Monday, July 10, 2006

State Budget - HeraldNews - Pou may pay for opposing Corzine

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Published in the Herald News, Sunday, July 9, 2006

Choosing sides may exact high cost
Pou's stance against Corzine draws support, ire

By PAUL BRUBAKER
HERALD NEWS


Assemblywoman Nellie Pou achieved great visibility during New Jersey's historic government shutdown that preceded the state's $30.62 billion budget adopted just after dawn on Saturday. But what remains to be seen is whether Pou can survive being the sole Democratic legislator from Passaic County to be on the losing side of the budgetary standoff with Gov. Jon S. Corzine.

Pou, D-Paterson, stood by Assembly Speaker Joseph Roberts, D-Camden, on Monday when speculation grew that Democrats might force Roberts out of his post because of his opposition to the governor's proposed sales tax increase to help pay off the state's $4.5 billion deficit. The next day, Pou was by Roberts' side again -- literally and figuratively -- as he rejected a compromise Corzine supported to dedicate half of the sales tax increase's revenue toward property tax relief.

On Wednesday night, Pou worked the periphery of the televised Assembly Budget Committee meeting -- taking an occasional cue from the chairman, Assemblyman Louis Greenwald, D-Voorhees, another Roberts ally -- when a bill to deem state casino regulators as "essential workers" was considered and later quashed. Republicans later said the bill's passing could have led to the budgetary crisis being prolonged indefinitely.

Pou characterized her alignment with Roberts as part of her role as chair of the Appropriations Committee, a position Roberts gave her in January after she was re-elected to her fourth term.

"I don't believe that any member chairing any other committee would not have done their job any differently," Pou said.

Pou said she supported a sales tax increase only if all of the new funds were used for property tax relief.

But standing with Roberts was a move that ran counter to most of her legislative colleagues from North Jersey, went against the wishes of Passaic County's Democratic leadership, and was seen as a betrayal of a governor that had bailed her district's largest municipality out of a $30.8 million deficit only three months earlier.

Assemblyman Joseph Cryan, D-Union, a Budget Committee member, wrote off Pou's stance against the governor as benign and said that she would not face any political ramifications for having been so closely aligned with Roberts.

"There were people on both sides of the issues, reasonable people having different views," said Cryan. "I don't think Democrats should penalize Democrats."

Cryan, as chairman of the state Democratic Committee, faces the task of bringing Democrats together after a budgetary crisis that ensued while the party held the governor's office and the majority in both legislative houses.

Assemblyman Gary Schaer, D-Passaic, also on the Budget Committee, said Pou's support of sales tax revenue being dedicated to property tax relief was part of normal political discourse.

"I disagreed with Nellie's views," Schaer said. "But her viewpoints, and those of Speaker Roberts, were important elements of discussion. It forced people to compromise. As a result of their beliefs and their views, what we're coming out with is a budget that is that much better."

Meanwhile, Republicans in the State House didn't believe Pou would be able to easily shake off her record of the past few weeks.

"She had a significant role in bolstering up team Roberts," said Assemblyman Kevin O'Toole, R-Wayne. Sen. William Gormley, a stalwart Atlantic County Republican, didn't mince words in assessing Pou's legislative performance.

"She followed Joe Roberts down a stupid trail. She didn't stand up for her governor. She didn't stand up for her district," said Gormley. "She's useless."

While there may be partisan gain to be had for Republicans in declaring the political death of a Democratic leader, Democrats closer to home were also disappointed in Pou's failure to support Corzine -- especially after he approved the state grant in April that bailed Paterson out of its budget woes.

Passaic County Chairman John Currie said, in the weeks before the July 1 constitutional deadline for a state budget, that he had urged legislators to support the sales tax increase.

"It does somewhat puzzle me that someone would not want to support the governor, especially when he has been so good to the 35th District and in particular, the city of Paterson," he said.

Pou said that although she was appreciative of the state grant, she did not believe the governor approved the bailout specifically for her.

"It's not just for any one person," she said. "We began those discussions with the governor very early on in February, long before any of this. He did the right thing for all of the citizens of Paterson."

Officials in the governor's office declined to comment. Currie said that Pou's next bid for re-election was too far in the political future to forecast whether her alignment with Roberts would have any bearing.

Essex County Executive Joseph DiVincenzo and Newark-based power broker Steve Adubato Sr. were more successful in influencing Assemblyman Wilfredo Caraballo, D-Newark, who also holds a leadership position as the Assembly's speaker pro tempore.

Early in the week, Caraballo had backed Roberts. By Thursday, he had broken rank from Roberts and supported Corzine.

Reach Paul Brubaker at 973-569-7155 or brubaker@northjersey.com.


Link to online story

(In accordance with Title 17 U.S.C. Section 107, this material is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. Plainfield Today, Plainfield Stuff and Clippings have no affiliation whatsoever with the originator of these articles nor are Plainfield Today, Plainfield Stuff or Clippings endorsed or sponsored by the originator.)
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State Budget - CourierPost - Assembly OKs by 1 - Green votes AYE

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Published in the Courier Post Online blog, Saturday, July 8, 2006

BREAKING
Assembly OKs sales tax hike by 1 vote

Gannett New Jersey

It took a dramatic nine minutes, but the state Assembly this morning voted by one vote to increase the sales tax from 6 to 7 percent and expanding it to a range of new services, a tax increase of more than
$1.5 billion.

The bill was posted for a vote at 3:32 a.m., but it stalled at a tally of 39-38. Forty-one votes are needed for passage. Two assemblymen from Middlesex County -- Joseph Vas and John Wisniewski, both from the 19th District -- hadn't yet voted, and they held out until after huddling with Democratic Party leaders.

Forty of 49 Democrats voted for the bill, all but Nelson Albano, John Burzichelli, Douglas Fisher, Linda Greenstein, David Mayer, Paul Moriarty, Michael Panter Jr., Linda Stender, Jeff Van Drew. One of the 30 Republicans present voted yes: Assemblyman Frank Blee, whose district includes the Atlantic City casinos closed when gaming inspectors were furloughed.

The Senate discussed the sales tax briefly earlier but hasn't yet voted.
It is discussing the budget bill now.

Published: July 08. 2006 3:54AM

Link to online story

Note: Implication of list is that Green voted FOR the budget

(In accordance with Title 17 U.S.C. Section 107, this material is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. Plainfield Today, Plainfield Stuff and Clippings have no affiliation whatsoever with the originator of these articles nor are Plainfield Today, Plainfield Stuff or Clippings endorsed or sponsored by the originator.)
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State Budget - Record - Lawmaker squares off with labor

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Published in the Bergen Record, Thursday, July 6, 2006

A steadfast lawmaker squares off with labor

By ELISE YOUNG
STAFF WRITER


TRENTON -- Outside the State House on Wednesday stood a 15-foot inflatable rat bearing a photo of state Sen. Stephen M. Sweeney, the Gloucester County Democrat who is taking on the labor unions with a campaign to align their pay and benefits with those in what he calls "the real world."

Inside, when a group of three-dozen union members spotted Sweeney on the stairs around the corner from the governor's office, it was time to go one-on-one with a guy -- an ironworker, no less -- whom they consider a turncoat for suggesting they give back 15 percent of their compensation.

"You guys will turn your back on us!" a union member called.

Another shouted: "As a union representative, how can you negate our contracts?"

Sweeney shot back: "Because it doesn't fix the problem."

For 25 minutes, the crowd begged him to support Governor Corzine's budget.

Sweeney stuck to the message that he is spreading on his Web site, stopspendingmymoney.com: New Jersey no longer can afford such generous pay and benefits for its employees, and it's time for them to shoulder higher health-care costs and pension contributions, just as workers do in the private sector.

The inflatable rat -- which bore photos of Sweeney and his "real world" campaign colleagues, Assembly Democrats Jerry Green of Union County and Paul D. Moriarty of Gloucester County -- was inappropriate and offensive, he said. And if Corzine's sales-tax increase ensured full payment of union members' pensions, he told them, "I'd be the first one voting for it."

"They're not fully funding your pensions, guys," he said. "You're going to wind up, if you're not careful, losing your pensions and health [benefits]."

When Rae Roeder, president of Communications Workers of America Local 1033, started a high-decibel tirade that suggested Sweeney was betraying his ironworker brothers and union members everywhere, two state troopers stepped in.

The rowdier union members trickled away, but two dozen stayed to resume a calm discussion.

"I'm displeased with the Legislature in general," Karen Marlowe of South Orange, a municipal liaison for the Board of Public Utilities and a member of CWA Local 1037, said after Sweeney left. "We all have a mortgage to pay."

Ron Jackson of Neptune, another BPU employee, said he didn't agree with Sweeney, but appreciated that the senator stood in a hallway and took their questions.

"We're all being hurt by this -- not just the unions," Jackson said.

E-mail: younge@northjersey.com

Link to online story

(In accordance with Title 17 U.S.C. Section 107, this material is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. Plainfield Today, Plainfield Stuff and Clippings have no affiliation whatsoever with the originator of these articles nor are Plainfield Today, Plainfield Stuff or Clippings endorsed or sponsored by the originator.)
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State Budget - Press of AC - Green/Moriarty/Sweeney plan divides union and pols

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Published in the Press of Atlantic City, Friday, June 23, 2006

Sweeney plan to cut state salaries divides N.J. unions and politicians

By PETE McALEER Statehouse Bureau, (609) 292-4935

Published: Friday, June 23, 2006
Updated: Saturday, June 24, 2006


TRENTON — From inside the Statehouse, Sen. Stephen Sweeney could see the swarm of state workers crowding State Street.

The union workers — about 5,000 of them — had arrived to demand that the state Legislature fully fund their pensions. They were even more worked up about Sweeney, a retired ironworker from Gloucester County who engineered his rise to power with the support of the building trades. Two weeks earlier, Sweeney had introduced a plan to cut state worker salaries and benefits by 15 percent.

State workers delivered their response with picket signs short on subtlety.

“Sweeney's a liar,” said one. “Sweeney lives in a glass house,” declared another. A third offered the more succinct, “Sweeney sucks.”

Sweeney, a brawny, barrel-chested man with a low-key manner, said he considered addressing the crowd.

“I thought about it, I did. But they would have shouted me down. They would have never let me explain it to them,” said Sweeney, a Democrat who represents parts of Salem, Gloucester and Cumberland counties.

Sweeney's call for state workers to come back to the bargaining table a year before their contracts expire undoubtedly will never see debate inside a committee room, but the repercussions of introducing the plan may last years. The debate already has driven a wedge through New Jersey's labor community — the building trades quickly jumped to Sweeney's defense — and its political community. Sweeney, the chairman of the state Senate Labor Committee, finds himself at significant odds with Gov. Jon S. Corzine.

“I've been getting bombs thrown at me every day,” Sweeney said.

The bombs have flown both ways. Sweeney questions whether Corzine is serious about negotiating tough with the unions when their contract ends next year. Corzine's “I'm with you” declaration at last Tuesday's state worker rally sends a bad signal, Sweeney said.

At the rally, Corzine took the stage, and although he never mentioned Sweeney by name, left little doubt about what he thought of the lawmaker's plan.

“Last time I checked, a contract was still a contract,” Corzine shouted to the crowd. “Contract negotiations are bargained at the bargaining table, not the budget table.”

Even away from rally settings, debate over the plan has hardly been subdued.

Union leaders said they were blindsided by Sweeney, who unveiled his plan by holding a news conference and then launching a Web site, www.StopSpendingMyMoney.com

A serious request to invite the union workers back to the bargaining table, they said, should have been made behind the scenes.

Sweeney contends it's union leaders, buoyed by Corzine's support, who have been the bullies.

“They can threaten us,” Sweeney said. “They can run somebody against me in a primary. That's their right. But remember, I'm the person that for the last four years has carried the ball for labor in Trenton. The biggest mistake was telling people like me, ‘If you don't do what we say, we're going to target you for defeat.'”

Calls keep coming to Sweeney's office each day, for and against the plan. Sweeney said the calls from state workers sound mostly the same, suggesting they've been told exactly what to say by union leaders.

The Legislature appears split.

Assemblyman Jim Whelan, D-Atlantic, said he supports what Sweeney is trying to do.

“Frankly, my first year (as Atlantic City mayor) I walked in and said to the unions, ‘I need givebacks or there will be layoffs,'” Whelan said. “Council refused to take action on the budget, but in the end they realized I was serious. … Public employee salaries in New Jersey are above average. They're no longer paid the starvation wages they were paid in the '60s and '70s. In the meantime, costs are rising tremendously.”

State Sen. Nicholas Asselta, R-Cumberland, Cape May, Atlantic, said the state should not blame its financial crisis on state workers.

“Steve is a guy who says what he thinks and feels,” Asselta said. “I just think it's all about respecting the life of a contract and then renegotiating. The state would be in a good position in a year to go back to service unions and say this is where we are and we need help. I think they would have been agreeable to that.”

In recent days, Sweeney has placed more focus on the need for New Jersey to switch to a two-tier system that reduces benefits for new hires. That's what he talked about a few hours after the union rally when two nurses stopped him on his way to a Senate voting session.

“There hasn't been an honest dialogue about this,” Sweeney told the nurses. “I wouldn't change your pension. I'm not going after anything anybody has. I'm talking about going forward, we have to take a look at a two-tier system. We're going broke.”

The nurses appeared satisfied with the explanation. Selling the plan to two people proved more sensible than trying to sell 5,000 workers at a rally — and possibly more fruitful than selling an entire state on the plan through a news conference or Web site.

“Those nurses didn't come looking for me to thank me, but they weren't angry when we got talking,” Sweeney said. “When you explain it to them, it makes sense.”

To e-mail Pete McAleer at The Press:
PMcAleer@pressofac.com


http://www.pressofatlanticcity.com/news/story/6457042p-6312261c.html


(In accordance with Title 17 U.S.C. Section 107, this material is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. Plainfield Today, Plainfield Stuff and Clippings have no affiliation whatsoever with the originator of these articles nor are Plainfield Today, Plainfield Stuff or Clippings endorsed or sponsored by the originator.)
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Murder - Courier - No. 7: Robert Clayborne shot in Viola apartments

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Published in the Courier News, Sunday, July 7, 2006

Plainfield man shot, killed in hallway

By CHAD HEMENWAY
Staff Writer


PLAINFIELD -- City and county investigators are searching for suspects after a Plainfield man was shot dead Saturday in a first-floor hallway at Viola's Apartments, 165 Crescent Ave.

Robert Clayborne, 28, was located by police about 1:45 a.m. with a gunshot wound to the upper body, police said.

Clayborne was treated at the scene by Muhlenberg Regional Medical Center's Mercy 6 Medic Unit but was pronounced dead a short time later, police said.

As of Saturday night, no arrests had been made and no weapon had been recovered, police said. No other details were immediately available Saturday, police Chief Edward Santiago said.

Clayborne's death was the seventh homicide in the city in 2006; there were a record 15 homicides in 2005.

Last week, a former North Plainfield man, 41-year-old Frank J. Puri, was beaten and found lying in the middle of Liberty Street. He died Tuesday at Robert Wood Johnson University Hospital in New Brunswick.

Police are also still searching for the person or people who killed Puri.

http://www.c-n.com/apps/pbcs.dll/article?AID=/20060709/NEWS/607090415


(In accordance with Title 17 U.S.C. Section 107, this material is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. Plainfield Today, Plainfield Stuff and Clippings have no affiliation whatsoever with the originator of these articles nor are Plainfield Today, Plainfield Stuff or Clippings endorsed or sponsored by the originator.)
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State Budget - Politifax - Sweeney/Green/Moriarty: Winner of Week

Published in Politifax, June 6, 2006

Sunday, July 09, 2006

State Budget - PoliticsNJ - Rebovich: Making sense of budget fiasco

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Published in PoliticsNJ, Sunday, July 9, 2006

Making sense out of the budget fiasco

by David P. Rebovich

Three and half months is an eternity in political time. Things change, such as the policy positions of lawmakers, public opinion on the issues, and the ability or one politician or another to influence colleagues or events. What almost never changes, however, are the underlying political interests of elected officials. That was certainly true this budget season and is a main reason why New Jersey state government was shut down for a week. But so too were differences in principles, specifically Governor Jon Corzine's commitment to fiscal integrity and the belief among Democratic legislators that they cannot do any good in policy terms unless they do what is necessary to maintain their majorities in the General Assembly and Senate.

The inconveniences caused by the political wrangling last week will likely keep many New Jerseyans skeptical about the willingness and ability of the Democrats who control state government to change politics and public policy for the better. So too will the perception that despite all the drama about the new budget, not much has changed. There will be some modest property tax relief, but many taxes will be higher. And, state aid and program support will be tight. However, Governor Corzine and Democratic as well as Republican legislators will have the opportunity to convince New Jerseyans of their commitment to political and tax and spending reform this summer in the planned special legislative session and in next year's budget.

Looking back, it was naive to think that the way state government has conducted itself for decades could be changed in six months. Of course the reform-oriented new Governor would clash with veteran lawmakers from both parties. On March 21st, moments after Corzine made his Budget Address to the joint session of the Legislature, Republican legislative leaders and, more importantly, Democratic ones complained vigorously about the new governor's proposed one-cent tax hike. The Republicans' objection was based on their small government ideology, anti-tax policy perspective, and political interest in being identified as advocates of the state's beleaguered taxpayers. The Democrats, especially the South Jersey contingent in the General Assembly and Senate, had two major concerns, one political and the other policy-related.

The political one was that supporting the Governor and voting for the sales tax hike would hurt legislators' reelection prospects in November 2007. The policy concern had two components. Several Democrats thought that increasing the sales tax rate simply to balance the budget would be political disaster for the party in power, as it was on three other occasions in New Jersey political history. Rather, any sales tax hike should be used to provide property tax relief or, better yet, be part of a major property tax reform plan that would win over most residents. Secondly, the sales tax is a regressive measure that hits the neediest the hardest. If more revenue really was needed to balance the new state budget, why not increase taxes that fall more heavily on better off residents, like the progressive income tax or luxury and business taxes?

Or, as Senator Steve Sweeney argued, why not ask state workers to give back some of their benefits? Senator John Adler would later suggest that the state lay-off 2,000 members of its 82,000 workforce rather than increase the sales tax. And, the Republican Assembly caucus recommended making over $2 billion in cuts in order to avoid any tax increases in the new budget.

As it turned out, the Governor did get his one-cent tax increase but not on the terms that he wanted. Indeed, state government may still be shut down if the Governor and Speaker Joe Roberts did not agree on a compromise proposed by Senate President Richard Codey, the former governor. Corzine had been holding strong to his commitment to signing a budget in which expenditures match real revenue, not money gained from gimmicks. And, he wanted that one-cent increase in the sales tax, and the $1.2 billion in revenues it would provide, to balance this year's budget and reduce the structural deficit next year to a more manageable $2 billion.

The Governor got the sales tax hike but only one-half the revenue for the 2007 budget and for future ones if citizens decide to support a constitutional amendment to that affect And, Roberts almost blew apart the already tenuous budget agreement arrived at on Thursday afternoon when he announced on Friday that he would propose a second constitutional amendment to dedicate all the revenue from the new sales tax hike to property tax relief. The Governor regarded the latter as a goal, one to be considered only after fiscal integrity is achieved and the climate for business in the state is improved. In Corzine's terms, Roberts' proposal may perpetuate the state's structural deficit and lead to fiscal crises in the future.

Corzine was able to put Roberts' proposal on hold for now. But the Speaker's attempted end run around the Governor added to the running story during the state shutdown about palace intrigue and which state official - Corzine, Roberts or even Codey - would be the real winner in this year's budget process. When Roberts gave into a sales tax hike just a day after emphatically declaring the idea dead, he was deemed a loser. But the Speaker had also said that any sales tax hike should be used for property tax relief, and he did get at least half of that in the compromise.

What about the Governor? Corzine, called the winner by many newspapers, later admitted that he got only about 75 percent of what he wanted in the new budget. Besides compromising on the sales tax and losing out on some $550 million in recurring revenues that he wanted to use to reduce the state's structural deficit, Corzine also lost his proposed hospital bed tax, alcohol tax, water tax and half of the new cigarette tax hike. And, to make matters worse, the Democratic-controlled legislature tacked on $340 million in district-oriented spending, usually referred to as "Christmas tree items," to the budget they sent to Corzine Saturday morning. And, they cut his planned increase in rebate checks for seniors and reduced by $100 the checks that families making over $70,000 a year would receive.

One interpretation of what occurred is that $890 million - the $550 million that would go to property tax relief and the $340 million in Christmas tree items - of the anticipated $1.2 billion in new revenues from the sales tax hike would go to spending, while only $310 million would be used to close the much-ballyhooed deficit this year and for budget balancing in the future. That was the buzz among veteran State House reporters at the Saturday evening press conference when Corzine would sign the budget. The big question was would he line item veto lots of those Christmas tree items from the budget to free up funds for further deficit reduction and to send those old school, uncooperative legislators a message.

At the budget signing, the Governor line item vetoed some 53 items to save a rather modest $51.3 million dollars. When pressed by reporters, Corzine did not exaggerate what the new budget accomplishes in terms of tax reduction or providing new policy initiatives. But he insisted that after all the bickering and compromising, the end product goes "...a long way down the path toward fiscal integrity," at the very least because the state is now digging itself out of its fiscal hole rather than digging itself deeper in that hole.

In particular he noted the $1.1 billion payment to the state's pension system. And, while no one can defend the lengthy government shutdown, Corzine believes that state lawmakers have learned a lot from the experience. In the future there will be a greater commitment to paying for government programs with recurring revenues, for paying attention to the impact of government decisions on people and the economy, for making decisions "in the light of day" and not behind closed doors, and for doing so in a timely fashion.

Beyond these consequential changes in budgeting and policy-making, Corzine is committed to making the special legislative session this summer a highly productive one. Speaker Roberts spoke forcefully about the work that the legislature would do over the summer to reduce government spending and set the stage for property tax reform. In his Friday press conference Roberts explained how he and his colleagues in both chambers and parties would study state worker pension reform, school funding reform, regionalization and shared services.

For his part, Governor Corzine would focus on reengineering government operations and departments to rid the state of waste and inefficiency. Such steps are necessary to restore citizens' faith in government, something Roberts admitted that had been lost this budget season, and to save money before shifting away the reliance on property taxes. But citizens' faith in their public officials will quickly disappear unless lawmakers explain to them that lower property taxes will likely require hikes and other taxes and perhaps some loss of local control over schools. If not, it won't be just state and casino workers who will march on the State House.

David P. Rebovich, Ph.D., is Managing Director of the Rider University Institute for New Jersey Politics (www.rider.edu/institute). He also writes a regular column, "On Politics," for NEW JERSEY LAWYER and monthly reports on New Jersey for CAMPAIGNS AND ELECTIONS Magazine and is a member of CQPOlitics.com's Board of Advisors that provides weekly commentary on national political developments.

http://politics.nexcess.net/rebovich/2006/07/making_sense_out_of_the_budget.html


(In accordance with Title 17 U.S.C. Section 107, this material is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. Plainfield Today, Plainfield Stuff and Clippings have no affiliation whatsoever with the originator of these articles nor are Plainfield Today, Plainfield Stuff or Clippings endorsed or sponsored by the originator.)
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Saturday, July 08, 2006

State Budget - Ledger - Moran: Norcross casts dark shadow

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Published in the Star-Ledger, Wednesday, July 5, 2006

TOM MORAN, COLUMNIST

Norcross casts dark shadow on fiscal crisis

In his prime years during the McGreevey administration, the political boss George Norcross treated the Statehouse as his personal fiefdom.

He described the governor's suite as his "Trenton townhouse."

He shouted curses at the Senate co-president for all to hear, and even shoved him, according to reliable sources.

He threatened to shut down the state government if the Legislature didn't approve a subsidy for an arena in Pennsauken where his minor-league hockey team could play.

The Dark Lord of South Jersey wanted everyone to know that he was the muscle, and that he never backed down from a fight.

That's all changed now.

This year, Norcross has made himself nearly invisible.

No visits to his townhouse. No quotes in the press. No cursing and shoving.

The reason is that he is now a walking symbol of all that is wrong with New Jersey politics, thanks to secret recordings made during a corruption investigation that were released last year.

The tapes caught Norcross promising to castrate enemies, arranging phony jobs for friends, and giving government contracts to businesses that donated money, even if they were unqualified.

He bragged about the votes he controlled in the Legislature, saying politicians like Corzine would have to buckle under his power.

"They're all going to be with me," Norcross said. "Not that they like me, but because they have no choice."

After those tapes, most people were surprised to learn that their worst fantasies about how New Jersey politicians behave behind closed doors were actually true.

So you can understand why Norcross is laying low these days. Better to keep crazy Uncle George in the attic.

Still, the governor's office and leaders in the Senate believe they are dealing with Norcross in this showdown.

The opposition to the governor is led by South Jersey Democrats who rose to power in the Norcross machine, and continue to feed from it. He is the man who controls the money, and, as the tapes reveal, the jobs and contracts handed out by governments in South Jersey.

Mess with him, and you're cut off.

Today, Norcross is encouraging his troops to fight, even in the face of a government shutdown that will hurt a lot of regular people as it continues. This is just the kind of Rambo politics we heard on the tapes.

"I spoke to him Friday," says Sen. Stephen Sweeney (D-Gloucester), the chief opponent of the governor's budget in the Senate. "His advice was to stick to what I believe in."

The governor sees the fingerprints, too, noting that most of the intense opposition to his budget comes from Norcross allies.

Sweeney has bucked Norcross on occasion, so it's a mistake to think of these guys as puppets on Norcross' string. It's not that simple. Assembly Speaker Joe Roberts describes Norcross as a close friend and former business partner with whom he's formed an alliance of equals.

"He played no role in devising any strategy I'm involved with," Roberts says.

Maybe so.

But if a member of the Assembly sides with Corzine on the budget and defects from the South Jersey team, he will have Norcross to deal with. And that venom can be deadly.

This is the real puzzle that Corzine has to solve to win agreement on a budget.

As Norcross said on the tapes -- it's not because they like him, it's because they need him.

The irony is that Corzine helped to nourish this monster. In 2001, shortly after taking his seat in the U.S. Senate, he gave nearly $1 million to a political action committee controlled by Norcross, the most money he's given anyone ever.

Corzine thought he was buying good will in South Jersey.

Maybe now it's time to ask for a refund.

Tom Moran's column appears Wednesdays and Fridays. He may be reached at tmoran@starledger.com or (973) 392-1823.


(In accordance with Title 17 U.S.C. Section 107, this material is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. Plainfield Today, Plainfield Stuff and Clippings have no affiliation whatsoever with the originator of these articles nor are Plainfield Today, Plainfield Stuff or Clippings endorsed or sponsored by the originator.)
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State Budget - Ledger - Analysis: Corzine vs. Roberts

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Published in the Star-Ledger, Sunday, July 2, 2006

At center of impasse, a battle of two strong wills

BY JEFF WHELAN AND DEBORAH HOWLETT
Star-Ledger Staff


One is a former bond trader who climbed to the top of Wall Street amid high-stakes deals be fore spending his way into the governor's office. The other is a political warrior who spent three decades battling his way up from small-time campaigns to the third most powerful position in state government.

Now it boils down to who blinks first.

Behind the first state government shutdown in New Jersey history there are policy and political differences over whether the state should increase the sales tax. But it's also a test of wills between Gov. Jon Corzine and Assembly Speaker Joseph Roberts, two Democrats who may be putting their political futures on the line in an unprecedented Statehouse standoff.

"It's brinkmanship. It's nuclear conflict without the warheads. You get into an impasse like this and it's important to demonstrate your toughness, resolve and fortitude," said Ross Baker, a Rutgers University political science professor. And, he added, "These two guys are not necessarily conciliators by nature."

For both men, risk-takers who have a relationship that has run hot and cold, it could be a matter of political survival.

Corzine, the Trenton outsider who was elected last year to clean up a fiscal and political mess in Trenton, says an unpopular sales tax increase is necessary to get the state's fiscal house in order before tackling New Jersey's property tax crisis this summer.

He's looked to another CEO turned politician -- New York City Mayor Michael Bloomberg -- as a role model. Bloomberg made unpopular decisions such as raising property taxes early in his term, but eventually was credited with turning his city around and ultimately earned re-election.

"This was a defining moment for Governor Corzine," said Senate Majority Leader Bernard Kenny Jr. (D-Hudson). "The governor is exer cising his prerogative as chief executive and he's demonstrating courage and leadership. I think he be came the governor this week."

Roberts, a 19-year Statehouse veteran who captured the speaker's job last year after years of fighting for it, wants to use a payroll tax hike, cuts and other fiscal maneuvers to balance the budget. He says a sales tax increase -- if enacted at all -- is unacceptable unless "every single, solitary penny" is dedicated to reducing property taxes.

He finally won the speaker's job after leading the Democrats as they expanded their majority to 49-to-31 last year. But key swing districts are in South Jersey, and a tax revolt could endanger vulnerable Democrats allied to Roberts -- which could jeopardize his position as speaker.

"He thinks it's worth it," U.S. Rep. Robert Andrews (D-1st), a Roberts ally, said of the speaker's gamble. "Joe Roberts sincerely be lieves the sales tax is a bad idea. Obviously there's a political consequence. Joe thinks the majority is at risk."

Throughout his career, Roberts has been closely aligned with George Norcross III, a friend, former business partner and Camden County's Democratic power broker. Roberts said he has conferred with Norcross, a skilled political tactician, on this latest skirmish.

"We talk a lot," he said.

Roberts was in the Legislature when his political mentor, Gov. Jim Florio, raised taxes by $2.8 billion, triggering a tax revolt and costing Democrats control of Trenton for more than a decade. With polls showing voters oppose the sales tax hike by nearly 2-to-1, Roberts says he is determined not to make the same mistake.

When Corzine first entered politics six years ago, he and Roberts were adversaries. That's because Corzine faced Florio in a bitter Democratic primary during which he criticized the former governor for raising the sales tax.

But the two eventually became allies as Corzine poured nearly $1 million into Norcross' political action committee. Just seven months ago, Corzine and Roberts stood on a stage on Election Night, hoisting their joined fists in the air in a mo ment of shared triumph.

Earlier last year, Roberts and Norcross helped solidify South Jersey support for Corzine to keep then-Gov. Richard Codey out of the Democratic primary.

During the campaign, however, secretly recorded tapes from a state corruption investigation emerged that exposed Norcross' blunt, take-no-prisoners political style and his boast that he held sway over Corzine. Corzine quickly distanced himself from Norcross and his "pressure politics."

Now, Corzine is casting the shutdown as a battle between his desire to make tough decisions and the politics of Trenton insiders who wrecked New Jersey's finances.

"I am prepared to compromise and I have," he said yesterday. "But there will not be a continuation of the practices of the past that leave New Jersey practically in the same (fiscal) shape as the Ka trina- ravaged Gulf states."

Roberts has sought to cast Cor zine, the former Goldman Sachs CEO, as someone indifferent to the public, saying he's been "intractable" on the sales tax.

"The people of this state are paying a very dear price for his singular focus on the sales tax as the only way to balance the budget," he said.

No matter the outcome, the political repercussions may last.

Essex County Executive Joseph DiVincenzo, who was elected with Roberts' help but is now in Cor zine's corner, said there is speculation among Democrats that the political rupture could lead to a coup to replace Roberts as speaker. Di Vincenzo said the party is in the midst of a civil war.

"To me , it shouldn't come down to a north-south thing, but it appears that it is," he said.

Roberts and his allies say the caucus would never turn on him for seeking to protect their own political interests.

"Joe will emerge from this stronger than when he went in," said Andrews.

Both men insist their differences are not personal and say that despite their tough public talk, their meetings are cordial.

But Baker questioned how well they will be able to work together, especially as Democrats this summer seek to tackle property tax reform, which could decide the fate of the party's control of Trenton.

"These guys are involved in hand-to-hand combat," he said, "and the scars could be very long- lasting."

Staff writers Josh Margolin and Joe Donohue contributed to this report.

(In accordance with Title 17 U.S.C. Section 107, this material is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. Plainfield Today, Plainfield Stuff and Clippings have no affiliation whatsoever with the originator of these articles nor are Plainfield Today, Plainfield Stuff or Clippings endorsed or sponsored by the originator.)
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State Budget - Ledger - Mulshine: Cryan vs. Greenwald

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Published in the Star-Ledger, Thursday, June 29, 2006

PAUL MULSHINE, COLUMNIST

Ding! It's the rumble under the Rotunda

In this corner, representing North Jersey, we have Assemblyman Joe Cryan, son of a saloon keeper and owner of some of the sharpest elbows in Trenton.

In the opposite corner, representing South Jersey, we have Assemblyman Lou Greenwald, son of a Cherry Hill mayor and one of the sharpest dressers in Trenton.

Refereeing will be Assemblyman Albio Sires, son of a Cuban refugee and skilled in breaking up political clinches.

The venue for this epic bout was the Assembly Budget Committee yesterday morning. The Assembly Democrats are split along geographical lines over the question of raising the sales tax to 7 cents to balance the state budget for fiscal 2007, which begins after midnight tomorrow.

The North Jersey Dems, including Gov. Jon Corzine and state Senate President Richard Codey, favor the sales tax hike. The South Jersey Dems, meanwhile, see the tax hike as a recipe for disaster in next year's legislative elections.

The South Jersey side is right, if you ask me. South Jersey residents are already upset about being denied that big increase in property tax rebates Corzine promised during last year's gubernatorial campaign. Once safely in the Statehouse, Corzine canceled the rebate hikes. He then froze state aid to schools for good measure.

That means property taxes will go up. And now he wants to raise the sales tax as well, a move that pleases no one but the leaders of the Democratic machines of North Jersey.

It was this north-south tension that led to the near-punchout. I'm sorry to say I missed the action by a couple minutes. I was stuck in traffic for a half-hour thanks to the flood. That's right: As if there weren't enough problems in Trenton yesterday, the Delaware River was overflowing its banks. Roads were closed and the Statehouse itself was on the verge of being shut down.

The scene inside the building had all the makings of a low-budget movie. To hear the witnesses tell it, the only thing that stopped Cryan from clocking Greenwald was the imposing presence of Sires. "Cryan was as close to Greenwald as I am to you," Assemblyman Kevin O'Toole told me as we discussed the morning's events in the hall, standing about a foot apart.

O'Toole, an Essex County Republican, had a ringside seat for the Democratic donnybrook. Cryan lunged at Greenwald, O'Toole said, after the South Jersey representative called for state Treasurer Bradley Abelow to be summoned to the session. This was a blatant political ploy, but not a bad one. Still, Cryan seemed to take it personally, if the string of expletives issuing from his mouth was any indication. It was O'Toole's considered opinion that blood would have flowed if the imposing Sires had not interrupted the potential boxing match with some impressive sumo-style maneuvers.

The confrontation was unexpected but not unprecedented. It came almost four years to the day after another epic budget brawl. That was the one between South Jersey Democratic boss George Norcross and state Sen. John Bennett of Monmouth County, who was then the Republican leader.

Bennett is now a former state senator. Most people in Trenton attribute his election loss the following year to maneuvering by Norcross. Norcross denies it. He also denies initiating the fight with Bennett. In any case, those two had the good taste to get into it behind closed doors, so no one outside the room knows exactly what happened.

This altercation was right out there in the open. Worse, it was between two Democrats, not a Democrat and a Republican. Not exactly the best way to go into crunch time when compromise is essential.

Gossip in the hallways centered on who would have won the fight if Sires had not intervened. Cryan was the consensus favorite. "Greenwald's too concerned with his hair and his suit," said one wag. "When Joe Cryan leaves the house in the morning, he already looks like he's been in a fight."

As the day wore on and the floodwaters rose, top Democrats shuttled around the Statehouse trying to figure a way out of the budget impasse. It didn't look good, especially for Corzine. Politicians are supposed to pretend that they were dragged kicking and screaming into raising taxes. But the only screaming Corzine did was at that union rally last week, where he bellowed, "We will fight for a fair contract!"

He seemed to forget which side he was on. During the campaign, Corzine had assured voters that his former relationship with union leader Carla Katz would not keep him from driving a hard bargain with the unions.

"As the governor, you represent 8 1/2 million people," Corzine said last year. "You don't represent one union. You don't represent one person. You represent the people who elected you."

That promise lasted about as long as the other ones. We may not know who's going to win this fight, but I think I know who's going to lose.

Unless, of course, Corzine can find a way to adopt a budget without a tax increase. But where will he find the revenue?

Here's my suggestion: Let's put those Assembly committee meetings on pay-per-view.

Paul Mulshine is a Star-Ledger columnist. He may be reached at pmulshine@starledger.com.



(In accordance with Title 17 U.S.C. Section 107, this material is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. Plainfield Today, Plainfield Stuff and Clippings have no affiliation whatsoever with the originator of these articles nor are Plainfield Today, Plainfield Stuff or Clippings endorsed or sponsored by the originator.)
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State Budget - Ledger - Roberts mutinies

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Published in the Star-Ledger, Wednesday, June 28, 2006

Mutiny: Mr. Roberts won't come on board

BY JEFF WHELAN AND JOSH MARGOLIN
Star-Ledger Staff


Among the triumvirate of powerful Democrats who rule the Statehouse, Joe Roberts is the toughest to pick out of a crowd.

Jon Corzine is the former Wall Street wizard turned governor, and Richard Codey is the Senate president who wisecracked his way to record popularity in his 14 months as the state's chief executive.

But it was Roberts, the quiet, silver-haired Assembly speaker, who walked into the governor's office 12 days ago and set in motion a political drama that has left Trenton teetering on the brink of a state government shutdown.

Roberts flatly told Corzine that the governor's proposed sales tax hike to balance the state budget was dead in the lower house.

Taking on the governor -- who has the Senate president on his side -- is a huge political risk for a speaker who has been on the job less than six months.

"There's a lot at stake in this budget battle for Joe Roberts, and it's not just the substance of the state budget, but also the public's perception of him as a state leader," said former U.S. Sen. Robert Torricelli.

During an interview in his Statehouse office yesterday, the 53-year-old Camden County lawmaker made no apologies for a strategy that has opened up his party to potential civil war.

"I fight for what I believe in. I've always done that and I'll always do that," he said. "Democrats have core values and core beliefs. But it's not a monolithic party. We have different approaches to things."

Roberts served four years as Assembly majority leader under Speaker Albio Sires, who relied heavily on his experience as a parliamentarian and political strategist.

"Roberts is smart and very adept at explaining the substance of public policy. But beyond that, he's very good at explaining the political consequences of policy to his fellow legislators," said David Rebovich, a Rider University political science professor.

Roberts has been an elected official for more than three decades, beginning with the Bellmawr Board of Education. He was in the restaurant business until he sold two establishments and a nightclub to focus on government full time in 2003. One of his earliest jobs was running constituent services for Rep. Jim Florio, before Florio became governor.

"He's very, very serious. He's very substantive," said Florio. "He's not an outgoing extrovert, but he has a nice way about him. People like him and he's collegial and professional."

Roberts has represented Camden County in the Assembly since 1987. George Norcross III, the county's Democratic power broker whose crass style was caught on tape in a state corruption investigation, is a friend, close ally and former business partner.

Florio says it's "almost insultingly shallow" when critics suggest Roberts is doing Norcross' bidding, as some Democrats whisper. "He's his own man," Florio said.

Roberts is not stranger to political wars. He led a hard-fought campaign effort that increased the Democrats' Assembly majority by two seats last year.

Six years ago, he tried to oust veteran Hudson County Assemblyman Joseph Doria from the minority leader's job as South Jersey lawmakers sought more power in Trenton. He lost and Doria, now a state senator, kicked him off the powerful appropriations committee.

Last year, Roberts went to war with Codey over the budget. A bitter, six-day standoff ended after the Assembly backed down and agreed to $500 million in property tax rebate cuts. Codey also made concessions, such as scrapping $550 million in new taxes, but it was perceived he got the best of Roberts.

Some question whether Roberts is digging in against Corzine to avenge that.

"Is there lingering bitterness from last year? Is this the grudge match?" asked Assemblyman Kevin O'Toole (R-Essex).

Roberts said his defiance of the governor is all about property taxes. He said he won't accept a sales tax increase unless every penny of it goes toward property tax reform. He says property tax reform should come before a higher sales tax.

"I am convinced that the people of this state do not want to see a sales tax increase used to continue the status quo, to continue government as it is here in New Jersey," Roberts said. "But I think we can engage them in a debate about whether or not they would support a sales tax increase or other new revenues to offset our highest-in-the-country property taxes."

Joseph Marbach, chairman of Seton Hall University's political science department, called the gamble "an important test of Roberts' leadership."

"If he loses this, he might be looked at as compromised in his leadership ability, and that lends itself to a revolt within the caucus," Marbach said. "But if he wins, the opposite happens. He solidifies his position as speaker for maybe as long as he wants to be speaker."

(In accordance with Title 17 U.S.C. Section 107, this material is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. Plainfield Today, Plainfield Stuff and Clippings have no affiliation whatsoever with the originator of these articles nor are Plainfield Today, Plainfield Stuff or Clippings endorsed or sponsored by the originator.)
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State Budget - PoliticsNJ - Adubato: Corzine a statesman

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Published in PoliticsNJ, June 30, 2006

David P. Rebovich Column

Corzine is a "Statesman" in the budget battles

By STEVE ADUBATO, JR.

Here we are at the 11th hour. Actually, its a lot closer to the 12th hour. I filed this column mid-afternoon on June 30th. We're supposed to have a budget in place right now--the state constitution says so. If fact, the state is not supposed to spend money after July 1st if there is no budget. But far be it to let a little thing like a constitution get in the way of all the absurd, childish political games being played in the state house. Here's how I see it: Jon Corzine was elected as the state's Chief Executive to return some fiscal sanity to the state government. He wasn't elected because he's a great politician or an extraordinary orator. He's no back-slapper or glad-hander like Jim McGreevey. And frankly he doesn't know the ins and outs of the statehouse the way Former Governor and current Senate President Dick Codey did.

However, here's what I've seen from Jon Corzine so far; he's honest, smart, and he is really trying to do the right thing with the state budget. He's trying to tell the rest of us what he perceives to be the truth about how much money is coming in and how much is going out. He's trying to match expenditures to revenues and be a responsible Chief Executive, even if you disagree with his call to raise the sales tax from 6 to 7 cents on a dollar.

For this, he has been abandoned by a group of Assembly Democrats whose only concern seems to be not doing anything that might jeopardize their legislative control of the lower house. This group of Assembly Democrats are convinced that if they support Corzine on the sales tax hike (which would bring in approximately $1.2 billion of much needed revenue) they will risk voter wrath in the next election. First, I'm not buying it. Second, last time I checked, legislators are sent to Trenton to do the state's business in a responsible and prudent fashion, even if it requires that they explain what they've done to constituents, none of whom want their taxes raised. Because of this obsessive fear of a voter backlash, Assembly Democrats, lead by speaker Joe Roberts, have thrown the state government into totally unnecessary chaos.

Joe Roberts is normally a thoughtful and responsible legislator. But I couldn't disagree more with him and the Assembly Democrats who have followed his lead by drawing a line in the sand and telling Governor Corzine they will never support a budget that includes a sales tax hike. To his credit, Governor Corzine has held firm to his convictions. He believes, rightly so, that even if a sales tax hike is unpopular, it is the only way to responsibly balance this budget. He proposed this budget over 100 days ago. He told legislators that if they disagreed, they should come up with alternatives to bring in much needed revenue. Assembly Democrats did nothing until just a few days ago when they put forth a flimsy budget proposal that relies on one-shot revenues and gimmicks.

These are the kinds of fiscal actions that have caused such insanity in Trenton for too long. Corzine said "enough is enough." No more gimmicks. No more one-shots. He said revenues must match expenditures. What a radical idea in a state house filled with politicians who have gotten away with murder for too long by borrowing against the future, playing dangerous games to artificially balance the budget. In my book, Jon Corzine is far from perfect. But he is the most responsible and decent elected governor New Jersey has had in a long time.

I don't know if the government is going to shut down in the next few days. Obviously I hope it doesn't. But it would be a crime if such a shut down was blamed on Corzine for taking a principal and responsible position, which Assembly Democrats refuse to support. No matter how this turns out, all of us should feel proud that Corzine is the state Chief Executive, even if the last few weeks have been uncomfortable, uneasy, and sometimes chaotic. In many ways, Jon Corzine has acted like a statesman, which is unheard of in the State's house. Maybe that's what is making members of his own party so uncomfortable.

http://politics.nexcess.net/rebovich/2006/06/corzine_is_a_statesman_in_the.html


(In accordance with Title 17 U.S.C. Section 107, this material is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. Plainfield Today, Plainfield Stuff and Clippings have no affiliation whatsoever with the originator of these articles nor are Plainfield Today, Plainfield Stuff or Clippings endorsed or sponsored by the originator.)
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State Budget - PoliticsNJ - Rebovich: Budget crisis has deep roots

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Published in PoliticsNJ, June 18, 2006

Democrats budget crisis has deep roots

by David P. Rebovich

Hit the mute button on your remote, close your eyes, and let your imagination take you to October of 2007. Listen carefully, and you will hear a rich baritone voice intone the following. "They promised you tax relief and ethics reform. But in the last six years that they have held power in Trenton, New Jersey's Democrats have given you tax hikes, cronyism, and broken promises. Property taxes have soared by over 30 percent. Rebate checks have been cut in half. And when faced with another multi-billion dollar budget deficit of their own creation, what did the Democrats do? They raised the sales tax instead of cutting wasteful spending and jobs for their political allies. No wonder businesses are leaving the state and more people find it harder and harder to make ends meet. The only way to end this mess? Vote for Republicans for Assembly and Senate and say 'no' to the Democrats' destructive policies."

If you were wondering why there is a standoff between the Governor and the state legislature over the budget for fiscal year 2006-2007, it's because Democratic legislators fear a campaign next year in which Republicans run ads like the above. This fear came to a head late last week when Assembly Democratic leaders told Governor Jon Corzine that their members would not support the one-cent increase in the state sales tax he proposed in the new budget. Rejecting the sales tax hike is a serious political blow to the new Governor who has spent months trying to sell his tightly crafted, controversial proposal to the public. In practical terms, rejecting the sales tax hike creates a $1.2 billion hole in the budget that must be filled by either increasing some other taxes, cutting spending, or doing some combination of both.

None of these options are pleasant or easy. And, with the new budget required to be signed by July 1st, lawmakers do not have much time to decide what to do. How did the Democrats get themselves into this situation, one which may cause some New Jerseyans to think that the party in power is disorganized and not up to the task of governing during these tough times? There are several explanations, including the different perspectives of the branches of state government and constituencies they represent, the fact that Corzine is a political newcomer to state government, and the possibility that his budget may be too austere.

But, the most basic reason the Democrats have a crisis about the next budget is that they have for too long told their constituents that extensive government spending is possible because someone else, e.g., the rich, the business community, people in the next town, will pick up the tab. If not, the bill can simply be covered by some painless budget maneuver. Well, those days are gone, and Democrats are bickering over what to do about it.

To his credit, Governor Corzine has criticized his own party for irresponsible budget practices that hid the painful truth and said that he is willing to face the political consequences of taking corrective action. This is a big, lofty, and long-term goal, one that chief executives may adopt for themselves and that legislators, even those in the governor's party, are likely to resist. By virtue of his broad constituency and four year term, a governor can be concerned about the problems and needs of the entire state and its long-term well-being.

However, legislators are more likely to focus on their own districts and what their constituents need and want now. While running for reelection, as in the fall of 2007, incumbent senators and assemblymen do not want to talk about how they acted like statesmen and supported noble causes. That could sound like an excuse for failing to bring funds and programs from Trenton to help the folks back home.

But Jon Corzine ran for governor as an outsider with the blessings of the very people who are now bucking him for trying to live up to at least some of his campaign promises. Corzine said he would help New Jerseyans move beyond the politics of patronage and fiscal irresponsibility that drove up the cost of government, offended citizens' ethical sensibilities, and prevented the achievement of important policy objectives. In supporting Corzine for their party's nomination for governor over one of their own - Acting Governor Richard Codey -, Democratic legislators recognized that they needed a candidate who could credibly argue that he was not part of state government's ethical or fiscal quagmire that citizens associated with the party in power.

But did those Democratic leaders want merely an attractive candidate who would enable their party to hold on to the governor's office and then be a figurehead? Or, did they want someone who would help them reform their ways? When Corzine - who was a U.S. Senator and didn't need a new job-- campaigned on restoring ethical integrity to Trenton, citizens were be inclined to give him the benefit of the doubt. When he claimed he would use his extensive business experience to balance the state budget honestly, citizens were hopeful. After all, this former CEO wouldn't have an excuse if he fouled up the budget.

When Corzine took office, he showed that he wasn't kidding when he was campaigning. He called for comprehensive ethics reform, something that lawmakers have managed to avoid. Then he proposed a budget that was not as revolutionary as he claimed but did make some progress reversing the controversial fiscal practices of his Democratic and Republican predecessors. While spending would be increased, in large part because of mandates, so would revenues. The state would no longer rely on gimmicks to cover multibillion dollar deficits.

But the problem with Corzine's budget proposal was, of course, its political consequences. Many governors have proposed budgets that contained bad news in the form of tax hikes and spending cuts. However, to make the bad news a little more palatable, they have typically recommended some popular new programs or funding increases for some existing ones. Governors have done this for their own political good and to give legislators, who after all must pass the budget, reasons for supporting the proposal.

Corzine did not follow this formula. While there was bad news, in the form of higher taxes - especially the sales tax -, and spending cuts and freezes to higher education, towns and school districts, there was very little good news, conventionally understood. When asked what the good news was in the plan, Administration officials deadpanned that the new budget will put the state on the path toward fiscal integrity. This is a praiseworthy goal to be sure, and one that may earn Corzine a big chapter in the state's political history. But fiscal integrity is not likely to be an effective campaign theme if you are a Democratic legislator running for reelection next year.

This still leaves the serious question of what would make for a good new state budget and, yes, one that Democrats could campaign on next year. In the new world of gimmick-free budgets and citizens' resistance to pay higher broad-based taxes, Democratic legislators have a big problem. The may want to avoid making any cuts to an already lean budget proposal. But they don't want to support a sales tax increase which polls show is unpopular with most New Jerseyans.

This means that the Democrats will have to find another billion bucks in order to balance the new budget. Where can they find that kind of money? Well, Corzine and the legislature can rescind the entire rebate program, or part of it, from the budget and save a fortune. A popular move? Hardly. They can cut the Governor's initiatives for the needy and save a few hundred million dollars, so that middle class taxpayers can keep a few more bucks in their pockets. They can decrease, or even forego, the state's long overdue payment into the government workers pension fund. But this would perpetuate the state's fiscal problems rather than take a step toward alleviating them. They can support the recommendations of Sen. Steve Sweeney and Assemblymen Paul Moriarty and Gerry Green to ask state workers give back upwards of 15 percent of their salaries and fringe benefits.

The Democrats can also increase income tax rates on higher earners, despite the Governor's concern that such a move would have harmful economic consequences. And, they can look at the list of cuts the Assembly Republicans have been recommending on their web site for months now. No matter what the Democrats ultimately decide to do to balance the new state budget, they are likely to make some political enemies. You have to wonder if the Democrats wouldn't be better off simply stating that their party believes that the common good requires that the state have certain programs with certain levels of funding, and that most folks may have to pay a little more in taxes and fees. If New Jersey's Democrats are afraid to make that argument or don't know how to, the party has a bigger crisis on its hands than how to balance the new state budget.

David P. Rebovich, Ph.D., is Managing Director the Rider University Institute for New Jersey Politics (www.rider.edu/institute). He also writes a regular column, "On Politics," for NEW JERSEY LAWYER and monthly reports on New Jersey for CAMPAIGNS AND ELECTIONS Magazine. He is a member of CQPolitics.com's Board of Advisors that provides weekly commentary on national political developments.

http://politics.nexcess.net/rebovich/2006/06/democrats_budget_crisis_has_de.html

(In accordance with Title 17 U.S.C. Section 107, this material is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. Plainfield Today, Plainfield Stuff and Clippings have no affiliation whatsoever with the originator of these articles nor are Plainfield Today, Plainfield Stuff or Clippings endorsed or sponsored by the originator.)
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State Budget - NY Times - Corzine, Roberts differences drive confrontation

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Published in the New York Times, Wednesday, June 28, 2006

Political Memo
In Trenton, Democrats in a Tax War

By RICHARD G. JONES and LAURA MANSNERUS

TRENTON, June 27 — If nothing else, the stalemate between Gov. Jon S. Corzine and Democratic legislators over his plan to increase the sales tax has exposed a deep divide in the party that might not otherwise have been revealed.

As the Friday deadline to approve a new budget draws closer, blocs in the Assembly have broken into factions on the tax question. Republicans have held several meetings with Democratic opponents of the governor to build a bipartisan coalition. The opposition has gone so far as to draft an alternative budget that increases or extends almost a dozen others taxes in a plan intended to eliminate the need for the sales tax increase. It will be unveiled at an Assembly Budget Committee meeting on Wednesday.

Throughout the budget debate, however, one question has remained unanswered: What is the source of the division between the Democratic governor and the tax increase opponents, who are led by Assembly Speaker Joseph J. Roberts Jr.?

The dispute, State House observers inside and outside the government say, stems as much from a philosophical difference between Mr. Corzine and Mr. Roberts over the prospect of raising taxes as it does from each man's political calculations.

For Mr. Corzine, they say, the focus is largely on honoring his campaign promise to address the state's long-term fiscal problems. To Mr. Roberts, the priority is to ease the state's property tax burden in preparation for the re-election that his colleagues face in 2007.

One observer, David P. Rebovich, managing director of the Rider University Institute for New Jersey Politics, said Mr. Corzine was planning for the long-term consequences "and thinking New Jerseyans will make him and the Democrats pay if they don't somehow shore up the state's finances." Mr. Roberts, he said, is more concerned with the immediate consequences and "is thinking 16 months from now."

The inability to find common ground has the state in jeopardy of missing the June 30 budget deadline, which the state Constitution requires. The prospect raises the threat of a government shutdown over the long July 4th weekend.

On Tuesday morning, Mr. Corzine met with cabinet members to discuss plans in the event of a shutdown. Those plans would include closing the 12 casinos in Atlantic City and paring down the Department of Transportation staff for a shutdown.

Mr. Corzine was not optimistic that an agreement could be reached on Mr. Roberts's alternate plan. "I don't see any room for compromise based on what's been proposed," Mr. Corzine said last night in a radio interview on WKXW-FM.

Nevertheless, Mr. Roberts continued working to build support for his proposals. He met with Republican leaders, who have recommended $2.2 billion in cuts to Mr. Corzine's proposed budget that they say will eliminate the need for a tax increase.

Mr. Corzine has proposed increasing the sales tax to 7 percent from 6 percent, a move he estimates will raise about $1.1 billion in new revenue. He has also proposed increases in other taxes, including the cigarette tax, which, combined with the sales tax increase, are expected to generate about $2 billion. The governor has also proposed about $2.5 billion in cuts.

The money from the tax increases and the spending cuts are intended to close a shortfall of about $4 billion in the governor's $31 billion budget.

As details of Mr. Roberts's proposals have emerged, the emphasis has been on a combination of spending cuts that polls show are more popular with voters, and new or expanded taxes.

Under his proposals, the largest amount would come from extending a disability tax to include higher wage earners as well as creating a tax on computer repair and security services. Those three, Mr. Roberts says, would account for about $530 million of what he says would be $917 million in recurring revenue. He also proposed doubling the tax on rental cars from $2 to $4, adding a 3.5 percent surcharge on corporate business tax liability, and extending the sales tax to other items.

At the same time, Mr. Roberts has proposed $741 million in new spending cuts while restoring money to areas where Mr. Corzine has proposed reductions, including about $120 million for higher education.

Legislators who have held one-on-one meetings with the governor say they have asked him to campaign for them next year in exchange for their support with the budget. That support may be crucial for Democratic lawmakers, who hold a 49-to-31 advantage in the Assembly and are haunted by how the party lost its majority after raising the sales tax to 7 percent from 6 percent in 1990.

In a recent interview, Mr. Roberts recalled: "We started on Election Day with 43 seats and when the election was over we had 22. We were cut in half in one day."

(In accordance with Title 17 U.S.C. Section 107, this material is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. Plainfield Today, Plainfield Stuff and Clippings have no affiliation whatsoever with the originator of these articles nor are Plainfield Today, Plainfield Stuff or Clippings endorsed or sponsored by the originator.)
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State Budget - NY Times - Essex Dems support Corzine plan

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Published in the New York Times, Tuesday, June 27, 2006

Support Builds for Corzine's Sales Tax Plan


By RICHARD G. JONES

TRENTON, June 26 — With support building for Gov. Jon S. Corzine's proposal to balance the state budget through a sales tax increase, the top legislator in the New Jersey General Assembly persisted on Monday in what increasingly seemed like an improbable effort to defeat the plan.

Moving closer to a confrontation with Mr. Corzine, Assembly Speaker Joseph J. Roberts Jr. announced that he would submit an alternative budget that would not require raising the sales tax to 7 percent from 6 percent to offset a $4.5 billion budget shortfall.

The legislative maneuver by Mr. Roberts, who has led the opposition to the tax increase among Mr. Corzine's fellow Democrats, came on the heels of an early-morning announcement by the 10-member Assembly delegation from Essex County — one of the largest and more influential groups in the chamber — that they had broken ranks with the speaker and planned to support the governor's plan.

Not long afterward, State House officials, aides and lobbyists said that members of the Bergen County delegation — also with 10 members — as well as those from Hudson County were considering abandoning Mr. Roberts and supporting the governor's plan.

"Given that this is Corzine's first budget, it seems to me that this is something of a watershed moment," said Brigid Harrison, a political science professor at Montclair State University. "Roberts is attempting to stake his claim as a player in the process."

With just four days left until lawmakers vote on Mr. Corzine's $31 billion budget plan, Mr. Roberts said the Assembly Budget Committee would meet to consider a budget that did not increase the sales tax, and that might include elements of the Republican's proposed cuts.

Mr. Roberts, a Democrat of Camden County, made his intentions known soon after it was disclosed that last week he had in fact introduced a bill to raise the sales tax. The speaker said that he has advocated an increase to help offset the effects of the state's property taxes, which are among the highest in the nation, not to balance the budget.

But a spokesman for Mr. Corzine reiterated that the governor would not sign a budget that did not address the state's long-term fiscal problems.

"The governor has continuously said that he will not sign a budget that does not match recurring revenues with recurring expenses," said the spokesman, Anthony Coley. "That continues to be his position."

Still, State House observers said the move by Mr. Roberts was a strategic one: in essence, the speaker assured that if any tax increase is considered by the Legislature, he will be able to influence both the debate as well as where any money that it generates will be used.

"I will not post this bill — or any other bill to increase the sales tax one penny — for purposes of balancing the state budget," Mr. Roberts said in a statement.

Aides to Mr. Roberts said that the speaker met Monday with Republican leaders, who last week proposed $2.2 billion in budget cuts that they said would eliminate the need for a sales tax increase.

The events on Monday were the clearest sign yet that the budget debate had broken down into two camps: one led by the Mr. Corzine and to a lesser extent Senate President Richard J. Codey, who has acknowledged the need for a tax increase, and the other by Mr. Roberts.

Mr. Corzine's campaign for a sales tax increase was given a significant lift early Monday when the Essex County legislators said that they would support the increase.

Despite the support expressed by the Essex delegation, it was still unclear whether the Democrats have already secured the 41 votes necessary to pass the sales tax measure in the Assembly. Democrats have a 49-to-31 majority in the lower house.

Still, the Essex County Assembly members — who are aligned with Mr. Codey — represent an influential voting bloc in the lower house.

"Collectively, we looked at it and think that it's an important thing for us to support the governor as well as the most fiscally responsible thing to do in the long run," said Assemblyman John F. McKeon, one of the Essex legislators.

Mr. McKeon said that he and the other members of his delegation were convinced that the increase was the best way to deal with the state's recurring fiscal problems.

"You have to look at next year and the year after that and as far as long-term stability, it's time for us to pay the bills," Mr. McKeon said.

Still Democrats remain divided over whether the increase is the best solution. "You know how to make a banana split — you cut it and put ice cream in the middle? We're the banana," said Assemblyman Joseph Cryan of Union County, who is also the chairman of the Democratic State Committee. "There're a lot of concerns. Nobody wants to do this. We're just concerned about making sure that it's the right policy for the state."

(In accordance with Title 17 U.S.C. Section 107, this material is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. Plainfield Today, Plainfield Stuff and Clippings have no affiliation whatsoever with the originator of these articles nor are Plainfield Today, Plainfield Stuff or Clippings endorsed or sponsored by the originator.)
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Friday, July 07, 2006

State Budget - Ledger - Roberts' plan angers Corzine

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Published in the Star-Ledger, Wednesday, June 28, 2006

Assembly confronts a rewrite of budget
Roberts' alternative angers governor

BY JOE DONOHUE AND DUNSTAN McNICHOL
Star-Ledger Staff


As state government braced for a possible shutdown, rebellious lawmakers yesterday unveiled a budget plan that leaves out Gov. Jon Corzine's sales tax increase, and the governor promptly threatened to veto it.

A showdown will come today when Assembly Speaker Joseph Roberts (D-Camden) tries to push the alternative plan through the Assembly Budget Committee. While it would leave the sales tax unchanged, it would increase corporate taxes and the disability tax on wages.

Statehouse sources said Corzine personally was phoning Democratic members of the committee urging them to vote against it. Corzine also said it would not be posted in the Senate.

On New Jersey 101.5 FM last night, Corzine was asked if he would veto a spending plan that failed to include the $1.1 billion sales tax hike. "As of tonight, yes," he said. "I don't see any room for compromise based on what has been proposed."

"I still don't see an alternative that's complete, nor do I see one that I think is workable. So we've got a lot of work to do," he added.

Roberts remains equally resolute in his opposition to Corzine's plan to raise the 6 percent state sales tax to 7 percent. The governor insists the extra money is needed to help stabilize the state's long-term finances.

Roberts contends any sales tax increase should be used solely to lower property-tax bills. He introduced a $30.4 billion alternative budget -- $442 million less than Corzine's plan -- that excludes the tax hike.

"This is it: Any proposal to raise the sales tax from 6 to 7 percent that does not use every single, solitary penny of that sales tax increase for property tax reform, I view to be unacceptable. Is that clear?" Roberts said in an interview.

With the budget year ending at midnight Friday, Corzine met with his Cabinet earlier yesterday to discuss plans for a possible government shutdown. Over doughnuts and coffee, the governor pressed his department heads on preparation details, such as what the Corrections department is doing to keep prisons safe.

"This is Boy Scout stuff -- be prepared," said Anthony Coley, the governor's spokesman, after the meeting. "We hope and expect to have a budget by the deadline."

The possibility of a shutdown already was causing anxiety for state workers. "I am concerned and my membership is concerned," said Sherryl Gordon, representing the American Federation of State, County, and Municipal Employees. Gordon said her members "are dedicated and hard-working and they will show up," but she worries they won't get paid for working during a shutdown.

As details of the Assembly budget alternative emerged yesterday, perhaps the biggest surprise was a bill (A-4713) that seeks a $370 million increase in the state disability tax on wages. The increase would help pay for hospital care for the poor now that Corzine has dropped plans to impose a new tax on hospital beds.

The plan would extend the 0.5-percent payroll deduction used to fund the state's Temporary Disability Insurance program, now applied to every worker's first $25,800 in income each year. The new threshold would be the worker's first $94,000 of income.

Assembly Budget Committee Chairman Lou Greenwald said for a person earning the median New Jersey income of $33,000 per year, the increase would amount to $38 a year, compared with the $250 average the sales tax increase would cost. But the Treasury Department released figures showing the wage tax proposal would cost more than $250 for anyone earning $75,000 or more.

Corzine said last night the new tax would be "a huge, huge increase in the middle income taxes. That's a bad idea."

Greenwald called that misleading. "This is why we can't get this budget completed," he said. "How can you reach a resolution when the administration just keeps kicking wrong figures around and making misrepresentations about the good-faith, responsible alternatives that we are putting forward?"

The Assembly proposal also would eliminate the 10 percent increase Corzine proposed in state tax rebates. It would boost corporate taxes by $102 million; impose a 1 percent supplemental registration fee on gas-guzzlers and on luxury cars that cost more than $45,000; and double the current $2-per-day surcharge on car rentals to raise $24 million.

It eliminates a plan to collect $24 million from rural communities for State Police patrols, and restores $120 million for colleges and universities -- less than half the $308 million cut by Corzine.

Greenwald said the new plan is responsible.

"Our budget as proposed will spend less, and it will finish the year with $238 million more in surplus," said Greenwald. "I will promise you that this will get out of committee" today, he said.

The four Republicans on the committee are not prepared to support the plan, said their ranking member, Assemblyman Joseph Malone (R-Burlington). That means Greenwald will need votes from at least seven of the eight Democrats.

The proposal includes sweeteners that could help land those votes. For instance, it eliminates Corzine's proposal to raise $30 million by forcing certain parents to pay for after-school programs in needy communities, a concern of Assemblyman William Payne (D-Essex).

Approval of the alternative budget would set up a conflict among Corzine, Democrats in the Assembly, and the Senate, which is also controlled by Democrats. "It's like three trains that are going to collide on the track," said Malone.

Staff writers Susan Livio, Jeff Whelan and Josh Margolin contributed to this report. Joe Donohue covers state government and politics. He may be reached at jdonohue@starledger.com or (609)-989-0208.

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(In accordance with Title 17 U.S.C. Section 107, this material is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. Plainfield Today, Plainfield Stuff and Clippings have no affiliation whatsoever with the originator of these articles nor are Plainfield Today, Plainfield Stuff or Clippings endorsed or sponsored by the originator.)
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State Budget - Courier - Green eyes pensions to ease budget

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Published in the Courier News, Saturday, June 17, 2006

Lawmakers eye pensions as way to ease budget crisis

By JONATHAN TAMARI
Gannett State Bureau


TRENTON -- As Assembly Democrats line up against a proposed sales tax increase, the state's payment to public employees' retirement funds could be on the chopping block, according to four people familiar with discussions among lawmakers and Gov. Jon S. Corzine's administration.

Assembly Democrats seeking alternatives to the tax will try to find some savings by cutting Corzine's pension contribution, the sources said. But one legislative source, who spoke on the condition of anonymity, said the payment to public workers' retirement plans would still exceed $1 billion, which would be larger than the past 10 payments from the state's general fund combined.

Corzine has called for paying $1.3 billion into the system, which faces an $18 billion long-term deficit after years in which required contributions weren't made.

Even the contribution Corzine recommends is only about 70 percent of what is required, and any reduction will likely draw the wrath of public employee unions, who plan to rally at the Statehouse today.

Assemblyman Jerry Green, D-Plainfield, said last Thursday that Corzine's proposed contribution would be too much of an increase this year.

"To do it all at one time, we just can't afford to do that," Green said.


Corzine's proposed pension contribution is $1.1 billion larger than the state paid during the current budget. The state would raise the same amount of money by increasing the sales tax from 6 percent to 7 percent.

Lawmakers in both houses have vowed to kill several proposed taxes, but there is no consensus yet on the sales tax increase.

Assembly Democrats said last Friday that a budget that includes the sales tax hike "would be unachievable," potentially setting up a conflict with the Democrat-controlled state Senate, where the plan has more support.

"The breadth of opposition to the current sales tax proposal was extensive, and it was spread among the entire caucus," Assembly leaders said in a statement Friday.

As the two houses head into the final two weeks of negotiations, Senate President Richard J. Codey, D-West Orange, said through a spokeswoman that he looks forward to meeting with Corzine and Assembly Speaker Joseph J. Roberts Jr., D-Camden, today.

Corzine has called for a significant reduction in the use of "one-shot" revenue streams that only temporarily plug budget holes but aren't available the following year, as well as for making a "good-faith" effort to fund the state's retirement system.

"It's time for the state to start fulfilling its obligations," Corzine spokesman Anthony Coley said. "It's time for us to start matching recurring revenues with recurring expenses and stop relying on one-time revenue sources."

http://www.c-n.com/apps/pbcs.dll/article?AID=/20060617/NEWS/606170311


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(In accordance with Title 17 U.S.C. Section 107, this material is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. Plainfield Today, Plainfield Stuff and Clippings have no affiliation whatsoever with the originator of these articles nor are Plainfield Today, Plainfield Stuff or Clippings endorsed or sponsored by the originator.)
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About Me

Plainfield resident since 1983. Retired as the city's Public Information Officer in 2006; prior to that Community Programs Coordinator for the Plainfield Public Library. Founding member and past president of: Faith, Bricks & Mortar; Residents Supporting Victorian Plainfield; and PCO (the outreach nonprofit of Grace Episcopal Church). Supporter of the Library, Symphony and Historic Society as well as other community groups, and active in Democratic politics.