NJ Business Matters: The Blog of the CIANJ

Bureaucratic Trees Block the Forrest in Sussex

The Star-Ledger editorial board uses its page today for one of the most common-sense editorials that could ever be written.

Earlier this week, we blogged about the Ferraro family in Franklin Twp. The family lost their home to a fire, but when they went to rebuild after the tragedy, the state said a COAH fee applied. The new regulations consider the Ferraro's work "demolition" and it falls under the DCA's definition of growth. Senator Steve Oroho (R-24) brought the issue to the media's attention, and has found an ally at the Ledger,

After much prodding from Oroho and others, the department has begun to show signs of coming to its senses. The agency says it plans on "further examining this issue on a broad base to determine the best way to rectify it."

This should take about 10 minutes. The only way to rectify the fee problem is to restore the previous exemption so homeowners can rebuild without an unjust penalty. Community Affairs Commissioner Joseph Doria should immediately order his regulation writers to do that. And not just for the Ferraros.

If the Department does not act, then the legislature will likely step in when it returns next month. Still, why should it take legislative action to correct such an obvious misuse of a rule? Remember, the genesis of this problem is the state's desire to make housing more affordable. How does this help?

Legislative Roundtable with Senator Lesniak

On Tuesday, October 14th, CIANJ will welcome Senator Ray Lesniak (D-20) as our featured Legislative Roundtable Speaker. Senator Lesniak is Chairman of the Senate Economic Growth Committee and has introduced several pieces of legislation important to the business community.

Some of those measures are:

• Senator Lesniak is prime sponsor of the UEZ Jobs Scholarship Act
• He has introduced a measure to cap appeal bonds at $50 million, the same as what is currently exclusive to tobacco companies
• Legislation more clearly defining what financial transactions the BPU has jurisdiction over

The topics for the October 14th meeting will be transportation, economic growth and education reform. To register, visit our website.

Card Check: The Slow, Anti-Democratic, Road to Ruin

On the agenda at the Democratic Convention tonight is one of the most undemocratic pieces of legislation to be seriously considered by Congress - the hopelessly mistitled Employee Free Choice Act. The bill would eliminate the secret ballot vote in unionization drives and instead replace it with a system whereby workers are represented by a union if more than 50% sign authorization cards. Union organizers would be entitled to a worker's home address and could request that the card be signed in the organizer's presence. As one would imagine, it's a system that could lend itself to some aggressive tactics. There is no substitute for a secret ballot. None.

Earlier this month George McGovern took to the Wall Street Journal opinion pages to detail why his Democratic party should not support the stripping of workers' rights.

Under EFCA, workers could lose the freedom to express their will in private, the right to make a decision without anyone peering over their shoulder, free from fear of reprisal.

Today's Journal features a piece by Home Depot founder Bernie Marcus on the same topic. Marcus tackles the issue from a competitiveness standpoint, warning of his company's decision not to expand overseas because of a political environment hostile to business. He closes with a warning to America's CEO's,

It's time to stand up and fight. America's competitiveness, jobs and right to a secret ballot are at stake. CEOs, employees who want to keep their jobs in America -- and those retirees like me who would not be where we are today but for our system of free enterprise -- must stop this anti-democratic legislation.

Higher Energy Prices? So Be It

The Asbury Park Press is demanding that the State of New Jersey take steps that could result in the shut down of the Oyster Creek Generating Station in Lacey Township.

The owners of the Oyster Creek nuclear generating plant in Lacey said in a recent filing with the Nuclear Regulatory Commission that they might have to shut down the reactor if the state requires it to build cooling towers to minimize fish kills and other environmental damage caused by the plant. Then so be it. (emphasis ours)

"So be it" is not sound energy policy and is exactly the wrong attitude a government should take toward a facility that provides 625 megawatts of power while generating virtually zero greenhouse gas emissions. Rather, the State should be doing all it can to actually keep generating facilities open. The alternative is to further restrict supply and drive up prices on New Jersey's businesses and families. It's a message CIANJ drove home during our testimony on New Jersey's Energy Master Plan.

Regular blog readers know that New Jersey cannot reach its current CO2 emission goals without nuclear power. The technology is simply not yet available, unless one is willing to choke off our economy.

We'd note that the APP has also taken editorial positions against floating liquefied natural gas facilities, off-shore drilling and offers only minimal support for the exploration of off-shore wind farms as a future option. With that kind of energy "plan", it's going to get pretty cold and dark around here.

Making Housing More Expensive Through Affordable Housing

Senator Steve Oroho (R-24) is bringing to light another unintended consequence that has emerged as a result of new affordable housing requirements. Earlier this month, we blogged about a shopping center in Evesham that was not constructed because the town could not afford the COAH fees that would come with it. Because, you know, adding jobs needs to come with a cost.

In Franklin, Oroho shines a light on a family that lost their home (and family dog) to a fire. Somehow, the rebuilding of the house is considered a "demolition" and thus "growth" and has an affordable housing fee attached.

"Obviously, the state needs to do the right thing, not just for us, for anybody in the same situation," Jacqueline Ferraro said Monday. "How could they victimize somebody who's already been victimized? Anybody who's been a victim of a fire shouldn't have to pay a COAH fee."

Under the new regulations, demolitions are considered a "source of secondary housing demand, as they eliminate housing opportunities for low- and moderate-income households," according to Oroho. The rules removed a prior exemption for the demolition and replacement of a home, in which a homeowner was not on the hook for a COAH fee.

The State counters that there is nothing in the new COAH rules that say the family must pay the fee, and that the town can always choose to shoulder the burden for any "development".

That logic begins with the concept that when someone's home is destroyed by fire, there must be an additional burden imposed to begin rebuilding. New Jersey can do better than that.

Demanding Accountability and Change - Sans Offering Real Change

The expected Parade of Outrage continues into this week over the lavish (and perhaps undeserved) perks and salary increases offered to school superintendents in New Jersey. Playing the role of grand marshal in the media is the Star-Ledger, which calls the behavior "shameful", and adds,

State Senate President Richard Codey said he'll introduce legislation to stop this insanity. Education Commissioner Lucille Davy is also planning regulations to guard against a recurrence. Both are appropriate responses.

Still, one has to ask about the integrity of the school officials who did this. Why would it be necessary for a district to tell a top educator that a degree from a diploma mill simply won't cut it? It's akin to writing in the parents' handbook, "Don't lock your child in a dark basement." Shouldn't some things be obvious?

Maybe they didn't read the response from the Freehold superintendent who declared he would do the same thing again, except to look into "this word, accreditation".

In Trenton, the latest intriguing solution is offered by Assemblyman Diegnan, who would create a standard contract template to more easily expose those who try to game the system.

Diegnan's proposed legislation would require that all school districts in New Jersey use a standard template when hiring a new superintendent. The template would be created by state education officials and would address all aspects of employment including salary, health insurance, pension, sick days, and vacation. School boards and prospective superintendents seeking to deviate from the standard contract would have to seek approval the Commissioner of the Department of Education.

The Assemblyman's proposal is clearly worthy of thorough examination and demonstrates the correct style of approach. However, all solutions offered thus far attack the symptom of educators trying to enrich themselves at the bargaining table in creative ways.

A root cause of what makes that gaming possible is a government run monopoly. If parents had a choice to pull their kids out of a school district that was throwing taxpayer money at phony colleges for useless degrees, the shenanigans would be unaffordable. Without such fundamental change, you cannot have necessary fundamental reform.   

Union Pressure Tactic Jeopardizes A.C. Economic Development Project

Down in Atlantic City, the Press editorial board has taken issue with Bob McDevitt, president of a local union currently in negotiations with Revel Entertainment, and his attempt to pressure the company through jeopardizing economic development in an area that needs it.

The city council voted to approve $56 million worth of bonds for road improvements surrounding a proposed $2 billion Revel development. Those bonds will be paid by the company, not the city, and because of the high value of the land the city inherits virtually no risk.

The union leader appears to not let the truth get in the way of his negotiating strategy, and has taken up a petition to stop the bond issuance - and the economic growth prospects of the city.

No one can say what a person's motivations are. But it sure looks as though a petition circulated by Bob McDevitt, leader of Local 54 of UNITE-HERE, is aimed more at squeezing Revel Entertainment on union issues than putting a bond deal before voters....

If the petition is aimed at pressuring Revel, that's troubling. Using a tactic that could delay this kind of development at a time when the city is struggling to maintain its competitive edge is dangerous - both to the local economy and to the members of McDevitt's own union.

Kudos to the Atlantic City Press for alerting the city's residents about a disingenuous petition, and urging them to see it as such.

Voters, Once Again, Say They Want Energy

A Wall Street Journal/NBC Poll re-re-confirms that voters want American policy to be one of increased energy production, including nuclear energy.

When asked whether expanding areas for drilling for oil off coastal states was a step in the right direction, 63% said it was, with 44% saying it would accomplish "a great deal." Only 27% said that allowing more drilling off coastal states was a step in "the wrong direction."

Asked about building more nuclear plants, 53% said it was a step in the right direction. Thirty-one percent said it was a step "in the wrong direction."

"Voters are telling us they want everything," said Neil Newhouse, a Republican who conducts the poll with Democrat Peter D. Hart. Mr. Hart.

Congress is still out on its "Summer Work Period" (formerly known as recess). While they're out looking for votes, be sure to ask them where they stand on energy production. If they say they oppose drilling or nuclear power, ask them how they then plan to repeal the law of supply and demand. E-mail us their answers.

Maybe They Should've Gotten Degrees in Logic

Less than a week after declaring she was "powerless" to stop educators from receving tuition reimbursement and pay raises based on degrees from diploma mills, State Education Commissioner Lucille Davy now says she will draft rules to stop the practice. It may have something to do with this scathing letter and press release from Senate President Codey.

In the statement, Codey quoted one Freehold educator's excuse for accepting taxpayer dollars to reimburse his tuition at Breyer State,

To quote Freehold Superintendent H. James Wasser, ‘The only thing I would probably do differently, is now that I am aware of this word ‘accreditation,' I would probably thoroughly research that.’

Herein lies the perfect example of why our administrators should receive degrees from accredited universities – to save us the embarrassment of having educational leaders who are unaware of such qualifications to begin with. 

At the very least this is stupidity, at the worst, it may be criminal.”

That middle piece is pretty funny, until you realize it is the rest of us that serve as the ultimate punchline. Codey will draft legislation, Davy will re-write rules, but until taxpayers take an active role at their local level there will be future - more creative - attempts to game the system.

Meanwhile, the Asbury Park Press has uncovered even more educators with degrees that involved sending in little more than a check and a resume.

International Competition Isn't Just for Gymnasts

It's back to school time and American parents are looking for products to help their kids maximize achievement in the classroom. Unfortunately, as the Heritage Foundation's Dan Lips points out in the Philadelphia Inquirer, many never have a say in the most important variable in the education equation - the school their child will attend.

Adjusted for inflation, the US spends more per-pupil than ever, and here in New Jersey we spend more than anywhere else on planet Earth. Despite that, the U.S. ranks in the twenties among industrialized nations in math and science and one-fourth of all students never earn a high school diploma. The problem is even more pronounced in our urban centers, where poverty puts the greatest restrictions on where a parent can send their child to school.

Imagine how much stronger the American education system would be if families had greater control over the 100,000-plus tax dollars that are spent on their children's educations. Families could choose schools - just as they now shop for school supplies and backpacks - shopping for the right classroom that meets their children's unique needs.

For some, greater parental control might mean choosing to enroll their child in a different school, instead of the neighborhood public school. For others, it might mean supplementing their child's schooling with tutoring or extracurricular activities.

Across the nation, policymakers are slowly but surely giving parents more control over their children's education. Many states now offer families some choice in what kind of public school they send their children to. Additionally, 14 states and Washington, D.C., have programs to give more families the option of choosing between public and private schools for their children.

If all families had the power to choose the best school for their children, schools would work to attract them - showing why they offer a superior learning environment that meets children's specific needs. Struggling schools would face more pressure to turn themselves around, and the best schools would become models that are replicated across the country.

Here in New Jersey, a pilot program is sitting on the desks of legislators, awaiting an up-or-down vote. The UEZ Jobs Scholarship Act would, by its fifth year, allow up to 20,000 poor children in eight cities the opportunity to go to a school of their choosing - public or private. They would be tested in the same way as their peers in existing public school, and the legislature could then decide whether the program merits being extended. Even better news is that kids in the program would be educated at 40%-60% less than their peers in local public schools.

It's time for a fundamental change. If the US ranked in the twenties in the medal count in Beijing, there would be a national outcry. More money thrown into the same system has not produced better results. Just as it does in the private sector, genuine competition would. Just ask the residents of Milwaukee, Washington, Florida and elsewhere who have already voiced their support of existing school choice programs. Don't Jersey's kids and taxpayers deserve the same?