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Cities Waste State Funding

New Jersey State Senators Steven Oroho and Marcia Karrow expressed disbelief and frustration with the Corzine administration for its decision to grant more than $80 million in so-called “Special Municipal Aid” to three cities that have no stated plans to make sacrifices next year that many other communities are being forced to make during this recession. The aid was granted to Camden, Patterson and Bridgeton.
“These three cities argue that they qualify as ‘distressed’ when they have not taken the necessary steps to control costs as Newark and Trenton have recently done as well as countless smaller communities throughout the state,” Senator Oroho said.
“Governor Corzine -- rather doing what he pledged to do in his budget proposal and demand a fair and equitable distribution of sacrifice -- is giving these towns a pass,” said Senator Karrow. “As far as I am concerned, every local official who has spent countless hours trying to figure out ways to reduce the tax burden should be outraged and crying foul.
“We all have to pitch in,” Senator Karrow said. “It’s not fair to ask taxpayers who are facing layoffs or cutbacks in local services to pay so that residents of other communities can avoid making sacrifices.”
Newark and the state of New Jersey are imposing furloughs on city workers. School districts across the state are cutting hundreds of teaching positions. Camden, Paterson, and Bridgeton today were awarded special municipal aid grants in the amounts of $56 million, $27 million, and $1.8 million, respectively, without being required to cut the size of their governments, impose furloughs or make cuts in spending in other ways. At today’s hearing, not one member of the Local Finance Board publically asked questions of city officials before approving the aid awards. Local Finance Board members are paid $12,000 a year and are eligible for state health benefits. Board members typically meet once a month.

City's Mayor Is Useless

From Monica Yant Kinney at the Philadelphia Inquirer:

Dana Redd recently unveiled a slick new Web site - http://unitedforchange09.com - and a catchy R&B campaign ditty in her quest to be the next mayor of Camden.
Redd seems like a smart, capable public official, but I'm not feeling the United for Change vibe. And it's not because she totally ripped off Barack Obama's swooshy campaign logo, which, while not illegal, is kind of lame.
For starters, there's the fact that Redd is a state senator, vice president of Camden City Council, and the latest golden girl of the Camden County Democratic Party, which is on the verge of dominating South Jersey the way the communists control China.
There's no shame in being a machine candidate, but if that's who you are, embrace it. Don't pretend to be a change agent who'll shake up the system.
The bigger issue is just how ludicrous it is that anyone is running to be mayor of Camden.
The city has been under state control since 2002, rendering its mayor a glorified bobblehead. She gets a $103,000 salary, a social schedule and a swivel chair. Major decision-making is left to outsiders.
In exchange for a pot of cash to aid the ailing city, Camden has seen its mayorship transformed into a legally sanctioned low-show job that makes a mockery of self-rule. If Gov. Corzine really wanted to save a few bucks, he'd mothball the office.

To read Monica Yant Kinney's entire column click here.

Let's Get NJ Working!

New Jersey State Senator Marcia Karrow (R-Warren/Hunterdon) expressed her deep concern today after New York announced that its unemployment rate is significantly lower than New Jersey's.
"It pains me to see fear grip New Jersey families faced with the loss of jobs and income,” Karrow stated. "Governor Corzine has to stop touting his alleged ‘successes’ and start leading the way in asking why New Jersey has proportionally more workers out of work than neighboring states do. Then we need him to lead on coming up with a far more comprehensive plan for diversifying our economy and reviving the entrepreneurial culture that once made New Jersey an economic powerhouse.
“A good first step: Repeal bureaucratic red tape that is preventing job growth in New Jersey. Corzine should rescind increases in home energy taxes, roll back newly increased fees on motor vehicles and insist he will not sign a budget until ‘affordable’ housing rules that discourage job creation are ended."
Yesterday the New Jersey Department of Labor and Workforce Development released state unemployment figures which showed the rate surged in February to 8.2 percent from January's 7.3 percent. This is higher than New York's at 7.8 percent, Pennsylvania's 7.5 percent and Delaware's 7.4 percent. It also marks the first time since October 2006 that the state unemployment rate was higher than the national rate.
"Until Democrats took control in 2002, New Jersey had a rich and proud history of being the economic powerhouse of the Northeast," Karrow continued. "Governor Corzine's failed policies and misplaced priorities have strangled New Jersey businesses, suffocated New Jersey entrepreneurs and hurt the New Jersey middle class. We need a drastic change of course if we are to recover."

Joisey Jobless Climb

From Eli Segall at the Associated Press:
New Jersey's jobless rate continued to climb last month, surpassing the national rate for the first time in two years and keeping the state firmly entrenched in the global recession, according to analysts.
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February's unemployment rate of 8.2 percent was nearly a full percentage point above January's rate, according to the state Department of Labor and Workforce Development, which released the figures Wednesday.
It was the 13th straight month New Jersey shed jobs, pushing the state's jobless rate just above the national rate of 8.1 percent.
"These are dismal numbers," said Rutgers University Professor Joseph Seneca, of the Bloustein School of Planning and Public Policy. "New Jersey's economy is fully engulfed by the national recession."
Job losses were heaviest in professional and business services, manufacturing and construction, according to the state. Education and health services had the only significant job growth, but most industries shed workers.
A soaring number of unemployment claims has helped empty the state's unemployment insurance fund, a key source of help for jobless New Jerseyans. It's also been depleted over the years by lawmakers raiding the fund for other programs.
State Labor Commissioner David Socolow said the state has borrowed $185 million this month from the federal government to make its unemployment payments. A provision in the federal stimulus package makes the loans interest free, he said.
Corzine taxes and spend, taxes and spends, taxes and spends and things get worse and worse and worse.

Corzine Seeks Tax Hike

New Jersey State Senator Steve Oroho, a member of the Senate Budget and Appropriations Committee, issued the following statement regarding Governor Corzine’s retreat from a “temporary” elimination of the property tax deduction for every taxpayer.
“I’m relieved that the governor has partially retreated from a remarkably bad policy decision that threatened the middle class in a state with the highest property tax burden in the nation. The 10-day conversion took place only after long-suffering middle class residents made it known loud and clear that this governor could no longer ignore their needs.
“Sadly, the governor still hasn’t gotten the message that no state should raise taxes during a recession. In 2006, the governor told Gannett News Service that New Jersey’s high income taxes made the state ‘less attractive’ than Connecticut and put it at a ‘competitive disadvantage’ to Pennsylvania and Delaware. Now the governor wants to raise income tax rates to rates higher than almost every state in the nation. He also still plans to take away the property tax deduction for people, making over $150,000, who are also struggling to keep their homes during this economic crisis.
“The governor should listen to his own words. A recession is the wrong time to make New Jersey less attractive and uncompetitive to neighboring states that have been stealing our jobs for the last three years. Last year alone, 58,000 people left the state and took their incomes with them. Governor Corzine decision to raise the income tax will only accelerate the exodus of our friends and neighbors, and threaten the jobs and financial security of those who remain.
“Governor Corzine should be honest with the people of New Jersey and tell them what the true cost of his budget will be in lost jobs and future tax increases. If there were ever a time to finally end the waste, fraud and abuse in New Jersey government, it’s now. ”

Corzine Assaults Middle Class

New Jersey Senate Republican Whip Kevin O’Toole of Cedar Grove wonders if Governor Jon Corzine has ever totaled the cost of the burdens he has loaded onto the backs of New Jersey’s middle class during his three years in office.
“This year, Governor Corzine wants to raise taxes by more than $420 million by eliminating the middle class tax deduction for property taxes. He wants to raise the costs of owning a car or boat or motorcycle by as much as $60 million by raising fees charged by the Department of Motor Vehicles. He plans to raise sales taxes on some products by $40 million.
“Last year, he raised tolls on the most popular highways in the state, making it more expensive for middle class residents to get work each day and for small businesses to create jobs. He drastically cut property tax rebates in 2008, and he wants to cut them even more this year in a state where average homeowner pays $7,045 in property taxes, the highest rate in the nation and the highest rate this state has ever seen. All this during the term of a governor who ran on the promise of lowering property taxes.
“In his budget message yesterday, he called for a nearly $400 million increase in payroll taxes, a move that will drive away even more middle class jobs at a time when New Jersey’s unemployment rate is higher than every neighboring state’s. It’s now 7.6 percent while the rate was 7 percent in New York and Pennsylvania and 6.7 percent in Delaware. Unemployment in New Jersey was 5.8 percent when Jon Corzine took office.
“This governor’s legacy will be an unprecedented impact it will have on lowering the quality of life for middle class New Jersey. Higher taxes. Fewer jobs. Diminishing opportunity, and an increasingly unaffordable cost of living. Governor Corzine has abandoned the middle class taxpayer.”

Wacky Jon Strikes Again!

Here's the latest pick-your-pockets scheme from Joisey's wacky Governor Jon Corzine: The former Wizard of Wall Street actually wants to eliminate our real estate tax deduction on our state income tax. In other words, he wants to prevent us from deducting our outrageous local property tax when we file our state income tax forms.

Here's what Senator Jennifer Beck, (R- Monmouth, Mercer) has to say about this idea:
“Governor Corzine’s proposal to eliminate the property tax deduction from state income taxes is offensive. This is nothing more than a thinly disguised income tax hike on every homeowner in New Jersey who is not a senior citizen.

“This tax hike is the capstone of seven years of relentless Democrat tax and fee increases on the people of New Jersey. These increases have crippled our State and ruined our economy. As in the past, we will work to identify common-sense budget savings over the next several months.
“Governor Corzine says he is protecting vulnerable middle-class tax payers, but this is simply not true. Middle class families will be hit by not only the elimination of the property tax deduction and rebate checks, but with skyrocketing property taxes as State Aid to municipalities is decreased.”

NJ: It Just Gets Worse

Higher and higher property taxes (via an end to tax rebates). Higher payroll taxes. No cut in the bloated state employee rolls. Frozen or reduced aid to schools or municipalities (more taxes!).
The news is all bad from wacky Jon Corzine's proposed budget that the Governor is set to unveil today.
Of course, Corzine will preserve rebates for "low income" residents. As always, Corzine is out to punish those who are productive and pay taxes and reward those who aren't productive and pay no taxes. And even in the midst of a total economic meltdown (with businesses closing down or fleeing the state in droves) Corzine continues to punish the private sector.
Democrat Senate President Dick Codey says this is the worst economic scenario he's seen in 35 years in the legislature. Hey, Codey: After all that time in Trenton if it's so bad why don't you pack up and get the hell out of town? You've earned enough at our expense and piled up enough money in your pension to pack it in. What are you waiting for?
As for Corzine, we've pretty much given up any hope that this old-line liberal will ever come to his senses. His elitist tax-and-spend mentality is hopelessly out-of-touch with current realities.
New Jersey needs smaller government, fewer regulations, consolidation of government agencies and local government entities, an end to waste and mismanagement, lower taxes and a new, solid pro-business climate.
Here's what Christopher Christie plans to do:
It will be a priority in the Christie administration to reduce New Jersey’s gross income tax during Christie’s first 4 year term as Governor. Christie will seek two types of income tax reductions: One will be an “across the board” rate cut for all taxpayers. The other will be an additional cut or credit for those taxpayers who derive business income from New Jersey-based small businesses. These taxes will be reduced to encourage investment in and expansion of New Jersey-based small business, and make our tax policies more competitive with the other states in the region that have better private sector job growth.
And Christie also plans to reduce the corporate business tax rate, freeze all new agency rules and regulations to eliminate red tape, eliminate agency funding from fees and fines and mandate funding "on budget" from the general fund, eliminate special interest giveaways and nurture and expand the state manufacturing base.
Christie's been one tough prosecutor and he will be an equally tenacious Governor. New Jersey's culture of corruption will be put on notice: Clean up you act or wind up in jail.
New Jersey will face one of the most critical decisions in its history this November: more waste, corruption, mismanagement and tax and spend or a new era of positive action under a new, courageous, independent leader committed to growth and reform.
Avanti!

Christie Soars Over Corzine

The latest Farleigh Dickinson poll is just out in New Jersey and it shows GOP Challenger Chris Christie soundly defeating Joisey's wacky Governor Jon Corzine in a November contest:

Corzine trails former U.S. Attorney Chris Christie by 32%-41%. In that heat, 73% of Republicans line up behind Christie, while just 55% of Democrats line up behind Corzine. . . .

Christie’s name recognition continues to climb, from 40% in September to 44% in January and to 57% this month. Just as important, 30% have a favorable opinion of him against 6% whose view is unfavorable, a five-to-one ratio.

Corzine Legacy: Jobs Lost

New Jersey State Senator Marcia Karrow, R-Warren and Hunterdon, issued the following statement after the New Jersey Department of Labor reported that the state’s unemployment rate, already higher than neighboring states, surged to 7.3 percent in January from 7.1 percent in December. In addition, the department updated its figures to show that the state lost 22,700 more jobs in December than it earlier reported:
“Governor Corzine’s legacy will be unemployment and economic stagnation. While governors from other states steal our employers, Jon Corzine continues to severely short-change economic development efforts and shackle business with taxes and nuisance regulation. As a result, New Jersey was hemorrhaging private-sector jobs years before the current economic crisis. Incredibly, media reports indicate that the governor is again planning new tax hikes and budget gimmicks that will only drive more jobs and entrepreneurs from this state.”
The Department of Labor reported that the state lost 86,700 jobs in December, up from an earlier report that said employers eliminated 63,000 jobs. The financial sector cut 13,100 jobs in December while construction companies eliminated 14,600 workers, the Labor Department reported. Government employment grew by 3,000 workers, primarily hires by local government.

NJ Rebates No More?

In New Jersey under wacky Jon Corzine things just get worse and worse.
Now the state with the nation's highest taxes may be facing yet another tax hike and elimination of the property tax rebate program - the last minuscule piece of help in the face of soaring taxes.
Yes -- you heard me right: elimination of the rebate altogether.
Amidst all this the Assembly Budget Chair has gone and made a fool of himself -- vowing to fight to the death for the rebates one day and then completely backing off the next.
This is what wacky Jon does to people, including leaders in his own party. He makes them tongue-tied.
From Angeli Delli Santi of the Associated Press:
On Wednesday, New Jersey Assembly Budget Committee Chairman Louis Greenwald, D-Voorhees, said he would "fight to the death" to avoid eliminating or reducing property tax rebates in New Jersey, where the average homeowner pays $6,800 a year in property taxes. On Thursday, he backed away from that statement, saying the budget debate would continue in the months ahead. "I want to make sure money gets in the people's pockets," Greenwald said after meeting with the governor Thursday. "As much of that as we can preserve through the rebate program, even though I don't like the program in and of itself, it puts money back in people's pockets."
And here's more from Politicker NJ:
"The fact is that Lou Greenwald tried to score cheap political points by coming out in favor of keeping property tax rebates," said Camden County GOP Chairman Richard DeMichele, Jr. "But Greenwald didn't clear his comments with the real boss in town, Jon Corzine, and when Corzine found out, suddenly Greenwald could not be found."
"As Assembly Budget Chairman Lou Greenwald has been reckless and irresponsible in making New Jersey unaffordable and unfriendly to small business," DeMichele added. "Lou Greenwald won't stand up to Jon Corzine, and he won't stand up for South Jersey taxpayers."

Christie Unveils Plan

From Chris Megerian in the Newark Star-Ledger:
Republican gubernatorial candidate Chris Christie outlined his plan for economic growth . . . promising to cut taxes and fees while playing a hands-on role in attracting new businesses.
Front and center was his proposal to create a "New Jersey Parternship for Action," an umbrella organization to assist companies in the state. Led by the new lieutenant governor, it would interface with business leaders to streamline regulatory and relocation efforts.
"This will give business a seat at the table in my cabinet," Christie said.
The former U.S. attorney also proposed a "Red Tape Review Group" to assess regulations currently in place.Christie downplayed the role of the global economic recession in the state's financial woes, saying problems existed before the current crisis while laying the blame squarely at the feet of Gov. Corzine."The governor is going to say, 'It's not my fault,'" Christie said.

Corzine Fiddles; Joisey Sinks

Just a few quick facts, folks:
--New Jersey has fallen far behind other states in nearly all economic indicators:
In 2003, New Jersey was ranked 33rd for the business-friendliness of its tax code. Now, New Jersey has the worst. (The Tax Foundation: “Business Tax Climate Index,” 10/30/2008)
--Based on the Business Tax Index 2008, New Jersey is the worst state in which to start a new business. (Small Business and Entrepreneurship Council: “Business Tax Index 2008: Best to Worst State Tax Systems for Entrepreneurships and Small Business,” December 2008)
--New Jersey has the third most oppressive state government to free enterprise and consumer choice. (Pacific Research Institute: “U.S. Economic Freedom Index: 2008 Report,” September 16, 2008)
--In the Northeast, New Jersey ranks last in attracting new businesses and providing an environment for growth to existing firms. (Beacon Hill Institute:“Eighth Annual State Competitiveness Report,” 11/19/2008)
--According to the Business Tax Index 2008, New Jersey has the worst state tax system for entrepreneurs and small businesses. (Small Business and Entrepreneurship Council: “Business Tax Index 2008: Best to Worst State Tax Systems for Entrepreneurships and Small Business,” December 2008)

Beck Slams Gov. Re: Fox

New Jersey's super-savvy State Senator Jennifer Beck (pictured) on the re-appointment of Jeanne Fox to the New Jersey Board of Public Utilities (BPU):

“Governor Jon Corzine’s decision to re-appoint Jeanne Fox to the BPU is an appalling slap in the face of New Jersey’s taxpayers.
“President Fox opened a secret $83 million bank account that was accessible only to her and one other employee. The account collected millions of dollars from New Jersey energy consumers and then distributed the monies to former BPU employees for clean energy programs.
A state audit conducted by the Department of the Treasury found that Jeanne Fox exercised ‘no oversight of how the BPU ratepayer money was spent and that BPU kept poor records of the secret account.’ Another state audit conducted by the non-partisan State Auditor found that the BPU kept no records of: ‘how the BPU evaluated $2.7 million worth of grants given out in 2003 when documentation must be retained for seven years, inadequate controls for giving grants to former BPU employees, insufficient records to justify Payments to vendors including for hours worked and travel expenses and no tax forms issued to 17 vendors in 2004 and 2005 who were paid more than $600, according to Internal Revenue Service requirements.’
“When initially asked about the secret $83 million bank account Jeanne Fox stated that an Assistant Attorney General had signed off on the creation of the account. Later she had to issue a retraction stating that she had ‘misspoke.’ ”
“The secret account was opened in Wachovia bank. A bank in which, coincidentally, one BPU commissioner owned hundreds of thousands of dollars of stock.”
This is exactly the type of abuse that the Governor promised to end during his inaugural address. Yesterday, the Governor of New Jersey stood before the people of New Jersey and stated that ‘I call on each of you, Republicans and Democrats alike; to recognize that today a turning point is at hand. We must turn away from the era of spending and borrowing beyond our means … once and for all.’ Yet here he is re-appointing the poster child for government waste, fraud and abuse. I am convinced based on her record of a secret account, politically motivated policies, patronage hires and poor administration that Jeanne Fox is exactly the wrong person for to be determining New Jersey energy policy and setting rates for New Jersey taxpayers.”

Daily News' Most Popular

Thank you for making us today's most-read column in the Philadelphia Daily News opinion pages.
It's quite an accompliahment, considering these two factors:
1) Another columnist in the Daily News today (who shall remain nameless) actually set out to write the most-read column of the day by picking a sexually-related topic, and;
2) Our op-ed piece didn't even focus on Philadelphia. Indeed, it is rare for a piece about New Jersey to become the day's most widealy read column.
BTW: The column was also featured at Lucianne Goldberg's popular web site.
If you have already read the op-ed you can read it now by clicking here.

The Jersey Bounce

Let's face it - sooner or later the Republican Party will rebound. It will find its voice and the tide will begin to turn. The only question is where, when and how.
When the answer arrives, I'm thinking it's going to surprise a lot of people. The resurgence won't begin exactly where you might expect. And the timing and personalities who trigger it are likely to defy expectations as well.
The turning point may be right here in our own backyard, sooner than you think. And it may be arrive in a rather unlikely personality. . . .
To continue reading my column from today's Philadelphia Daily News click here.

Power Tables

In its weekly feature "Power Tables" The Wall Street Journal details where the business elite are eating.
This week the Journal looks at the chic Cafe Boulud in Manhattan where Barbara Walters, Mike Nichols, Dan Aykroyd and Bill Cosby are frequent guests. The most coveted tables at this pricey cafe owned by chef Daniel Boulud are along the windows: tables 10, 20, 30 and 40.
And guess who prefers (and is usally seated at) table 10, 20 or 30? Why it's Joisey Governor Jon Corzine, the same guy who professes to care so deeply about those who are just getting by economically. When he stops by Cafe Boulud this jovial man of the people enjoys Italian wines such as Brunello.
No domestic wines for this guy. And forget those de classe Joisey restaurants as well. For him, it's strictly the upper east side of Manhattan all the way.

'Leading' The Nation

In January New Jersey was responsible for a whopping 56% of the nation's job loss.
Under wacky Jon Corzine and the all-Democrat state legislature New Jersey continues to drift deeper into debt, borrowing more and attempting to push forward with relentless rounds of toll and tax hikes. At the same time the state is bleeding jobs, businesses and residents. To say that New Jersey is not a business friendly state would be an understatement.
State spending must be drastically reduced now if there is to be any chance to prevent total economic collapse. Call your state legislator now and demand spending cuts and no increases in tolls or taxes.

And He's Off . . .

Shortly after he gave his dismal budget address wacky Jon Corzine left Joisey and flew off to Ohio to campaign for Hillary Clinton.
Corzine is still insisting that Clinton will be his party's nominee. And he still believes that his heavily-lambasted NJ toll increase plan may survive in some form.
We do hope that Corzine had a great time in Ohio. Since he was closer to his home state of Illinois he must have felt a lot better than he did here in Joisey where his budget address to the state legislature did not garner any interruption for applause.