News : POLITICO New Jersey Playbook: Could New Jersey see an even bigger surplus?

Friday, May 6, 2022

POLITICO New Jersey Playbook: Could New Jersey see an even bigger surplus?

May 06, 2022

Presented by The Pharmaceutical Care Management Association

Good Friday morning!

I realize budget news isn't the most clickable Playbook headline … but Matt is off and they let me put whatever I want at the top of this!

Yesterday, Senate Budget Chair Paul Sarlo (D-Bergen) tweeted that he wants to see a $6 billion (or more) surplus in the spending plan that lawmakers send back to Gov. Phil Murphy. That's about $2 billion more than what Murphy initially proposed.

I spoke to Sarlo briefly and he said that a beefed up surplus would give the state a cushion in the event of an economic downturn, which some are fearing could come next year.

"A surplus of $6 billion would send a real strong message from Wall Street and insulates us from a recession next year," Sarlo said. "I just see a recession happening and the last thing you want during a downturn is to raise taxes or cut services."

Revenues are still coming in strong. We will have an update from the state Treasury Department and nonpartisan Office of Legislative Services next Thursday, when officials appear before the Senate Budget Committee.

WHERE'S MURPHY? Making an announcement with New York Gov. Kathy Hochul at the Regional Plan Association Centennial Assembly at 1:40 p.m.

DAYS SINCE MURPHY REFUSED TO SAY WHETHER HIS WIFE'S NON-PROFIT SHOULD DISCLOSE DONORS: 80

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 The Pharmaceutical Care Management Association:

In the fight to make prescription drugs more affordable, PBMs are the only part of the prescription drug supply and payment chain dedicated to lowering drug costs. In fact, PBMs lower patient prescription drug costs by nearly $1,000 every year, enabling safe and seamless prescription drug delivery to patients, and helping New Jerseyans stay on their medications. Learn more about how PBMs advocate on behalf of patients at https://onyourrxside.org/state/new-jersey.

WHAT TRENTON MADE

REST IN PEACE — "Joe Albright, longest-serving statehouse correspondent, dies at 93," by The Jersey Journal's Margaret Schmidt: "The Jersey Journal's longtime Trenton correspondent, Joseph Albright, died today at Penn Medicine Princeton Medical Center in Plainsboro. He was 93. A resident of Trenton, Albright succumbed to congestive heart failure and other health issues after suffering a fall at home on April 20, according to longtime friend Joe Donohue, a former Statehouse reporter for the Star-Ledger and Press of Atlantic City. 'Everyone who knew him liked him -- governors, legislators, lobbyists, reporters and definitely other animal lovers,' Donohue said. Believed to have been the longest-serving statehouse correspondent in the country, Albright kept an eye on the Garden State's halls of government for Journal readers since 1964, with his final column appearing in today's paper and on NJ.com. During his tenure, Albright covered more than a dozen governors and hundreds of state legislators, always looking for the Hudson County angle that would be of most interest to or most affect the Journal's circulation area."

— From NJ Spotlight News' Briana Vannozzi: " Legendary NJ reporter, Joe Albright, dies at 93."

BUDGET TIME — "Murphy 'open minded' to putting more money in state budget for small businesses," by POLITICO's Katherine Landergan: Gov. Phil Murphy said Thursday he was open to adding more money to a fund for small businesses as part of the state's forthcoming budget. Murphy visited a comic book shop in Montclair to tout his fiscal year 2023 budget proposal, which includes $50 million for the Main Street Recovery Finance Program to help small businesses stay afloat as they transition out of the pandemic. "Absolutely we're open minded for more, without question," Murphy said in response to a question from a reporter. 'Small businesses are not in the end zone, so they're still recovering. And we're going to stay with them until they get completely back on their feet."

… Murphy wouldn't say whether he'd dedicate money to stave off tax increases New Jersey businesses must pay into the unemployment insurance fund. "No news to make on that," Murphy told reporters after Thursday's visit. "We've been asked out over the past couple of years. We want to make sure whatever money we put into small businesses as we have here, we get the biggest bang for the buck."

CORRECTIONS — " Murphy names new N.J. corrections watchdog in aftermath of scandals at women's prison," by NJ Advance Media's S.P. Sullivan: "Gov. Phil Murphy has named a new watchdog to lead a revamped oversight office a year after the state's previous ombudsman resigned amid complaints of lax oversight and widespread abuse at New Jersey's women's prison. Terry Schuster, formerly the head of a criminal justice program at Pew Charitable Trusts, will helm the state Office of the Corrections Ombudsperson. The post comes with expanded powers under the 2020 Dignity Act, a law that empowered the office to investigate complaints of sexual assaults, use of force and medical issues, among other problems."

I BET BART HARLEY JARVIS IS STILL THERE — "N.J. child care centers took a hit during the pandemic. They now serve 4,700 fewer kids," by NJ Advance Media's Susan K. Livio: "There are 142 fewer licensed child care centers operating in New Jersey since the pandemic began, shrinking the pool of children served by 4,700, a top state official said Wednesday. The economic fallout for the child care industry could have been much worse, Christine Beyer, commissioner of the state Department of Children and Families told the Assembly Budget Committee at a hearing in Trenton. The loss of 4,700 child care slots — going from 388,266 to 383,613 statewide — represents just a 1.2% decline, she said. The Murphy administration was the only state to use CARES Act Coronavirus Relief funds to support child care centers throughout the shutdown, Beyer said. The state allocated $210 million in relief for child care centers in the first year of the pandemic, according to the Gov. Phil Murphy's office."

Top Headlines. Insights. Issues that Matter. News moves fast in the Garden State. Want to make sense of it all? NJ PBS's Reporters Roundtable with David Cruz offers an insiders' view on the stories that are making headlines in Trenton and throughout the Garden State. Hear from the key players making news and the journalists reporting on them and the issues that matter to you, your community, your business, your state. Saturdays at 6pm; Sundays at 10am on NJ PBS. Learn more.

BIDEN TIME

RIZZO — "Rizzo's Harding property loses tax-exempt status," by The New Jersey Globe's Joey Fox: "The Morris County Board of Taxation has revoked tax-exempt status from the defunct City Baptist Church, which owns the house where 7th district congressional candidate Phil Rizzo keeps his residence, without the church or Rizzo contesting the decision, the New Jersey Globe has learned. Rizzo, a former pastor who ran as a conservative Republican in the 2021 gubernatorial race and is now seeking to take down Rep. Tom Malinowski (D-Ringoes), worked as a pastor at North Bergen's City Baptist Church until he took a leave of absence last June. The church subsequently shut down, supposedly because of Hurricane Ida. Back in 2017, Rizzo had sold his Harding County home to City Baptist Church for $1.65 million, thereby exempting the house from property taxes, but continued to live there. Harding Township challenged the church's tax exempt status in February, as Politico reported, arguing that a defunct house of worship shouldn't be able to continue avoiding property taxes."

ROE V. WADE — "Supreme Court's expected Roe v. Wade ruling could upend N.J.'s hottest congressional race ," by NJ Advance Media's Jonathan D. Salant: "In a midterm election where control of Congress is at stake and the president's party traditionally loses seats, Democrats are braced for a long Election Night and perhaps loss of their House and Senate majorities. But a draft U.S. Supreme Court opinion that would overturn the landmark Roe v. Wade decision that legalized abortion could change the discussion to the Democrats' benefit. 'It certainly gives them an advantageous topic to rally their base around,' said Ashley Koning, assistant research professor and director of Rutgers' Eagleton Center for Public Interest Polling."

A message from The Pharmaceutical Care Management Association:

LOCAL

COOL IT — "Will Fed rate hikes cool North Jersey's housing market? Some see buyers 'losing that fire'" by NorthJersey.com's Mary Chao: "The Federal Reserve raised interest rates Wednesday by the most in 22 years, in a bid to curb inflation. That's expected to boost mortgage costs even more and, in North Jersey, continue the bifurcation of the recent real estate boom, with wealthier clients unfazed but middle- and working-class buyers getting even more discouraged. The Fed lifted its benchmark interest rate by a half-percentage point, following up on a quarter-point rate hike in March, and the central bank predicted more increases will come as it tries to tame the worst price inflation in four decades."

PATERSON — "No public backlash to Paterson's proposed 11% school tax hike; vote set for next week," by The Paterson Press' Joe Malinconico: "Just two people spoke during Wednesday night's public hearing on a proposed $798 million school budget that would raise Paterson's education property taxes by 11%. Neither speaker focused on the tax increase. The first speaker, Rosie Grant of the Paterson Education Fund advocacy group, said the budget should improve 'student outcomes' and provide city children with a 'thorough and efficient education.' Grant also noted that local taxpayers will be asked to pay a larger share of Paterson's school costs as state funding decreases. The second speaker from the public called for greater accountability in the district."

TEANECK — "Teaneck schools chief resigned under pressure. Here's what it will cost taxpayers," by NorthJersey.com's Martha Stoltz: "The Board of Education has agreed to pay its departing superintendent $164,475 plus health insurance and unused vacation days under terms of their 'mutually agreeable' separation agreement. Christopher Irving announced his June 30 departure in an April 8 letter to parents and staff as the district was closing for spring break. The board said last summer that it was considering suspending Irving for reasons it would not reveal at a series of public meetings. But ultimately, members voted July 14 to table the suspension motion, saying they were 'looking forward to working with Dr. Irving.' The separation agreement is dated October 2021, and Irving's signature on the agreement is dated Oct. 22, 2021, suggesting his departure was negotiated shortly after the motion was tabled."

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EVERYTHING ELSE

NEWARK HOUSING — "Corporate home buyers raising rents and prices in Newark, report says; city vows action," by NJ Advance Media's Steve Strunsky: "Purchases of residential properties in Newark by corporate entities has caused rents to rise and owner-occupancy to fall, according to a new Rutgers-Newark study, prompting city officials to announce countermeasures. The action includes transparency requirements for buyers and a surcharge on rent increases even for houses and apartments not subject to rent control. The trend, which largely involves single-family and 2, 3 and 4-unit houses or apartment buildings, is alarming, researchers say, because rising rents in the distressed areas of Newark where it's focused puts added pressure on renters struggling with lingering unemployment or economic slowdown linked to the pandemic."

ABORTION — "Number of out-of-state pregnant people seeking abortions in New Jersey expected to grow," by The Record's Lindy Washburn: "Abortion providers in New Jersey are prepared to help pregnant people from other states if the U.S. Supreme Court overturns the Roe v. Wade decision and allows states to restrict or ban such services. Over the last year, the state has taken steps to protect and expand access to abortion. A few people from Texas already have received abortions in New Jersey, in the wake of that state's law prohibiting abortions after six weeks, providers report. In 2019, more than 1,300 out-of-state residents received abortions in New Jersey, according to the latest data from the federal Centers for Disease Control and Prevention. That number is expected to grow. Texas is one of 13 states with laws already on the books severely limiting access to abortion, while 13 others are poised to enact such laws. As a result, experts predict that nearly half of women of reproductive age in the United States could lose access to abortion."

— NJ Spotlight News: "Immigrant work permits extended amid massive backlog of applications "

— POLITICO: "What can Democrats do if Roe v. Wade is overturned? Not much."

— NJ Spotlight News: "Many overdose deaths in NJ due to 'fentanyl epidemic"

A message from The Pharmaceutical Care Management Association:

Pharmacy Benefit Managers, PBMs, are working on behalf of millions of New Jersey patients with health insurance to reduce prescription drug costs, expand access to medications, and improve patient outcomes.

Here are the key facts to know about PBMs:

• PBMs negotiate with drug companies to lower prescription drug costs, reducing patient drug costs by nearly $1,000 each year.
• PBMs work with pharmacies to deliver prescription drugs to New Jersey patients safely and seamlessly.
• Over the next ten years, PBMs will save New Jersey patients more than $29 billion dollars.
• PBMs advocate for patients in the fight to keep prescription drugs accessible and affordable.

Learn how PBMs advocate for patients at https://onyourrxside.org/state/new-jersey