April 2, 2007 - Volume I, Issue 1

Letter from Chairman Charlene Brown
Dear Business Leader:

The New Jersey Policy Research Organization (NJPRO), the research affiliate of the New Jersey Business & Industry Association, is pleased to introduce you to our newest publication�NJPRO Foundation Watch. This new quarterly newsletter is designed to bring you up-to-date on NJPRO's latest business research and upcoming networking events!

NJPRO is well aware that, as a New Jersey employer, access to timely and relevant information is essential to your business success. We also know that State policymakers are often not fully aware of how their decisions can impact business because there is a shortage of reliable research that supports the employer community. That is why NJPRO is committed to sponsoring quality research that promotes a more competitive climate for New Jersey�s businesses.

It is our hope that this concise newsletter will help you stay better informed of all the exciting work we are doing at NJPRO. Throughout the year, NJPRO regularly produces Facts for Discussion, a two-to-four-page publication that focuses on one topic and presents the facts and policy implications in a simplified layout. Recent Facts for Discussion topics include the impact of diversions from New Jersey's Unemployment Insurance Fund and the State budget.

On its Web site, NJPRO also provides a broad array of State statistics of interest to the business community in the "State Stats" section. These statistics are continuously updated to reflect where New Jersey ranks in comparison to other states, serving as a good gauge of how our State fares in many areas of public policy.

In addition, we produce our annual business research compilation, Bright Ideas for Business, which recognizes the best business research being conducted at State colleges and universities. We also conduct in-depth research projects like our latest report�"New Jersey's Business Climate: How Policy and Perception Are Affecting New Jersey's High-Tech and Manufacturing Sector"� that show how New Jersey's dismal business climate is having a real impact on private-sector job growth in the State.

And this is just a glimpse of all that we are involved in!

You'll find all of NJPRO's publications and reports as well as information about our upcoming events online at www.njprofoundation.org. We hope that you will visit our Web site often and use this newsletter as your guide to the information. If you have any research ideas for us, please contact NJPRO Executive Director . We want to hear from you and make our research as meaningful as possible!

Sincerely,

Charlene Brown
Chair, NJPRO Foundation Board
Director of Government Relations, AT&T

New NJPRO Special Report Shows New Jersey
Leads Most States in Business Costs
Businesses in New Jersey operate with higher costs than those in most competing states, according to a new report issued by the New Jersey Policy Research Organization, the research affiliate of the New Jersey Business & Industry Association. The report�New Jersey's Business Climate: How Policy and Perception Are Affecting New Jersey's High-Tech and Manufacturing Sectors�is a compilation of numerous national studies that rank New Jersey at or near the bottom of the 50 states in cost-of-doing business, business climate and tax competitiveness, despite the State's high-income population, well-educated workforce and prime location.

New Jersey's dismal ranking in the national studies is unfortunately playing out in real economic numbers. The NJPRO report shows that 2006 was the third straight year that the State's private-sector job creation lagged well behind the nation.

At a time when New Jersey's anti-business government policies are clearly having a dramatic affect on the State's ability to attract and retain companies, the NJPRO report shows that New Jersey's business tax burden is rated the third highest in the country by the independent, Washington-based Tax Foundation. By another measure, New Jersey's property taxes per capita are highest in the nation.

According to the Milken Institute's 2005 Cost of Doing Business Index, another study cited in the NJPRO Report, New Jersey is the 7th most expensive state in which to do business, with business costs that are over 20 percent higher than the national average. The Beacon Hill Institute's State Competitiveness Index, which assesses numerous factors including technology, government fiscal policy and labor force, ranks New Jersey 43rd among the states. The Small Business & Entrepreneurship Council ranks New Jersey as the worst place in the nation for small businesses. Compared to every other state, New Jersey's policies in terms of taxes, regulation, spending and other governmental costs are at or near the bottom when it comes to promoting entrepreneurship and business growth.

To download the full NJPRO Report and view all the other nationally recognized rankings of New Jersey�s business climate and economic performance, visit www.njprofoundation.org.

State Statistics Spotlight: New Jersey Ranked Worst
State to Operate a Small Business
NJPRO's "State Stats," which shows how New Jersey measures up to its competitor states in terms of population and quality of life, taxation and government, economy, education, and energy costs, has just been updated to show that New Jersey ranks 50th in the nation in the Small Business and Entrepreneurship Council's Small Business Survival Index. While New Jersey's population is among the wealthiest and most-educated in the nation, the State's business climate is ranked among the least competitive. Whether it is business taxes, healthcare expenses, housing or energy rates, New Jersey's costs are exponentially higher for employers.

The "Small Business Survival Index 2006" analyzes 29 different government-imposed or government-related costs, including taxes, regulations, and government spending to determine which state governments were friendliest to small businesses and entrepreneurship. The best small business climates were found in South Dakota and Nevada. Other rankings included Pennsylvania at 16th, Delaware at 19th and New York at 45th.

New Jersey's poor ranking from the Small Business & Entrepreneurship Council is just one of the "State Stats" featured on NJPRO�s Web site. The full compilation is available online.

Save the Date: NJPRO's PROactive Policy Awards May 10!
On May 10, the NJPRO Foundation will hold its NJPROactive Policy Awards breakfast at the Trenton Marriott to recognize advocates of government efficiency and cost-cutting. This excellent networking opportunity will begin at 8:30 a.m.

This year's event will be focused on government efficiency and government cost-cutting. The following will be honored: Governor Jon Corzine, Assembly Speaker Joseph Roberts, Senate Republican Leader Leonard Lance, Senator Shirley Turner, Assemblywoman Nellie Pou, Assemblyman Kevin O'Toole, and the South Jersey Chamber of Commerce.

"This year's honorees have distinguished themselves as tremendous advocates for pro-business policy by trying to reduce the size and cost of government," said Charlene Brown, Chair of NJPRO. "They understand how important government efficiency and cost-cutting is to a vibrant business climate and the economic well-being of New Jersey and its citizens. It is with great pride that we at NJPRO host this special event to recognize their outstanding leadership and support for economic growth, the need to contain our State spending and willingness to check our State budget."

There is no cost to attend this event, but space is limited. For more information or to register, contact at 609-393-7707, ext. 256. For more information on sponsorship, contact at ext. 204.

Support Our Research and Help Promote Pro-Growth Policy
There is no better way to help improve New Jersey's business climate than to ensure the production of sound business research that promotes pro-growth policies. That is the exact goal of the New Jersey Policy Research Organization and why contributions from business leaders like you are so important.

By making a tax-exempt donation to NJPRO today, you can help level the playing field in the policy debate in Trenton. Far too often, legislators are bombarded with biased anti-business rhetoric that can impact their policy decisions. NJPRO strives to bring balance to the process by providing reliable and relevant research on behalf of the employer community.

NJPRO is a nonpartisan, tax-exempt organization that depends solely on the support of corporations, individuals and foundations for its income. It does not accept any government funding. Make a contribution today by visiting www.njprofoundation.org/contribution/ and help improve the business climate in New Jersey!