NJSBDC at William Paterson University
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The Small Business Voice Volume 4, Issue 2 August, 2008 STATE BUDGET IMPACTS ON SMALL BUSINESS: NJSBDC successful in restoring funding The State Legislature and Governor Business Development Centers (NJSBDC) Thirty-one State Legislators, many of enacted the $32.86 billion State Budget network had its funding level reduced by whom are members of the respective (FY 2008-2009) by the June 30 constitu - half. The Legislature’s stepped-up efforts Assembly and Senate budget committees tional deadline and appropriated $600 averted total NJSBDC program de- as well as those who hold key leadership million less than last year's fiscal budget. funding that the Governor had initially posts, sponsored and co-sponsored budget According to the Governor's office, "this is proposed. NJSBDC has been an official resolutions to restore full funding of $1 only the sixth time since 1951 the state partner of the State’s commerce agency for million to the NJSBDC (see list below). budget has spent fewer actual dollars than at least 20 years with vast infrastructure to However, $500,000 in funding restoration in the previous year. It is far and away the deliver significant services to the small was agreed to during negotiations between largest actual dollar, year-to-year reduction business sector. This 30-year non-profit legislative leadership and the Governor, his in state history." The State's fiscal program, which provides comprehensive team and the State Treasurer. environment and debt situation catalyzed services to entrepreneurs and small "A 50 percent cut to our program will increased cooperation between the business owners, results in substantial prove to be a real challenge to our legislative and executive branch on curbing economic impact to the State’s economy. network," Brenda B. Hopper, NJSBDC State Government spending, which This network of experts, with in-depth state director stated. "But, we are grateful included $2.9 billion in cuts. This year's private sector experience from various to the Legislature in taking the lead to budget successfully reduced the reliance on industry sectors and business ownership, restore our state funding and the one-time revenue sources by 90 percent. serves almost 22,000 small businesses and Governor's action to meet them half-way." Many programs received State-funding start-ups annually through one-to-one "It's unfortunate the state didn't fund reductions or funding was entirely counseling, training, loan packaging and them at a higher level," James Kocsi, Small eliminated. The New Jersey Small other vital technical assistance. (Continued on page 3) NJSBDC Network Extends Its Thanks to Small Business Clients, Partners, and Supporters As budget hearings occurred and the and the Governor's office at different director added. "Our grassroots support budget document was being formulated periods during the budget cycle. They was so wide and broad. It was in Trenton (March-June), clients, also wrote letters-to-the editor to inform democracy in action and we were all partners and other supporters learned of members of the public about the effects quite encouraged by it." the fact that the NJSBDC stood to lose on job creation and retention if program NJSBDC's federal funding partner, its entire State funding. Many NJSBDC funding was not restored. the Small Business Administration supporters and beneficiaries of the "We were heartened to know about (SBA), through James Kocsi, New Jersey network's initiatives took a stand and let the depth of support we had from our (Continued on page 2) the Governor and his office and State state and regional partners as well as our Legislators know of their sentiments small business clients," said Brenda In this issue: about the proposed Governor's de- Hopper, NJSBDC state director. "They NJSBDC Annual Procurement funding plan. They argued passionately certainly weighed in on this important EXPO . 6 for NJSBDC funding restoration. matter at the right time." Legislative Update . 8 More than 2,000 e-mails, letters, "We tried to let as many people New NJSBDC Staff . 10 and phone calls from NJSBDC clients, know as possible through regular partners, and members of other business communications and updates," Deborah From The Lab to The groups were generated to state legislators Smarth, NJSBDC associate state Marketplace . 14 1 NJSBDC Network Extends Its Thanks to Small Business Clients, Partners, and Supporters (Continued from page 1) district office director, and Michael to state elected officials; their board also business owners around the State. Pappas, regional administrator for passed a resolution calling for funding In addition to the support of various Region II, also assisted in communi - restoration for NJSBDC. The chamber regional SBDCs' partners statewide, cating key concerns and facts regarding is a pro-active partner of the NJSBDC several Boards of Freeholders took the impact of program state funding at the College of New Jersey. NJSBDC action, also. Freeholder chairman Tomas losses on federal funding support levels. at Raritan Valley Community College J. Padilla of the Bergen County Board of They raised the consciousness of advisory board member Gail Rosen, Chosen Freeholders wrote a letter to the potential decision-makers on these CPA, was instrumental in communi - chairs of the legislative budget significant issues. cating and further facilitating support committees and copied the Governor. Two regional and state partners of from legislators representing Somerset Freeholder director Sonia Rosado of the NJSBDC took the first steps, also. Both County. In addition, the Urban League Passaic County Board of Chosen the Commerce and Industry Association of Hudson County and Rising Tide Freeholders wrote a letter to Governor of New Jersey (CIANJ) and the New Capital, Inc. that partner with the Corzine as well as the two budget Jersey Technology Council (NJTC) NJSBDC at New Jersey City University committee chairs, Senator Barbara issued public statements and their added their voices to the campaign to Buono and Assemblyman Louis efforts were noted in The Press of save NJSBDC funding. Greenwald. Their board also passed a Atlantic City and other newspapers. The New Jersey District Export resolution calling for full funding The Board of Directors of CIANJ Council (NJDEC) sent a letter to restoration. David B. Crabiel, approved a resolution calling on the legislative budget committee chairs. freeholder director of the Middlesex Governor and Legislature to restore full They also alerted their members for Board of Chosen Freeholders, initiated funding to NJSBDC. Both Richard further action, knowing about the and helped get a county board Goldberg of the CIANJ board of services the NJSBDC international resolution passed to restore full funding directors and CIANJ President John trade specialty program provides to for NJSBDC. Galandak announced their actions at a small businesses, which want to enter So many more individuals and May legislative dinner held at the the import/export markets. groups did so much for the cause of Sheraton Meadowlands Hotel in Clients and supporters like Charles small business owners during this Rutherford. Evans and Jerry Silberman of Corporate budget process. To all of you who chose Maxine Ballen, president and chief Turnaround and Mike Moran of Moran to become involved with the process, executive officer of NJTC, also offered Media Group in the Bergen County the NJSBDC network thanks you and her council membership's support along region, also did their part to broadcast will not forget your strong actions on with Ethan Hasbrouck, NJTC director their views on the matter, emphasizing our behalf and the small business of government affairs. Their members the impact that NJSBDC has on small owners of New Jersey whom we serve. were alerted to the news, in view of the council's strong partnership with NJSBDC's technology commercial - THANK YOU TO ization program and the assistance to NJSBDC SMALL BUSINESS GROWTH SUCCESS science-technology firms provided by the NJSBDC network. In fact, at AWARDS LUNCHEON CO-SPONSORS: NJTC's 2008 annual meeting at the Forstage Country Club on July 17, Ballen publicly stated that the council was pleased to learn of the partial reinstatement of state funding for NJSBDC agreed to by the Legislature and Governor. The Mercer Chamber of Commerce, headed by Michele Siekerka, pro-actively participated in the campaign by writing letters to the editor and having their members send letters 2 STATE BUDGET IMPACTS ON SMALL BUSINESS: NJSBDC successful in restoring funding (Continued from page 1) Business Administration New Jersey "While we won't have the same level of Members of the Assembly Budget district office director, said. "A 50 percent resources to invest in our direct services to Committee: cut by the state is quite severe, and they are small business owners and entrepreneurs, it Assemblyman Joseph Cryan, Assemblyman going to have to make some cuts in their could have been a lot worse had half of Louis Greenwald (Chair), Assemblyman services, without a doubt." NJSBDC's funding not been restored," Gordon Johnson, Assemblywoman Nellie Since the program is a federal-state- Deborah Smarth, NJSBDC associate state Pou, Assemblywoman Joan Quigley, educational partnership, the NJSBDC director, commented. "It's certainly going Assemblyman Gary Schaer (Vice-Chair), and network leverages federal, state, and other to have a real impact on the number of Assemblyman Joseph Vas. sources of funding to maximize small business owners we can get to, and that in Members of the Senate Budget & business resources. Hosts of the regional turn we expect, will impact on overall Appropriations Committee: centers located throughout the State also economic impact outcomes for the State." Senator Sandra Cunningham, Senator Teresa contribute to the program. If the The Legislature had made great strides M. Ruiz, Senator Paul A. Sarlo (Vice- Legislature had not as aggressively acted to over the past four fiscal years in doubling Chair), Senator Brian P.