>>> FUNDING FOR "NJ BUSINESS BEAT" PROVIDED BY IBEW LOCAL 102, PROUDLY SERVING NEW JERSEY'S BUSINESS COMMUNITY SINCE 1900.

LOCAL 102, LIGHTING THE PATH, LEADING THE WAY.

VISIT IBEW102.ORG.

AND FOR MORE THAN 110 YEARS, NJBIA HAS BEEN FOCUSED ON THE ADVANCEMENT AND SUCCESS OF OUR MEMBERS.

WE'RE THE VOICE REPRESENTING ALL INDUSTRIES, WORKING TOGETHER TO HELP BUILD A MORE PROSPEROUS NEW JERSEY THROUGH ADVOCACY, SUPPORT, NETWORKING AND BENEFITS.

>>> THIS WEEK ON "NJ BUSINESS BEAT," PROMISING A MORE AFFORDABLE BUSINESS LANDSCAPE.

>> WHERE SMALL BUSINESSES WITH GROW AND SUCCEED, AND EVEN MORE IMPORTANTLY, FIND THE DYNAMIC WORKFORCE.

>> HOW THE BUSINESS COMMUNITY IS REACTING TO THE GOVERNOR'S $53 BILLION BUDGET.

>>> PLUS, RUTGERS STAFF PREPARES TO VOTE ON A HISTORIC STRIKE, AS CONTRACT NEGOTIATIONS BREAK DOWN.

>>> AND THE PRESIDENT'S STUDENT LOAN DEBT RELIEF PLAN COMES UNDER SCRUTINY FROM SUPREME COURT JUSTICES.

THAT'S AHEAD ON "NJ BUSINESS BEAT."

♪♪ >> Announcer: THIS IS "NJ BUSINESS BEAT" WITH RHONDA SCHAFFLER.

>>> HELLO AND THANKS FOR JOINING US ON "NJ BUSINESS BEAT."

GOVERNOR PHIL MURPHY THIS WEEK UNVEILING HIS $53.1 BILLION BUDGET FOR THE NEW FISCAL YEAR, SAYING IT WAS A BLUEPRINT THAT INVESTS IN THE FUTURE, PROVIDES MIDDLE CLASS TAX RELIEF AND INSULATES THE STATE FOR ECONOMIC UNCERTAINTY.

THE GOVERNOR OUTLINED HIS PROPOSALS TO MAKE NEW JERSEY MORE AFFORDABLE, INCLUDING ALLOCATING $2 BILLION TO CONTINUE THE ANCHOR PROPERTY TAX RELIEF PROGRAM, DOUBLING THE CHILD TAX CREDIT TO $1,000 PER CHILD, EXPANDING THE SENIOR FREEZE PROPERTY TAX RELIEF PROGRAMS, MAKING THOSE WITH INCOMES OF UP TO $150,000 ELIGIBLE, AND PROVIDING ANOTHER $15 MILLION FOR THE STATE'S DOWN PAYMENT ASSISTANCE PROGRAM FOR FIRST TIME HOME BUYERS.

THE BUDGET ALSO INCLUDES MAKING A MORE THAN $7 BILLION PAYMENT TO THE STATE'S PENSION SYSTEM, SETTING ASIDE $10 BILLION FOR A SURPLUS IN CASE OF AN ECONOMIC DOWNTURN AND BOOSTING FUNDING FOR EDUCATION.

THAT INCLUDES AN ADDITIONAL $109 MILLION FOR PRESCHOOL EDUCATION, $832 MILLION MORE IN K THROUGH 12 SCHOOL FUNDING, AND $134 MILLION ADDITIONAL DOLLARS FOR HIGHER EDUCATION.

FOR THE BUSINESS COMMUNITY, GOVERNOR MURPHY CAME THROUGH ON HIS PROMISE TO ALLOW THE 2.5% CORPORATE BUSINESS TAX SURCHARGE TO LAPSE AT THE END OF THIS YEAR.

>> WE HEAR FROM THE BUSINESS COMMUNITY THAT ALLOWING THE SURCHARGE TO LAPSE WILL MEAN MORE MONEY FOR THEM TO CREATE JOBS, TO INVEST IN NEW AND MORE EFFICIENT EQUIPMENT, TO LOWER COSTS TO CONSUMERS AND TO BE ABLE TO STAY HERE, ENDING THE TEMPORARY SURCHARGE IS SIMPLY ONE WAY WE COMPETE FOR THE WORLD'S LEADING COMPANIES AND AT THE SAME TIME MAKE NEW JERSEY THE PLACE WHERE ENTREPRENEURS WILL WANT TO COME TO START NEW ONES.

>> ENDING THE SURCHARGE MEANS THE STATE WILL LOSE SOME REVENUE AND MORE REVENUE LOSS IS POSSIBLE IF NEW JERSEY IS HIT WITH A RECESSION.

TO FIND OUT HOW THE STATE CAN AFFORD THE RECORD-SPENDING OUTLINED IN THIS BUDGET, I STAT DOWN WITH STATE TREASURER ELIZABETH MAHER MUOIO.

>> THANKS FOR JOINING ME ON "NJ BUSINESS BEAT" THIS WEEK.

>> THANKS FOR HAVING ME, RHONDA.

>> I WANT TO START ASKING YOU ABOUT NEW JERSEY'S REVENUE OUTLOOK.

REVENUES AS YOU POINTED OUT COMING IN STRONGER IN THE CURRENT FISCAL YEAR, IT'S LOOKING DIFFERENT AS WE LOOK AHEAD TO THE NEW FISCAL YEAR.

CAN YOU EXPLAIN HOW THE PROJECTIONS ARE CHANGING AND HOW THAT HELPED GUIDE DECISIONS ON THE BUDGET?

>> WE HAD PREDICTED BACK WHEN THE BUDGET FIRST WAS STRUCK LAST SUMMER THAT WE WOULD SEE MORE STRENGTH THAN REVENUES IN THE FIRST HALF OF THE YEAR AND THEN THEY WOULD START TO TAPER OFF AND STABILIZE IN THE SECOND HALF OF THE YEAR.

THAT'S WHAT WE'RE NOW SEEING.

SO THAT'S WHY YOU'RE SEEING THAT FOR OUR FORECAST FOR FISCAL YEAR '24, REVENUES ARE NOT AS EXCITING TO LOOK AT AS THEY WERE FOR -- CERTAINLY DURING FY '22 BUT ALSO DURING THE FIRST HALF OF FY '23.

>> SO SOME OF THE CONCERNS THAT HAVE BEEN RAISED SINCE THE BUDGET WAS PROPOSED IS WHETHER THE CURRENT LEVEL OF PROPOSED SPENDING IS SUSTAINABLE IF WE SEE THAT REVENUE STRENGTH AMELIORATE A LITTLE BIT.

>> IN NEW JERSEY WE HAVE THE BUDGETARY TOOLS THAT IF FOR SOME REASON WE EXPERIENCE A REAL DROP OFF IN OUR REVENUES IN JULY, WHEN WE SEE THOSE RETURNS, OR SOMETHING UNEXPECTED, WE CAN SHIFT HOW MUCH MONEY GOES OUT FOR, YOU KNOW, EXPENSES AND MAKE ADJUSTMENTS TO THE BUDGET THAT THEN IS FINALIZED FOR FY '24, BUT IT'S SOMETHING WE'RE ALWAYS LOOKING AT.

AS YOU PROBABLY ALSO ARE AWARE, THERE IS A SIGNIFICANT SURPLUS BUILT INTO OUR FISCAL YEAR '24 BUDGET, 19%, JUST OVER $10 BILLION, WHICH WILL ALSO HELP US THROUGH TIMES IF IT LOOKS LIKE REVENUES ARE FALLING.

>> AND OF COURSE SOME ARE SAYING THAT THE SURPLUS IS A LITTLE BIT TOO GENEROUS.

WHY NOT TAKE SOME OF THOSE FUNDS AND USE IT FOR ADDITIONAL SPENDING ON PROGRAMS, ESPECIALLY IF THE ECONOMIC SLOWDOWN IS JUST THAT, AND NOT A RECESSION?

SO IS THAT SOMETHING THAT WOULD POTENTIALLY BE REVISITED OR IS IT JUST A LEVEL THAT YOU'D LIKE TO SEE MAINTAINED, ESPECIALLY NOT JUST FOR THE STATE, BUT FOR SOME OF THE CREDIT RATING AGENCIES?

>> WE'VE ALL SEEN, ALL STATES INCLUDING NEW JERSEY, WHAT TOUGH TIMES LOOK LIKE NOW THAT WE'VE BEEN THROUGH COVID AND HOW IMPORTANT IT IS TO BUILD THAT SURPLUS UP TO HELP US GET THROUGH THOSE TIMES.

WE'VE EXPERIENCED OBVIOUSLY SEVERAL RATING UPGRADES SINCE WORKING TO BUILD THAT SURPLUS UP AND DO A BETTER JOB OF PAYING OUR BILLS, AND IT'S JUST HANDS DOWN CRITICALLY IMPORTANT TO HAVE THAT -- THAT FINANCIAL FOUNDATION AVAILABLE TO ENABLE US TO DO ALL OF THESE OTHER THINGS AND GET THROUGH TOUGH TIMES IF THOSE WERE AHEAD.

>> WE WILL END IT THERE.

THANK YOU SO MUCH FOR YOUR TIME TONIGHT.

>> ALL RIGHT.

THANKS, RHONDA.

>>> REPUBLICAN LAWMAKERS HAD A LOT TO SAY ABOUT THE GOVERNOR'S BUDGET, BEYOND CONCERNS ABOUT THE OVERALL LEVEL OF STATE SPENDING, SENATOR DECLAN O'SCANLON SAYS IF YOU ARE MURPHY'S PLAN DOESN'T PROVIDE ENOUGH TAX RELIEF FOR NEW JERSEY RESIDENTS.

>> IF YOU OFFSET THE SUPPOSED TAX CUTS WITH THE TAX INCREASES THAT ARE STILL HAPPENING DESPITE HIM SAYING THERE AREN'T ANY IN THIS BUDGET AND LAST YEAR'S BUDGET THERE'S VERY LITTLE TAX RELIEF FOR THE TAXPAYERS OF NEW JERSEY UNDER THIS ADMINISTRATION.

YOU DON'T GET CREDIT FOR CUTTING A TAX YOU YOURSELF RAISED THE CORPORATE BUSINESS TAX.

IT DOESN'T WORK THAT WAY.

THE ANCHOR PROGRAM WILL GIVE BACK ABOUT NET $1.5 BILLION TO PEOPLE, THE REPUBLICAN PLAN WOULD HAVE GIVEN ALMOST $4 BILLION AND GIVEN TO THEM LAST YEAR.

BY SITTING ON THIS MONEY AND HOARDING THIS MONEY, WHATEVER IS GIVEN BACK IS WORTH 10% LESS NOW BECAUSE OF INFLATION.

>> NEW JERSEY'S BUSINESS LEADERS WERE PLEASED TO HEAR THAT GOVERNOR MURPHY IS BACKING THE SUN SETTING OF THAT 2.5% SURCHARGE ON THE CURRENT CORPORATE BUSINESS TAX RATE OF 9%, BUT IN THEIR VIEW OVERALL BUSINESS TAXES ARE STILL TOO HIGH AND THEY WANT MORE RELIEF.

TO FIND OUT WHAT'S ON THE BUSINESS COMMUNITY'S AGENDA, I SPOKE WITH TOM BRACKEN, PRESIDENT OF THE NEW JERSEY CHAMBER OF COMMERCE.

>> WILL NEW JERSEY'S BUSINESS COMMUNITY BE BETTER OFF BASED ON WHAT YOU HEARD IN GOVERNOR MURPHY'S PROPOSED BUDGET?

>> GOVERNOR MURPHY'S PROPOSED BUDGET OTHER THAN THE SUNSETTING OF THE CORPORATE BUSINESS TAX SURCHARGE WAS RELATIVELY SILENT ON THE BUSINESS COMMUNITY OF NEW JERSEY.

SOME OF THE URBAN INVESTMENT FUNDS, WE WILL HAVE SOME PERIPHERAL IMPACT, THE BOARDWALK FUNDS WILL HAVE SOME PERIPHERAL IMPACT, BUT OTHER THAN THAT THERE'S VERY LITTLE IN THAT BUDGET THAT WE HEARD ABOUT YESTERDAY THAT WILL HAVE ANY SIGNIFICANT IMPACT ON THE BUSINESS COMMUNITY.

>> I KNOW YOU'RE PLEASED WITH THE SUN SETTING OF THE CORPORATE BUSINESS TAX AS PROPOSED.

WHEN THE GOVERNOR MENTIONED HE'D LIKE TO SEE THAT HAPPEN HE CHALLENGED THE BUSINESS COMMUNITY AND SAID THE BUSINESS COMMUNITY WOULD NEED TO KEEP ITS WORD, HIRE MORE PEOPLE, INVEST LOWER COSTS.

IS THAT SOMETHING THE BUSINESS COMMUNITY CAN DO?

>> RHONDA, I THINK THE BUSINESS COMMUNITY CAN DO THAT, BUT THE STATE ALSO NEEDS TO DO MORE FOR THE BUSINESS COMMUNITY.

WE NEED TO HAVE A BETTER OVERALL BUSINESS COMMUNITY, A MORE BUSINESS-FRIENDLY BUSINESS COMMUNITY.

WE NEED TO TAKE CARE OF SOME ISSUES THAT WE HAVE BEEN PREACHING ABOUT FOR YEARS TO MAKE THE BUSINESS ENVIRONMENT BETTER IN NEW JERSEY.

AND IF THOSE THINGS ARE ACCOMPLISHED, THE ANSWER TO YOUR QUESTION IS, YES, THE STRONGER THE OVERALL BUSINESS COMMUNITY THE MORE LIKELY COMPANIES WILL BE TO INVEST, TO HIRE PEOPLE, TO SUCCEED, BUT IT CAN'T BE ONE -- A ONE-SHOT INFLUENCE, LIKE THE CBT SUNSET IS.

WE NEED A LOT MORE HELP FROM THE LEGISLATURE AND THE GOVERNOR ON ISSUES AND IF WE GET THOSE, THE SKY IS THE LIMIT TO THE ECONOMY AND THE BUSINESS COMMUNITY OF NEW JERSEY.

>> TOM, WHERE DO YOU SEE POTENTIAL ROOM FOR COMPROMISE IN WHAT YOU HEARD, AND HOW WILL THAT ALIGN WITH SOME OF THE PROPOSALS THAT YOU'VE PUT OUT THERE, WHETHER IT'S MORE FUNDING FOR SMALL BUSINESS, LOWERING THE CORPORATE BUSINESS TAX RATE OR PUTTING MONEY ASIDE TO HELP WITH THE PAYROLL UNEMPLOYMENT TRUST FUND ISSUE?

>> I WOULD ADD TO THAT LIST THE REGULATORY ISSUE OUT THERE THAT NEEDS TO BE ADDRESSED BECAUSE WE ARE A SIGNIFICANTLY OVERREGULATED STATE, WHICH CAUSED DELAYS IN BUSINESS EXPANSION AND REALLY IN SOME CASES WILL TAKE PEOPLE OUT OF THE MIX FROM EXPANDING HERE BECAUSE THEY DO NOT WANT TO GO THROUGH THE MORASS INVOLVED WITH ALL THE DIFFERENT PERMITTING LEVELS.

>> TOM, THANK YOU SO MUCH FOR YOUR TIME AND YOUR THOUGHTS TODAY.

I APPRECIATE IT.

>> THANK YOU, RHONDA.

>>> LIKE THE CHAMBER, THE NEW JERSEY BUSINESS AND INDUSTRY ASSOCIATION BELIEVES SOME KEY ITEMS WERE LEFT OUT OF THIS YEAR'S PROPOSED BUDGET.

NJBIA PRESIDENT AND CEO WOULD LIKE TO SEE LAWMAKERS CONSIDER MORE WAYS TO LOWER COSTS FOR BUSINESSES IN NEW JERSEY.

SHE TOLD ME NOW IS THE IDEAL TIME TO PUT PROGRAMS IN PLACE THAT WOULD IMPROVE THE STATE'S BUSINESS CLIMATE.

>> GOVERNOR MURPHY IS SAYING HE WOULD LIKE TO SEE THE CORPORATE BUSINESS TAX SURCHARGE LAPSE AT THE END OF THE YEAR.

ISN'T THAT A BIG WIN FOR THE BUSINESS COMMUNITY?

>> WELL, IT'S A START FOR THE BUSINESS COMMUNITY.

THIS IS A PROMISE MADE, PROMISE KEPT.

LET'S CALL IT WHAT IT IS, FOR SURE.

AND MAKE SURE THAT WE RECOGNIZE THAT THIS IS ONE STEP IN WHAT SHOULD BE A MORE COMPREHENSIVE PLAN TO CONTINUE TO DRIVE DOWN THE CORPORATE BUSINESS TAX HERE IN THE STATE OF NEW JERSEY, IN ORDER TO REMAIN COMPETITIVE WITH OUR SURROUNDING STATES.

>> I KNOW THERE'S MORE THAT YOU WANTED TO HEAR IN THE BUDGET ADDRESS.

WHAT IN YOUR VIEW IS A PRIORITY AS DISCUSSIONS BEGIN ON A NEW SPENDING PLAN?

>> SURE.

CONTINUING TO ENSURE THAT WE HAVE COMPREHENSIVE REFORM ON THE THINGS THAT COST NEW JERSEY BUSINESS A LOT OF MONEY.

A GREAT EXAMPLE, THE ANCHOR PROGRAM.

SO PROPERTY OWNERS AND RENTERS ARE GOING TO BE EXCITED TO HAVE A SECOND YEAR OF SOME REBATE, RELATIVE TO THEIR PROPERTY TAX.

UNFORTUNATELY, NEW JERSEY BUSINESS WHO PAYS 50% OF THAT TAX HERE IN THE STATE OF NEW JERSEY, WILL NOT RECEIVE ANY RELIEF WHEN IT COMES TO PROPERTY TAX.

WE THINK THAT THERE'S A BETTER OPPORTUNITY IN ORDER TO ENSURE THAT NEW JERSEY BUSINESS CAN HAVE SOME PROPERTY TAX REFORM AS WELL.

ALSO, RHONDA, PLEASE LET'S NOT FORGET THE INCREASED COSTS IN THE UNEMPLOYMENT INSURANCE TRUST FUND.

WE HAVE BEEN TALKING ABOUT THIS NOW FOR THREE YEARS.

THIS YEAR IS THE PERFECT OPPORTUNITY GIVEN THE SURPLUS TO BRING RELIEF TO NEW JERSEY BUSINESSES, ESPECIALLY THOSE SMALL TO MID-SIZED BUSINESSES, TO PROVIDE SOME RELIEF RELATIVE TO THE UNEMPLOYMENT INSURANCE TRUST FUND.

THESE ARE REAL DOLLARS AND REAL INCREASED COSTS FOR NEW JERSEY BUSINESS THAT WE CAN AVOID.

>> MICHELLE, WHAT ABOUT SOME OF THE OTHER THINGS IN THE BUDGET, MORE MONEY FOR THE MAIN STREET RECOVERY FUND, FOR INSTANCE?

I MEAN, THERE WAS SOME MONEY ALLOCATED TO ECONOMIC DEVELOPMENT.

IS IT ADEQUATE IN YOUR MIND?

>> THESE ONE-OFF PROGRAMS ARE VERY SPECIFIC AND LIMITED TO THE TYPE OF COMPANIES THEY CAN HELP.

MAIN STREET PROGRAM IS GREAT, THE BOARDWALK PROGRAM IS GREAT, BUT WHAT WE CONTINUE TO SEEK IS MORE COMPREHENSIVE RELIEF THAT ALL BUSINESS CAN BENEFIT FROM.

>> WHAT DO YOU THINK THE BIGGEST CHALLENGE IS GOING TO BE FOR NEW JERSEY BUSINESSES AS WE HEAD INTO THE NEW FISCAL YEAR?

WE DID HEAR AS WELL NOTES OF CAUTION ABOUT WHAT'S HAPPENING WITH THE ECONOMY, FOR INSTANCE.

>> BUSINESSES FEEL COMFORTABLE ABOUT THE THINGS THAT THEY CAN CONTROL, BUT WHAT THEY CAN'T CONTROL IS WHEN THEY HAVE ADDITIONAL MANDATES THRUST ON THEM AND WE KNOW, AGAIN, THERE ARE NEW LABOR MANDATES BEING DISCUSSED.

THESE ARE THINGS THAT COST REAL MONEY TO NEW JERSEY BUSINESS AND WE NEED TO BE CAUTIOUS OF.

SO OUR MESSAGE TO OUR POLICYMAKERS AS WE CONTINUE THROUGH BUDGET SEASON, NO NEW MANDATES, NO NEW FEES, NO NEW TAXES AND, BY THE WAY, DON'T FORGET UI IS A TAX AND A COST TO BUSINESS, AN ADDITIONAL COST WE WILL SEE YET AGAIN ON JULY 1, AND PLEASE PROMISE ME LET'S SEE THE SUNSET OF THE CBT.

>> WE WILL END IT THERE, MICHELLE.

THANKS SO MUCH FOR YOUR TIME.

>> ABSOLUTELY, RHONDA.

THANK YOU.

>> FOR ADDITIONAL DETAILS ABOUT THE PROPOSED STATE BUDGET AND HOW IT WILL IMPACT YOU, CHECK OUT OUR TEAMS REPORTING ON NJ SPOTLIGHT NEWS.ORG/BUDGET.

>>> ELSEWHERE, WE'RE CLOSELY WATCHING A MAJOR STORY INVOLVING RUTGERS UNIVERSITY.

FOR THE FIRST TIME IN THE SCHOOL'S HISTORY PROFESSORS COULD GO ON STRIKE.

UNIONS REPRESENTING PROFESSORS, A JUKTS AND GRAD STUDENT ARE TALKING ABOUT WHETHER TO AUTHORIZE A STRIKE.

AS VOTING BEGAN EARLY THIS PAST WEEK UNION MEMBERS RALLIED OUTSIDE A BOARD OF GOVERNORS MEETING IN NEWARK.

SENIOR CORRESPONDENT BRENDA FLANAGAN WAS THERE.

>> WHAT DO WE WANT?

WHEN DO WE WANT IT?

>> Reporter: RUTGERS FACULTY AND STAFF RALLIED IN THE CAMPUS TO FIRE UP UNION SUPPORT FOR A STRIKE AUTHORIZATION VOTE UNDER WAY.

AFTER WORKING SINCE LAST JUNE WITHOUT A CONTRACT, SOME 7,500 FULL AND PART-TIME PROFESSORS, GRADUATE STUDENTS COULD HIT NEW JERSEY STATE UNIVERSITY WITH THE FIRST STRIKE IN ITS 255-YEAR HISTORY.

>> AND WE WILL STRIKE.

YEAH.

WE ARE TIRED, WE ARE FED UP WITH THE EXCUSES AND WE WILL WIN.

>> UNDERSTAND THAT THIS FIGHT IS GOING TO GO ON AND ON AND ON, BUT WE'RE HERE TODAY TO MAKE A STATEMENT AND IF WE DON'T GET WHAT WE WANT -- IF WE DON'T GET IT -- >> Reporter: SPEAKERS LIKE CHRIS SMALS WHO ORGANIZED THE FIRST AMAZON UNION ON STATEN ISLAND RALLIED THE CROWD.

LEADERS FOR THE TWO UNIONS, THE AMERICAN ASSOCIATION OF UNIVERSITY PROFESSORS AND THE RUTGERS ADJUNCT FACULTY SAY NEGOTIATIONS WITH RUTGERS ADMINISTRATORS HAVE STALLED.

>> WE HAVE DEMANDS THAT WE THINK MAKES THIS A BETTER RUTGERS FOR EVERYONE, THAT FIT THE PRESIDENT'S IDEA OF A BELOVED COMMUNITY AND REALLY MAKE US A FAIR PLACE FOR EVERYBODY IN THE RUTGERS COMMUNITY AND THE UNIVERSITY HAS RESPONDED BY REJECTING ALL OF OUR DEMANDS.

>> Reporter: CONTRACT DEMANDS INCLUDE SALARY INCREASES OF 20% OVER FOUR YEARS FOR FULL-TIME PROFESSORS, AN IMMEDIATE 23% RAISE TO $37,000 A YEAR FOR GRADUATE WORKERS AND EQUAL PAY FOR EQUAL WORK BY PART-TIME ADJUNCT PROFESSORS, PLUS HEALTH BENEFITS, A TWO-YEAR MINIMUM APPOINTMENT TO START AND A PATH TO TENURE.

AMY HIGER HAS BEEN AN ADJUNCT FOR YEARS.

>> A LOT OF US ARE LOOKING FOR FULL-TIME WORK AND WE WOULD LOVE TO TEACH AT RUTGERS, WE LOVE IT HERE, LOVE OUR STUDENTS BUT THEY FIND IT'S CHEAPER TO EMPLOY US PEEL MAIL.

>> Reporter: THE FOOTBALL COACH'S SALARY $32 MILLION OVER EIGHT YEARS AS A SIGN OF MISPLACED PRIORITIES.

>> WHY IS THE UNIVERSITY SPENDING MILLIONS OF DOLLARS ON THE BLACK HOLE THAT IS ADMINISTRATIVE COSTS IN ATHLETICS, THROWING AWAY MILLIONS OF DOLLARS FOR ATHLETIC DEBT FOR AN AWFUL FOOTBALL TEAM.

>> WE ARE VERY INVOLVED, I PROMISE YOU, AT THE HIGHEST LEVELS ON BOTH THE UNION SIDE, RUTGERS SIDE.

I HOPE IT'S SOONER THAN LATER THAT THEY FIND RESOLUTION AND GET THIS TO THE PLACE IT SHOULD BE.

>> Reporter: GOVERNOR MURPHY IS A PRO-UNION DEMOCRAT BUT RUTGERS ADMINISTRATION CONTAINS TWO HOLDOVERS FROM THE REPUBLICAN CHRISTIE ADMINISTRATION, JOHN HOFFMAN AND DAVID COHEN VIEW IT AS ANTI-LABOR BY UNION NEGOTIATORS.

A RUTGERS SPOKESWOMAN SAYS IT HAS FULL CONFIDENCE IN OUR NEGOTIATING TEAM WHICH FAITH THREE REPRESENTS THE POSITION OF THE UNIVERSITY AND THAT ADMINISTRATORS WILL CONTINUE TO MEET IN GOOD FAITH WITH THEM UNTIL WE REACH COMPREHENSIVE AGREEMENTS ON MANNED TORE I WILLY NEGOTIABLE ISSUES INCLUDING COMPENSATION AS QUICKLY AS POSSIBLE.

>> IT'S TIME TO BARGAIN FAIR CONTRACTS AND OUR MEMBERS ARE SAYING WE DON'T WANT TO GO ON STRIKE, BUT IF WE HAVE TO, WE WILL.

>> Reporter: VOTING LASTS FOR A TEN-DAY PERIOD.

IT TAKES JUST A SIMPLE MAJORITY TO AUTHORIZE A STRIKE AND UNION OFFICIALS EXPECT OVERWHELMING SUPPORT.

IN NEWARK, I'M BRENDA FLANAGAN, "NJ BUSINESS BEAT."

>>> THE BATTLE OVER WHETHER THE BIDEN ADMINISTRATION CAN FORGIVE STUDENT LOAN DEBT HAS NOW LANDED IN THE NATION'S HIGHEST COURT.

SUPREME COURT JUSTICES HEARD ORAL ARGUMENTS THIS PAST WEEK ON CHALLENGES TO THE DEBT RELIEF PLAN WHICH WOULD ELIMINATE UP TO $20,000 IN FEDERAL STUDENT LOANS FOR MILLIONS OF AMERICANS.

I DISCUSSED THE LEGAL RAMIFICATIONS OF THE CASE WITH RUTGERS LAW SCHOOL PROFESSOR RONALD CHEN.

>> PROFESSOR, THANK YOU SO MUCH FOR JOINING ME TO TALK ABOUT THE CASE BEFORE THE SUPREME COURT.

EXPLAIN TO US, IF YOU WOULD, WHAT IS AT THE HEART OF THE MATTER?

WHAT IS THE BIG LEGAL ISSUE TO BE DECIDED?

>> WELL, THERE'S A -- ON THE MERITS THERE IS A CONSTITUTIONAL ISSUE OF WHETHER THE PRESIDENT OR THE SECRETARY OF EDUCATION ACTING UNDER THE PRESIDENT HAS THE AUTHORITY TO ENACT SUCH A MAJOR POLICY DECISION SUCH AS STUDENT LOAN FORGIVENESS TO SO MANY PEOPLE WITHOUT A MORE EXPLICIT AUTHORIZATION FROM CONGRESS.

THE SUPREME COURT HAS RECENTLY BEEN ANNOUNCING A DOCTRINE CALLED THE MAJOR QUESTIONS DOCTRINE THAT FINDS OUT IF THERE IS GOING TO BE SUCH A MAJOR POLICY CHANGE THAT IT REALLY HAS TO BE CONGRESS AS THE LEGISLATIVE BRANCH OF THE GOVERNMENT THAT ENACTS IT.

SO THERE WERE A LOT OF QUESTIONS AT THAT ORAL ARGUMENT ABOUT WHETHER THIS ACTION, WHICH CLEARLY WAS SIGNIFICANT FROM AN ECONOMIC PERSPECTIVE, JUST BECAUSE OF THE AMOUNT OF MONEY INVOLVED, WHETHER IT WAS THE TYPE OF ACTION THAT CONGRESS COULD REASONABLY HAVE CONTEMPLATED.

>> SO LET M TEASE THIS OUT A LITTLE BIT FOR YOU.

FIRST OF ALL, IS THERE ANY SORT OF LEGAL PRECEDENT THAT THE JUSTICES WILL USE AS A GUIDE AS THEY GO ABOUT MAKING THEIR DECISION ON THIS CASE?

>> WELL, THERE WAS A RECENT CASE LAST YEAR, WEST VIRGINIA VERSUS EPA, IN WHICH THE COURT FOUND THAT THE EPA WENT BEYOND ITS AUTHORITY BY ENACTING A WHOLESALE SET OF REGULATIONS IN ORDER TO TRY TO ADDRESS A CLIMATE CHANGE.

>> THERE'S ALSO THIS ISSUE OF WHETHER THE STATES COULD BRING THE LAWSUIT ANYWAY.

WHAT IS THE ISSUE THERE?

>> THE STATES IN THIS CASE THE ARGUMENT GOES REALLY HAVE NO CONCRETE INJURY THAT IS SUFFERED BY THE FACT THAT THEY ARE -- THAT THESE STUDENT LOANS HAVE BEEN FORGIVEN.

IT'S NOT AS IF THE MONEY IS BEING TAKEN FROM THEM OR THAT THEY ARE BEING REGULATED IN ANY WAY BY THE FEDERAL GOVERNMENT, AND IT REALLY AMOUNTS TO A POLITICAL DISAGREEMENT BETWEEN THESE SIX STATES DISAGREEING WITH WHAT THE BIDEN ADMINISTRATION DID.

>> BASED ON WHAT YOU'VE HEARD AND PERHAPS HEARD, DO YOU HAVE ANY SENSE OF WHERE THIS MIGHT GO?

>> IF THEY REACH THE MERITS, IF THEY FIND THAT THE STATES DO HAVE STANDING THEN I SUPPOSE I WOULD HAVE TO PREDICT THAT THIS CASE WOULD BE ANOTHER CASE ALONG -- IN THAT TREND TOWARDS MAKING -- MAKING CONGRESS BE THE ENEMY THAT ENACTS THESE POLICY CHANGES EXPLICITLY.

>> IT IS GOING TO BE INTERESTING, PROFESSOR.

THANK YOU SO MUCH FOR HELPING US SORT IT OUT A BIT.

THANK YOU SO MUCH FOR YOUR TIME.

>> MY PLEASURE.

>>> BLACK HISTORY MONTH HAS COME AND GONE AND WHEN IT COMES TO LEVELING THE PLAYING FIELD FOR BLACK-OWNED BUSINESSES, THERE IS MORE WORK TO BE DONE, BUT AT THE SAME TIME THERE ARE STEPS IN THE RIGHT DIRECTION, ESPECIALLY IN THE PRIVATE SECTOR.

THAT'S THE ASSESSMENT OF JOHN HARDMAN WHO LEADS THE AFRICAN AMERICAN CHAMBER OF COMMERCE OF NEW JERSEY.

I SPOKE WITH JOHN EARLIER THIS WEEK.

>> JOHN, IT'S GREAT TO SEE YOU BACK ON "NJ BUSINESS BEAT."

>> ALWAYS GLAD TO BE HERE.

>> JOHN, WE JUST WRAPPED UP BLACK HISTORY MONTH.

HOW WOULD YOU DESCRIBE THE STATE OF BLACK-OWNED BUSINESSES IN NEW JERSEY TODAY?

>> WELL, I TELL YOU, RHONDA, IT'S STILL ENCOURAGING, YOU KNOW?

THE PRIVATE SECTOR IS LEANING A LITTLE MORE IN THAN THE PUBLIC SECTOR BECAUSE NEW JERSEY LACKS THE POLICY.

NEW JERSEY HAS YET TO COMPLETE ITS DISPARITY STUDY, THEREFORE, NEW JERSEY CANNOT IMPLEMENT GOALS LIKE NEW YORK.

NEW YORK HAS A 30% MINORITY AND WOMEN-OWNED PROCUREMENT GOAL WHICH RESULTED IN $3.1 BILLION IN PUBLIC CONTRACTING TO MINORITY AND WOMEN-OWNED BUSINESSES, BUT THE PRIVATE SECTOR IS REALLY WHEN I SAY LEANING IN, WE'RE HAVING ONGOING CONVERSATIONS AND INTRODUCTIONS, GETTING BLACK BUSINESSES AND OTHER MEMBERS OF THE CHAMBER IN PLACE TO ADD VALUE.

>> JOHN, I DID NOTICE IN GOVERNOR MURPHY'S PROPOSED BUDGET THERE WAS SOME FUNDING INCLUDED IN, HIS WORDS, TO ADVANCE THE WORK OF NEW JERSEY'S WEALTH DISPARITY TASK FORCE WITH $6 MILLION BEING COMMITTED TO, AMONG OTHER THINGS, SUPPLY CHAIN DIVERSITY.

SO ASSUMING THAT DOES MOVE FORWARD, IS THAT A GOOD STEP IN THE RIGHT DIRECTION, OR IS FAR MORE NEEDED?

>> WELL, WE CAN ALWAYS USE MORE, BUT I HAVE TO COMMEND THE GOVERNOR, THAT IS AN EXCELLENT STEP FORWARD.

I GUESS HE'S ANTICIPATING THAT THIS DISPARITY STUDY WILL BE CONCLUDED AND THEY CAN START PUTTING IN PLACE STRATEGIES TO BE MORE EQUITABLE FOR MINORITY AND WOMEN-OWNED BUSINESSES, PARTICULARLY BLACK BUSINESSES, WHO HAVE THE LOWEST PARTICIPATE RATE IN PUBLIC CONTRACTING IN THE STATE.

>> YOU MENTIONED THE INVOLVEMENT OF THE PRIVATE SECTOR.

I THINK ONE OF THE MOST INTERESTING THINGS I SAW THIS PAST MONTH WAS THE FIRM AERIAL INVESTMENTS CREATING WHAT THEY CALL PROJECT BLACK, IT'S A FUND THAT IS DESIGNED TO SUPPORT MINORITY-OWNED BUSINESSES AND WHAT'S KEY IS THEY'VE GOT PRIVATE MONEY, $1.5 BILLION, SO PEOPLE SEE OPPORTUNITY.

HOW DO WE REPEAT THAT?

>> I AM HOPING THAT EFFORTS LIKE THIS WILL SERVE AS A TIPPING POINT AND GET SOME OF THOSE CORPORATIONS AND OTHERS THAT ARE ON THE SIDELINE MORE ENGAGED IN THIS TRANSFORMATIONAL PROCESS.

THAT INVESTMENT OF $1.5 MILLION ONCE YOU LEVERAGE IT IS PROBABLY WORTH A SUBSTANTIAL AMOUNT MORE OF IMPACTFUL INVESTMENT IN UNDERPERFORMING AND COMPANIES THAT ARE SEEKING TO GROW AND SCALE.

>> JOHN, WE WILL LEAVE IT THERE.

ALWAYS A PLEASURE.

THANKS FOR JOINING ME.

>> THANK YOU SO MUCH, AND WE WILL BE IN TOUCH.

>>> AND THAT DOES IT FOR US THIS WEEK.

REMEMBER TO SUBSCRIBE TO OUR "NJ SPOTLIGHT NEWS" YOUTUBE CHANNEL TO GET ALERTED WHEN WE POST NEW EPISODES AND CLIPS.

>>> COMING UP NEXT WEEK, WE HIGHLIGHT WOMEN AND BUSINESS IN NEW JERSEY, WITH A LOOK AT PAY EQUITY, WORK/LIFE BALANCE AND LEADERSHIP OPPORTUNITIES.

THANKS FOR WATCHING, WE WILL SEE YOU BACK HERE NEXT WEEKEND.

>> Reporter: FUNDING FOR "NJ BUSINESS BEAT" PROVIDED BY IBEW LOCAL 102, PROUDLY SERVING NEW JERSEY'S BUSINESS COMMUNITY SINCE 1900.

LOCAL 102, LIGHTING THE PATH, LEADING THE WAY.

VISIT IBEW102.ORG.

>>> AND FOR MORE THAN 110 YEARS, NJBIA HAS BEEN FOCUSED ON THE ADVANCEMENT AND SUCCESS OF OUR MEMBERS.

WE'RE THE VOICE REPRESENTING ALL INDUSTRIES, WORKING TOGETHER TO HELP BUILD A MORE PROSPEROUS NEW JERSEY THROUGH ADVOCACY, SUPPORT, NETWORKING AND BENEFITS.

♪♪ ♪♪