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7-3-06 Roberts, Codey & Corzine still not on same page

STAR LEDGER LIVE on line

Monday, July 03, 2006 

 

Shutdown Day 3: No sign of break in budget crisis

Today is the third day of the government shutdown ordered by Gov. Jon Corzine, and the first business day. More than half of state workers will be off the job; motor vehicle offices will be closed; state courts will handle only urgent matters. Meanwhile the governor and legislative leaders are no closer to agreement on a new state budget.

 

If the stalemate continues, state parks and beaches will close Wednesday. The Atlantic City casinos also will be forced to close unless a court intervenes. So will the state's racetracks. Without a budget, the state has no authority to pay lifeguards and park rangers or the inspectors who must be present for casinos and racetracks to operate.

 

Corzine remains locked in a stalemate with Assembly Speaker Joseph Roberts, a fellow Democrat who is leading the charge against the governor’s plan to raise the sales tax from 6 percent to 7 percent. The governor insists that is needed to balance the budget responsibly, while Roberts contends it could be avoided with a mix of other taxes and spending cuts.

 

Late yesterday Corzine, Roberts and state Senate President Richard Codey met for about four hours at the governor's official residence in Princeton -- and apparently got nowhere.

 

As he left Roberts would only say, “We had a very productive meeting.”

 

Codey, State Democratic Chairman Joe Cryan and Tom Shea, Corzine’s chief of staff, gave a much bleaker assessment.

 

“All of us are going to talk again (today),” Codey said. “Do I expect any sign of progress to come out of that? No.” Asked if a deal could be reached by tonight, he said “it’s not going to happen” because the leaders remain so far apart.

 

Republicans called the budget gridlock and the resulting shutdown ridiculous.

 

“There is no necessity for us to be placing the state in a constitutional crisis,” Assembly Minority Leader Alex DeCroce (R-Morris) said yesterday. “I think (Democrats) should get their act together and do what they were elected to do and that’s lead."

 

Contributed by Josh Margolin and Jeff Whelan

 

MEETING: Provides "very little, if any' progress, top senator says

CASINOS, RACETRACKS: Could close Wednesday without deal

Standoff pushes shutdown into 3rd day

GANNETT Newspapers - Posted by the Asbury Park Press on 07/3/06

BY JONATHAN TAMARI
GANNETT STATE BUREAU

PRINCETON — Gov. Corzine and top Democrats in the Legislature failed to resolve their differences over the state budget Sunday night after meeting for more than three hours at the governor's mansion.

Senate President Richard J. Codey, D-Essex, told reporters gathered at Drumthwacket that the meeting produced "very little, if any" progress.

Codey has called the full Senate to Trenton today for a noon session, but he said following the Sunday meeting that he "absolutely, positively" did not expect them to have a budget to vote on.

"It takes three to do a triangle, and we're not there. Simple as that," Codey said.

Assembly Speaker Joseph J. Roberts Jr., D-Camden, who opposes a sales tax increase sought by Corzine, said little as he drove away from Drumthwacket. "We had a very productive meeting. We'll meet again tomorrow," he said.

According to people at the meeting, lawmakers opposed to the sales tax increase cited $3 billion of alternatives to Corzine's budget, such as increasing the income tax on people earning $200,000 to $500,000 or expanding the sales tax to cover a number of new items, such as commercial banking, architectural services, dry cleaning and shoe repair.

"We're having conversa-tions now — a day after state government has been shut down — about new proposals that have just been put on the table, that have not been fully vetted with the public, and that we have not had time to scrutinize," said Thomas Shea, Corzine's chief of staff.

Despite a government shutdown that Corzine says will idle gaming regulators, horse racing will continue through at least the end of Tuesday, and casinos will remain open until at least Wednesday morning, though both could be closed after those times.

The budget dispute centers on Corzine's plan to increase the sales tax by one penny on the dollar, from 6 to 7 percent, which he has said is needed to eliminate the state's ongoing budget deficits. But Assembly leaders oppose the tax hike, saying it should be used only for reducing property taxes.

Democrats on the Assembly Budget Committee met behind closed doors for roughly five hours Sunday, trying to work out a solution to the standoff.

Assembly Republicans objected to the private meeting, after which committee members were sent home when no resolution was reached.

"Anything this committee does to resolve this constitutional crisis must be done in full view of the public because they are the ones being harmed by a government shutdown," Assembly Minority Leader Alex DeCroce, R-Morris, said. "The Democrats were elected to lead. It's high time they took responsibility for the mess they have created and adopt a budget."

Democrats said the Republicans knew the Sunday meetings were for caucuses and staff-level discussions, not a committee hearing.

"It's inexcusable that they would rather spend their time issuing partisan press releases instead of resolving this situation," said Assembly Democrats' spokesman Joe Donnelly.

Assemblywoman Joan Quigley, D-Hudson, said the committee was tinkering with the idea of a proposed payroll tax increase that would help replace the sales tax, even though Corzine has objected to the idea.

That proposal last week would have raised the cap on the 0.5 percent tax that funds the Temporary Disability Insurance program to the first $94,000 of income, rather than the current cap of $25,600. State and local government employees, including lawmakers, who have been exempt from the program would have had to start paying the tax, which critics call an income-tax hike.

With the two sides locked in a showdown, the state began the new fiscal year July 1 without the authority to spend money, depriving it of the ability to pay its workers. Nonessential services will continue, but more than half of the state's roughly 80,000 workers were instructed not to come to work today.

"The longer this goes on, the public will become aware," Corzine said.

Because the shutdown began on a weekend, it has had little immediate impact on the government so far. But if it lasted until July 5, lawmakers and Corzine could begin feeling more pressure, according to Assemblyman John Burzichelli, D-Gloucester.

"The biggest pain people will feel is if the casinos shut down," Burzichelli said.

"We know that Democrats own this issue, and we know we're getting painted with it in the Assembly, and we know we've got to make real progress rather quickly," said Assemblyman Joseph Cryan, D-Union, the state Democratic Party chairman.

Two decisions will keep casinos and horse racing going for now.

Appellate Court Judge Stephen Skillman ruled that horse tracks should remain open until the end of Tuesday to "assure the opportunity for orderly closure," said Winnie Comfort, a spokeswoman for the New Jersey courts.

State Casino Control Commission Chairwoman Linda Kassekert released a plan calling for all gambling at Atlantic City casinos to cease by 8 a.m. Wednesday. Given the number of people visiting Atlantic City on the holiday weekend, she said the casinos would need at least 48 hours to prepare.

The casinos are still fighting any closure in court. Even if they lose and gambling stops, other casino operations, such as hotels, shows and stores, would remain open. The best bet for the casinos and tracks, however, is to hope a spending plan is passed Tuesday, ending the shutdown.

Burzichelli said the two sides were not as far apart as it appears, but he rejected the compromise pushed by Corzine and Codey that would devote half of the $1.1 billion sales tax revenue to property tax relief.

"There's not a high level of trust that we have a lock-box in Trenton," he said, raising fears that the money might not end up where it is intended.

He said Corzine has not succeeded in selling his sales tax to the Legislature or the public.

"Arithmetic is the word of the day. There's not 41 votes in the Assembly, there's not 21 votes in the Senate," Burzichelli said.

Gannett State Bureau writer Tom Baldwin contributed to this story. Jonathan Tamari: jtamari@gannett.com

'People are sitting around trembling'

By Kera Ritter

Inquirer Staff Writer

About 45,000 state employees are out of work as the impasse continues between Gov. Corzine and New Jersey legislators over how to balance the state budget.

Yesterday was the first full day of the government shutdown, ordered by Corzine on Saturday after he and Assembly leaders tangled over his plan to increase the sales tax from 6 percent to 7 percent to help close a $4.5 billion gap in the $31 billion budget.

"It's just not right," said one Department of Human Services worker who did not want to be identified because she feared losing her job. "People are sitting around trembling. What if the Legislature can't get it together for a whole week? What are we supposed to do? It's like we don't even matter, like we don't have families, don't have responsibilities."

Employees who were furloughed will not be paid for the time they are out of work, but Corzine has said he hoped to negotiate with lawmakers to provide some compensation after the shutdown ends.

Some state services will remain operational. They include prisons, hospitals, child-welfare agencies, the state police, and veterans' homes.

But the shutdown has halted lottery sales and shuttered Motor Vehicle Commission offices and most courts. It threatens to stop horse racing and casino gambling by Wednesday.

Since Atlantic City's 12 casinos cannot operate without state inspectors, they would likely shut down Wednesday, as would state campgrounds and parks.

Horse racing throughout the state is set to stop tomorrow evening. The industry won a court reprieve from the shutdown late Saturday, but yesterday an appellate judge reinstated the order to close.

"It's hurting us badly," said Vipul Patel, owner of Voorhees News & Deli, who sells $60 to $100 worth of lottery tickets daily to his best customers. "People come to cash in tickets, and I cannot cash it. Most people know now, and so they aren't mad at me. They're mad at the government. They are saying we elected the wrong people. I've never seen anything like this."

Shutdown's Effects

No lottery tickets, no payouts. The lottery stopped selling tickets. Drawings will continue for any tickets sold, but winners will not be paid until the shutdown ends.

No horse racing. Racing and simulcasting at the Meadowlands Racetrack and Monmouth Park will stop tomorrow night.

Casinos could shut.

The Casino Control Commission has ordered Atlantic City's 12 casinos, which cannot operate without state inspectors, to halt gambling at 8 a.m. Wednesday. A court could intervene before then.

Parks open on the Fourth. State campgrounds and parks - including the state's two beaches - are expected to be open through the holiday. They would close Wednesday.

Motor Vehicle Commission shut.Its offices closed Saturday.

Employees furloughed. About 45,000 of the state's 80,000 employees, considered nonessential, are on furlough.

Courts shut. They will be mostly closed starting today.

Still operating. NJ Transit, prisons, state police, developmental centers, veterans' homes, mental hospitals, health and disease-prevention offices, child welfare, work on transportation safety, response to environmental contamination, inspectors of amusement parks.

- Elisa Ung

'People are sitting around trembling'

By Kera Ritter

Inquirer Staff Writer

About 45,000 state employees are out of work as the impasse continues between Gov. Corzine and New Jersey legislators over how to balance the state budget.

Yesterday was the first full day of the government shutdown, ordered by Corzine on Saturday after he and Assembly leaders tangled over his plan to increase the sales tax from 6 percent to 7 percent to help close a $4.5 billion gap in the $31 billion budget.

"It's just not right," said one Department of Human Services worker who did not want to be identified because she feared losing her job. "People are sitting around trembling. What if the Legislature can't get it together for a whole week? What are we supposed to do? It's like we don't even matter, like we don't have families, don't have responsibilities."

Employees who were furloughed will not be paid for the time they are out of work, but Corzine has said he hoped to negotiate with lawmakers to provide some compensation after the shutdown ends.

Some state services will remain operational. They include prisons, hospitals, child-welfare agencies, the state police, and veterans' homes.

But the shutdown has halted lottery sales and shuttered Motor Vehicle Commission offices and most courts. It threatens to stop horse racing and casino gambling by Wednesday.

Since Atlantic City's 12 casinos cannot operate without state inspectors, they would likely shut down Wednesday, as would state campgrounds and parks.

Horse racing throughout the state is set to stop tomorrow evening. The industry won a court reprieve from the shutdown late Saturday, but yesterday an appellate judge reinstated the order to close.

"It's hurting us badly," said Vipul Patel, owner of Voorhees News & Deli, who sells $60 to $100 worth of lottery tickets daily to his best customers. "People come to cash in tickets, and I cannot cash it. Most people know now, and so they aren't mad at me. They're mad at the government. They are saying we elected the wrong people. I've never seen anything like this."

Shutdown's Effects

No lottery tickets, no payouts. The lottery stopped selling tickets. Drawings will continue for any tickets sold, but winners will not be paid until the shutdown ends.

No horse racing. Racing and simulcasting at the Meadowlands Racetrack and Monmouth Park will stop tomorrow night.

Casinos could shut.

The Casino Control Commission has ordered Atlantic City's 12 casinos, which cannot operate without state inspectors, to halt gambling at 8 a.m. Wednesday. A court could intervene before then.

Parks open on the Fourth. State campgrounds and parks - including the state's two beaches - are expected to be open through the holiday. They would close Wednesday.

Motor Vehicle Commission shut.Its offices closed Saturday.

Employees furloughed. About 45,000 of the state's 80,000 employees, considered nonessential, are on furlough.

Courts shut. They will be mostly closed starting today.

Still operating. NJ Transit, prisons, state police, developmental centers, veterans' homes, mental hospitals, health and disease-prevention offices, child welfare, work on transportation safety, response to environmental contamination, inspectors of amusement parks.

- Elisa Ung

 

 

op ed piece -

Mayors back convention as way to change school-aid formula

Posted by the Asbury Park Press on 07/2/06

BY PAUL C. BRUSH

 

Without question, the burden of property taxes is a serious problem. As mayor of Dover Township, my primary responsibility is the health and safety of our residents. Beyond that, property tax relief is my highest priority.

Everything I do, whether it is my effort to change the name of Dover Township to Toms River, supporting the Downtown Business Improvement District and the Chamber of Commerce, providing recreation for young and old, or preserving open space, it all improves our quality of life and eventually makes our town more affordable in which to live.

 

Recently, I chaired a committee of mayors from the Ocean County Mayors' Association whose purpose was to prepare a resolution of support from all the mayors for a citizens' constitutional convention. We recommended that the Legislature meet this summer to approve a statewide referendum Nov. 7 on which the voters could approve a constitutional convention in 2007. I'm pleased that the resolution was unanimously adopted by the mayors and sent on to the Legislature and other county mayors' associations.

 

What prompted the resolution was my belief that the formula for school aid is unfairly burdensome on suburban school districts because the formula is based primarily on a district's wealth and its ability to educate a child. Clearly, the suburban and rural districts are wealthier than the urban districts, which is why the 31 urban districts, known as the Abbott districts, get 60 percent of all school aid, not including construction costs, and have only 20 percent of all students.

 

This has always been the formula. The result has been especially hard on the taxpayers in suburban districts like Toms River while the desired academic results have not been achieved in the Abbott districts. If the formula were changed to provide funding on a per-pupil basis, our taxes in Dover Township would go down about $1,000 per year per household.

 

The average cost of educating all students in New Jersey is about $11,000. The average cost in the 31 Abbott Districts alone is about $14,000, with Asbury Park being about $18,000. The cost to educate a student in the Toms River Regional School District is only $8,700.

 

We all believe in the concept of a thorough and efficient education, but the cost has become too burdensome for our taxpayers and something must be done, thus the groundswell of support for a constitutional convention. Gov. Corzine has called for reform and supports the convention, which is a big plus. He has actually cut funding for the Abbott districts, which has not been done in years, and his plan was approved by the state Supreme Court.

 

We can all do our part by writing to the governor, Assembly Speaker Joseph J. Roberts Jr., D-Camden, and Senate President Richard J. Codey, D-Essex, demanding a referendum on the ballot this November for a constitutional convention to be held in 2007. There is talk about delaying it until 2008, which the mayors feel is unacceptable. Something drastic has to be done now to relieve property taxes.