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Read to get a sense of Trenton's ambience going into the final 'deadline' day to produce a state budget for FY07.
Star Ledger - Governor deserves a a medal for his mettle
Friday, June 30, 2006
Tom Moran, Star Ledger columnist
In 1856, an angry congressman marched into the U.S. Senate chambers and beat Sen. Charles Sumner over the head with a cane, leaving him bleeding and dazed.
So things could get worse. The cursing and shoving in
What is happening in the Legislature now is pretty simple, once you get past the emotion and the theatrics.
The mutiny against Gov. Jon Corzine is failing.
The rebel leader, Assembly Speaker Joseph Roberts, challenged the governor by drafting his own budget -- one that rejected any increase in the sales tax, but did little to fix the state's chronic budget shortfalls.
Corzine had warned Roberts that he wouldn't sign a spending plan like that. But Roberts wouldn't budge. And on Wednesday, the speaker put his own plan before the budget committee.
The surprise was that he could not find the votes to pass it.
"I'm actually fairly good at counting votes," Roberts said later, as if he couldn't believe it himself.
Corzine, it turns out, had been working hard to persuade wavering Democrats to abandon Roberts, and join the push for a compromise.
He invited wavering members to his office for one-on-one meetings. He called county chairmen and asked them to press legislators on his behalf. He flatly promised, in public, that he would veto any budget that dodged the tough choices.
The political veterans didn't expect this kind of fight.
"A lot of people underestimated Jon Corzine and his determination," says former Asembly Speaker Albio Sires. "He's certainly someone who means what he says."
Roberts needed seven of the eight Democrats on the budget committee to win a majority.
One of them was Assemblyman Gary Schaer, a Democrat from
In the end, Schaer decided he could not join the revolt.
"I had thought the governor was a bit of a neophyte when it comes to politics," Schaer says. "I have to take that back."
Assemblyman William Payne was another swing vote. A Democrat from
He was in for some culture shock.
Roberts played the game, promising to make concessions in return for Payne's vote. But Corzine would not.
"Governor Corzine is not engaged in trading votes for concessions," Payne says. "He's attempting to operate his office more along the lines of a business."
As sour as the experience was, Payne found himself impressed. He decided to stick with the governor, and the
Roberts was cornered. With Assemblyman Joe Cryan, the party chairman, already firmly on Corzine's side, he had only five votes, at the most. The mutiny was over.
Corzine, of course, still faces a tough fight to win support for his budget. That will be a much heavier lift than stopping Roberts. He'll have to compromise, and a government shutdown remains a big threat.
But his win over Roberts has made an impression. And so has the new style the governor is bringing to town.
"He called me over the weekend," Sires says. "I told him I was with Joe Roberts. And he didn't get upset, or say -- 'Look, Albio, I supported you for Congress and you owe me.' -- like a regular politician would do. He just tried to convince me on the merits."
No bribes. No threats. Just a discussion about what's best for
Imagine that.
Tom Moran's column appears Wednesdays and Fridays. He may be reached at tmoran@starledger.com or (973) 392-1823.
Press of Atlantic City
By PETE McALEER Statehouse Bureau, (609) 292-4935
Published: Friday, June 30, 2006
Updated: Friday, June 30, 2006
The Statehouse stayed eerily quiet throughout the day as the only people emerging from Corzine's office were Cabinet members who had been briefed on how the administration would handle a state shutdown if the budget standoff persists.
“If there's been any movement, it's the best-kept secret in
Absent a budget agreement, the state would no longer have the authority to spend money starting Saturday. Nonessential state services would begin to shut down over a four-day period beginning at midnight.
“The concern is if we don't have a budget by midnight on Friday night, there are constitutional obligations we have to respect,” Corzine said.
Both houses of the Legislature are scheduled to meet today to vote on a series of budget bills, with the Senate considering a few of the tax increases proposed by the Assembly last week. Yet the largest issue in the $31 billion spending plan remains unresolved. Corzine and Senate President Richard J. Codey, D-Essex, back a 1 percent sales-tax increase — to 7 percent — as a step toward eliminating New Jersey's recurring budget deficit. Assembly Democratic leaders, led by Speaker Joe Roberts, D-Camden,
At a morning news conference in
Roberts told the Associated Press that the idea was smart and creative, but he was not ready to accept it.
“If we can find $500 million in other responsible cuts or revenue raisers, as we believe we can, then is a sales tax hike really necessary in the first place?” Roberts asked.
Toll collections, State Police, prison guards, mental hospitals and child protection would all be considered essential services and would continue to operate regardless of a budget stalemate.
State parks and beaches would stay open through the Fourth of July weekend but close Wednesday morning.
Casinos, which are required to have state inspectors on the premises, could close before then, but the state's gaming industry is expected to file a lawsuit to keep casino doors open.
One prominent lawmaker offered a solution Thursday afternoon. Sen. John Adler, D-Camden, wrote Corzine to propose the state lay off 20,000 employees to save $100 million.
“We must make other difficult choices for this budget and for
Corzine spokesman Anthony Coley said, “It is curious that Mr. Adler decides to write the governor a letter on the 99th day of budget negotiations. But we'll throw his suggestion in the pile.”
To e-mail Pete McAleer at The Press:
Phila Inquirer - Corzine digs in for showdown
The governor and his cabinet discussed shutting down services if his plan, including a sales-tax hike, doesn't pass.
Inquirer
As a heated budget standoff with Assembly Democrats continued into yesterday, Gov. Corzine signaled he was in it for the long haul.
He had a cot delivered to his Statehouse office.
Not long afterward, Corzine convened his cabinet for a meeting to discuss plans for a government shutdown if a budget isn't passed by tonight's midnight deadline.
Officials said that while a shutdown could be called tomorrow, state parks at least wouldn't close until after the July 4 holiday.
Spokesman Anthony Coley said Corzine was being cautious - not dramatic - by ordering the cot and calling the cabinet meeting.
"We hope and expect to have a budget passed on time," he said. "This is Boy Scout stuff - 'be prepared'... This is Jon Corzine preparing for any eventuality."
If a budget agreement isn't reached, Coley said, "the governor is going to be spending a lot of time in the Statehouse."
He might need a catnap here and there, Coley said, and doesn't have a couch. So he bought a 39-inch-wide cot from Sleepy's.
Corzine yesterday made it sound like he might not even need it in the end - or need it for long.
"I still believe that we will get to a settlement in a relatively early period," he said.
State Treasurer Brad Abelow didn't sound quite so optimistic.
Asked whether there had been progress in budget negotiations after the cabinet meeting yesterday afternoon, he said: "Our focus right now has been on an orderly shutdown of government."
Susan Bass Levin, commissioner of the Department of Community Affairs, said that if a budget agreement remained elusive by tomorrow, the governor was expected to issue an executive order calling for the closure of "all but essential services."
She said each government department would shut down on its own schedule.
Officials said state parks, campgrounds and beaches would remain open through the holiday weekend, because the state would need a few days to alert the public and prepare for closure. But Department of Environmental Protection Commissioner Lisa Jackson predicted that if there is indeed a shutdown, all parks would be closed by the morning of July 5.
The Casino Control Commission this afternoon plans to vote on suspending the certificates of operation for
To avoid a shutdown at this point, some pretty big issues need to be resolved pretty quickly.
The major roadblock to a budget agreement remains an increase in the sales tax from 6 to 7 percent that Corzine has made a cornerstone of his $30.9 billion proposed spending plan. Corzine says the hike, which would raise about $1.1 billion a year, is the most responsible way to balance the budget, using recurring revenue to plug a recurring deficit.
The governor has some key lawmakers behind him, notably Senate President Richard J. Codey.
But Assembly Democrats, led by Speaker Joseph Roberts (D.,
Assembly leaders earlier this week planned to introduce their own budget bill, which avoids a sales-tax hike but imposes a new levy on
The threat brought an already heated standoff to a boil.
Assemblyman Louis Greenwald (D.,
Assembly Democrats expect Abelow to appear before the panel when it reconvenes this morning. The Senate Budget and Appropriations Committee is scheduled to discuss some of the smaller, less controversial pieces of the Assembly's alternative budget proposal.
Sen. John Adler (D.,
Corzine, meanwhile, is standing firm on the sales tax, but yesterday he said he was willing to reconsider how some of the new tax revenue is spent.
A plan backed by Codey would set aside 50 percent of the proposed 1-cent hike - roughly $550 million a year - for relief to help residents offset the nation's highest property taxes.
"It is a proposal that has merit and should bring some basis for discussion," Corzine said.
Whether Assembly leaders will join the discussion, however, remains to be seen.
Roberts, who has said any sales-tax increase should be devoted entirely to property-tax relief, is "cool" to the proposal, said his spokesman, Joe Donnelly.
Q & A:
Here are answers to some questions about the budget and a possible government shutdown:
Question: What's so important about this week?
A: The state constitution requires a budget be adopted by July 1. Without a budget, the state treasury has no money. Still, the constitution doesn't detail what happens when a budget isn't adopted on time, and the state has gone past the deadline three times since 2002 without consequence.
Q: What would cause
A: The state legally cannot spend money without a budget. Gov. Corzine would decide when to declare a shutdown.
Q: Has state government ever been shut down before because a budget hadn't been passed by the deadline?
A: No.
Q: Can negotiations continue beyond the deadline without a shutdown and, if so, for how long?
A: This is Corzine's call. The constitution does not address this question. Yesterday, he hinted that he would wait until after the July Fourth holiday.
Q: What would close and what would remain open?
A: The Corzine administration would maintain services deemed "essential" - such as prisons, state police and mental hospitals. Anything deemed nonessential would close. Internal administration memos say that includes state parks, casinos, and state construction projects.
Q: Why would casinos be shut down?
A: The state Casino Control Act requires state inspectors to be on duty at all operating casinos. But inspectors are not deemed essential employees and would not be on duty during a shutdown.
Q: Is there a way to shut down the government without affecting casinos?
A: A June 22 memo from Casino Control Commission chair Linda M. Kassekert said the governor could consider temporarily designating certain employees "essential." However, the commission plans to meet this afternoon to consider a temporary suspension of the certificates of operation of the state's 12 casinos in the event of a shutdown.
Q: Would NJ Transit be affected?
A: No. NJ Transit says its services are deemed essential, so bus, rail, and light-rail services would run normally.
Q: Who has to approve the budget this week?
A: The same plan must pass the Assembly and Senate and be signed by the governor. The state constitution requires that all tax bills start in the Assembly, and Gov. Corzine has authority to veto specific pieces of the budget.
Q: How big is the state budget?
A: Corzine wants to spend $31 billion, $3 billion more than the last budget. The budget is almost entirely funded by income, corporate and sales taxes, and most of it is spent on public school and local government aid, and medical care for low-income residents.
Q: What does a budget deficit mean?
A:Corzine wants to spend about $31 billion, much of it contracted and mandated costs, but the state won't collect that much in taxes, so it has no way of meeting its spending needs without either increasing taxes or cutting programs. The state cannot operate with deficits as the federal government does.
- Elisa Ung
and Associated Press
Contact staff writer Jennifer Moroz at 609-989-8990 or jmoroz@phillynews.com. Elisa Ung of the Inquirer
A gradual shutdown, should budget talks fail
Lawmakers look to debate sales tax compromises past zero hour Friday, June 30, 2006 BY JOE DONOHUE AND DUNSTAN McNICHOL Star-Ledger Staff With stalemated lawmakers now sure to miss tonight's midnight deadline for a new state budget, the Corzine administration set plans yesterday for a gradual shutdown of state government that could spoil the long holiday weekend at the casinos but not the beaches. State leaders talked privately throughout the day but reported no breakthrough in the dispute over whether the budget for the year that begins tomorrow should include a penny-on-the-dollar increase in the state sales tax. Following a late-afternoon Cabinet meeting, officials said that unless there was "substantial progress" on a budget deal, Gov. Jon Corzine would sign an executive order tomorrow to keep essential workers on the job while closing down other state services. Corzine held out hope it would not come to that. "I still believe we will get to a settlement in a relatively early period," he said at a morning news conference. Beachgoers were reassured: Environmental Protection Commissioner Lisa Jackson said state parks, beaches and campgrounds would not be closed before July 5. "We need time to alert the public," she said, adding it would take time to evacuate campgrounds. Gamblers may be affected more quickly, however. The Casino Control Commission called an emergency meeting for 5 p.m. today to announce plans for shutting the gaming floors, which cannot operate without state inspectors. Lawyers for the casinos planned to go to court this morning in an effort to head that off. The Lottery also would shut down, although it's not clear how quickly. Assembly Democrats, led by Speaker Joe Roberts (D-Camden), have balked at the sales tax increase that Corzine proposed in his budget address three months ago, while Corzine has threatened to veto a budget that doesn't include it. The governor's plan would increase the 6 percent tax to 7 percent and extend it to several more services. The Assembly Budget Committee was scheduled to reconvene today, after a bizarre Wednesday meeting in which it tabled its own alternative budget bill and demanded an immediate appearance by Treasurer Bradley Abelow. He stood them up but was expected to appear today. As a possible compromise, Senate Democrats have recommended including the higher sales tax in the new budget, but reserving about half the $1.1 billion it is scheduled to raise for use as property tax relief later this year. Corzine signaled yesterday he would be willing to consider that. "It is a proposal that has merit and should, I hope, bring some basis for discussion," the governor said. Roberts remained cool to the idea, though he called it "smart and creative." "If we can find $500 million in other responsible cuts or revenue raisers, as we believe we can, then is a sales tax hike really necessary in the first place?" Roberts said. Senate President Richard Codey (D-Essex) confirmed there were frequent talks among the leaders yesterday. "I keep trying different variations (of the compromise plan), and we go back and forth but we have yet to hit gold," he said. At today's committee meeting, lawmakers were scheduled to consider only those budget-related bills that both Senate and Assembly Democrats agree on, including three measures that would impose a total of $174 million in new charges on corporate profits, car rental agreements and high-end cars. NOTIFYING PERSONNEL Once midnight passes without a final budget in place, the state technically will have no authority to spend money. An executive order would allow the governor to keep state troopers, prison guards, child welfare workers and other essential employees on the job, with the promise of paying them later. Nonessential workers would be told to stay home, although Corzine said he could delay for a bit. Last year's budget was not adopted until early morning on July 2 and there was no shutdown. "There has been a precedent you're willing to wait," he said. "I couldn't postpone that for much longer than the (holiday) weekend." After the Cabinet meeting, Community Affairs Commissioner Susan Bass Levin said Corzine would sign the executive order tomorrow if there wasn't "substantial progress" in budget negotiations by then. "If need be, we will be prepared," she said. Officials said any government shutdown would be phased in over several days. By mail and phone calls, departments have begun notifying employees who are deemed essential and must come to work, Levin said. Other employees must stay abreast of the situation through the media, she said, adding that notification plans have been complicated by the closing of state offices in In other budget-related developments yesterday: · Sen. John Adler (D-Camden) aligned himself with those calling for cuts rather than a sales tax hike. He urged up to 2,000 layoffs of state workers to save about $100 million. "The time has come to have state government share the sacrifice necessary to strengthen · Americans for Tax Reform, using data from the National Association of State Budget Officers, said · Assembly Republicans said they have collected 4,000 signatures on a petition opposed to the sales tax increase and urging more cuts. "I am convinced these taxpayers represent the tip of the iceberg," said Assembly Minority Leader Alex DeCroce (R-Morris). · More than 3,000 massage therapists objected to Corzine's plan to apply the sales tax to their business. "Lumping message therapy in with fake suntans and tattoos is ludicrous," said Les Sweeney, president of the Associated Bodywork and Massage Professionals. "Surveys indicate most massage therapy treatment is for pain and stress relief -- asking consumers to pay sales tax on it literally adds insult to injury." · Members of the New Jersey Self Storage Association also said they are "deeply concerned" about plans to impose the tax on their facilities. And the Building Owners and Managers Association of Joseph Seneca, a Staff writers Jeff Whelan and Josh Margolin and the Associated Press contributed to this report. Joe Donohue covers state government and politics. He may be reached at jdonohue@starledger.com or (609) 989-0208. © 2006 The Star Ledger © 2006 NJ.com All Rights Reserved. |
The
Corzine ready to order shutdown
Friday, June 30, 2006
By JOHN P. McALPIN
Governor Corzine will issue orders Saturday to begin a slow shutdown of state operations unless he and lawmakers end their battle over which taxes will be raised and by how much.
Trenton's increasingly bizarre budget standoff continued yesterday with no deal done, and the only seeming change came to Governor Corzine's office as workers delivered a cot so he could take naps during the weekend.
Midnight tonight is the constitutional deadline for a balanced state budget, but Corzine and Democrats in the Assembly remain deadlocked over a plan to raise the sales tax from 6 cents to 7 cents. Shutdowns have been threatened but never materialized as negotiations dragged several hours or days past the deadline.
Corzine says the sales tax increase would shore up the state's shaky finances after years of budget gimmicks. Democrats who control the Assembly are pushing a package of cuts and other tax increases to avoid raising the sales tax, which leaders see as politically troublesome unless the money is used to lower property taxes.
"It doesn't serve the public's interest to shut the government down," Corzine said. "That's a judgment call we'll make. We're reviewing the contingencies. I want to see the implications in detail."
Corzine said he's willing to consider delaying any shutdown orders.
"I still believe we will get a settlement," he said.
One compromise floated by Senate President Richard J. Codey, D-Essex, would agree to the sales tax increase but only if half of the estimated $1.1 billion goes to property tax relief. Democrats control the Senate as well, but some members there have been cool to raising the sales tax.
"I find the Codey proposal an idea that is very worth exploring," Corzine said. "I think it is a proposal that has merit."
Assembly Speaker Joseph Roberts, D-Camden, has fought the tax increase since Corzine introduced his $30.9 billion budget in March. Roberts has said that every dollar raised by any increase in the sales tax should be spent lowering the state's property tax bills instead of balancing one state budget.
Assembly leaders spent most of yesterday behind closed doors in talks with members, some of whom turned on each other during a raucous budget committee hearing Wednesday. Roberts said he talked to both Corzine and Codey.
"We continue talking, working to try and resolve the differences that remain," Roberts said. "I think were working hard to try and narrow the areas of disagreement and hammer out a balanced budget."
Roberts declined to say exactly what separates the sides from a balanced budget, but said progress is being made.
Corzine's administration detailed final plans for an unprecedented state shutdown at an afternoon Cabinet meeting. Without a firm deal in place, Corzine will sign an executive order that keeps state police, prisons and other essential services running. All other state operations will slowly shut down without the money to pay for them, officials said.
"Everything will not shut down immediately," Department of Community Affairs Commissioner Susan Bass Levin said, adding that Corzine's staff approved plans for an "orderly shutdown of government."
State offices would likely be shuttered come Monday morning.
State parks and beaches would likely remain open through the July Fourth holiday because officials need at least that long to secure operations and inform the public of the closings, Department of Environmental Protection Commissioner Lisa Jackson said.
Gambling in
"Clearly there's the possibility of no budget being approved by the end of tomorrow," commission spokesman Dan Heneghan said Thursday, "and we have to prepare for whatever contingencies are out there."
During a budget impasse three years ago, Gov. James E. McGreevey threatened to suspend gambling as part of a government shutdown. The issue ended up in court when the state casino association objected. An appellate court found in the governor's favor, but the political standoff was resolved without a government shutdown -- even though the final budget bills were not passed until more than half a day after the constitutional deadline.
Both the Senate and Assembly have scheduled budget committee meetings for today. Even if a deal is reached, the budget bill will have to be approved and then sit for one day before full votes in the Senate and Assembly. Unless GOP lawmakers agree to waive the rules, the earliest a vote could come would be Sunday.
Assembly Democrats again invited Treasurer Bradley Abelow to appear and detail why the administration rejects their $30.4 billion budget that does not include a sales tax hike. That plan increases the taxes that workers now pay on disability insurance to raise $370 million as well as adds sales taxes to items like fur and computer services. It would cut about $740 million in government programs and services.
Shortly before 1 p.m. Thursday, the elevator across the hallway from Corzine's office opened and a man walked out pushing a small folded bed on wheels. The bed had been trucked down from a Sleepy's depot in
State officials said the 39-inch portable cot with a mattress was for the governor, who may need it if the budget negotiations run into the wee hours over the next few days.
Staff Writers Josh Gohlke, Mitchel Maddux and Tom Davis contributed to this article. E-mail: mcalpin@northjersey.com
Governor buys a cot and beats sales tax increase
Posted by the Asbury Park Press on 06/30/06
BY GREGORY J. VOLPE
TRENTON — Facing a tough budget battle, the prospect of being the first governor to shut down New Jersey government and with the Delaware River flooding parts of the state, Gov. Corzine doesn't have much time for rest these days.
But now when he needs a power nap, Corzine no longer needs to leave the confines of his office after he had a cot delivered Thursday afternoon.
"In the event we have not resolved this budget crisis, the governor will be spending a lot of time in his office," his spokesman, Anthony Coley, said.
Corzine paid $183 — plus tip — for the twin-sized folding cot from Sleepy's, Coley said. It will be made up with blue sheets from Target. Corzine paid for both with his own money, Coley said.
Though Corzine has the governor's mansion, Drumthwacket, in nearby
"He is a trader at heart," Coley said. "Jon Corzine takes power naps. He'll be working a lot of extra hours."
Assemblyman Joseph R. Malone III, R-Burlington, an opponent of Corzine's tax-raising budget proposals, had no gripes with the governor ordering in a bed. He said the bed was a sign of the governor's work ethic toward the budget.
"I totally disagree with his taxes, but I have a lot of respect for his tenacity," Malone said.
Gregory J. Volpe: gvolpe@gannett.com
