January 31, 2008

ROONEY AND VANDERVALK: CORZINE ADMITS HE’S BEEN SPENDING MONEY THE STATE CAN’T AFFORD
ALSO QUESTION WHAT TAXPAYERS SENATOR SARLO HAS BEEN TALKING TO ABOUT THIS PLAN

Responding to Governor Corzine’s comments that if he doesn’t get his massive toll hike plan through the Legislature he may not be able to fulfill contract obligations to state workers, Assemblyman John Rooney and Assemblywoman Charlotte Vandervalk noted that this must mean the state worker contracts negotiated by Corzine last year have contributed to the current fiscal mess.

“If he can’t fulfill the contract obligations he made in handing out state worker contracts last year, he never should have agreed to those contracts,” said Vandervalk, R-Bergen. “We have seen an $11 billion increase in state spending over the past six years and now the Governor tells taxpayers they must shell out more because the state can’t afford to meet its obligations. This is outrageous.”

A story today in The Record of Hackensack reports that Corzine told an audience at the 200 Club of Bergen County in Washington Township that his plan to increase highway tolls and freeze state spending is essential if the state wants to fulfill contractual salary obligations and fund pensions for state employees.

The story also quotes State Senator Paul Sarlo as saying he supports Corzine’s plan because, “It’s what the people of New Jersey want, and we’re going to give it to them.” This is despite a Fairleigh Dickinson University-Public Mind poll released this week showing New Jersey residents oppose the plan 59 percent to 33 percent.

“Who exactly is Senator Sarlo talking to that he thinks the people of New Jersey support this toll hike plan?” asked Rooney, R-Bergen. “The people I talk to are outraged about this proposal and they overwhelmingly oppose it. They don’t want any parts of this plan and they will not be happy if we ‘give it to them’ as the Senator suggests.”

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January 31, 2008

MERKT: CORZINE’S CADRE OF POLITICAL INSIDERS SHOWS HE’S OUT OF TOUCH WITH TAXPAYERS
AS CORZINE ROLLS UP SUPPORT FOR TOLL PLAN FROM INSIDERS AND POLITICAL OPERATIVES, TAXPAYER ANGER GROWS

Assemblyman Richard Merkt today said that Governor Jon Corzine’s decision to roll out an ever-growing list of Trenton insiders, lobbyists and political operatives in support of his 800 percent toll hike plan shows that the Governor doesn’t care what the average New Jersey taxpayer thinks as long as he can muscle his plan through the Legislature in Trenton.

“Governor Corzine can secure the endorsement of any number of lobbyists and former political mouthpieces, and it still doesn’t mean the people of New Jersey support his scheme,” said Merkt, R-Morris. “It seems like every day that Corzine rolls out some Trenton insider endorsement for his plan his poll numbers and public support for the proposal drops even further.”

Earlier in the week Corzine announced the support of the well-heeled executive board of the New Jersey Chamber of Commerce. Yesterday he rolled out the support of an advocacy group to support the plan that will be headed by a former chief of staff for the state Department of Transportation. He also touted support for his plan by two former Republican political spokesmen.

At the same time a Fairleigh Dickinson University-Public Mind poll released this week showed New Jersey residents oppose the plan by a 59 percent to 33 percent margin and the poll also showed that Corzine’s approval rating for his performance as Governor has dropped to 41 percent. According to press accounts Corzine also has faced a hostile reaction to his plan at recent town meetings on the proposal.

“Governor Corzine can see that the public overwhelmingly opposes his plan, but his intention is to ram this plan through the Legislature by playing the inside game,” Merkt said. “The Governor’s town meetings are nothing more than dog and pony shows that were never intended to solicit public input – at least not any public input to which the Governor chooses to listen.”

Merkt serves on an Assembly Republican task force that will be traveling around the state to solicit public input on the Governor’s proposal and to listen to alternative ideas offered by the taxpayers.

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January 31, 2008

IN CASE YOU MISSED IT...

Codey plan deserves a look
Editorial, The Star-Ledger, January 31, 2008

Senate President Richard Codey has suggested the state examine leasing the lottery to a private operator as a way to generate at least a portion of the billions needed to pay down the state's $32 billion debt.

Codey's lottery option, which could produce as much as $10 billion, would not replace the governor's proposed toll hikes, which would bring in $38 billion, but could be used to reduce the suggested 800 percent increase.

Gov. Jon Corzine says he's not dismissing Codey's suggestion out of hand but says it would take too long. The governor, who took 18 months to put together his own still-incomplete plan, suddenly wants to move quickly and have everything locked up by March. Leasing the lottery doesn't fit into his timetable. Voters would have to approve a constitutional amendment in November before the Legislature could get serious about Codey's lottery proposal, and that means the money would not be available for next year's budget.

We don't know whether leasing the lottery is a sound idea, but it deserves consideration. Besides, why rush through a proposal that the state will have to live with for 75 years without talking about other possibilities?

The governor's call for fast action is puzzling, especially considering he still has not produced a written version of his plan -- one that would disclose all the details -- and he refused to talk about it during last year's campaign, when the Democrats' control of the Legislature was on the line.

Corzine finally went public with the bare basics of his plan about three weeks ago. That came nearly 18 months after he first mentioned the idea and after he had in hand more than $1 million in reports from outside firms hired to study proposals and produce figures.

When he released his plan, he made a challenge, calling on those who didn't like it to come forward with ideas that would accomplish what he says his would -- slashing the state's $32 billion debt in half.

Citizens attending Corzine's county meetings have done just that, although their plans are less sophisticated than his -- primarily because they didn't have the benefit of the work done by those consulting companies.

In coming up with his plan, Codey seized on a report done for Corzine by UBS, a Swiss financial services firm. The company identified state assets that could produce significant sums, and the lottery was prime among them.

Codey's proposal as well as others -- a gas tax increase, expansion of the sales tax to services, significant budget cuts -- deserve to be part of the discussion. Lawmakers should resist the governor's call to march in lockstep behind him as though he has the only solution to the state's fiscal woes.

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January 31, 2008

IN CASE YOU MISSED IT...

Trenton can't renege on tax relief promise
Editorial, Courier-Post, January 31, 2008

Legislators swore property tax rebates would be permanent. They must stick to that.

It's absolutely maddening. A year ago, state lawmakers swore to us up and down that their property-tax rebates were real property-tax cuts. They'll last; they're permanent; they're not an election-year gimmick -- that's what they said.

Now, not even a year later, there are signs that our elected leaders in Trenton lied. Again.

Tuesday, Jon Corzine, our state's great governor/financial guru, started greasing the skids for what should be another hugely unpopular proposal -- trimming the property-tax rebates of 20 percent, 15 percent or 10 percent most New Jersey homeowners received last year.

This year, Corzine is committed to freezing spending in the state budget. He's also made it clear that he's too weak-willed or too beholden to special interests such as the labor unions to make significant program cuts in our bloated state government. That could mean laying off some of our more than 80,000 state workers and doing without some government programs. We can't possibly do that even when it's clearly the solution, Corzine figures.

So Corzine has himself between the proverbial rock and a hard place, and guess what could get slashed -- the supposedly untouchable property-tax rebate program.

Corzine said he needs to ax about $2.5 billion in spending just to freeze the state budget at last year's level of $33.5 billion. The property-tax rebate program, which was passed by the Legislature last year with much gusto, costs about $2.2 billion. The average New Jersey homeowner got a rebate check in the mail in September, conveniently a few weeks before the election, for a little over $1,000.

When asked directly Tuesday whether rebates would be cut, Corzine wouldn't say.

"We will have to do those things that leave us with spending no higher than it is this year," he promised.

Corzine recently said this while speaking to mayors from around the state about the state's troubled finances: "If you don't solve these problems, property tax relief will not be able to be accomplished."

Our governor would seem to be eying the tax rebates as a way to close part of the $2.5 billion gap.

If our state senators and Assembly members, especially those Democrats who so vigorously supported the rebate plan, allow the governor to go through with this and slash something after one year that they swore would be lasting relief, they'll pretty much be the biggest liars to ever hold public office in New Jersey. And that's saying something in a state that has a long history of lying politicians.

We, as an Editorial Board, never gave the rebates more than lukewarm support because they didn't constitute real reform. They weren't attached to any major spending decreases by our state government and actual tax bills for homeowners never went down.

But after just one year, and after strong promises were made to taxpayers that these rebates were a permanent thing and not an election-year gimmick, it would be a slap in the face to every New Jerseyan to cut them.

Can anyone in Trenton keep their word on property tax relief? Legislators should ask themselves that if and when Corzine comes calling looking to slash the rebates.

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January 30, 2008

CHIUSANO SAYS MASSIVE HORIZON IDENTITY THEFT WARRANTS STATE, FEDERAL INVESTIGATIONS
WITH HUNDREDS OF THOUSANDS OF NJ RESIDENTS AT RISK, LEADER CALLS ON ASSEMBLY SPEAKER AND SENATE PRESIDENT TO CONVENE JOINT LEGISLATIVE HEARINGS

Assemblyman Gary Chiusano today called for an investigation by the Attorney General and the U.S. Attorney into a startling admission by Horizon Blue Cross Blue Shield of New Jersey that some 300,000 of its subscribers are at risk of identify theft.

“Horizon is one of the state’s largest health insurance companies and the major provider of benefits for public employees, many of whom are retired and have moved out of state,” said Chiusano, R-Sussex, Morris and Hunterdon. “It is outrageous that such a security breach could happen, and its repercussions could certainly cross state lines.”

In addition to an investigation by state and federal law enforcement, Chiusano, a member of the Assembly Financial Institutions and Insurance Committee, also called for the security breach to be the subject of a joint legislative hearing with the Senate.

He plans to introduce legislation that would force Horizon to pick up any legal costs and to reimburse for damages suffered as result of any identify theft crimes stemming from its negligence in this matter.

“Horizon needs to explain how the names, addresses and social security numbers of 300,000 out of its more than 3,000,000 subscribers were entrusted to an employee’s laptop computer and why any employee should be allowed to take such information home,” Chiusano said. “Given the vast scope of the monetary damages subscribers can suffer, I don’t see how a complimentary, one-year membership in a credit monitoring service is sufficient compensation for this blunder. Hundreds of thousands of people could be the victim of identify theft once a year has elapsed.”

Horizon says the laptop containing the personal information was stolen from an employee’s home.

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January 30, 2008

DeCROCE: SOME TRENTON INSIDERS MAY SUPPORT TOLL HIKES, BUT NEW JERSEY FAMILIES DO NOT
DIRECTS GOVERNOR’S ATTENTION TO NEW FDU POLL SHOWING NEARLY 60 PERCENT OPPOSE TOLL PLAN

One day after Governor Jon Corzine rolled out more “insider” support for his massive toll hike and borrowing proposal, Assembly Republican Leader Alex DeCroce today directed the Governor’s attention to a new poll showing New Jersey residents oppose the plan by a 59 percent to 33 percent margin.

“The Governor can twist arms and get the support of as many Trenton insiders as he wants, but he needs to pay attention to what the average New Jersey taxpayer is saying,” said DeCroce, R-Morris and Passaic. “Endorsements by Trenton lobbying groups aside, this poll shows that New Jerseyans overwhelmingly oppose this plan, including those who don’t commute on the toll roads every day.”

The Fairleigh Dickinson University-Public Mind poll released yesterday demonstrated that opposition to the Governor’s 800 percent toll hike plan cuts across many demographics and includes even those families who don’t rely on the toll roads to travel every day.

The poll also showed that Corzine’s approval rating for his performance as Governor has dropped to 41 percent. While the public has been lining up against the toll hike plan, Corzine has been trying to line up Trenton lobbyists and insiders to back his proposal.

“New Jersey residents are already overtaxed and this state has become increasingly unaffordable for middle class families,” DeCroce said. “The Governor’s plan will make that situation even worse and he needs to listen to what the public is saying. No Wall Street power point presentation or endorsement from a lobbyist is going to cover up the negative impact of this plan for New Jersey families.”

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January 30, 2008

IN CASE YOU MISSED IT...

Corzine must listen to what people want
Editorial, Courier-Post, January 30, 2008

Gov. Jon Corzine took his toll-hike road show to Voorhees Monday night, another stop on his 21-county tour to sell his debt-reduction plan.

Corzine is convinced that dramatically raising highway tolls – up to 50 percent toll increases every four years – is the least painful plan for attacking the state’s $32 billion debt and funding much-needed transportation projects.

Debt repayment swallows about 15 percent of state revenues. That percentage continues to grow, squeezing out spending on other state priorities, such as education.

Although the toll hikes would fall heaviest on a relatively small sector of New Jerseyans, Corzine seems to not understand that taxpayers aren’t looking for the lesser of two evils. When it comes to increasing taxes or fees in a state where the cost of living already is breathtakingly high, the people don’t want it.

While Corzine is out selling his toll-hike plan, he is not listening very well to what average people are saying. They don’t want to discuss any tax/fee hikes – toll, income or gas – until state and local officials summon the guts to cut spending. That’s what New Jerseyans are forced to do, cut their family’s spending as costs continue to rise.

Corzine should give the people what they want, less government. Of course, it will mean sacrifices when it comes to services. But Corzine and the gutless tax-and-spend legislators of both parties shouldn’t assume people don’t realize what they are asking.

There will be less money for education, prisons, perhaps even tax rebates. At the local level, taxpayers will be confronted with the need to cut back local services, such as spending on schools, to realize any savings. It will be a painful retrenchment. But that is what people want and deserve, a smaller government that requires less of their hard-earned money.

Maybe, after living with less, New Jerseyans won’t like it. That’s when state officials can offer alternatives to ease the pain.

But New Jerseyans should decide how much more should be spent. We agree with Corzine that no new major indebtedness should occur without voter approval.

Corzine may believe he has offered the most workable blueprint for restructuring state finances. But many New Jerseyans just don’t agree with opening new revenue streams without state and local government first making drastic cuts in spending.

Corzine could turn his quixotic tour into something more meaningful if he supported the spending reduction-plan favored by many New Jerseyans.

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January 29, 2008

CASAGRANDE AND O’SCANLON: MONMOUTH STILL SHORTCHANGED UNDER GOV’S ROAD PLAN
NOTE THAT EVEN MORE AID WILL BE NEEDED WHEN TOLL ROAD TRAFFIC POURS ONTO LOCAL ROADS

Assemblywoman Caroline Casagrande and Assemblyman Declan O’Scanlon today said it appears Monmouth County will get shortchanged under a transportation capital aid plan that the Corzine administration says will distribute transportation aid to counties most affected by his massive toll hike proposal.

“While the Governor says that transportation aid will match the impact of his toll plan, the numbers show Monmouth County still gets shortchanged under this proposal,” said Casagrande, R-Monmouth and Mercer. “Monmouth County will need a significant increase in aid because our road maintenance costs will be greatly inflated by the diversion of toll road traffic onto our local roads.”

In a New Jersey Department of Transportation capital plan made public last night, the NJDOT projects providing 7 percent of its aid to Monmouth County transportation projects. It is estimated that 7 percent of the state’s toll revenue is derived from Monmouth County commuters.

Meanwhile, Bergen County, which accounts for an estimated 6 percent of the state’s toll revenue, will receive 12 percent of the aid distributed and Union County, which accounts for about 4 percent of toll revenue will get 8 percent of the state aid.

“To say that these numbers are tied to the impact on toll-payers is misleading, and it seeks to sway the public in those counties into supporting a plan that is not to their benefit,” said O’Scanlon, R-Monmouth and Mercer. “Clearly other factors have figured into this equation and Monmouth County is still coming out on the short-end with these numbers. Trenton needs to stop concocting fiscal gimmicks and address the root of this problem by cutting spending.”

O’Scanlon and Casagrande noted that the county-by-county approach also fails to account for the fact that toll hike costs will be passed onto consumers throughout New Jersey as a result of higher transportation costs for shipping goods through the state.

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January 29, 2008

BIONDI STATEMENT ON NJ CHAMBER OF COMMERCE ENDORSEMENT OF CORZINE TOLL HIKE PLAN

Assembly Conference Peter Biondi, R-Morris and Somerset, issued the following statement today regarding the endorsement of Governor Jon Corzine’s 800 percent toll hike plan by the Board of Directors of the New Jersey State Chamber of Commerce:

"It is extremely puzzling and disturbing that the Board of Directors of the New Jersey State Chamber of Commerce would come out in support of the governor’s highly controversial toll hike plan given the state’s extremely poor business climate.

“The Corzine Administration’s flawed proposal, which will burden taxpayers and businesses alike with additional crushing debt, will result in an accelerated exodus of residents and businesses from New Jersey, leading to further  deterioration of the state’s economy.”

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January 29, 2008

DeCROCE: TOLL HIKES MAY BE AFFORDABLE FOR WEALTHY TRENTON INSIDER CHAMBER BOARD, BUT NOT FOR MIDDLE CLASS FAMILIES
CHAMBER EXECS MAY ENDORSE HIGHER TOLLS AND LESS PROPERTY TAX RELIEF, BUT TAXPAYERS CAN’T AFFORD IT

Assembly Republican Leader Alex DeCroce today issued the following statement in response to the announcement of a decision by the board of directors of the New Jersey Chamber of Commerce to endorse Governor Jon Corzine’s massive toll hike and borrowing proposal:

"Clearly the wealthy executives serving on the board of the New Jersey Chamber of Commerce think New Jersey taxpayers don’t pay enough to live in this state. Not only do they endorse a plan to dramatically increase tolls, but they also propose rolling back property tax relief.

“It should come as no surprise that wealthy, Trenton-insiders like the Chamber board would support a plan offered by the Governor. But Republicans in the Legislature are concerned not about what the Trenton-insiders think of this plan. We are concerned about how this plan will impact the middle and working class families of this state who are struggling to make ends meet.

“In short, this plan increases debt, increases tolls, increases the cost of doing business in New Jersey, drives up consumer costs, and pushes more traffic onto our local roads. And clearly that wasn’t bad enough for the Chamber board which also wants to hike the property tax burden.

“Jon Corzine can get as many Trenton-insiders on board with his plan as he wants. Ultimately he will have to answer to the taxpayers of this state who have had enough.”

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January 29, 2008

DOHERTY-MERKT-CASAGRANDE SCHEDULE FIRST TASK FORCE HEARING ON CORZINE TOLL PLAN
COMMITTEE WILL HOLD FIRST PUBLIC MEETING ON TOLL HIKES IN WARREN COUNTY ON FEBRUARY 11

Assemblymen Michael Doherty and Richard Merkt and Assemblywoman Caroline Casagrande today announced that the first meeting of a Republican task force seeking public input on Governor Corzine’s massive toll hike proposal will take place on February 11th at Warren Hills High School.

“I am very excited to get this process underway so that we can give the people of New Jersey a real opportunity to be heard on the Governor’s plans,” said Doherty, R-Warren and Hunterdon. “These town meetings will not only give us an opportunity to gauge public opinion on the plan, but to solicit ideas from the taxpayers as to how we should deal with our state’s fiscal problems.”

The first meeting will be on February 11th from 7 to 9 p.m. at Warren Hills High School in Washington, Warren County. Doherty said he expects the additional meetings will be scheduled in the coming days and that he intends for the task force to meet in several counties throughout the state during the next month.

Doherty, Merkt and Casagrande said they will seek to make these forums as open as possible so that individuals who don’t feel the Governor is listening to their concerns can make their voices heard on this issue.

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January 28, 2008

PANEL APPROVES RUDDER BILL EXEMPTING RENEWABLE ENERGY SYSTEMS FROM TAX AND FEE ASSESSMENTS
BILL ENCOURAGING PROPERTY OWNERS TO USE RENEWABLE ENERGY ADVANCED BY ENVIRONMENT COMMITTEE

Legislation sponsored by Assemblyman Scott Rudder, that exempts renewable energy systems from property taxation and from fees for municipal construction permits was approved by the Assembly Environment and Solid Waste Committee on Monday.

“At a time when we are encouraging citizens to conserve energy and to preserve our environment it doesn’t make sense to financially punish them for attempting to achieve those goals,” said Rudder, R-Burlington. “This bill will ensure that any homeowner or business that chooses to add renewable energy systems to their property will not end up being penalized by having to pay more taxes as a result of those improvements.”

Rudder’s bill, A-1781, establishes a property tax exemption for a “renewable energy systems” that are part of, or added to, a residential, commercial, industrial, or mixed use building producing renewable energy onsite to provide all or a portion of the electrical, heating, cooling, or general energy needs of that building. This would include systems utilizing solar or wind energy.

The bill also would exempt from the municipal construction permit fees, any of the renewable energy systems eligible for the property tax exemption provided for in this bill. Rudder had implemented a similar program during his time as mayor in Medford.

“We led the way in implementing this program in Medford and I look forward to expanding it statewide,” Rudder said. “This is a program that is environmentally friendly and at the same time protects our already overburdened property taxpayers.”

The Assembly Environment and Solid Waste Committee approved the legislation which now heads to the full Assembly for consideration.

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January 28, 2008

DeCROCE WARNS DEP COMMISSIONER NOT TO SHIFT FROM PAY-AS-YOU-GO TO BORROWING FOR PARKLAND
PROPOSAL TO USE CBT TAX REVENUE FOR BONDS ON TOP OF CORZINE’S $38 BILLION BORROWING SCHEME OUTRAGEOUS

Assembly Republican Leader Alex DeCroce sharply criticized a proposal floated by state Environmental Protection Commissioner Lisa Jackson at a Senate committee hearing today to use constitutionally dedicated corporate business tax (CBT) revenue now used for parkland development on a pay-as-you-go basis to back bonds instead.

“If this was a trial balloon by the commissioner, the administration should stick a pin in it immediately,” said DeCroce, R-Morris and Passaic. “Is there no end to the credit card mentality of the Corzine administration?

“How can they have the audacity to suggest even more bonding and more state debt at the same time the governor is pushing his 800 percent toll hike and nearly $40 billion bonding scheme? To talk about even more new debt now is madness.”

Jackson told the Senate Environment Committee that her department is considering using the 15 percent of the corporate business tax revenue constitutionally dedicated for parkland development – which totals $21.9 million this year – and use it to back bonds for parkland development. At present, the funds are used for parkland development on a pay-as-you-go basis. Jackson suggested some or all of it be bonded in the future.

“The taxpayers are sick and tired of getting stuck with the bill for a growing mountain of debt compiled by this and previous Democratic administrations,” DeCroce said. “I strongly suggest that the commissioner drop this idea immediately. If she won’t, then Corzine should simply tell her ‘no.’”

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January 28, 2008

DeCROCE APPOINTS MALONE TO BIPARTISAN LEGISLATIVE GROUP LOOKING AT BUDGET CUTS

Assembly Republican Leader Alex DeCroce today announced that he has appointed Assembly Republican Budget Officer Joseph Malone to the Treasurer’s bipartisan legislative group that will look into possible spending reductions in this year’s budget.

“The key to getting New Jersey’s budget problems under control is to cut waste and eliminate unnecessary spending,” said DeCroce, R-Morris and Passaic. “Over the past two years we have provided billions of dollars in suggested budget cuts and we look forward to providing the Governor with more suggestions to cut spending.”

Governor Corzine directed his Treasurer and cabinet to convene a bipartisan panel of legislators from the Senate and General Assembly to serve as a working group for identifying potential budget cuts prior to the Governor’s introduction of the Fiscal Year 2009 budget.

Republican Leader DeCroce was asked by State Treasurer David Rousseau in a January 18 letter to make an appointment to that working group and he selected Malone who has been a leading advocate for cutting wasteful spending during the past six budget years. During that time Republicans have proposed more than $4 billion in possible spending cuts.

“New Jersey must get its fiscal house in order and we must start by getting state spending under control,” Malone said. “I look forward to working with my colleagues on both sides of the aisle toward identifying budget cuts that will put an end to the runaway spending of recent years.”

The group is tentatively scheduled to have its first meeting this week.

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January 28, 2008

IN CASE YOU MISSED IT...

Monetization: Put the horse before the cart
Editorial, Asbury Park Press, January 27, 2008

With each passing day and each release of new information, Gov. Corzine's plan to hike tolls on New Jersey's toll roads to help pay down state debt makes increasingly less sense. At the same time, his refusal to release details about the plan for months before finally unveiling it three weeks ago becomes easier to understand: The more people know about it, the less they like it.

That also helps explain why Corzine is pushing the Legislature to sign off on the plan by mid-March — before the other elements of his so-called financial restructuring are acted upon. He says the toll hike plan must be approved by then in order to gain immediate benefit from it — removing $600 million to $900 million in debt from the books in fiscal 2008-09 — about 1.5 percent to 2.6 percent of the state budget.

That's not a paltry sum. But it isn't sufficient to warrant approving a plan that will cede control over the state's toll roads to an independent entity for 75 years without intensely scrutinizing it — and without first implementing the other three parts of Corzine's restructuring. The Legislature should refuse to consider the toll hike plan further until the other elements — freezing state spending, requiring voter approval of any new debt issued without a dedicated revenue source and disallowing spending in future budgets that exceeds recurring revenue growth — are fully debated, probed for loopholes and, if deemed worthy, passed into law.

At the same time, a bipartisan committee should be established to consider alternatives to Corzine's monetization of the state's toll roads. Corzine insists no one has come up with a better idea yet. We've offered plenty. And we've heard plenty of sensible ideas from others. Corzine doesn't seem to be listening. Based on the stories Press and Gannett State Bureau reporters have been generating over the past few weeks, it would be hard not to be able to improve upon the scheme Corzine has concocted.

To help market his plan, Corzine has enlisted the aid of a 17-member steering committee consisting of prominent business, political and labor leaders. It's hard to believe anyone with any familiarity with the plan, and with the still-unanswered questions about it, would endorse it.

How could anyone on the committee not be concerned about putting the burden for reducing state debt on the shoulders of a small minority of commuters who use the state's toll roads? How could they not be disturbed that tolls would increase at least fivefold in 10 years and eightfold in 14 years? How could they not be concerned the proposed increase in tolls is so draconian that projected usage of the New Jersey Turnpike and Garden State Parkway by commuters would decrease 30 percent once the full brunt of the increases was felt? How could they not be concerned that the huge toll hikes would decrease truck traffic on the toll roads by 40 percent? How could they not be wary of the devastating impact that would have on commerce, consumer prices and the stress it would put on the state's secondary roads?

How can they not have concerns about the creation of a new bureaucracy, particularly when Corzine has promised the new "public benefits corporation" would not threaten the jobs of current Turnpike Authority employees? How can they not be concerned about turning control of the state's toll roads over to an independent body, given the state's experiences with myriad, patronage-laden independent authorities?

How can they accept Corzine's assertion that all the debts incurred by the new corporation no longer would be the state's concern? How can they not be concerned about what would happen if projected revenue was underestimated 10 years, 30 years or 60 years down the road? How can they not be mindful that the modes of transportation 25 years, 50 years or 75 years from now may bear no resemblance to those of today?

There is only one way committee members can regain any credibility: making implementation of Corzine's cost-control measures a precondition to continued support of the overall restructuring plan. Better still, they should loan their best financial talent to the state to develop an alternative to monetization — one that would focus exclusively on ways to reduce taxes and cut spending at all levels of government.

Corzine's attempt to ram through monetization, as he did with the new school funding formula and hopes to do with $2.5 billion in bonding for school construction in the state's poorest school districts, must be stopped. It's clear his chief motivation for reducing debt is to free up room for new debt to be used to fund his endless list of costly initiatives — not to reduce the state's oppressive taxes.

The Legislature must say no to any new spending until an objective, comprehensive review of all the alternatives has been done and the cost-control measures in Corzine's restructuring are in place. Citizens must mobilize to ensure their elected representatives rein him in.

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January 25, 2008

IN CASE YOU MISSED IT...

Throw away the shovel
Editorial, Asbury Park Press, January 25, 2008

Didn't Gov. Corzine pay attention to his own State of the State address?

In it, he bemoaned the "financial culture that allowed the proliferation of spending, borrowing and mismanagement." He said the state needed "a "timeout' on new spending to even out available revenue with current spending." And he said all future debt without a dedicated revenue source should be approved by the voters.

Corzine lost no time reneging on that idea. Days after his speech, he began barnstorming the state, peddling his borrowing-against-75-years-of-roadway-tolls scheme with no intention of seeking voter approval for $40 billion in bonding. This week, he announced plans to borrow $2.5 billion more to cover two years of school construction projects in the state's poorest school districts. He wants the legislation to be introduced next month so he can get it signed before the July 1 budget deadline. The Legislature should insist any such plan be blessed by the state's voters.

Corzine's plan was revealed Wednesday as the state Supreme Court heard arguments from lawyers representing the state's Abbott districts. They are seeking a court-ordered deadline for the governor to allocate $2.5 billion to restart projects delayed after the disastrous Schools Construction Co. frittered away $8.6 billion. Abbott lawyers say they need another $10 billion on top of that.

The governor's staff says the $2.5 billion will be repaid through existing taxes — probably the income tax. That would give Corzine the excuse he needs to keep the question off a referendum ballot. Problem is, the income tax is dedicated to property tax relief. Once again, politicians' promises of raising money for a specific purpose — as Corzine has promised with his monetization plan — ring hollow.

Senate Majority Leader Stephen Sweeney, D-Gloucester, said the plan "sends a mixed message to the public. It just sends the wrong message right now." It sure does. In his State of the State speech, Corzine also said, "We are in a hole, and if we want to get out, we have to stop digging." The Legislature should tell him he can't pick up the shovel again without voter approval.

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January 25, 2008

IN CASE YOU MISSED IT...

Codey in Morris: Toll plan in trouble
Democratic leader tells Chamber Legislature likely to reject proposal

BY MATT MANOCHIO
Friday, January 25, 2008

PARSIPPANY -- State Senate President Richard Codey on Thursday told a gathering at the annual Morris County Chamber of Commerce luncheon that Gov. Jon S. Corzine's toll-hike plan to pay down the state's debt likely will be rejected by the Legislature.

"I do not expect the governor's plan to pass in its present form," said Codey. Codey was one of the keynote speakers at the event in the Parsippany Hilton.

Codey's comments came during a question-and-answer session following a speech to chamber members about why the state is and will remain an attractive place for businesses to be based.

Corzine recently proposed significantly increasing tolls on the New Jersey Turnpike, Garden State Parkway and Atlantic City Expressway and making a stretch of Route 440 into a toll road. The tolls would increase 50 percent in 2010 and by that same amount every four years until 2022.

"He's trying to do the right thing going to town meetings," Codey said of Corzine's 21 meetings in every county to pitch his plan -- he recently did so at the County College of Morris in Randolph, where more than 1,000 gathered.

Codey suggested that the plan include some type of monthly discount program for regular users of those roads.

"It needs to be attacked, there's no question about it," Codey said of the state's massive debt.

Thursday's annual lunch featured close to 500 business, education and government leaders from throughout Morris County. Many of them networked and bantered before the luncheon.

Codey, a Democrat from Essex County, was warmly received by the mostly Republican audience, even joking at times that he knew he was in a GOP hotbed that the Democrats hadn't carried since Watergate.

He said that if New Jersey were a country, it would be considered the 17th largest economy in the world.

"We are also situated among the wealthiest markets in the country, in the world," he said.

He said New Jersey also is the fifth largest market for biotech engineers in the county, and that 400 scientists call the state home.

Codey also said that New Jersey's ports draw a high number of employees, and is one of the largest port complexes on the eastern seaboard.

"New Jersey's economy doesn't exist in diners and toll plazas," he joked.

Codey admitted that property taxes are too high, and that residents should impress upon their local governments and school boards to lower them.

Elizabeth Christopherson, the CEO of NJN-New Jersey Public Television & Radio, also addressed the audience, and George Sous became the new chairman of the Chamber of Commerce's board of directors.

Joseph P. Nazzaro, who recently retired from the County College of Morris, where he wore a number of hats regarding marketing, strategic planning, communications and college relations, among others, was the recipient of the William P. Huber award for his outstanding volunteer leadership. Prior to the luncheon, Nazzaro said he's been a 37-year member of the chamber.

"The chamber was an important vehicle for me to accomplish my job at the college," he said.

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January 25, 2008

IN CASE YOU MISSED IT...

A $2.5 billion complication
Editorial, The Star-Ledger, January 25, 2008

Confusing. Confounding. Contradictory. Those are the political three C's of Gov. Jon Corzine, who, in the midst of preaching "No more borrowing," promised the Supreme Court the state will borrow $2.5 billion to restart a court-ordered school construction program.

Don't get us wrong. Rebuilding crumbling, unsafe schools is important as well as required by the court. What is needed, however, is a sound plan for getting the job done and providing long-term, adequate funding for the bonds required to build.

There is something curiously contradictory about Corzine plopping $2.5 billion on the table at the last minute -- in a letter forwarded the evening before the court hearing -- so that the news broke the same day that the Legislature started its hearings on Corzine's "Read my lips: No more borrowing" fiscal reconstruction plan.

The $2.5 billion is what a study commission said would be needed for the 31 districts covered by the court order but leaves out nearly $1 billion suggested for the state's other districts. Would it have been better to tell the court the administration is working on a financial new day for New Jersey and to have asked for more time to work out funding sources for re paying the school bonds? If the court refused and ordered Corzine to ante up, the result would be similar, the political fallout quite different.

Republican leaders quickly declared the governor had reneged on his promise to hold the line on debt and was talking out of both sides of his mouth. Many Democratic districts will benefit from the school construction. Even so, the administration dropped a $2.5 billion brick on the support he will need to get both the school construction and fiscal reordering plans through.

Corzine wants to sell future toll road revenues to secure a big chunk of cash for paying down existing state debt. Reducing that drain on revenues is as critically important as Corzine says it is. To many taxpayers, however, that goal may seem abstract compared with the day-to-day personal pain of substantially higher tolls. The governor's plan will not be an easy political sell. A $2.5 billion surprise does not help.

There must be flexibility built into any belt-tightening. From the beginning, Corzine should have outlined a mechanism for deciding limited exceptions to his no-borrowing, budget-freezing promises. He needs to do it soon so there is no confusion to make lawmakers think the money from the toll road monetization will be an excuse to ignore the budget's structural deficit.

The timing of the administration's $2.5 billion pledge was confounding, as inexplicable as Corzine's decision to go off as planned to the annual meeting of the World Economic Forum this week in Davos, Switzerland.

He may prefer the intellectual ambiance of Davos, but the down-and-dirty of Trenton and New Jersey's economic needs require him and his attention right now.

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January 24, 2008

DOHERTY INTRODUCES BILL REQUIRING VOTER APPROVAL FOR LOCAL GOVERNMENT BORROWING
COUNTY AND MUNICIPAL GOVERNMENTS WOULD NEED TO PRESENT BOND ISSUES TO VOTERS

Assemblyman Michael Doherty today introduced bipartisan legislation that will require county and municipal governments to seek voter approval before issuing general obligation debt that will have to be repaid by local property taxpayers.

“The debt that is incurred by county and municipal governments must be repaid by the local property taxpayers in those jurisdictions,” said Doherty, R-Warren and Hunterdon. “Just as state taxpayers have a constitutional right to vote on any debt issued by the state, so too should local taxpayers who will bear the burden of repaying local debt issued by these governing bodies.”

The bill, A-1880, would amend the “Local Bond Law,” to require that prior to the issuance of general obligation bonds by a county or municipality, the bond ordinance authorizing the obligation must be submitted to the voters of the county or municipality, at the next general election. The bill is cosponsored by Assemblyman Upendra Chivukula, D-Somerset and Middlesex.

Doherty said that while state debt constitutionally must be approved by the voters, there is no such mechanism for local debt – an inconsistency in the law that he seeks to eliminate.

“New Jersey taxpayers are burdened by the highest property taxes in the nation, and this is at least one way that they can regain control over those tax rates,” Doherty said. “By requiring voter approval for these bonds, not only will we give taxpayers a chance to rein-in unnecessary borrowing, but we will make local officials think twice about spending priorities when incurring debt.”

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January 24, 2008

McHOSE: SO MUCH FOR GOVERNOR CORZINE WANTING TO END THE CREDIT CARD CULTURE
SELF-PROCLAIMED DEBT SLASHING GOV PROPOSES $2.5 BILLION IN BORROWING FOR URBAN SCHOOLS

In the wake of news reports that the Corzine administration is seeking to borrow $2.5 billion for school construction in Abbott districts, Assemblywoman Alison Littell McHose, a member of the Assembly Budget Committee, today said that New Jersey taxpayers may get whiplash from trying to follow the governor’s position on state debt.

“In unveiling his plan to dramatically increase tolls the governor claimed he was taking that action in an effort to address state debt and to finally put an end to excessive borrowing,” said McHose, R-Sussex, Morris and Hunterdon. “Today we learn the governor plans to continue business as usual with more borrowing to support a program that resulted in hundreds of millions of dollars in waste and abuse last time around.”

Governor Corzine plans to push for borrowing at least $2.5 billion to fund school construction projects in the state’s Abbott school districts. The plan was revealed in a letter released Wednesday as the New Jersey Supreme Court heard arguments from lawyers representing children in those Abbott districts.

In his State of the State speech on January 8 Governor Corzine proposed a constitutional amendment requiring voter approval for all debt, and attempted to justify his massive toll hike proposal as a way to pay down existing state debt.

The Governor stated that, “It is up to those of us in this room to change the ‘credit card’ culture of New Jersey’s finances,” and that, “The public must be put back in charge of the State’s credit card. Borrowing must be done sparingly.”

“As has become so typical of state government in recent years, we hear one thing from the Governor and then we see that actions don’t meet those words,” McHose said. “We need to stop the borrowing, stop the spending and get our fiscal house in order.”    McHose noted that the public can’t even be sure that the money spent on the school construction program will actually result in new schools. Following an investigation of the SCC, Inspector General Mary Jane Cooper issued a report in April 2005 detailing “mismanagement, fiscal malfeasance, conflicts of interest and waste, fraud and abuse of taxpayer dollars” in the state’s $8.6 billon school building project.

“No new taxpayer dollars should be spent on this program until we are certain that the program will be managed in a fiscally responsible and corruption free manner,” McHose said. “So far, we can’t be certain that is the case.”

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January 24, 2008

DeCROCE: ‘TOLL RAGE TALES’ NOW POSTED ON ASSEMBLY REPUBLICAN WEBSITE
MORE THAN A HUNDRED E-MAILS FROM TAXPAYERS SO FAR ARE DEMANDING SPENDING CUTS

More than a hundred e-mails from taxpayers furious about Governor Jon Corzine’s massive toll hike and borrowing scheme have been posted on the official Assembly Republican website, and nearly every one of them calls for spending cuts to deal with the state’s fiscal problems.

Assembly Republican Leader Alex DeCroce said a steady stream of new e-mails are being received by the Assembly Republican Office and Assembly Republican district offices every day and will be added to the growing list of “Toll Rage Tales” daily. They can be viewed at NJAssemblyRepublicans.com. Just click on the “Toll Rage” icon appearing on the homepage. Readers also have the ability to add their own comments about the Corzine plan to raise tolls 800 percent and borrow nearly $40 billion.

“The message is loud and clear,” said DeCroce, R-Morris and Passaic. “People believe Corzine’s plan will sound the death knell for the middle class in New Jersey. They are ready to flee rather than be buried by a mountain of taxes, tolls and debt they can’t afford.

“Taxpayers can see what the governor either fails or refuses to see. The answer to New Jersey’s problems is not more spending, more tolls, more taxes or more debt. It’s eliminating waste and cutting costs. State government is already addicted to spending and addicted to borrowing. We can’t allow it to become addicted to toll increases as well.”

DeCroce said the best approach to dealing with the state’s budget problem is to cut spending and impose constitutional safeguards to prevent overspending in the future or any new debt without voter approval.

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January 23, 2008

THOMPSON-HANDLIN PRAISE ELEC DECISION BLOCKING BRYANT’S USE OF CAMPAIGN FUNDS FOR LEGAL DEFENSE EXPENSES
CALL FOR APPROVAL OF THEIR LEGISLATION SO ELEC’S RULING WILL BE STATUTORY IF CHALLENGED IN THE FUTURE

Assemblyman Sam Thompson and Assemblywoman Amy Handlin praised a ruling today by the Election Law Enforcement Commission (ELEC) that former state Senator Wayne Bryant cannot use his campaign funds for his legal defense, and said the Legislature should act on legislation they first introduced last session that would prohibit elected officials from using campaign funds for this purpose.

“The officials at ELEC made the right decision today, but with that decision facing a possible legal challenge we should enact this statutory change as soon as possible,” said Thompson, R-Middlesex and Monmouth. “When a public official engages in allegedly illegal activity at the expense of his constituents, he or she should not be able to dip into their campaign funds to help support their legal defense.”

The bill, A-965, prohibits candidates and elected public officials charged with crimes from using campaign contributions for their legal defense. Thompson and Handlin introduced the legislation last session (A-4246) and pre-filed it for introduction this session.

According to the Associated Press, ELEC denied by a 3-0 vote Bryant’s request that he be permitted to use his $642,500 in remaining campaign cash to pay legal bills stemming from his indictment on federal corruption charges. Bryant’s request to ELEC was the first time anyone sought approval to use campaign money to defend against criminal charges.

“It would be ironic, and inappropriate, if he had  been allowed to use these funds to help support his defense against charges that he has violated the public trust by seeking to use his elected position to enrich himself at taxpayer expense,” said Handlin, R-Monmouth and Middlesex. “The campaign contributions that a person raises for election to public office were never intended for use by an elected public official, for his or her legal defense against criminal charges stemming from alleged abuses of the public trust.”

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January 23, 2008

RUMANA SELECTED TO SERVE ON ASSEMBLY TRANSPORTATION AND EDUCATION COMMITTEES
GOVERNOR’S TOLL HIKE PLAN AND NEW SCHOOL FUNDING ISSUES WILL BE TOP PRIORITIES

Assemblyman Scott Rumana today said he is anxious to get to work as a member of both the Assembly Transportation, Public Works & Independent Authorities Committee and the Assembly Education Committee.

“I want to thank Republican Leader DeCroce for asking me to serve on these very important committees,” said Rumana, R-Passaic, Bergen and Essex. “With the Governor’s pending toll hike proposal I expect to be very busy on the transportation committee representing the interests of  the commuters who use the Turnpike and Parkway as well as all New Jersey residents who will be impacted by this proposal.  There is much work to be done to improve our area’s roadways and to encourage improvement to our mass transit system.”

DeCroce announced that Rumana, a freshman legislator representing the 40th Legislative District, will be joining Assemblymen Brian Rumpf, Scott Rudder and John Amodeo on the Transportation, Public Works & Independent Authorities Committee. He will serve on the Education Committee with Assemblymen David Wolfe and Joseph Malone and Assemblywoman Amy Handlin.

“In addition to the important work facing the transportation committee, there are a number of major education issues to deal with including determining the future of the school construction program and overseeing the new school aid formula,” Rumana said. “I am certain that there will be unexpected issues as the new school aid formula is implemented and our committee will need to be prepared to deal with those issues quickly.”

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January 22, 2008

MERKT ON CORZINE EUROPEAN TRIP: STOP SIPPING SWISS LATTES AND PROVIDE DETAILS OF MASSIVE DRIVING TAX PLAN

As legislators and the public anxiously await details of Governor Jon Corzine’s driving tax that will result in an 800 percent increase in toll hikes, the governor left today for Switzerland to participate in the World Economic Forum, prompting Assemblyman Richard Merkt to question the wisdom and timing of such a trip.

“The governor of New Jersey is jetting off to Davos, Switzerland for the week where he will be incommunicado while legislators and the fine people of this state are left behind twisting in the wind desperately seeking details of his latest fiscal scheme,” said an incredulous Merkt, R-Morris. “He's governor of New Jersey, for Pete's sake, not head of the World Bank. He should be here, answering an anxious public's questions about the largest state borrowing scheme in American history, rather than sipping lattes at a Swiss resort.”

The Associated Press reported that Corzine is leaving for Switzerland today to attend the World Economic Forum where he will participate in sessions on urban mobility and global warming. He is also expected to spend personal vacation time with his girlfriend.

“New Jersey is in the throes of an economic disaster and Mr. Corzine is off on European ‘holiday’ where he’ll also be engaged in global warming discussions while leaving the people who elected him out in the cold,” stated Merkt.

As for Corzine’s participation in the world forum, which will also focus on global economic concerns, science and technology, and terrorism, Merkt noted the irony of having Corzine as a participant noting that “New Jersey is not exactly an economic powerhouse,” as its economy is one of the worst in the U.S.

Corzine rolled out his ‘monetization’ plan earlier this month in which he wants to borrow $40 billion up front which will, in theory, be repaid through increased tolls on state highways for the next 75 years. He also has called for adding tolls on Route 440 in Middlesex County. The Corzine scheme includes the creation of a nonprofit “pubic benefit corporation” (PBC) whose board of directors would be appointed by Corzine and who would have the power to raise tolls. The independent PBC would manage the tolls roads and its revenues without being accountable to elected officials.

Merkt pointed out that the governor is pressuring the Legislature to pass the driving tax plan sometime in March even though he has yet to release full details of the proposal and is now on his way to Switzerland.

“This is classic Corzine. Keep the lid on details of a plan until the very last minute, then release bits and pieces and ram it through the Legislature. That’s what he did with his new school funding formula which OLS (nonpartisan Office of Legislative Services) said is flawed,” said Merkt. “It’s time the Democrats stop rubber stamping the governor’s irresponsible gimmicks. And it’s time for this governor to come clean with our residents.

“Unfortunately, it doesn’t look like that’s going to happen,” he continued. “Instead, the Corzine Administration is fast-tracking a bill to mortgage key state assets for the next three quarters of a century so Prince Jon can go on a multi-billion dollar shopping spree. And now’s he’s conveniently ‘unavailable’ as we draw nearer to his self-imposed deadline.”

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January 22, 2008

DOHERTY-MERKT-CASAGRANDE TO HEAD REPUBLICAN TASK FORCE SEEKING PUBLIC INPUT ON CORZINE TOLL PLAN
COMMITTEE WILL HOLD PUBLIC MEETINGS ON TOLL HIKES TO SOLICIT INPUT FROM NEW JERSEY TAXPAYERS

Assemblymen Michael Doherty and Richard Merkt and Assemblywoman Caroline Casagrande will head a Republican task force that will hold a series of town meetings throughout New Jersey to seek public input on Governor Corzine’s massive toll hike proposal.

“The Governor is doing his best to rush this proposal through the Legislature in the next two months and we want to make sure the public has an opportunity to provide its input on this matter,” said Doherty, R-Warren and Hunterdon. “I am not at all confident that the town meetings being conducted by the Governor are an accurate representation of the public’s concerns on these matters.”

Doherty, Merkt and Casagrande said they will seek to make these forums as open as possible so that individuals who don’t feel the Governor is listening to their concerns can make their voices heard on this issue.

The meetings will take place in several locations around the state between now and March and will be open to all members of the public. No advance registration will be required and the goal will be to gauge public sentiment on the Corzine proposal and gather ideas for better ways to address the state’s poor fiscal condition.

“Based on the contact I’ve had with constituents, I can guarantee that there is a lot more anger about this issue than has been on display at the Governor’s town meetings,” Merkt said. “We want to make sure that all taxpayers have an opportunity to express their views in an open, public forum.”

“An important component of leadership is listening to the ideas and suggestions offered by the public and being open to those alternatives,” Casagrande said. “I believe that the taxpayers of New Jersey have valuable input and that elected officials should listen to that input instead of taking an ‘I know best,’ approach. I intend to listen to what the taxpayers have to say at these meetings and to be open to those suggestions.”

Doherty said he expects a schedule of meetings will be released within the next week.

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January 18, 2008

IN CASE YOU MISSED IT...

Toll plan is not a rebate saver
Editorial, Gloucester County Times, January 18, 2008

The contest is getting nasty. Choose wrong, voters are being told, and consequences will be dire. And, it really is about the economy.

The presidential contenders in Nevada and South Carolina? No. We're referring to how Gov. Jon Corzine is selling his plan to wring billions of dollars from state toll roads by raising the tolls sharply.

The governor upped the ante Wednesday by linking the toll plan to the state's property tax rebates: Don't pass the toll plan, and those annual $800-plus property tax relief checks are in jeopardy.

That's not precisely what Corzine said, but it's what a roomful of mayors, the media and New Jersey citizens all heard. And, any connect-the-dots connection that was made between toll plan approval and the future of those hefty October rebate checks was not actively discouraged.

Lumping all of the state's unfunded liabilities together, what the governor said was, "If we don't solve these problems, property tax relief will not be able to be accomplished."

For accuracy's sake, the governor was referring not just to the $32 billion in bonded debt, but overall possible liabilities that include up to $25 billion for public-employee pensions, and up to $58 billion for retirees' health benefit costs.

Also for accuracy's sake, the governor's toll increase plan and the new public corporation to run the roads would take care of just half of the $32 billion and not any of the other shortfalls.

And, finally, for accuracy's sake, neither lawmakers nor the governor have found a way to ensure full funding for those increased tax rebates. They were in trouble before Corzine released his toll road plan, and they still are. Not one cent of the roughly $38 billion the toll plan would provide is dedicated to property tax relief. What doesn't go toward the debt is supposed to be for transportation needs.

Sure, Corzine is correct, in that all parts of a state budget are linked; cut debt payments and you'll have a little more money for other things. But rebate checks (which apparently will have to substitute for permanent tax reform in this state) don't have an exclusive hold on any savings. There's school construction backlogs, the bumped up school aid package Corzine just signed, and dozens of other items.

The jury's still out on the toll plan, and the governor's painstaking efforts to explain it in every corner of the state are appreciated. What may not be appreciated is any chicanery about this plan being critical to the survival of the sainted rebates. It isn't. Let's be clear: Trenton isn't off the hook for funding the rebates, even if lawmakers OK the big toll boosts.

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January 18, 2008

IN CASE YOU MISSED IT...

Subpar grade for governor
Editorial, Asbury Park Press, January 18, 2008

A Monmouth University/Gannett New Jersey poll this week showed that 44 percent of the people surveyed disapprove of the job Gov. Corzine is doing, his highest negative rating since taking office two years ago. His formerly rising approval rating — it peaked at 51 percent after his April 2007 accident — took a downward turn and slipped to 40 percent.

Overall, residents polled gave Corzine a C-minus grade. They must have been in a charitable mood.

The sinking poll numbers shouldn't be at all surprising, given Corzine's newly released monetization plan, his flawed school funding formula, the flurry of other bills pushed through the lame-duck legislative session with lightning speed and little deliberation, his outrageous pay hikes for judges and prosecutors, his insistence that spending cuts alone are not enough to balance the state budget and the contempt he showed for voters when he pledged to fund stem-cell research despite voter rejection of it in the November referendum.

Sadly, only 49 percent of the poll respondents even knew about the school funding plan. There's enough blame for that to go around — to the electorate for letting their collective guard down, to Corzine and the Legislature for ramming it through during the holiday season. The formula was released in December after most Christmas trees were decorated and holiday celebrations were in full swing. It was signed into law Sunday, soon after people were starting to pay attention again.

"Who had a chance to study it in the three weeks before it was put through and voted on and signed by the governor?" asked a Beachwood resident, who said Corzine is governing like the millionaire he is — with little regard for the public. "I think he's doing a terrible job. Everything's wrong."

Even those who generally approve of the job Corzine is doing weren't exactly gushing with praise. "I think he has a very difficult job. He's trying to do the best that he can," said a Highlands resident.

The polling director said Corzine "hasn't laid the groundwork to show that he has the taxpayers' best interests in mind." Corzine has demonstrated a glaring lack of understanding of the problems confronting residents of this state — particularly those who are neither wealthy nor poor. The polls are beginning to reflect that.

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January 18, 2008

DeCROCE SAYS REPORT CONFIRMS GUARANTEED TOLL INCREASES WILL CHASE TRAFFIC OFF TOLL ROADS

Assembly Republican Leader Alex DeCroce said a consultant’s report released today that predicts about 20 percent of the drivers who use New Jersey's toll roads will abandon them if Governor Corzine’s 800 percent toll hike scheme is approved debunks administration claims to the contrary.
            The consulting report projected 20 percent to 30 percent of those who would use the New Jersey Turnpike and Atlantic City Expressway and 10 to 20 percent of those who would use the Garden State Parkway would find other routes.
            “What are they thinking?” said DeCroce, R-Morris and Passaic. “As tolls go up, use of the toll roads will go down. Period. End of story.
            “The Corzine administration is deluding itself if it believes most or all will return to the toll roads after the initial rate shock has abated,” DeCroce said. “Unlike past toll increases, Corzine's plan guarantees one huge toll hike after another. When truckers and commuters know tolls will increase each year, they will lose all incentive to return. They know it's only going to get worse for them as the years pass.”
            DeCroce said the consultant’s report is concrete proof that Corzine’s massive toll hike and borrowing scheme will backfire and inflict more harm on the state and its economy.
            “This is a disaster waiting to happen for the middle class. Corzine’s scheme will only make New Jersey a less affordable place to live.”

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January 18, 2008

KEAN AND DeCROCE CALL FOR GOVERNOR TO RELEASE LEGAL OPINION ON TAX IMPLICATIONS OF TOLL PLAN
REQUEST ALL LEGAL OPINIONS GOVERNOR HAS RECEIVED REGARDING TAX-EXEMPT NATURE OF PBC BONDS

Senate Republican Leader Thomas H. Kean Jr. and Assembly Republican Leader Alex DeCroce today called on Governor Jon Corzine to immediately make public all legal opinions his administration has received regarding the tax-exempt status of bonds that would be issued by the Public Benefit Corporation (PBC) he intends to create as part of his toll hike proposal.

“If he is exercising the necessary caution in proceeding with this plan, Governor Corzine must have sought legal advice on the key question of whether bonds issued by this newly created PBC would be tax exempt,” said Kean, R-Union, Morris, Somerset and Essex. “The success or failure of this toll hike proposal could hinge on that question and the Legislature should be provided with that legal opinion now so that we can analyze the issues it raises.”

Under Governor Corzine’s proposal, a PBC would be set up to sell the bonds generating the $32 to $38 billion Corzine seeks to generate through this deal. Prior to this, Corzine will need a ruling from the IRS that these bonds are tax exempt. The PBC would repay those bonds using toll revenue derived from the massive toll hikes the Governor is proposing.

“If it is determined by the IRS that bonds issued by this PBC are not tax exempt, it could slash by two-thirds the amount of money the Governor has projected he will raise through this scheme,” said DeCroce, R-Morris and Passaic. “We cannot afford to wait until after this deal has been completed to find out the tax status of these bonds. The Governor needs to make public all legal opinions he has on this issue now so that the Legislature can study that opinion.”

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January 18, 2008

McHOSE: IT’S TIME FOR CORZINE, DEMS TO SERIOUSLY ADDRESS NJ ECONOMIC WOES
LATEST ECONOMIC OUTLOOK REPORT PAINTS ANOTHER DISMAL PICTURE

In response to yet another dismal report regarding the state’s economic outlook, Assemblywoman Alison Littell McHose said today it’s time the Corzine Administration and its Democrat allies stop playing games and get serious about cutting spending in an effort to stimulate New Jersey’s stagnant economy.

“New Jersey doesn’t need massive toll increases, it needs massive spending cuts,” said McHose, R-Sussex, Morris, Hunterdon, following release of a Rutgers University report that says the state is in an economic rut.

“With the nation teetering on a recession, this is just more devastating, yet not unexpected, news for our taxpayers,” continued McHose. “What will it take for this governor and this Democrat Legislature to wake up and smell the coffee? It’s obvious the state is lacking the strong leadership and resolve needed to get New Jersey back on track to solvency.”

According to the Rutgers Economic Advisory Service forecast that was released Thursday, it is expected that New Jersey’s economy likely will perform worse than the rest of the nation through at least 2017. Slow job growth with rising unemployment can be expected with “a quick turnaround unlikely,” stated an article in the Asbury Park Press.

The report blamed the bleak outlook on the state’s high cost of living and high cost of doing business in New Jersey along with its lower rate of population growth which is expected to average 0.6 percent. Job growth is expected to average just 0.8 percent through 2017 while unemployment will exceed the national rate.

McHose, a member of the Assembly Budget Committee, noted that for the past several years, Assembly Republicans have advocated for steep state spending cuts in an effort to resurrect the Garden State’s devastated economy. Corzine, as well as his Democrat predecessors and majority Democrats have ignored their proposals.

“In the early to mid 1990s, when Republicans held the majority, they cut taxes, reduced spending and shrunk the state budget,” stated McHose. “As a result, New Jersey experienced a decade of economic growth, which included budget surpluses, additional property tax relief and the creation of 435,000 private sector jobs.

“Conversely, Democrats have ruled the Statehouse for the past six years and what do we have to show for it? A doubling of the state debt, $11 billion more in state spending, nearly 100 new taxes and the highest property taxes in the nation. In other words, economic Armageddon. It’s been a fiscal nightmare for New Jersey’s poor, middle class and businesses and unless this Administration starts enacting fiscally responsible and sound policies, the state will soon be bankrupt.”

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