BEAT" PROVIDED BY, NJB, HAS BEEN FOCUSED ADVANCEMENT AND SUCCESS OF OUR MEMBERS.

ON THE EMPLOYEES REPRESENTING ALL INDUSTRIES, WORKING TOGETHER TO HELP BUILD A MORE PROSPEROUS NEW JERSEY THROUGH ADVOCACY, SUPPORT, NETWORKING AND BENEFITS.

NJ SCHOOL OF BUSINESS, A GAME-CHANGING FORCE OFFERING PROGRAMS LIKE FINANCIAL TECHNOLOGY OR BUSINESS ANALYTICS AND DATA SCIENCE.

STEPS AWAY FROM THE EXCHANGE PLACE IN JERSEY CITY AND MINUTES FROM WALL STREET.

LEARN MORE ONLINE.

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

LOCAL 102, LIGHTING THE PATH, LOADING THE WAY, VISIT IBEW102.ORG.

>>> THIS WEEK ON "NJ BUSINESS BEAT," THE IMPACT OF WAR.

WE TALK TO CONGRESSMAN JOSH AND A GAS EFFECT PERCENT ABOUT THE ECONOMIC EFFECTS OF WHITE HOUSE POLICIES AND SANCTIONS.

>>> AND WE PUT NEW JERSEY'S NEW BUDGET PROPOSAL IN FOCUS TALKING TO THE STATE TREASURER AND BUSINESS LEADERS ABOUT THE NEW ECONOMIC INITIATIVES.

WITH FOCUS ON AFFORDABILITY AND TAX RELIEF AND WHAT IT ALL MEANS FOR YOUR WALLET.

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

>>> 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.

WE BEGIN THIS WEEK WITH A POSSIBILITY OF TAX RELIEF FOR NEW JERSEYANS.

THE PROMISE OF MORE MONEY IN YOUR POCKET DELIVERED BY GOVERNOR PHIL MURPHY, WHO PRESENTED HIS PROPOSED BUDGET FOR FISCAL YEAR 2023, WHICH BEGINS IN JULY.

THE GOVERNOR UNVEILED A 48.9 BILLION SPENDING PLAN THAT INCLUDES NO NEW TAX, MORE SPEND ING FOR SCHOOLS, AND A BIG CONTRIBUTION TO NEW JERSEY'S PENSION FUND FOR STATE WORKERS.

THE THEME WAS ALL ABOUT MAKING NEW JERSEY MORE AFFORDABLE AND THE GOVERNOR TALKED IN HIS BUDGET ADDRESS ABOUT MAKING NEW JERSEY AN ATTRACTIVE PLACE FOR COMPANIES TO SET UP SHOP.

>> NOT ONLY HAVE THE JOB CREATORS STAYED, MORE AND MORE OF THEM ARE MOVING IN.

THEY ARE COMING HERE BECAUSE OUR INVESTMENT TOS ARE DEEPENING OUR STATE'S POOL OF TALENTED AND SKILLED WORKERS.

THEY ARE COMING IN BECAUSE OUR BUSINESS, OUR INVESTMENTS ARE FOCUSED ON CREATING THE COMMUNITIES IN WHICH THEIR OWN EMPLOYEES WANT TO LIVE.

THIS IS WHAT HAPPENS WHEN WE USE THE BUDGET AS A TOOL TO GROW NEW INDUSTRIES INSTEAD OF REWARDING THE SPECIAL INTERESTS.

AND NONE OF THIS HAPPENS WITHOUT A BUDGET THAT MAKES CRUCIAL INVESTMENTS IN PEOPLE AND INDUSTRIES, IN COMMUNITIES, AND IN A TRUE VISION.

THIS IS WHAT HAPPENS WHEN YOU USE THE BUDGET NOT JUST TO MUTT THE THROUGH TODAY, BUT TO BUILD A STATE OFFEN OPPORTUNITY FOR TOMORROW.

>> WE'RE PUTTING THE STATE BUDGET IN FOCUS THIS WEEK DIVING INTO THE DETAILS AND DELVING INTO WHY SOME THINK THIS RECORD HIGH BUDGET MISSES THE MARK.

THE GOVERNOR WANTS TO SPEND NEARLY $49 BILLION WITHOUT RAISING ANY NEW TAXES OR FEES.

SPENDING IS UP ABOUT 5% COMPARED TO THE LAST BUDGET.

THE HIGHLIGHT WAS A NEW $900 MILLION PROPERTY TAX RELIEF PROGRAM CALLED ANCHOR, WHICH ESSENTIALLY REPLACES THE HOMESTEAD REBATE PROGRAM AND WOULD MAKE MORE PEOPLE ELIGIBLE.

HOMEOWNERS MAKING UP TO $250,000 ANNUALLY WOULD RECEIVE $680 IN TAX RELIEF.

RENTERS MAKING UP TO $100,000 WOULD ALSO RECEIVE REBATE CHECKS WITH SENIORS AND DISABLED RESIDENTS GETTING $250 AND OTHER RENTERS RECEIVING $150.

THE GOVERNOR IDENTITY SAVES RESIDENTS WILL ALSO SAVE MONEY THROUGH ONE-YEAR FEE HOLIDAY, NO FEES FOR LICENSES AND YOU CAN GET INTO STATE PARKS FOR FREE.

THIS WILL COST THE STATE $60 MILLION.

A BIG PORTION OF THE BUDGET GOES TO EDUCATION AND AN ADDITIONAL $650 MILLION GOING INTO SCHOOL FORMULA AID WITH TOTAL SPENDING AT $19 MILLION.

AND IN TERMS OF THE STATE'S PENSION FUND, MURPHY PROPOSES A NEARLY $7 BILLION CONTRIBUTION TO MAKE UP FOR PAST YEARS WHEN THE STATE FAILED TO MAKE FULL PENSION CONTRIBUTIONS.

NOW THE BUDGET IS JUST A PROPOSAL.

OVER THE NEXT FEW MONTHS, THE MURPHY ADMINISTRATION AND THE STATE LEGISLATURE NEED TO REACH AN AGREEMENT ON A FINAL SPENDING PLAN.

REPUBLICAN LAWMAKERS ARE ALREADY VOICING THEIR CONCERNS THAT THERE'S TOO MUCH SPENDING AND NOT ENOUGH MONEY BEING RETURNED TO TAXPAYERS.

SENATOR MIKE TEST TALKED TO NJ SPOTLIGHT NEWS AFTER THE GOVERNOR'S BUDGET ADDRESS.

>> I DO NOT LIKE THIS BUDGET WHATSOEVER.

I BELIEVE IT'S A BLOATED BUDGET.

IT'S A BUDGET THAT CONTINUES TO GROW.

THE FACT THAT IT'S GROWN BY OVER $10 BILLION IN THE LAST COUPLE YEARS AND THE GOVERNOR IS SITTING ON THAT $4.6 BILLION IN ACCESS TAX THAT WAS COLLECTED, THE $4.3 BILLION THAT WE BORROWED THAT WE DIDN'T NEED TO BORROW, AND $3 BILLION OF FEDERAL AID THAT HAS NOT BEEN ALLOCATED YET, IT SHOWS TO ME THERE COB A LOT OF FAT CUT FROM THIS BUDGET AND WE NEED TO WORK IN A BIPARTISAN MANNER AND BE HONEST ABOUT THIS AND CUT SOME OF THIS FAT.

>> SO HOW DID THE ADMINISTRATION MAKE ITS DECISIONS ON SPENDING?

I GOT SOME ANSWERS ON THAT FROM NEW JERSEY STATE TREASURER WHO TALKED ABOUT HOW THE ADMINISTRATION TRIED TO STRIKE A BALANCE.

>> GOOD TO SEE YOU BACK ON "NJ BUSINESS BEAT."

>> GOOD TO SEE YOU, RHONDA.

>> AS YOU PROBABLY KNOW, REPUBLICANS WANT TO SEE MORE MONEY RETURNED TO TAXPAYERS, SO I GUESS THE QUESTION IS, HOW DID YOU SETTLE ON THAT $900 FOR THE NEW ANCHOR PROGRAM?

>> THIS IS A SIGNIFICANT INVESTMENT.

THE ANCHOR PROGRAM, BUT ONE THAT WE FULLY SUPPORT AND WANT TO MAKE.

BUT WE NEED TO MAKE SURE THAT WE'RE FUNDING ALL OF THE OTHER CRITICAL PROGRAMS THAT WILL HELP NEW JERSEYANS ALMOST 90% OF OUR BUDGET EVERY YEAR OF OUR EXPENDITURE GOES BACK OUT INTO THE COMMUNITIES AND TOWNS AND SCHOOLS THROUGHOUT THE STATE.

SO THIS MONEY IS OUT THERE WORKING IN OUR COMMUNITIES, AND WE WANT TO MAKE SURE THAT WE HAVE THOSE RESOURCES AVAILABLE, THAT WE HAVE TAX RELIEF AVAILABLE, AND THAT WE ARE ABLE TO KEEP A SAFE SURPLUS AMOUNT AND ALSO UTILIZE SOME FUNDS TO BE ABLE TO PAY OFF SOME OF OUR MORE EXPENSIVE DEBT AND AVOID TAKING ON NEW DEBT.

SO THE GOVERNOR PROPOSED OVER A BILLION DOLLARS IN ADDITIONAL DEBT AVOIDANCE FOR THE COMING YEAR.

SO THAT HAS SAVED THE STATE ALREADY HUNDREDS OF MILLIONS OF DOLLARS IN WHAT WE HAVE BEEN ABLE TO AVOID SO FAR WITH THE RECENT BUDGET.

>> THERE'S SOME DISAPPOINTMENT FROM THE BUSINESS COMMUNITY ABOUT A LACK OF FUNDING AS THEY SEE IT TO MAKE THINGS MORE AFFORDABLE.

THERE'S BEEN SOME CONCERN ABOUT THE PAYMENT INTO THE UNEMPLOYMENT INSURANCE FUND TO REPLENISH THAT.

WHY NOT MORE MONEY FOR BUSINESSES?

ESPECIALLY SINCE SOME OF THE RE REVENUE PROJECTIONS SHOW FOR A SMALLER RAMP UP, IF YOU WILL?

>> THE GOVERNOR HAS MADE SIGNIFICANT INVESTMENTS IN BUSINESSES OVER THE PAST SEVERAL YEARS.

AND I THINK YOU MENTIONED IN HIS SPEECH HOW WE HAVE ATTRACTED VENTURE CAPITAL IN THE STATE.

OUR GDP FOR THE STATE AND THE THIRD QUARTER OF 2021, WHICH IS THE MOST RECENT AVAILABLE DATA, WE OUTTRACKED OUR NEIGHBORS IN PENNSYLVANIA AND NEW YORK AND THE NATIONAL GDP AVERAGE.

SO WE WANT TO CONTINUE SUPPORTING BUSINESSES.

I KNOW THERE'S BEEN TALK ABOUT THE UNEMPLOYMENT INSURANCE FUND AS A POTENTIAL USE FOR SOME OF OUR FUNDS, THE FEDERAL FUNDS WE STILL HAVE ABOUT $3 BILLION OR SO LEFT IN THOSE FUNDS THAT THE GOVERNOR IS GOING TO WORK WITH THE LEGISLATURE.

TO ENCOURAGE SHORT-TERM TURN AROUNDS AND LONG-TERM PLANNING FOR THE ECONOMY.

SO THE GOVERNOR HAS MADE SIGNIFICANT INVESTMENTS IN THE BUSINESS COMMUNITY AND WILL CONTINUE TO DO SO.

THIS BUDGET CONTINUES TO DO SO.

>> SO WE HAVE TALKED ABOUT A LOT OF DIFFERENT PROGRAMS.

THIS YEAR THE BUDGET DOES NOT INCLUDE ANY TAX INCREASES.

IS THE ECONOMY GOING TO GROW ENOUGH TO SUPPORT THESE PROGRAMS GOING FORWARD?

AND THE SPENDING BEHIND THESE PROGRAMS?

>> A LOT OF THE INVESTMENTS WE HAVE MADE, ESPECIALLY WHEN WE UTILIZED THE FEDERAL FUNDS, HAS BEEN WITH AN EYE TOWARDS INVESTING IN ONE TIME EXPENDITURES THAT WILL NOT SET US UP FOR A LONG-TERM OBLIGATION.

AS YOU KNOW, THESE FUNDS ARE AVAILABLE RIGHT NOW, BUT THEY WON'T BE AVAILABLE IN THE FUTURE.

THE WAY WE INVEST THEM HAS TO BE DONE IN A WAY THAT DOES NOT LEAVE US ON THE HOOK TO CONTINUE HAVING TO SUPPORT THE LONG-RANGE PROGRAM INTO THE FUTURE.

>> IT'S BEEN GREAT DOING SOME NUMBER CRUNCHING WITH YOU AND GETTING SOME OF OF THE INSIDE DETAILS ON HOW THE BUDGET WAS PUT TOGETHER THANK YOU FOR YOUR TIME.

>> THANK YOU.

HAVE A GOOD WEEKEND.

>> BUSINESS LEADERS IN NEW JERSEY HAVE MIXED VIEWS ON THE BUDGET.

THERE ARE FUNDS ALLOCATED TO SUPPORTING BUSINESSS AND PROVIDING JOB TRAINING TO WORKERS.

THE GOVERNOR PROPOSES $50 MILLION FOR THE MAIN STREET RECOVERY FUND, WHICH SUPPORTS SMALL BUSINESSES.

THERE ARE INITIATIVES TO SUPPORT BLACK AND LATINO BUSINESSES WITH THE ACKNOWLEDGMENT THAT ECONOMIC EQUALITY IS LAGGING.

AND $300 MILLION IS EARMARKED FOR THE INNOVATION EVER GREEN FUND, WHICH IS DESIGNED TO ATTRACT VENTURE CAPITAL FUNDING FOR NEW JERSEY ENTREPRENEURS.

WHILE BUSINESS LEADERS APPLAUDED THOSE EFFORTS, THEY WERE STILL DISAPPOINTED THAT MORE SUPPORT WASN'T MADE AVAILABLE SAYING BUSINESSES AROUND THE STATE ARE STILL HURTING.

I SPOKE WITH THE PRESIDENT AND CEO OF THE NEW JERSEY STATE CHAMBER OF COMMERCE AND A MEMBER OF THE NJPDS BOARD OF TRUSTEES.

TOM, GREAT TO SEE YOU ONCE AGAIN ON "NJ BUSINESS BEAT."

>> THANK YOU FOR HAVING ME.

>> IT SEEMS LIKE GOVERNOR MURPHY'S PROPOSED BUDGET IS A MIXED BAG FOR BUSINESSES.

THERE'S SOME PLUSES, BUT ALSO THERE WAS SOME THINGS THAT YOU DIDN'T HEAR.

LET'S FOCUS ON THE POSITIVES FIRST.

WHAT DID YOU LIKE IN THE BUDGET?

>> OBVIOUSLY, LOWER TAXES, LOWER FEES, THAT'S MUSIC TO OUR EARS.

POSITIVE MESSAGE WE GOT.

THE $50 MILLION FOR MAIN STREET BUSINESSES.

THE FACT THAT THE FUND IS GOING TO KICK BACK IS THE BEST.

THAT WILL BE A BIG PLUS FOR THE STATE.

THERE'S NOT A LOT OF DISCUSSION ABOUT BUSINESS IN THAT BUDGET.

>> WHY DO YOU THINK THAT WAS?

AND WHY DO YOU THINK THE GOVERNOR CHOSE NOT TO ADDRESS THE ISSUE OF UNEMPLOYMENT INSURANCE, WHICH BUSINESSES HAVE BEEN TALKING ABOUT FOR AWHILE?

>> I THINK THE GOVERNOR, WE HAVE BEEN TALKING ABOUT THAT FOR THE YEAR.

THEN WE HAVE GOTTEN NO INDICATION THERE WAS A POSITIVE RECEPTION.

>> WHAT ELSE WOULD YOU HAVE LIKED TO HAVE HEARD?

>> ECONOMY, IF YOU TALK TO BUSINESSES IS AT THE HIGH LEVEL THAT THE GOVERNOR BASED ON THE GDP MEMBER.

WE HAVE A WAYS TO GO.

ARE WE REALLY NEED TO BE, ABSOLUTELY NOT.

SO ADDRESSING THE REAL ISSUES I THINK WOULD BE A POSITIVE BECAUSE YOU HAVE TO BE HONEST ABOUT WHAT THE PLUSES AND MINUSES ARE TO BE ABLE TO ATTACK AND LEAD THE WAY IN THE FUTURE OF THE STATE.

I THINK THE BASIC ADDRESS AND TOGETHER WITH THAT AND BELIEVES THAT THE WAY TO ATTACK THE ECONOMY AND MAKE IT BETTER.

STILL HAVE TO ADDRESS THE BASIC BUSINESS COMMUNITY AND THAT WAS NOT ADDRESSED IN THE SPEECH.

>> WHAT ABOUT THE WHOLE ISSUE OF AFFORDABILITY?

WE HEARD ABOUT TAX BREAKS COMING FRR PROPERTY OWNERS AND RENTERS AND THE AFFORDABILITY ISSUE FOR BUSINESSES ALSO WAS NOT REALLY ADDRESSED.

HOW SHOULD IT BE?

>> WE'RE FACING AN ECONOMIC CRISIS.

TO PROVIDE HIGH WAGES TO THEIR EMPLOYEES TO TRY TO GET THAT BACK TO WORK.

AND THAT'S AN ISSUE.

INFLATION IS A HUGE FACTOR THAT IS CAUSING THEM TO INCREASE PRICES OR INCREASE WAGES THAT THEY ARE PAID.

THERE'S ALL KINDS OF ISSUES THAT ARE FACING THE BUSINESS COMMUNITY FROM AN AFFORDABILITY STANDPOINT.

THERE ARE WAYS TO MITIGATE THAT.

ONE OF THE BIGGEST WAYS, THE BUSINESS COMMUNITY RIGHT NOW IS BEING ASKED TO REPLACE THAT.

THE AMERICAN RESCUE PLAN, THAT WILL TAKE THE BUSINESS COMMUNITY THE NEXT THREE YEARS.

>> TOM, GREAT TO TALK TO YOU.

THANK YOU FOR YOUR TIME.

>> ANY TIME.

THANK YOU FOR ASKING.

>>> WE ALSO WANTED TO CHECK IN WITH OUR BUDGET AND FINANCE WRITER WHO HAS REPORTED ON MORE THAN A DOZEN STATE BUDGETS OVER THE YEARS.

I ASKED JOHN WHAT REALLY STOOD OUT TO HIM IN THE MURPHY SPENDING PLAN.

>> JUST THE RAW NUMBERS.

IT WASN'T TOO LONG AGO NEW JERSEY WAS SPENDINGLESS THAN $40 BILLION ANNUALLY AND NOW SPENDING IS GOING TB CLOSE TO $49 BILLION, ALMOST $50 BILLION.

THAT'S BEFORE WE FACTOR IN FEDERAL DOLLARS.

SO JUST SIGNIFICANT AMOUNT OF SPENDING.

THEN SORT OF WHERE THAT SPENDING IS.

REALLY BIG NUMBER WHEN IS IT COMES TO FORMULA, SO THIS PUSH TO RAMP UP FUNDING FOR OUR PUBLIC SCHOOLS.

$7 BILLION ALMOST FOR THE PENSION CONTRIBUTION, TWO YEARS IN A ROW.

THOSE ARE BIG NUMBERS WE HAVEN'T SEEN IN A LONG TIME ON PENSION FUNDING.

AND THEN A SURPLUS OF OVER $4 BILLION.

IT'S A MEAT AND POTATOES ISSUE THAT DOESN'T GET A LOT OF ATTENTION, BUT ANY TIME THE STATE HAS A REVENUE TUMBLE, IT FALLS ON THE BACK OF THE SURPLUS IF THE SURPLUS ISN'T ROBUST, THERE HAS TO BE CUTS AND SOME YEARS THAT'S INVOLVED IN PROPERTY TAX RELIEF.

SO MAINTAINING THAT SURPLUS IS AN IMPORTANT THING AND HAVING THAT OVER $4 BILLION IS A PRETTY BIG NUMBER AS WELL.

>> FOR FULL COVERAGE OF THE GOVERNOR'S BUDGET PROPOSAL AND TO WATCH OUR SPECIAL BUDGET BROADCAST, HEAD TO THE NJ SPOTLIGHT NEWS YOUTUBE CHANNEL.

>>> IN OTHER NEWS THIS WEEK, AS RUSSIA CONTINUES ITS ATTACK ON UKRAINE, NUMEROUS COMPANIES HAVE PULLED OUT OF THE COUNTRY.

GOLDMAN SACHS WAS THE FIRST TO SAY ITS LEAVING.

BIG TECH FIRMS INCLUDING APLE AND GOOGLE ALONG WITH PAYMENT COMPANIES VISA AND MASTERCARD HAVE CUT TIES.

SOME CONSUMER COMPANIES HAVE DONE THE SAME, INCLUDING McDONALD'S AND STARBUCKS.

THE U.S. IS HOPEFUL THAT ECONOMIC SANCTIONS AGAINST RUSSIA WILL CRIPPLE THE NATION'S ECONOMY.

THE LATEST MOVE THIS WEEK, PRESIDENT BIDEN ANNOUNCED A BAN ON OIL IMPORTS FROM RUSSIA.

NOW THE U.S. ONLY GETS ABOUT 3% OF ITS OIL FROM RUSSIA, BUT THE ACTION LED TO HIGHER GAS PRICES HERE AT HOME.

I TALKED TO NEW JERSEY CONGRESSMAN JOSH ABOUT WHY HE SUPPORTS THE BAN ON OIL AND HOW ECONOMIC SANCTIONS WILL KEEP THE PRESSURE ON RUSSIAN LEADER VLADIMIR PUTIN.

>> CONGRESSMAN, THANK YOU FOR JOINING US ONCE AGAIN ON "NJ BUSINESS BEAT."

I WANT TO TALK TO YOU ABOUT THE BAN ON RUSSIAN OIL.

THIS IS SOMETHING YOU WERE A PROPONENT OF AND WE SAW THE ACTION DONE THIS PAST WEEK WHY DO YOU THINK THIS MOVE IS NECESSARY NOW?

>> I THINK IT'S CRITICALLY IMPORTANT GIVEN THE ATROCITIES PUTIN IS COMMITTING IN THE UKRAINE AGAINST ALL THOSE INNOCENT FAMILIES AND CHILDREN, BOMBING HUMANITARIAN EXITS.

I THINK WE NEED TO DO EVERYTHING POSSIBLE, OBVIOUSLY, WE HAVE TAKEN AGGRESSIVE MEASURES ON THE SANCTIONS FRONT.

AND SUPPLYING MILITARY SUPPLIES, BUT WE HAVE TO HIT PUTIN WHERE IT HURTS, WHERE IT COUNTS AND THAT IS OIL.

AND SO WE STARTED WORKING LAST WEEK ON BIPARTISAN LEGISLATION.

IT'S SUPPORTED HERE WITH BRIAN FITZPATRICK WORKING CLOSELY WITH SENATOR MANCHIN AND INTRODUCED LEGISLATION WITH VAST SUPPORT TO STOP IMPORTING RUSSIAN OIL INTO THE UNITED STATES IMMEDIATELY.

I WAS GLAD TO SEE THE PRESIDENT TAKE ACTION.

>> CONGRESSMAN, THERE'S ALWAYS A LOT OF SUPPORT IN WASHINGTON.

WHAT ABOUT YOUR CONSTITUENTS WHO ARE FACING RISING GAS PRICES?

HOW DO YOU RESPOND TO SOME OF THEIR CONCERNS?

>> I'M HEARING OVERWHELMINGLY FROM FOLKS BACK HOME.

I SAW A POLL YESTERDAY THAT 80% OF THE COUNTRY BELIEVES WE SHOULD STOP PUTIN IN HIS TRACKS WHEN IT COMES TO OIL.

THERE'S NO REASON WE SHOULD BE FUNDING THESE ATROCITIES.

BUT I THINK WE NEED TO DO EVERYTHING WE CAN TO OUR ENERGY NEEDS AT HOME.

I THUS WE NEED TO TAP ALL OUR DOMESTIC ENERGY SUPPLIES.

WE'RE DOING THAT.

THE PRESIDENT TOOK ACTION ON STRATEGIC RESERVE 60 MILLION MORE BARRELS OF OIL THERE TO HELP STABILIZE ENERGY PRICES.

FOR 18 WEEKS STRAIGHT, WE HAVE BEEN MORE BACK ONLINE DOMESTICALLY.

ACTIVE RIGS ARE UP 60% SINCE THE PRESIDENT'S BEEN IN OFFICE.

THERE ARE 9,000 UNUSED PERMITS HERE IN THE UNITED STATES.

DOMESTIC ENERGY PRODUCERS ARE TAKING ACTION.

WE NEED TO FOCUS BOTH ON SHORT-TERM NEEDS AND MOVING TOWARD ALTERNATIVE ENERGY IN THE LONG RUN.

WE NEED TO DO BOTH AND SO I THINK THAT'S WHAT WE MUST DO.

THAT WILL HELP STABILIZE PRICES AND GET THE PRICE OF GAS DOWN.

BUT IN THE MEANTIME, WE CAN'T ALLOW US TO KEEP FUNDING THESE ATROCITIES.

WE HAVE TO STOP HIM IN HIS TRACKS HERE.

>> CONGRESSMAN, WHEN YOU SAY WE HAVE TO DO EVERYTHING WE CAN, ARE THERE OTHER POTENTIAL OPTIONS BEING DISCUSSED IN WASHINGTON BEYOND WHAT WE HAVE ALREADY HEARD?

>> OUR ECONOMIC SANCTIONS ARE HAVING A SIGNIFICANT IMPACT ON THEIR ECONOMY AND ON RUSSIANS' ATTITUDE TOWARDS PUTIN AND HIS AGGRESSION.

AND YOU SEE THE NATO ALLIES COORDINATION IS AT HISTORIC LEVELS.

AND I REALLY GIVE THE ADMINISTRATION CREDIT FOR BRINGING ALL THE ALLIES TOGETHER AND MAKING IT VERY CLEAR THAT NO ONE IS GOING TO ACCEPT THIS.

YOU HAVE SEEN COUNTRIES LIKE SWITZERLAND, WHO NORMALLY STANDS ON THE SIDELINES, COME FORWARD AND GET INVOLVED.

SO I THINK BOTH ON THE ENERGY FRONT WORKING WITH OUR ALLIES AND CANADA AND MEXICO IN TERMS OF RESERVES AND WHAT WE NEED AND MAKING SURE WE TAKE ACTION ON THE ECONOMIC SIDE AND CONTINUE DOING THAT, THE PRESSURE WILL ONLY INCREASE.

>> CONGRESSMAN, THANK YOU FOR YOUR TIME TODAY.

I REALLY APPRECIATE IT.

>> THANK YOU SO MUCH FOR HAVING ME.

>>> GAS PRICES IN NEW JERSEY AND ACROSS THE COUNTRY HIT RECORDS THIS WEEK.

FIRST, GAS PRICES HIT $4 A GALLON.

THEN THEY STARTED CLIMBING FROM THERE.

HARD TO IMAGINE A YEAR AGO GAS PRICES WERE UNDER $3 A GALLON IN NEW JERSEY.

I TALKED WITH AAA ABOUT WHERE PRICES ARE HEADING FROM HERE.

>> WE HAVE SEEN NO LET HAD UP TO RISING GAS PRICES.

I'M SURE YOU'RE BEING ASKED HOW HIGH CAN PRICES GO.

CAN WE EVEN ANSWER THAT QUESTION?

>> UNFORTUNATELY, WE CANNOT.

NOT AT THIS TIME.

AS LONG AS THE PRICE OF CRUDE OIL REMAINS ELEVATED, SLOX ALL OF THE TENSIONS REMAIN GLOBALLY, WE ARE GOING TO CONTINUE TO SEE THE PRICE INCREASE AT THE PUMP.

>> CAN YOU EXPLAIN THE CONNECTION BETWEEN OIL PRICES AND GAS PRICES.

BECAUSE IT'S NOT DIRECT CONNECTION, BUT IT CERTAINLY DOES MATTER.

HOW DOES A RISE IN OIL ACTUALLY REFLECT WHAT IS GOING ON AT THE PUMP, WHAT OTHER FACTORS ARE AT PLAY WHEN WE TALK ABOUT HOW GAS IS PRICED?

>> ABOUT 40 TO 50% OF THE PRICE AT THE PUMP IS MADE UP BY CRUDE OIL.

SO WHEN WE SEE THESE LARGE FLUCTUATIONS IN THE PRICE OF CRUDE OIL, THERE'S A DIRECT CORRELATION TO THE PRICE AT THE PUMP.

AND THEN YOU ADD IN THE REFINING FEES AND THE MARKET DYNAMICS AND EVERYTHING LIKE THAT, IT ALL COMES INTO PLAY.

AND THAT'S WHAT IS DRIVING THOSE PRICES.

>> SO EVEN THOUGH THE U.S.

DOES NOT IMPORT A LOT OF OIL FROM RUSSIA PRIOR TO THE BAN, IT'S REALLY THE EFFECT OF HOW OIL IS BEING PRICED ON THE WORLD MARKETS.

>> ABSOLUTELY.

THE WORLD MARKET SETS THE STAGE.

SO WE'RE SEEING THESE DRASTIC INCREASES IN PRICES, THESE THINGS THAT ARE HAPPENING ON THE OTHER SIDE OF THE WORLD ARE REALLY STARTING TO HIT US HERE AT HOME.

>> IT'S NOT JUST WHAT YOU AND I PAY WHEN WE FILL OUR GAS TANK.

WE'RE SEEING PRICES GO UP ACROSS THE BOARD.

PRICES ARE HIGHER FOR DIESEL.

WHAT ABOUT THINGS LIKE JET FUEL?

IS IT REALLY JUST GOING TO BE A SITUATION WHERE ALL PRICES ARE ELEVATED FOR A PERIOD OF TIME?

>> ALL OF THOSE THINGS HAVE A RIM EFFECT ACROSS THE BOARD.

WE'RE GOING TO SEE FUEL SURCHARGES PUT INTO PLACE, SIMILAR TO WHAT WE SAW IN 2008.

WE'RE GOING TO SEE POSSIBLY THE INCREASE OF FEES AND THINGS ON HOUSEHOLD GOODS, ON TRANSPORTATION, ON SHIPPING COSTS AND EVEN ON TRAVEL.

SO WE'RE EXPECTING THIS TO HAVE A FAR REACHING, WIDE SWEEPING INCREASE ACROSS THE BOARD.

>> AND THE SURVEY RELEASED BY AAA HAS FOUND THAT ALREADY DRIVERS AND CONSUMERS ARE THINKING ABOUT USING GAS DIFFERENTLY IN TERMS OF HOW MUCH THEY DRIVE.

TELL ME ABOUT SOME OF OF THE SURVEY FINDINGS.

>> WE FOUND THAT OVER HALF OF THOSE SURVEYED, ALMOST 60% SAID THEY WOULD MAKE CHANGES TO THEIR DRIVING HABITS AND THEIR LIFESTYLE ONCE WE REACHED THE $4 PER GLAN POINT.

GALLON POINT.

THOSE CHANGES ARE CONSOLIDATING TRIPS, DRIVING LESS, STARRING TO CAR POOL OR MAKING CHANGES IN THEIR OTHER ASPECTS OF LIFE.

THAT MIGHT MEAN SHOPPING LESS OR DINING OUT LESS.

SO PEOPLE ARE LOOKING TO CURB SOME OF THEIR SPENDING IN ORDER TO MAKE UP FOR THE HIGH PRICE OF FUEL.

>> AND AT THIS TIME, IT'S HAPPENING AT A TIME WHERE WE HAVE OTHER DIFFICULTIES WE JUST SAW INFLATION NUMBERS HITTING LEVELS WE HAVEN'T SEEN IN DECADES.

SO IT SEEMS THAT THE PAIN AT THE PUMP IS HITTING PEOPLE EVEN HARDER THIS TIME.

>> AND THIS IS THE TIME OF YEAR WE SEE THE SWITCHOVER TO THE SUMMER BLEND FUELS, WHICH IS A MORE EXPENSIVE BLEND OF FUEL.

THAT USUALLY RISES THE PRICE OF GAS BY SEVERAL CENTS.

>> GOOD TO TALK TO YOU.

THANK YOU.

>> THANK YOU.

>>> AND THAT WRAP UPS OUR SHOW FOR THIS WEEK.

JOIN US NEXT WEEK WHERE WE TAKE A LOCK AT HOW MUCH LONGER IT WILL TAKE FOR THE LEGAL MARIJUANA INDUSTRY TO GET STARTED AS APPLICATIONS FOR DISPENSARY LICENSES OPEN.

THANK YOU FOR WATCHING "NJ BUSINESS BEAT."

I'M RHONDA SCHAFFLER.

YOU ENJOY YOUR WEEKEND.

>> FUNDING FOR "NJ BUSINESS BEAT" PROVIDED BY, NJB, ACRES, HAS BEEN FOCUSED ON THE ADVANCEMENT AND SUCCESS OF OUR MEMBERS.

EMPLOYEES REPRESENTING ALL INDUSTRIES, WORKING TOGETHER TO HELP BUILD A MORE PROSPEROUS NEW JERSEY THROUGH ADVOCACY, SUPPORT, NETWORKING AND BENEFITS.

NJ SCHOOL OF BUSINESS, A GAME-CHANGING FORCE OFFERING PROGRAMS LIKE FINANCIAL TECHNOLOGY OR BUSINESS ANALYTICS AND DATA SCIENCE.

STEPS AWAY FROM THE EXCHANGE PLACE IN JERSEY CITY AND MINUTES FROM WALL STREET.

LEARN MORE ONLINE.

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

LOCAL 102, LIGHTING THE PATH, LEADING THE WAY, VISIT