Legislation, Mulshine asserted, has been the problem all along. "We've been overtaxed and overregulated in this state," he said. Mulshine asserted that former Gov. James McGreevy's legislation against corporations and millionaire's tax helped turn New Jersey from a state seen as a low-cost alternative to New York City and Philadelphia into a state viewed as unfriendly to business. In addition, he contended, the state's policies to put areas such as the Highlands and Pinelands off limits to development curtailed necessary growth and made it more difficult to develop affordable housing.

The panel saw no quick fixes on the horizon. "There is no silver bullet to cure our problems," Hughes said. "We have to recognize that we have these problems and make an effort to be more business friendly."

The sore subject of toll increases was raised again when Lesniak mentioned that the state does, in fact, intend to raise tolls--though not by 800% as was previously suggested--to pay for bridge and road repairs and the proposed second tunnel--the Trans Hudson Express--to New York City, a project Lesniak believes will have an enormous economic impact on New Jersey because it will stimulate development around the state's train stations. Mulshine countered the toll hike proposal with the suggestion that raising the gas tax slightly will be a more efficient way to raise capital for the state.

Higher gas prices may have a silver lining, as Hughes pointed out, because suddenly distance matters again and companies may reconsider moving to states that are cheaper, but also further away from New York City."Our geographic advantage will start to matter again, so there are some benefits to this new, painful reality," he said.