oroho; Pintor Marin; Senate Budget Chairman Paul Sarlo, D-36th District; and Assemblywoman Aura Dunn, R-25th District.

The discussion opened by circling back to the CBT surcharge that Murphy touched on, with Scott asking if the panelists were committed to the sunset of the 2.5% tax — all four affirmed.

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.”

The discussion snaked through a number of topics such as the state’s business climate and affordability, the recent NJBIA outlook survey, taxes, regulatory issues, the state budget, manufacturing, EV mandates and more.

As the panel closed, Scott asked each speaker what their top priority will be heading into the new legislative session that could potentially help the business community – with a variation of the question for Oroho, who is departing after this term.

“It has to be more investment in child care,” said Dunn, who noted that she introduced a package of bills on the issue. “I think there is overall agreement on it.”

Pintor Marin mentioned a few priorities such as expanding tax incentives, small business funding, a child tax credit, investing in education for apprenticeships, money for manufacturing, and more.

“I have quite a few things that I am interested in,” said Pintor Marin. “It’s hard to pinpoint just one.”

Sarlo concurred on those issues and initiatives – but said his No. 1 priority remains his role as Senate budget chairman. “The day we get sworn in, we will be hearing from the governor,” said Sarlo. “And it is a sprint until June.”

“And Sen. Oroho – since you won’t be in the new legislative session, I will hand you a magic wand for a moment,” said Scott. “Based on all of your experience up to this point and in your experience dealing with budgets – if you could change one thing that would make New Jersey more business-friendly, what would it be.”

“Looking into how you bring more capital into New Jersey,” said Oroho.