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Three Ring Circus
Feb. 8, 2010 PODIUM HUMOR * Assem. Jon Bramnick (R-Union) was named the Funniest Lawyer in New Jersey by the N. J. and Essex County Bar Associations- no joke. * Assem. Lou Greenwald (D-Camden) suffers from terminal logorrhea. * Legislative whips trip on leather * Legislature to take a close look at pornography.
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Three Ring Circus Archive
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Daily Muse: CRISIS V. OPPORTUNITY
Feb. 8, 2010 You know, this $11 billion or so deficit might in the long run be the best thing that ever happened to New Jersey. Can you imagine any other event that would bring Democrats and Republicans together to overhaul the state's pension and health benefit system? We're still waiting on details, but the Star Ledger reported Sunday that Gov. Chris Christie and legislative leaders are going to unveil sweeping new reforms, to include: 1) Requiring all current public employees to contribute at least 1.5 percent of their annual salaries toward their health benefits, and all future retirees to contribute at least 1.5 percent of their base pension to their health benefits. State employees were required to contribute at that rate beginning in 2007 under then-Gov. Jon Corzine, but many local governments and school districts do not require any health care contributions. The minimum threshold would be incorporated into upcoming local contracts, and governing bodies could try to negotiate it higher.2) Offering for voter approval a constitutional amendment forcing the state to fully fund its pension obligations in each year’s budget. While the requirement would not yet be in effect, a full payment for the upcoming budget would be about $2 billion out of a budget in the $28 billion range. Payments have dwindled to cope with budget woes, including Corzine eliminating this fiscal year’s contribution entirely. Corzine also allowed local governments last year to postpone part of their pension payments, arguing that covering the full cost would drive up property taxes in a recession. 3) Changing how pension payments are calculated, and who qualifies for a pension, for future employees at all levels of government. That includes repealing a 9 percent increase in benefits put in place in 2001, factoring in the highest five years of salary instead of three years to determine pension payouts, and banning part-time workers from participating in the pension system. State employees would have to work 35 hours a week and local employees 32 hours a week to qualify. 4) Enrolling future part-time employees at all levels of government in a defined-contribution plan instead, and raising the minimum annual pay to participate to $5,000 from $1,500. Current part-timers would continue in the pension system as long as they remain continuously employed. 5) Capping payouts for unused sick leave at $15,000 for all public employees, mirroring the limit already in place at the state level, and limiting stored vacation time. Retirement packages have sparked taxpayer outrage, including a 2008 deal to give a former Keansburg superintendent $740,000 in severance pay, including $184,586 for unused sick leave.
These changes go beyond even what the Legislature was considering in 2006 -- before then-Gov. Jon S. Corzine pulled the rug out from under the reforms by insisting that change needed to be done through contract negotiations. Which of course, was a cover. (Much like his insistence on early retirement, which apparently also didn't live up to its billing in terms of savings, according to the Star Ledger.) But if Christie and Democratic leaders are able to push through these reforms, over the likely objections of union leaders, they will not only go a long way toward fixing the state, but to ensure that public employees will be able to count on the pension they've been promised. Of course, the devil's in the details, and there are many battles to come. But you know what the difference is? It's a key player, who for the first time in years -- maybe decades -- will have a seat at the table. It's the taxpayer, who voted Corzine out of office in New Jersey. And whose cousins shocked the nation in Massachusetts. There's nothing that politicians can't accomplish when they have the people behind them. Even fix the state of New Jersey.
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Daily Muse: ONE MAN'S ART ...
Feb. 8, 2010
The Jersey Journal interviewed Jon Corzine and here is the most interesting part of the interview:
No, this is not evidence from the Beldini vs. Dwek corruption trial. It is a photograph of artwork from inside Corzine's Hoboken apartment. The artwork, according to the caption, is by Srdjan Loncar.
But seriously, a briefcase full of money? As art?
Even more ironic, given this quote from Corzine in the interview: “One of my greatest prides is that I don’t think, if you look at the record, there’s anyone in my administration that has fallen prey to taking cash for actions or using their office for monetary gain.”
Have to say, though, based on the photos, Corzine has a lovely apartment ...
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Daily Muse: JUST HOW BAD IS BAD?
Feb . 5, 2010
Gov. Chris Christie has decided to make an early budget speech to a joint session of the Legislature on Thursday, and we can only assume it is to outline just how bad the state's fiscal comdition is in.
The news from Trenton was particularly grim Thursday: David Rosen, the OLS budget officer, said next year's budget deficit could be as high as $11 billion.
According to newjerseynewsroom.com, here's where's Rosen said the $11 billion comes from:
Rosen said that as officials attempt to shape the 2010-11 budget, they can expect $1.1billion less in tax revenue because the 1-year millionaires income tax hike has expired, that overall tax revenue could be down $1 billion and that as much as $2.4 billion in federal economic stimulus aid that helped the 2009-10 budget will not be allocated a second time. Rosen also said that in forming the budget, officials face a public employee pension contribution of $2.5 billion to $3 billion, a $600 billion increase in school aid and a $1 billion increase in Homestead Rebate costs.
And Rosen said the news both short-term and long-term only seems to be getting worse. New Jersey revenues are unlikely to recover before 2014, and the current year deficit is $2.17 billion. That prompted some Democrats, such as Sen. Paul Sarlo, to "reconsider" whether the so-called millionaire's tax should be reinstated, according to the Star Ledger. So far, Christie has remained firm in taking both tax and other revenue hikes (like fees and tolls) off the table. But you know what was most troubling about this story? The only outlets that extensively covered Rosen's remarks were newjerseynewsroom.com and Bloomberg. Where are the state's newspapers? The Associated Press concentrated on partisan squabbling; the Ledger on the tax. Gannett left it to the AP, although it was discussed on staff blogs.But the overall budget crisis? The possibility of an $11 billion deficit? The impact that could have? Where is the press corps covering those stories? Just further proof of the impact that layoffs have had on New Jersey journalism.
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Daily Muse: TEA PARTIERS WANT TO RECALL MENENDEZ
Feb. 5, 2010 The Sussex County Tea Party organization wants to recall Sen. Robert Menerndez, and has gone to court seeking permission to begin gathering the 1.3 million sgnatures it needs, according to The Associated Press. The story says the recall effort was spurred by Menendez's support for health care reform and "his opposition to limiting government's control." The story also said that the group went to court because the Secretary of State failed to certify their petition. Since we didn't recall reading anything about Lt. Gov. Kim Guadagno, who also serves as Secretary of State, denying a petition, we did an Internet search. The only stories we could find were on the blog sites like Examiner.com and BigGovernment.com. And according to those reports, it was Gov. Corzine's Secretary of State, Nina Mitchell Wells, who refused to certify the petition on Jan. 11, before Christie took office. In a letter, according to BigGovernment.com, Wells said she was denying the petition, because in essence, the New Jersey Constitution was wrong to allow the recall of federal officials:
“It has been determined that the qualifications and election of a Member of the United States Senate is a matter of exclusive jurisdiction of federal authority and that neither the United States Constitution nor federal statute provide for a recall proceeding for a federally-elected official.
Therefore, in my capacity as the Chief Election Official of the State of New Jersey, I hereby determine that neither the Notice of Intention to Recall nor the proposed Petition can be accepted for filing or review.”
But in 1993, New Jersey voters approved such recalls through an amendment to the Constitution: 19:27A-2. Power to recall elected officials
2. Pursuant to Article I, paragraph 2b. of the New Jersey Constitution, the people of this State shall have the power to recall, after at least one year of service in the person's current term of office, any United States Senator or Representative elected from this State or any State or local elected official in the manner provided herein. L.1995,c.105,s.2. So how could Wells deny the petition? Recalls are purposely hard. To be successful, 25% of the registered voters need to sign a petition seeking a recall. But what's worse is to have a constitutional officer seem to ignore the law. On Jan. 14th, an appellate panel of Superior Court granted an expedited appeal of Wells' ruling, according to a copy of the order posted on the BigGovernment.com web site, which is likely what resulted in today's court filing. It will be interesting to see if Guadagno will agree with Wells' determination in subsequent hearings.
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Daily Muse: A LONG HOT SUMMER
Feb. 4, 2010
More proof, if any was needed, about the disastrous impact New Jersey’s tax policies has had on the state.
Proof that ought to shut down any attempt to extend the state’s so-called millionaire’s tax before it even start.
A new study says that New Jersey has lost $70 billion in wealth between 2004 and 2008, as wealthy residents fled the state for less taxing climes.
$70 billion.
Anybody think the Obama administration is listening?
From the Star Ledger:
Conducted by the Center on Wealth and Philanthropy at Boston College, the report found wealthy households in New Jersey were leaving for other states — mainly Florida, Pennsylvania and New York — at a faster rate than they were being replaced.
“The wealth is not being replaced,” said John Havens, who directed the study. “It’s above and beyond the general trend that is affecting the rest of the northeast.”
This was not always the case. The study – the first on interstate wealth migration in the country — noted the state actually saw an influx of $98 billion in the five years preceding 2004. The exodus of wealth, then, local experts and economists concluded, was a reaction to a series of changes in the state’s tax structure — including increases in the income, sales, property and “millionaire” taxes.
“This study makes it crystal clear that New Jersey’s tax policies are resulting in a significant decline in the state’s wealth,” said Dennis Bone, chairman of the New Jersey Chamber of Commerce and president of Verizon New Jersey.
It is not a coincidence that New Jersey’s revenues, particularly income tax revenues, have been falling off the cliff as well.
According to the report, approximately 302,780 households left New Jersey between 2004 and 2008. Now Gov. Corzine, throughout the campaign, liked to say that more people moved into New Jersey than left.
He was right: just under 323,350 households that moved into the state – 20,570 more than had left.
What he didn’t say, however, was that the average net worth of the departing households was about 70 percent higher, at $618,330, than those that arrived.
Taxing the rich at the expense of everyone else always sounds so good – especially when framed in terms of “Tax the rich so poor kids can get health care,” or “we can keep teachers in school,” or “we can keep tuition low.”
But as James Hughes, dean of the Edward J. Bloustein School of Planning and Public Policy at Rutgers University, told the Ledger, wealthy residents are “a key driver for everything from job creation and consumer spending to the real estate market and the state budget.”
Hughes said that in New Jersey, the top 1 percent of taxpayers pay more than 40 percent of the state’s income tax. This group also includes small business owners, who create the most jobs, and are the backbone of the state’s economy.
“That’s probably why we have these massive income shortfalls in the state budget, especially this year,” Hughes told the Star Ledger.
Until the tax structure is improved, he said, “we’ll probably see a continuation of the trend, until there are no more high-wealth individuals left.”
Are you listening, Senate President Sweeney?
The fallacy of the “tax the rich” argument has always been that they have no options. But the wealthy are the most mobile among us – as this study shows, they can pick up and move to no income tax states like Florida, or lower-income tax states like Pennsylvania.
In New Jersey right now, we have a budget deficit this year of some $1 billion, and we’re looking at a budget deficit next year of some $9 billion.
That means that next year, if nothing was changed, New Jersey is projected to spend one-third more than the revenues it takes in. In other words, $1 out of every $3 the state would spend is $1 it didn’t have.
But things will change – because New Jersey has to have a balanced budget.
The question is, what do we do to get there?
The Democrats, who are in control of the Legislature, have been saying that they think the state should extend that “millionaire’s tax” for one more year. They noted, in a recent column by the Ledger’s Tom Moran, that the tax, which actually applies to income over $400,000, brings in an additional $1 billion -- and they criticized Gov. Chris Christie for his insistence that the tax be rolled back.
"He’ll give millionaires a tax cut, but he doesn’t want to give more aid to food pantries? We will definitely point that out," said Sweeney. D-Gloucester.
"He’s got to take a step back from that tax cut. This is reverse Robin Hood. You’re taking from the poor and you’re giving to the rich. I’m telling you that just won’t happen. This is going to be one long summer," said Sen. Joe Vitale, D-Middlesex.
"It’s nonsense. He’s helping the rich with this and leaving the middle-class to fend for itself," said Assemblyman Joe Cryan, D-Union
To be fair, it should be noted that these Democrats made these statements before the release of this report.
But if nothing else, it shows that the messages that states —and their governors – send by tax policies are important indicators of future economic growth. Christie Whitman campaigned on tax cuts and telling companies New Jersey was open for business.
Jim McGreevey came in and shut the door, raising taxes and in some cases, demonizing businesses.
Jon Corzine’s improved the state’s business climate somewhat, but expanded the state’s income tax – saying he had little choice.
But he had other choices.
Budgets are all about choices, and about a state’s priorities.
Corzine chose to raise the millionaire’s tax because, we believe, he didn’t want to make hard choices about what to cut – not when raising taxes on the rich sounds so easy.
But, as this report today makes clear, it may be easy in the short term, but disastrous in the long term, in terms of future lost revenue, lost residents and lost job growth.
If we have learned anything in New Jersey, it’s that doing what we’ve been doing isn’t helping our state – it’s making it worse.
And yes, there will be agonizing and even heart-wrenching choices that will have to be made during the upcoming budget.
But they are choices that have to be made. We simply cannot spend more than our residents can afford – or keep taxing wealthier and even middle class New Jerseyans more and hope that they don’t notice that other states are just a whole lot cheaper to live in.
So, yes, Christie is right to roll back that tax. And it may be a long hot summer in New Jersey. But what reports like this show is that taxing more isn’t helping the state, or its citizens.
We’ve been living above our means for too long. Trying to pretend we’re not, by finding more people to tax, or tolls to raise, isn’t going to solve our problems.
Making hard choices, including – unfortunately -- hard budget cuts, will.
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Daily Muse: VULNERABLE?
Feb. 3, 2010
Public Policy Polling, the Democratic polling firm, has named six freshmen U.S. senators who could be vulnerable in 2012. Among the list: U.S. Sen. Bob Menendez.
PPP notes that in their last polling, Menendez has an upside down approval rating of 34-45. Commenting on the six, Politico notes “these folks are all so far from safety level sorts of numbers that you have to imagine they'll all have tough fights to keep their seats when the time comes.”
Of course, two years is a lifetime in politics.
And Menendez is quite busy this year, in his role as chairman of the Democratic Senatorial Campaign Committee. Think of the job as the county chairman of the U.S. Senate: Menendez’s mission is to raise money, recruit candidates and help Democrats win.
So far, it’s been a rough year, what with the stunning upset of Scott Brown in Massachusetts, and the Dems losing their 60-seat supermajority.
But Menendez isn’t helping himself any when he spends the weekend hobnobbing with lobbyists at a fundraising event in Florida, just days after he puts out a press release slamming those same lobbyists.
According to Politico.com, the retreat included 108 lobbyists from groups such as the American Bankers Association, the tobaco company Altria, the oil company Marathon, several drug manufacturers, the defense contractor Lockheed, and most of the large independent lobbying firms: Ogilvy, BGR, Quinn Gillespie, Heather Podesta, and Tony Podesta.
As Politico notes:
“The retreat's guest list is a marked contrast to Menendez's recent rhetoric, which has echoed the White House denunciation of "special interests" and "fat cats."
‘In the upcoming elections, voters will face a choice between Republicans who are standing with Wall Street fat cats, bankers and insurance companies -- or Democrats who are working hard to clean up the mess we inherited by putting the people’s interests ahead of the special interests,’ Menendez said in a press release last Wednesday.
Sounds like a ready-made ad for an opponent.
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Daily Muse: A TRILLION HERE, A TRILLION THERE
Feb. 2, 2010
So President Obama sent his new budget plan to Congress and it was $3.8 trillion.
Or should we say $3,800,000,000,000.
A whole lotta zeroes.
And our nation's deficit, the amount we will owe, as a result of this spending-palooza, is $1.56 trillion.
Or $1,560,000,000,000.
Still a whole lottta zeroes.
Which we will have to pay for, somehow.
Just how big is $1 trillion? Here are some facts we found via CNN to put that number into perspective -- and show just how much larger it is than $1 billion.
A billion is a thousand million.
A trillion is a thousand billion.
One trillion $1 bills stacked one on top of the other would reach nearly 68,000 miles into the sky, or about a third of the way from the Earth to the moon.
If you spent $1 million a day every day for 2,000 years -- back to the time when Jesus was born -- you would have spent three-quarters of a trillion dollars.
A million seconds is about 11½ days. A billion seconds is about 32 years.
A trillion seconds is 32,000 years,
Which is probably about how long it will take us to pay all this back.
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Daily Muse: SAY IT AIN'T SO, JOE
Feb. 1, 2010
This story, unlike the previous one, does not give us hope.
In fact, it makes us very sad.
From NJ.com:
Solomon Dwek, the government's key witness in a massive corruption and money-laundering probe testified this afternoon that he gave nearly $40,000 to an intermediary that was supposed to be passed along to former state Department of Community Affairs commissioner Joseph V. Doria Jr.
Dwek, who was pretending to be a developer when he was handing out cash bribes stuffed in FedEx envelopes earlier this year, testified that Doria's name came up when he he was explaining to political consultant Jack Shaw that he needed to gain environmental approvals to build a project on Garfield Avenue.
According to Dwek, Shaw told him that Doria, in his capacity as DCA commissioner, could help him get the "green card" he needed to build.
Reached at home this afternoon, Doria, the former mayor of Bayonne, refused to comment.
"I know nothing about it," Doria said.
Doria's attorney, John Azzarello, has acknowledged that Doria met with Shaw and Dwek, but would not say what the subject matter was about and insisted Doria didn't take any money from Dwek and broke no laws.
When 44 people were arrested on July 23 in the massive sting operation, federal agents raided Doria's home and office and he immediately resigned his post as state DCA commissioner.
Dwek rendered this testimony under questioning from Brian Neary, the attorney for suspended Jersey City deputy mayor Leona Beldini, who is accused of accepting $20,000 in bribes from Dwek.
Shaw, who was also charged, was found dead from a Valium overdose in his Downtown Jersey City apartment shortly after his arrest in July.
UPDATE: More from the Star Ledger:
NEWARK -- The government informant at the center of last year’s massive FBI sting testified today at the trial of a Jersey City deputy mayor that he paid two bribes totaling nearly $40,000 to a political consultant with the understanding the money would be delivered to a member of former Gov. Jon Corzine’s cabinet. But the informant, Solomon Dwek, said he could not confirm whether Joseph Doria, ex-commissioner of the state Department of Community Affairs, ever received the money. The Hudson County consultant, Jack Shaw, died days after he was arrested and agreed to cooperate with authorities in the case. It remains unclear what Shaw did with the money.
"Would it surprise you to find out that Joe Doria never received those payments?" Brian J. Neary, a lawyer for Jersey City Deputy Mayor Leona Beldini, asked.
Doria, a Democrat and former Assembly Speaker, was not charged in the probe, which led to charges against 46 people including three mayors and two state assemblymen. He resigned as DCA commissioner in July on the same day scores of the defendants were arrested. During a brief interview today, his lawyer, John Azzarello, said Doria did not accept bribes.
"We have always maintained that Joe Doria never received a nickel from Solomon Dwek," Azzarello said.
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Daily Muse: READ HIS LIPS
Feb. 1, 2010
This is why we have such high hopes for Gov. Chris Christie.
We admit, we were concerned after seeing headlines about the possibility of placing tolls on free roads, like Interstates 78, 80, 195, 287 and 295. Having been around Trenton a day or two, we know that such "reports" by transition committees are often trial balloons. And trial balloons can often lead to recommendations that somehow officials say they are forced to do, given the dire circumstances of the budget.
In fact, we were in the middle of a "Read My Lips' restrospective about the importance of keeping promises, of not abandoning pledges at the first sign of trouble.
Then we saw this from The Associated Press:
Gov. Chris Christie has ruled out increasing highway tolls or the gas tax to help solve New Jersey's budget woes.
Christie also said Monday that he won't approve placing tolls on roads that don't have them now, because New Jerseyans are already overtaxed.
And started rewriting.
Now, we know that it's early. We know that we haven't seen the budget yet. We know that Christie's only been in office for a couple of weeks.
But governing is as much about philosophy as it is style. And so far, Christie's philosophy -- and style -- shows that he is on the side of the taxpayer.
And what a change from our previous governor, the union-organizer-in-chief.
Christie ran on a platform that said New Jersey was overtaxed. That we had a spending problem, not a revenue problem.
For him to come out now and say that the only solution to our budget woes was to hike tolls, or add them to currently free highways, or to raise the gasoline tax, would have made lie to all that he had campaigned on.
We may well come to the day in New Jersey that such options have to be considered. But not yet. Not now.
Christie hasn't even begun to cut the budget. He hasn't even begun to enact the pension and benefit reforms. We haven't even begun to see what New Jersey would be like if we spent less, did less, and most important of all, taxed less.
So yes, today was nothing but rhetoric. And sure, Christie could change his mind.
But for today, at least, he swatted away one more tax and toll trial balloon.
So far, so good.
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Guest Column: BOARD-ING THE PENSION EXPRESS
Feb. 1, 2010
By CARL GOLDEN
Gov. Christie’s willingness to plunge into the thicket of the dozens of government boards, commission and agencies to clear out the underbrush of rules, regulations, conflicting missions and duplication of effort is long overdue.
While a major part of his Administration’s effort to identify savings, the review will also turn a spotlight on the operation of these bodies, most of which function with scant public or media attention, and to determine whether they serve a desirable public purpose.
The board and commissions were created over many years, usually through legislative acts to apply regulations and standards of conduct on a specific profession or occupation. They were necessary to assure that the regulations were enforced and that violators would be called to account.
They oversee professions ranging from acupuncture to architects, from audiology to chiropractic, from cosmetology to marriage counseling, from massage to opthalmics, from prosthetic suppliers to shorthand reporting. And, that’s a partial list.
Christie’s order to scrutinize these bodies was driven primarily by the eleventh hour action of his predecessor to appoint members of his outgoing Administration to various boards and commission, enabling them to continue to accumulate service credits and remain in the public pension system.
Former Gov. Corzine’s actions were nothing new. He followed the precedent routinely practiced by his predecessors --- Republican and Democrat. The practice is so deeply entrenched, in fact, that discussions about finding a “soft landing” for soon to be replaced Administration officials are a common and accepted part of the transition process.
Boards and commissions became safe havens for individuals who served in high-salaried cabinet or sub-cabinet posts in government. The appointments are not subject to
Senate confirmation and, while the salaries involved are modest or carry a per meeting stipend, the members are qualified to remain in the state’s public pension system and earn credits toward retirement.
Because some panels meet as little as once per month, members are able to continue private sector employment without adversely affecting their government posts.
With the state’s public pension system in desperate and unprecedented financial distress --- some $30 billion in unfunded liability --- it has drawn increased attention and produced what appears to be a bipartisan approach to implementing major reforms in it.
The focus on members of boards and commissions and their continued membership in the system has become a principal component of the drive for reform.
(For more of Carl Golden's analysis about state boards and commissions, read the rest of his guest column here.)
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Daily Muse: TIME TO ENACT INITIATIVE AND REFERENDUM
Jan. 29, 2010
Here's a challenge for New Jersey lawmakers.
On NJ101.5, Gov, Chris Christie reiterated his campaign promise that he would support initiative and referendum. I&R would give New Jerseyans the ability to place public questions on the balllot and be decided directly by the voters.
New Jersey Republicans have, as recently as a few years ago, run on a platform that called for N.J. to adopt I&R. Of course, it was also New Jersey Republicans who promised I&R when they were swept into veto proof majorities in the wake of Gov. Florio's $2.8 billion tax hike -- and then failed to deliver.
But now is a new day.
And part of turning Trenton upside down means empowering the taxpayer.
After the new budget is enacted, the Legislature should turn its attention to placing initiative and referendum on the ballot.
And we would hope that Gov. Christie, who seemed to indicate Wednesday that he would leave it up to the Legislature to initiate action, would instead use his bully pulpit to push I&R forward.
As the governor has said, symbolism is important. And giving citizens the ability to have a direct say in their government, to have the ability to -- as Christie said, "rein in a government that has gone out of control," would be a powerful symbol.
Initiative and referendum is one more reform that is needed in Trenton. It should be made part of a "People's Agenda" of reforms to make it clear that the special interests are no longer in charge in Trenton.
Now let's see who takes the lead.
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Guest Column: OBAMA AND CHRISTIE: A STUDY IN CONTRASTS
Jan. 29, 2010
By PATRICK MURRAY
Wednesday night was certainly an interesting one for political observers in New Jersey. The evening began with the Garden State's new chief executive, Chris Christie, appearing on New Jersey 101.5 to talk about what he would do in his first year. An hour later, President Barack Obama took to the national airwaves to explain what happened in his first year and how the second will be different.
Both addresses acknowledged what is unquestionably the major underlying failure of government today. As President Obama stated in his State of the Union, "We face more than a deficit of dollars. We face a deficit of trust." However, the two chief executives demonstrated different approaches to regaining the trust necessary to get us back on the right track.
Governor Christie appeared aggressive and direct in his responses to constituent questions. While he may have been short on details, he was crystal-clear on style. Speaking about some minor cost-cutting measures, he advised listeners that these cuts alone would not close the budget gap, but he showed that he understood the importance of such actions when he said, "I believe that symbolism is important. It says we 'get it.'"
President Obama's speech also included statements intended to convey that he "gets it." For example: "We all hated the bank bailout." And: "Jobs must be our number one focus in 2010." He even tried to recast his health reform proposal as primarily a middle class measure. It was a decent speech, but way too long. (And the length only reinforced the sense that he is not focused on key concerns).
One major difference between the president's and the governor's broadcasts was the tone. Middle class voters want to know that their elected leaders truly appreciate the problems they face. Christie demonstrated that, while Obama fell short. When the president came to office, there was a sense that his cool demeanor would be an asset in Washington's overheated partisan environment. His tone is now perceived as an unwillingness to engage in the heat of the battle.
(For more of Patrick Murray's analysis of the different styles of President Obama and Gov. Christie, read his guest column here.)
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Daily Muse: NO WAY TO RUN A RAILROAD
Chamber senior vice president Jim Leonard says it was a "calculation error." Leonard says normally the train has too many cars to load all the passengers at once. But this year in didn't.Those left stranded were put on another train and will meet up with the chamber's chartered train in Philadelphia.
Apparently, according to the Star Ledger -- who said 100 passengers were stranded -- the drop in attendance caused the Chamber to book 10 trains instead of 12. As a result, the train only stopped once in Trenton, instead of the usual two. Oops! But the news isn't all bad. Former Gov. Brendan Byrne told NJBIZ.com that "he was able to have an in-depth conversation about COAH with some legislators — something that would have been more difficult in past years." “It’s a lot less chaotic,” Byrne said. With 100 or 150 fewer passengers, we guess so.
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Guest Column: N.J. GOES TO WASHINGTON AGAIN -- BUT WHY?
Jan. 28, 2010
By RICHARD A. LEE
For years, the question “Why can’t government run like a business?” was a popular refrain from those frustrated by bureaucracy and inefficiencies in the public sector.
But that was before the days of corporate bailouts.
These days, a Wall Street pedigree no longer carries the weight it once did. We’ve all learned that big business doesn’t run as smoothly as we may have thought – and one need not be an MBA to notice the inefficiencies.
Take for example the New Jersey Chamber of Commerce’s Annual Walk to Washington. Every year, a chartered Amtrak train takes some 1,500 people from New Jersey to the nation’s capital for the event, which provides an opportunity to network and attend a dinner with members of the state’s Congressional delegation.
All of that is well and good, but why go to Washington to do it? Those who participate in this annual event leave New Jersey at midday Thursday, spend a few hours on a train and then head to the Marriott Wardman where the evening’s festivities take place. Before noon the next day, they’re back on a train heading home. There’s little time to see or experience much of Washington other than train stations and hotel ballrooms – and you can find plenty of those right here in New Jersey.
Strictly from an efficiency standpoint, it doesn’t make sense. The event costs $560 for chamber members and $660 for non-members. With 1,500 people attending, that’s a total expense of $840,000 -- if they all are Chamber members. And that doesn’t include the price of hotel rooms at the Marriott. If this same group of people got together for networking and dinner someplace in New Jersey, it would cost a whole lot less – and it’s not like they would miss out on seeing the sights in Washington because most of them don’t get to do that anyway.
But wouldn’t they miss their opportunity to network with the New Jersey Congressional delegation?
(To read more of Rich Lee's thoughts on the annual "Walk toWashington, read his guest column here.)
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Daily Muse: THE 9% SOLUTION
Jan. 27, 2010
Maybe there really is a new world order in Trenton.
Senate President Steve Sweeney has announced that he plans to revisit those pension reforms that the Legislature proposed back in 2006 -- only to be thwarted by then-Gov. Corzine.
Sweeney, as you may recall, was villified by the public employee unions back in 2006 when he started advocating for pension and benefits reforms. It was his proposal that helped prompt that rally where Corzine made his infamous "I will stand with you" speech.
Sweeney was even called down to Washington and taken to the AFL-CIO woodshed for making the reform suggestions in the first place.
According to the Star Ledger, the reforms that the Senate will revisit include "repealing a 9 percent increase in benefits put in place in 2001, increasing from three to five the number of years of salary factored into the pension, banning part-time workers from the pension plan and switch to a defined contribution plan, and allowing non-vested public employees to switch out of the pension system and into a defined contribution plan, or opt out completely.
But here's our favorite part of the Ledger story: Sweeney called the 9 percent increase the "single most irresponsible act that took place to put our pensions in jeopardy."
Sen. Barbara Buono (D-Middlesex) blamed former Gov. Jon Corzine for not allowing these items to go through in 2008.
"We received a lot of push-back from the administration," she said. "Our efforts were severely constrained. We were able to push through some reforms, but not nearly enough."
Wow. (Maybe now we know why Corzine picked Loretta Weinberg over Buono as his running mate.)
But it's amazing the change that can be made at the ballot box, isn't it? If New Jerseyans hadn't voted Corzine out of office, the likelihood that any of these reforms would move forward is somewhere between slim and none.
It also shows the importance of leadership.
Rolling back that 9% pension boost, which was done for no other reason but as a gift to the unions, is a crucial step to showing New Jerseyans that Trenton is finally going to come to the aid of the taxpayers. We have to get our fiscal house in order, and these reforms are a crucial first step.
New Jersey can no longer afford to be all things to all people. Congratulations to Sens. Sweeney and Buono for putting these reforms back on the front burner. Now we'll have to see if they can get them through the Legislature, and how much pushback they get from the employee unions.
But this is a great start.
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Guest Column: OBAMA'S TEACHING MOMENT
Jan. 27, 2010
By CARL GOLDEN
For a group of people who achieved genius reputations for beating the odds by propelling a one-term, relatively obscure U. S. Senator into the White House, the top tier Obama Administration staff hasn’t done a great deal to justify its early reputation.
The President’s standing in the polls has declined steadily in the last year and the latest political setback --- the election of a Republican to the U. S. Senate from Massachusetts --- has sent the President and his advisers scrambling to establish an alternative identity to win back the American people.
The President’s team has stumbled badly in making the transition from campaigning to governing and has fallen back on a normally reliable tactic --- when problems arise, put the candidate (President) in front of the media. With an individual as charismatic and articulate as Obama and armed with the power of the presidency, the temptation to bring his qualities to bear on any issue, regardless of significance, is irresistible.
Americans noted little progress in pulling the nation out of the economic morass into which it had fallen and now blame Obama for failing to devote attention to resolving the very issues upon which he was elected. Massachusetts’ voters took it out on poor Martha Coakley.
While overhaul of the nation’s health care system, the Administration’s signature issue, was sinking steadily into the political/ideological quagmire on Capitol Hill, with unemployment hovering around 10 per cent, home foreclosures rising steadily, business failures increasing, and a deepening angst about personal economic well-being, the White House was preoccupied with the following.
(For more of Carl Golden's analysis, read the rest of his guest column here.)
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Daily Muse: SANDTRAPS
Jan. 26, 2010
In 1994, after the Republicans swept into power, Newt Gingrich was the toast of Washington.
But then came 1995, and the Washington shutdown, and the snub heard round the world.
No, we’re not talking Monica.
Gingrich’s undoing came largely as a result of a statement he made that tied the shutdown to the fact that he and then-Senate Majority Leader Bob Dole were forced to leave Air Force One by the back ramp.
Here’s how CNN described it at the time:
The speaker said Wednesday that tough terms in the government spending bill President Clinton vetoed Monday night were included partly as the result of pique he and Senate Majority Leader Bob Dole felt on Air Force One during flights with the president to and from Israel for the funeral.
Gingrich and Dole had complained earlier about their lack of discussions with Clinton during the 25 hours of flying time. But Gingrich went a step further Wednesday by saying the incident contributed to the government shutdown.
"This is petty," said Gingrich, indicating his displeasure at the way the two were treated. "You've been on the plane for 25 hours and nobody has talked to you and they ask you to get off the plane by the back ramp. ... You just wonder, where is their sense of manners? Where is their sense of courtesy?"
That "snub," the Georgia Republican said, was "part of why you ended up with us sending down a tougher continuing resolution" -- the stopgap spending bill that Clinton vetoed Monday. That veto led to the partial shutdown of the federal government, now in its third day.
The White House labeled the statements “bizarre” and used the incident against him; Gingrich became a caricature; and the Republican Revolution never recovered.
Now what does any of this have to do with New Jersey, you may be wondering.
As you no doubt recall, the Democrats tried to make Gov. Chris Christie’s temperament an issue in the campaign.
And we’ve noticed that narrative continues. Take, for example, the words and phrases used in a Star Ledger story to describe Christie and his decision to bypass the annual Chamber trip to Washington:
This is more about getting even. Christie wants revenge against two of Trenton’s most influential lobbying groups: the chamber and the New Jersey Business and Industry Association.
People close to Christie describe it as being in the governor’s "penalty box."
Christie felt insulted after a session with a handful of key chamber leaders during which it was suggested he could not win the race against Corzine and should consider waiting until 2013.
Christie also was angered at (Joan) Verplanck’s response last year after Christie announced he would not go on the 2009 train ride because the trip had become a symbol of "politics as usual."
,,, Christie went ballistic, feeling he had been treated disrespectfully.
Christie felt duped and told association leaders there would be consequences if he won, according to people close to Christie.
These characterizations seem to come from Christie insiders. Why they would do so, only they can say.
The public will embrace a crusading politician who acts in their best interest, even if he occasionally gets angry on their behalf.
But as Christie works to solve this year’s potential $2 billion deficit, and next year’s $8.9 billion deficit, his opponents will look to turn the public against him. The governor and his supporters need to avoid traps and not feed into narratives where it looks like he’s operating out of pique or revenge. His opponents will try to use the upcoming spending cuts against him; Christie and his team don’t need to give them any help.
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Daily Muse: PASCRELL TO DEMS: HEALTH CARE REFORM BILLS DEAD
Jan. 25, 2010
Give Rep. Bill Pascrell, D-N.J. -- he can read political tea leaves better than some of his leadership in Washington.
In a brutally frank talk with Politico.com, Pascrell deemed the House and Senate health care reform bills dead, and publicly stated his unhappiness with his Democratic leadership:
“We are arrogant when we say, ‘Well, as soon as the public understands what we’re doing, they’ll like it,’” he told a clutch of reporters. “That is not only arrogant, it’s BS.”
Rank-and-file Democrats are “tired of hearing about and not knowing about” the deals that leadership cut with industries for their support of this legislation, Pascrell said, and in expressing that, Pelosi became Pascrell’s prime target. “We’re not going to accept that any longer,” he said. “In fact, if you go back to those agreements, they should’ve been much more robust; talk about robust — those agreements should’ve been more robust.” Politico, who has dubbed Pascrell as "Jersey Everyman," describes the North Jersey congressman like this: "Agitated and unfiltered, Pascrell has become the guy who’s not afraid to go public with what many rank-and-file House Democrats have been saying behind closed doors." Pascrell has apparently even come up with his own alternative to the health care bill. Politico reports that "Pascrell, a member of the influential House Ways and Means Committee, is proposing to split the legislation into several parts, and he’s reached out to the Republican leadership about this idea. His plan would be the anti-Pelosi: no public option, no individual mandates and no new entitlements. It would contain some widely popular reforms, including expansion of high-risk pools and the elimination of rescissions. " He claims to have 25 Democrats are on board for his plan.
Who knew Bill Pascrell will lead Democratic opposition to the health care bill?
“The people in Massachusetts sent a clear message,” Pascrell said. “If we didn’t get it in New Jersey or Virginia, we should’ve gotten it, certainly, Tuesday.” Pascrell certainly got it. Now we'll see how many others in the Jersey delegation got the same message, too.
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Daily Muse: ABOUT THAT $500 MILLION SURPLUS ...
Jan. 25, 2010
So it turns out Gov. Chris Christie was wrong when he said the state was facing a $1.3 billion deficit in this fiscal year.
No, David Rosen -- the budget and finance officer at OLS -- said the deficit was actually $2 billion, according to newjerseynewsroom.com.
And the budget for next year? $8.9 billion.
Which means that Christie has to solve a $10.9 billion deficit.
That's one-third of the state budget.
Which means that $500 million surplus that Gov. Corzine and his spokesman insisted were there?
Well, we guess that's just one more place that we learned we couldn't "hold him accountable."
Here's the bad news from newjerseynewsroom:
David J. Rosen, budget and finance officer for the non-partisan state Office of Legislative Services, told legislators that 2009 was the worst in modern state government history for tax collections with overall revenue down 12 percent. He said it was also the worst year for income tax collections with revenue down 18 percent, and the worst year for sales collections with revenue down 14.8 percent.
Continuing with the grim statistics, Rosen said reality tax revenues was down 40 percent, the corporate business tax revenue down 25 percent, insurance taxes revenue down 16 percent, casino revenue down 14 percent, inheritance tax revenues down down 9 percent, and motor fuel tax revenue down 5 percent. He said tax revenue could go even lower this year.
"In 2011, let's say we have a real recovery,'' Rosen told the committee, "it will take until 2014 to get back to where the state was in 2008. It is going to be very hard for us to simply grow out of this problem. We have taken such a revenue hit in the last two years that it is going to take up to multiple years to get back to where we were in terms of a state revenue base. It is going to have a profound impact in the years going forward.''
Rosen said possible solutions to solving the nearly $2 billion 2009-10 budget deficit could include raising $1.8 billion by using reserve funds, federal aid and a tax amnesty program that could bring in more revenue. He also said an additional $2.5 billion could be found by budget cuts, and delaying pension contributions and school aid.
Rosen said the Republican Chistie administration and the Democratic-controlled Legislature face an $8.9 billion 2010-11 budget deficit caused, in part, by the end of temporary tax increases that raised $1.1 billion, a $1 billion decline in tax revenue, the lose of $2.2 billion in federal aid, a state pension contribution obligation of $3 billion, a $600 million increase in school aid, and a $1 billion cost of funding mandated Homestead Rebate programs.
Question: Are we really supposed to believe that Corzine didn't know these numbers as he was walking out the door? That he really thought he was leaving a surplus?
Or was he just coming up with plausible deniability, to justify why he kept spending money, and making appointments, like he lived in Neverland?
Only he's not Tinkerbell. And there's no Peter Pan to lead us out of the mess that Corzine left.
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Quote of the Day
"This is fiscal Armageddon. It’s something we have not seen in New Jersey. We have a history of borrowing money we can’t afford to repay and a history of spending money we don’t have. Frankly, that has to stop,” said Sen. Jeff Van Drew, D-Cape May, about news that next year's budget deficit could be as high as $11 billion. (2/5/10)
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