Wednesday, February 14, 2024

Busting a tax cap

Presented by McDonald's: Matt Friedman's must-read briefing on the Garden State's important news of the day
Feb 14, 2024 View in browser
 
New Jersey Playbook

By Matt Friedman

Presented by McDonald's

Good Wednesday morning!

Some high-ranking New Jersey legislators are seeking to loosen New Jersey’s cap on tax levies for the state’s 21 counties.

The change is in a  simultaneously introduced bill by Senate Budget Chair Paul Sarlo, Majority Leader Teresa Ruiz, Assembly Budget Chair Eliana Pintor Marin and Assemblymember Verlina Reynolds-Jackson. It appears slight, but any tinkering with the cap on the tax levy amounts to a lot of money.

Since the enactment of the 2 percent tax cap under former Gov. Chris Christie in 2010, New Jersey counties have had to use two different formulas to calculate their levies: The 2010 law, and a law from the 1970s that allows counties levies to increase by only up to 2.5 percent or a figure based on inflation, whichever is lower. .

In a statement, Sarlo and Ruiz said the bill “does not change the existing county budget cap formulas or calculations in any way and does not impose any tax increase” and that the law contains provisions that are “inconsistent or even contradictory in terms of which calculation has precedence.”

“This legislation finally addresses this inconsistency by clarifying that counties can choose either calculation in order to continue providing high quality services to their residents and still adhere to the cap,” they said

But according to the bill’s summary, county governments under current law are required to choose whichever tax levy calculation is lower. If this measure passes, they’d have the option of choosing the higher number. The way I read it, that means the cap could effectively be increased from 2 percent to 2.5 percent, if inflation was at least that high. The two cap laws also include different sets of exemptions, so counties could choose the law that gives them the most flexibility. (I should note that an increased tax levy doesn’t necessarily mean individuals are all paying more.)

This wouldn’t apply to municipalities and schools, though there was a stalled effort to do that in 2022. John Donnadio, executive director of the New Jersey Association of Counties, said his organization is for the change. County governments , he said, have faced big cost increases, from increased costs related to broadening workers comp laws to the doubling of food costs at county jails.

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

QUOTE OF THE DAY: “"(Tibet) has been China's territory since ancient times, and its affairs are purely internal for China.” — China Consul General Huang Ping in a letter to Belleville Mayor Michael Melham asking him not to raise the Tibetan flag at town hall

 HAPPY BIRTHDAY — Dennis Culnan Sr., Rich Locklear, Jim Logue

WHERE’S MURPHY? — Nothing on his public schedule

 

A message from McDonald's:

From 2021 to 2022, the McDonald’s System contributed over $830 million to New Jersey’s economy, supporting over 17,000 jobs statewide. McDonald’s presence in local communities throughout New Jersey generated nearly $150 million in federal, state and local tax revenue, providing funding for public schools, infrastructure, parks and more. Learn more about McDonald’s impact on local communities in New Jersey and nationally by visiting https://www.mcdeconomicimpact.com/state-impacts/nj.

 
WHAT TRENTON MADE


ATTENTION TO DEFICIT DISORDER — “New Jersey faces steep deficits in coming years, group warns,” by New Jersey Monitor’s Nikita Biyrukov: “Under a budget that includes no new government services, the state would face multi-billion-dollar deficits even under the most optimistic projections drafted by a budget group at the Sweeney Center, located at Rowan University. The center was founded by former state Sen. Steve Sweeney. … The report made forecasts using a budget that assumes the state will fully fund state school aid, continue making full pension payments, fund the StayNJ property tax relief program, and annually invest $500 million into NJ Transit starting this July. It assumes most costs will increase by 3% annually, or 5.1% for certain medical expenses. ‘There are certain things that the state is committed to by constitution or by law. Medicaid is increasing, school aid is increasing,’ said Richard Keevey, a former state budget director and comptroller. ‘We can argue about whether transit is necessary, but the numbers to me say that we’re facing significant shortfalls, and we should not exacerbate that by starting something new.’”

PRISONS — “Is NJ flouting law on prisoner isolation? Recent suicides raise questions,” by NJ Spotlight News’ Colleen O’Dea: “Two recent suicides at the New Jersey State Prison have led to renewed questions over whether the state Department of Corrections is following the three-year old law that limits the time inmates can be held in what used to be called solitary confinement. A 36-year-old man, said to be suffering from mental illness, died by suicide last month, according to sources familiar with the corrections system who spoke on condition of anonymity. … The inmate who died by suicide had been in isolated confinement for almost two years, sources said. … Details about the other suicide are unknown. Terry Schuster, the state’s corrections ombudsman, said both occurred in the last several months and both were of individuals held in restorative housing units, a form of isolated confinement used as a disciplinary measure, at New Jersey State Prison”

SAVE SNOW DAYS — “Why doesn’t N.J. let kids take remote classes on snow days like NYC schools?” by NJ Advance Media’s Rob Jennings: “Dozens of schools were closed or had delayed openings Tuesday after 6 to 12 inches of snow was forecasted to fall across the northern half of the state. For some districts, the snow day will mean a shortened spring break or a day added on to the end of the school year. While learning from home was allowed in New Jersey during the COVID-19 pandemic via an executive order from Gov. Phil Murphy, state law continues to prevent school districts from making the switch on days when snow or other factors prompt schools to close. Under current law, public school students must be in classrooms for the day to be counted toward the minimum 180 days of instruction that are required in New Jersey. The law does carve out an exception that was used during the pandemic. Remote learning may be offered when schools are closed more than three consecutive school days due to a declared state of emergency, or public health emergency.”

—“Public defender’s office urges legislators to reform ‘draconian’ parole system” 

—“A mess comes and goes, but politics lasts forever” 

 

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BIDEN TIME


HUSH LITTLE WITNESS DON’T SAY A WORD — “New Menendez details: A diamond ring, a ‘James Bond’ phone and Covid tests,” by The New York Times’ Tracey Tully and Benjamin Weiser: “Now, prosecutors say a diamond engagement ring for the senator’s future wife, Nadine Menendez, was also part of the elaborate bribery scheme — and a source of infighting between co-defendants who are expected to stand trial together in May. Wael Hana, a longtime friend of Ms. Menendez’s who is also charged in the alleged conspiracy, attempted to cheat her out of the full value of the ring, according to court documents filed late Monday by prosecutors in Manhattan. In doing so, Mr. Hana, an Egyptian-American businessman who founded a halal meat company that prosecutors say was used to funnel bribes to the Menendezes, threatened to derail plans for the senator to assist the government of Egypt — part of the complicated plot he is accused of. … Prosecutors noted that Mr. Menendez contacted mayors in New Jersey during the pandemic, in late 2020 and early 2021, to ask them to authorize use of a specific laboratory — which at the time was paying Ms. Menendez — to perform Covid-19 testing. Taken together, prosecutors said, these details amount to “substantial evidence that Menendez did in fact know about the corrupt quid pro quo.””

THE TAYLOR HAM, I MEAN SWIFT DEFENSE — In their latest defense filing, Sen. Menendez lawyers Adam Fee and Yaakov Roth are trying to shake off one of the senator’s charges by arguing his alleged call to former state Attorney General Gurbir Grewal to get him to back off the prosecution of an associate of co-defendant Jose Uribe in exchange for a Mercedes for Menendez’s wife does not count as an official action. Under the McDonnell corruption standard, bribes have to result in official acts. Menendez, as a federal official, has no actual authority over state matters, they argue. Menendez has argued that his prosecution is politically motivated over bad blood from when he beat federal prosecutors in his 2017 minstrel.

“At bottom, the government’s theory is that the Indictment is sufficient because it alleges that Senator Menendez agreed to use his political connections and cachet to influence a state matter. That is not the crime of federal bribery. It is akin to paying any prominent person (say, Taylor Case Swift) to influence a state proceeding. She certainly has influence (perhaps more than a Senator!), and paying her to intercede may feel unethical, but since it does not involve the corruption of any official power, it does not amount to bribery. So too here.”

Menendez’s attorneys know he’s in trouble and that if he loses his May trial he’ll be in for a cruel summer. To the senator’s critics, that would be karma.

 

A message from McDonald's:

McDonald’s is an economic engine for the state of New Jersey, contributing over $830 million to our state’s economy, directly employing nearly 13,800 New Jerseyans and supporting an additional 3,200 jobs statewide. It’s also an engine of opportunity: 1 in 8 independent McDonald’s operators in New Jersey began their careers as restaurant crew members, generating wealth for their families and local communities. We are proud to support New Jersey through public schools, parks and more from the nearly $150 million in federal, state and local tax revenue generated by the McDonald’s System’s activities. And thanks to the generosity of McDonald’s customers and owner/operators, the $660,000 raised through Ronald McDonald House Charities in 2022 provided over 6,600 overnight stays for families with children receiving medical care in New Jersey. Learn more about McDonald’s impact on local communities in New Jersey and nationally by visiting https://www.mcdeconomicimpact.com/state-impacts/nj.

 

KEAN AND THE SPEAKER — U.S. Rep. Tom Kean Jr. is hosting a $1,000 per head fundraiser with House Speaker Mike Johnson next Wednesday, according to an invitation to the event, which will take place at an undisclosed address in Springfield. Kean used to raise money with former House Speaker Kevin McCarthy, so there’s nothing unusual about this. But his Democratic opponent Sue Altman will likely certainly use this and other things, like Kean’s vote to impeach Homeland Security Secretary Alejandro Mayorkas, to emphasize that for his talk of bipartisanship, he’s a team player for the House GOP.

—“Bhalla and Kim campaigns in early talks about teaming up against HCDO slate, insiders say

— “Democrats aren’t holding the ‘sins of the father’ against Rob Menendez, internal poll shows

—“GOP Senate candidates fight over chinese company claims” 

—Golden: “For Tammy Murphy, it’s stay calm and carry on” 

—“Increasingly crowded GOP field forms to take on Norcross in NJ-1” 

—“GOP Senate candidates fight over Chinese company claims” 

 

DON’T MISS POLITICO’S GOVERNORS SUMMIT: Join POLITICO on Feb. 22 to dive into how Governors are wielding immense power. While Washington remains gridlocked, governors are at the center of landmark decisions in AI and tech, economic development, infrastructure, housing, reproductive health and energy. How are they setting the stage for the future of American politics, policies and priorities? How are they confronting major challenges? Explore these questions and more at the 2024 Governors Summit. REGISTER HERE.

 
 
LOCAL


INFLUENCE PEDALING — “Hoboken councilman aiming to regulate e-bikes starts Uber Eats gig as research,” by The Jersey Journal’s Teri West: “Hoboken Councilman Paul Presinzano has been in his new job as a city legislator for less than two months and has already taken on another one. He geared up for it around lunchtime Monday, with his new helmet, vest, bag and, most importantly, brand new $450 e-bike. The councilman who had for months campaigned, in part, on a promise to protect pedestrians on sidewalks from e-bikes, had, undercover boss style, decided to try out e-bike delivery for himself. … He describes the effort as the best way to research what’s possible for Hoboken as he simultaneously works to push through an ordinance that would require all delivery workers using e-bikes to register with the city and wear a reflective bib whenever they’re working.”

AC — “Atlantic City Housing Authority knew it would move families a month before it notified tenants,” by The Press of Atlantic City’s Michelle Brunetti Post: “The Atlantic City Housing Authority has known for more than a month it would temporarily relocate 19 families from Stanley Holmes Village this week to fix sewer pipes, an official said Monday night, but didn't tell residents until Thursday. The families had to be checked in to the Claridge Hotel by midnight Monday, according to a notice dated Feb. 8. They had to get themselves to the Claridge with clothes and cleaning supplies, and no provision was made for cooking or pet care. "That was an administrative decision. I've known at least a month," said Judy Grate, resident services supervisor at the Housing Authority, when asked why residents weren't given more time to prepare for the relocation.”

NEEDLES — The South Jersey AIDS Alliance and Atlantic City have settled a years-long lawsuit over the city’s only needle exchange, Oasis, one of the largest of its kind in the state. The city passed an ordinance in 2021 to shut down the facility run by the Alliance, which provides clean needles to drug users among other services, leading to a September 2021 lawsuit seeking to keep it open. The settlement, approved by Superior Court Judge Michael Blee last week, permanently bars the city from enforcing the ordinance that sought to close the needle exchange and the city “acknowledges that it has no authority to terminate the operation” of the needle exchange in its current location, according to the settlement. If the city makes a land use change that could impact Oasis’ operations, the city must give a 10 day advance notice. Both sides must meet if they want to relocate the facility to make a "good faith" effort to find a mutually agreeable area in the city.

During the lawsuit Gov. Phil Murphy signed a bill into law that scrapped the requirement that a municipal ordinance be needed to authorize and close a facility, giving those powers to the state Department of Health. City officials argued that the new law invalidated their efforts to shut down the facility and tried to dismiss the lawsuit, which was unsuccessful. Oasis is authorized to continue operating until the end of 2025 when it can extend its registration with the state, according to the settlement. Read the settlement here. —Daniel Han

 

YOUR GUIDE TO EMPIRE STATE POLITICS: From the newsroom that doesn’t sleep, POLITICO's New York Playbook is the ultimate guide for power players navigating the intricate landscape of Empire State politics. Stay ahead of the curve with the latest and most important stories from Albany, New York City and around the state, with in-depth, original reporting to stay ahead of policy trends and political developments. Subscribe now to keep up with the daily hustle and bustle of NY politics. 

 
 

—“Could soccer be the key to success for Paterson's Hinchliffe Stadium?” 

—“Jason Love, Bergen's first Black chief of detectives, retires after 30 years with county” 

—“Palisades Park to discuss future of suspended borough administrator at meeting” 

—“Joseph DeShan, Cinnaminson teacher who fathered teen's child as priest, loses certificates” 

—“5 Bayonne cops faced major discipline in 2023, 4 resigned; 1 had 4 cases against him” 

EVERYTHING ELSE


SO YOU’RE SAYING THE MARSHLAND IS FILLED WITH TRADITIONAL BRITISH CUISINE? — “A New Jersey stadium beside toxic marshland is set to host the World Cup final,” by The Independent’s Bevan Hurley: “To be fair to New Jerseyans, the widespread derision was largely directed at MetLife Stadium, a ground unloved by sports fans and concertgoers alike for its unreliable public transport links and less-than-glamorous location. The East Rutherford stadium is situated next to a marshland that was a dumping ground for toxic chemicals for decades, amongst factories, endless concrete car parks and America’s second largest mall.”

THE INCREDIBLE, EDIBLE STATE — “See how New Jersey narrowly escaped being known as 'the Egg State',” by The Record’s David M. Zimmer: “In 1950, New Jersey had about 1.7 million acres of farmland, or about 1.1 million fewer than in 1900, according to U.S. census records. Less than one-fifth of the population lived in rural areas. The biggest moneymaker in state agriculture was the egg. If anything should be on the license plate, egg farmers and officials with the New Jersey Poultry Council at the time said, it should be the egg. Suggestions included ‘the Egg State’ and ‘Home of the Jersey Egg.’ Lobbyists also wanted the figure of an egg on every license plate."

 

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