News: POLITICO New Jersey Playbook: Murphy's election year budget

Wednesday, February 24, 2021

POLITICO New Jersey Playbook: Murphy's election year budget

Feb 24, 2021

Presented by Anbaric Development Partners

A nearly $45 billion budget with no tax increases in an election year.

That's what Gov. Murphy proposed yesterday. And with no sign of the pandemic-related holes we were expecting earlier in the pandemic. You know, when the state borrowed $4.5 billion.

What's clear now is that the expected massive financial hit from the pandemic didn't materialize, giving Murphy a chance to introduce his first budget without a tax increase — one with $500 rebate checks to many voters — in the same year he faces reelection. An 11 percent budget increase over last year. Murphy can also boast of making the first full pension payment since the Whitman administration. And there's no indication that Murphy will pay back the loans early.

Republicans called the budget "smoke and mirrors" and predicted that if Murphy's reelected, you'll see tax hikes. But so far there's little indication there's an appetite in the Democratic-led Legislature for a big budget fight.

WHERE'S MURPHY: In Somerset for a 9 a.m. vaccine site visit. Then in Trenton for a coronavirus press conference at 3 p.m.

CORONAVIRUS TRACKER — 2,516 newly-reported positive PCR tests for a total of 687,386. 104 more deaths for a total of 20,689 (and 2,289 probable deaths). 2,047 hospitalized, 451 in intensive care. 543,358 fully vaccinated, about 6.1 percent of the population.

QUOTE OF THE DAY: "I write to respectfully inform you that I will not be participating in the Bergen County Democratic Convention on March 15th. I am running for State Senate in the June primary … I first announced my intention to run for State Senate in January. Immediately, it became clear that the decks had been stacked in favor of my opponent. Despite your promises that you would remain a neutral party, I have heard again and again that you are behind Gordon Johnson. To be frank, it has been blatantly obvious that you have been pulling the strings behind the scenes." — Assemblymember Valerie Vainieri Huttle in a letter to Bergen County Democratic Chair Paul Juliano that she sent to the media.

TWEET OF THE DAY: @ThatKevinSmith: "SPOILERS! NJ voted to legalize in November. I wrote 'Clerks III' two months later in January. So *of course* Jay and Silent Bob run their own weed store in the sequel. And yes: it's in the old RST Video store, which the boys rechristen as RST THCCBD!"

HAPPY BIRTHDAY: Assembly Minority Leader Jon Bramnick, Lobbyist/sandwich salesman Dale Florio, lobbyist Trish Zita, freelance TV journalist Laura Lindsey Jones

A message from Anbaric Development Partners:

New Jersey is leading the race to scale offshore wind, taking groundbreaking steps like announcing a first-in-the-nation transmission only solicitation. Now, NJ will need a partner that can deliver on this bold vision. With extensive experience building transmission systems, Anbaric is the company New Jersey can trust to achieve our clean energy goals. Visit nj.anbaric.com to learn more.

WHAT TRENTON MADE

R.I.P. — Superior Court Judge Peter Barnes III, former state lawmaker, dies at 64, by POLITICO's Matt Friedman: State Superior Court Judge Peter Barnes III, a former member of the General Assembly and state Senate who advocated for police reform, died Monday. He was 64. Middlesex County Democratic Chair Kevin McCabe confirmed Barnes' death. The cause of death was not immediately available. Barnes, an Edison native who represented the 18th Legislative District before his confirmation to the bench in Middlesex County, was a low-key but well-respected lawmaker. He began his political career on the Edison Township Council, and in 2007 took over the Assembly seat vacated by his father, Peter Barnes Jr., who was appointed to the state Parole Board. He was elected to the state Senate in 2013 and nominated to the bench in 2016.

ED DONE-ELLY — President of firefighters union abandons state Senate candidacy, by Matt" Ed Donnelly, the president of a major firefighters union who was running for state Senate while facing a harassment lawsuit from a former union employee, dropped his candidacy on Tuesday. "I hoped that by joining other union leaders currently serving in the state legislature, my experience as a firefighter and the NJ FMBA President would benefit both our membership and the citizens of Legislative District 21," Donnelly, who heads the New Jersey Firefighters Mutual Benevolent Association, said in a statement. "Winning against a seasoned elected official in a tough district would take all hands on deck rowing in the same direction. While there is a path to victory, some of the decision makers could not see beyond our union's past endorsements of Republicans, and see me as a lifelong Democrat." Donnelly was referring to his union's endorsement of Tom Kean Jr. — the district's outgoing Republican state senator — during Kean's unsuccessful 2020 congressional race against Democratic Rep. Tom Malinowski. POLITICO spoke with several Democratic leaders in the 21st Legislative District who said they were more concerned about the lawsuit, in which a former employee alleges Donnelly fired her for complaining that another union official harassed and intimidated her.

NJ TRANSIT — Murphy's budget cuts state aid, capital-to-operating transfer for NJ Transit, by POLITICO's Samantha Maldonado: Gov. Phil Murphy's $44.8 billion fiscal year 2022 budget proposal unveiled Tuesday cuts state aid to NJ Transit by about 74 percent compared with last fiscal year and calls for a $100 million reduction in capital-to-operating transfers. Murphy's budget appropriates $100 million to NJ Transit, down from $386 million in the previous nine-month fiscal year 2021 budget. Treasury Department officials said the approximately $2.8 billion the transit agency received in pandemic aid from the federal government allowed the administration to decrease the state subsidy again. Murphy is also promising a fourth consecutive year without a fare hike. The Clean Energy Fund contribution to NJ Transit will remain steady compared with last year, at about $82 million. In all, Murphy's budget projects NJ Transit's operating budget will total $2.65 billion, compared with last year's total of $2.64 billion. While Murphy's planned reduced capital-to-operating transfer is an improvement from previous years — the transfer amounted to $460.8 million last year — it will likely not appease advocates or board members who have long called for an end to those transfers.

—" Murphy budget would spend more on N.J. unemployment upgrades after 11 months of problems. Is it enough?" by NJ Advance Media's Sophie Nieto-Munoz: "$7.75 million would go toward modernizing the unemployment system run by the state Department of Labor, which has received more than 2 million initial filings and distributed billions of dollars in jobless benefits and pandemic-relief funds, said Labor spokeswoman Angela Delli-Santi. The current budget allocated $3.875 million … It's only a sliver of the $200 million the Labor Department has said it needs to modernize the unemployment system over a five-year period."

— New Jersey not booking any adult use cannabis revenue in FY 2022

—Highlights of Murphy's $44.8B proposed FY 2022 budget

— Murphy says $18B investment in school aid is largest ever

—Bramnick says Murphy will raise taxes again if he's reelected

THE MIDS-ATLANTIC REGION— " 'Game changer': What legalizing marijuana in NJ means to the region — and the country," by The Asbury Park Press' Mike Davis: "Legal weed advocates nationwide have kept a close eye on New Jersey, seen as a vital domino that could soon send the entire East Coast cascading toward marijuana legalization. And, eventually, the rest of the country. 'New Jersey could be the game changer for the Northeast and for the Mid-Atlantic. It is a huge state, there will be a large market there and it will undoubtedly put pressure on surrounding states to rethink their positions and create momentum for cannabis reform,' said Steve Hawkins, executive director of the Marijuana Policy Project, a national advocacy group for marijuana legalization. New Jersey is the first state in the mid-Atlantic region to legalize marijuana, and only the fourth state — after Massachusetts, Maine and Vermont — on the East Coast to legalize the drug. But the Garden State won't be alone for long."

A TIMELY LEGACY BILL — "Gerry Cardinale: Conservative curmudgeon was correct on cannabis," by The Star-Ledger's Paul Mulshine: "Gerry Cardinale did not make it to the final voting session on marijuana legalization Monday. He died on Saturday at the age of 86. But the conservative Republican senator from Bergen County was sorely missed, as was the sanity and levity he brought to such issues … [H]e crafted a bill that would have permitted people to grow enough pot for their personal use. That was a typical turnaround for Cardinale, who had been perhaps the loudest voice in the state Senate opposing legalization. 'I was one of the people who voted against making marijuana legal,' he told me. 'But the people want it and we need to respect the will of the people.'"

—New Jersey lawmaker: Time to study legal weed and traffic fatalities

THAT TIMING — On Sept. 18, Jersey City's municipal prosecutor, Jake Hudnut, announced that he's running for city council in Ward E on Mayor Fulop's slate. On Sept. 19, the state Senate amended a bill, S3242, that would bar a large swath of prosecutors and their assistants from running for office until three years after they leave the position to explicitly exempt municipal prosecutors. The original bill never mentioned municipal prosecutors, but it's clear someone was worried it could be interpreted to apply to them. I reached the bill's sponsor, state Sen. Dick Codey (D-Essex), who told me he inserted the amendment after being approached by people he declined to identify to advocate against applying it to local prosecutors. Codey said the point of the law is to prevent prosecutors from using their powers to investigate people to boost their own political careers, and since municipal prosecutors don't have much power , he agreed it shouldn't apply to them. "There's a fairness part of this. Local prosecutors in towns have no investigative power. I didn't really necessarily see the need or it," he said. Codey said he believes the timing is coincidental. "As far as I know, it had nothing to do with it," he said. State Sen. Nick Sacco (D-Hudson) is also sponsoring the bill. Fulop campaign spokesperson Phil Swibinski said in a statement that it's a "total coincidence." "Neither Mayor Fulop nor Jake Hudnut had any role in this amendment being added to the bill and they weren't even aware of it until they were contacted by a reporter. Clearly there are important differences between municipal prosecutors and the attorney general and we are glad to see that distinction is reflected in the bill," Swibinski said. The councilmember Hudnut is challenging, James Solomon, seems skeptical.

—"Officer was supposed to record search of cells, but AG says he covered up beatings at N.J. women's prison"

— Grewal directs prosecutors to drop marijuana cases, police to halt arrests

—"N.J.'s nonprofit hospitals will avoid property taxes but must make 'community service' payments under new law"

—"Alleging physical abuse, former inmate at Edna Mahan facility files civil rights lawsuit against guards, Hicks"

—"Kaschak elected New Jersey State Auditor"

—Moran: " After Texas power debacle, count your Jersey blessings"

—Frankfort: "S-3389: 'Those stumble that move too fast'"

—" New Jersey's electric vehicle mandate is bad economics. Here's why | Opinion"

—Why state legislatures are still very white — and very male

—" Stepien, Bonfonti team up for N.J. political consulting firm"

NEW - "THE RECAST" NEWSLETTER: Power dynamics are changing. "Influence" is changing. More people are demanding a seat at the table, insisting that all politics is personal and not all policy is equitable. "The Recast" is our new twice-weekly newsletter that breaks down how race and identity are recasting politics, policy and power in America. And POLITICO is recasting how we report on this crucial intersection, bringing you fresh insights, scoops, dispatches from across the country and new voices that challenge "business as usual." Don't miss out on this important new newsletter, SUBSCRIBE NOW. Thank you to our sponsor, Intel.

BIDEN TIME

HUGHES NEWS — "Stockton to release William J. Hughes documentary," by The Press of Atlantic City's Ahmad J. Austin: "A Stockton University-produced film celebrating the career of the late Ambassador William J. Hughes will be released March 10. 'The Life and Legacy of William J. Hughes,' a one-hour program, will be livestreamed at 7 p.m. on YouTube. Hughes, who died in 2019, represented the state's 2nd Congressional District for 20 years and later served as ambassador to Panama. He sponsored landmark legislation that banned dumping in the Atlantic Ocean. He also fought to prevent the Federal Aviation Administration Technical Center from moving to Oklahoma. The center is now named after him."

— "The return of Rosemary Becchi"

LOCAL

NEW RESIDENTS LURED BY LUCRATIVE CHILDREN'S BASKETBALL PROGRAMS — "Atlantic City housing market heats up as investors look beyond casinos," by The Wall Street Journal's Will Parker: "Atlantic City home prices rose 30% in the fourth quarter from a year earlier, making the New Jersey city one of the country's biggest gainers, according to the National Association of Realtors. Prices continued to rise in January, jumping 35% compared with a year earlier, according to data collected by real-estate brokerage Redfin. New Jersey gambling revenue, meanwhile, tumbled 17% in 2020. Atlantic City home-price gains followed efforts by local officials and real-estate investors to transform the town from a place where gamblers would try their luck at table games to a place where more people wanted to live and work permanently. 'They want to build up the Atlantic City economy where it's based off of businesses and activities that are not casino related,' said Joshua Garay, a New York real-estate broker."

THE PEOPLE'S REPUBLIC — "In win for landlords, judge rules Montclair rent control law must go to special election," by The Record's Julie Martin: "In a turnaround, an Essex County judge Monday ordered the Montclair town clerk to certify a landlord petition to put the township's new rent control ordinance to a voter referendum this spring. The move reverses his January order to enforce the ordinance, which was passed by the town council in April. That ruling had representatives from the Tenants Organization of Montclair, council members and rent control advocates dancing on Church Street. This time, it was the property owners who were celebrating."

—" AC school board member files petition with NJDOE after votes blocked by solicitor"

—"State warns Paterson of $2M aid cut if city moves ahead with sewer plan repeal"

—" Trentonian building sold to new owners for $1.75M, newspaper relocating to Hamilton"

—"Raw sewage spilling onto [Ventnor] street for a week"

HAPPENING TODAY - A PLAYBOOK INTERVIEW WITH REP. SEAN PATRICK MALONEY : Democrats clinched control of the House in November but did not achieve their expected gains, making it trickier to push forward with President Joe Biden's agenda. Rep. Sean Patrick Maloney (D-N.Y.), the Democratic Congressional Campaign Committee chair, joins Playbook co-authors Rachael Bade and Eugene Daniels to discuss his plans for protecting Democrats' slim majority in 2022, lessons learned from the November campaign cycle, and the continued fallout from the Jan. 6 insurrection. REGISTER HERE.

EVERYTHING ELSE

1.07 MASTROS — "Rutgers paid its 19 head coaches $9.7 million in 2020," by The Asbury Park Press' Chris Iseman: "Rutgers University's athletic department paid its 19 head coaches a combined $9.7 million in 2020 … The three highest-paid head coaches were football coach Greg Schiano, men's basketball coach Steve Pikiell and women's basketball coach C. Vivian Stringer. Each took 10 percent pay cuts in base pay over four months last year when the university began to struggle with the economic impact of COVID-19. Schiano grossed $3,758,395 in 2020 ($3.6 million base salary), Pikiell $2,276,408 ($495,000 base) and Stringer $1,013,634 ($600,000 base)."

—" At Rutgers University, a new effort is underway to confront ties to slavery"

ENOUGH VACCINES FOR JOHNSON, JOHNSON AND 19,999,998 OTHERS — "J&J says it will be able to provide 20 million US doses of its COVID-19 vaccine by end of March," by The AP: "Drugmaker Johnson & Johnson says it will be able to provide 20 million U.S. doses of its single-shot COVID-19 vaccine by the end of March, assuming it gets the greenlight from federal regulators. J&J disclosed the figure ahead of a Congressional hearing on Tuesday looking at the country's vaccine supply. White House officials cautioned last week that initial supplies of J&J's vaccine would be limited. The company reiterated that it will have capacity to provide 100 million vaccine doses to the U.S. by the end of June. That supply will help government officials reach the goal of having enough injections to vaccinate most adult Americans later this year. On a global scale, the company aims to produce 1 billion doses this year."

—"Horizon BCBS customers getting $48.2M back after health costs are lower than expected"

A message from Anbaric Development Partners:

With a bold vision of creating 7500 MW of wind energy by 2035, New Jersey is leading the race to scale the offshore wind industry, but a major question remains: How will we transport that energy back to shore? The answer is planned transmission, the most efficient, economic, and environmentally friendly way to bring offshore wind power to New Jersey's homes and businesses.

Acknowledging the considerable benefits of a planned transmission approach, the BPU announced late last year that the state, alongside PJM, will issue a first-in-the-nation transmission-only solicitation in early 2021. Now, New Jersey will need a partner that can deliver on this transformative opportunity.

With extensive experience building transmission systems, Anbaric is the company New Jersey can trust to achieve our state's clean energy goals. Anbaric is committed to scaling the offshore wind industry while protecting ratepayers and the environment.
Visit nj.anbaric.com to learn more.