>>> FUNDING FOR "NJ BUSINESS BEAT" PROVIDED BY NEW JERSEY CHAMBER OF COMMERCE, WORKING TO KEEP NEW JERSEY IN BUSINESS.

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>>> THIS WEEK ON "NJ BUSINESS BEAT," BUDGET BREAKDOWN.

WE TALK TO THE STATE TREASURER AND INDUSTRY LEADERS ABOUT GOVERNOR MURPHY'S FINANCIAL ROAD MA MAP FOR THE NEXT FISCAL YEAR.

>>> PLUS, IT'S A DONE DEAL FINALLY.

WE LOOK TOWARD THE FUTURE AS RECREATIONAL MARIJUANA BECOMES LEGAL IN NEW JERSEY.

>>> AND WE'RE PUTTING THE UNEMPLOYMENT CRISIS IN FOCUS FROM A BROKEN BENEFIT CLAIMS SYSTEM TO THE EFFORTS TO RETRAIN MILLIONS OF WORKERS FOR AN EVER-CHANGING JOB MARKET.

THAT'S STRAIGHT AHEAD ON "NJ BUSINESS BEAT."

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

>>> HELLO, I'M RHONDA SCHAFFLER.

THANKS FOR JOINING US ON "NJ BUSINESS BEAT."

IF YOU'RE WATCHING ON YOUTUBE, MAKE SURE YOU SUBSCRIBE TO OUR NJ SPOTLIGHT NEWS YOUTUBE CHANNEL TO GET ALERTED WHEN WE POST NEW EPISODES AND CLIPS.

>>> THIS WEEK GOVERNOR MURPHY UNWRAPS HIS BUDGET PROPOSAL FOR THE NEXT FISCAL YEAR AND IN THIS ELECTION YEAR IT HAD A LITTLE SOMETHING FOR EVERYONE.

THE $44.8 BILLION PLAN INCLUDES NO TAX INCREASES AND TAX RELIEF IN THE FORM OF DIRECT PAYMENTS OF UP TO $500 TO 760,000 RESIDENTS.

THE STATE WILL MAKE ITS FIRST FULL PUBLIC WORKER PENSION CONTRIBUTION IN MORE THAN TWO DECADES.

THERE'S MORE MONEY FOR HEALTH CARE AND EDUCATION, AS WELL AS SOME RELIEF FOR SMALL BUSINESSES.

THE MURPHY ADMINISTRATION IS ABLE TO INCREASE SPENDING IN THE NEXT FISCAL YEAR BECAUSE REVENUES ENDED UP COMING IN STRONGER THAN EXPECTED AND THE STATE BORROWED MORE THAN $4 BILLION LAST FALL AS THE ECONOMY WAS UNDER PRESSURE FROM THE COVID-19 PANDEMIC.

I SAT DOWN WITH STATE TREASURER ELIZABETH MUOLO TO HEAR MORE ABOUT THE ADMINISTRATION'S DECISION ON BORROWING AND SPENDING.

WE WANT TO DIG INTO THE BUDGET A LITTLE BIT WITH YOU.

LET'S START WITH THE FACT THAT NEARLY $45 BILLION BUDGET INCLUDES AN ANTICIPATED SURPLUS OF NEARLY $5 BILLION, PART OF WHICH WILL BE SPENT DOWN IN THE NEW FISCAL YEAR AND UNDER THE PROPOSAL, BUT IT BEGS THE QUESTION DID THE STATE REALLY NEED TO BORROW MORE THAN $4 BILLION, THEN?

>> WELL, YOU KNOW, WHEN WE WENT INTO THIS PANDEMIC BACK LAST SPRING, EARLY SPRING, WE DID REVENUE FORECASTING THAT PLACED US, I THINK, IN MAY OUR REVENUE UPDATE WE SHOWED DECLINES OF $9.9 BILLION WHEN WE DID OUR IF I SAY ROUND OF ESTIMATES BASED ON WHAT WE WERE SEEING IN THE ECONOMY, AND WE -- OUR REVENUES HAD TANKED IN THE SPRING.

YOU KNOW THE PERCENTAGES.

SALES TAX, GROSS INCOME TAX, REALTY TRANSFER FEES, EVERYTHING HAD DECLINED DRASTICALLY IN THE FIRST WAVE OF THE PANDEMIC.

MOODY'S HAD THOUGHT THAT WE COULD BE SEEING DECLINES AS BAD AS $13 BILLION.

WE ENDED UP AT ABOUT $9 BILLION.

BUT WE STARTED ADJUSTING THAT AS WE WENT THROUGH THE PANDEMIC.

WE LOWERED THAT NUMBER AS WE SAW WHAT THE EFFECTS WERE COMING OUT OF THE FIRST SURGE, YOU KNOW, WE STARTED TO BUILD UP SALES TAX, IT TURNS OUT GROSS INCOME TAX HASN'T HURT AS BADLY AS WE THOUGHT AND WE CONTINUED TO ALTER THAT NUMBER THROUGH THE YEAR UNTIL OUR FINAL RECERTIFICATION IN LATE OCTOBER WHEN WE WENT TO BORROW THE EMERGENCY JAIL BOND, BUT IT TURNED OUT THE ECONOMIC EFFECTS OF THE SECOND SURGE DID NOT MIRROR THE ECONOMIC EFFECTS OF THE FIRST SURGE.

WE DID NOT SEE OUR REVENUES PLUMMET LIKE WE DID IN THE FIRST SURGE.

SO THIS IS OUR NEXT CONTINUE, THE GOVERNOR'S BUDGET MESSAGE EVERY YEAR, THE OPPORTUNITY FOR US TO UPDATE OUR REVENUE NUMBERS.

SO WE ARE ADJUSTING THEM NOW AS A RESULT OF HAVING LEARNED FROM EXPERIENCE WHAT THE EFFECT OF THAT SECOND SURGE WAS ECONOMICALLY.

AND THERE ARE A NUMBER OF REASONS I CAN GO INTO FOR WHY IT DIDN'T AFFECT US AS MUCH.

>> WHEN WE LOOK AT THE BUDGET THERE ARE PROPERTY TAX RELIEF PROGRAMS THAT HAVE BEEN MAINTAINED, THERE IS A NEW DIRECT PAYMENT OF UP TO $500 FOR SOME RESIDENTS.

GOVERNOR MURPHY SAYING YESTERDAY HIS BUDGETS HAVE DELIVERED THE LOWEST YEAR OVER YEAR INCREASES IN PROPERTY TAXES ON RECORD, BUT I MUST ASK, THESE ARE STILL INCREASES.

WE ARE NOT LOWERING PROPERTY TAXES.

SO WHY DON'T WE SEE EVEN MORE IN TERMS OF TAX RELIEF, ESPECIALLY GIVEN THE REVENUE AND SURPLUS SITUATION?

>> WELL, I MEAN, THERE IS A LOT OF TAX RELIEF IN THIS BILL AND $1.25 BILLION IN PROPERTY TAX RELIEF THROUGH HOMESTEAD REBATES, SENIOR FREEZE AND OTHER PROGRAMS THAT WE HAVE HAD IN PLACE.

AS YOU MENTIONED, WE ALSO HAVE THE MIDDLE CLASS TAX REBATE THAT IS BUDGETED IN THIS, THAT WAS PART OF THE MILLIONAIRES TAX AGREEMENT LAST YEAR AND THAT WILL BE UP TO $500 PER TAXPAYER.

WE ARE ALSO EXPANDING TAX RELIEF UNDER THE EARNED INCOME TAX CREDIT, THIS YEAR WE ARE PROPOSING TAKING THE AGE CAP OFF TO THAT PEOPLE OLDER THAN AGE 64 IS ALSO TAKE ADVANTAGE OF THE EARNED INCOME TAX CREDIT AND WE ARE ESTIMATING 60,000 NOR NEW JERSEYANS WILL BE ABLE TO TAKE ADVANTAGE OF THAT.

>> ONE OF THE BIG HEADLINES WAS THE $6.4 BILLION PLANNED PENSION PAYMENT.

THE HEAD OF THE CHAMBER OF COMMERCE, TOM BRACKEN, ACTUALLY SUGGESTED THAT THAT WAS TOO MUCH FUNDING AND SOME OF THAT MONEY SHOULD GO TO HELP BUSINESSES.

HOW DO YOU RESPOND TO THAT?

>> AS I'VE SAID IN EARLIER DISCUSSIONS, THAT PENSION PAYMENT HAS BEEN AN ALBATROSS AROUND THE NECKS OF PREVIOUS BUDGETS FOR DECADES AND WITH ALL DUE RESPECT I HAVE TO SAY THAT, YOU KNOW, THE LAST TIME IT WAS PAID 100% WAS BACK IN 1996, THE PAYMENT AT THAT TIME WAS $235 MILLION.

MILLION WITH AN M. WE ARE NOW PAYING $6.4 BILLION BECAUSE PEOPLE MADE THE DECISION NOT TO PAY THE PENSION PAYMENT OR DECREASE WHAT WE SHOULD HAVE BEEN PAYING FOR THE MENTION PAYMENT.

IF WE HAD CONTINUED FROM 1996 TO PAY 100% OF THE ADC FOR THE PENSION PAYMENT THROUGH TO THE FY '21 BUDGET, WE WOULD HAVE BEEN PAYING $750 MILLION THIS YEAR IN FY '21 FOR 100% PAYMENT.

SO BILLIONS AND BILLIONS OF DOLLARS HAVE BEEN LOST BECAUSE PREVIOUS ADMINISTRATIONS HAVE NOT MADE THE FULL PENSION PAYMENT.

THIS WILL SAVE US BY TAKING -- WE'RE DOING IT A YEAR EARLY, ALONG THE PAYMENT PLAN.

SO DOING IT A YEAR EARLY, REACHING 100%, WILL SAVE US OVER $800 MILLION OVER THE NEXT 30 YEARS.

>> STATE TREASURER ELIZABETH MUOLO GOOD TO TALK TO YOU AGAIN.

THANKS FOR YOUR TIME.

>> GOOD TO TALK TO YOU, RHONDA.

>>> HOW HOW DID THE BUDGET GOING OVER IN NEW JERSEY'S BUSINESS COMMUNITY?

WE SPOKE WITH TOM BRACKEN OF THE NEW JERSEY CHAMBER OF COMMERCE AND A MEMBER OF THE NJPBS BOARD OF TRUSTEES.

>> WHAT'S LACKING IN THE BUDGET?

>> YOU KNOW, WE HAVE TO SUPER CHARGE OUR ECONOMY, FIRST OF ALL, WE HAVE TO MAKE SURE THAT THE BUSINESS COMMUNITY HAS ADEQUATE FUNDING TO BE ABLE TO OPEN THEIR DOORS, REHIRE PEOPLE, GET INVENTORY, THAT WORKING CAPITAL IS VITAL, AND THAT HAS NOT BEEN ADDRESSED REALLY ADEQUATELY SINCE THE BEGINNING OF THE PANDEMIC.

SO THE COMBINATION OF VACCINATIONS, A REGIONAL -- A PLAN TO OPEN THE ECONOMY, HAVING ADEQUATE WORKING CAPITAL, ALL THAT NEEDS TO BE IN PLACE FOR US TO HAVE A GUIDE TO GET TO RECOVERY AND THE BEGINNING OF RECOVERY WILL HOPEFULLY BE THE BEGINNING OF SUPER CHARGING AND I THINK THERE IS ENOUGH PENT UP DEMAND THAT ONCE WE GET ALL THOSE FACTORS IN PLACE, WE COULD HAVE A VERY VIBRANT REOPENING OF THE ECONOMY.

>> TOM, DO YOU THINK PERHAPS SOME OF THE RESOURCES WERE DIVERTED AWAY FROM PROGRAMS FOR BUSINESSES WITH THE EXPECTATION THAT THERE WOULD BE MORE FEDERAL MONEY COMING THROUGH, LIKELY TO HELP SMALL BUSINESSES?

>> WELL, IN THE PROPOSED STIMULUS PACKAGE THAT'S FLOATING IN WASHINGTON RIGHT NOW, THERE IS, TO MY KNOWLEDGE, NO ADDITIONAL PPP MONEY FOR THE BUSINESS COMMUNITY.

IT'S MONEY FOR THE STATES, MONEY FOR SCHOOLS, MONEY FOR CHILD CARE, MONEY FOR THE UNEMPLOYED AND STIMULUS MONEY FOR THE GENERAL PUBLIC.

SO TO MY KNOWLEDGE THERE'S NOTHING PENDING IN THE NEW STIMULUS PACKAGE THAT'S REALLY GOING TO HELP THE BUSINESS COMMUNITY, BUT YOU ALSO HAVE TO REMEMBER THAT THERE'S STILL A PPP PLAN OUTSTANDING RIGHT NOW OF $284 BILLION AND I BELIEVE ONLY ABOUT 50% OF THAT HAS BEEN ALLOCATED.

>> YOU HAVE SOME CRITICISM OVER THE PLANNED PAYMENT INTO THE PENSION FUND.

TELL US A LITTLE BIT ABOUT WHY YOU THINK IT'S A VERY BIG STEP AND PERHAPS A SLIGHTLY UNNECESSARY STEP AT THIS TIME.

>> I WOULDN'T CALL WHAT I'M SAYING CRITICISM BECAUSE WE DO NEED TO FUND THE PENSION AND WE DO NEED TO MAKE ADEQUATE PAYMENTS, BUT THE PENSION IS A VERY, VERY BIG PROBLEM AND A PAYMENT EVEN AT 100% LIKE THE GOVERNOR IS PROPOSING IS NOT GOING TO SOLVE OUR PENSION PROBLEM AND IS NOT REALLY GOING TO HELP THE LONG TERM NEGATIVE CLOUD HANGING OVER OUR PENSION ISSUE.

SO THE MONEYS THAT HE HAS ALLOCATED FOR THAT COULD BE USED TO HELP WITH MORE IMMEDIATE PROBLEMS.

THE MOST IMMEDIATE PROBLEM WE HAVE FACING OR STATE RIGHT NOW IS AN ECONOMIC CRISIS.

>> WHAT WILL THE BUSINESS COMMUNITY FIGHT FOR TO HAVE INCLUDED IN THE FINAL BUDGET?

>> THERE'S A LOT OF POSITIVE THINGS AND I THINK IN THOSE CASES IT WILL BE JUST FUNDING -- FIGHTING FOR THE RIGHT AMOUNT OF DOLLARS, BUT TO ME THE BIGGEST ISSUE IS THE REPRIORITIZATION TO REALLY ACCOMMODATE WHAT THE GOVERNOR SAID LAST WEEK WHICH IS TO HAVE A FUNDING PLAN AVAILABLE TO SUPER CHARGE OUR ECONOMY.

THAT TO ME IS KEY AND THAT'S GOING TO BE MY INCOME ONE FOCUS.

>> TOM BRACKEN, GOOD TO TALK TO YOU AGAIN.

THANK YOU.

>> THANK YOU, RHONDA.

>>> THE BUDGET WASN'T THE ONLY BIG NEWS THIS WEEK.

GOVERNOR MURPHY FINALLY SIGNED BILLS LEGALIZING ADULT USE MARIJUANA, PAVING THE WAY FOR A WHOLE NEW INDUSTRY.

THE BILLS LEGALIZE THE RECREATIONAL MARKET IN NEW JERSEY, DEE CRIME NL LIES POSSESSION OF UP TO 6 OUNCES AND ESTABLISH PENALTIES FOR PEOPLE UNDER AGE 21.

LEGISLATIVE LEADERS LIKE SENATOR NICK ASK A TARRY AND SAD CATS INCLUDING BILL CREWS SO HE ARE ALREADY ENVISIONING THE NEXT STEPS FOR THE INDUSTRY.

>> WE HAVE DISPENSARIES THAT ARE OPEN FOR MEDICAL PURPOSES, I'M HOPING THAT THEY'VE GOT THE SIGNAL THEY SHOULD BE PRODUCING MASS QUANTITIES TO THEY CAN OPEN TO THE ADULT USE MARKET AS SOON AS POSSIBLE IF THEY HAVE ENOUGH PRODUCT THAT THEY CAN CERTIFY.

AFTER THAT OBVIOUSLY NEW LICENSE HOLDERS AND A WHOLE NEW MARKETPLACE TAKING AN INDUSTRY THAT OBVIOUSLY ALREADY EXISTS IN THE BLACK MARKET AND TRYING TO MOVE IT INTO A REGULATED MARKET.

>> I SENSE THAT THERE WILL BE A MARKET HERE IN A CRAFT CANNABIS SPACE, LITTLE GUY WILL HAVE AN OPPORTUNITY, THAT HOMEGROWN FLAVOR WILL HAVE AN OPPORTUNITY AND I THINK YOU'RE GOING TO SEE THAT TYPE OF DEVELOPMENT OCCUR NOW ONCE THIS REGULATION TAKES SHAPE.

>> AMID THE EXCITEMENT THE NEW JERSEY BUSINESS AND INDUSTRY ASSOCIATION IS WORRIED ABOUT REPLACING SAFETY.

IT USED TO BE THAT COMPANIES COULD REQUIRE THEIR EMPLOYEES TO TAKE DRUG TESTS BUT THE NEW LAW REQUIRES COMPANIES TO TAKE ANOTHER STEP AND THAT WEAKENS WORKPLACE PROTECTIONS ACCORDING TO RAY CANTER, VICE PRESIDENT OF GOVERNMENT AFFAIRS FOR THE NJBIA.

>> NOW YOU CAN NO LONGER RELY ON THOSE DRUG TESTS SOLELY AS THE MEANS TO PROTECT YOUR WORKPLACE HAVE HAVING AN IMPAIRED EMPLOYEE.

WHAT YOU HAVE TO DO NOW IS USE A PHYSICAL EXAMINATION FROM A DESIGNATED EXPERT IN ORDER TO MAKE THAT DETERMINATION.

AND THAT MAKES THESE WORKPLACES A LOT LESS SAFE.

>> THE NJBIA IS LOOKING TO WORK WITH THE LEGISLATURE TO TRY TO AMEND THE LAW.

>>> IN NEWARK THIS WEEK FOUR FEMALE LEADERS EXPLORED HOW THE STATE'S LARGEST CITY WILL REBOUND AFTER THE COVID-19 PANDEMIC.

ONE OF THOSE LEADERS ENTREPRENEUR ADINA BIYO IS OPENING UP A NEW RESTAURANT IN NEWARK JUST THIS WEEK.

AS A MINORITY BUSINESS OWNER SHE TOLD ME IT HAS NOT BEEN AN EASY JOURNEY.

WE'VE SEEN ON THE STATE LEVEL THERE'S BEEN SOME ATTEMPT TO OFFER MORE FUNDRAISING ON THE FEDERAL LEVEL THE PPP LOAN PROGRAM IS CHANGING TO HOPEFULLY ALLOW MINORITY BUSINESS OWNERS A BETTER SHOT AT GETTING MONEY.

WHY DOES THIS CONTINUE TO BE AN ISSUE THAT GETTING FINANCING AND GETTING CAPITAL IS SO DIFFICULT?

>> AS HAVING BEEN IN BUSINESS FOR 15 YEARS, I'VE RUN DIFFERENT BUSINESSES I STILL HAVE ANXIETY WHEN I GO TO A TRADITIONAL BANK TO FINANCE ME BECAUSE WHEN I WALK IN THERE I WALK IN THERE IN A DEFICIT.

THEY WERE NOT BUILT FOR MY SUCCESS.

IF YOU LOOK AT THIS ADVERSITY IN THOSE BANKS AND THE PEOPLE MAKING THE DECISIONS THEY ARE NOT REFLECTIVE OF WHAT I LOOK LIKE.

SO WHEN I WALK IN THE BANK AND I SAY I NEED A LOAN, SOMETIMES IT'S PROBABLY THE FIRST TIME THEY WILL PROBABLY SEE SOMEONE THAT ME, A MINORITY WOMAN, THAT RUN A MULTI-MILLION DOLLAR BUSINESS.

>> DO WE NEED TO CHANGE PERHAPS WHO WORKS IN SOME OF THESE FINANCIAL INSTITUTIONS SO THERE'S MORE DIVERSITY IN THE WORKFORCE SO THAT WHEN SOMEBODY LIKE YOU WALKS INTO A BANK THERE'S A WHOLE BUNCH OF YOU'S IN THE BANK ALREADY, OR IS IT SOMETHING ABOUT LENDING PRACTICES THAT ARE JUST FLAT-OUT WRONG IN YOUR OPINION?

S>> I THINK IT'S THE FIRST PART OF IT.

DIVERSITY MATTERS.

THERE IS NO WAY -- IF'S, AND'S ABOUT IT, DIVERSITY MATTERS.

WE HAVE TO DO SOMETHING IN HOW THESE BANKS DEAL WITH THE POOR AND THE MARGINALIZED.

SO I DO MOST OF MY BUSINESSES IN COMMUNITIES THAT LACK INVESTMENT, RIGHT?

I DO BUSINESSES IN IRVING TON, NEWARK, PATTERSON, THESE ARE COMMUNITIES THAT BANKS HAVE ESSENTIALLY TURNED THEIR BACKS ON, RIGHT?

IF YOU HAVE PEOPLE FROM THAT COMMUNITY THAT REFLECT THAT COMMUNITY, BETTER DECISIONS GET MADE -- CAN BE MADE, BUT WHAT YOU HAVE IS BUSINESS AS USUAL.

YOU HAVE OFTENTIMES THE LOCAL BRANCH MAY BE DIVERSE, BUT WHEN YOU PUT YOUR APPLICATION THROUGH, THE PERSON MAKING THE DECISION MAY HAVE NEVER HEARD THE NAME ADINA BEFORE.

THAT'S WHERE THE PROBLEM LIES.

WE HAVE TO DIVERSIFY THE DECISION-MAKING PROCESS IN BANKING AND THAT'S GENDER AND RACE.

>> ADINA, I SO APPRECIATE YOU SHARING YOUR STORY AND I'M SO HAPPY YOU HAVE SUCCEEDED DESPITE SOME OF THOSE ODDS THROWN AT YOU.

THANK YOU SO MUCH.

>> OH, YOU'RE WELCOME.

THANKS FOR HAVING ME.

>>> WHEN A NEW BUSINESS OPENS THAT CREATES NEW JOBS AND WE NEED AS MANY JOBS AS WE CAN GET THESE DAYS.

SO WHAT'S THE MURPHY ADMINISTRATION DOING TO HELP GET DISPLACED WORKERS BACK ON THEIR FEET?

THAT'S IN FOCUS FOR THIS WEEK.

THE GOVERNOR'S NEW BUDGET DOES SET ASIDE $22 MILLION FOR WORKFORCE DEVELOPMENT AND ANOTHER $6 MILLION FOR WORKPLACE TRAINING PROGRAMS THAT TARGET LOW INCOME AND UNDERSERVED WORKERS.

I SPOKE WITH GLEN BESS, THE DIRECTOR OF CAREER WORKS FOR THE NEWARK ALLIANCE ABOUT THE NEED TO RESKILL WORKERS FOR THE JOBS THAT ARE AVAILABLE RIGHT NOW.

WE HAVE AN ENORMOUS CHALLENGE, WE HAVE THOUSANDS UPON THOUSANDS OF NEW JERSEY RESIDENTS WHO NEED WORK, SOME WILL HAVE TO BE RETRAINED TO GET NEW JOBS.

HOW HAS THIS COVID PANDEMIC AFFECTED THE WORK YOU DO ON JOB TRAINING?

>> WELL, SOME OF THE IMPACT HAS BEEN BOTH SEEN AND SOME UNSEEN.

OBVIOUSLY CERTAIN SECTORS OF THE -- OF THE WORKFORCE HAS DECREASED SIGNIFICANTLY, ESPECIALLY IN THE HOSPITALITY AND TOURISM SECTOR.

WHAT WE'VE TRIED TO DO IS ALIGN AND PIVOT SOME OF THE DISPLACED WORKERS INTO SECTORS THAT HAVE AN INCREASED DEMAND SUCH AS THE HEALTH CARE SECTOR.

ALSO SECTORS SUCH AS THE LOGISTICS, TRANSPORTATION AND DISTRIBUTION OF SECTOR WHICH HAS CONTINUED TO EXPAND EVEN IN THE MIDST OF THE PANDEMIC.

SO WHAT WE TRY TO DO AS AN ORGANIZATION IS TO ASSIST, STAND UP THOSE TYPES OF PROGRAMS AND INITIATIVES THAT COULD SUPPORT EMPLOYMENT FOR THOSE INDIVIDUALS AND MANY INDIVIDUALS WHO HAVE BEEN IN OTHER SECTORS THAT HAVE BEEN EITHER DISPLACED, BUSINESSES HAVE CONTRACTED, WE HAVE SHIFTED THEM OVER TO OTHER INDUSTRY SECTORS AND EITHER UPSCALED THEM OR RETRAINED THEM IN OTHER AREAS.

>> UNFORTUNATELY IN THIS ECONOMIC DOWNTURN AS WE'VE SEEN BEFORE SOME OF NEW JERSEY'S MOST VULNERABLE RESIDENTS REALLY FEELING THE IMPACT, SOME LOWER INCOME WORKERS, FOR EXAMPLE.

HOW DO WE MAKE SURE THAT SOME OF THE WORKERS WHO MIGHT NOT HAVE THE EDUCATION OR SKILL LEVEL REALLY AREN'T PASSED OVER AS THE ECONOMY BEGINS TO RECOVERY?

BEYOND YOUR PROGRAM WHAT DO WE NEED TO DO AS A STATE IN TERMS OF WORKPLACE TRAINING?

>> THERE CERTAINLY HAS TO BE MUCH MORE INVESTMENT IN BOTH THE NGOs AND COMMUNITY-BASED AND FAITH-BASED ORGANIZATIONS WHO BASICALLY PROVIDE SUPPORT OF SERVICES TO JOB SEEKERS, TO THE LEAST OF THOSE IN OUR COMMUNITIES.

THERE ARE MANY POPULATIONS WHO HAVE BEEN IMPACTED BUT THOSE MOST VULNERABLE POPULATIONS HAVE BEEN DECIMATED DURING THIS PANDEMIC.

TYPICALLY THEIR SUPPORT MECHANISMS HAVE BEEN THOSE ORGANIZATIONS THAT GO BEYOND JUST THE STATE BECAUSE THE STATE NEEDS THOSE ALLIES, THOSE ALLIED ORGANIZATIONS THAT HELP THEM IN SUPPORTING THAT DURING TIMES OF CRISIS.

EVERYTHING FROM HOMELESSNESS TO ILLITERACY TO FOOD AND SHELTER.

ALL OF THOSE THINGS IMPACT HOW WE WORK WITH THESE POPULATIONS IN TRYING TO GET THEM INTO THE EMPLOYMENT SECTOR BECAUSE THOSE THINGS IMPACT WHETHER OR NOT, ONE, THEY CAN BE EMPLOYED, AND THEN THEY CAN BE RETAINED.

AND WE'VE SEEN THAT DURING THIS PANDEMIC WHERE THERE HAS BEEN AN INCREASED PULL AND DEMAND ON THOSE ORGANIZATIONS TO SUPPORT THESE DISPLACED WORKERS, TO SUPPORT INDIVIDUALS WHO HAVE BEEN LARGELY LEFT OUT OF BEING ABLE TO RECOVER QUICKLY.

SO I THINK THAT'S GOING TO BE VERY IMPORTANT MOVING FORWARD, AS WELL AS PRIVATE PARTNERS, PARTNERS IN THE PRIVATE SECTOR AS WELL.

>> CAN THE PRIVATE SECTOR DO MORE?

>> I THINK THEY CAN.

I THINK THEY CAN.

INVESTING IN BOTH TRAINING, INVESTING IN PROGRAMS THAT CAN SUPPORT THEIR INDUSTRY SECTORS, TRAINING IS ALWAYS IMPORTANT AND FOR MAKING SURE THAT THOSE INDIVIDUALS HAVE THE MECHANISMS TO MAKE THEM -- YOU KNOW, TO KEEP THEM ENGAGED AND RETAINED AT THE SAME TIME, THAT'S VERY IMPORTANT.

>> GLEN, THANK YOU SO MUCH FOR YOUR TIME.

>> YOU'RE WELCOME.

>>> THE GOVERNOR'S BUDGET ALSO INCLUDES INCREASED FUNDING TO CONTINUE UPGRADING THE SYSTEM THAT PROCESSES UNEMPLOYMENT CLAIMS AND TO IMPROVE CLAIMANT COMMUNICATIONS.

THERE'S ALSO A BILL KICKING AROUND THE LEGISLATURE TO USE FEDERAL MONEYS TO MODERNIZE THE STATE'S SYSTEM.

WE HAVE ALL HEARD HORROR STORIES FROM FRUSTRATED RESIDENTS WHO HAVE HAD TROUBLE GETTING THEIR CLAIMS PROCESSED AND RECEIVING THEIR BENEFITS.

ATLANTIC COUNTY RESIDENT MARK ZEREC HAS BEEN OUT OF WORK FOR OVER A YEAR.

HE SHARED HIS STORY.

>> MARK, THANKS SO MUCH FOR TALKING TO ME AND SHARING YOUR STORY.

YOU ARE ONE OF THE MANY RESIDENTS WHO HAS HAD TO GO ON UNEMPLOYMENT AND IT HAS NOT BEEN EASY.

SHARE WITH ME, IF YOU WILL, SOME OF THE FRUSTRATIONS YOU HAVE HAD WITH YOUR UNEMPLOYMENT INSURANCE.

>> OKAY.

GREAT.

YEAH.

SO BRIEFLY I OPENED MY CLAIM A YEAR AGO PRE-PANDEMIC IN DECEMBER OF 2019.

EVERYTHING WENT FLAWLESSLY FOR THE FIRST 11 MONTHS OR SO.

I WENT INTO MY EXTENSIONS, MY 13-WEEK EXTENSION, MY 20-WEEK EXTENSION AND THEN A COUPLE WEEKS INTO MY 20-WEEK EXTENSION I OBTAINED MY ONE-YEAR ANNIVERSARY OF MY CLAIM BEING FILED.

AT THAT POINT I WAS TOLD THAT I HAD TO SPEAK TO A CLAIMS AGENT AND MY WEEKLY BENEFIT DIDN'T COME THROUGH.

THAT WAS IN EARLY DECEMBER.

SO I CALLED, IT WAS HARD TO GET THROUGH, TOOK ME A COUPLE DAYS BUT I GOT A PERSON ON THE PHONE.

THEY SAID, HEY, A CLAIMS AGENT HAS FIXED THIS, IT'S GOING TO TAKE FOUR WEEKS, YOU KNOW, IF YOU DON'T HEAR ANYTHING IN FOUR WEEKS CALL US BACK, BUT YOU WILL RECEIVE SOMETHING IN THE MAIL OR AN EMAIL.

WELL, I WAITED FOUR WEEKS, A ALTHOUGH IT WAS HARD JUST TO SIT THERE.

WHEN I RECONTACTED THEM IN EARLY JANUARY THEY SAID, WELL, IT'S GOING TO BE EIGHT MORE WEEKS.

AND I SAID, WHAT HAPPENED TO THE FOUR WEEKS?

YOU KNOW?

THEY SAID IT NEVER WAS FOUR WEEKS.

SO AT THAT POINT I REALIZED THAT THE PERSON I WAS TALKING TO WAS NOT A CLAIMS AGENT, THEY WERE A SERVICE REPRESENTATIVE, SOMEONE HIRED JUST TO ANSWER THE PHONE WHO REALLY DIDN'T KNOW ANYTHING ABOUT UNEMPLOYMENT.

AND I CALLED MANY TIMES AFTER THAT IN JANUARY AND FEBRUARY AND GOT THROUGH TO A SERVICE REPRESENTATIVE, BUT, AGAIN, THEY WERE JUST PEOPLE WHO WERE HIRED TO PLACATE PEOPLE CALLING IN SO THEY COULD TALK TO SOMEBODY.

THEY COULDN'T DO ANYTHING.

SO AT THIS POINT IT'S ABOUT TEN WEEKS, GOING ON 11 WEEKS.

I NEVER RECEIVED ANY COMMUNICATION FROM THE DIVISION AND I'M REALLY UP IN THE AIR ABOUT IT.

MY QUESTION IS WILL MY CLAIM BE REVIEWED AND HOW WILL I KNOW, YOU KNOW, WHEN THAT'S GOING TO HAPPEN?

>> ON A SCALE OF ONE TO TEN WHERE IS YOUR FRUSTRATION LEVEL RIGHT NOW?

>> WELL, OF COURSE IT'S ALL THE WAY UP THERE BECAUSE JUST NOT HAVING ANY COMMUNICATION IS THE WORST PART OF IT, YOU KNOW, WE NEED SOME KIND OF DIRECTION.

WE NEED TO BE HOLD, HEY, WHEN YOU GET TO YOUR ANNIVERSARY YOU'RE GOING TO GET KICKED OFF, BUT THIS IS WHAT WE'RE GOING TO DO TO FIX IT.

AS I SAID, IN MARCH IT'S GOING TO BE MULTIPLIED MANY TIMES.

>> MARK, I WANT TO THANK YOU FOR NOT ONLY SHARING YOUR STORY, BUT ALERTING OTHERS THAT THERE COULD BE SOME TROUBLE AHEAD.

I REALLY APPRECIATE IT AND I HOPE YOU'RE BACK TO WORK VERY SOON.

>> YEAH.

THANKS A LOT.

I APPRECIATE IT, RHONDA.

>>> THE STATE LABOR DEPARTMENT SAYS IT IS REQUIRED TO REVIEW ALL UNEMPLOYMENT CLAIMS 52 WEEKS AFTER THEY ARE FILED.

NEXT MONTH THOUSANDS OF RESIDENTS WILL BE SUBJECT TO WHAT'S CALLED THE BENEFIT YEAR REVIEW.

THE LABOR DEPARTMENT SAYS IF THIS IS HAPPENING TO YOU, IT IS IMPORTANT NOT TO TRY TO OPEN A NEW CLAIM BECAUSE THAT WILL RESULT IN A SUSPENSION OF BENEFITS.

>>> I WANT TO THANK YOU FOR WATCHING "NJ BUSINESS BEAT."

ARE YOU A BUSINESS INTERESTED IN SPONSORING "NJ BUSINESS BEAT"?

CONTACT STEVE PRIOLO AT THE EMAIL OR PHONE NUMBER YOU SEE AT THE BOTTOM OF YOUR SCREEN.

I'M RHONDA SCHAFFLER.

WE WILL SEE YOU NEXT WEEK.

>> Announcer: FUNDING FOR "NJ BUSINESS BEAT" PROVIDED BY NEW JERSEY CHAMBER OF COMMERCE, WORKING TO KEEP NEW JERSEY IN BUSINESS.

ONLINE AT NJCHAMBER.COM.

CGI, A GLOBAL I.T.

AND BUSINESS CONSULTING SERVICES FIRM.

WE HAVE BEEN HELPING GOVERNMENTS AND PRIVATE SECTOR CLIENTS IN NEW JERSEY WITH THEIR EVOLVING TECHNOLOGY NEEDS FOR 30 YEARS.

LEARN MORE ABOUT OUR SERVICES AT CGI.COM.

AND IBEW LOCAL 102, PROUDLY SERVING NEW JERSEY'S BUSINESS COMMUNITY SINCE 1900.

LOCAL 102, LIGHTING THE PATH, LEADING THE WAY.

VISIT IBEW102.ORG.

♪