August 30, 2006

MERKT ASKS INSPECTOR GENERAL TO LOOK INTO QUESTIONS ABOUT UNION CITY SCHOOLS

QUESTIONS ABOUT PATRONAGE, CONTRIBUTIONS UNANSWERED

Assemblyman Richard Merkt today sent a letter to New Jersey Inspector General Mary Jane Cooper calling for her office to look into questions about the Union City school district that were raised at yesterday’s meeting of the Joint Legislative Committee on Public School Funding Reform.

“Clearly there were questions raised yesterday about how state taxpayer dollars are being spent by the Union City school district that went unanswered,” said Merkt, R-Morris. “We need to get answers to these serious questions and I think an independent investigation is the best way to do so.”

At Tuesday’s school funding hearing questions were raised about allegations that the Union City school district has become a patronage haven for the politically connected.

Specific instances were cited, including that of a city commissioner being appointed to a newly created position in the district. This line of questioning was cut off by the committee chairman who said it wasn’t the focus of those hearings.

“These are very serious questions that impact the amount of money state taxpayers are paying to support schools in Union City,” Merkt writes in his letter. “I think we need to get answers and I believe your office is uniquely positioned to get those answers.”

A copy of the letter is below:

Dear Inspector General Cooper:

I am writing this letter because I know that the Office of the Inspector General was created to identify waste, mismanagement and fraud in government spending and to ensure the accountability and integrity of every state agency that receives state funding. This of course, I assume, includes school districts.

At Tuesday’s hearing of the Joint Legislative Committee on Public School Funding Reform legitimate questions were raised about allegations that the Union City school district has become a patronage haven for the politically connected. Specific instances were cited, including that of a city commissioner being appointed to a newly created position in the district. This line of questioning was cut off by the committee chairman who said it wasn’t the focus of those hearings.

This morning, the Star-Ledger points out that Union City school officials, including teachers, principals, and other employees have contributed $87,300 to the Union City First political action committee, which seems to raise questions about the political influence on this school district.

Union City spends more than $14,000 per student – well over the statewide average of $11,500 – and much of that money comes from the state through the Abbott funding formula. In fact more than 80 percent of the district’s funding comes from the state.

Specifically I’d like to see your office conduct an audit of Union City school with an emphasis on: (1) the apparent creation of patronage jobs in the school system (story attached); (2) whether Union City municipal officials took actions to inflate the value of property causing the Schools Construction Corporation to pay more to a certain developer (see attached stories); and (3) whether school employees have been inappropriately pressured to make political contributions (see attached story).

These are very serious questions that impact the amount of money state taxpayers are paying to support schools in Union City. I think we need to get answers and I believe your office is uniquely positioned to get those answers. I look forward to your response to this request. Thank you.

Sincerely,

Richard A. Merkt

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August 30, 2006

DeCROCE: ATLANTIC CITY CORRUPTION CHARGES SHOW THAT RABNER HAS MUCH WORK AHEAD

NEW ATTORNEY GENERAL MUST PURSUE PUBLIC CORRUPTION WITH SAME ZEAL AS THE U.S. ATTORNEY

Responding to news that Atlantic City’s council president and a former Camden councilman pled guilty to extortion and bribery charges this morning, Assembly Republican Leader Alex DeCroce said that he is hopeful that New Jersey’s new Attorney General Stuart Rabner will launch a crackdown on corruption.

“New Jersey’s reputation has suffered from five years of corruption and scandal, and today’s news should remind us that this problem persists,” said DeCroce, R-Morris and Passaic. “U.S. Attorney Chris Christie has done an outstanding job going after public corruption, but we need our Attorney General to join that fight. Officials who abuse the public trust must be held accountable.”

According to news reports, the president of Atlantic City’s city council and a former Camden city councilman entered guilty pleas in federal court this morning to charges of attempted extortion and taking bribes from an FBI agent posing as a contractor.

Atlantic City City Council President Craig Callaway and former Camden City Councilman Ali Sloan El each admitted taking $36,000 in bribes from an FBI agent posing as a contractor according to Associated Press reports.

“I believe that Stuart Rabner is a good choice to serve as our new Attorney General and I am hopeful that he will step up our state-level efforts to stamp out corruption,” DeCroce said. “We need to restore public confidence in the integrity of government, and the first step is for the public to know that both state and federal law enforcement officials are aggressively targeting corrupt public officials."

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August 29, 2006

MERKT: CORZINE MATH DOESN’T ADD UP TO REAL PROPERTY TAX RELIEF FOR NEW JERSEY HOMEOWNERS

AVERAGE TAXPAYER WOULD STILL BE PAYING HUNDREDS MORE EACH YEAR IF CORZINE ACHIEVES HIS GOAL

Assemblyman Richard Merkt today said he is shocked by the goal recently set by Governor Jon Corzine that the state reduce the growth in property taxes by 20 percent over the next four years, despite the fact that property taxes have increased by more than  30 percent in the last five years.

“I’ve heard of lowering expectations, but this isn’t just lowering expectations it is completely eliminating hope,” said Merkt, R-Morris. “When you actually consider the implications of this suggestion, it is shocking how little relief the Governor actually has in mind for our taxpayers.”

An Associated Press story published in today’s edition of the Courier News quoted Governor Corzine as having set a goal of reducing projected property tax growth by about 20 percent by the year 2010 – just four years from now.

Merkt noted that property taxes have increased by more than 30 percent in the past five years and that if you had reduced that growth by 20 percent property taxes still would have increased by more than 25 percent in the past five years.

With the average property tax bill totaling nearly $6,000 per year and the state experiencing annual property tax increases of 6 percent or more, Merkt noted that the average property tax bill will grow by $360 next year – 20 percent of which is just $72.

“Essentially the Governor’s goal would mean the average property tax bill would increase by $288 instead of $360 next year,” Merkt said. “That is not an acceptable goal for this process.”

He noted that property taxes increased by just over $1.1 billion last year and that a 20 percent reduction in that growth would account for only $230 million in reductions. There was $480 million in pork spending in this year’s budget alone.

Merkt said that property taxpayers are hoping to see their property tax bills stabilize for the first time in recent years and that the goal of the Legislature and the Governor should be to actually reduce the property tax burden for New Jersey families.

“When homeowners say they want property tax relief, they want their tax bills reduced, not simply to shave a few dollars off of the annual growth of that burden” Merkt said. “What the Governor is proposing will fall well short of that goal. We need to be more ambitious in our effort to cut the property tax burden for New Jersey families."

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August 25, 2006

GREGG URGES RABNER TO USE ATTORNEY GENERAL POST TO CRACK DOWN ON RAMPANT CORRUPTION

TIME FOR AN ATTORNEY GENERAL WHO WILL BE AGGRESSIVE IN STAMPING OUT PUBLIC CORRUPTION

Assemblyman Guy Gregg today said that he welcomes the appointment of Stuart Rabner as Attorney General, citing Rabner’s reputation as a corruption-buster from his days in the U.S. Attorney’s Office.

“The selection of an experienced and credible individual like Mr. Rabner provides the Attorney General’s Office with an excellent opportunity to change course,” said Gregg, R-Sussex, Morris and Hunterdon. “In recent years it seemed that our Attorney Generals were more concerned about their own ethical problems than they were in their mission of fighting public corruption.”

Governor Jon Corzine appointed Rabner, an 19-year veteran of the U.S. Attorney’s Office who had served as Corzine’s chief counsel, to replace current Attorney General Zulima Farber who has resigned effective the end of this month. Gregg urged Rabner to waste no time in pursuing numerous corruption investigations pending in his office.

Farber resigned after a special prosecutor’s report concluded that Farber’s involvement in the traffic stop of her boyfriend in May was not a crime, but that she did violate the state code of ethics raising significant ethical questions.

“While the U.S. Attorney has aggressively fought corruption in the last five years, there has been little action on that front from the A.G.’s Office,” Gregg said. “Hopefully Mr. Rabner will change that approach and will launch an aggressive war on corruption to clean up our state’s badly tattered reputation.”

Gregg cited recent scandals involving the Board of Public Utilities (BPU) clean energy program, the questionable use of public funds by former Newark Mayor Sharpe James, questions about State Senate Wayne Bryant and UMDNJ, the school construction debacle and numerous questions about the use of taxpayer dollars by state, local and school officials, as just a few examples of matters Rabner should immediately investigate.

“It has been far too long since we have had an Attorney General who we can be proud of,” Gregg said. “Hopefully Mr. Rabner can change that.”

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August 24, 2006

McHOSE PRAISES U.S. ATTORNEY FOR ISSUING SUBPOENAS OF BPU CLEAN ENERGY FILES

ASSEMBLYWOMAN HAD ASKED U.S. ATTORNEY TO INVESTIGATE PROGRAM IN JUNE

Assemblywomen Alison Littell McHose today said she was pleased to hear that the U.S. Attorney has issued subpoenas for access to files related to the Board of Public Utilities’ (BPU) controversial $100 million clean energy program.

“The agency worked to hide the audit of this program from the public for months and has hired four private attorneys to fight a whistleblower who exposed this scandal,” said McHose, R-Sussex, Morris and Hunterdon. “Hopefully the U.S. Attorney’s involvement in this investigation will shed further light on this matter.”

A Gannett State Bureau story today indicated that the U.S. Attorney’s Office had subpoenaed files of the scandal-ridden BPU, likely in connection with the problems in the clean energy program.

A recently released Treasury Department audit of the clean energy program found the program to be rife with waste and abuse. The audit was only released after pressure from legislators, including McHose, and after the whistleblower’s attorney sought a court order to obtain the audit.

Among the problems alleged in the audit were the depositing of program funds in a bank account outside the state’s financial systems with no controls; contracts being awarded with no competitive bidding or review process; and people having been grossly overpaid for their work.

McHose and Assemblywoman Amy Handlin had sent a letter to U.S. Attorney Christopher Christie in early June requesting that his office look into the possible misappropriation of utility ratepayer dollars by the New Jersey Board of Public Utilities through a clean energy program.

“In light of past connections of our own Attorney General to beneficiaries of programs that benefited from BPU contracts, we strongly feel your involvement is essential to ensure that a fair and impartial investigation is conducted,” McHose and Handlin wrote in the letter.

Handlin and McHose have introduced a bill, A-3031, establishing a permanent “State Authorities Review Commission” to review on a periodic basis the operation of State authorities and to report on December 1 of each year its findings and recommendations, if any, to the Governor and the Legislature. McHose said the abuse at the BPU is exactly the type of waste that this legislation seeks to eliminate.

“We need to get to the bottom of this debacle and find out just how much taxpayer money has been wasted through this program,” McHose said. “I have much more confidence that we will get these answers now that the U.S. Attorney is investigating.”

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August 23, 2006

O'TOOLE ASKS FOR ACTION ON BILL PROHIBITING OFFICIALS FROM CASHING IN ON CAMPAIGN ACCOUNTS

LEGISLATION GOES AFTER USE OF CAMPAIGN FUNDS TO CREATE CHARITABLE ORGANIZATIONS THAT THEN PAY FORMER OFFICIALS

Assemblyman Kevin O’Toole today sent a letter to Assembly Speaker Joseph Roberts asking that the Speaker have the Assembly State Government Committee convene to consider legislation that O’Toole has co-sponsored targeting a loophole that allows former elected officials to receive salaries out of their former campaign accounts.

“Public officials should not be able to cash in for personal gain on campaign funds they raised when running for elected office,” O’Toole, R-Essex, Passaic and Bergen, said. “Washing campaign funds through non-profit organizations and then receiving a salary from that organization is a clear abuse of these funds.”

The legislation, A-1096, sponsored by Assemblyman O’Toole and Assemblyman Sam Thompson, R-Middlesex and Monmouth, would prohibit former elected officials from receiving for five years compensation from charitable or non-profit organizations when the official’s campaign committee has donated contributions to that organization.

The case of former Essex County Executive Thomas D’Alessio, who used this loophole to accept paid employment from an organization to which his campaign fund had donated money, was one example of such an abuse.

D'Alessio went to jail in 1994 on fraud and extortion charges, and upon his release he donated $2 million in remaining campaign funds to a charity he established, which in turn paid him an $82,000 salary and gave him a number of other benefits including a car and a condominium on an island off the coast of Florida.

“This  behavior undermines public confidence in our electoral process, making it appear that officials are campaigning for personal gain – not public service,” O’Toole said “Hopefully the Speaker will convene the State Government Committee so that we can vote on this bill and put an end to this corrupt practice.”

A copy of the letter is below:

Dear Speaker Roberts:

As the co-prime sponsor of Assembly Bill No. 1096 (A-1096), I respectfully request you to convene the Assembly State Government Committee at the earliest opportunity, and that you and Assemblyman Steele post this bill for consideration at that meeting.

A-1096 prohibits former elected officials from receiving for five years compensation from charitable or non-profit organizations when the official’s candidate committee has donated campaign contributions to that organization.  We are all aware that former Essex County Executive Thomas D’Alessio took advantage of a loophole in the current law which did not prevent him from donating his campaign funds to a charitable or non-profit organization, and then accepting paid employment from that same organization.  My bill would close this loophole and discourage the future misuse of campaign funds in such a manner.

Thank you for your serious consideration of this request.

Sincerely,
Kevin J. O’Toole
Assemblyman, 40th District

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August 18, 2006

ROONEY AND VANDERVALK SAY THAT XANADU PROJECT IS BECOMING STATE'S LATEST BOONDOGGLE

CALL FOR HEARINGS TO FIND OUT WHAT HAS PUT $2 BILLION XANADU PROJECT AT MEADOWLANDS IN JEOPARDY

Assemblyman John Rooney and Assemblywoman Charlotte Vandervalk said that the fast collapsing Xanadu project at the Meadowlands may end up being the latest in a series of state boondoggles if taxpayers are asked to financially bail-out the troubled project and called on the Assembly Budget Committee to be given subpoena power to investigate this deal.

“The news that Mills Corporation may not be able to complete this project has now raised the troubling specter that New Jersey taxpayers may again be asked to bail out a state boondoggle,” said Rooney, R-Bergen. “Why should New Jersey taxpayers be repeatedly asked to hold the bag for the state’s poor decision-making?”

Numerous newspaper reports today indicate that the Mills Corporation is suffering financial difficulties and that they have been unable to secure enough tenant leases to garner the necessary financing for the project.

According to one analyst quoted in today’s New York Times, even if the state negotiates a scaled-down project with Mills, or a different developer, to salvage the deal and make it viable New Jersey taxpayers may have to pay for it by financing part of that project.

“This is another example of the state making bad decisions and the taxpayers paying the price for those mistakes,” said Vandervalk, R-Bergen. “How many times must the taxpayers pay out of their pockets for ill-conceived, poorly managed state projects?”

Rooney and Vandervalk pointed to the $8 billion school construction program and the rampant waste and abuse in many state-funded Abbott school districts as two more examples of the taxpayers being forced to pay for programs that have been mismanaged by Democrat administrations.

The Bergen County lawmakers called for the Assembly Budget Committee to hold hearings on this matter and for that committee to be granted subpoena power so that they can get to the bottom of this debacle.

Rooney added that this latest development lends credence to claims that the bid process was rigged due to campaign contributions from Mills to Democrat powerbrokers and was not fair and open as many observers had suggested at the time the project was awarded.

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August 15, 2006

BECK: NCSL REPORT IS PROOF THAT A REPEAL OF THE SALES TAX INCREASE IS NEEDED

Assemblywoman Jennifer Beck said today that a report issued by the National Conference of State Legislatures (NCSL), stating that New Jersey raised taxes more this year than any other state in the nation, is disturbing but not at all shocking.

“This unflattering distinction does not come as a surprise,” said Beck, R-Monmouth and Mercer.  “This report confirms what the taxpayers of this state have been saying all along: Democrat tax and spend policies are hurting New Jersey.” 

According to the report, New Jersey was the only state to increase taxes by more than five percent.  NCSL also concluded that New Jersey is only one of a few states to have a budget deficit.

“This year, states all around the country passed budgets that maintain healthy surpluses and cut taxes, including our neighbor to the west, Pennsylvania,” said Beck.  “Unfortunately, New Jersey Democrats just can’t seem to get things right and once again passed a budget that does nothing to address our state’s fiscal woes.  In fact, they passed a budget that relies on a sales tax hike to fund runaway state spending.”

Beck said she is committed to making New Jersey a more affordable place to live and has introduced a measure that would repeal the increased sales tax.

“Families cannot afford to keep paying these outrageous taxes,” Beck said.  “My top priority as a legislator is to work on finding ways to reduce New Jersey’s crushing tax burden.  The repeal of the sales tax increase is one small step we can take to give the hard working people of this state some relief.”

Legislation sponsored by Assemblyman Joe Pennacchio and Assemblywoman Jennifer Beck eliminates the recently enacted sales tax hike.  The Pennacchio/Beck measure, A-3483, decreases the sales and use tax rate from seven percent to six percent.

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August 15, 2006

DeCROCE: CORZINE MUST SEEK INDIVIDUAL BEYOND REPROACH IN SEARCH TO REPLACE FARBER

CANNOT AFFORD ANOTHER ETHICALLY-CHALLENGED APPOINTEE

Assembly Republican Leader Alex DeCroce issued the following statement upon news that Attorney General Zulima Farber has resigned her post in the wake of a special prosecutors report accusing her of violating the state ethics code:

“Attorney General Farber’s decision to step down was the appropriate response to this news. I give Governor Corzine credit for doing the right thing and now ask that he take the next step. The state’s top law enforcement officer should be someone with high ethical standards and someone who the public is confident will fairly administer all of our state’s laws.

“In searching for a replacement, I hope Governor Corzine will take all necessary steps to ensure that he has found an individual who is beyond reproach. Each of the last two Attorney General’s were individuals who demonstrated poor judgment and questionable ethics. The public confidence in this important office has been badly damaged. The Governor must ensure that confidence is restored because we cannot afford another round of scandal.”

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August 15, 2006

GREGG: EVEN IF NOT CRIMINAL, FARBER'S VIOLATION OF ETHICS CODE JUSTIFIES HER REMOVAL

SAYS THAT THE STATE’S TOP LAW ENFORCEMENT OFFICER MUST BE HELD TO HIGHEST STANDARD

Assemblyman Guy Gregg today called for the removal of New Jersey Attorney General Zulima Farber from her post after a special prosecutor’s report concluded that while there was no criminal act, Farber violated the state’s code of ethics when she showed up at the scene of her boyfriend’s traffic stop in May.

“I think it is fair to say Attorney General Farber has worn out her welcome,” said Gregg, R-Sussex, Morris and Hunterdon. “We cannot allow someone who has demonstrated such a blatant disregard for our ethical standards to continue as our state’s top law enforcement officer.”

Retired Appellate Judge Richard J. Williams today issued his report on the investigation he conducted into whether any criminal or ethical wrongdoing occurred during a traffic stop of Farber’s live-in boyfriend Hamlet Goore during which Farber arrived on the scene with her State Police driver.

The officer wrote two tickets for Goore, one for driving with a suspended license and one for driving an uninsured vehicle, before a New Jersey State Police vehicle arrived with Farber and the tickets were subsequently voided.

While Williams concluded in his report that Farber did not commit a crime, she did violate the state code of ethics and Williams states that “her conduct does raise significant ethical questions that must be addressed.”

“If Zulima Farber is unwilling to do the right thing and resign her post, the Governor should seek to remove her for cause,” Gregg said. “If that does not happen the Legislature should begin to consider impeachment proceedings. The bottom line is we cannot have an Attorney General whom the public cannot trust to carry out her duties in an ethical manner or fairly enforce all the laws of our state."

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August 15, 2006

MERKT: SPECIAL PROSECUTOR'S REPORT STATES THE OBVIOUS, AND NOW FARBER MUST BE REMOVED

FARBER CANNOT REMAIN AS ATTORNEY GENERAL WITH ETHICAL CLOUD LOOMING OVER HER HEAD

Assemblyman Richard Merkt today demanded that New Jersey Attorney General Zulima Farber be removed from office after a special prosecutor’s report today concluded that she violated the state’s code of ethics when she showed up at the scene of her boyfriend’s traffic stop in May.

“The special prosecutor’s report this morning merely confirms what everyone in New Jersey with a lick of common sense already knew,” Merkt said, R-Morris. “Attorney General Farber violated state ethics code when she went to the rescue of her boyfriend following a routine traffic stop, and this represented an unacceptable lapse in judgment.”

Retired Appellate Judge Richard J. Williams was appointed by Governor Corzine to investigate whether any criminal or ethical misdoing occurred during a traffic stop of Farber's live-in boyfriend during which Farber arrived on the scene with her State Police driver.

A Fairview police officer voided traffic summonses he had written for the boyfriend of Farber after she showed up at the scene, where the officer had pulled over a 1995 Oldsmobile van driven by Hamlet E. Goore. The officer had issued two tickets to Goore, one for driving with a suspended license and one for driving an uninsured vehicle.

At that time a New Jersey State Police vehicle arrived with Farber, who stepped out of the car. Although Farber didn't speak directly to the Fairview officer, the trooper driving Farber did, and the tickets issued to Farber's boyfriend were subsequently voided.

“Zulima Farber holds the highest law enforcement position in the State of New Jersey,” noted Merkt, asking, “How can the public have any faith in her integrity as Attorney General in the wake of this incident?”

While Williams’s report concluded that Farber’s did not constitute a crime, it found that she violated the state code of ethics and that “her conduct does raise significant ethical questions that must be addressed.”

“The public declaration by the Governor's team that his administration would be ‘zero-tolerance’ on ethics violations was either serious or pure hot air,” said Merkt. “Attorney General Farber is clearly ‘damaged goods’ in terms of having the requisite ethical standing to serve in this high position of public trust, and she should be fired if she does not have the good sense to resign.”

“By the way, just how much money did it cost the taxpayers to find out that wrong is wrong?” queried Merkt. “The Farber fiasco should have been dealt with swiftly and decisively two months ago. The question for Governor Corzine now is, will this ongoing embarrassment to New Jersey and his administration finally end, or will we just see further delays, ending in a wrist-slap?”

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August 15, 2006

McHOSE: SPECIAL PROSECUTOR'S REPORT MAKES IT CLEAR THAT FARBER WAS WRONG

REPORT SAYS CONDUCT RAISES SIGNIFICANT ETHICAL QUESTIONS THAT MUST BE ADDRESSED

Assemblywoman Alison Littell McHose today said that New Jersey Attorney General Zulima Farber should resign or be removed from office after a special prosecutor’s report today concluded that she had violated the state’s code of ethics when she showed up at the scene of her boyfriend's traffic stop in May.

“Attorney General Farber can no longer serve in this post with the public’s confidence now that it is clear she has violated the state code of ethics,” said McHose, R-Sussex, Morris and Hunterdon. “As the state’s top law enforcement officer she is to be held to the highest standard of conduct, and this behavior fell well short of that standard.”

In July, Governor Jon Corzine appointed retired Appellate Judge Richard J. Williams to investigate whether any criminal or ethical misdoing occurred during a traffic stop of Farber’s boyfriend during which Farber arrived on the scene with her State Police driver.

A Fairview police officer voided traffic summonses he had written for the boyfriend of Farber after she showed up at the scene, where the officer had pulled over a 1995 Oldsmobile van driven by Hamlet E. Goore. The officer wrote two tickets for Goore. One for driving with a suspended license and one for driving an uninsured vehicle.

At that time a New Jersey State Police vehicle arrived with Farber who stepped out of the car. Although Farber didn't speak directly to the Fairview officer, the trooper driving Farber did, and the tickets were subsequently voided.

While Williams concluded that Farber did not commit a crime, his report does state that she violated the state code of ethics and that “her conduct does raise significant ethical questions that must be addressed.”

“Ms. Farber should step down immediately to restore public confidence in the Attorney General’s office,” McHose said. “If she is unwilling to step down, and the Governor is unable to remove her from that post, the Legislature should explore its options for facilitating her removal.”

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August 11, 2006

REPUBLICANS REPEAT CALL FOR PUBLIC HEARING ON UMDNJ REFORMS

SAY UMDNJ’S INTERIM PRESIDENT HAS AGREED TO PARTICIPATE IN MEETING

Three Republican members from the Assembly Higher Education Committee today reiterated their call for a public hearing to discuss the reform measures being initiated by the University of Medicine and Dentistry of New Jersey (UMDNJ).  The legislators noted that Dr. Bruce Vladeck, Interim President of UMDNJ, in a meeting yesterday agreed to appear before the Assembly Higher Education Committee to discuss the matter.

“Keeping the public updated on the progress being made at UMDNJ is important,” said Assemblywoman Jennifer Beck, R-Monmouth and Mercer.  “The Assembly Higher Education Committee provides an ideal forum to conduct a comprehensive review of the reform process.  I am hopeful the committee will be convened for this exact purpose.”

 The legislators said they expect the committee to take swift action now that Dr. Vladeck has agreed to meet with them to discuss the university’s progress.

“In yesterday’s meeting, Dr. Vladeck indicated, once again, that he is willing to come before the committee to discuss what changes are underway at UMDNJ,” said Assemblyman Bill Baroni, R-Mercer and Middlesex.  “Having UMDNJ officials come before the committee to reassure the public that they are implementing essential reform measures would be a tremendous step forward.”

On previous occasions, Republican members from the Assembly Higher Education Committee have called for a public hearing to examine the reform process at UMDNJ, saying the residents of New Jersey need reassurance that the university’s ethical issues are being adequately addressed.

“We had a very productive meeting with Dr. Vladeck yesterday,” said Assemblyman Richard Merkt, R-Morris.  “I think the public would find the information he shared with us to be very enlightening.  It appears the university is making considerable progress toward lasting reform."

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August 8, 2006

PENNACCHIO SAYS THERE IS NO NEED TO HIKE TAXES TO INCREASE CABLE COMPETITION

Assemblyman Joe Pennacchio made the following statement today following the signature of Governor Corzine of bill S-192, which authorizes statewide franchising for certain cable television providers.

“Having a choice between cable providers is typically good for the consumer,” said Pennacchio, R-Morris and Passaic.  “However, cable customers won’t automatically see a decrease in their bills because under this provision cable taxes will double from 2 percent to 4 percent and expands it to all cable service.  It is conceivable consumers could see their cable tax increase by 600 or 800 percent.  Let’s be clear, this measure is just another tax increase.”

Pennacchio said there is a better way to increase competition in the cable industry that does not involve a tax hike.

“Increasing competition usually means prices will go down,” added Pennacchio.  “There is absolutely no need to increase cable taxes to promote competition within the industry.”

Pennacchio said he is vigorously working to lower taxes in New Jersey and has recently introduced a measure that would repeal the increased cable tax.

“I encourage the Legislature to take action to rollback this tax hike,” said Pennacchio.  “All these additional fees and taxes have added to the taxpayers’ already tremendous burden.  My priority is to find ways to make New Jersey more affordable and that includes repealing this tax.”

The Pennacchio measure, A-3364, rescinds the recent cable tax hike by limiting the amount required to be paid to municipalities by cable companies to two percent or less.

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August 8, 2006

WOLFE ASKS FOR INFO TO ASSESS THE IMPACT OF ABATEMENTS AND EXEMPTIONS ON PROPERTY TAXES

TAX EXEMPTIONS TO DEVELOPERS ARE COSTING THE STATE & POOR NEIGHBORHOODS HUNDREDS OF MILLIONS OF DOLLARS

Assemblyman David Wolfe, a member of the Joint Legislative Committee on Public School Funding Reform today requested information regarding property tax abatements and exemptions offered by municipalities to developers, saying that such exemptions have shifted the property tax burden in many cities from individuals able to pay their fair share, to poorer neighborhoods and other regions of the state.

Wolfe sent a letter today to Department of Community Affairs (DCA) Commissioner Susan Bass Levin and State Treasurer Bradley Abelow asking that they provide information regarding these tax exemptions and abatements including the growth in value of these properties and the impact this has had on Payment in Lieu of Taxes (PILOTs) and school aid.

“While these exemptions and abatements can be useful revitalization tools, in many cases they can be abused in a way that has an unfair impact on school funding,” said Wolfe, R-Ocean and Monmouth. “These are exactly the types of funding inequities that are driving up property taxes statewide and we should focus on this issue during our hearings.”

Wolfe noted that aid to suburban and rural school districts has been mostly frozen for five years and that last year the state spent $4.18 billion – 57.3 percent of its total school aid – in the 31 Abbott districts while spending just $3.12 billion – 42.7 percent – in the remaining 585 school districts.

In his letter he points out that two of those Abbott Districts – Newark and Jersey City – have seen an increase in the value of tax exempt or abated property from $1.8 million to more than $355 million and from $6.5 million to more than $335 million respectively. This is a total increase in value of nearly $700 million between just two cities – none of which generates any funds for schools. People living in tax exempt condos and townhouses in these developments often pay nothing toward supporting local schools.

“Many of the people benefiting from these tax exemptions are capable of paying at least some level of property taxes in support of their own schools,” Wolfe said. “This only shifts that school funding burden to other parts of those cities and to suburban and rural areas of the state.”

A copy of the letter is below:

Dear Commissioner Levin and Treasurer Abelow:

As a member of the recently established Joint Legislative Committee on Public School Funding Reform, I intend to explore the impact of property tax exemptions and abatements (awarded to developers predominantly by urban governing bodies under short and long terms tax exemption laws) has had on school funding throughout our State.  While exemptions and abatements can be useful tools to revitalize our cities, they can also be abused and almost always have a profoundly unfair impact on school funding in a way that hurts older, poorer communities in urban areas, statewide taxpayers, and the State budget.  I am writing to request that you provide me with relevant information to better understand the impact exemptions and abatements have on school funding. 

My request for information is rooted in concerns that: (1) municipalities have an incentive to freely award exemptions because perverse loopholes in long term tax exemption laws allow municipalities to structure payments in lieu of taxes in a way that they get more money than they would get from their share of ordinary taxes; (2) payments in lieu of taxes under long term tax exemption agreements support municipalities and counties while completely excluding local schools -- even while the exempted developments may increase school population and school costs; and (3) exemptions and abatements shift school funding responsibility unfairly to taxpayers in other, less privileged, portions of these cities and into other portions of the State including my district.

By way of example, from 1996 to 2005, the percentage value of land and improvements in the City of Jersey City exempt or abated from taxation increased from .1% to fully 6% -- an increase in the value of tax exempt property from $6.5 million to more than $335 million.  Similarly, from 1996 to 2005, the percentage value of land and improvements in the City of Newark exempt or abated from taxation increased from .2% to fully 3.2% -- an increase in value of tax exempt property from $1.8 million to more than $355 million. Between just these two urban areas, almost $700 million in property values fail to generate any funds for schools, and people capable of paying at least some level of property taxes in support of their own schools, are not required to do so.

So that I may better understand the impact of exemptions and abatements on school funding and craft reforms that will assist in fair school funding relief, I ask that you provide me with the information set forth on the pages that follow.  Please call Beth Schermerhorn or Tom Neff with questions or concerns at 609-292-5339.

Sincerely, 

David Wolfe

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August 7, 2006

ASSEMBLY REPUBLICANS ANNOUNCE APPOINTMENTS TO PROPERTY TAX COMMITTEE TEAMS

SUBCOMMITTEES ON EACH TOPIC WILL ENSURE ALL MEMBERS OF THE CAUCUS HAVE INPUT

Assembly Republican Leader Alex DeCroce today announced the membership on four teams that will serve as subcommittees in an advisory role to the appointed Assembly Republican members of the four joint legislative committees on property tax reform.

“These teams will meet to discuss these issues and provide suggestions and guidance for our four members serving on these committees,” said DeCroce, R-Morris and Passaic. “We have created these teams to ensure that every member of our caucus, and each of their constituents, has an opportunity to have input in this very important process.”

DeCroce announced last week that he had appointed Assemblymen Joseph Malone, Kevin O’Toole, Richard Merkt and David Wolfe to serve on the four property tax joint legislative committees created to study shared services, benefits reform, school funding, and the constitutional convention.

At that time DeCroce announced that four teams will be formed on each of these subject areas, and that every member of the Assembly Republican caucus will be appointed to one of those teams, which will be headed up by the four appointed committee members.

Additionally, Assembly Republicans will be appointing public members to serve on each of these teams to provide input from taxpayers.

“We hope that by placing members of the general public on these teams that we will get valuable insight from the people who are most directly affected by our property tax crisis,” DeCroce said. “These public members will also he helpful in evaluating the effectiveness of any proposals that come out of these committees.”

The names of the members of each Assembly Republican property tax subcommittee are below:

SCHOOL FUNDING TEAM

David Wolfe, Chairman
Christopher ‘Kip’ Bateman
Jennifer Beck
Frank Blee
Francis Bodine
Chris Connors
Alex DeCroce
Marcia Karrow
Charlotte Vandervalk

CONSTITUTIONAL CONVENTION TEAM

Richard Merkt, Chairman
Bill Baroni
Michael Patrick Carroll
Guy Gregg
James Holzapfel
Sean Kean
David Russo

PENSION REFORM TEAM

Kevin O’Toole, Chairman
Peter Biondi
Jon Bramnick
Steve Corodemus
Mike Doherty
Alison Littell McHose
Joe Pennacchio

SHARED SERVICES TEAM

Joe Malone, Chairman
Larry Chatzidakis
Ron Dancer
Amy Handlin
Eric Munoz
John Rooney
Brian Rumpf
Sam Thompson

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August 4, 2006

O'TOOLE APPOINTED TO SERVE ON PENSION AND BENEFIT REFORM PROPERTY TAX COMMITTEE

ONE OF FOUR REPUBLICANS APPOINTED TO SERVE ON SPECIAL SESSION PANELS

Assembly Republican Leader Alex DeCroce today appointed Assemblyman Kevin O’Toole, to serve on the Joint Legislative Committee on Public Employee Benefits Reform – one of the four property tax reform committees created last week by the passage of ACR-3.

“Pension costs are a very important factor driving up the cost of local and state government,” O’Toole, R-Essex, Passaic and Bergen, said. “We need to use this committee as an avenue to stamp out the abuse and waste in our pension systems and to implement reforms that will provide a long-term costs savings.”

This committee will be charged with reviewing and formulating proposals that address abuses of the system of benefits provided to public employees and to control the costs of the State and its political subdivisions for public employee retirement, health care and other benefits. As a basis for its deliberations, the committee will use the recommendations of the Benefits Review Task Force contained in its December 1, 2005 report.

O’Toole, a member of the Assembly Budget Committee said that cutting these costs will help to reduce the property tax burden for New Jersey homeowners.

“New Jersey homeowners have been burdened by high property taxes for far too long,” O’Toole said. “It is my goal to have this committee come up with a series of reforms that will help to reduce the cost of government and thereby allow us to provide substantial, long-term property tax relief for homeowners.”

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August 4, 2006

MERKT: LET’S GET DOWN TO BUSINESS

CALLS ON COMMITTEE TO ADDRESS SUBSTANTIVE CONSTITUTIONAL ISSUES

Assemblyman Richard Merkt today said that he is pleased to serve on the constitutional convention committee and is eager to work in a bipartisan fashion to address New Jersey’s property tax crisis.

“I am hopeful this historic special session of the Legislature will yield meaningful and long-term property tax relief and reform,” said Merkt, R-Morris.  “In the public’s eyes, only a substantial cut in property tax bills will be viewed as a success.”

Merkt encouraged his Democrat colleagues, from the very beginning, to make the process understandable and clear.

“I understand that this body is charged with examining the constitutional issues that impact property taxes,” Merkt said.  “The real question is how much leeway will this committee be given to consider major factors contributing to the property tax dilemma?  Without question, it is time we had a fundamental discussion as to what constitutional changes are needed to deliver comprehensive property tax reform.”

Merkt said the committee has a very important task and should have a substantive discussion on every aspect of the constitution that affects property taxes.  

“From the onset, the specific responsibilities of each committee must be clear,” added Merkt.  “I am particularly interested to see if this group will look at constitutional language impacting public school funding or if that will be addressed by another body.” 

Merkt also said that it is the primary responsibility of the Legislature to act on the issue of property tax relief and reform.

“Regardless of whether this committee decides to pursue changing the constitution, there is absolutely no reason why the Legislature cannot take immediate action,” said Merkt.  “The constitutional convention process is confusing, expensive, and undoubtedly very lengthy.  We should accelerate the process and take legislative action to provide immediate relief to overburdened taxpayers.”    

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August 3, 2006

MALONE APPOINTED TO PROPERTY TAX COMMITTEE, URGES MORE BALANCE IN STATE FUNDING

COMMITTEES MUST FOCUS ATTENTION ON THE INEQUITY OF STATE FUNDING FOR TOWNS AND SCHOOL DISTRICTS

Assemblyman Joseph Malone has been appointed to serve on the Joint Legislative Committee on Government Consolidation and Shared Services – one of the four property tax joint legislative committees created last week by the passage of ACR-3 – and he says the committees must look at the uneven balance in state funding between urban and suburban towns.

“We all know there are efficiencies to be found by sharing government services,” said Malone, R-Burlington, Ocean, Monmouth and Mercer. “I anticipate that our committee will produce a number of solid ideas that can help to reduce the cost of government at the local level through consolidation or sharing of services.”

Malone, the former mayor of Bordentown, will serve on the shared services committee, which is charged with reviewing and formulating proposals that address the sharing of services and regionalization of functions at all levels of government.

But in addition to studying the cost-saving opportunities provided by the consolidation and sharing of services, Malone said all four of the committees appointed to study property tax reform must address the issue of funding inequities between urban areas and suburban and rural areas.

Malone pointed out that aid to suburban and rural school districts has been mostly frozen for five years and that last year the state spent $4.18 billion – 57.3 percent of its total school aid – in the 31 Abbott districts while spending just $3.12 billion – 42.7 percent – in the remaining 585 school districts.

“This state cannot continue to send billions of dollars into urban areas – with few positive results to show for that spending – while shortchanging our rural and suburban communities,” Malone said. “This funding inequity is tearing apart our state and it is destroying the quality of life for families in many non-urban towns and school districts.”

Apart from the disparity in school aid, many urban municipalities are on the receiving-end of millions of dollars in special municipal aid, including a $27 million in municipal assistance for Newark, $8 million for Trenton, $2 million for Irvington, while municipal aid was frozen for most other towns in the state.

“The taxpayers in all communities of this state deserve relief,” Malone said. “But something is seriously wrong when there are taxpayers who are paying more than $10,000 per year in property taxes while their state tax dollars are disproportionately used to lower property taxes for homeowners in a handful of urban cities and towns.”

Malone said that if the current property tax reform process does not restructure state spending and provide substantial relief for suburban and rural homeowners, the process will have been a failure.

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August 2, 2006

CHATZIDAKIS: REFLECTIVE ROOFS NEEDED TO PROTECT SENIORS FROM HEAT

“The State of New Jersey should be a leader in protecting seniors from heat related illnesses and death,” said Assemblyman Chatzidakis.  “One important way of doing this is by developing a reflective roof program that would reduce heat going into the home.”

According to the Environmental Protection Agency (EPA), “a cool roof system can be 70 degrees cooler than traditional materials during peak summer weather.”

The Assemblyman is going to reintroduce his legislation from the last session A-1931, that called for the Department of Community Affairs to establish a program of reflective roofs for seniors and low-income families.

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August 2, 2006

McHOSE: LATEST 'MISSTATEMENTS' FROM BPU SHOW AGENCY IS AWASH IN COVER-UP

AGAIN DEMANDS BUDGET COMMITTEE HEARING AND CALLS FOR SUBPOENA POWER

In the wake of an admission from Board of Public Utilities (BPU) President Jeanne M. Fox that she made a “misstatement” when claiming the Treasury Department signed off on an $80 million bank account for the troubled clean energy program, Assemblywoman Alison Littell McHose again today called for the Assembly Budget Committee to schedule a special hearing with subpoena power and for the newly called testimony to be delivered under oath.

“We need an opportunity to publicly question Jeanne Fox and BPU officials so that we can extract the truth out of the many conflicting statements and retractions that are floating about,” said McHose, R-Sussex, Morris and Hunterdon. “The agency worked to hide this audit from the public for months and has hired four private attorneys to fight a whistleblower who exposed this scandal. Now it appears that BPU officials are trying to mislead the public about the accuracy of the audit findings.”

At a Treasury Department budget hearing in June, Republican members of the Assembly Budget Committee had requested a separate hearing for the BPU. At that time, Assembly Budget Committee Chairman Lou Greenwald had indicated he would be willing to have BPU come back at a later date to discuss these issues.

Treasury’s audit of the BPU’s clean energy program, which was hidden from the public for more than a year before it was finally released on July 25, found the clean energy program to be rife with waste and abuse. The audit was only released after the whistleblower’s attorney sought a court order to obtain the audit.

Among the problems alleged in the audit were the depositing of program funds in a bank account outside the state’s financial systems with no controls; contracts being awarded with no competitive bidding or review process; and people being grossly overpaid for their work.

Fox last week dismissed the Treasury Department’s claims in the audit that it was not informed about the existence of the separate bank account, and she state that she could prove through correspondence that Treasury officials had helped set up the account.

The audit did not discuss other funds kept off the state accounting system or efforts by the BPU to prevent auditors from looking further into the BPU. There are now questions surrounding additional BPU funds that may have been kept in private bank accounts.

“Given the damning findings in this audit, the budget committee should have an opportunity to ask questions of President Fox and other BPU officials,” McHose said. “Only by forcing these BPU officials to testify publicly before a legislative committee and asking pointed questions about these findings will we be able to get an accurate assessment of the program.”

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