News : POLITICO New Jersey Playbook: A budget windfall

Tuesday, May 17, 2022

POLITICO New Jersey Playbook: A budget windfall

May 17, 2022

Presented by Anbaric Development Partners

Good Tuesday morning!

I find it amazing that two years ago, just a few months into the pandemic, we thought we were staring into a budget abyss, and the Murphy administration successfully called for billions in new borrowing.

Yesterday, the Office of Legislative Services predicted two-year revenues would be $6.9 billion greater than the Murphy administration estimated.

Chris Christie called the OLS' then-budget officer, David Rosen, "Dr. Kevorkian of the numbers" for frequently having lower estimates than the Christie administration. I wonder if Murphy will dub his successor, Thomas Koenig, the "Lazarus of the numbers."

Anyway, it's not a bad problem to have. Senate Budget Chair Paul Sarlo wants a big surplus. Republicans want tax cuts. Speaker Coughlin is calling for the most property tax relief ever.

And here's two interesting proposals by state Sen. Shirley Turner and Assemblymember Verlina Reynolds-Jackson, who represent Trenton and many nearby towns, and with them a whole lot of state workers. Last week, they proposed two bills that would put an extra $1 billion of pension funding into the upcoming budget, on top of the $6.8 billion Murphy plans, and give every single pension recipient in New Jersey a one-time payment of $300. I'm not sure exactly how many people receive a pension right now but I imagine that would have a price tag of around $1 billion as well.

"We have all this money that we don't know what to do with. We should not be wasting it frivolously. We should be paying back what we owe," Turner told me in a phone interview. The $300 payment, Turner said, is meant as a small boost to recipients because they haven't received cost of living adjustments to their pensions since 2011.

DAYS SINCE MURPHY REFUSED TO SAY WHETHER HIS WIFE'S NON-PROFIT SHOULD DISCLOSE DONORS: 91

WHERE'S MURPHY? — In Newark for a 2 p.m. "entertainment industry announcement." Media: "Ask Governor Murphy" on News 12 at 5 p.m.

QUOTE OF THE DAY : "If a pre-operative transgender women still has an appendage reminiscent of sex assigned at birth and is incarcerated with cisgender women and has sex, the stork doesn't have to go through your metal detectors and I imagine that this is something that we had to know could happen as the policy was being developed. Was there a plan? How do we deal with this in the future?"" — Assemblymember Raj Mukherji to Corrections Commissioner Victoria Kuhn

HAPPY BIRTHDAY — State Sen. Andrew Zwicker, former Assemblymember Serena DiMaso, GOP fundraiser Lawrence Bathgate, Bergen Clerk John Hogan, former Edison mayor Jun Choi, Norcross aide Ginamarie Cordero, Virtua's Cort Adelman

TIPS? FEEDBACK? HATE MAIL? Email me at mfriedman@politico.com

NEED MORE PLAYBOOK? — Sign up here for NJ Playbook PM and get more news in your inbox care of POLITICO's Jonathan Custodio, minus the snarky headlines

A message from Anbaric Development Partners:

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WHAT TRENTON MADE

DEP — Lawmakers fear New Jersey DEP is understaffed, behind on its job, by POLITICO's Ry Rivard: Several members of the Assembly budget committee practically begged the head of Department of Environmental Protection on Monday to ask for a larger budget and more staff. During a three-hour budget hearing, members, including Assemblymember John McKeon (D-Essex), repeatedly questioned whether the agency has enough people to protect the environment. McKeon worried that staffing issues have delayed important rulemaking, including the rollout of regulations meant to reduce and mitigate the effects of climate change and to protect low-income communities and communities of color from industrial pollution. The department has yet to release rules that would give force to the landmark environmental justice law Gov. Phil Murphy signed 20 months ago.

SANS SANZARI — New Jersey's representative on Waterfront Commission abruptly steps down, by POLITICO's Ry Rivard: Joseph Sanzari, the owner of a major North Jersey-based construction firm, abruptly resigned as New Jersey's representative on the bi-state Waterfront Commission. The resignation was announced Monday evening by Gov. Phil Murphy's office. No reason was given by the governor's office. Sanzari could not be reached for comment. No one answered the phone at his construction firm, Joseph M. Sanzari Inc. Late last year, Murphy appointed Sanzari to the commission that was created in the 1950s to tamp down on thievery and corruption on the docks. New Jersey has been trying for years to exit the commission but its departure is now on hold at least temporarily because of a U.S. Supreme Court case filed by New York.

ASSEMBLYMAN CHALLENGES BIG BOX — "Assembly committee clears cardboard box regulations over republican, business objections," by New Jersey Globe's Joey Fox: "The Assembly Environment and Solid Waste Committee today approved Assemblyman John McKeon (D-West Orange)'s bill to ban large retailers from shipping products in boxes more than twice the volume of the product, but not before a number of business group representatives and Republican legislators noted the myriad problems the bill could cause. McKeon first proposed the legislation three months ago, after he received a small car sticker in a huge cardboard box and realized state law should address oversized packaging … Assemblyman Brian Bergen (R-Denville), however, argued that such legislation is unnecessary – virtually all shipping, after all, is done using easy-to-recycle cardboard boxes – and would be a burdensome imposition on businesses. 'This isn't even a serious bill,' Bergen said. 'This is a horrendous piece of legislation. It's obviously not well-thought out; there are just an unimaginable amount of examples for ways in which this can't possibly work.' Joining Bergen in opposition to the bill were a number of lobbyists and representatives from business associations who pointed out that a broad ban on oversized packaging could have all sorts of unintended consequences."

AGE IS JUST A NUMBER — " Could extending retirement age help fix NJ judge shortage?" by NJ 101.5's Michael Symons: "New Jersey's judiciary is short on judges but could get a lifeline through longer life expectancy. An Assembly committee last week advanced a bill (A3165) that would raise the mandatory retirement age for judges and county prosecutors by two years, from age 70 to age 72. The idea still faces a number of hurdles and would need to be approved by voters in a referendum for it to apply to the state's judiciary. Assemblyman John McKeon, D-Essex, said the idea isn't really about vacancies, though around 16% of judicial seats are currently unfilled. It's about life expectancy, McKeon said. When the retirement age of 70 was set in the 1947 state constitution, most judges were men and their average life expectancy was 64. It's now 77 for the average American … Even if the bill were to pass, the retirement age for Supreme Court justices and Superior Court judges couldn't increase until voters agree to amend the state constitution. But it could go up immediately for administrative law judges, workers' compensation judges and county prosecutors."

GAMBLING IS ADDICTIVE — " As gambling addictions surge, N.J. lawmakers study limits on sports betting ads," by NJ Advance Media's Keith Sargeant: " Ralph Caputo turned on his television and was outraged by what he saw. The Democratic Assemblyman from Essex County couldn't get through a channel surf without being hit with a commercial for a sports betting site. 'This over marketing and advertising is obnoxious,' Caputo said. 'It's obscene. You can't turn the television on without being hammered by an ad. I'm old enough not to be entrapped. But there are a lot of young people who are being influenced by these ads. It's very upsetting to see.' Caputo expressed his disbelief last week during a state legislative hearing on the surge of sports betting. As chair of the state Assembly's tourism, gaming and arts committee, Caputo helped lead New Jersey's efforts to legalize sports betting in 2018. And more than anyone, he knows how the $10 billion-a-year industry has benefitted New Jersey, with $200 million in tax revenue since 2018, including $102.6 million last year. But Caputo realizes it has come at a cost. A new generation of sports bettors are just one smartphone app from ruin."

— Murphy, in wake of Buffalo shooting, tells pro-gun politicians to 'shove their thoughts and prayers'

—"Drivers fleeing a crash with multiple victims can only be charged once, court rules"

—"NJ MVC could be forced to make things more convenient for drivers"

—" Cryan 'disappointed' by Murphy's conditional veto of bribery bill"

—"N.J. 'looking at' how to respond to new COVID surge, Murphy says"

—"Ex-NJ transportation chief given go ahead to lead Gateway tunnel commission. Now NJ and NY have to agree on funding plan"

—" Jones, Lawrence join Murphy press shop"

—"N.J. to use federal COVID funds to help fire departments with safety equipment"

—"Murphy taps new prosecutors in Atlantic, Burlington"

DON'T MISS THE 2022 GREAT LAKES ECONOMIC FORUM: POLITICO is excited to be the exclusive media partner again at the Council of the Great Lakes Region's bi-national Great Lakes Economic Forum with co-hosts Gov. JB Pritzker and Mayor Lori Lightfoot. This premier, intimate networking event, taking place June 26-28 in Chicago, brings together international, national and regional leaders from business, government, academia and the nonprofit sector each year. "Powering Forward" is this year's theme, setting the stage to connect key decision-makers with thought leaders and agents of change to identify and advance solutions that will strengthen the region's competitiveness and sustainability in today's competitive climate of trade, innovation, investment, labor mobility and environmental performance. Register today.

BIDEN TIME

LET FREDON RING — "Flora targets 'grassroots' republicans to the right of Kean," by InsiderNJ's Fred Snowflack : "John Flora says the problem began years ago – back in the 1960's. 'We lost academia,' Flora told about 40 supporters Thursday at an Italian restaurant on Stanton Road. By that, he meant many of the nation's institutions succumbed to liberal influences and nothing has changed for generations. He ticked off universities, the public school system and the media as prone to anti-family, anti-religious and anti-capitalist biases. Flora is the mayor of Fredon in Sussex County, but what brought him to the heart of Hunterdon County on a lovely spring evening was his candidacy for the CD-7 Republican congressional nomination. Flora's view that left wingers began infiltrating the nation's core years ago and have not stopped is not novel. It is, in fact, a standard conservative talking point. Still, he thinks he can earn enough 'grassroots' support to become the conservative alternative to Thomas H. Kean Jr., the perceived frontrunner for the nomination and the right to take on Tom Malinowski."

IT'S MAILER TIME —"POLITICO is bringing transparency to this year's midterm congressional elections by shining a light on how campaigns and outside groups are using political mailers to target, persuade and talk to voters." Read more about the project here and submit your mailers to POLITICO here.

—Brindle: " US Supreme Court support for Rhode Island disclosure law is good news"

—Snowflack: "CD3 Flashpoint: 'Singing about killing versus killing'"

—"Varela loaned his 8th District congressional campaign $595k before HCDO petition challenge"

A message from Anbaric Development Partners:

LOCAL

CHEFF BOYAR FEE — "Feds say Paterson sergeant took money for his silence on police beatings of suspects ," by The Paterson Press' Joe Malinconico: "Did five crooked Paterson cops give a portion of the money they stole from drug dealers to their sergeant to keep him quiet about their assaults on suspects? That's what the United States Attorney's Office said in pretrial motions in the federal case against Sgt. Michael Cheff. The other five cops — Jonathan Bustios, Daniel Pent, Eudy Ramos, Frank Toledo and Matthew Torres — pleaded guilty more than two years ago to various civil rights crimes, including making illegal searches, assaults and theft. They were fired from their jobs at the time of their convictions. But federal authorities have delayed their prison sentences so they could possibly testify against Cheff in a trial set to start in U.S. District Court in Newark this week. Jury selection is scheduled to begin Monday … 'Evidence that Cheff helped conceal acts of excessive force shows he knowingly and willfully participated in the charged conspiracy,' the U.S. Attorney's Office said in a motion filed last week. 'That will help explain why, as a supervisor of employees paid less than he was, he knowingly accepted payments from the officers for his silence,' federal authorities said in the motion."

CHALLENGING THE GOLDEN RULE — " Monmouth GOP primary voters have a choice: America First or the party of Golden," by The Asbury Park Press' Susanne Cervenk a: "The words they came to hear Thursday night were stock-in-trade Republican messages: supporting businesses, Second Amendment rights, cutting bureaucracy and taxes. Oh, and did we mention taxes? 'Raise your hand if your property taxes are too low,' urged Daniel Francisco, who is running for Monmouth County Commissioner. His question was met not with raised hands but rolls of laughter from the audience. Francisco, an Englishtown councilman and former Project Veritas executive director, is one key sign that this GOP campaign outreach — and the June primary overall — have a different political air than in past elections. He is among the "America First GOP" team across three Central Jersey counties that are bucking the GOP establishment and putting their full weight behind a party primary challenge on June 7. The America First GOP slate marks the first time in a decade that Monmouth County Republican Organization has had a full-throated challenge in a primary"

I'M INCLUDING THIS ARTICLE TO CURRY FAVOR WITH BRENDAN GILL — " Why this Montclair teacher has kept an empty chair in his classroom for 52 years," by The Record's Julia Martin: "When Daniel Gill was 9 years old, he was invited to a birthday party in his apartment building in Manhattan's Washington Heights. He brought his best friend, Archie, and they rang the bell, holding wrapped presents. The mom opened the door, and her gaze fell on Archie, who is Black. 'We have no more chairs,' she said. Daniel was confused. He'd been in the apartment before and knew there was plenty of seating. He offered to sit on the floor, and then to get more chairs, but she repeated, 'There's no more chairs.' Finally it dawned on him that she was telling him that he was welcome, but Archie was not. The two friends handed the woman the presents and went back to Gill's apartment, both crying. Gill lost touch with Archie in high school, but the story has never left him … It was with him as he raised his three children. The oldest, Brendan, now an Essex County commissioner, remembers asking his father as a young boy why he had a tiny chair on his key ring, and hearing the story. It was with him as he retold the story to generations of Montclair students over 52 years of teaching. He keeps an empty chair in the center of his classroom, so students know 'this is an accepting place,' Gill said. 'When they forget that, I point to the chair.'"

—"[Hopewell Valley] teacher preyed on girls, sexually assaulted student in locked classroom, lawsuit alleges"

—" Here's how much money [$600,000] Hackensack has spent trying to fire two police officers"

—"Sex education debate: Parents' Bill of Rights gains Ocean County support "

—"How a Holmdel July 26 special election could bring changes to local elections, government"

—"How Red Bank's charter study could mean big changes to local government"

STEP INSIDE THE WEST WING: What's really happening in West Wing offices? Find out who's up, who's down, and who really has the president's ear in our West Wing Playbook newsletter, the insider's guide to the Biden White House and Cabinet. For buzzy nuggets and details that you won't find anywhere else, subscribe today.

EVERYTHING ELSE

MADONNA'S ELEVATION IS LIKE A NORCROSS PRAYER — "Vernon Hill ousted as chairman of Republic bank after key board ally dies," by The Philadelphia Inquirer's Joseph N. DiStefano: "A boardroom coup following the death of a key ally on the divided Republic First Bancorp Inc. board has forced veteran Moorestown banker Vernon Hill from his post as the chairman of the board of the Philadelphia company, which operates Republic Bank and its 33 branches in New Jersey, Pennsylvania, and New York. Hill was replaced by Harry Madonna, stepping back into a role he held before he and Hill became adversaries in a fight for control … Flocco and Hill formed part of a four-member faction on the Republic board that had locked horns with Hill's critics and prevented moves against him and his policies. The dissidents … are siding with longtime South Jersey insurance broker, hospital executive, and Democratic Party kingmaker George Norcross. The group didn't wait for Flocco's funeral Mass, scheduled for Wednesday at St. Joan of Arc Catholic Church in Marlton, to exploit his death by using their new majority to call for a board vote they expected Hill would lose."

—"Once trapped in Afghanistan, father and son find footing at Monmouth Park Racetrack "

—"The greatest restaurant in each of New Jersey's 21 counties"

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