July 31, 2007

THOMPSON: CORZINE’S REFUSAL TO GUARANTEE
PROPERTY TAX RELIEF NEXT YEAR IS TELLING

TAXPAYERS SHOULD BE WARY OF GOVERNOR’S COMMENTS

Assemblyman Sam Thompson today expressed his disappointment that Governor Jon Corzine refused Monday to guarantee that this year’s property tax relief will make it into the budget next year and noted that this year’s rebate program may end up being little more than a one-time, election-year gimmick.
           
“Property taxes have increased by 36 percent in the past five years and it is anticipated there will be a substantial increase again this year,” said Thompson, R-Middlesex and Monmouth. “The Governor’s comments confirm our worst fears about this program and should be a sign to taxpayers that they cannot rely on this relief beyond this year’s elections. This is no more than a stop-gap measure that will not be a long-term solution.”
           
According to news reports this morning, as the first property tax rebate checks were being processed for delivery yesterday, Corzine stopped short of guaranteeing the program would last beyond this year saying that he is, “not writing a guarantee, like a no-new-taxes pledge,” and only that there was a “high-probability bet” the program will continue.
           
“After getting slammed with higher property taxes for five years, and then being promised by the Governor and Democrat leadership that relief was on the way last summer, the public wants more than a ‘high-probability bet’ that there will be tax relief next year,” said Thompson. “That type of waffling is simply unacceptable.”
           
Thompson reminded taxpayers of the McGreevey income tax hike in 2004 that was supposed to pave the way for larger rebate checks and permanent property tax relief.
           
“One year later those rebate checks were slashed in half, and now the program has been replaced,” he said. “Taxpayers have been led down this road before.”
           
The property tax plan signed by the governor gives families earning less than $100,000 a 20 percent reduction in their tax bills, while those earning a combined income of $100,000 to $150,000 will get only a 15 percent cut. Those families earning from $150,000 to $250,000 will get just a 10 percent cut, with those earning over $250,000 getting no tax relief under the plan.
           
Governor Corzine and the Democrats refused to constitutionally dedicate the program which means there is no guarantee the tax relief will be included in next year’s budget.
           
Thompson pointed out that even this year’s plan falls short of real relief. The plan eliminates the existing Homestead Rebate program which provided $800 rebate checks to families just three years ago and $1,200 checks to seniors. This means many families, and most seniors, will be getting no more relief than they did under the old Homestead Rebate program. Thompson also noted that tenant rebate checks will increase from $75 to $150 – just a $75 increase.
           
“Unfortunately under this plan many seniors will see little or no relief when those living on fixed incomes have been among the hardest hit by these property tax increases,” Thompson said. “The Legislature should have passed a true tax reform package that would have provided substantial relief and that would have been guaranteed to last more than one year, rather than a minimal tax relief program.”
           
Assembly Republicans proposed a constitutionally guaranteed relief program that would provide an across-the-board 20 percent tax cut to all homeowners regardless of income with a 30 percent tax cut for seniors and all homeowners earning less than $250,000. The plan would be funded by cutting wasteful spending and because of the constitutional guarantee, the relief would last beyond this year.
           
Republicans offered the plan at the time that A-1 was approved
by the General Assembly, but Democrats rejected the Republican amendment.

#####

July 30, 2007

HANDLIN RENEWS CALL FOR STATUS OF
EMPTY $110 MILLION DOLLAR FACILITY

Assemblywoman Amy Handlin today renewed her call for the
public to be informed about the fate of the $110 million dollar cancer research center sitting largely empty at UMDNJ. Handlin expressed her concern that in fourteen weeks there will be a ballot question asking the public to decide whether $450 million should
be borrowed to support stem cell research.  Two days ago a nonpartisan study, released by the Office of Legislative Services, raised concerns about projected increases in state debt. 

“Seven months ago, I asked the Governor what has been done
to find appropriate uses for this empty $110 million facility,” said Handlin.  “My request for this information has been ignored, but now the issue is much bigger that any one legislator’s query. 
It is a matter of transparency and full disclosure to the public of information they need to make an informed judgment on
Election Day.

Back in December the Star-Ledger reported that the University of Medicine and Dentistry of New Jersey (UMDMJ) spent $110 million on a cancer research center that was more than half vacant.  In response Handlin wrote a letter to Governor Corzine and asked
that the state explore using this existing facility instead of spending millions on new biomedical research facilities. 

The Star-Ledger discovered that the newest building on UMDNJ’s Newark campus is a nine-story structure built to be a cancer research center.  It includes vast expanses of glass, state-of-the
art research labs and underground vaults for linear accelerators used in cancer treatments.  According to the report, “no cancer treatment is going on.  There are no doctors, no clinical services and no patients.” The story said that more that half the building remained empty.

“We should not be asking the public to spend millions more on
stem cell research -- or anything else -- without the assurance
that we have explored every alternative.  Clearly, this building
may offer an alternative to some portion of new spending and
the public has no reason to believe that it has been taken seriously.” concluded Handlin. 

#####

July 30, 2007

IN CASE YOU MISSED IT...

Corzine running out of time
Editorial, Record of Hackensack, July 29, 2007

ARE WE there yet? Little children repeat that question from the back seat when their parents take them on a road trip. The people of New Jersey are not all little children. Yet we are confined in the back seat while Governor Corzine and his senior advisers drive us down the road toward asset monetization. After months of detours and delay, we ask, "Are we there yet?"

Corzine has said precious little about his plan. He released eight guiding principles, essentially telling us what asset monetization isn't. Not surprisingly, the Republican leadership in both houses
of the Legislature is demanding the governor release the plan immediately.

Politicians, from both sides of the aisle, are criticizing a plan that remains under wraps. Corzine insists the delay is not for political cover. But with the entire Legislature up for reelection in November, that is not an illogical possibility.

In today's Record, state Treasurer Bradley I. Abelow writes that the process of creating some form of public benefit corporation -- the only "known known" about asset monetization -- is complicated and cannot be rushed. The governor and treasurer are smarter than most when it comes to finances. But being smart fiscally and smart politically are not the same. Corzine has been talking about asset monetization for months. He cannot hint at pieces of a plan without expecting the public to want full disclosure.

The longer the delay, the more Republicans cry politics and the more the public's expectations for a "silver bullet" to reduce taxes and state debt grow. At this point, New Jerseyans are expecting a summer blockbuster when it is more probable they will get "Shrek the Third."

Republicans demand to see the plan for asset monetization now. We recognize the governor's near-fatal accident delayed the process. But that was April; it is almost August. The election season unofficially begins on Labor Day. We must see the plan
by then.

It is a disservice to all voters in the state not to tell them what
asset monetization means before Election Day. This issue needs
to be discussed, not just by Corzine at town hall meetings, but by every candidate for a seat in the Legislature. Releasing the plan by Labor Day is not unreasonable.

If it is not ready by then, the governor needs to go to each county in New Jersey and explain why it isn't. New Jerseyans may not be as smart with numbers as the governor and his staff, but we're
the ones who vote. We have a right to this information.

It was Corzine who told the people of New Jersey to hold
him accountable.

So, governor, "Are we there yet?"

#####

July 27, 2007

HANDLIN SAYS NEW JERSEY NEEDS
‘REFORM NOW, NOT TOMORROW’

SAYS LATEST LEGISLATIVE SCANDAL PROVES
TOUGHER ANTI-CORRUPTION MEASURES ARE NEEDED

Following revelations today that federal prosecutors have informed a state senator from Bergen County that he is the target of a criminal investigation, Deputy Assembly Republican Leader Amy Handlin said taxpayers can’t afford to wait any longer for the Legislature to crack down on misconduct by public officials.
           
“Just when you think it can’t get any worse, it does,” observed Handlin, R-Monmouth, Middlesex. “Who would have imagined that in less than a year, three senators who wielded tremendous influence as members of the Budget Committee, would become the target of a probe by the U.S. Attorney’s Office?
           
“There is no sign that the tidal wave of political scandals is abating. Yet the Legislature has recessed until after the November election without doing hardly anything to curb corruption and address the growing level of public disgust with what has been going on in the State House.
           
“New Jersey taxpayers can’t afford to wait until after the election. They shouldn’t have to wait another day. The Legislature should reconvene immediately and pass meaningful reforms, particularly those contained in a bipartisan reform package that has been stagnating in committee for nearly a year.”
           
Newspapers reported today that state Sen. Joseph Coniglio, D-Bergen, has been notified by federal prosecutors that he is the focus of a criminal investigation into the awarding of millions of dollars in legislative grants. Two other current or former members of the Senate Budget and Appropriations Committee – Sen. Wayne Bryant, D-Camden, the former chairman of the committee, and Sen. Sharpe James, D-Essex, who still serves as vice chairman – have already been indicted on corruption charges.
           
Handlin said she strongly disagrees with the view of Senate President Richard J. Codey, D-Essex, that no further action needs to be taken by the Legislature to deal with corruption or ethics reform. Although Democratic legislative leaders, including Codey, promised more than a year ago to enact into law one of the most comprehensive reform packages in the nation, every major initiative has stalled. Last Sunday, Codey was quoted in The Record of Hackensack as saying that, in his view, the current ethics and criminal laws are sufficient.
           
“I do not believe the spate of criminal indictments and investigations support his conclusion,” Handlin said. “All the Democrats have done so far is tinker around the edges of the problem. It’s high time the Legislature confronted the issue
head-on.”
           
She urged legislative consideration by taken on the Blueprint for a Corrupt-Free New Jersey that was introduced last year. The package is a collection of the best reform bills sponsored by Republicans and Democrats. Major elements include:

1. Mandatory jail time for convicted public officials;
2. Suspension of salaries for indicted public officials;
3. Loss of pension and health benefits for convicted public officials;
4. Automatic forfeiture of office for any public official convicted of accepting illegal campaign contributions;
5. A reconstituted Legislative Ethics Committee controlled by public citizens, not elected officials;
6. A streamlined process for citizens wishing to file ethics complaints against public officials;
7. A tougher Legislative Code of Ethics;
8. An end to pension boosting and tacking;
9. An expanded and stronger anti-nepotism law;
10. An immediate ban on dual office holding;
11. An end to “pay-to-play,” otherwise known as the “corruption tax,” at all levels of government, and
12. A ban on political money laundering, a practice also known as “wheeling.”

#####

July 27, 2007

IN CASE YOU MISSED IT...

Parkway toll increase?
Posted, NJ.com, July 26, 2007

We haven't heard much about the Garden State Parkway lately since it was merged into the N.J. Turnpike Authority. However, we can expect to hear more when Governor Corzine unveils his "asset monetization" plan for both toll roads.

It is clear the governor wants to use these extremely valuable assets to help provide new funds to meet the state's serious backlog of road, bridge and other capital needs. Until he lays out the details, we won't know how he expects to accomplish this, but it is probably a safe bet that in some form increasing parkway tolls may be an important element.

Increasing parkway tolls? Are you kidding? Hasn't the big public debate over recent years been about eliminating those tolls?

Sure. Remember 2001 gubernatorial candidates Brett Schundler and Jim McGreevey's pledges to get rid of the tolls? How about Governor Don DiFrancesco's Parkway Congestion Relief Plan?

Despite substantial efforts by these politically powerful folks, the tolls are still there, albeit in modified, more user-friendly form, with some one-way tolls and express EZ Pass.

Could it be that our leaders have concluded that collecting over $200 million every year (much of it from out-of-state motorists) as a user fee with the proceeds used to maintain the busiest and perhaps best toll road in the country is preferable to some short-term political gain and trying to find substitute revenue from additional taxes?

When you really think about it, parkway tolls are a great bargain! What other goods or services can you purchase today for the same price they cost in 1989? That's the last time parkway tolls were raised, from a quarter to 35 cents.

So don't be surprised if the ballyhooed "asset monetization" plan includes a parkway toll increase in
the near future...

#####

July 27, 2007

IN CASE YOU MISSED IT...

N.J. isn't buying Corzine's 'asset monetization' plan
Editorial, The Courier-Post, July 27, 2007

WHERE WE STAND: The governor needs to cut spending and fix school funding before mortgaging our assets for quick cash.

When Jon Corzine became governor, the promise was that he'd use his experience as a savvy, Wall Street businessman to fix the financial woes of a state that piled up debt and let property taxes get out of hand under former governors James E. McGreevey and Christie Whitman.

Yet, so far, Corzine has hardly looked like a financial whiz. He forced a sales tax increase last summer. Now, he's pushing what he calls "asset monetization" -- leasing or selling bonds against the value of assets such as the New Jersey Turnpike or the New Jersey Lottery.

But Corzine really needs to stop and listen to what New Jerseyans are saying. A Monmouth University/Gannett New Jersey poll conducted last week found that 55 percent of residents oppose what Corzine calls "asset monetization" and 60 percent oppose leasing the turnpike or the Garden State Parkway.

Patrick Murray, director of the Monmouth University Polling Institute, said that most of those polled also don't buy the idea that it's an either-or situation -- either cash in on the toll roads and other assets or raise taxes.

Corzine needs to take heed of what New Jerseyans are saying -- his idea isn't the major reform people want. It doesn't involve major spending cuts or changing how schools are funded to lessen the reliance on property taxes. His plan is simply about raising a huge pot of money now for our politicians to spend. Forgive us and other New Jerseyans if we simply don't trust this government to wisely use billions of dollars that would roll in from asset monetization.
It's time for Corzine to explain how he's going to cut spending in Trenton and how he's going to fix our broken property-tax system before selling us all on the need for steep toll hikes and selling off development rights at train stations so Trenton can keep on spending.

# # # # #

July 27, 2007

IN CASE YOU MISSED IT...

Corzine retreats in war on debt
Editorial, Gloucester County Times, July 27, 2007

The bully pulpit to which Gov. Jon Corzine lays claim over the state's crushing debt was inexplicably contradicted by Corzine's signature Thursday on legislation. It commits the state to borrow $450 million to fund stem cell research for 10 years, if voters approve this fall.

Though it would be cruel to tag all state support for this medical research as a luxury, it is just too much money, for too long a time, for a pursuit that may well see sharp increases in federal resources once President Bush with his unalterable opposition to expanding embryonic stem cell research leaves office in early 2009.

Along with the likely OK for a measure to borrow another $200 million to replenish state open space funds, New Jersey will ask voters to borrow $650 million this fall. No matter how worthy the cause, the "borrow" portion of it never makes it into glowing rhetoric about what the money will be used for.

According to the nonpartisan Office of Legislative Services, New Jerseyans will add $37 million to the state's annual debt tally if they OK the stem cell measure, and $15.3 million if they approve the open space one. That's more than $52 million annually. This number will likely be buried in the fine print of a ballot question,
if it appears at all.

With figures like $58 billion, originally reported in the New York Times, as the state's shortfall to pay for previously granted lifetime health benefits for its retirees, it's no wonder Corzine goes around the state warning of the greater fiscal pain that will be inflicted if underfunded health care and pension liabilities aren't addressed. And, he's the first governor in about 15 years to take steps to reverse the trend.

But, nowhere in a three-page press release from Corzine's office about signing the stem cell bond act is an indication of how the state will pay all this money back, given all of the state's other demands. Nowhere is any attempt to offset the cost with, say,
$37 million a year in ongoing state spending cuts.

Instead, the bond funds is are portrayed as a "landmark economic investment that will create new jobs and spur new business ventures while bringing the potential of life-saving treatments and cures to millions ..." Well, maybe on both counts, but $450 million plus interest is a lot to throw at "potential" given New Jersey's financial condition.

With its large medical employment base, perhaps New Jersey cannot sit out the stem cell funding race entirely. But there's no message of moderation here. Voters this fall should be aware of how much a 10-year funding cycle, with no guarantee of curing any disease, would cost them. That should not get lost in the fine print.

#####

July 25, 2007

HANDLIN RENEWS CALL FOR STATUS OF
EMPTY $110 MILLION DOLLAR FACILITY

Assemblywoman Amy Handlin today renewed her call for the
public to be informed about the fate of the $110 million dollar cancer research center sitting empty at UMDNJ’s. Handlin
expressed her concerns that in fourteen weeks there will be a ballot question asking the public to decide whether $450 million should be borrowed to support stem cell research. This comes after $270 million was allocated for biomedical research facilities.
Two days ago a nonpartisan study, released by the Office of Legislative Services, raised concerns about projected increases
in state debt. 

“Seven months ago, I asked the Governor what has been done
to find appropriate uses for this empty $110 million facility,” said Handlin.  “My request for this information has been ignored, but now the issue is much bigger that any one legislators’ query. 
It is a matter of transparency and full disclosure to the public
of information they need to make an informed judgment on
Election Day.

Back in December the Star-Ledger reported that the University of Medicine and Dentistry of New Jersey (UMDMJ) spent $110 million on a cancer research center that is now vacant.  In response Handlin wrote a latter to Governor Corzine and asked that the state explore using the facility for biomedical research facilities instead of spending millions on a new biomedical research facility. 

The Star-Ledger discovered that the newest building on UMDNJ’s Newark campus is a nine-story structure built to be a cancer research center.  It includes vast expanses of glass, state-of-the-art research labs, underground vaults for linear accelerators used in cancer treatments.  According to the report, “no cancer treatment is going on.  There are no doctors, no clinical services and no patients.”  The story said that more that half the building
remained empty.

“We should not be asking the public to spend so much as a
dollar - - much less millions - - without the assurance that we
have explored every alternative.  Clearly, this building may offer
an alternative to some portion of new spending and the public
has no reason to believe that it has been taken seriously.” concluded Handlin. 

#####

July 25, 2007

IS THE PROPOSAL FOR $30 LINCOLN TUNNEL
TOLLS A SIGN OF THINGS TO COME?

AS ASSET SALE ADVANCES BEHIND THE SCENES, SURVEY
SHOWS WHAT TOLL ROAD OPERATORS MAY HAVE IN MIND

Assemblyman John Rooney and Assemblywoman Charlotte Vandervalk today suggested that a survey being conducted by the Port Authority about the possibility of a $30 high-occupancy toll lane at the Lincoln Tunnel may be a preview of what commuters can expect if New Jersey sells it toll road assets to private investors.
           
“If a state agency like the Port Authority thinks a $30 toll isn’t a bad idea, imagine what private investors who could profit from such a scheme would think,” said Rooney, R-Bergen. “This proposed $30 toll might seem outrageous, but this type of toll pricing might
be common-place once we turn over our toll roads to
private investors.”
           
A story today in The Record of Hackensack reports that in a survey mailed last week to 38,000 users of the Lincoln Tunnel, the Port Authority asked if drivers would pay as much as $30 to use a 2.5-mile lane reserved for high-toll payers.
           
According to the story, drivers were asked if they would pay as much as $30 if they could shave 35 minutes off a future commute the agency predicts will take longer than it does now. Truck drivers were asked if they would support a $40 toll to shave 20 minutes off their trip time.
           
“The public has a greater ability to resist these outrageous toll proposals when they are being floated by a state agency that answers to elected officials,” said Vandervalk, R-Bergen. “The question is, how much flexibility is the Corzine administration
going to give to private investors to implement these types of
toll schemes?
           
“Is this what we can potentially expect if the Governor’s new “monetization” scheme is implemented?  Since the Legislature would never see the fine print of that contract, we really don’t know if such high tolls could be in the future for our roadways.”

#####

July 24, 2007

BECK AND KEAN HOLD TOWN HALL
MEETING TO DISCUSS CORZINE’S PLAN TO SELL
THE TURNPIKE AND PARKWAY FOR QUICK CASH

Assemblywoman Jennifer Beck and Assemblyman Sean T. Kean yesterday held a second important town hall meeting in Freehold Township to discuss Governor Jon Corzine’s proposed fire-sale
of state assets like the New Jersey Turnpike and the Garden
State Parkway.

“Selling the state’s toll roads will have serious repercussions that could negatively impact New Jerseyans’ quality of life, the State’s economy, and our financial well-being for generations to come,” said Assemblywoman Jennifer Beck, R-Monmouth and Mercer.  “That is exactly why it was vital for us to come together again to hear from the people who will be directly impacted by this major policy initiative.”

 Both Beck and Kean are members of the Assembly Transportation and Public Works Committee and both have been statewide leaders in voicing strong and consistent opposition to the Governor’s scheme, pointing out that it will only plunge the State into a
deeper fiscal crisis.

“New Jersey is hemorrhaging private sector jobs even while the size of government is increasing at rates unseen in virtually any other state in the country,” said Assemblyman Sean Kean, R-Monmouth.  “The Democrats’ plan to ‘solve’ this problem is really no solution at all.  They refuse to cut wasteful spending and instead are conspiring to generate more revenue through increased tolls that will hurt middle class families the most.”

Beck and Kean have been encouraged by recent public opinion
polls which show strong opposition to the Governor’s plan.  “What you’re seeing already, and what you can expect to see more of, is the Governor and his Democrat colleagues dressing their plan up in the cryptic terminology of Wall Street financiers,” Kean added.  “Thankfully, the public isn’t buying into the rhetoric.” 

Beck agreed with Kean’s assessment of the Democrats’ strategy
to sell their plan to the public.  “They may call this plan ‘asset monetization’ and they may well say that the public will remain in control of the Turnpike and Parkway,” Beck noted.  “But, at the end of the day, you can be sure that no one in his or her right mind is going to put up several billion dollars without getting something
in return.”

Both legislators said they were encouraged by the public’s
interest in attending their town hall meeting, noting that the more public discussion there is the on the topic, the more pressure Governor Corzine will be under to share the details of his proposal with everyone.

#####

July 23, 2007

MERKT: CORZINE SUPPORT OF STEM CELL
RESEARCH, OPEN SPACE BORROWING FLIES
IN FACE OF TOLL ROAD SALE TO REDUCE DEBT

It’s no secret that Governor Jon Corzine supports borrowing $650 million for stem cell research and open space preservation, however, such a move, coupled with his plan to sell the state’s transportation assets would be “the biggest debt debacle in state history,” Assemblyman Richard Merkt said today.
           
Merkt’s comments came in response to an Associated Press article today which notes that while the Governor has spent months arguing the state must tackle its debt problem, he supports plans to borrow $450 million for stem cell research and $200 million for open space preservation. This, despite new studies that show stem cell and open space borrowing would result in a “significant” increase in state debt.  
           
“On one hand Governor Corzine wants to sign away all rights to future toll road revenue to Wall Street investors to pay off state debt while at the same time he wants to borrow money to fund stem cell research and open space preservation. How can you even begin to reconcile such a ludicrous plan? asked Merkt. “If he and his fellow Democrats are successful in pulling off such a stunt, it would be the biggest debt debacle in state history, the consequences of which would be absolutely unprecedented.”
           
According to the article, studies by the nonpartisan Office of Legislative Services (OLS) found that the stem cell and open space proposals would cost taxpayers $37 million and $15.27 million respectively each year.
           
If Corzine signs two pending bills on his desk regarding these issues, voters would be asked in November to authorize the borrowing. The problem, says Merkt, R-Morris, is that most voters have no idea how much state debt has exploded in recent years nor do they have a clue about the size of state debt service which roughly doubles the state debt because Trenton doesn’t have the cash to pay off the debt today.
           
New Jersey’s debt, the fourth highest in the nation, has more than doubled since 2001 from $15 billion to $37 billion today and will cost the state about $3 billion this year or about 10 percent of
its budget.
           
"Drip by drip,New Jersey is slowly bleeding to death from state government's borrowing too much to feed its spending addiction.
At some point in the not-too-distant future, the loss of

‘blood’ will become critical, as the debt service eats up more and more of the state's operating revenues, explained Merkt. “What is truly scary is that the ‘patient’ does not seem to grasp what is happening to him and so cannot sound the alarm before it is
too late.”
           
He noted that voters will most likely approve the bond issues, because “they sound like good causes, and voters will not be offered the context of this debt via-a-vis the existing state debt
and debt service obligations. In other words, advocates of this
new state debt  are counting on voter ignorance to slide this
stuff through.”
           
Merkt said is it especially disturbing that Corzine and his Administration would even conceive of taking New Jersey down such an irresponsible fiscal path.
           
"In all my life, I have never witnessed such a callous display of fiscal irresponsibility and disregard for the future welfare of New Jersey. The governor's office is not inhabited by a bunch of yahoo know-nothings; Corzine, (State Treasurer Brad) Abelow and (Economic Growth Chief Gary) Rose are sophisticated Wall Street financiers and Goldman Sachs alumni. It is inconceivable that they do not perceive the threat to New Jersey's solvency. And if they see it, yet say nothing about the crisis, then what are we to make of their silence?”

#####

July 20, 2007

DeCROCE: ABELOW LETTER TO MAYORS ON
TOLL ROAD SALE SMACKS OF INTIMIDATION

 SAYS CORZINE ADMINISTRATION DESPERATE TO PUSH
SECRET PLAN DESPITE STRONG PUBLIC OPPOSITION

Assembly Republican Leader Alex DeCroce today said an intimidating and threatening letter from Treasurer Brad Abelow to mayors throughout the state regarding the Corzine Administration’s toll road sale plan is further evidence the Democrats are desperate to push their plan down the throats of a public that is strongly opposed to the secret plan.
           
“This letter leaves no doubt that this Administration is intent on selling the right to future toll road revenue to Wall Street investors. It’s another ‘take from Peter to pay Paul’ reckless gimmick that will have yet another long-term devastating effect on our state and its already overburdened taxpayers,” said DeCroce.
           
On July 6, 2007, DeCroce sent a letter to municipal and county officials urging them to pass local resolutions opposing the Governor’s plan to sell the state’s transportation assets. In response, Treasurer Abelow on Wednesday sent an intimidating letter to mayors strongly suggesting they ignore DeCroce’s resolution request, preposterously saying that opposition to the Administration’s plan is tantamount to opposing restoration of the state’s finances. 
           
Abelow’s letter further states, “Setting yourself in opposition to restoring the state’s finances by reducing debt and investing in the state’s future potentially aligns you with future tax increases or service cuts...”
           
In response to Abelow’s letter, DeCroce, R-Morris and Passaic, today sent a letter to all mayors stating that the Treasurer’s letter “...falsely accuses me of spreading “misinformation” about the Administration’s proposal.” However, DeCroce points out, “... he does not dispute or refute a single fact contained in either my letter or draft resolution. That’s because every statement in these documents is true, and the Treasurer knows that.”
           
DeCroce said Corzine and his party need to stop playing games with taxpayers and the state’s future and come clean with his proposal.
           
A copy of DeCroce’s and Abelow’s letters are attached.

NEW JERSEY GENERAL ASSEMBLY

STATE HOUSE
PO BOX 098
TRENTON, NEW JERSEY 08625-0098
(609) 292-5339

July 20, 2007

Dear Mayor:

Recently I wrote to you regarding a proposal by Governor Jon Corzine and Democrats in the Legislature to sell the right to future toll road revenue to Wall Street investors in order to close New Jersey’s projected multi-billion-dollar budget deficit next year. I asked your municipality to consider adopting a resolution opposing this risky venture because officials of the Corzine Administration have confirmed that the asset sale will lead to a toll increase each year for decades to come and generate billions of dollars in new state debt, which could very well lead to higher taxes. It poses a safety issue as well as trucks and other vehicles will map out alternate routes of travel, i.e. side roads that wind through our local communities, in an attempt to avoid these toll hikes.

In a letter to all mayors dated July 18th, State Treasurer Bradley Abelow urged you to ignore my request and voice no opinion regarding “asset monetization.” In addition to a hearty helping of self-serving political banter, Treasurer Abelow’s letter falsely accuses me of spreading “misinformation” about the Administration’s proposal. However, he does not dispute or refute a single fact contained in either my letter or draft resolution. That’s because every statement in these documents is true, and the Treasurer knows that.

No amount of political spin can change the truth. And the truth is the administration’s asset monetization proposal will create a mountain of new state debt. It will result in higher tolls for years to come. It will obligate taxpayers to repay billions of dollars in principal and interest on the bonds. Once the Administration spends the non-recurring revenue it gains from this “asset sale,” it will have to recoup those funds in future budgets, most likely through future tax hikes. Those are the facts.

Suggesting, as Treasurer Abelow did in his letter, that adopting a resolution condemning this reckless fiscal gimmick means you favor higher taxes and oppose a reduction of the state’s debt load is not only ridiculous, but it crosses the line into intimidation. At the very least, it is insulting to you as elected officials and the constituents you represent. You can examine the facts and decide for yourself, without spin or veiled threats by the Corzine Administration.

Many municipalities and counties have already adopted resolutions expressing their opposition to “asset monetization” because they know how dangerous the ramifications can be to the future of New Jersey and taxpayers. I again urge you to join the growing number of governing bodies that are taking a firm stand.

Sincerely,

Alex DeCroce,
Assembly Republican Leader

#####

July 17, 2007

BARONI BILL WOULD HAVE REQUIRED BRYANT
AND JAMES TO BE SUSPENDED AFTER INDICTMENT

MEASURE IS PART OF ASSEMBLY REPUBLICAN
ETHICS REFORM PACKAGE

Assemblyman Bill Baroni today applauded Democrat State Chairman Joseph Cryan’s call for indicted State Senators Wayne Bryant and Sharpe James to resign from office, adding that such situations would be handled automatically under legislation he has sponsored suspending indicted elected officials.
           
“If the Democrats had adopted legislation sponsored by my colleagues and I earlier this year, both Senators Bryant and James would already have been suspended from office,” said Baroni, R-Mercer and Middlesex. “Under the bills I have sponsored public officials would be suspended from office upon indictment – and the office declared vacant upon their conviction. This is an essential step if we are to put an end to the culture of corruption that has gripped our state.”
          
Baroni is the prime sponsor of ACR-79, which proposes a constitutional amendment suspending from office any indicted elected official, replacing them during that suspension, and requiring a declaration of vacancy upon conviction.
           
James was indicted last week on charges that he used city funds to support his personal travel and entertainment expenses and that he used the power of his office to improperly secure city land deals for friends and companions.
           
Bryant was indicted in April on 20 counts related to accusations that he used his position with the Senate Budget and Appropriations Committee to steer millions of dollars in grants to two state universities that allegedly gave him no-show jobs.
           
“It is disgraceful that these two officials are allowing this cloud to hang over the entire Legislature even after they have been indicted,” said Baroni. “In the future, people who violate the public trust in this manner should be immediately suspended and then removed from office upon conviction.”
           
Baroni’s bill is part of the Assembly Republican Blueprint for a Corrupt-Free New Jersey that has languished in the General Assembly since last fall.     

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July 16, 2007

DeCROCE TO CORZINE ON TOLL ROAD ASSET SALE PLAN: STOP LOBBYING INSIDERS, COME CLEAN WITH THE PUBLIC

TAXPAYERS DESERVE TO KNOW WHAT PLAN WILL ENTAIL

Assembly Republican Leader Alex DeCroce today said that Governor Jon Corzine should spend less time lobbying insiders and political activists about what he says his toll road asset sale will not include and more time coming clean with the public about what the plan actually will entail.
           
“The Governor has been very aggressive about spinning what his plan won’t include, but very secretive about disclosing what the plan will include,” said DeCroce, R-Morris and Passaic. “Instead of spending his time and resources lobbying insiders about his ‘core principles,’ the Governor has an obligation to tell all of the state’s taxpayers what his plan includes and how it will impact them.”
           
An item in the Sunday Star-Ledger reported that Corzine’s office had e-mailed a transcript of the governor’s remarks regarding his “core principles” on the toll road asset sale – in which he pledged not to sell or lease the New Jersey Turnpike – to 9,600 elected officials, lobbyists, activists and community leaders. The e-mail was also sent to a 6,000 person Democrat State Committee mailing list and 11,000 people in the transportation and utility industries.
           
Just last week the Corzine administration refused to release all documents related to the toll road asset sale, responding to an Assembly Republican office OPRA request by stating that, “if a search for responsive records were to be undertaken, the number of potentially relevant documents is so voluminous that it would cause a substantial disruption of the operations of [Treasury’s] Office of Public Finance . . .”
           
“If the Governor wants to communicate with the public, he could start by revealing the documentation as to how his administration has spent $4.5 million in preparation for this asset sale,” DeCroce said. “Clearly the administration has done a lot of work on this plan, and it is time he let his bosses – the state’s taxpayers –
know what he is up to.”

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July 16, 2007

CORZINE ADMINISTRATION CONTINUES TO STONEWALL ON RELEASE OF ASSET SALE PLAN DOCUMENTS

CLAIM THAT INFORMATION IN OPRA REQUEST IS TOO
“VOLUMINOUS” TO COMPILE SMELLS OF COVER-UP

Senate Republican Leader Leonard Lance and Assembly
Republican Leader Alex DeCroce today expressed outrage that
the Corzine Administration continues to drag its feet in providing documents their on the proposed toll road asset sale plan requested under an Open Public Records Act (OPRA) request
filed last month.

"The failure of the Corzine Administration to comply fully with
the request for public documents is deeply disturbing.  The Administration has expended more than $4.5 million in taxpayer money to pursue its toll hike scheme.  The public and the Legislature deserve the opportunity to examine as quickly as possible all of the pertinent documents relating to the Administration's plan.,” said Lance, R-Hunterdon and Warren. .
           
The Department of  Treasury sent a letter to the Assembly Republican Office Thursday evening stating that, “your OPRA request is so broad as to constitute a request for information that must be researched, analyzed and collated by the Department of the Treasury.” The letter went on to say “if a search for responsive records were to be undertaken, the number of potentially relevant documents is so voluminous that it would cause a substantial disruption of the operations of the Department of the Treasury’s Office of Public Finance...”
           
“Treasury has had almost three weeks to pull this information together and even requested a six-day extension, yet now they tell us they cannot comply,” said DeCroce, R-Morris and Passaic. “If the Corzine administration doesn’t have any details to share with the public about what it has planned for our toll roads, why is there such a ‘voluminous’ amount of material related to this sale? It is time for Governor Corzine to come clean and tell the public what kind of deal he is crafting.”
           
An OPRA request seeking all documentation with respect to vendors who have been, or will be, working on projects “in furtherance of, or preparation for, the monetization, sale, lease,” of state assets was filed Friday, June 22 through the Assembly Republican Office.
           
The filing asked for “requests for proposals” (RFPs) or other solicitations for vendors; proposals for work by vendors; contracts with vendors; work product of all vendors (including projected toll increases or financing backed by tolls); any and all communications, offering requesting or providing services;
and vouchers/requisitions for payment.
           
The leaders again demanded that Corzine outline his asset sale plan in detail before this November’s election.
           
A copy of the Department of Treasury response to
the OPRA request is attached.

July 12, 2007

James Glover                                                                                       
P.O. Box 098
Trenton NJ 08625

Re:  OPRA Request No.

Dear Mr. Glover:

This correspondence responds to your inspection request under the Open Public Records Act (OPRA) N.J.S.A. 47:1A-1 et seq., dated June 22, 2007, a copy of which is attached.

Please be advised that your OPRA request is so broad as to constitute a request for information that must be researched, analyzed and collated by the Department of the Treasury.  In the spirit of OPRA’s stated policy in favor of public access, the Department of the Treasury is prepared to work with you in an effort to assist you in refining and clarifying your request and to more adequately identify those specific documents you seek the opportunity to review.  However, such blanket and open-ended requests for documents and electronically generated and stored information are not authorized under OPRA.  Bent v. Township of Stafford Police Department, 381 N.J. Super. 30, 37 (App. Div. 2005).  Under MAG Entertainment, LLC v. Division of Alcoholic Beverage Control, 375 N.J. Super. 534, 549 (App.Div.2005), public agencies are required to disclose only “identifiable” government records; they are not required to conduct research or open-ended searches of agency files.  Moreover, our “courts have inherent power to prevent abuse” when records requests are overbroad and unduly burdensome.  MAG at 546 (citations omitted). 

In addition, if a search for responsive records were to be undertaken, the number of potentially relevant documents is so voluminous that it would cause a substantial disruption of the operations of the Department of the Treasury’s Office of Public Finance (“OPF”) to review those documents in order to respond to your request.  In an effort to reach an accommodation of your interests as well as those of the OPF, we propose to provide you with certain of the documents set forth in your request with specificity which can be readily identified and produced for inspection quickly and inexpensively.  These documents would include contracts for services, publicly released reports, and
press releases.

However, at this time, we are forced to withhold one response to the Engineering Consultant Services RFP/RFQ, pending review for confidentiality and/or privilege.  The vendor has objected to the release of their proposal claiming that the document is proprietary and confidential in nature.  The merits of their objections are currently under legal review.  Where the response to the RFP/RFQ is part of the contract, it is clearly noted in the package being provided for inspection.

We look forward to  discussing this matter with you.

To set up an on-site inspection of the available records, please contact the Treasury Government Records Access Unit to discuss this matter further.

Sincerely,
Barbara O’Hare
Manager, Government Records Access Unit

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July 12, 2007

BECK AND KEAN BLAST CORZINE FOR REFUSING TO STIPULATE A LIMIT ON FUTURE TOLL INCREASES

SAY GOVERNOR’S FIRE-SALE PLAN UTTERLY DISREGARDS THE
LONG-TERM INTERESTS OF NEW JERSEY TAXPAYERS

Assemblyman Sean T. Kean and Assemblywoman Jennifer Beck today assailed Governor Jon S. Corzine for forging ahead with a plan to sell-off New Jersey’s most important transportation assets for a short-term infusion of cash to the state coffers, a move which will cripple the financial well-being of the state for
decades to come.

“It’s simply astounding that the Governor refuses to hear the voice of the people on this matter,” said Beck, R-Mercer and Monmouth.  “Selling the Turnpike now for cash upfront will destroy an important revenue stream for New Jersey in the future and bring fiscal ruin to the State for generations.”

Kean and Beck made their comments in light of the Governor’s recent decision to refuse to place any limit whatsoever on the toll hikes that will inevitably be part and parcel of his still secret plan.

“The Governor’s refusal to be candid with the people of the state and to disclose to them the details of his secret plan belies the height of arrogance,” said Kean, R-Monmouth.  “New Jerseyans don’t want to see their roads sold, they don’t want to pay more to travel and to commute in New Jersey, and they don’t want the state to continue to flirt with financial ruin.  What they want is spending restraint and they deserve it.”

Beck and Kean have pledged to work with their Republican colleagues in the Assembly to do whatever they can to stop the Governor and the Democrats in the Legislature from mortgaging the state’s future by selling-off state toll road assets.

“The Democrat philosophy always seems to focus on obtaining more money for the government and more money for friends and family members of Democrat legislators,” Beck said.  “I think the people of the state are beginning to see that the government’s activities simply aren’t worth the money it costs to fund them”

Kean agreed.  “The people are literally being taxed out of this state.  The people are fleeing to Pennsylvania and Delaware while New Jersey is hemorrhaging private sector jobs at an alarming rate,” said Kean.  “Without tax reform and spending restraint, the state will go bankrupt.”

Both Kean and Beck have maintained that the Governor’s plan to enable and encourage the state to increase spending would be potentially disastrous.  “When you’re already facing a $37.5 billion debt, as well as pension and health care liabilities in excess of $100 billion, its just unreasonable to think that you can spend your way out of the problem,” said Beck.

Kean added that the Governor and the Democrats in the Legislature have got to face facts and admit that the state must tighten its belt and place a moratorium on new spending.  “Otherwise, our children may not be able to recover,” he said.  “Their’s will be the first generation to fare worse than their parents did.  For them the American Dream will be dead.”

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July 12, 2007

DeCROCE: SHARPE JAMES INDICTMENT IS ANOTHER
REMINDER THAT THERE IS MUCH MORE WORK TO BE
DONE ON ETHICS REFORM

CORRUPTION CONTINUES TO DRIVE UP COST OF GOVERNMENT

Assembly Republican Leader Alex DeCroce said that today’s indictment of State Sen. Sharpe James provides just one more reminder that the watered-down ethics reforms of recent years have not stemmed the rising tide of corruption in New Jersey and that stronger action is needed.
           
“We now have two state Senators indicted, and with the on-going investigation into the legislative grant scandal, who knows how many more there may be before the end of this year,” said DeCroce, R-Morris and Passaic. “Meanwhile key elements of the comprehensive Assembly Republican ethics reform package have languished because the Democrat majority thinks they have done enough on ethics reform. Clearly they have not.”
           
James was indicted by a grand jury on 33 counts of public corruption, including defrauding taxpayers by using city funds for personal travel and entertainment expenses. James was the subject of a federal investigation into his handling of city land deals and excessive travel expenses that James billed to the city while he was mayor.
           
DeCroce, noting the large amount of state aid that has gone to Newark in recent years, said that this is a perfect example of how corruption is taking a financial toll on New Jersey taxpayers.
           
“When officials in cities like Newark squander or misappropriate state funds it drives up the cost of government and hurts all of New Jersey’s taxpayers,” DeCroce said. “Worse yet, these wasted dollars could have been used to provide property tax relief to suburban and rural communities who have been shortchanged in recent years.”
           
DeCroce said Republican members of the Legislature will continue to push for action on the Assembly Republican Blueprint for a Corrupt-Free New Jersey that would:

• Impose a sweeping, immediate ban on dual office-holding;
• Stop pension boosting and tacking by public officials;
• Suspend indicted public officials without pay;
• Require jail time for convicted public officials;
• Require full pension forfeiture for convicted public officials;
• Empower the public by reforming the ethics complaint process;
• Turn control of the Legislature’s ethics committee over to private citizens; and
• Revise the Legislative Code of Ethics, including provisions to prevent the future abuse of grant funds.

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July 11, 2007

BECK: SHARPE JAMES CASHING IN ON PENSION SHOWS SHORTCOMINGS OF PENSION REFORMS

LAW ON FORFEITURE OF PENSIONS BY OFFICIALS DOES NOT APPLY TO EXISTING PENSIONS OF CURRENT LAWMAKERS

Assemblywoman Jennifer Beck today expressed disgust at reports that State Sen. Sharpe James withdrew $500,000 from his Essex County College pension last Friday even as he is being investigated for potential corruption charges by the U.S. Attorney, and said this is another example that more needs to be done in the area of pension reform.
           
“The law the Legislature passed this spring essentially grandfathered the pensions of corrupt public officials collected prior to enactment even as several of those legislators are now under federal investigation,” said Beck, R-Monmouth and Mercer. “Clearly this bill fell short of providing the immediate protection the taxpayers deserve from public officials who abuse the public trust to personally enrich themselves.”
           
According to the Star-Ledger, State Sen. Sharpe James,
the target of a federal corruption investigation, has withdrawn
close to half of a $1.1 million retirement account at Essex County College, where he was athletic director more than twenty
years ago.
           
The Legislature passed a bill in January, S-14, sponsored by State Senators John Adler and Ellen Karcher, that provided for forfeiture of a public pension if you are convicted of an offense related to that office. This bill would only apply to pensions collected after the date of the bill’s enactment.
           
Beck has sponsored a bill, A-4139, that would mandate the pension board to forfeit every public pension of officials convicted on corruption charges, including pensions collected prior to enactment of the law. By mandating the pension board to do so, her bill avoids ex post facto concerns since the board has always been empowered to do so – just not mandated.
           
Beck noted that rarely have pension boards exercised this power which is why the mandate is necessary.
           
This bill came in the wake of a federal monitor’s report accusing State Sen. Wayne Bryant of pressuring University of Medicine and Dentistry of New Jersey (UMDNJ) officials to create a $38,220 no-show job allowing him to “lobby himself” for taxpayer funds.
           
“We need to do more in the area of pension reform and the bill I introduced this spring would put a stop to this abuse,” Beck said. “We need to ensure that public officials are aware that any public pension they collected – even funds collected prior to enactment of this law – will be forfeited if they violate the public trust.”

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July 9, 2007

DeCROCE BRANDS TURNPIKE ASSET SALE ‘HIGHWAY ROBBERY’ AND FEARS IT WILL ‘BREAK THE BANK’

URGES DEMOCRATS TO ABANDON PLAN TO PLUNGE NJ INTO FURTHER DEBT BUT TO CUT WASTE, CONTROL SPENDING INSTEAD

On the heels of a new poll today that shows a growing majority of New Jersey taxpayers oppose the sale or lease of the New Jersey Turnpike, Assembly Republican Leader Alex DeCroce urged Governor Jon S. Corzine and the Democrats to abandon plans to sell the rights to future toll revenues to private investors in order to balance next year’s budget.
           
Public opposition to Corzine’s “asset monetization” plan for New Jersey toll roads has dropped to 31 percent, according to a new Quinnipiac poll. Yet it was learned this weekend that the administration continues to pursue the plan, to the point of hiring a British engineering firm that is in the process of surveying the New Jersey Turnpike from Interchange 1 by the Delaware Memorial Bridge through Interchange 4 in Mount Laurel.
           
“This reckless scheme is a dangerous shell game that will guarantee toll increase each year for decades to come and, in the end, higher taxes as long as Democrats refuse to do what the taxpayers are begging them to do – get rid government waste and control their appetite for massive new spending programs,” DeCroce said.
           
“Selling billions of dollars of bonds to private investors backed by toll revenue and a high return on interest just to plug a hole in the budget is not a good deal for the taxpayers because they know the money will be squandered and taxes, in addition to tolls, will have to go up to pay for this fiasco,” DeCroce added. “I don’t get it. The taxpayers keep saying ‘no’ and, still, the Democrats forge ahead. What part of ‘no’ don’t they understand?”
           
DeCroce said he found incredulous a statement by state Treasurer Bradley Abelow reported in The Star-Ledger this weekend that the administration now feels “like the state's fully taxed. There is a strong desire not to raise taxes.”
           
“Gee, you think? What was their clue? Could it be the 94 tax increases imposed by the Democrats over the past five years?
           
“This fiscal folly has made New Jersey unaffordable, and tens of thousands families are being forced to flee the state each year,” DeCroce noted. “Unless the plug is pulled on this ‘asset monetization’ scheme, Wall Street investors will be all smiles but it will be the final straw for many more taxpayers who will have no choice but to join the exodus when the bill comes due.”  

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July 5, 2007

CORZINE ADMINISTRATION SEEKS EXTENSION
ON OPRA REQUEST FOR ASSET SALE PLAN DOCUMENTS

REQUESTED 4-DAY EXTENSION FOR RESPONSE TO OPRA REQUEST

Senate Republican Leader Leonard Lance and Assembly Republican Leader Alex DeCroce today expressed concern that
the Corzine administration has not yet provided documents in response to the Open Public Records Act (OPRA) request filed last month seeking information on the proposed toll road asset sale plan, but said they were pleased the Treasury Department has indicated that the documents can be made available by next week.
             
The leaders again demanded that Corzine outline his asset sale plan in detail before this November’s election.
           
“For three months the Administration has been promising that it would soon make its proposal public,” said Lance, R-Hunterdon and Warren. “It now appears that the Administration  wants to postpone releasing its proposal until after the November elections. It’s time for the Administration to come forward with the details
of its plan.
           
“Whether it’s selling the Turnpike to any public or private interest or selling the tolls collected on the Turnpike, it is an exchange of something of value for money, which is the definition of a sale.”
           
An OPRA request seeking all documentation with respect to vendors who have been, or will be, working on the toll road sale, lease, or monetization, was filed Friday, June 22, through the Assembly Republican Office. Under the OPRA law there must be some acknowledgement of the request by the party served within seven business days. In a response Tuesday, Treasury did not provide the documents, but sought a four-day extension to gather the necessary materials.
          
The filing asked for “requests for proposals” (RFPs) or other solicitations for vendors; proposals for work by vendors; contracts with vendors; work product of all vendors (including projected toll increases or financings backed by tolls); and vouchers/requisitions for payment.
           
“The governor repeatedly stated throughout the budget process that he wanted transparency, but when it comes to his toll road plans he prefers a shroud of secrecy,” said DeCroce, R-Morris and Passaic. “New Jersey taxpayers can justifiably suspect that this will be a bad deal for them if for no other reason than the extraordinary efforts the administration is taking to keep a lid on the plan until after this election.”
           
The budget Governor Corzine signed last week gives him a blank check to make plans to sell state assets. He reacted angrily to questions about the toll road plan and insisted it wasn’t a “sale” but still refused to explain any details of his plan. He would not commit to disclosing the plan before Election Day nor would he commit to seeking voter approval of his proposal.
           
Lance and DeCroce said it was inappropriate for such an important issue to have been reduced to a single paragraph in a 291-page budget Corzine signed. It is even more disturbing that the Corzine Administration wants to keep its proposal a secret until after November 6.
           
Despite the Governor’s efforts to keep details under wraps, Republicans pledge to make public any information they receive regarding the sale of state assets..

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July 3, 2007

IN CASE YOU MISSED IT ...

State assets should be on public's mind
Editorial, The Daily Journal of Vineland

Gov. Jon S. Corzine has nobody but himself to blame for the questions about his administration's plans to raise cash from state assets.

First, the talk was about leasing or selling the state's toll roads -- Garden State Parkway and New Jersey Turnpike -- and/or the lottery to pay off debt and free up revenue for other programs. There was no solid plan, just discussion.

When that trial balloon was burst, the idea was floated to create a nonprofit corporation that could issue bonds and raise tolls every year to pay back bondholders. Still no official plan, but plenty of speculation about the billions of dollars such an arrangement would generate for the state instantly.

The Corzine administration said there will be an open and public discussion in advance of any transaction -- 21 meetings in all 21 counties statewide. The governor said he wouldn't sell or lease state assets to a foreign or for-profit operator. But language in the budget gave Corzine the power to spend what's necessary for legal, engineering, financial advice and other services associated with selling or leasing state assets. And still, the public hasn't seen a plan, and apparently won't until after the November election.

Given this, it's no wonder the public and some lawmakers are concerned. They have legitimate concerns about the maintenance and operation of the roads, the impact of the projected toll increases on drivers' wallets, the lost annual revenue currently generated by the state assets, and the openness of the whole process. And there are no guarantees that the state would even spend the billions of dollars in instant cash responsibly.

The governor has said he guarantees the public will have its say, but only after a detailed plan is unveiled.

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July 3, 2007

IN CASE YOU MISSED IT ...

Tricky turn in the road
Editorial, The Times of Trenton

Republicans, looking to make a comeback in the November elections, sensed they had a rock- solid campaign issue they could use against the Democrats: the sale or lease of the New Jersey Turnpike.

Looking to head off any political traction the GOP could muster on the issue, Gov. Jon Corzine last week angrily denounced the "political demagoguery" of his foes and declared that the state's highways would not be sold or leased to for-profit or foreign interests.

End of story, right?

Well, not exactly.

The governor left the door open to pursue his still-evolving plan to "monetize" state-owned assets that include the Turnpike, the Garden State Parkway and the Atlantic City Expressway. The problem is that no one is quite sure what that means.

It appears that the governor is considering creating some sort of public entity with the authority to issue bonds that would immediately generate a substantial amount of cash that could be directed to the state's coffers. The bonds would be paid off by future toll revenues.

But Republicans and many Democrats are rightly concerned that the plan may lead to higher tolls and less control of our state roads.

Before the Democratic-controlled Legislature approved the $33.5 billion state budget on June 21, Republican lawmakers raised a stink over a paragraph tucked away in the 291-page budget document that allowed for spending money to study "the monetization, sale, or lease of public assets, subject to the approval of the Director of the Division of Budget and Accounting."

An irate Senate Minority Leader Leonard Lance, R-Flemington, declared, "This clause gives the administration carte blanche to negotiate a deal to sell off state assets and then, after Election Day, when the deal is a fait accompli, send the proposal to the Legislature to be rubber-stamped."

Heeding the mounting criticism, Gov. Corzine deleted the word "sale" from the document, but still left open the possibility of "monetizing" state assets.

All too often, governors have resorted to one-time quick fixes and smoke and mirrors to bridge gaping holes in the state budget; "monetizing" may just be another gimmick that will give the state a quick infusion of funds but bring along with it years of debt.

Balancing the budget is not rocket science: Spending should match income -- it's that simple. Either the state raises taxes or reduces spending on the services it provides. One of the fundamental services for which the state is responsible is an efficient and safe highway system for its citizens. That should not be delegated to another entity.

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July 2, 2007

BECK: GOVERNOR IS STILL PLAYING GAMES
WITH ASSET MONETIZATION PLAN

Assemblywoman Jennifer Beck today issued the following statement in response to Governor Jon Corzine’s asset monetization proposal:
           
“Governor Corzine’s comments yesterday will do little to ease the concerns of New Jersey taxpayers regarding his proposed asset monetization scheme.  Commuters should brace themselves for a steep toll hike.   Any way you slice it, whether it is a lease, sale or asset monetization, putting New Jersey’s toll roads in the hands of a private entity will lead to higher costs for drivers.
           
“While I’m glad the Governor is pledging to hold an open public discussion of this issue, he is still not willing to put a plan in front of the public. Until he does so, we have to be skeptical, particularly in light of comments in the newspaper last week from administration sources indicating that no action will be taken until after this November’s elections. We have seen too many broken promises in recent years on everything from dual office holding,
to pay-to-play, to property tax relief, for us to just take him at
his word.
           
“It is time for the Governor to put his plan on the table and let the public and the Legislature debate it on its merits. This issue is far too important to be kept under wraps until after November.”

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July 2, 2007

MERKT: ONLY CORE PRINCIPLE MISSING FROM
CORZINE’S ‘CORE PRINCIPLES’ IS THE TRUTH

GOVERNOR NEEDS TO LET THE PUBLIC KNOW
WHAT ‘MONETIZATION’ REALLY MEANS

Assemblyman Richard Merkt today said that Governor Corzine needs to stop the double-talk and come clean with the public offering a detailed explanation of what he means by asset “monetization,” and how exactly that differs from a sale or long-term lease akin to a sale.
           
“The administration has been studying this issue for months and they have put language into the budget for this plan, so I think the Governor knows what he has in mind,” said Merkt, R-Morris. “It is time for him to put his cards on the table and explain to the public exactly what he means by “monetization.”
           
Last week Governor Corzine insisted he is not planning to “sell” New Jersey’s toll roads, but he refuses to explain the details of what he is planning to do with these state assets. The Governor released a list of core principles to guide his “asset monetization” plan, but not the plan itself.
           
Merkt noted that the Corzine administration put the word “sale” into the budget language in its own budget proposal, and it was disingenuous for them to veto out just the word “sale,” now that they see the immense public opposition to the plan.
           
“The public will not be fooled by the vocabulary games being played by the Governor,” Merkt said. “It is ludicrous to suggest that private investors will hand over billions of dollars to the state and get nothing in return. The suggestion that there is free money out there if we do this is balderdash. If we’re getting this money, we are giving up something in return.”
           
Merkt said that he stands ready to revise his opinion if the Governor places all the details of the proposal on the table, and can credibly explain how monetization differs from a sale or long-term lease. Until then, Merkt added, legislators and the public have every right to be suspicious.

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