OCEAN CITY – The 1st District legislative team – Sen. Michael Testa and Assemblymen Antwan McClellan and Erik Simonsen – addressed the Cape May County Chamber of Commerce on Sept. 18, touching on electricity costs, legislation and tourism tax dollars.
Testa got the ball rolling by saying energy costs are giving residents sticker shock when they open their electricity bills. He said the energy industry, electricity in particular, has not been managed well. He said the state went from exporting 30% of its electricity to importing 40% of it.
The senator said the team ran for office calling the state’s Energy Master Plan the state’s “Energy Disaster Plan,” and were criticized for using hyperbole. He said it has now come true.
Testa, and later McClellan, addressed what they described as the largest manufacturing bill in the nation. McClellan said the bill contains $500 million in tax credits, which he said would promote living wage jobs for high school graduates.
Testa named several companies that left New Jersey, taking hundreds, and in one case, 1,500 jobs out of state. He said part of the reason companies leave the state is New Jersey’s 11.5% corporate tax.
McClellan referred to the “heat bill” in the Legislature, which he said would require a break for all workers once the temperature in the work area reaches 80 degrees. He said this would cause an undue obstacle for workers such as lifeguards, who work in the sun, often in temperatures over 80 degrees. The bill would require breaks and access to cool water, whether the worksite was indoors or out.
McClellan also mentioned the so-called “tip bill,” which according to Simonsen would require employers to pay their tipped workers $17 per hour, or minimum wage. The minimum wage in New Jersey was $15.49 as of 2025. Tipped workers can be paid $5.62 per hour.
At any rate, McClellan said, the increase would cause businesses to lose money. Simonsen said the increase would likely be passed along to visitors to Cape May County, where the hospitality and food and beverage industries provide many jobs.
Simonsen said another focus for the legislative team is trying to get more of the county’s tourism tax dollars returned to the county. Elected officials have complained for decades that Cape May County does not get its fair share of tax dollars back from Trenton, whereas some areas receive more than they pay to the state.
Simonsen said part of the problem is the formula used to calculate the return, which he said includes number of roads and population. He said the state uses Cape May County’s year-round population, which is only about a tenth of the summer population, in its calculations.
Contact the reporter, Christopher South, at csouth@cmcherald.com or call 609-886-8600, ext. 128.
