July 27, 2004
DeCROCE:
CONSEQUENCES OF UNCONSTITUTIONAL DEMOCRAT BORROWING BEGIN TO EMERGE
Assembly Republican Leader Alex DeCroce said that today’s
decision by two major rating agencies – Standard & Poors and Fitch
Ratings – to lower the state’s credit rating is just the first of
many negative consequences of the Democrat decision to balance this
year’s budget with nearly $2 billion in unconstitutional deficit
bonding.
"There are now only four states in the country with a worse
rating than New Jersey," said DeCroce, R-Morris, Passaic. "This is
what happens when the governor and the Legislature refuse to approve
a balanced budget."
Assembly Republican Budget Officer Joseph Malone had warned in a
statement issued on March 15 that a decision by Moody’s Investor
Service placing New Jersey’s bond rating on the "watchlist" for a
possible downgrade demonstrated the reason why Governor McGreevey
should get voter approval for his plan to borrow $1.9 billion to
balance this year’s budget.
"This is exactly the type of reaction from the financial
community that we feared," DeCroce said. "Now it will be more costly
for state and local governments to borrow for legitimate capital
needs like schools and roads."
In a press release issued by Standard & Poors on the bond rating
downgrade the agency states, "The adopted fiscal 2005 state budget
makes no strides toward structural balance and relies heavily on the
use of nearly $2 billion of 30-year deficit financing bonds to
balance general fund operations, in addition to $800 million of
one-time revenues."
The Standard & Poors statement also notes that, "The state, which
has borrowed to balance its budget in each of the last three fiscal
periods, has shown an apparent unwillingness to take appropriate
actions to achieve structural balance."
"We challenged this borrowing in court because we knew it was not
fiscally responsible," DeCroce said . "Now independent rating
agencies are echoing those concerns about the state’s financial
picture."
DeCroce said the state’s latest fiscal problems could have been
avoided had McGreevey chosen to keep his campaign pledge to not
balance budgets with borrowing. In 1997, then candidate McGreevey
said of such "borrow-and-spend gimmickry," that "For this, the
taxpayers will get nothing in return except debt."
#####
July 26, 2004
SUPREME COURT RULES
DEMOCRAT BUDGET VIOLATES NEW JERSEY CONSTITUTION
Assembly Republican Leader Alex DeCroce
issued the following statement today in reaction to a New Jersey
Supreme Court ruling that the Fiscal Year 2005 budget passed by the
Democrat Legislature last month is unconstitutional, but that it
will be permitted to remain in effect:
"Today’s ruling offers hope that deficit bonding will not
become a common budget balancing gimmick in future years, but it
failed to prevent the fiscal disaster that this current budget will
surely create.
"I am pleased that the Supreme Court today agreed with
Republicans that deficit bonding is unconstitutional and that it
should not be used as a budget balancing strategy in the future. I
am disappointed that the court decided to allow the Democrats to get
away with this unconstitutional and fiscally irresponsible act in
the current year budget.
"In this case the court has correctly interpreted the New Jersey
Constitution. For the taxpayers of this state it is unfortunate that
the court was not willing to follow through on that ruling and
invalidate this unconstitutional budget. The Democrats, however,
still have that option.
"I hope Governor McGreevey and the Democrats will act responsibly
and remedy this situation so that our taxpayers and future
generations are not burdened by this debt."
#####
July 13, 2004
GREGG: WATLEY MUST GO
Assembly Republican Conference Leader Guy Gregg
today said Commerce Secretary William Watley should step down from
his post after revelations that his office handed out taxpayer
funded jobs to several of his top aide’s relatives – including
one individual who lives in California.
"This is an abuse of taxpayer money, an example of the worst
form of nepotism, and it is an insult to qualified, dedicated state
workers in New Jersey," said Gregg, R-Sussex, Morris and
Hunterdon. "I believe the time has come for Reverend Watley to
step down from his post. And if he is unwilling to do so, Governor
McGreevey should remove him."
"It is disturbing that Governor McGreevey and the Democrat
Party have turned a blind eye to the incessant reports of
questionable and corrupt activities by current and former
administration members and close associates," Gregg added.
The Star Ledger yesterday reported that the mother, two
sons, and nephew of the former top aide – Lesly Devereaux – to
Watley were all on the agencies payroll during her time at the
Commerce Commission.
Yesterday’s story indicates that Devereaux’s 64-year old
mother was given a marketing consulting contract in November 2003,
and that her sister was paid for consulting work done while she
lived in California.
All of this came after it was revealed several weeks ago that
Devereaux’s sister had received a no-bid contract for
"consulting" work despite having a criminal record in
another state. It is not clear what consulting services she
provided.
"If Watley knowingly allowed this to take place he is guilty
of poor decision making," Gregg said. "If he was unaware
that these questionable decisions were being made by his
subordinates, than he has demonstrated his inability to control what
is going on in his office."
"Either way, for a man who entered this job with
questionable qualifications, the time has come for a change,"
Gregg concluded.
#####
July
1, 2004
ASSEMBLY
REPUBLICAN LEADER REACTS TO COURT DECISION
Assembly Republican Leader
Alex DeCroce, a plaintiff in the legal challenge that seeks to
invalidate the McGreevey Administration’s attempt to balance the
new budget with money the state doesn’t have, expressed
disappointment at today’s ruling by Superior Court Judge Linda
Feinberg allowing the deficit bonding plan to proceed. But he said
he remains optimistic that time will relegate the lower court ruling
to "a temporary setback."
"We will continue to
fight for the taxpayers and appeal this decision all the way to the
state Supreme Court, if necessary," said DeCroce. R-Morris,
Passaic. "There is too much at stake, for taxpayers today and
generations to come, to allow the McGreevey Administration to embark
on this fiscally reckless and illegal course. I believe our
arguments are constitutionally sound and am optimistic that a
majority of the Supreme Court justices will agree with our position.
"The balanced budget and
debt limitation provisions of the State Constitution must stand for
much more than what the judge ruled today," DeCroce added.
"The governor’s bonding scheme will punish taxpayers and
threaten the state’s fiscal stability for decades. If this
decision is allowed to stand, the balanced budget and debt
limitation clauses will be become meaningless. There would be
virtually no limitation on the state’s ability to borrow money –
and sooner or later New Jersey could face bankruptcy, in much the
same way New York City and Orange County, California did in the
past."
"We can have a budget
that is fiscally responsible, maintains all essential services and
provides tax relief without borrowing nearly $2 billion and
mortgaging the state’s future simply to pay for current
expenses."
"On every level, it is
wrong to for our children and grandchildren pay for a single year’s
worth of state services that will have no enduring benefit."
# # # # #
August 31, 2004
HAS McGREEVEY
ALREADY LINED UP A POST-RESIGNATION TAXPAYER FUNDED PATRONAGE JOB?
Assembly Republican Leader Alex DeCroce
today said that he was troubled by reports that soon-to-be Acting
Governor Richard Codey may appoint Governor McGreevey to head up the
state’s new stem cell institute after the governor leaves office and
that McGreevey should state on the record whether he has any
intention of taking this job.
"Governor McGreevey is leaving office because he demonstrated
terrible judgment and put his personal interests ahead of those of
the taxpayers," said DeCroce, R-Morris and Passaic. "It would be a
terrible insult to those taxpayers if he was now handed a publicly
funded patronage job by his Democrat successor."
The North Bergen Reporter reported this week that sources
had indicated McGreevey was likely to be named by Codey to head up
the stem cell institute McGreevey established last May. McGreevey’s
office would not issue any comment on the story other than a
statement touting the institute. The Wall Street Journal today published an editorial opposing the hiring of McGreevey.
"This position would be nothing more than a golden parachute for
Jim McGreevey at the expense of New Jersey taxpayers," DeCroce said.
"Jim McGreevey is as qualified to head a stem cell research center
as Golan Cipel was to oversee homeland security."
"What qualifies Jim McGreevey for this position?" DeCroce
asked. "McGreevey should be shown the door, but a revolving door is
just another insult to the taxpayers."
DeCroce said this appointment would be another blatant example of
how the Democrats place their own interests ahead of the public
interest.
"This doesn’t pass the smell test," DeCroce said.
DeCroce noted that McGreevey’s decision to take a job at this
publicly funded institute would seem to contradict the principle
behind a constitutional provision barring legislators from taking
publicly funded state positions created by laws passed during their
term in the Legislature. In this case McGreevey would be taking a
job created by a law he signed.
"If that provision makes sense for legislators, it would seem to
make sense for governors as well," DeCroce said. "Particularly
governors who have not been able to complete their term in office
after becoming enveloped by scandal."
Assemblyman Bill Baroni has introduced legislation, A-2501, that
would amend the New Jersey Conflict of Interest Law to formally
include the governor and the Office of the Governor under those
ethical guidelines.
#####
August 26, 2004
O’TOOLE
APPOINTED BY DeCROCE TO PROPERTY TAX CONVENTION TAX FORCE
Assembly Republican Leader Alex DeCroce today announced that he
has appointed Assemblyman Kevin O’Toole to serve as his appointee to
the property tax convention task force that will study the
possibility of calling a constitutional convention to reform New
Jersey’s property tax system.
"I appreciate being chosen to serve in this important role and
look forward to the opportunity to explore the various sides of this
proposal," said O’Toole, R-Essex, Passaic and Bergen. "I believe
that something must be done to create meaningful property tax reform
in this state, and this is certainly one of the leading options."
The Legislature authorized the creation of a property tax
convention task force in legislation passed on June 21 by a 63-16-1
vote in the General Assembly. That bill was signed into law on July
7 and creates a 15 member task force including one appointee chosen
by the Assembly Minority Leader.
"While I have expressed some concerns about a constitutional
convention approach, it is one of the more widely supported
proposals on the table and deserves thorough consideration," said
DeCroce, R-Morris and Passaic. "I know that Assemblyman O’Toole will
provide significant insight into this issue and will be a diligent
and active representative of our caucus on this task force."
O’Toole said he is looking forward to the opportunity to
participate in the process.
"Property taxes are a primary concern for most homeowners in New
Jersey and we need to address this problem now," O’Toole said.
"Considering the merits of a constitutional convention approach is a
good first step."
#####
August 19, 2004
DeCROCE SAYS STATE SHOULD PULL DOWN
McGREEVEY’S SELF-PROMOTIONAL ADS
Assembly Republican Leader Alex DeCroce today said the state
needs to pull down the millions of dollars in television
advertisements featuring Governor McGreevey which he said were never
anything more than an effort to boost McGreevey’s image.
"These advertisements were designed as a way for the governor to
boost his public image at taxpayer expense," said DeCroce, R-Morris
and Passaic. "These ads now serve only to remind the public of the
governor’s poor judgment and the corruption that has surrounded this
administration."
Over the past three years the state has spent an estimated $30
million on promotional television and radio advertisements as well
as mailings featuring Governor McGreevey. This included ads focused
on tourism, business promotion, auto insurance and the governor’s
literacy program.
The governor has been criticized for his appearance in these
advertisements with many people saying they served solely as a
promotional or public relations vehicle for the governor.
"These ads are continuing to cost the taxpayers and we should put
a stop to it right now," DeCroce said. "I hope that the governor
will do the right thing and pull down these advertisements
immediately."
DeCroce said that the soon-to-be acting governor, Senate
President Richard Codey, should state unequivocally whether he
intends to follow the lead of his ally Governor McGreevey and appear
in such ads.
"Whether it be before September 3, or after, Senate President
Codey will be taking over as acting governor," DeCroce said. "I
think he should make a commitment to the taxpayers that he will not
appear in these types of taxpayer funded advertisements as acting
governor."
#####
August 19, 2004
THOMPSON:
McGREEVEY MUST GO! VOTERS MUST BE HEARD
Assemblyman Sam Thompson today said that regardless of U.S.
Senator Jon Corzine’s announcement yesterday, Governor McGreevey
needs to step down immediately and allow for a special election to
take place this November.
"A small group of Democrat powerbrokers should not be
determining whether or not the people have the right to select their
new governor," said Thompson, R-Middlesex, Monmouth. "The
constitution is clear on this matter and the governor owes it to the
people of this state to step aside now."
Thompson said that while the discussion thus far has focused on
who the Democrats would run as their candidate in a special
election, the real question is whether the people are entitled to a
special election.
"Governor McGreevey is not able to do his job effectively under
these circumstances," Thompson said. "He is hiding from the media,
and waiting every day for another bombshell to hit. If he can’t do
his job to the best of his ability, he should step down now."
Thompson said that only political motivations would prevent the
governor from resigning now in time for there to be a special
election.
"By reaching a decision that the governor will wait to resign
until November 15, the Democrats have effectively stopped an
election from taking place," Thompson said. "The voters of this
state can only reach one conclusion from this decision: The
Democrats do not trust them to pick a new governor."
Thompson said he intends to continue pressing the governor to
do what is right and will be urging the public to make their voices
heard on this matter.
#####
August 19, 2004
MERKT:
McGREEVEY REFUSAL TO QUIT
NOW IS A SLAP IN THE FACE TO THE PEOPLE
Assemblyman Rick Merkt (R. – Morris) today reiterated his call
for Governor McGreevey to resign immediately, charging that
McGreevey's hanging on as governor is nothing but a politically
motivated ploy to deny the voters their constitutional right to
elect the next chief executive this November.
'The personal scandal plaguing Jim McGreevey is merely symptomatic
of a much larger problem gripping Trenton: a systemic culture of
corruption infesting the state capitol,' asserted Merkt. 'The right
thing to do is clear and indisputable: The governor should step down
now and let the people pick his successor.'
Merkt pointed out that the governor cannot possibly focus on
carrying out the duties of his office, given the personal and legal
distractions he is currently facing, and that this makes him unable
to govern - a fact McGreevey himself admitted during his speech a
week ago.
If McGreevey steps down now, Senate President Richard Codey would
take over as acting governor until the November election.
Merkt noted that Codey has already served as acting governor on
numerous occasions in the past, so no extended transition period is
needed, contrary to Governor McGreevey's assertion last week.
McGreevey's immediate resignation would let voters decide who fills
the state's most powerful office for the next year.
'Whether or not voters get to exercise their constitutional right to
an election should not be determined by what Senator Corzine finds
politically convenient,' declared Merkt. "State Democratic bosses
may rig the system to cheat the people out of their right to vote
this year, but they may pay a heavy price next year when an angry
public finally gets its say in who governs New Jersey,' he
predicted.
#####
August 17, 2004
GREGG
CALLS ON STATE TO PULL DOWN McGREEVEY ADS
Assembly Republican Conference Leader Guy Gregg today called on
the state to pull down the millions of dollars in television
advertisements now running on television featuring Governor
McGreevey saying that the ads never served a positive purpose for
the state’s taxpayers.
"These advertisements were never anything more than a way for the
Governor to repair his public image at taxpayer expense," said
Gregg, R-Sussex, Morris and Hunterdon. "Now that his public image is
beyond repair, these ads serve only to remind people of the endless
string of scandals surrounding this administration."
Over the past three years the state has spent an estimated $30
million on promotional television and radio advertisements as well
as mailings featuring Governor McGreevey. This included ads focused
on tourism, business promotion, auto insurance and the governor’s
literacy program.
Many observers had criticized the governor’s involvement in these
advertisements saying they served solely as a promotional or public
relations vehicle for the governor.
"These advertisements have cost the state’s taxpayers enough
already," Gregg said. "We should put a stop to these ads and not
waste any more money than the state already has on this public
relations strategy."
The administration argued that McGreevey agreed to participate in
the ads when told by ad consultants that it was useful to have New
Jersey’s top official promoting the state.
"Very soon Governor McGreevey will no longer be our state’s top
official," Gregg concluded. "So the credibility of that explanation
has now expired."
#####
August 17, 2004
DeCROCE: IT IS TIME FOR JON CORZINE TO ANSWER SOME QUESTIONS
Assembly Republican Leader Alex DeCroce
today said that he believes it is time for U.S. Sen. Jon Corzine to
begin answering some questions regarding Governor McGreevey and
whether he should stay in office under the current ethical cloud.
"Senator Corzine apparently has no problem sending
behind-the-scenes signals that he wants to be governor, but publicly
he has been strangely quiet," said DeCroce, R-Morris and Passaic.
"As one of the top elected officials in the state, I think Senator
Corzine owes it to the people to state clearly whether he believes
Governor McGreevey should step down immediately.
"He should state clearly, and unequivocally, whether he believes
the voters should have the chance to choose McGreevey’s successor in
November."
Newspaper reports in recent days have stated that Corzine has
indicated he will run for governor if McGreevey can be convinced to
step down before the September 3rd deadline. Other party
leaders like Assemblyman Joe Cryan appear to be calling for
McGreevey to stay in office – quite possibly until the end of his
term.
"Jim McGreevey has admitted he cannot serve, yet he remains in
office. Where does Jon Corzine stand?" DeCroce asked. "If he
believes he is ready to offer himself as a potential leader of this
state he should be willing to take a public stand on this most
important issue."
DeCroce said it is not right for a small group of Democrat party
bosses to meet behind the scenes to decide whether or not the people
of New Jersey should be permitted to exercise their constitutional
right to select the state’s governor.
"Jon Corzine should put a stop to this by stating his views and
announcing his plans," DeCroce said.
It has been reported today on the political website
PoliticsNJ.com that Corzine met privately with Senate President
Richard Codey today to talk about allowing Codey to serve for 14
months and letting Corzine be the candidate in 2005.
"Jon Corzine should not be having these discussions in private,"
DeCroce said. "And if he is this reluctant to commit to a course of
action, maybe he should rethink his plans anyway."
DeCroce noted that just three weeks ago Senator Corzine praised
Governor McGreevey saying that he was "proud to have (McGreevey) as
my governor" and that he wishes "he could have a record like (McGreevey’s)."
"Maybe Senator Corzine thinks the Governor shouldn’t resign at
all," DeCroce concluded. "If so, he should let that be known as
well."
#####
August 12, 2004
DeCROCE
STATEMENT ON McGREEVEY
Assembly Republican Leader Alex DeCroce issued the following
statement today in response to Governor McGreevey’s statement on his
sexual identity and news reports surrounding the possible reasons
for that announcement:
"Today was obviously a difficult day for Governor McGreevey
and his family. I think we all need to show compassion for his
family at this time. We should wait to hear what other facts come to
light regarding this matter, so that we can all make an informed
decision as to what is the appropriate course of action in the
coming days. Once those facts come to light, it is the obligation of
the Governor and all of us to do what is in the best interest of New
Jersey."
#####
August 4, 2004
KEAN AND CORODEMUS
SEEK TO BOLSTER RECENT SUPREME COURT DECISION ON STATE BORROWING
Assemblymen Sean Kean and Steve Corodemus today joined Assembly
Republican Leader Alex DeCroce, a number of local officials and
activists in seeking approval for a constitutional amendment
designed to prevent the McGreevey administration from circumventing
a recent Supreme Court decision that would bar the state from
borrowing for operating expenses next year.
"The Supreme Court ruled last week that borrowing for operating
expenses to balance a budget is unconstitutional," said Kean,
R-Monmouth. "We need to make sure that the McGreevey administration
does not seek to find a loophole in this ruling to borrow more money
in next year’s budget."
Kean and Corodemus have introduced a bill, ACR-181, that with
voter approval would amend the state constitution to prohibit
borrowing for operating expenses. The bill would also make it
impossible for administrations in future years to move items
off-budget and then to borrow through separate state authorities to
pay for those programs.
The two legislators said that while they believe the constitution
is clear on this issue they believe this amendment is necessary to
prevent an endless cycle of borrowing, litigation and "one-time"
green lights from the courts.
"We have heard rumors that the administration might move some
higher education grants off the state budget and require the
Educational Facilities Authority to bond for those costs," said
Corodemus, R-Monmouth. "This would be a dangerous and fiscally
reckless way of getting around last week’s Supreme Court ruling. We
must not permit this to happen."
DeCroce joined Kean and Corodemus at the press conference to show
his support for the proposal. He said that he would call on the
Assembly Democrats to act on the Kean-Corodemus proposal.
"While the Supreme Court began to close the door on this type of
borrowing, we need to make sure the door is slammed shut and
locked," said DeCroce, R-Morris, Passaic. "This amendment would
remove any possible loopholes the administration might argue were
left open by the court ruling."
On July 26 the New Jersey Supreme Court ruled that the state
could not count borrowed money as revenue for the purposes of
balancing its budget. Within two days, all three major rating
companies – Standard & Poors, Moody’s, and Fitch Ratings – lowered
the state’s credit rating.
"The consequences of the deficit bonding in this year’s budget
are already being felt through lowered bond ratings that will make
it more costly to borrow for legitimate capital costs," Kean said.
"And it will not just be the state that is affected. Local
governments that rely on the state’s credit rating will now pay more
through higher interest rates when borrowing for roads and new
schools."
Corodemus said that the debt itself will jeopardize state
programs and take money away form local property tax relief.
"The state will have to pay several hundred million dollars per
year in debt service on these bonds for the next 30 years,"
Corodemus noted. "That means there will be less money available in
each of those budgets for school aid, municipal aid, and direct
property tax relief."
Kean and Corodemus said they hoped the bill would be acted on in
time to place the proposed amendment on the ballot in this
November’s election.
##### |
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