| | | | By Matt Friedman | Presented by New Jersey Wind Works | New Jersey is a largely Democratic state, but not necessarily a progressive one. That, anyway, is if the type of legislation being pushed as we enter into late budget season is any indication. Democrats are seeking to project a tax-cutting and tough-on-crime image ahead of the November election. Look at the bills that were approved in the Senate Budget and Appropriations Committee on Monday. Tougher penalties for fentanyl dealing. Upgrading the crime of assault on a police officer. On the tax end, the committee approved legislation that dramatically overhauls New Jersey’s corporate tax code in all kinds of ways I’m not smart enough to explain, but the biggest component seems to be the state only taxing 5 percent of corporate foreign earnings, down from 50 percent. The Murphy administration, which wrote the legislation with the business community, says it's revenue neutral. Regardless or whether it actually is, the legislation is favored by business advocates and opposed by progressive groups. Of course there's Speaker Coughlin's "StayNJ" senior tax credit currently being ironed out. And on Thursday, the Assembly Judiciary Committee is set to take up a newly introduced bill that would loosen the restrictions cops face in enforcing the law against underage drinking and cannabis use, likely in response to complaints from Shore towns about the rowdy teens who have been congregating there. A companion Senate bill was introduced Monday, though I’m not entirely sure, based on his quote below, that the Senate president will be behind it. TIPS? FEEDBACK? Email me at mfriedman@politico.com QUOTE OF THE DAY: “If you see bad behavior, don’t blame cannabis. Use your enforcement authority on the behavior itself. If you see a kid doing something illegal on the boardwalk, arrest him and charge for that. You don’t say, ‘Well, we can’t stop him because we think he might be smoking marijuana.’ I mean, come on. What this sounds like to me is scapegoating.” — Senate President Nicholas Scutari on blaming juvenile justice reforms that were attached to recreational weed legalization for rowdy teens down the Shore. HAPPY BIRTHDAY — Jon Whiten, John Armato, Matt White WHERE’S MURPHY? — At Kean University at 11 a.m. for a “fireside chat” on youth mental health and an announcement | | A message from New Jersey Wind Works: New Jersey is leading the nation with a dynamic and responsible offshore wind industry that will deliver clean, renewable energy to millions of our homes for generations to come. Ocean Wind, Atlantic Shores and more upcoming wind projects are already helping boost our economy and will guarantee reliable, clean energy for generations to come. Make sure you let Trenton leaders know that you want New Jersey to continue to grow offshore wind! | | | | WHAT TRENTON MADE | | THE IN-PERSON VERSION OF A HYPERBOLIC CAMPAIGN FUNDRAISING EMAIL — A 'feeling of Trump 2016': Why Phil Murphy and Democrats have anxiety this election year, by POLITICO’s Dustin Racioppi: They are not quite sounding alarm bells, but at a Democratic State Committee meeting on Friday they warned of the consequences of complacency in November — which they got a taste of in a Republican surge two years ago. "I have this feeling of Trump 2016, which is not a good feeling," Murphy said in a speech to members gathered at the Hilton in East Brunswick. "I feel really uneasy. I'm not saying this to be a downer. I'm saying this to make the simple point that we need to lay it all out," he added. "There's no governor's race. There's no senators' race. Members of the House of Representatives are not on the ballot. This is nakedly our entire Legislature. ... I'm begging you, please, please, God, don't take anything for granted." Murphy was not alone in his anxiety. Middlesex County Chair Kevin McCabe struck a similar tone. "We are looking at a razor-thin proposition of holding the majorities in both houses this year. It's going to come down to a few districts," McCabe said in a speech.
MERCURY FALLING — Murphy: The budget temperature is 'coming down' after meeting, by POLITICO’s Dustin Racioppi: Tensions over the next budget have eased after a meeting between the Murphy administration and Assembly Speaker Craig Coughlin's office. Though the two sides have many details to work out before the June 30 deadline for a fiscal year 2024 spending plan, the prospect of a government shutdown seems less likely than it did a couple weeks ago. On Friday, Gov. Phil Murphy said the two sides were "making good progress" following the meeting. "I think the temperature is coming down," Murphy said in a brief interview. His chief of staff, George Helmy, shared a similar view. … Coughlin's office declined to comment. —Coughlin expresses support for Murphy-backed prescription drug bill, by POLITICO’s Daniel Han: Assembly Speaker Craig Coughlin said Monday that he is “in favor” of getting a prescription drug bill backed by Gov. Phil Murphy done. The comments, made during an AARP New Jersey town hall, carry weight as lawmakers head toward the budget deadline — a time of year when deals around non-budget policies are often made and lawmakers move quickly to pass legislation. “We need to rein in the cost of drugs,” Coughlin said when asked specifically about legislation that would establish a Drug Affordability Council. YEAH, I TOTALLY UNDERSTAND THIS STUFF. I SWEAR — Big New Jersey corporate tax overhaul takes first step forward, by POLITICO’s Matt Friedman: A major and controversial overhaul of the way New Jersey taxes corporations began advancing in Trenton on Monday, just weeks ahead of the deadline to adopt a budget. The bill, NJ S3737 (22R), was approved by the Senate Budget and Appropriations Committee by a vote of 11-0 with one abstention. … While there are numerous facets to the legislation, the biggest change and point of controversy would be in how New Jersey taxes corporate overseas profits. Since Congress in 2017 enacted the tax on global intangible low-taxed income (GILTI) in an effort to curtail offshore tax havens, New Jersey has taxed such income at 50 percent. … [T]he New Jersey Bankers Association opposed it because it forces real estate investment trusts and captive investment companies into combined reporting requirements. Income from those sources is currently taxed as dividends. Brittany Wheeler, director of government affairs for the New Jersey Bankers Association, told the committee some community banks would see a 60 percent tax increase because of the change.
| | 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. | | | GOOD BOYS GOOD BOYS, WHATCHA GONNA DO? — “Pooches in prison? Lawmakers say service animals could aid inmates with disabilities,” by New Jersey Monitor’s Dana DiFilippo: “Incarcerated people with disabilities could get service and companion animals under new legislation proposed by several Democratic state lawmakers. Assemblyman Reginald Atkins (D-Union) said the animals could help people in prison with daily activities made difficult by their disabilities, as well as serve as a calming influence to help them cope with the stress of incarceration. … Under the bill, someone who uses a service animal and gets sentenced to state prison would be able to petition the Department of Corrections to bring their animal behind bars with them. Those already incarcerated would be able to request a service animal.” FOR WHOM THE TOLL BILLS — “Manhattan’s first-in-nation congestion tolls spark tension with New Jersey,” by The Wall Street Journal’s Jimmy Vielkind: “Sen. Bob Menendez and Rep. Josh Gottheimer, both New Jersey Democrats, sent a letter Friday saying there should be more examination of how congestion pricing would affect the New Jersey side of the George Washington Bridge. New Jersey Gov. Phil Murphy, a Democrat, said he was considering legal options. ‘We are not happy,’ Murphy said last week. The spat could chill a spirit of cooperation between Murphy and New York Gov. Kathy Hochul, a Democrat who supports congestion pricing . … Murphy asked the Federal Highway Administration to extend the comment period until July 12 … ‘It’s less traffic, less congestion, better air quality,’ Janno Lieber, chairman and chief executive of the MTA, said in an interview. ‘We’re not doing it because we don’t love our neighbors in New Jersey.’ He said both states make unilateral changes within their jurisdictions. ‘No offense,’ Lieber said. ‘But nobody in New Jersey asked Kathy Hochul’s approval when they just raised tolls on the Garden State Parkway and the Turnpike.’” ENVIRONMENT — New Jersey’s environmental justice rule faces legal challenge, by POLITICO’s Ry Rivard: Labor and business groups have filed legal challenges to block key parts of New Jersey’s first-of-its-kind rule to keep pollution out of low-income areas and communities of color. The rule, which took effect in April three years after a 2020 law called for its creation, makes it harder for eight different industries to get permits in places now considered “overburdened.” … One notice of appeal, the first step in a lawsuit, comes from a labor and business group that represents the workers who move dirt and the contractors that employ them. “We collectively are all for doing things to protect the environment and overburdened communities but we’re also not in favor of overburdening policy, and this is just overreaching that went too far, and there is no other recourse,” said Mike Makarski, a spokesperson for the group, the Engineers Labor Employer Cooperative of the International Union of Operating Engineers Local 825. —Murphy lifts vaccine requirements for health care workers —“Senate Judiciary Committee releases six Superior Court judge nominees” —DOH releases regulations that could lead to harm reduction center expansion —“NJ bill would let teens get counseling without parent’s consent. How young is too young?” —Golden: “Is Jersey Shore in danger of becoming ‘hell with the lid off?’”
| | A message from New Jersey Wind Works: | | | | BIDEN TIME | | A JUNIOR TOWN HALL — “Kean ‘town hall’ produces not a single question about Trump,” by InsiderNJ’s Fred Snowflack: “The last time Tom Kean Jr. had a telephone town hall, he was criticized for not telling many people about it in advance. This time, the congressman gave almost 24 hours advance notice for a town hall Monday evening. That was different. Quite candidly, however, the rather abbreviated 45-minute town hall produced no provocative or critical questions. Did anyone other than me think it odd that the CD-7 congressman was not asked about Donald Trump’s latest indictment? Puzzling, no? One does not know how the questions were screened, but the results were a series of supportive comments.”
—“Christie has nowhere to go but up, GOP polls show”
| | A message from New Jersey Wind Works: Now is the time for New Jersey to wholly embrace offshore wind development. This clean and renewable source of energy symbolizes the future for our state. We have established ourselves as a national leader in building home-grown offshore wind that would not only benefit our state, but also our neighbors up and down the east coast. With our hundreds of miles of shoreline and strong wind flows in the Atlantic Ocean, we are taking advantage of our perfect position to build a network of responsibly developed offshore wind projects that can provide renewable and reliable energy that will power New Jersey’s homes and businesses – AND our economy – for years to come. These investments are already creating good-paying union jobs and investing in our economy. New Jersey is going to be a hub for offshore wind, and the manufacturing and assembly facilities being built here will serve offshore wind projects throughout the country. Make sure you tell Trenton leaders that they need to keep investing in New Jersey offshore wind! | | | | LOCAL | | THESE ARE THE LONG DELIVERY TIMES THAT TRY MEN’S SOULS — “'Kick in the stomach.' Warehouses on site of Revolutionary War fight? Allentown's aghast,” by The Asbury Park Press’ Jerry Carino: “Nearly 250 years ago, a Revolutionary War skirmish took place here – one that laid the groundwork for the Battle of Monmouth three days later. Now it’s been targeted as the site for two giant warehouses with dozens of loading docks, the latest industrial encroachment as developers turn the I-195 corridor into one giant truck stop so online shoppers can get their goods delivered ever more quickly. ‘It’s a kick in the stomach,’ [Rick] Jakober said. ‘A development like that here would be the end of what we know as Allentown.’ … Fast forward 245 years. That skirmish field looks much like it did back then, but perhaps not for long. It’s part of Upper Freehold Township, adjacent to the Allentown border. In private hands, the land recently was purchased by a builder, and an application for two warehouses subsequently was presented to Upper Freehold officials. That’s where things stand.”
TOMS RIVEN — “Can Toms River Republicans unite after bitter primary fight?” by The Asbury Park Press’ Jean Mikle: Will all township Republicans unite behind Councilman Daniel Rodrick's bid for mayor after his resounding win in the GOP primary? That's the stated hope of Ocean County Republican Chairman George R. Gilmore, as well as state Assemblyman Gregory P. McGuckin, R-Ocean. But it remains to be seen if all of the GOP will rally around Rodrick, whose campaign was criticized by Gilmore for being antisemitic. It's a charge that the councilman strongly denied, but it's not the first time it's been leveled at a Rodrick campaign. … Gilmore, who backed Geri Ambrosio for mayor in the primary, said Republicans must unite, as state Democrats could decide to funnel some money into the Toms River mayor's race, particularly if the GOP remains divided.” THINGS FALL APART — “Meeting for Montclair superintendent, council members on budget falls apart,” by Baristanet: “A meeting Monday between Montclair Public Schools Superintendent Jonathan Ponds and Mayor Sean Spiller, Fourth Ward Councilor David Cummings and Councilor-at-Large Peter Yacobellis has been postponed by the district due to confusion over who would attend the meeting. The postponement was confirmed by David Cantor, executive director of communications for Montclair Public Schools. Cantor said the district sought clarity after Spiller, who also serves as president of the New Jersey Education Association (NJEA), included NJEA representatives on an email about the meeting. The meeting would have been an opportunity for the township and Montclair schools to explore how the township might help find additional funds for the public school budget. To balance a $5.5 million deficit in the budget, the district cut 31 teaching positions – 22 certificated teachers and nine positions through attrition – along with 34 paraprofessionals employed by the district.” HOWELL GOVERNMENT DESTROYED BY MADNESS, STARVING, HYSTERICAL NAKED — “Was ex-Howell manager fired in retaliation for probe on mayor, ex-police chief, suit asks,” by The Asbury Park Press’ Jenna Calderon: “The former manager of Howell has filed a lawsuit against the township, claiming that he was fired as a means to ‘silence him permanently’ after prompting an investigation into the police chief who he alleges was using township money to facilitate an extramarital affair. The lawsuit, filed by former manager Brian Geoghegan on April 25, accuses the Township of Howell of three counts of violation of the New Jersey Conscientious Employee Protection Act, and requests a trial by jury.” TEXANS NOW TOAST — “Texas scammers conned N.J. town out of $287K in email scheme, feds say,” by NJ Advance Media’s S.P. Sullivan: “Officials in Edison Township were duped into sending more than $287,000 to a group of accused Texas scammers impersonating a local business in an email hacking scheme, newly unsealed court records show. Federal authorities announced last week the indictment of five people accused in a ‘business email compromise’ ploy. They impersonated legitimate companies in order to intercept payments, authorities said. Edison officials declined to discuss the incident, which had not been previously disclosed, saying in a brief statement the ordeal did not end up costing taxpayers money. … The accused scammers were identified by authorities as Bolaji Okunnu, Ayodejo Okunnu, Victor Rubio, Jr., Bougar Robert Linares Soto and Philip Ogbeide, Jr.” —“It's déjà vu as Oakland mayor will again be challenged by councilman in November” —“Should cops be tracked by GPS? [Gloucester County] considers changes after officer’s death” —“A Black Paterson cop is suing the city. This is what her claim says” —"Lawsuit: Kearny HS student attempted suicide after being snubbed from honors class" —“New Atlantic City Housing Authority director faces problems head on” —“Control of Roselle Democrats still up for grabs” —"Murphy & Bob Menendez join Hoboken officials to cut the ribbon on ResilienCity Park"
| | GET READY FOR GLOBAL TECH DAY: Join POLITICO Live as we launch our first Global Tech Day alongside London Tech Week on Thursday, June 15. Register now for continuing updates and to be a part of this momentous and program-packed day! From the blockchain, to AI, and autonomous vehicles, technology is changing how power is exercised around the world, so who will write the rules? REGISTER HERE. | | | | | EVERYTHING ELSE | | ACTUAL GROOMING — “Youth pastor who admitted blackmailing boys into performing sex acts online sentenced to prison,” by NJ Advance Media’s Chris Sheldon: “A youth pastor at a New Jersey church who previously pleaded guilty to blackmailing four underage boys into performing sex acts online was sentenced Monday to 25 years in state prison, officials said. Sean Higgins, 32, of Palmyra in Burlington County, pleaded guilty in January to four counts of endangering the welfare of children, but he was not charged with having physical contact with his victims, and none of the charges involved members of his church’s congregation or students at a school where he worked, according to a statement from the Burlington County Prosecutor’s Office. Higgins committed the crimes in 2020 while serving as the youth pastor and music leader at Harbor Baptist Church in Hainesport, and he also worked as a teacher at the Harbor Baptist Academy, a private K-12 school that is housed in the same facility, the office said.”
—“Boston serial rape suspect, attorney Matthew Nilo, to be released”
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