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October 15, 2010 No matter if it’s in business or your personal life, when money is tight, you will do whatever is necessary to make ends meet. This is certainly the case with the State of New Jersey, which after more than a decade of budget madness and fiscal disorder, has finally begun to put some effort into balancing our books. To give you a fitting example of this, consider a recent meeting I was at with Labor Commissioner Hal Wirths. Commissioner Wirths explained how part of the Department of Labor’s (DoL) mission is to go after those who falsely file and collect Unemployment Insurance (UI) benefits. Once caught, the Commissioner plans on throwing the book at violators and re-collecting those funds that were fraudulently paid out. What would make the Commissioner and the Administration work so hard to ferret out UI cheats? Well, after years of mismanagement, the UI fund is broke. In fact, the system has been raided to the tune of $4.7 BILLION by state officials over the years. As you’ll recall, earlier this year the Governor was faced with the unpleasant task of having to slightly hike payroll taxes to keep the fund solvent or let the system fail. Thanks in part to the small business community, however, the Governor was able to make enough changes to avoid a much larger hike of nearly $400 per employee annually. You can read more about this in a previous edition of the Road Warrior by clicking HERE Thankfully the tax hike was held at $130 per employee and a crisis was avoided. However, DoL is well aware that there’s a lot of fraud out there and are now redoubling efforts to police the system. And with huge budget shortfalls, who can blame them? After all, is it right for someone to cheat the taxpayers and game the system for their own benefit while you toil away at your shop? I have continually lectured all NJGCA members on the need to be both professional and honorable in all aspects of your business. While I truly believe that most of you hire workers under honest circumstances, it’s not uncommon for many in our trade to hire workers that are collecting unemployment benefits and pay them under the table. Sadly this is a common practice, but it’s wrong just the same. Trenton isn’t playing games. With DoL stepping up enforcement on UI violators, it is important that you are fully aware of the consequences and how it may impact your business. More importantly, however, is how it will affect the reputation of other small business owners and your fellow station owners. Bottom Line: Don’t be a dope and give Trenton the chance to fine and prosecute you!! It was announced this week that the Obama Administration is taking new steps in lowering the nation’s dependence on foreign oil. In abolishing a 30 year old cap which limited the proportion of ethanol used in ordinary gasoline at 10%, gasoline retailers will soon be able to sell motor fuel containing 15% ethanol blend. While details are still sketchy and no timetable has been put in place for E15’s introduction, officials state they believe the new blend can be safely used on vehicles from model year 2007 forward. What that will mean for cars built before 2007 is yet to be seen, though the EPA is still testing vehicles built from 2001-2006 to see if they are safe to use the new E15 blend. What will this mean for your service station? At this point, we don’t have a clue. We’ve got a long way to go before we see E15 at your shop, but this is an important first step. Ultimately regulators have to figure it all out first, so I can’t tell you if you’ll need special stickers on your pumps or what new rules may be enforced. Nevertheless, we are monitoring this as it unfolds and will report as more information becomes available. As you know, NJGCA has long been a supporter of regulatory reform. When government agencies become overzealous in regulating industry, businesses suffer and jobs are put at risk. It is for that reason that we have strongly supported Assemblyman Chivukula’s and Assemblywoman Alison McHose’s Regulatory Flex expansion proposal. Under this legislation, state agencies would have to provide a cost/benefit analysis before implementing rules to determine if small business owners would survive their enactment. While we are fortunate to have support in the Legislature to push back against unwarranted regulations, many other states are going the opposite way – and with disastrous affect. In 2007 the California Air Resources Board (CARB) – a quasi-independent state agency that mandates air pollution and related standards for automobiles and businesses – ordered that heavy diesel vehicles needed to be upgraded to cut air pollution. These upgrades were expensive, and many businesses spent a great deal of money to comply with their rulings. However, it was recently learned that the good people at CARB had OVER ESTIMATED their future diesel-related pollution calculations by a staggering 340%!! If that doesn’t make you sit up and pay attention to how bureaucrats meddle in things they don’t understand, nothing will. Sadly, whenever society grants overzealous administrators the power to dictate behavior and regulations, it’s always the average citizen and the business community that suffers. The Regulatory Flex bill that we are supporting in the legislature will prevent the California disaster from happening in New Jersey. SO PAY ATTENTION!! Let CARB’s miscalculation be a vivid example of how seemingly trivial organizations may have a negative affect on you and harm your small business. Thanks for reading and see you next week!
Regards,
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D.C. BELTWAY BULLETIN National Gas Tax Hike (AND MILEAGE USER TAX) Coming?! Recently a panel co-chaired by former U.S. Department of Transportation Secretaries Norm Mineta and Samuel Skinner has recommended a National Gas Tax Hike and that a user fee be implemented to cover future transportation and infrastructure projects through a 'mileage user tax'. While President Obama has recently called for $50 billion for future projects, the panel recommends hiking the current 18.4 cent per gallon gasoline tax to cover the cost. Though the President has not acted on the recommendations, the tax has not been adjusted since 1993 and many supporters believe that a hike is long overdue. Furthermore, the panel also recommends the implementation of a ‘mileage user tax’ – which would essentially charge you a fee for each mile you drive – to help offset the drop in gas tax revenues. You can read more on this issue by clicking HERE and HERE OUR TAKE: Any increase in the national gasoline tax will harm small businesses, motorists and the broader economy. While infrastructure repair projects are important, NJGCA believes any tax hike will only prolong the current economic recession. Furthermore, gas tax revenues have dropped as new engine technologies have created more efficient vehicles that get better mileage. Implementing a ‘mileage user tax’ will essentially punish consumers who have made a conscious decision to purchase these more fuel efficient vehicles and the commuters who depend on them.
NEW TRAINING CLASSES ADDED!!
CALL FOR FUTURE CLASS SCHEDULE INFORMATION Special ASE Level 1 Preparation Course for the November 2010 Testing: Class Instruction will be given as follows: Seven (7) hours of instruction on: Understanding the ASE composite Vehicle, General Power Train Diagnosis, Computerized Power Train Controls Diagnosis – Including: OBDII, Ignition System Diagnosis, Fuel Systems and Air Induction Systems Diagnosis, Emission Control Systems Diagnosis, and Inspection Maintenance Failure Diagnosis. NJGCA will provide a Course Manual – Power Point Presentation – Sample Testing.
Class Date: Monday – October 25th and Wednesday – October 27th TAKE ADVANTAGE OF OUR TRAINING CLASSES!
**To Register call Debbie Hill 973-376-0066 x 203 or debbie@njgca.org**
POLITICAL PARTICIPATON: THE NJGCA PAC
Ensuring our friends in the legislature are re-elected and advocating for our agenda in Trenton are of utmost importance to the agenda of NJGCA. It is for this reason that your Association has established the NJGCA PAC. For too long, the weight of funding our Political Action Committee, the arm of the Association responsible for political donations, has rested upon the shoulders of a few. This is not fair to them, and it is not fair to many of you who are relying on the benefits of good legislation being passed in Trenton. To truly understand the importance of fundraising for our allies, let’s look back upon the overwhelming successes of the last year: NJGCA successfully lobbied against BELOW COST SELLING. If approved, BELOW COST SELLING would have cost each of you thousands of dollars and put many of you out of businesses. NJGCA leaned on some of our friends in the Assembly and literally had the bill pulled off the floor on the day it was scheduled to be voted on. Our friends in the Legislature helped us get this accomplished. NJGCA made history and led the charge to pass the most comprehensive protection of franchisees in decades with FIRST RIGHT OF REFUSAL legislation. FIRST RIGHT OF REFUSAL passed only because NJGCA and dealers throughout the state were able to lean on several friends in the Assembly and the Senate. NJGCA has been rallying support for RIGHT TO REPAIR over the last two years among key legislators. This would end the practice of car manufacturers denying you the codes necessary to complete the repairs you make on your customers cars. Every state has tried to pass RIGHT TO REPAIR and no state has even been able to get the legislation out of committee. Because of our friends in the Legislature, NJGCA has been successful in getting this bill passed by the Assembly and now awaits a vote in the Senate. I am asking some of you as individuals to make a contribution and attend a fundraising event sponsored by one of our friends in the Assembly. However, we will not be able to host events for all of our friends, so the NJGCA PAC will have to make contributions. You will be receiving letters soon from the NJGCA PAC asking you to make contributions. If every member contributes just $100.00 we will be able to provide the help necessary to ensure victory for our allies.
PLEASE SEND YOUR CONTRIBUTIONS TO: I understand that times are tough for all NJGCA members, but this is just as important as any battle we have fought in the past. We have made great progress in Trenton. I hope that you will answer the call.
NEWS AROUND THE STATE
10/14/2010:
10/13/2010:
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