Ciattarelli talks debate, energy, small business in NJ race

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The basics:

• Ciattarelli reflects on first gubernatorial debate with Mikie Sherrill
• Plans to exit RGGI to reduce energy costs for residents, businesses
• Opposes independent contractor rule changes affecting NJ workers
• Proposes tax breaks, reforms to support small businesses

With just over a month to go on the campaign trail, the gubernatorial race between Republican candidate Jack Ciattarelli and Democratic hopeful Mikie Sherrill is rapidly ratcheting up.

In fact, this past week, things came to a head in several ways.

As NJBIZ reported, the first debate took place on Sept. 22, which resulted in several heated and terse exchanges between the candidates. Then, just three days later, a new poll showing the race deadlocked sent shockwaves throughout the state – and beyond. That same day, a major dustup ensued pertaining to the release of Sherrill’s military records, which were erroneously and completely unredacted, and a cheating scandal during her time at the Naval Academy. The Sherrill campaign calls it illegal weaponization of her records. She denies any involvement in the major 1994 scandal, but says she was not allowed to walk in graduation because she did not turn in some of her classmates. You can read more about that situation here and here. And statements from the candidates here and here.

That sets the scene where things are at as we head down the home stretch here in the Garden State.

Just after the debate – and before the new polling and dustup – NJBIZ caught up with Ciattarelli to discuss the campaign, the debate, the top issues and more. This is part one of that discussion.

‘RGGI has been a failure’

NJBIZ: Jack, thanks for taking a few minutes. Let me start with the debate. What was your main takeaway/assessment of how that went?

Ciattarelli: I thought it went really well. And the feedback afterwards seems to confirm that it did go well for “Ciattarelli for Governor.” We were really specific – as we always are – about how to fix some of our most pressing problems. The other side was not specific, with the exception of one thing, which has been slapped down as not feasible. And that’s her declaration of a state of emergency to freeze electricity rates, at already too high a rate.

And she failed to answer a whole bunch of other questions, in which we pointed out repeatedly. So, I’m very pleased with the way it went – and looking forward to the next one.

On the dais

The first debate of New Jersey’s 2025 gubernatorial race took place at Rider University Alumni Gymnasium, drawing an estimated 1,600 attendees. Read more here about the matchup.

NJBIZ: After the debate I asked you about the energy issue. What would you say to voters – people who are maybe just tuning into this race – about the biggest difference between what your opponent’s proposing and what you’re proposing, to help ease the pain on ratepayers?

Ciattarelli: Well, she’s looking to declare a state of emergency – and then freeze rates at a very, very high rate. We don’t want to freeze them at a high rate. We want to lower them. And so, what can be done – what is feasible, and what is legitimate – is an executive order on day one that pulls us out of the Regional Greenhouse Gas Initiative, which would lower, aggregately speaking, rates by about a half a billion dollars for homeowners, tenants and businesses across the state.

And I don’t think that’s environmentally irresponsible. RGGI has been a failure. It’s a carbon tax policy. The air’s no cleaner. Electricity’s no less expensive. And we shouldn’t have ratepayer dollars going to other states. So, like other policy failures, in my opinion, it needs to be reversed.”

1099s vs. W2s

NJBIZ: Another major issue this summer, Jack, that I’m sure you’re well aware of and heard about on the campaign trail – is this proposed rule change with the [state] Labor Department about independent contractors. Where do you stand on that issue? And if it is instituted before you were to take office, would that be something you would reverse as governor?

Ciattarelli: Listen, if it’s codified by the Legislature, I can’t reverse it by executive order. I’ll certainly take advantage of whatever wiggle room it does leave me. Because the fact of the matter is that this is bad public policy. I believe an economy is dynamic when there’s balance. And balance, to me, is a number of different things, not only in taxes and regulations – but also 1099s versus W2s; not converting every 1099 to a W2.

So, we need balance: 1099 and W2; union and non-union. And to convert everybody like this, my business would not survive today if I was still in business, if this bill were to go through. The old test for CPAs was, if you can get up in the morning and decide whether or not you work – and where you work – you’re a contractor, not an employee. And so, [I] totally oppose this bill. I’ve been very clear about that. This has been another one of those issues that my opponent has not given a direct answer on.

NJBIZ: Jack, you’ve been everywhere around the state. What are the most common refrains, the top things you are hearing about from every New Jerseyans when you’re out there?

Ciattarelli: If it’s your average everyday citizen, who is not a business owner – it’s affordability. They talk about their property taxes, and they’re talking about their electric bill right now. If you’re a business owner, and it doesn’t really matter what size – all people talk about is how difficult it is to do business in the state from a tax standpoint and from a permitting and regulatory standpoint.

And there again, we need balance. I really believe these state agencies under Phil Murphy have become a police state and a collection agency. They’re supposed to be a partner. The answer shouldn’t always be – no. And they should be returning calls and helping businesses – not punishing them.

Been there, done that

NJBIZ: What is your message to the small business community about a Ciattarelli administration?

Ciattarelli: That you’ll have a governor who’s been there and done that. Three generations of Ciattarelli’s have been small business owners. And I’ve got some very specific plans to make it better to do business here in New Jersey, so you can grow your small business. Examples of that are the first $100,000 of business income being tax-free; the first $100,000 of payroll being exempt from employer payroll taxes; and making the gain on the sale of a family-owned business or sole proprietorship tax-free.

We want to spark entrepreneurship here.

Please stay tuned for the rest of the discussion with Ciattarelli coming up this week in NJBIZ.