A national survey that included New Jersey employers found the health benefits costs of large Garden State companies rose 6.6 percent in 2009, to an average of $10,522 per worker — and employers said they will try to control health care inflation in 2010 by shifting costs to employees, making changes to their plans or switching insurers.
The New Jersey results were part of Mercer’s annual survey of employer-sponsored health plans.
The New Jersey respondents estimated that if they made no changes to their current plan, costs would rise by 10.2 percent in 2010. However, they expect to lower their cost increase to 6.1 percent by making changes to plan design and switching to a new health care provider.
Nearly half, or 47 percent, said they will shift costs to their employees in 2010 by raising deductibles, co-pays or out-of-pocket maximums.
One-quarter of the New Jersey respondents said they offered a consumer-directed health plan this year that includes features such as a health savings account; 27 percent say they will offer it again in 2010.
While the survey only broke out large-employer results for New Jersey, the nationwide study included large and small employers. The national results revealed small employers are cutting health care costs by moving employees into high-deductible policies, which offer significantly lower premiums.
“Small and large employers used different strategies to keep cost growth down in 2009,” said Rich Fuerstenberg, a consultant with Mercer’s health and benefits business in Princeton. “Small employers moved employees into low-cost, consumer-directed health plans and raised deductibles.” Large employers were more likely to offer programs and policies designed to improve work force health, he said.
Nationwide, the percentage of workers enrolled in a high-deductible plan rose to 9 percent in 2009, from 7 percent last year, according to Mercer.
The survey included public and private organizations with 10 or more employees, and received 2,914 responses.
Wednesday, November 18, 2009
New Jersey Unemployment Rate Fell to 9.7% in October
Nov. 18 (Bloomberg) -- New Jersey’s unemployment rate fell one-tenth of a percentage point in October to 9.7 percent from a 32-year high the previous month, according to the state’s labor department.
The rate last month compares with 6 percent in October 2008. Total nonfarm employment in the state fell by 1,800 positions to 3.9 million in October, after a loss of 10,600 jobs from August to September, the department said in a statement.
“The preliminary estimates for October, in which the unemployment rate declined and monthly job losses slowed, show signs that a slow recovery is under way,” Labor Commissioner David Socolow said in the statement.
The U.S. unemployment rate jumped to 10.2 percent in October, the highest level since 1983, from 9.8 percent in September.
New Jersey’s private-sector employment was lower by 4,400, while public sector jobs rose by 2,600. The largest private- sector losses were in professional and business services, with a loss of 3,600 jobs; and financial activities, with a decline of 3,000 positions. The trade, transportation and utilities sector lost 2,200 jobs, largely because of less-than-expected seasonal hiring in retail businesses, the department said.
Construction and manufacturing jobs each gained by 1,600, according to the labor department.
September’s jobless rate of 9.8 percent was the state’s highest since April 1977, labor department data show.
The rate last month compares with 6 percent in October 2008. Total nonfarm employment in the state fell by 1,800 positions to 3.9 million in October, after a loss of 10,600 jobs from August to September, the department said in a statement.
“The preliminary estimates for October, in which the unemployment rate declined and monthly job losses slowed, show signs that a slow recovery is under way,” Labor Commissioner David Socolow said in the statement.
The U.S. unemployment rate jumped to 10.2 percent in October, the highest level since 1983, from 9.8 percent in September.
New Jersey’s private-sector employment was lower by 4,400, while public sector jobs rose by 2,600. The largest private- sector losses were in professional and business services, with a loss of 3,600 jobs; and financial activities, with a decline of 3,000 positions. The trade, transportation and utilities sector lost 2,200 jobs, largely because of less-than-expected seasonal hiring in retail businesses, the department said.
Construction and manufacturing jobs each gained by 1,600, according to the labor department.
September’s jobless rate of 9.8 percent was the state’s highest since April 1977, labor department data show.
Sy Syms, 83 - Retailer created a discount clothing empire
Sy Syms, 83, the discount retailer who for 35 years told millions of television viewers that "an educated consumer is our best customer," died of heart disease Nov. 17 at his home in New York City.
The off-price clothing that Mr. Syms sold on unadorned racks in large, no-frills stores, mesmerized customers who recognized prestige designer labels in the lining. Although not all of the attire was actually the same Pierre Cardin jacket or Brioni suit you'd find it Italy, it was good enough to satisfy bargain-hunting customers who needed a decent suit for a job interview, and it made Mr. Syms a multimillionaire.
Syms Corp., a New Jersey-based public company, operates 30 stores in 13 states. In June, it acquired Filene's Basement, adding 22 stores to its empire. Mr. Syms, who was succeeded by his daughter Marcy as the chief executive in 1998, remained the firm's chairman.
His success was due in no small part to the television commercials in which he appeared, starting in 1974, and that are still on the air.
"My father had an uncanny talent that made him sensitive to the needs of his customers and the changes in the marketplace," Marcy Syms said in a statement. "He knew the time was right for off-price retailing. Certainly he was ahead of his time."
Seymour Merinsky was born May 12, 1926, in Brooklyn, N.Y. His family changed its surname to Merns when Mr. Syms's father and older brother opened a clothing store by that name. Mr. Syms originally didn't plan to enter the rag trade. He served in the Army, then graduated from New York University with a broadcasting degree. In 1948, he became a sportscaster in Cumberland, Md.
After two years, he returned to New York to join the family business.
But family businesses are nothing if not dispute factories, and by 1959, Mr. Syms left to open a rival store around the corner. He named it "Sy Merns" but lost a court battle with his family and was forced to rename the store. He chose Syms and later changed his own name to match it.
"I remember when he first began Syms," said Marcy Syms in a 2006 New York Times profile. "He would do deliveries on Sunday so he would be one day ahead when the stores opened on Monday. He had about three stores at the time, and here he was loading up a Dodge station wagon, driving around town and unpacking boxes of inventory."
Store by store, Mr. Syms built an empire based on discounted men's clothing, which later expanded into women's and children's clothes. The company went public in 1983.
A 1985 Forbes magazine article said the company's profit margin was among the highest in all of retailing, about 13 percent before income taxes. Syms bought surplus goods from manufacturers and also contracted with them to turn their uncut fabrics into special, lower-quality versions of their more expensive clothing. Syms bought in bulk, in cash and agreed not to advertise the brands, snipping off the labels at the checkout counter, the Forbes article said.
Although Mr. Syms was among the first to exploit this inefficiency in the clothing business, he was not alone for long. Men's Wearhouse, Marshall's, Mervyn's, T.J. Maxx and many others adopted similar strategies.
Mr. Syms donated millions to Yeshiva University in New York, which named its business school for him. He was a major philanthropist with a wide variety of causes. In 1998, he offered to buy the New York Yankees to keep the team from moving to New Jersey.
His first marriage, to Ruth Glickman Merns, ended in divorce. Two of their children died, Stephen Syms in 1998 and Adrienne Syms in 1999.
In addition to Marcy Syms, survivors include his wife of 25 years, Lynn Tamarkin Syms of New York; three other children from his first marriage; two stepchildren; three sisters; and 10 grandchildren.
The off-price clothing that Mr. Syms sold on unadorned racks in large, no-frills stores, mesmerized customers who recognized prestige designer labels in the lining. Although not all of the attire was actually the same Pierre Cardin jacket or Brioni suit you'd find it Italy, it was good enough to satisfy bargain-hunting customers who needed a decent suit for a job interview, and it made Mr. Syms a multimillionaire.
Syms Corp., a New Jersey-based public company, operates 30 stores in 13 states. In June, it acquired Filene's Basement, adding 22 stores to its empire. Mr. Syms, who was succeeded by his daughter Marcy as the chief executive in 1998, remained the firm's chairman.
His success was due in no small part to the television commercials in which he appeared, starting in 1974, and that are still on the air.
"My father had an uncanny talent that made him sensitive to the needs of his customers and the changes in the marketplace," Marcy Syms said in a statement. "He knew the time was right for off-price retailing. Certainly he was ahead of his time."
Seymour Merinsky was born May 12, 1926, in Brooklyn, N.Y. His family changed its surname to Merns when Mr. Syms's father and older brother opened a clothing store by that name. Mr. Syms originally didn't plan to enter the rag trade. He served in the Army, then graduated from New York University with a broadcasting degree. In 1948, he became a sportscaster in Cumberland, Md.
After two years, he returned to New York to join the family business.
But family businesses are nothing if not dispute factories, and by 1959, Mr. Syms left to open a rival store around the corner. He named it "Sy Merns" but lost a court battle with his family and was forced to rename the store. He chose Syms and later changed his own name to match it.
"I remember when he first began Syms," said Marcy Syms in a 2006 New York Times profile. "He would do deliveries on Sunday so he would be one day ahead when the stores opened on Monday. He had about three stores at the time, and here he was loading up a Dodge station wagon, driving around town and unpacking boxes of inventory."
Store by store, Mr. Syms built an empire based on discounted men's clothing, which later expanded into women's and children's clothes. The company went public in 1983.
A 1985 Forbes magazine article said the company's profit margin was among the highest in all of retailing, about 13 percent before income taxes. Syms bought surplus goods from manufacturers and also contracted with them to turn their uncut fabrics into special, lower-quality versions of their more expensive clothing. Syms bought in bulk, in cash and agreed not to advertise the brands, snipping off the labels at the checkout counter, the Forbes article said.
Although Mr. Syms was among the first to exploit this inefficiency in the clothing business, he was not alone for long. Men's Wearhouse, Marshall's, Mervyn's, T.J. Maxx and many others adopted similar strategies.
Mr. Syms donated millions to Yeshiva University in New York, which named its business school for him. He was a major philanthropist with a wide variety of causes. In 1998, he offered to buy the New York Yankees to keep the team from moving to New Jersey.
His first marriage, to Ruth Glickman Merns, ended in divorce. Two of their children died, Stephen Syms in 1998 and Adrienne Syms in 1999.
In addition to Marcy Syms, survivors include his wife of 25 years, Lynn Tamarkin Syms of New York; three other children from his first marriage; two stepchildren; three sisters; and 10 grandchildren.
Tuesday, November 17, 2009
New Jersey Lawmakers expected to attend annual Atlantic City conference
ATLANTIC CITY -- New Jersey lawmakers and local officials poured into Atlantic City today for the annual New Jersey League of Municipalities conference – a Garden State tradition that features seminars by day and partying by night.
More than 20,000 elected and government-related officials are expected to attend the four day-confab, highlighted by a joint appearance Thursday by Republican Gov.-elect Chris Christie and lame duck Democratic Gov. Jon Corzine.
AP Photo/Mary GodleskiNew Jersey Gov. Jon S. Corzine speaks as Herbert Stiles, mayor of Elmer, N.J., and president of the New Jersey League of Municipalities, looks on during the league's annual conference in Atlantic City in this 2006 photo.
More than a dozen parties were scheduled at hotel and casino restaurants and ballrooms, hosted by state lawmakers, local officials and the contractors they do business with.
The event is a one-stop-shop for networking with government officials from mayors to the governor’s administration – and in past years, it’s where elected officials have gotten themselves in trouble.
League Executive Director William Dressel said his job is to put together an educational offering to "provide my elected officials with the tools they need" to run local government.
"I’m only responsible for what happens between 9 o’clock and 5 o’clock," Dressel said. "For every hour in that normal workday, it’s chock full of education workshops, clinics."
In his autobiography, former Gov. James E. McGreevey described the convention as "really just a huge frat party." It was where former Hudson County Executive Robert C. Janiszewski took a $5,000 bribe from an FBI informant, and later turned informant.
He was brought down by the office of then-U.S. Attorney Christie, who later led a league seminar on ethics with Attorney General Anne Milgram and warned local officials against participating in similar acts. He told them if "someone approaches you with an envelope of cash looking for some kind of favor from you" in Atlantic City, "it’s probably us."
Dressel said he expects less partying and antics this year, in part because the dismal economy has cut into hotel bookings.
"Quite frankly, (municipal officials are) looking for a lot of answers and insight on how to govern in these tight economic times," he said.
The seminars are on topics such as the economy, budgets, foreclosures, "going green," and the impact of federal stimulus dollars. "There’s a lot of good info," said Kevin Duffy, mayor of Hardwick Township, Warren County.
Lester Lewis-Powder, a Maplewood committee member, acknowledged some may think the convention is a time for local officials to live it up in Atlantic City on the taxpayers’ dime.
"I paid my entire bill myself to avoid that," he said of his room at the Borgata hotel.
More than 20,000 elected and government-related officials are expected to attend the four day-confab, highlighted by a joint appearance Thursday by Republican Gov.-elect Chris Christie and lame duck Democratic Gov. Jon Corzine.
AP Photo/Mary GodleskiNew Jersey Gov. Jon S. Corzine speaks as Herbert Stiles, mayor of Elmer, N.J., and president of the New Jersey League of Municipalities, looks on during the league's annual conference in Atlantic City in this 2006 photo.
More than a dozen parties were scheduled at hotel and casino restaurants and ballrooms, hosted by state lawmakers, local officials and the contractors they do business with.
The event is a one-stop-shop for networking with government officials from mayors to the governor’s administration – and in past years, it’s where elected officials have gotten themselves in trouble.
League Executive Director William Dressel said his job is to put together an educational offering to "provide my elected officials with the tools they need" to run local government.
"I’m only responsible for what happens between 9 o’clock and 5 o’clock," Dressel said. "For every hour in that normal workday, it’s chock full of education workshops, clinics."
In his autobiography, former Gov. James E. McGreevey described the convention as "really just a huge frat party." It was where former Hudson County Executive Robert C. Janiszewski took a $5,000 bribe from an FBI informant, and later turned informant.
He was brought down by the office of then-U.S. Attorney Christie, who later led a league seminar on ethics with Attorney General Anne Milgram and warned local officials against participating in similar acts. He told them if "someone approaches you with an envelope of cash looking for some kind of favor from you" in Atlantic City, "it’s probably us."
Dressel said he expects less partying and antics this year, in part because the dismal economy has cut into hotel bookings.
"Quite frankly, (municipal officials are) looking for a lot of answers and insight on how to govern in these tight economic times," he said.
The seminars are on topics such as the economy, budgets, foreclosures, "going green," and the impact of federal stimulus dollars. "There’s a lot of good info," said Kevin Duffy, mayor of Hardwick Township, Warren County.
Lester Lewis-Powder, a Maplewood committee member, acknowledged some may think the convention is a time for local officials to live it up in Atlantic City on the taxpayers’ dime.
"I paid my entire bill myself to avoid that," he said of his room at the Borgata hotel.
SBA reports pickup in lending activity
TD Bank approved the most Small Business Administration loans in New Jersey in the fiscal year ended Sept. 30, when the Cherry Hill-based bank made 168 SBA loans totaling $60.7 million to New Jersey small-business owners.
“Even during these tough economic times, TD Bank recognizes that small-business growth is a vital component of our economy,” SBA District Director Jim Kocsi said Tuesday, as he recognized leading SBA lenders during an annual award ceremony in Newark.
The recession and the credit crunch reduced SBA lending across New Jersey during the fiscal year — but SBA lending began to recover in the second half of the year, as $730 million in federal stimulus money was deployed to eliminate the SBA loan fees charged to borrowers, and to raise the federal guarantee to 90 percent from 75 percent.
An SBA loan is made by a bank or other lender, with repayment guaranteed by the federal government. In the last six months of the year, the number of New Jersey SBA loans rose 30 percent, and the dollar amount rose 14 percent. For the full fiscal year, SBA lending in New Jersey declined to 1,116 loans for $338.2 million, compared to fiscal 2008, when New Jersey businesses received 2,394 loans for $492.1 million.
Kocsi said those stimulus provisions could be phased out unless Congress decides to extend them, but said he doesn’t think phasing out the 90 percent guarantee and the fee suspension will severely impact SBA lending.
“With the economy recovering, we are seeing positive signals from our lending partners that things are starting to ease up, and they are getting more applications that they can approve,” he said.
BNB Bank, of Fort Lee, was the second-ranked New Jersey SBA lender, with 109 loans totaling $51.6 million. Vice President Dan Cardone is hoping Congress will extend the stimulus initiatives that have boosted SBA lending.
“The economy is not doing well enough, we still have a long way to go — but if these initiatives were extended, it would help a great deal,” he said.
Ira Lutsky is president of the New Jersey Business Finance Corp., in Fort Lee, which makes larger, 504 SBA loans that borrowers typically use to acquire real estate or equipment. He is seeing the economy turn upward, but also thinks the stimulus incentives need to stay in place to keep the recovery moving.
“People have the confidence now, and are starting to take advantage of the real estate market to acquire a larger facility,” he said. “The signs are pointing the right way, and the stimulus had a lot to do with it.”
“Even during these tough economic times, TD Bank recognizes that small-business growth is a vital component of our economy,” SBA District Director Jim Kocsi said Tuesday, as he recognized leading SBA lenders during an annual award ceremony in Newark.
The recession and the credit crunch reduced SBA lending across New Jersey during the fiscal year — but SBA lending began to recover in the second half of the year, as $730 million in federal stimulus money was deployed to eliminate the SBA loan fees charged to borrowers, and to raise the federal guarantee to 90 percent from 75 percent.
An SBA loan is made by a bank or other lender, with repayment guaranteed by the federal government. In the last six months of the year, the number of New Jersey SBA loans rose 30 percent, and the dollar amount rose 14 percent. For the full fiscal year, SBA lending in New Jersey declined to 1,116 loans for $338.2 million, compared to fiscal 2008, when New Jersey businesses received 2,394 loans for $492.1 million.
Kocsi said those stimulus provisions could be phased out unless Congress decides to extend them, but said he doesn’t think phasing out the 90 percent guarantee and the fee suspension will severely impact SBA lending.
“With the economy recovering, we are seeing positive signals from our lending partners that things are starting to ease up, and they are getting more applications that they can approve,” he said.
BNB Bank, of Fort Lee, was the second-ranked New Jersey SBA lender, with 109 loans totaling $51.6 million. Vice President Dan Cardone is hoping Congress will extend the stimulus initiatives that have boosted SBA lending.
“The economy is not doing well enough, we still have a long way to go — but if these initiatives were extended, it would help a great deal,” he said.
Ira Lutsky is president of the New Jersey Business Finance Corp., in Fort Lee, which makes larger, 504 SBA loans that borrowers typically use to acquire real estate or equipment. He is seeing the economy turn upward, but also thinks the stimulus incentives need to stay in place to keep the recovery moving.
“People have the confidence now, and are starting to take advantage of the real estate market to acquire a larger facility,” he said. “The signs are pointing the right way, and the stimulus had a lot to do with it.”
Books-A-Million Opens First Location in New Jersey
BIRMINGHAM, Ala.--(BUSINESS WIRE)-- Books-A-Million, Inc. (NASDAQ:BAMM) announced today that it opened its first northeastern location in Cherry Hill, New Jersey, at Cherry Hill Mall. The new Books-A-Million store at Cherry Hill Mall will serve nearly 2 million people in the surrounding trade areas of Burlington, Camden, Gloucester and Philadelphia counties. The Cherry Hill Mall store will also employ more than 20 people and will feature books, magazines, cards, gifts and collectibles. Cherry Hill Mall is known as South Jersey's fashion and dining destination.
Cherry Hill residents who are new Books-A-Million patrons are encouraged to sign up for the Millionaire's Club, where members save 40 percent off bestsellers, 20 percent off hundreds of items throughout the store and 10 percent off everything, every day. Millionaire's Club members are also invited to special sale events and receive promotions and coupons through weekly emails. The new location also offers discount programs for teachers and community organizations as well as community fundraising opportunities.
Books-A-Million is one of the nation's leading book retailers and sells on the Internet at www.booksamillion.com. The Company presently operates more than 200 stores in 22 states and the District of Columbia. The Company operates two distinct store formats, including large superstores operating under the names Books-A-Million and Books & Co., and traditional bookstores operating under the name Bookland. The Company's wholesale operations include American Wholesale Book Company and Book$mart, both based in Florence, Alabama. For more information, visit the company's website at http://www.booksamillioninc.com/.
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Cherry Hill residents who are new Books-A-Million patrons are encouraged to sign up for the Millionaire's Club, where members save 40 percent off bestsellers, 20 percent off hundreds of items throughout the store and 10 percent off everything, every day. Millionaire's Club members are also invited to special sale events and receive promotions and coupons through weekly emails. The new location also offers discount programs for teachers and community organizations as well as community fundraising opportunities.
Books-A-Million is one of the nation's leading book retailers and sells on the Internet at www.booksamillion.com. The Company presently operates more than 200 stores in 22 states and the District of Columbia. The Company operates two distinct store formats, including large superstores operating under the names Books-A-Million and Books & Co., and traditional bookstores operating under the name Bookland. The Company's wholesale operations include American Wholesale Book Company and Book$mart, both based in Florence, Alabama. For more information, visit the company's website at http://www.booksamillioninc.com/.
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NPD: Microwave Use Up, Cooking Down
Americans are doing more eating at home, but that doesn't necessarily mean more cooking, according to The NPD Group's" 24th Annual Report on Eating Patterns in America."
"There was a lot of speculation last year as to how our eating behaviors changed as a result of the economic crisis. The truth is that consumer behavior changes slowly," said Harry Balzer, chief industry analyst at NPD. "I've observed America's eating patterns in good and bad economies, and the constant is that there is no recession in eating -- and Americans don't want to cook what they eat."
Microwaving has been flat for two decades, but it increased last year as Americans found a way to eat at home and not cook, Balzer added. "We're using our microwaves to warm and heat more, but not prepare more dishes from scratch."
According to NPD's food industry market research, Americans used their microwave ovens more last year, but actually used their stovetops less. About 20% of all meals prepared in U.S. homes from 1990 to 2007 involved the use of a microwave, until last year, when usage rose 10%.
Stovetops remain the most popular cooking appliance, but the portion of main meals prepared on a stovetop dropped from 52% in 1985 to 33% in 2009
"There was a lot of speculation last year as to how our eating behaviors changed as a result of the economic crisis. The truth is that consumer behavior changes slowly," said Harry Balzer, chief industry analyst at NPD. "I've observed America's eating patterns in good and bad economies, and the constant is that there is no recession in eating -- and Americans don't want to cook what they eat."
Microwaving has been flat for two decades, but it increased last year as Americans found a way to eat at home and not cook, Balzer added. "We're using our microwaves to warm and heat more, but not prepare more dishes from scratch."
According to NPD's food industry market research, Americans used their microwave ovens more last year, but actually used their stovetops less. About 20% of all meals prepared in U.S. homes from 1990 to 2007 involved the use of a microwave, until last year, when usage rose 10%.
Stovetops remain the most popular cooking appliance, but the portion of main meals prepared on a stovetop dropped from 52% in 1985 to 33% in 2009
Monday, November 16, 2009
Loopholes in N.J. campaign finance laws benefit biggest government contractors
TRENTON -- New Jersey taxpayers don’t pay directly for the costly campaigns state politicians run, but public money regularly goes to government contractors who in turn make sure the candidates are well-funded.
Thanks to loopholes in campaign finance laws at the state and county levels, the biggest government contractors in New Jersey routinely get lucrative, taxpayer-funded work while simultaneously making huge contributions to the candidates who vote to approve their contracts.
New Jersey’s 566 municipalities, 616 school boards and 21 county governments all need lawyers, engineers and other professionals to handle government business and the politicians who control those contracts often award the work to firms that regularly contribute to their campaigns through a process known as "pay-to-play."
The pay-to-play system helped Democratic candidates running for freeholder seats this year in Bergen County, where the Democrats control the freeholder board, generate more than $1 million for the 2009 election - much of it from businesses that do work for the freeholders.
The Democratic candidates were able to raise money directly from county government contractors because the county contracting policy doesn’t prohibit it. The state’s "Local Unit Pay-to-Play Law" appears to address pay-to-play, but it includes a loophole that allows the practice to thrive.
The Bergen County policy, titled "Fair and Open," forces the Board of Freeholders to solicit public bids on most government projects, but price is only one factor and the freeholders are not compelled the board to select the lowest bidder.
That means county work can still go to regular contributors to the freeholders’ campaigns even if they don’t offer the best price.
WHEELING
The New Jersey political landscape is also full of candidates’ funds, political committees and other organizations that can raise money each time there is an election.
And savvy political operatives and organizations have figured out ways to use these numerous funds to get around donation restrictions that were put in place in an attempt to curb the influence special interests such as government contractors can have in an election.
The process of using political committees to get around the tight contribution limits that must be followed when making donations directly to a candidate is known in political circles as "wheeling."
In the Bergen County freeholder contest this year, several new political committees were used to "wheel" additional money into the race from county government contractors who had already donated directly to the two candidates up to the limit.
Since there are no rules in place prevent political committees such as those used in the 2009 contest from the accepting donations and then making subsequent donations to the freeholder candidates, the contractors were able to wheel funds totaling up to six times more than the contribution limits - and much of it at the last minute in an effort to save a campaign that was ultimately swept by the Republican candidates.
LEGISLATIVE ACTION
Some reforms that would address the pay-to-play and wheeling loopholes that exist in state campaign-finance laws remain stalled in the state Legislature. But lawmakers in leadership positions also control special legislative leadership funds that are among the most routinely used for wheeling money collected fdrom companies that receive lucrative government contracts.
And other legislators who hold key positions in the Assembly and Senate work for government contractors that are among the state’s most active contributors to political campaigns in New Jersey.
Thanks to loopholes in campaign finance laws at the state and county levels, the biggest government contractors in New Jersey routinely get lucrative, taxpayer-funded work while simultaneously making huge contributions to the candidates who vote to approve their contracts.
New Jersey’s 566 municipalities, 616 school boards and 21 county governments all need lawyers, engineers and other professionals to handle government business and the politicians who control those contracts often award the work to firms that regularly contribute to their campaigns through a process known as "pay-to-play."
The pay-to-play system helped Democratic candidates running for freeholder seats this year in Bergen County, where the Democrats control the freeholder board, generate more than $1 million for the 2009 election - much of it from businesses that do work for the freeholders.
The Democratic candidates were able to raise money directly from county government contractors because the county contracting policy doesn’t prohibit it. The state’s "Local Unit Pay-to-Play Law" appears to address pay-to-play, but it includes a loophole that allows the practice to thrive.
The Bergen County policy, titled "Fair and Open," forces the Board of Freeholders to solicit public bids on most government projects, but price is only one factor and the freeholders are not compelled the board to select the lowest bidder.
That means county work can still go to regular contributors to the freeholders’ campaigns even if they don’t offer the best price.
WHEELING
The New Jersey political landscape is also full of candidates’ funds, political committees and other organizations that can raise money each time there is an election.
And savvy political operatives and organizations have figured out ways to use these numerous funds to get around donation restrictions that were put in place in an attempt to curb the influence special interests such as government contractors can have in an election.
The process of using political committees to get around the tight contribution limits that must be followed when making donations directly to a candidate is known in political circles as "wheeling."
In the Bergen County freeholder contest this year, several new political committees were used to "wheel" additional money into the race from county government contractors who had already donated directly to the two candidates up to the limit.
Since there are no rules in place prevent political committees such as those used in the 2009 contest from the accepting donations and then making subsequent donations to the freeholder candidates, the contractors were able to wheel funds totaling up to six times more than the contribution limits - and much of it at the last minute in an effort to save a campaign that was ultimately swept by the Republican candidates.
LEGISLATIVE ACTION
Some reforms that would address the pay-to-play and wheeling loopholes that exist in state campaign-finance laws remain stalled in the state Legislature. But lawmakers in leadership positions also control special legislative leadership funds that are among the most routinely used for wheeling money collected fdrom companies that receive lucrative government contracts.
And other legislators who hold key positions in the Assembly and Senate work for government contractors that are among the state’s most active contributors to political campaigns in New Jersey.
Wednesday, November 11, 2009
Fiscal emergency is option for NJ's gov-elect
TRENTON, N.J. -- Declaring a fiscal emergency in New Jersey is one option open to Gov.-elect Chris Christie as he searches for a way out of the state's deep financial deficit, the head of his transition team said.
Jeff Chiesa, executive director of Christie's transition team, said an emergency declaration like the one Gov. Jon Corzine used after budget talks with the Legislature collapsed in 2006 is one of many ideas raised during a recent meeting.
"It would be premature to suggest it is anything more at this point in time," Chiesa said Tuesday in an e-mail.
Christie, who defeated Gov. Jon Corzine last week to become New Jersey's first Republican governor in a dozen years, faces a projected $8 billion budget deficit when he takes office in January. He must deliver a budget proposal for fiscal 2011 in March.
A report by the Statehouse bureau of The Star-Ledger and The Record, attributed to unnamed advisers and published Tuesday, said Christie is "examining the possibility of declaring a financial emergency."
An emergency declaration would give the governor broad powers similar to those invoked when a natural disaster strikes
The declaration could help Christie void the no-layoff pledge Gov. Jon Corzine negotiated with labor unions through December 2010.
Christie repeatedly criticized that deal throughout the campaign. At a news conference in Hamilton on Monday, he said he would not be bound by Corzine's deal.
"I want to leave my options open to reach a fair and appropriate resolution in light of the economic circumstances that confront the state today," Christie said. "It may turn out that there are no layoffs. If we can reach a fair agreement with all the parties that recognize the pressures the taxpayers are under and the state government is under, I would hope to have no layoffs."
Bob Master, political director of the state's largest union, the Communications Workers of America, said he hopes the state and the unions can resolve their issues through collective bargaining.
"We believe its a mistake to suspend the rules and declare an emergency when there are alternative ways of addressing these issues," Master said. "Our members have made very significant sacrifices in terms of wage freezes, unpaid furlough days, and increased contributions for health care and pensions in order to help the state through its fiscal problems."
Corzine invoked the emergency provision in 2006, ordering the shutdown of state government after the Legislature failed to pass a budget by July 1. Government lawyers reasoned that a legal emergency existed because a new spending plan was not in place when the prior budget expired.
The declaration by executive order gave Corzine the power to furlough state workers and cancel nonessential services. The emergency lasted a week.
Corzine considered invoking the provision again this year after state revenues plunged, but did not do so.
He renegotiated the contract with the largest state worker union, deferring a scheduled pay raise until 2011 and ordering furloughs in exchange for a no-layoff pledge through December 2010.
The New Jersey Constitution requires a balanced budget.
Christie has limited options for balancing the budget that starts July 1 after ruling out raising taxes or cutting funding for K-12 education.
By ANGELA DELLI SANTI
Jeff Chiesa, executive director of Christie's transition team, said an emergency declaration like the one Gov. Jon Corzine used after budget talks with the Legislature collapsed in 2006 is one of many ideas raised during a recent meeting.
"It would be premature to suggest it is anything more at this point in time," Chiesa said Tuesday in an e-mail.
Christie, who defeated Gov. Jon Corzine last week to become New Jersey's first Republican governor in a dozen years, faces a projected $8 billion budget deficit when he takes office in January. He must deliver a budget proposal for fiscal 2011 in March.
A report by the Statehouse bureau of The Star-Ledger and The Record, attributed to unnamed advisers and published Tuesday, said Christie is "examining the possibility of declaring a financial emergency."
An emergency declaration would give the governor broad powers similar to those invoked when a natural disaster strikes
The declaration could help Christie void the no-layoff pledge Gov. Jon Corzine negotiated with labor unions through December 2010.
Christie repeatedly criticized that deal throughout the campaign. At a news conference in Hamilton on Monday, he said he would not be bound by Corzine's deal.
"I want to leave my options open to reach a fair and appropriate resolution in light of the economic circumstances that confront the state today," Christie said. "It may turn out that there are no layoffs. If we can reach a fair agreement with all the parties that recognize the pressures the taxpayers are under and the state government is under, I would hope to have no layoffs."
Bob Master, political director of the state's largest union, the Communications Workers of America, said he hopes the state and the unions can resolve their issues through collective bargaining.
"We believe its a mistake to suspend the rules and declare an emergency when there are alternative ways of addressing these issues," Master said. "Our members have made very significant sacrifices in terms of wage freezes, unpaid furlough days, and increased contributions for health care and pensions in order to help the state through its fiscal problems."
Corzine invoked the emergency provision in 2006, ordering the shutdown of state government after the Legislature failed to pass a budget by July 1. Government lawyers reasoned that a legal emergency existed because a new spending plan was not in place when the prior budget expired.
The declaration by executive order gave Corzine the power to furlough state workers and cancel nonessential services. The emergency lasted a week.
Corzine considered invoking the provision again this year after state revenues plunged, but did not do so.
He renegotiated the contract with the largest state worker union, deferring a scheduled pay raise until 2011 and ordering furloughs in exchange for a no-layoff pledge through December 2010.
The New Jersey Constitution requires a balanced budget.
Christie has limited options for balancing the budget that starts July 1 after ruling out raising taxes or cutting funding for K-12 education.
By ANGELA DELLI SANTI
Tuesday, November 10, 2009
N.J. businesses await changes under Christie
New Jersey businesses are likely to see changes ranging from tax policy to how the state approaches economic development as a result of Chris Christie’s victory in last week’s gubernatorial election.
State business owners said they’re interested in how Christie will approach business issues, particularly economic development and taxation. Christie proposed lowering income taxes and dramatically reducing state spending during his campaign.
Questions affecting business and the economy were at the center of the election, with Christie saying he would halt new regulations for 90 days at the beginning of his term. He has said it is important to improve the business tax climate — the worst in the country, according to the nonprofit Tax Foundation.
It is not clear how much of Christie’s economic development approach will be announced before he is sworn into office. He has said that Kim Guadagno, who ran on his ticket as lieutenant governor, will lead a task force designed to reduce red tape, a signal that the new position she holds could become important to state businesses.
Robert Briant Jr., chief executive of the Utility and Transportation Contractors Association, said a top business priority must be to resolve the near-exhausted Transportation Trust Fund.
“We have no means to invest in our transportation systems,” he said. “It needs to be addressed immediately. We have to come up with a source of cash revenue — no more borrowing. There is a borrowing component, but it cannot overshadow the rest of the program.”
New Jersey Chamber of Commerce President Joan Verplanck said Christie should cut the corporate business tax surcharge and income taxes on high-wage earners. She is hopeful he understands the importance of rolling back taxes and making the state more competitive.
Verplanck said the chamber had a good relationship with Gov. Jon S. Corzine, but said Christie’s plan to reduce regulations is “a great start.”
“I would hope that either the governor or the lieutenant governor would have, as one of their primary duties, chief marketer for the state,” Verplanck said.
The election also saw the narrow passage of the $400 million open-space bond, and one seat in the Legislature changed parties — Republican Domenick DiCicco won the Assembly District 4 seat formerly held by Democrat Sandra Love, who did not seek re-election.
Verplanck said she was surprised with the passage of the open-space question, considering the amount of debt the state has.
Michael McGuinness, CEO of the New Jersey chapter of commercial real estate group NAIOP, said it will be cuts, not new revenue streams, that Christie will have to count on to solve the looming budget crisis.
“He needs to spend a significant amount of time examining how other states and other jurisdictions have addressed similar problems,” McGuinness said. “There are a lot of best management practices out there that New Jersey should consider.”
New Jersey Business & Industry Association President Philip Kirschner said he is looking for Christie to set a tone “that New Jersey is open for business.”
Chamber of Commerce of Southern New Jersey President and CEO Debra P. DiLorenzo said the state has had too great a reliance on tax increases and that the focus now must be on cutting both spending and taxes. She said the income tax on high earners is a good place to start.
“Most of the people that are earning that $500,000 level that’s being taxed extra now, those are small businesses,” DiLorenzo said, noting S corporations pay their taxes as personal income.
State business owners said they’re interested in how Christie will approach business issues, particularly economic development and taxation. Christie proposed lowering income taxes and dramatically reducing state spending during his campaign.
Questions affecting business and the economy were at the center of the election, with Christie saying he would halt new regulations for 90 days at the beginning of his term. He has said it is important to improve the business tax climate — the worst in the country, according to the nonprofit Tax Foundation.
It is not clear how much of Christie’s economic development approach will be announced before he is sworn into office. He has said that Kim Guadagno, who ran on his ticket as lieutenant governor, will lead a task force designed to reduce red tape, a signal that the new position she holds could become important to state businesses.
Robert Briant Jr., chief executive of the Utility and Transportation Contractors Association, said a top business priority must be to resolve the near-exhausted Transportation Trust Fund.
“We have no means to invest in our transportation systems,” he said. “It needs to be addressed immediately. We have to come up with a source of cash revenue — no more borrowing. There is a borrowing component, but it cannot overshadow the rest of the program.”
New Jersey Chamber of Commerce President Joan Verplanck said Christie should cut the corporate business tax surcharge and income taxes on high-wage earners. She is hopeful he understands the importance of rolling back taxes and making the state more competitive.
Verplanck said the chamber had a good relationship with Gov. Jon S. Corzine, but said Christie’s plan to reduce regulations is “a great start.”
“I would hope that either the governor or the lieutenant governor would have, as one of their primary duties, chief marketer for the state,” Verplanck said.
The election also saw the narrow passage of the $400 million open-space bond, and one seat in the Legislature changed parties — Republican Domenick DiCicco won the Assembly District 4 seat formerly held by Democrat Sandra Love, who did not seek re-election.
Verplanck said she was surprised with the passage of the open-space question, considering the amount of debt the state has.
Michael McGuinness, CEO of the New Jersey chapter of commercial real estate group NAIOP, said it will be cuts, not new revenue streams, that Christie will have to count on to solve the looming budget crisis.
“He needs to spend a significant amount of time examining how other states and other jurisdictions have addressed similar problems,” McGuinness said. “There are a lot of best management practices out there that New Jersey should consider.”
New Jersey Business & Industry Association President Philip Kirschner said he is looking for Christie to set a tone “that New Jersey is open for business.”
Chamber of Commerce of Southern New Jersey President and CEO Debra P. DiLorenzo said the state has had too great a reliance on tax increases and that the focus now must be on cutting both spending and taxes. She said the income tax on high earners is a good place to start.
“Most of the people that are earning that $500,000 level that’s being taxed extra now, those are small businesses,” DiLorenzo said, noting S corporations pay their taxes as personal income.
Monday, November 9, 2009
NJ candy factory flips switch on new solar array
HACKETTSTOWN, N.J. — Those green M&Ms really are getting greener.
A New Jersey candy factory that produces M&M's flipped the switch Monday on a new solar array that provides clean energy. Newark, N.J.-based Public Service Enterprise Group Inc. says the factory will use more solar power than any other in New Jersey.
The 18-acre facility in Hackettstown is one of the state's largest and can generate 2 megawatts of solar energy. That handles about one-fifth of the plant's needs and is enough power for roughly 1,800 homes.
McLean, Va.-based Mars Inc. provided the land next to its facility.
Former New Jersey Gov. Christie Whitman, who ran the U.S. Environmental Protection Agency under former President George W. Bush, called the project a blueprint for environmentally friendly business investment.
A New Jersey candy factory that produces M&M's flipped the switch Monday on a new solar array that provides clean energy. Newark, N.J.-based Public Service Enterprise Group Inc. says the factory will use more solar power than any other in New Jersey.
The 18-acre facility in Hackettstown is one of the state's largest and can generate 2 megawatts of solar energy. That handles about one-fifth of the plant's needs and is enough power for roughly 1,800 homes.
McLean, Va.-based Mars Inc. provided the land next to its facility.
Former New Jersey Gov. Christie Whitman, who ran the U.S. Environmental Protection Agency under former President George W. Bush, called the project a blueprint for environmentally friendly business investment.
Saturday, November 7, 2009
Friday, November 6, 2009
Thursday, November 5, 2009
New Economic Study Reveals $6.3 Billion Contribution to New York/New Jersey Region by Continental Airlines
Continental Airlines (NYSE: CAL) today released an economic impact study by NERA Economic Consulting (NERA) describing the airline’s impact on the New York/New Jersey region coinciding with Continental’s 30th anniversary of service to the area and its recent entry to Star Alliance. The study showed that in 2008, Continental’s operations contributed more than $6.3 billion in gross regional product to the region and an estimated 110,000 jobs amounting to more than $5.9 billion in personal income. As the leading carrier in New York, Continental offers more seats and serves more nonstop destinations from the New York area than any other carrier.
The report estimated that of the 110,000 jobs currently being contributed by Continental to the region, approximately 30 percent are in New York City, 12 percent in the rest of New York state, 31 percent in the Newark region and 27 percent in the rest of New Jersey.
"As significant as these results are, this study does not measure the full economic impact of Continental’s presence," said project director and senior vice president of NERA, Dr. David Harrison, Jr. "While the study measures aviation employment and passenger expenditures, including multiplier effects, it does not include other important aspects of Continental operations on the community. It is clear from the data that Continental’s presence makes the New York/New Jersey region a more attractive region for businesses to relocate or expand their operations due to the reduction in the cost of doing business associated with access to air travel."
Even excluding those substantial effects, the NERA analysis estimated that by 2030, Continental’s contribution would account for $11 billion in personal income and $12 billion in gross regional product, nearly double Continental’s contribution in 2008.
"On behalf of my more than 41,000 co-workers, we are pleased that Continental is making such a meaningful contribution in one of the most important regions for our company and our country," said Larry Kellner, Continental chairman and chief executive officer. "As the first member of the Star Alliance with a major hub in the New York City area, Continental will be connecting the region with 24 other carriers in a global alliance that offers more than 18,900 flights a day to 983 cities in 169 countries."
Continental commissioned NERA Economic Consulting (NERA) to conduct the study. NERA, one of the foremost global economic research organizations with extensive experience in transportation and regional economics, used a state-of-the-art computer model tailored to the local economy, as well as extensive data from Continental and outside sources, to develop an assessment of the airline’s current and future economic impacts on the New York/New Jersey region. The assessment includes the direct contributions made by Continental employees and passengers as well as the multiplier effects of increased spending on the regional economy. The study was performed by NERA, which has more than 600 staff members in eleven offices in North America as well as fourteen overseas offices. The result is one of the most complete and detailed studies ever completed concerning the contribution of an airline’s operations to a regional economy.
To view a full copy the NERA report, click here.
Background
As of March 2009, Continental and its regional partners served 146 nonstop destinations with 412 flights per day from Newark Liberty International Airport, making Continental Airlines the largest airline at the airport by both metrics. Together with its regional partners, Continental transported 70 percent of all revenue passengers at Newark in 2008. Continental also handled more than 120,000 tons of revenue freight at Newark in 2008, making it the largest freight handler among the airport’s passenger airlines. Continental has significant, though much smaller, operations at LaGuardia Airport (LaGuardia), where it ranked among the fifteen largest carriers (by passenger count) in 2008. From LaGuardia, Continental and its partners operated 16 flights per day as of March 2009.
Continental’s New York hub at Newark Liberty International Airport serves as a gateway to Continental’s international route system to Europe, Asia and Latin America. Continental’s hub at Newark Liberty currently provides daily or near-daily nonstop service to 26 European destinations, seven Canadian cities, eight Central American/Caribbean destinations, four cities in Mexico, plus Bogota, Sao Paulo, Beijing, Delhi, Hong Kong, Mumbai, Shanghai and Tokyo. Continental’s Newark Liberty service represents the only scheduled nonstop service from the New York City area to several important domestic and international destinations. Continental supplements its extensive Liberty operations with frequent nonstop service from LaGuardia to the airline’s hubs in Houston and Cleveland.
Continental Airlines is the world’s fifth largest airline. Continental, together with Continental Express and Continental Connection, has more than 2,400 daily departures throughout the Americas, Europe and Asia, serving 130 domestic and 132 international destinations. Continental is a member of Star Alliance, which provides access to more than 900 additional points in 169 countries via 24 other member airlines. With more than 41,000 employees, Continental has hubs serving New York, Houston, Cleveland and Guam, and together with its regional partners, carries approximately 63 million passengers per year.
Celebrating its 75th anniversary this year, Continental consistently earns awards and critical acclaim for both its operation and its corporate culture. For the sixth consecutive year, FORTUNE magazine named Continental the No. 1 World’s Most Admired Airline on its 2009 list of World’s Most Admired Companies. For more company information, go to continental.com.
SOURCE Continental Airlines
The report estimated that of the 110,000 jobs currently being contributed by Continental to the region, approximately 30 percent are in New York City, 12 percent in the rest of New York state, 31 percent in the Newark region and 27 percent in the rest of New Jersey.
"As significant as these results are, this study does not measure the full economic impact of Continental’s presence," said project director and senior vice president of NERA, Dr. David Harrison, Jr. "While the study measures aviation employment and passenger expenditures, including multiplier effects, it does not include other important aspects of Continental operations on the community. It is clear from the data that Continental’s presence makes the New York/New Jersey region a more attractive region for businesses to relocate or expand their operations due to the reduction in the cost of doing business associated with access to air travel."
Even excluding those substantial effects, the NERA analysis estimated that by 2030, Continental’s contribution would account for $11 billion in personal income and $12 billion in gross regional product, nearly double Continental’s contribution in 2008.
"On behalf of my more than 41,000 co-workers, we are pleased that Continental is making such a meaningful contribution in one of the most important regions for our company and our country," said Larry Kellner, Continental chairman and chief executive officer. "As the first member of the Star Alliance with a major hub in the New York City area, Continental will be connecting the region with 24 other carriers in a global alliance that offers more than 18,900 flights a day to 983 cities in 169 countries."
Continental commissioned NERA Economic Consulting (NERA) to conduct the study. NERA, one of the foremost global economic research organizations with extensive experience in transportation and regional economics, used a state-of-the-art computer model tailored to the local economy, as well as extensive data from Continental and outside sources, to develop an assessment of the airline’s current and future economic impacts on the New York/New Jersey region. The assessment includes the direct contributions made by Continental employees and passengers as well as the multiplier effects of increased spending on the regional economy. The study was performed by NERA, which has more than 600 staff members in eleven offices in North America as well as fourteen overseas offices. The result is one of the most complete and detailed studies ever completed concerning the contribution of an airline’s operations to a regional economy.
To view a full copy the NERA report, click here.
Background
As of March 2009, Continental and its regional partners served 146 nonstop destinations with 412 flights per day from Newark Liberty International Airport, making Continental Airlines the largest airline at the airport by both metrics. Together with its regional partners, Continental transported 70 percent of all revenue passengers at Newark in 2008. Continental also handled more than 120,000 tons of revenue freight at Newark in 2008, making it the largest freight handler among the airport’s passenger airlines. Continental has significant, though much smaller, operations at LaGuardia Airport (LaGuardia), where it ranked among the fifteen largest carriers (by passenger count) in 2008. From LaGuardia, Continental and its partners operated 16 flights per day as of March 2009.
Continental’s New York hub at Newark Liberty International Airport serves as a gateway to Continental’s international route system to Europe, Asia and Latin America. Continental’s hub at Newark Liberty currently provides daily or near-daily nonstop service to 26 European destinations, seven Canadian cities, eight Central American/Caribbean destinations, four cities in Mexico, plus Bogota, Sao Paulo, Beijing, Delhi, Hong Kong, Mumbai, Shanghai and Tokyo. Continental’s Newark Liberty service represents the only scheduled nonstop service from the New York City area to several important domestic and international destinations. Continental supplements its extensive Liberty operations with frequent nonstop service from LaGuardia to the airline’s hubs in Houston and Cleveland.
Continental Airlines is the world’s fifth largest airline. Continental, together with Continental Express and Continental Connection, has more than 2,400 daily departures throughout the Americas, Europe and Asia, serving 130 domestic and 132 international destinations. Continental is a member of Star Alliance, which provides access to more than 900 additional points in 169 countries via 24 other member airlines. With more than 41,000 employees, Continental has hubs serving New York, Houston, Cleveland and Guam, and together with its regional partners, carries approximately 63 million passengers per year.
Celebrating its 75th anniversary this year, Continental consistently earns awards and critical acclaim for both its operation and its corporate culture. For the sixth consecutive year, FORTUNE magazine named Continental the No. 1 World’s Most Admired Airline on its 2009 list of World’s Most Admired Companies. For more company information, go to continental.com.
SOURCE Continental Airlines
Republican victories in Va., N.J. hinged on economic worries
Voters worried about jobs and the shaky economy helped drive Republican gubernatorial victories in Virginia and New Jersey, according to exit polls, adding political urgency to Democratic efforts to combat the nation's surging unemployment rate.
While top White House officials dismissed suggestions that Tuesday's election amounted to a referendum on President Obama, gleeful Republicans portrayed the outcome as a signal of growing discontent with the president's economic initiatives.
"Certainly the president has put forth policies that are different, controversial, but I think out of the mainstream of where America is," said Republican National Committee Chairman Michael S. Steele, who called the election a "checkpoint" on Obama's policies. "America doesn't want the federal government running its health care. America doesn't want the federal government buying its cars for it and telling it what cars to drive. America doesn't want the federal government running its banks."
With the nation's unemployment rate nearing 10 percent, Republicans Robert F. McDonnell of Virginia and Chris Christie of New Jersey both campaigned heavily on the issue of jobs. Voters in both states rated the economy as the top issue, even if it was not the dominant concern it was a year ago. But in a major shift, voters who said they were "very worried" about the economy broke decidedly toward the Republican candidates this year after tilting heavily toward Obama in 2008.
That reversal accompanies a sharp increase in joblessness in each state over the past year. Unemployment in New Jersey stood at 9.8 percent in September, up four percentage points over the previous September. In Virginia, meanwhile, unemployment stood at 6.7 percent in September, up from 4.1 percent a year earlier.
"A year ago, the economy was bad, Bush was in charge, and if you wanted to change the economy you voted for Obama and against McCain," said Mark Mellman, a Democratic strategist. "In this case, the incumbent officeholders are Democrats. And if the economy is bad, there is a certain tendency to vote against those in power."
Christina Hoag, 58, who owns a catering business with about 25 employees in McLean, said that she hoped a Republican victory would slow government growth and block a health-care plan that she believes would hinder future economic growth. She said that with her vote for McDonnell and other Republicans, she wanted to send the message to Democrats that they do not have a mandate to remake the economy.
"Small businesses can't absorb what the government thinks we can absorb, especially in today's economy," she said at her polling place. "There's anger right now within ourselves, and I think most of that comes from uncertainty and fear."
Despite the shift in sentiment by voters concerned about the economy, White House aides signaled no changes in their approach to the president's ambitious initiatives to overhaul the health-care system, limit greenhouse-gas emissions and stoke job creation.
White House officials said they knew long before the election that the economy was on voters' minds. "I don't think the president needed an election or exit poll to come to that conclusion," said Robert Gibbs, Obama's press secretary.
Employers have slashed 8 million jobs since the recession began in December 2007. While the rate of job losses has slowed substantially in the wake of Obama's economic initiatives and the overall economy has begun to expand again after a year of shrinking, economists have said it could be many months before the jobless rate begins to decline
The gloomy employment picture has pushed the administration and its congressional allies to highlight the job-creation aspects of the $787 billion economic stimulus plan enacted in February, while economic advisers weigh new ideas for creating jobs.
Meanwhile, the President's Economic Recovery Advisory Board has recommended ramping up federal efforts to weatherize homes and public buildings. It also urged establishment of an infrastructure bank, which would allow the federal government to sell bonds for large infrastructure projects, an idea Obama advocated during the presidential campaign.
The Senate on Wednesday approved a bill that would extend unemployment benefits, the $8,000 tax credit for first-time home buyers and a package of small-business tax cuts. The House is expected to follow suit shortly.
"The president is governing in historically challenging economic times, and the economy will be a top issue in the 2010 elections," said Dan Pfeiffer, the White House deputy communications director. "But we knew that before Tuesday."
While top White House officials dismissed suggestions that Tuesday's election amounted to a referendum on President Obama, gleeful Republicans portrayed the outcome as a signal of growing discontent with the president's economic initiatives.
"Certainly the president has put forth policies that are different, controversial, but I think out of the mainstream of where America is," said Republican National Committee Chairman Michael S. Steele, who called the election a "checkpoint" on Obama's policies. "America doesn't want the federal government running its health care. America doesn't want the federal government buying its cars for it and telling it what cars to drive. America doesn't want the federal government running its banks."
With the nation's unemployment rate nearing 10 percent, Republicans Robert F. McDonnell of Virginia and Chris Christie of New Jersey both campaigned heavily on the issue of jobs. Voters in both states rated the economy as the top issue, even if it was not the dominant concern it was a year ago. But in a major shift, voters who said they were "very worried" about the economy broke decidedly toward the Republican candidates this year after tilting heavily toward Obama in 2008.
That reversal accompanies a sharp increase in joblessness in each state over the past year. Unemployment in New Jersey stood at 9.8 percent in September, up four percentage points over the previous September. In Virginia, meanwhile, unemployment stood at 6.7 percent in September, up from 4.1 percent a year earlier.
"A year ago, the economy was bad, Bush was in charge, and if you wanted to change the economy you voted for Obama and against McCain," said Mark Mellman, a Democratic strategist. "In this case, the incumbent officeholders are Democrats. And if the economy is bad, there is a certain tendency to vote against those in power."
Christina Hoag, 58, who owns a catering business with about 25 employees in McLean, said that she hoped a Republican victory would slow government growth and block a health-care plan that she believes would hinder future economic growth. She said that with her vote for McDonnell and other Republicans, she wanted to send the message to Democrats that they do not have a mandate to remake the economy.
"Small businesses can't absorb what the government thinks we can absorb, especially in today's economy," she said at her polling place. "There's anger right now within ourselves, and I think most of that comes from uncertainty and fear."
Despite the shift in sentiment by voters concerned about the economy, White House aides signaled no changes in their approach to the president's ambitious initiatives to overhaul the health-care system, limit greenhouse-gas emissions and stoke job creation.
White House officials said they knew long before the election that the economy was on voters' minds. "I don't think the president needed an election or exit poll to come to that conclusion," said Robert Gibbs, Obama's press secretary.
Employers have slashed 8 million jobs since the recession began in December 2007. While the rate of job losses has slowed substantially in the wake of Obama's economic initiatives and the overall economy has begun to expand again after a year of shrinking, economists have said it could be many months before the jobless rate begins to decline
The gloomy employment picture has pushed the administration and its congressional allies to highlight the job-creation aspects of the $787 billion economic stimulus plan enacted in February, while economic advisers weigh new ideas for creating jobs.
Meanwhile, the President's Economic Recovery Advisory Board has recommended ramping up federal efforts to weatherize homes and public buildings. It also urged establishment of an infrastructure bank, which would allow the federal government to sell bonds for large infrastructure projects, an idea Obama advocated during the presidential campaign.
The Senate on Wednesday approved a bill that would extend unemployment benefits, the $8,000 tax credit for first-time home buyers and a package of small-business tax cuts. The House is expected to follow suit shortly.
"The president is governing in historically challenging economic times, and the economy will be a top issue in the 2010 elections," said Dan Pfeiffer, the White House deputy communications director. "But we knew that before Tuesday."
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