Monday, February 27, 2023

Controlling and defanging N.J.'s campaign finance watchdog

Matt Friedman's must-read briefing on the Garden State's important news of the day
Feb 27, 2023 View in browser
 
New Jersey Playbook

By Matt Friedman

There’s a power grab afoot.

On Friday, I told you about how a late tweak to the massive “Elections Transparency Act” would take away some of the Election Law Enforcement Commission’s independence, making its executive director — currently appointed by ELEC’s bipartisan commissioners — a gubernatorial nominee.

Later that day, we discovered the reason, or at least the justification by the Murphy administration. ELEC Executive Director Jeff Brindle sent what most would consider an inappropriate email to an ELEC staffer back in October in response to a communication about National Coming Out Day.

“Are you coming out? No Lincoln or Washington's Birthday's but we can celebrate national coming out day,” Brindle wrote. (Presidents Day is a state holiday).

What followed that email was a behind-the-scenes pressure campaign to force Brindle’s resignation, beginning with the governor’s top staffers and even involving the governor’s office. Brindle’s attorney recounted the actions, most of which — aside from a threat to make Brindle’s email public if he didn’t resign — haven’t been disputed by the Murphy administration. And he said Brindle was expressing a political opinion in his email.

But let’s take a step back here. The “Elections Transparency Act” is scheduled for final passage today in both the Assembly and Senate. The Murphy administration and Legislature are trying to defang and politicize the state’s campaign finance watchdog agency while simultaneously massively increasing political contribution limits, allowing political parties to create giant new “housekeeping funds,” and gutting New Jersey’s pay-to-play laws. And they’d put a two-year statute of limitations on ELEC’s enforcement powers — a move that would excuse the three major Democratic committees from paying some big fines they could face as a result of a recently-announced ELEC audit of the 2017 election. The statute of limitations would also hamper an agency that depends on public tips to pursue charges. Those can lag by a lot.

I’m not going to answer this question for you, but I think it’s important to put this in perspective: Is one email written by ELEC’s executive director justification for killing the independence of a 50-year-old state agency, just as lawmakers are opening the campaign finance floodgates? (I haven’t even seen any gay rights advocates make statements about it). And, if you think that email does justify the action, why didn’t proponents pursue it openly instead of that sneaky Trenton way of introducing it into a massive bill in the evening, without discussing it, just days before its final vote?

Read more about it here.

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

QUOTE OF THE DAY: “One of the best things we have in New Jersey is ELEC … “The idea that we have some group that is independent, has been there for a long time, and whose executive directors have been respected, that shouldn’t be tampered with.” — Former Gov. Tom Kean 

WHERE’S MURPHY? Nothing public

HAPPY BIRTHDAY: Joe Egan, William Spearman, Jackie Cornell, Patrick McCarthy, Vik Rupani

WHAT TRENTON MADE

NJ STAGNANT — “NJ Transit's creaky, empty trains stir worry of fare increases,” by Bloomberg’s Elise Young: “New Jersey Governor Phil Murphy, who inherited one of the most troubled US commuter railroads, set out to do the seemingly impossible: fix shoddy service without making fed-up riders pay more. But now in his second term, the problems persist. A record number of New Jersey Transit breakdowns far exceed those of its two New York City-area peers, federal data show. At the same time, NJ Transit is dangling discounts — two-for-one holiday travel, 20% off multiple-ride passes — to coax more commuters aboard trains whose ridership is 55% to 75% of pre-pandemic levels, depending on the weekday. As federal pandemic aid dwindles, the biggest statewide passenger railroad is staring down an estimated $550 million budget hole in 2026. The two New York commuter railroads — NJ Transit’s nearest peers by annual miles traveled — are under similar pressure: Governor Kathy Hochul is seeking new employer payroll taxes to raise $800 million annually for the Metropolitan Transportation Authority, which operates the lines. No such plan has emerged publicly in New Jersey, where Murphy is preparing a fiscal 2024 state budget that he will introduce on Feb. 28 … Measured by mean distance between failures, an industry standard, NJ Transit from 2017 to 2021 scored the worst rate among Manhattan-area commuter rail”

— “Panasonic building lobbied hard to lure NJ Transit HQ. Why did agency turn it down?” by The Record’s Colleen Wilson: “The CEO of Panasonic North America sent two letters and enhanced proposals to NJ Transit pitching the agency to move its headquarters to Panasonic’s Newark building, even offering the entire 12-floor building to the agency, according to letters obtained by NorthJersey.com. But the pitch was not attractive enough to entice NJ Transit President and CEO Kevin Corbett to even tour the building, according to the letters. Instead, the agency decided to move its headquarters to the Gateway 2 building in Newark, part of a complex owned by Jonathan Schultz and John Saraceno, who have donated more than $38,000 to Gov. Phil Murphy's election campaigns since 2016. Murphy has an office in the complex … The real estate deal was at the center of Cedrick Fulton’s decision to abruptly resign from the NJ Transit board two days before the Feb. 8 meeting, weeks after Fulton publicly called out the agency’s staff for failing to involve the board in matters of what he considered great consequence for the agency.”

BUDGET — “More property tax relief, big N.J. public worker pension payment expected in new Murphy budget,” by NJ Advance Media’s Matt Arco: “Eight months after signing a state budget with a record-setting price tag, Gov. Phil Murphy is set to unveil his next spending plan Tuesday, kicking off four months of hectic negotiations with the Democratic-controlled state Legislature. Murphy’s administration was still ironing out details about the Democratic governor’s sixth budget address as late as this weekend. But Murphy has recently revealed some of his plans for using taxpayers’ money in the fiscal year that begins July 1. That includes no tax increases, some tax cuts, the renewal of a property-tax relief program, another full pension payment, another boost to school funding, and no fare hikes for NJ Transit. ‘I think you’re gonna see the continued three-legged approach we’ve taken to largely everything since we’ve started,’ Murphy said this past week about the upcoming budget … Meanwhile, Murphy — long considered one of the nation’s most left-leaning governors — has faced blowback from progressive groups for saying he will let a surcharge on the state’s corporate business tax expire. And Republicans are already pushing their own proposal to reduce property taxes, of which the state has the highest in the country.”

DOMESTIC VIOLENCE SHELTERS — Domestic violence shelter space remains in short supply, straining agencies that bring survivors to safety,” by The Jersey Journal’s Teri West: “Since 2020, domestic violence statewide had exploded. It has unfortunately felt inevitable that some women would not survive. In the shadows of the headlines about the tragic deaths of Luz Hernandez and Temara King are the families filling domestic violence shelters statewide, which are now strained for space. Advocates for domestic violence victims say agencies serving women now frequently must house individuals or families in either another county’s shelter or a hotel because of the lack of beds.”

DEFANGING THE WATCHDOG — “A slippery stunt by Democrats to defang the election watchdog,” by The Star-Ledger’s Tom Moran: “Democrats just voted to sink a knife into the heart of the chief watchdog overseeing New Jersey’s elections, leaving its executive director slimed and the agency itself toothless. If the final act of this scheme unfolds as planned on Monday, they will be able to cheat at will in their elections, raising and spending money as they see fit, with little risk of consequence. It is a first-degree crime against good government, folks … I spoke with Assembly sponsor of the bill, Lou Greenwald … who said the governor appoints the ELEC commissioners anyway, so a direct appointment of the executive director won’t be a dramatic change. The two-year statute of limitations, down from 10 years, was designed to align with the terms of Assembly members, he said. As for ELEC’s pending charges against Democrats, that they failed to report nearly $1 million in donations, and just over $1 million in expenses, Greenwald dismissed that as ‘bookkeeping errors.’ That is weak tea, to put it politely.”

—"New Jersey’s state legislature is broken. Monday’s vote is Exhibit A,' by Julia Sass-Rubin for New Jersey Globe: "If you doubt that the New Jersey state legislature is broken, you need look no further than the Orwellian named 'Election Transparency Act', legislation scheduled for votes on Monday by the State Senate and Assembly that is almost comically bad. The bill is an open invitation for corruption and abuse — gutting the watchdog organization responsible for clean election oversight, eliminating protections against pay to play, dramatically increasing campaign spending, and many other bad government ideas."

CALL ME BS-MAEL — “Washing up on the shores of a landlocked district,” by InsiderNJ’s Fred Snowflack:  “This week’s political intrigue in LD-26 began with dead whales and ended with state Sen. Joe Pennacchio being unanimously endorsed by Passaic County Republicans. ‘It’s a reaffirmation of the hard work we’ve done,’ Pennacchio said Thursday evening after being notified of the endorsement. “We are going to commit to them the same hard work that we’ve done.” Pennacchio is being challenged for the district’s Republican nomination by Tom Mastrangelo, a veteran Morris County freeholder/commissioner. ‘There’s no ambiguity,’ Pennacchio said of the Passaic endorsement. ‘Where my opponent thinks he has any type of support is strictly in his head … As for Mastrangelo, he has beached whales on his mind. . He asked this week why Pennacchio hasn’t been more outspoken about dead whales washing up on New Jersey beaches. As many Republicans are wont to do, Mastrangelo linked the dead mammals to the state’s fledgling wind energy project.”

— “Here’s everything that the ‘Elections Transparency Act’ would do” 

—Moran: “How the ultra-rich, from Trump to Bruce, dodge their taxes and increase yours” 

—Mulshine: “I’ll drink to that: A governor finally takes on New Jersey’s 75-year-old liquor cartel” 

—“N.J. going after ‘sextortion’ as parents sound alarm on predators who target minors on social media” 

—“Anti-bullying advocate will shift tactics after another NJ teen’s bullying-triggered death” 

—“Helmy, Kelley, Bollwage confirmation hearings set for Monday

—“Reduce New Jersey’s corporate business tax and its ‘invisible tax’ for businesses to thrive | Opinion” 

—“DeSilvio is likely GOP State Senate candidate for Madden seat in competitive district” 

 

JOIN POLITICO ON 3/1 TO DISCUSS AMERICAN PRIVACY LAWS: Americans have fewer privacy rights than Europeans, and companies continue to face a minefield of competing state and foreign legislation. There is strong bipartisan support for a federal privacy bill, but it has yet to materialize. Join POLITICO on 3/1 to discuss what it will take to get a federal privacy law on the books, potential designs for how this type of legislation could protect consumers and innovators, and more. REGISTER HERE.

 
 
BIDEN TIME


—“N.J. Republican and Democrat both visited the Mexican border. They saw different things” 

LOCAL


LINDEN IMMEDIATELY DESIGNATED A TIKTOK ZONE AND THE CHINESE GOVERNMENT IS TAKING OVER — “Meet the high school student appointed to the Linden zoning board,” by MyCentralJersey’s Suzanne Russell: “Hagr Elweshahy, a senior at Linden High School, made history last week when she was appointed to the city’s Zoning Board of Adjustment, the youngest person named to the board. Mayor Derek Armstead appointed Elweshahy Tuesday with the unanimous approval of the City Council. Elweshahy’s appointment is Armstead’s latest example of empowering qualified youth to engage in important and critical leadership positions, the mayor said … A lifelong city resident, Elweshahy, 18, is slated to graduate in June as Linden High School's Class of 2023 valedictorian.”

BRAVE SPARTANS BLOCK DANGEROUS IDEAS AT THERMOPYLAE, ER, THEIRLIBRARY  — ”Young adult book featuring diversity removed from Sparta middle school library,” by New Jersey Herald’s Kyle Morel: “The Sparta Board of Education voted to remove a young adult novel from the middle school library following a parent complaint, a controversial move that has many concerned about censorship and book banning in the district. The board's 5-2 vote at Thursday's meeting … moved all copies of the 2017 book ‘The Upside of Unrequited’ to the high school library effective Friday. The decision ran counter to the opinion of a district review committee, which recommended the novel remain in the middle school with an "8" on the binder denoting it as a book for eighth-graders … An NPR review of "The Upside of Unrequited" highlighted its diversity, including an interracial family and several LGBTQ+ characters. The book also discusses sexual themes like virginity and orgies, which prompted Christina Korines, a parent in the district, to challenge its place in the middle school.”

RESIDENTS ALSO ASKING WHY YOUR CAR IS IN THE FRONT YARD, YOU’RE SLEEPING WITH YOUR CLOTHES ON —  “Some N.J. municipal council meetings are still virtual. Residents are asking why,” by NJ Advance Media’s Camille Furst: “The public meeting began, like any other, with the pledge of allegiance. Some Piscataway council members began reciting the pledge, while others were a few seconds behind because of delays from the Zoom call. The start of the town council’s public meeting last month reflected how many virtual meetings end up: awkward. Piscataway is one of several New Jersey municipalities still holding public meetings remotely nearly three years into the COVID-19 pandemic. While some Piscataway council members sit in the council chambers for the Zoom call, others sign in for the meeting from home. And the public can only watch or listen online or on the phone. Some residents in the Middlesex County township say returning to in-person municipal meetings is long overdue … An NJ Advance Media review of the top 100 most populous municipalities in New Jersey showed at least five were still conducting council meetings virtually this month: Piscataway, Irvington, South Brunswick, Orange and Willingboro.”

—“Why Red Bank has second thoughts on marijuana and might limit legal weed stores” 

—Kelly: “Why can't NJ build a walkway like NY along the Hudson River?

—“Fulop talks Centre Pompidou x Jersey City, 911 mishaps, & FDU poll on governor’s race” 

 

DOWNLOAD THE POLITICO MOBILE APP: Stay up to speed with the newly updated POLITICO mobile app, featuring timely political news, insights and analysis from the best journalists in the business. The sleek and navigable design offers a convenient way to access POLITICO's scoops and groundbreaking reporting. Don’t miss out on the app you can rely on for the news you need, reimagined. DOWNLOAD FOR iOSDOWNLOAD FOR ANDROID.

 
 
EVERYTHING ELSE


SCARLET FIGHTS — “The sad reality of Jonathan Holloway’s ‘beloved community’ at Rutgers,” by Saleena Ghanny for The Star-Ledger: “I am a member of HPAE Local 5094, which represents approximately 2,709 health care professionals, 2,060 of whom work for Rutgers in mental health, health care, corrections, child protection and permanency, biomedical research, information technology, and education, among other professionals. HPAE Local 5089 represents an additional 1,569 health care workers, mostly nurses, 632 of whom also work for Rutgers. Members at both HPAE locals have been working on expired contracts since June 30, 2022. Rather than bargaining with us in good faith, Rutgers has been trying to bust our union by subcontracting bargaining unit work at the Cancer Institute of New Jersey to RWJBarnabas Health, a private corporation. After continuously denying they were doing this, Rutgers admitted they intend to continue to take our jobs and give them to this private corporation … We all see that Rutgers values some of its employees more than others. As reported, Rutgers is giving its men’s basketball coach a lifetime multi-million dollar contract and football coach Greg Schiano is already the highest-paid state employee to the tune of $32 million over eight years.”

—“Will Rutgers University unions decide to strike? Vote begins Tuesday” 

—“American Dream water park reopens after display helicopter crash” 

—“Will Rutgers University unions decide to strike? Vote begins Tuesday” 

 

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