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Assembly Majority Leader Lou Greenwald penned an open letter to Assembly Speaker Vincent Prieto over the weekend urging him to post a bill allowing for a state takeover of Atlantic City’s finances for a vote.The letter, which featured the signatures of 12 other South Jersey Assembly Democrats in addition to Greenwald (D-Voorhees), called on Prieto (D-Secaucus) to at least consider the measure and allow legislators to decide its fate.
“A failure to act in response to this dire circumstance is not an option,” the Assembly members wrote in the letter. “The majority of the New Jersey General Assembly cannot stand idly by and passively watch the collapse of one of our greatest cities and the financial impairment of an entire county and region of our state.”
Already passed by the Senate last month and strongly supported by Senate President Steve Sweeney (D-West Deptford), the takeover bill would grant the state greater power and responsibility in the restructuring of Atlantic City’s finances for a five-year period.
Prieto, alongside Atlantic City Mayor Don Guardian, has rejected the measure on the grounds that it goes too far and threatens existing collective bargaining contracts.
Gov. Chris Christie, a supporter of the takeover bill, chimed in late last week in a news conference, during which he accused Prieto of “playing gubernatorial politics with the public-sector unions” and placing the entire state’s financial well-being at risk.
Christie doubled down by saying that if Prieto doesn’t post the bill for a vote, he’ll work to campaign against a voter referendum this fall that seeks to expand casino gaming beyond Atlantic City.
Prieto fired back with a statement noting that while he is “still willing to compromise,” it “must be a real compromise that protects core principles.”
The letter issued by Greenwald also warned that the stalemate threatens the entire state’s economy.
“The crisis of Atlantic City unfortunately does not stop at the city’s borders,” the letter said. “Atlantic City’s financial ruin will have a significant impact on other New Jersey governmental entities. These entities and all taxpayers will suffer as the costs of borrowing skyrocket because lenders will now be on notice that the state may not stand behind other financially distressed governmental entities. These are the ramifications that will be felt throughout the state if the majority of the New Jersey General Assembly continues to passively watch this financial destruction unfold. The course of inaction you have chosen for us will not allow for a faithful discharge of our duties as members of the New Jersey General Assembly.”
But just as some of South Jersey’s Democratic Assembly members have dug in, counterparts from North Jersey have largely sided with Prieto.
“I stand with Speaker Prieto in urging the governor to act or come to the table and listen to new ideas before it’s too late,” said Assemblyman James Kennedy (D-Rahway).
“Now is the time to work together,” added Assemblyman Nicholas Chiaravalloti (D-Bayonne). “I hope the governor will forget all the political theatrics and work with Speaker Prieto and the Assembly on a sensible solution that doesn’t do more harm than good.”
Tag: South Jersey
NJBIZ stories taking place in and involving South Jersey businesses, companies and business news.
South Jersey law firm expands through acquisition
A South Jersey law firm has acquired a boutique workers’ compensation practice, it announced Monday.Freeman Huber Sacks Brennan & Fingerman, located in Haddonfield, will now be part of Westmont-based Brown & Connery LLP. The deal adds seven attorneys and an office to Brown & Connery, which will now have 44 lawyers and five offices in New Jersey and Pennsylvania.
William T. Freeman, managing partner of the smaller firm, will become a partner with Brown & Connery, leading its workers’ compensation defense practice.
“We are very pleased that the Freeman firm has agreed to join Brown & Connery,” Stephen J. DeFeo, Brown & Connery’s managing partner, said in a prepared statement. “Their workers’ compensation focus and experience makes them a perfect fit for us. This addition will expand the range of services available to clients served by our employment law department. It will also provide their existing clients with a full array of employer-related representation.
“We are excited to have them join us and we look forward to providing additional services to our clients and theirs.”
Christie slams Prieto for ‘playing gubernatorial politics’ with Atlantic City takeover bills
Gov. Chris Christie resumed his attack on Assembly Speaker Vincent Prieto on Thursday, accusing him of “playing gubernatorial politics with the public-sector unions” by not posting a bill that would allow for a state takeover of Atlantic City’s finances.In doing so, the governor also threatened to campaign against the proposal to bring casino gaming to northern New Jersey if the legislation is not put up for a vote.
The ongoing battle was the subject of a news conference called by Christie on Thursday, at which he said Prieto (D-Secaucus) is choosing to court the favor and political support of labor organizations by rejecting the measure on the grounds that the takeover bill goes too far and threatens existing collective bargaining contracts.
“Enough theater from the speaker,” Christie said. “He’s made his point to his public union bosses.”
Christie added that Prieto is also appealing to Jersey City Mayor Steven Fulop, who is rumored to be preparing for a 2017 gubernatorial run against Senate President Steve Sweeney (D-West Deptford), another potential candidate and supporter of the takeover measure.
“It’s clear that the mayor and the speaker are working in concert to try and hurt the Senate president and advantage themselves,” Christie said.
Prieto and Fulop both fired back after the conference. The Assembly speaker said Christie “needs to accept responsibility and stop blaming others.”
“The fact remains that Gov. Christie has sufficient authority to save Atlantic City from financial catastrophe, but instead of action, he makes excuses, spouts conspiracy theories about the next gubernatorial election and makes up stories about alleged promises,” Prieto said. “He should focus on doing his job.”
In addition to his contract concerns, Prieto has alleged that the state already has the necessary power to intervene to some degree in Atlantic City’s affairs without the additional legislation and that another measure, which would allow casinos to make payments in lieu of taxes to help pay down the city’s debt, is a more crucially needed bill at this time.
To that point, Christie called Prieto’s assertion a “fairytale” that is “just wrong.”
“If I did, why would I be fighting about this?” Christie said about having the authority to act.
Christie added that having the city default would jeopardize the credit ratings of municipalities all across the state and inaction is “putting at risk the livelihood of people in Atlantic City.”
Adding that previously, Prieto “absolutely looked me in the eye” and pledged to at least post the bill for a vote, Christie urged the speaker to fulfill that promise in time for next Thursday’s voting session. The measure has the votes to pass, Christie alleged.
The governor also made note of the fact that several of the Assembly members who are backing Prieto on his position are also in favor of bringing casino gaming to northern New Jersey through a voter referendum this fall.
Christie said that if the legislation is not put up for a vote and brought to his desk in its current form, he will choose to actively work to defeat the referendum, despite his support for it.
With a bankrupt Atlantic City, such a referendum would have “no chance of winning,” Christie said.
“If, in fact, the bills don’t come to my desk, I will campaign against it,” Christie said of the referendum.
To that end, Prieto said the governor can “campaign as he chooses.”
“It wouldn’t be his first flip-flop, and he would just be risking hurting Atlantic City by denying it funding it sorely needs from North Jersey gaming to transition into a resort destination,” said Prieto. “I am still willing to compromise, and welcome the governor’s call. I will see what the governor has in mind, but it must be a real compromise that protects core principles.”
Fulop responded to Christie’s comments in a statement following the news conference, claiming that Christie is “not subscribing to the politics of maturity with the name calling and accusations.”
“I’m not going to engage in a tit-for-tat name calling dialogue with the governor, as that doesn’t serve anyone,’ Fulop said. “There is zero substance to his accusations and this amounts to nothing more than a temper tantrum. If the governor wants to stop North Jersey gaming as a result of this tantrum as he threatens, that is his choice — it doesn’t bother us either way. Jersey City will be just fine.”
Cooper study shows relationship between happy patients and better medical results
Positive patient experiences do in fact translate to favorable clinical outcomes.The relationship previously thought to exist has been confirmed in a study published March 17 by researchers at Cooper University Health Care.
Patient satisfaction is a key buzzword in the hospital industry since the Centers for Medicare and Medicaid Services has increasingly used it as a factor for payments to health care organizations, as well as a criteria for hospitals’ star ratings, Cooper said in a statement.
“While all of these initiatives have been put in place, the relationship between patient experience and clinical outcomes has not been entirely clear, and this has been the subject of controversy in the medical community,” said lead author Stephen Trzeciak, head of the Division of Critical Care Medicine at Cooper and a professor of medicine at Cooper Medical School of Rowan University. “Our goal in this study was to test the association between CMS patient experience star ratings and clinical outcomes by analyzing risk-adjusted data for more than 3,000 U.S. hospitals from the CMS Hospital Compare database.”
The study notes that many in the medical community have dismissed patient satisfaction, since it relies on the subjective, non-medical-expertise comments of patients.
But communication between the caregiver and patient was cited as a major factor in the resulting satisfaction ratings in the study, and a possible theory explained.
“Multiple potential theories exist by which patient experience could affect clinical outcomes and vice versa. Health care providers who are diligent about providing excellent patient experience may be similarly diligent about excellence in all elements of patient care,” the authors said in the study.
The results in this study are different from previous studies because there is more combined data available, rather than for just one domain, the authors said.
The study was completed by Trzeciak, Joshua Bosire, John Gaughan and Anthony Mazzarelli.
“We found a significant association between better patient experience and multiple clinical outcomes, with the most consistent association found between higher star ratings and lower readmission to the hospital,” Trzeciak said. “Multiple potential theories exist that could explain this association and more study is needed.”
Rutgers starting global sports business program
Rutgers University announced Tuesday that it has created a new graduate program in global sports business, starting in the fall 2016 semester.The graduate program, which would lead to a Master of Science, is a multidisciplinary course of study offered by the Department of Exercise Science and Sport Studies in the School of Arts and Sciences, the university said in a news release.
“With its strong interdisciplinary approach and commitment to global engagement, this program is a great addition to the School of Arts and Sciences,” Executive Dean Peter March said in a prepared statement. “In creating a curriculum for the sports business world, the program fuses intellectual inquiry with practical application, building students’ knowledge and skills and effectively preparing them for leadership in this growing and competitive industry.”
The curriculum will include 12 three-credit courses, a three-credit internship and a one-credit continuing colloquium of speakers, the university said.
“We have created a curriculum centered on intensive classwork, case studies, mentorships, field work and executive training residency,” Mike Finkelstein, executive director of the program, said in a statement. “With its focused and interdisciplinary approach, our graduates will be uniquely prepared to add immediate value at the managerial, director and C-levels and establish themselves as key decision-makers in the sports industry.”
Destination Maternity’s CFO leaving for another company
Moorestown-based maternity fashion retailer Destination Maternity Corporation is searching for a new chief financial officer, it announced Tuesday.The company said Judd P. Tirnauer, its executive vice president and CFO, is leaving effective April 22 to join a private specialty retailer in a senior leadership role.
“Following a 15-year career at Destination Maternity, I believe the time is right to make a personal change and pursue a senior leadership role with another specialty retailer,” he said in a prepared statement. “I am making this transition with Destination Maternity having a solid financial and operational foundation, and a talented team to continue to execute its turnaround. I am grateful I had the opportunity to work with such a passionate and driven team, and I wish the company and all of its team members the very best.”
Tirnauer joined the company, which was then known as Mothers Work Inc., in November 2001, and worked his way up to CFO by 2008.
“One of Judd’s great accomplishments in that position has been his development of a strong financial team, as well as strong internal control processes, that leave us well-positioned as we move forward after his departure,” CEO and President Anthony Romano said in a statement. “I appreciate his professionalism in offering to help us with an orderly transition before he leaves for his new opportunity, and I wish him the best.”
Campbell announces plans to transition away from cans using chemical BPA
Campbell Soup Company said Tuesday that it is transitioning its famous soup cans away from so-called BPA linings to ones made from acrylic or polyester materials.The Camden-based food company said the transition, which has been in the works since February 2012, began this month and should be complete by mid-2017. Although the company says linings involving the chemical Bisphenol A have been in use for more than 40 years, heavily studied and regulated, consumer feedback has pushed for alternatives.
Campbell said it has tested hundreds of possible choices for can linings over the past four years, as it needed to ensure any chosen lining would be compatible with such products as tomato-based ingredients, which are naturally acidic.
“Our priority throughout this transition has been, and will continue to be, food safety,” Mike Mulshine, senior program manager, packaging, said in a prepared statement. “We have tested and conducted trials with hundreds of alternatives to BPA lining and believe the acrylic and polyester options will ensure our food remains safe, affordable and tastes great.”
Products using the non-BPA lined cans will include Campbell’s soups, gravies, Swanson brand broths and SpaghettiOs pasta.
Some other products, such as V8 beverages, are undergoing testing to find non-BPA options, Campbell added. Still other products, such as cartons and pouches, do not use BPA in their linings.
Pharmacy solutions firm moving 100 jobs from West Deptford to Philly
Enclara Pharmacia, a Philadelphia-based hospice pharmacy solutions company, is moving 100 jobs from its West Deptford facility to its Pennsylvania headquarters, but maintaining the New Jersey location.Although the company issued a WARN notice indicating the New Jersey positions would no longer exist in the Gloucester County township, it confirmed the jobs are simply moving out of state and no layoffs would take place.
Scott Baach, Enclara’s executive vice president, chief administrative officer and general counsel, told NJBIZ that the West Deptford facility would remain open, licensed as a pharmacy, adding that “We are currently exploring options to acquire or develop a complementary pharmacy or health care services business to operate out of that location.”
The West Deptford site had been the clinical operations and dispensing center for the company’s Enclara Health LLC affiliate, a national hospice pharmacy services company, Baach said. After the company’s acquisition of Philadelphia-based excelleRx in August 2014, the combined business became Enclara Pharmacia, but also found itself with the two locations.
Baach said: “After researching various locations in both New Jersey and Pennsylvania, we ultimately decided to consolidate our hospice service business in the former headquarters location for excelleRx. We are in the process of renovating that space and expect to move our New Jersey-based staff over in May 2016.
“The consolidation of our headquarters and clinical operations to one location makes it easier and more efficient for us to oversee our day-to-day operations and respond to our customers’ needs.”
The notice sent to the New Jersey Department of Labor and Workforce Development indicated that “All employees will be offered continued employment pursuant to the same benefits, pay and other terms and conditions of employment, except that any pharmacists must be licensed to practice pharmacy in Pennsylvania as a condition of employment.”
Maker of steak, chicken products is expanding in Vineland
Allied Specialty Foods Inc. — a manufacturer of steak and chicken products for food service distributors, restaurant chains and other food manufacturers in the U.S., Canada, Puerto Rico and foreign U.S. military bases — is staying and expanding its operations in New Jersey.While the company had previously expressed interest in relocating to Delaware, it has instead chosen to invest $14 million into a 75,000-square-foot facility on 8.8 acres in the Vineland Industrial Park that will become business headquarters and the operating plant by the fourth quarter of this year.
“Allied Specialty Foods Inc. has called the state of New Jersey home for more than 20 years, and we are thrilled that it will continue to be headquartered in Vineland for the next 20 years and beyond,” Paul Litten, president and operating partner, said in a statement.
The company received a $3.5 million loan from the Vineland UEZ program and a Grow New Jersey Assistance Program award from the New Jersey Economic Development Authority in the amount of $13.7 million to create new jobs.
“Allied Foods has been a staple in Vineland for decades, and its expansion brings a new infusion of jobs and economic benefits to the region,” New Jersey Lt. Gov. Kim Guadagno said in a statement.
Over 70 new jobs will be created in addition to the company’s current 130 employees.
The two existing facilities will become expanded manufacturing operations and cold and frozen storage spaces.
“We see the steak sandwich market continuing to grow, especially among restaurants that currently provide hamburgers on their menus,” Litten said. “Our expansion will help us keep up with the continued increasing demand for these products.”
Allied Specialty Foods hopes to become the No. 1 steak sandwich supplier in the country. Its products are currently used in popular meal items such as the famous Philly cheesesteaks.
Founded in 1956, company sales in 2015 were estimated to be $50 million.
Employment numbers are mixed bag as unemployment rate falls, but so do total jobs
The monthly employment figures released by the New Jersey Department of Labor and Workforce Development were a tale of two numbers.On the upside, the state’s unemployment rate shrank for the 13th consecutive month, dropping 0.2 of a percentage point to 4.3 percent in February. That mark is 2 percentage points lower over the year from February 2015 to February 2016, and now stands 0.6 of a percentage point lower than the national unemployment rate of 4.9 percent.
“We haven’t seen an unemployment rate of 4.3 percent since August of 2007, and that is only part of the good news,” James Wooster, the state’s chief economist, said in a prepared statement. “The reduction in the unemployment rate is accompanied by an increase in the number of people seeking work, by steady improvements in the New Jersey housing market and by improvements in the manufacturing and business outlook.
“It seems like yesterday that everyone was concerned about the New Jersey economic recovery lagging that of the nation, but those days are over.”
On the downside, however, private sector employment fell by 8,600 jobs from January, according to data from the U.S. Bureau of Labor Statistics. That compounded January’s figure, which was revised downward to a monthly loss of 15,700 jobs, giving the state a two-month losing streak when it comes to total nonfarm employment.
For February, the state lost 10,200 private-sector jobs while adding 1,600 public sector positions.
Among industries, financial activities gained 1,900 jobs for the month, while trade, transportation and utilities gained 1,500 jobs and manufacturing gained 500 positions.
On the other hand, there was a steady pattern of declines across other industries: professional and business services lost 5,600 jobs, leisure and hospitality lost 2,500, education and health services lost 2,200, other services lost 1,900, information lost 1,300 and construction lost 600.
These N.J. counties experienced the highest population growth
Jersey City must be doing something right. The U.S. Census Bureau has released its population growth figures for 2015, and Hudson County showed the largest percentage gain among New Jersey’s counties, adding 0.8 of a percent in population.Bergen County, the state’s most populous county, actually added the largest number of people from July 2014 to July 2015, with a gain of 5,670, to 938,506 residents, but its percentage growth of 0.6 of a percent was only good for second.
Hudson County grew by 5,334 people, to 674,836.
At the other end of the scale, Sussex County ranked last among the state’s 21 counties, losing 0.9 of a percent of its population.
The state as a whole grew 0.2 of a percent, to 8,988,013 residents as of July 1, 2015, the Census Bureau said.
By way of comparison, the nation’s fastest-growing county was McKenzie County, North Dakota, which grew 16.7 percent.
Here are the county-by-county results, in order of percentage gain/loss:
- Hudson County: 674,836 residents, up 5,334 or 0.8 of a percent;
- Bergen County: 938,506 residents, up 5,670 or 0.6 of a percent
- Union County: 555,786 residents, up 2,737 or 0.5 of a percent;
- Ocean County: 585,916 residents, up 2,805 or 0.5 of a percent;
- Middlesex County: 840,900 residents, up 3,561 or 0.4 of a percent;
- Essex County: 797,434 residents, up 2,472 or 0.3 of a percent;
- Somerset County: 333,654 residents, up 1,020 or 0.3 of a percent;
- Gloucester County: 291,479 residents, up 581 or 0.2 of a percent;
- Passaic County: 510,916 residents, up 1,003 or 0.2 of a percent;
- Morris County: 499,509 residents, up 273 or 0.1 of a percent;
- Warren County: 106,869 residents, up 14 or break-even;
- Camden County: 510,923 residents, down 44 or break-even;
- Monmouth County: 628,715 residents, down 303 or break-even;
- Mercer County: 371,398 residents, down 203, or 0.1 of a percent;
- Burlington County: 450,226 residents, down 451 or 0.1 of a percent;
- Hunterdon County: 125,488 residents, down 322 or 0.3 of a percent;
- Atlantic County: 274,219 residents, down 1,280 or 0.5 of a percent;
- Cape May County: 94,727 residents, down 632 or 0.7 of a percent;
- Salem County: 64,180 residents, down 490 or 0.8 of a percent;
- Cumberland County: 155,854 residents, down 1,245 or 0.8 of a percent;
- Sussex County: 143,673 residents, down 1,331 or 0.9 of a percent.
For more information on the Census Bureau’s population data, click here.
A.C. Electric’s parent, Pepco, completes merger with Exelon
Atlantic City Electric has a new parent company after the merger between Pepco Holdings Inc. and Exelon Corporation was approved by the Public Service Commission of the District of Columbia on Wednesday.Exelon said in a news release that the merger deal between the two utility holding companies closed effective Wednesday, making it the owner of the New Jersey utility, as well as five other utility companies: its previous holdings, BGE, ComEd and PECO, plus Pepco Holdings’ Delmarva Power and Pepco.
“Our combined companies will bring meaningful economic and service benefits to Pepco, Delmarva Power and Atlantic City Electric customers,” Joseph M. Rigby, chairman, CEO and president of Pepco Holdings, said in a prepared statement.”
Rigby will retire as a Pepco Holdings officer as part of the transaction, with David M. Velazquez taking on the role of CEO and president. Chris Crane will remain CEO and president of Exelon.
“Today, we join together as one company to play a vital role as a leader in our industry and the mid-Atlantic region,” Crane said in a statement. “We’ve made a number of commitments to customers in all of the Pepco Holdings utilities’ jurisdictions — the District, Maryland, Delaware and New Jersey — and we look forward to getting to work to deliver those benefits to our customers and communities.”
Atlantic City Electric will remain a separate company, headquartered in Mays Landing, Exelon said.
The transaction received all necessary shareholder and regulatory approvals before its closing, the company said, including from the New Jersey Board of Public Utilities.
As a result of the merger, Pepco Holdings common stock will no longer be listed on the New York Stock Exchange.