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Friday, July 07, 2006 State still shut, despite budget deal The state of New Jersey is back in business. Almost.
With Gov. Jon Corzine coming to an agreement in principle with legislative leaders on a new state budget, the unprecedented shutdown of government could end as soon this evening or early tomorrow.
The spending plan, which will raise the states sales tax to 7 percent, was being finalized overnight and is expected to go through legislative budget committees today. The full Senate and Assembly could vote on it tomorrow.
When signed, the new agreement will allow the re-opening of casinos, state parks and beaches and all other government services, which have been shut down since July 1. State workers could return to work on Monday.
"This absolutely must not happen again,'' Corzine said early today. "Our budget process and procedure are flawed and we have an obligation to fix them...by Chris D'Amico
Smiling face is only thing Roberts can try to save
Friday, July 07, 2006 Assembly Speaker Joe Roberts stood at the governor's elbow and forced a smile. A day earlier, he was still vowing to defeat the governor's plan to raise the sales tax. He even declared it dead. Yesterday, he lost that fight decisively. But he came to a press conference in the governor's office to deny that rock-hard truth, and to save whatever shred of political mojo remained after this failed coup. It was painful to watch. The silver-haired speaker rocked back and forth on his toes. Big beads of sweat formed on his forehead. The fake smile kept disappearing as he drifted off, with bright TV lights bearing down on him. And then, on command, it reappeared. You wanted to hand the man a handkerchief and offer him a chair. Mark Joe Roberts down as the latest Democratic power broker to learn that Gov. Jon Corzine is not some Wall Street wimp after all. "Joe's a leader, and he fought the best fight he could," said Sen. Stephen Sweeney, a The sales tax will bring in about $1.1 billion a year, not much when measured against a state budget of $31 billion. But this win for Corzine is huge. For one, even Republicans who oppose the sales tax hike are impressed that Corzine is serious about paying the state's bills. We've been living on credit for too long. More important, it shows that Corzine is willing to knock heads to clean up the Democratic Party's act. We saw the first sign of that when Corzine confronted Joe Ferriero, the Bergen County boss who has turned the county party into a money machine, raising huge sums from firms that are rewarded with government contracts. That's given him statewide power. But when Ferriero tried to block the promotion of Loretta Weinberg from the Assembly to the Senate last year, Corzine fought him, calling local party delegates to encourage a revolt. It shocked everyone. But Corzine won, helping Weinberg to crash the boys' club in the Senate. Newark Mayor Sharpe James came next. When he tried to siphon $80 million from the city treasury into two nonprofit groups that he could control after leaving office, Corzine stopped him. And he stood firm, even after James' cronies made the profoundly silly charge that stopping such a brazen move showed racial insensitivity. This week's win against Roberts was far and away the biggest. "The governor was really very angry," said one political player who met with Corzine several times during the crisis. "He felt like he made major compromises to avoid this shutdown." Roberts had insisted that all the revenue from a sales tax hike be preserved for property tax relief. Corzine agreed to give him half that, as suggested by Senate President Richard Codey. But Roberts refused to budge, even when Corzine sweetened the deal on Sunday night by offering to devote 60 percent to property tax relief. That's when Corzine started to fight hard. He was able to block Roberts, and to steadily deplete his band of mutineers. Yesterday, they came trudging into Corzine office one by one, seeking forgiveness and promising fealty to the new king. Yesterday, according to two sources with direct knowledge of the talks, Roberts came back and told Corzine he would accept the 60 percent offer after all. This time, Corzine wouldn't give it to him. He agreed to a few small concessions designed to let Roberts save face. But the real power had shifted from one man to the other. And no matter how much Roberts smiled, all of "Corzine doesn't like to push people around," says Harold Hodes, a Democratic lobbyist. "But he doesn't like to be pushed around himself either." Tom Moran's column appears Wednesdays and Fridays. He may be reached at tmoran@starledger.com or (973) 392-1823. |
Smiling face is only thing Roberts can try to save
Friday, July 07, 2006 Assembly Speaker Joe Roberts stood at the governor's elbow and forced a smile. A day earlier, he was still vowing to defeat the governor's plan to raise the sales tax. He even declared it dead. Yesterday, he lost that fight decisively. But he came to a press conference in the governor's office to deny that rock-hard truth, and to save whatever shred of political mojo remained after this failed coup. It was painful to watch. The silver-haired speaker rocked back and forth on his toes. Big beads of sweat formed on his forehead. The fake smile kept disappearing as he drifted off, with bright TV lights bearing down on him. And then, on command, it reappeared. You wanted to hand the man a handkerchief and offer him a chair. Mark Joe Roberts down as the latest Democratic power broker to learn that Gov. Jon Corzine is not some Wall Street wimp after all. "Joe's a leader, and he fought the best fight he could," said Sen. Stephen Sweeney, a The sales tax will bring in about $1.1 billion a year, not much when measured against a state budget of $31 billion. But this win for Corzine is huge. For one, even Republicans who oppose the sales tax hike are impressed that Corzine is serious about paying the state's bills. We've been living on credit for too long. More important, it shows that Corzine is willing to knock heads to clean up the Democratic Party's act. We saw the first sign of that when Corzine confronted Joe Ferriero, the Bergen County boss who has turned the county party into a money machine, raising huge sums from firms that are rewarded with government contracts. That's given him statewide power. But when Ferriero tried to block the promotion of Loretta Weinberg from the Assembly to the Senate last year, Corzine fought him, calling local party delegates to encourage a revolt. It shocked everyone. But Corzine won, helping Weinberg to crash the boys' club in the Senate. Newark Mayor Sharpe James came next. When he tried to siphon $80 million from the city treasury into two nonprofit groups that he could control after leaving office, Corzine stopped him. And he stood firm, even after James' cronies made the profoundly silly charge that stopping such a brazen move showed racial insensitivity. This week's win against Roberts was far and away the biggest. "The governor was really very angry," said one political player who met with Corzine several times during the crisis. "He felt like he made major compromises to avoid this shutdown." Roberts had insisted that all the revenue from a sales tax hike be preserved for property tax relief. Corzine agreed to give him half that, as suggested by Senate President Richard Codey. But Roberts refused to budge, even when Corzine sweetened the deal on Sunday night by offering to devote 60 percent to property tax relief. That's when Corzine started to fight hard. He was able to block Roberts, and to steadily deplete his band of mutineers. Yesterday, they came trudging into Corzine office one by one, seeking forgiveness and promising fealty to the new king. Yesterday, according to two sources with direct knowledge of the talks, Roberts came back and told Corzine he would accept the 60 percent offer after all. This time, Corzine wouldn't give it to him. He agreed to a few small concessions designed to let Roberts save face. But the real power had shifted from one man to the other. And no matter how much Roberts smiled, all of "Corzine doesn't like to push people around," says Harold Hodes, a Democratic lobbyist. "But he doesn't like to be pushed around himself either." Tom Moran's column appears Wednesdays and Fridays. He may be reached at tmoran@starledger.com or (973) 392-1823. |
Corzine's clout routs Roberts' rebellion
Friday, July 07, 2006 BY JEFF WHELAN AND JOSH MARGOLIN Star-Ledger Staff Hundreds of angry, out-of-work casino employees -- some brandishing bullhorns -- railed against Assembly Speaker Joe Roberts outside the Statehouse. Gov. Jon Corzine was signaling he was ready to dig into his personal fortune to air campaign-style television ads making the veteran South Jersey Democrat out to be the villain behind the first state government shutdown in And a late night committee meeting convened for one last stand backfired and left Roberts standing virtually alone. In less than 24 hours from Wednesday evening to yesterday afternoon, the Speaker's insurrection against the governor ended as a wall of political pressure came down on his shoulders. The kind of pressure only a governor can bring to bear. "It just took a while for the governor's operation to be revved up, and once it did, they folded like a house of cards," Assemblyman Kevin O'Toole (R-Essex) said. "It's everything: the money, the power of the office, his own personal largesse, his own personal chits that are out there. There are so many components and it was like they all -- at one time -- were in sync." By yesterday afternoon, less than two days after he defiantly declared Corzine's proposed sales tax increase was "dead in the General Assembly," Roberts found himself standing at a podium side by side with the governor. He was accepting a sales tax increase he had aggressively sought to kill. "We do owe the people of this state an apology. We have disrupted their lives. We have caused hardship," Roberts said. After days of heated rhetoric and political posturing, the unraveling of the Speaker's opposition began early Wednesday evening. Roberts and Senate President Richard Codey, who was acting as a peace broker, met Corzine in the governor's office at about 7 p.m. Corzine, seeking to jump-start talks with Roberts, offered a modified version of a compromise Codey had put forth weeks earlier. The issue was all about how the governor's proposed sales tax would be spent. The Speaker had said any sales tax increase was unacceptable unless "every single, solitary penny" went towards property tax reform. Codey had suggested splitting it down the middle -- with half going towards balancing the budget and half towards property tax relief. Corzine was now willing to sweeten that deal a little by seeking a constitutional amendment to dedicate that money to property tax relief for 10 years. By that time, word had spread around the Statehouse that earlier in the day, Corzine had met with his Washington, D.C.-based media consultant, Mike Donilon. The political adviser had written scripts for four television spots intended to put public pressure on Roberts to break the budget stalemate. But when Roberts emerged from the meeting, he appeared more entrenched than ever. He announced that Assembly Democrats were pushing forward with their own alternative budget that would eliminate Corzine's sales tax increase. Codey appeared dispirited and said he believed they remained at a standstill and that the governor would veto the Speaker's plan. Later that night, the Assembly Budget Committee held a hastily called meeting to consider a bill that would make casino regulators "essential employees," a law that would enable gaming halls to stay open in the event of a government shutdown. The powerful committee is chaired by Assemblyman Louis Greenwald (D-Camden), a key Roberts ally. The move was designed to take political heat off two Roberts allies: Assemblymen James Whelan and Jeff Van Drew, who both represent But Corzine's allies quickly hijacked the hearing. One of them was Sen. William Gormley, a powerful and savvy Atlantic County Republican who helped rally the casino workers' union behind the Democratic governor. During the hearing Gormley openly challenged Greenwald to pass a budget, and dismissed the chairman's invitation to join with the Assembly plan. "I think I'll support the governor, because he's not in the tank. Okay?" Gormley said. Then came a strategic parliamentary maneuver. Assemblyman Joseph Cryan (D-Union), made a motion to amend the bill so that all state workers would be classified "essential employees." Greenwald sought to block it, but Corzine's team had stacked the audience with state workers, who began to shout that they were out of work, too, and that they were just as essential as casino workers. The amendment passed. But the Cryan maneuver had essentially poisoned the bill. It stood no chance of passing the Assembly because of the constitutional issues it raised. The state constitution prohibits the state from spending money without a budget in place, but it makes an exception for employees essential to preserving the health, safety and welfare of residents. Making all 80,000 state workers essential would render the term meaningless and would never pass muster with the courts. "It was a critical turning point," one key Democrat and Corzine ally said. But the political theater also demonstrated Greenwald did not have firm control of the 11-member Assembly Budget Committee -- which was critical to Roberts getting his alternative budget through. Yesterday morning, Senate Majority Leader Bernard Kenny prowled the Assembly Chamber, twisting arms on the governor's behalf as Corzine prepared to deliver another speech. Word of the budget committee debacle had spread, and there was a sense that the battle had turned for the governor. Corzine stepped up the pressure with a fiery speech that chastised the Assembly Budget Committee for its lack of action and exhorted lawmakers to get a deal by day's end. He also publicly laid out the plan he'd mentioned to Roberts the night before. Moments later, Assembly Democrats gathered in their caucus room in the Statehouse basement. They were battle-fatigued and clamoring for Roberts to cut a deal. By then, key allies from within the Speaker's own ranks began telling him it was over. It was time to compromise. Lawmakers in the caucus say Roberts delivered an impassioned speech, calling his team courageous. They say he also claimed he knew there were double agents in his midst, relaying information back to the Corzine camp. "A few members betrayed the caucus, and I'm not sure they'll ever be forgiven," said one Assembly Democrat who requested anonymity. Within hours, Corzine walked out of his office and up to the Speaker's second floor office, looking determined. He was silent, but his chief of staff, Tom Shea, was wearing a wide grin. Behind closed doors, Corzine also agreed to state publicly that he would make it a "goal" next year to dedicate 100 percent of the sales tax revenue to property tax relief. Aides to Corzine say the language was just that, a vague way to help Roberts save face after a grueling battle. Reflecting on the experience and perhaps speaking for many others, the veteran Gormley said there are three basic rules for surviving the Statehouse: "Get along with the governor. Get along with the governor. Get along with the governor." Staff writers Deborah Howlett, Joe Donohue and Dunstan McNichol contributed to this report. © 2006 The Star Ledger © 2006 NJ.com All Rights Reserved. |
STATE BUDGET WAR IS OVER
Friday, July 07, 2006 BY JEFF WHELAN AND JOHN P. MARTIN Star-Ledger Staff Gov. Jon Corzine and Assembly Democrats settled their weeklong budget dispute yesterday, signaling an end to the government shutdown that put tens of thousands of New Jerseyans out of work, paralyzed the courts, closed parks and halted gambling in With the agreement, Corzine won his battle to raise the state's sales tax to 7 percent, which he called the first step in overcoming "years of failed fiscal policy and one-shot gimmicks" that left state finances in distress. But he also pledged to dedicate at least half of the new revenue to offset property taxes, a priority for the Assembly speaker, Joseph Roberts (D-Camden), who led opposition to the governor's budget. Corzine said the deal guarantees $5 billion in relief for property owners over the next decade. Legislators said they would work through the night to finalize details of the $31 billion spending plan and could vote on it later today. Restarting the government would follow. Corzine said the process could take a day or more; the casinos, for instance, might remain closed until tomorrow. "This is not a time for celebration or elation," Corzine said, announcing the deal in a late-afternoon news conference with Roberts and Senate President Richard Codey (D-Essex). "Far too many people's lives have been disrupted." The compromise followed a historic week that cost the state millions of dollars, pit the freshman governor against a freshman Assembly speaker, and laid bare the bitter intraparty politics that are likely to be recalled during election season, if voters need any help remembering. As the two Democrats waged a power struggle over the state coffers, hundreds of thousands of New Jerseyans were unable to collect a paycheck, complete routine tasks such as getting a driver's license, or visit a state park. Nowhere were the effects as visible as in The state lost $1.3 million in gaming taxes each day, and almost twice that much after suspending its lottery. Some of the would-be gamblers apparently flocked north to EERIE QUIET State beaches and parks were off-limits for a second day, and courts remained closed for all but emergency matters. At Superior Court in Corzine said the state's constitution mandated him to shut down the government when he and legislators couldn't agree on a budget by July 1. More than 45,000 "nonessential" state workers were told to stay home. Throngs of state employees and casino workers gathered in the Statehouse Annex courtyard for a rally to urge passage of the budget. A sign posted beside the main entrance stairs read: "Trump to Roberts, You're Fired." The governor's speech to lawmakers hit on largely the same points as his remarks in previous days. He insisted the state was drowning "in a recurring sea of red ink" and urged them to bring him a budget he could sign. But he was more stern, if not weary, drawing a round of cheers and a standing ovation when he pounded the podium and told them, "We can do this today! Today! Today!" By that time, the seeds of a deal had been planted. The governor had sent a new proposal to the Assembly Budget Committee Wednesday night, one that was slightly different from the compromise Codey brokered earlier in the week. Corzine has proposed a budget that would raise state spending by about $3 billion but includes $2 billion in spending freezes and cuts, including the elimination of 1,000 state jobs and 75 programs. It also calls for a $1.5 billion payment to reimburse state employees' pension fund. The latest deal leaves intact Corzine's proposal to increase the 6 percent sales tax to 7 percent, but adds a constitutional amendment -- subject to approval by voters -- to guarantee that half the revenue it generates over the next decade will go to property tax reform. And it makes raising that share above 50 percent a goal in future budgets. THE BREAKTHROUGH At noon, Corzine strode into Roberts' office in the Statehouse, heightening speculation that a deal was at hand. As details began to trickle out, some Assembly Democrats painted the proposal as a victory. "When we heard the (guaranteed) 10 years, we sat down briefly so he (Roberts) could explain what was being said," said Assemblyman Neil Cohen (D-Union). "There became a consensus that we'd moved the ball down the field." Others said the Democratic caucus was starting to show signs of a divide, fearful of an election backlash this fall. Assemblyman Jeff Van Drew (D-Cape May) disputed that contention, saying the question "was never about being afraid politically." But he said legislators knew it was time to move forward. "We were going to get to the point where people were literally not going to be able to pay their mortgages and their rents," he said. Republicans, who as the minority party were left to the sidelines during the dispute, couldn't find much to like about the compromise. Senate Minority Leader Leonard Lance (R-Hunterdon) said the proposal was overloaded with unnecessary taxes and spending. Others agreed. "When you talk to regular folks, they say they love Senate Democrats had sided with Corzine, but Codey played the role of negotiator between the governor and Assembly speaker. Codey acknowledged the compromise could have been reached 10 days ago, avoiding the showdown and the shutdown. "It's a fair criticism, but we struggled to find a new wrinkle to put into it, to make it attractive for the Assembly, to join on with us," he said. "That was the problem." 'UNFORTUNATE' Roberts, who became speaker in January, said he was gratified by the outcome and pleased that property tax reform became a cornerstone of the budget deal. "We should have all tried to resolve this earlier, and we clearly did try," he said. "It's unfortunate that it took this set of difficulties to get here, but I think this is a very, very fair resolution, good for the state and good for the taxpayers." Corzine said the outcome was not perfect. He called the deal "a halting first step" and said more changes are needed to prevent the crisis from recurring. "This absolutely must not happen again," he said. "Our budget process and procedure are flawed and we have an obligation to fix them." Staff writers Josh Margolin, Susan K. Livio, Tom Hester, Margaret McHugh, Kate Coscarelli and Dunstan McNichol contributed to this report. © 2006 The Star Ledger © 2006 NJ.com All Rights Reserved. |
Corzine's clout routs Roberts' rebellion
Friday, July 07, 2006 BY JEFF WHELAN AND JOSH MARGOLIN Star-Ledger Staff Hundreds of angry, out-of-work casino employees -- some brandishing bullhorns -- railed against Assembly Speaker Joe Roberts outside the Statehouse. Gov. Jon Corzine was signaling he was ready to dig into his personal fortune to air campaign-style television ads making the veteran South Jersey Democrat out to be the villain behind the first state government shutdown in And a late night committee meeting convened for one last stand backfired and left Roberts standing virtually alone. In less than 24 hours from Wednesday evening to yesterday afternoon, the Speaker's insurrection against the governor ended as a wall of political pressure came down on his shoulders. The kind of pressure only a governor can bring to bear. "It just took a while for the governor's operation to be revved up, and once it did, they folded like a house of cards," Assemblyman Kevin O'Toole (R-Essex) said. "It's everything: the money, the power of the office, his own personal largesse, his own personal chits that are out there. There are so many components and it was like they all -- at one time -- were in sync." By yesterday afternoon, less than two days after he defiantly declared Corzine's proposed sales tax increase was "dead in the General Assembly," Roberts found himself standing at a podium side by side with the governor. He was accepting a sales tax increase he had aggressively sought to kill. "We do owe the people of this state an apology. We have disrupted their lives. We have caused hardship," Roberts said. After days of heated rhetoric and political posturing, the unraveling of the Speaker's opposition began early Wednesday evening. Roberts and Senate President Richard Codey, who was acting as a peace broker, met Corzine in the governor's office at about 7 p.m. Corzine, seeking to jump-start talks with Roberts, offered a modified version of a compromise Codey had put forth weeks earlier. The issue was all about how the governor's proposed sales tax would be spent. The Speaker had said any sales tax increase was unacceptable unless "every single, solitary penny" went towards property tax reform. Codey had suggested splitting it down the middle -- with half going towards balancing the budget and half towards property tax relief. Corzine was now willing to sweeten that deal a little by seeking a constitutional amendment to dedicate that money to property tax relief for 10 years. By that time, word had spread around the Statehouse that earlier in the day, Corzine had met with his Washington, D.C.-based media consultant, Mike Donilon. The political adviser had written scripts for four television spots intended to put public pressure on Roberts to break the budget stalemate. But when Roberts emerged from the meeting, he appeared more entrenched than ever. He announced that Assembly Democrats were pushing forward with their own alternative budget that would eliminate Corzine's sales tax increase. Codey appeared dispirited and said he believed they remained at a standstill and that the governor would veto the Speaker's plan. Later that night, the Assembly Budget Committee held a hastily called meeting to consider a bill that would make casino regulators "essential employees," a law that would enable gaming halls to stay open in the event of a government shutdown. The powerful committee is chaired by Assemblyman Louis Greenwald (D-Camden), a key Roberts ally. The move was designed to take political heat off two Roberts allies: Assemblymen James Whelan and Jeff Van Drew, who both represent But Corzine's allies quickly hijacked the hearing. One of them was Sen. William Gormley, a powerful and savvy Atlantic County Republican who helped rally the casino workers' union behind the Democratic governor. During the hearing Gormley openly challenged Greenwald to pass a budget, and dismissed the chairman's invitation to join with the Assembly plan. "I think I'll support the governor, because he's not in the tank. Okay?" Gormley said. Then came a strategic parliamentary maneuver. Assemblyman Joseph Cryan (D-Union), made a motion to amend the bill so that all state workers would be classified "essential employees." Greenwald sought to block it, but Corzine's team had stacked the audience with state workers, who began to shout that they were out of work, too, and that they were just as essential as casino workers. The amendment passed. But the Cryan maneuver had essentially poisoned the bill. It stood no chance of passing the Assembly because of the constitutional issues it raised. The state constitution prohibits the state from spending money without a budget in place, but it makes an exception for employees essential to preserving the health, safety and welfare of residents. Making all 80,000 state workers essential would render the term meaningless and would never pass muster with the courts. "It was a critical turning point," one key Democrat and Corzine ally said. But the political theater also demonstrated Greenwald did not have firm control of the 11-member Assembly Budget Committee -- which was critical to Roberts getting his alternative budget through. Yesterday morning, Senate Majority Leader Bernard Kenny prowled the Assembly Chamber, twisting arms on the governor's behalf as Corzine prepared to deliver another speech. Word of the budget committee debacle had spread, and there was a sense that the battle had turned for the governor. Corzine stepped up the pressure with a fiery speech that chastised the Assembly Budget Committee for its lack of action and exhorted lawmakers to get a deal by day's end. He also publicly laid out the plan he'd mentioned to Roberts the night before. Moments later, Assembly Democrats gathered in their caucus room in the Statehouse basement. They were battle-fatigued and clamoring for Roberts to cut a deal. By then, key allies from within the Speaker's own ranks began telling him it was over. It was time to compromise. Lawmakers in the caucus say Roberts delivered an impassioned speech, calling his team courageous. They say he also claimed he knew there were double agents in his midst, relaying information back to the Corzine camp. "A few members betrayed the caucus, and I'm not sure they'll ever be forgiven," said one Assembly Democrat who requested anonymity. Within hours, Corzine walked out of his office and up to the Speaker's second floor office, looking determined. He was silent, but his chief of staff, Tom Shea, was wearing a wide grin. Behind closed doors, Corzine also agreed to state publicly that he would make it a "goal" next year to dedicate 100 percent of the sales tax revenue to property tax relief. Aides to Corzine say the language was just that, a vague way to help Roberts save face after a grueling battle. Reflecting on the experience and perhaps speaking for many others, the veteran Gormley said there are three basic rules for surviving the Statehouse: "Get along with the governor. Get along with the governor. Get along with the governor." Staff writers Deborah Howlett, Joe Donohue and Dunstan McNichol contributed to this report. © 2006 The Star Ledger © 2006 NJ.com All Rights Reserved. |
STATE BUDGET WAR IS OVER
Friday, July 07, 2006 BY JEFF WHELAN AND JOHN P. MARTIN Star-Ledger Staff Gov. Jon Corzine and Assembly Democrats settled their weeklong budget dispute yesterday, signaling an end to the government shutdown that put tens of thousands of New Jerseyans out of work, paralyzed the courts, closed parks and halted gambling in With the agreement, Corzine won his battle to raise the state's sales tax to 7 percent, which he called the first step in overcoming "years of failed fiscal policy and one-shot gimmicks" that left state finances in distress. But he also pledged to dedicate at least half of the new revenue to offset property taxes, a priority for the Assembly speaker, Joseph Roberts (D-Camden), who led opposition to the governor's budget. Corzine said the deal guarantees $5 billion in relief for property owners over the next decade. Legislators said they would work through the night to finalize details of the $31 billion spending plan and could vote on it later today. Restarting the government would follow. Corzine said the process could take a day or more; the casinos, for instance, might remain closed until tomorrow. "This is not a time for celebration or elation," Corzine said, announcing the deal in a late-afternoon news conference with Roberts and Senate President Richard Codey (D-Essex). "Far too many people's lives have been disrupted." The compromise followed a historic week that cost the state millions of dollars, pit the freshman governor against a freshman Assembly speaker, and laid bare the bitter intraparty politics that are likely to be recalled during election season, if voters need any help remembering. As the two Democrats waged a power struggle over the state coffers, hundreds of thousands of New Jerseyans were unable to collect a paycheck, complete routine tasks such as getting a driver's license, or visit a state park. Nowhere were the effects as visible as in The state lost $1.3 million in gaming taxes each day, and almost twice that much after suspending its lottery. Some of the would-be gamblers apparently flocked north to EERIE QUIET State beaches and parks were off-limits for a second day, and courts remained closed for all but emergency matters. At Superior Court in Corzine said the state's constitution mandated him to shut down the government when he and legislators couldn't agree on a budget by July 1. More than 45,000 "nonessential" state workers were told to stay home. Throngs of state employees and casino workers gathered in the Statehouse Annex courtyard for a rally to urge passage of the budget. A sign posted beside the main entrance stairs read: "Trump to Roberts, You're Fired." The governor's speech to lawmakers hit on largely the same points as his remarks in previous days. He insisted the state was drowning "in a recurring sea of red ink" and urged them to bring him a budget he could sign. But he was more stern, if not weary, drawing a round of cheers and a standing ovation when he pounded the podium and told them, "We can do this today! Today! Today!" By that time, the seeds of a deal had been planted. The governor had sent a new proposal to the Assembly Budget Committee Wednesday night, one that was slightly different from the compromise Codey brokered earlier in the week. Corzine has proposed a budget that would raise state spending by about $3 billion but includes $2 billion in spending freezes and cuts, including the elimination of 1,000 state jobs and 75 programs. It also calls for a $1.5 billion payment to reimburse state employees' pension fund. The latest deal leaves intact Corzine's proposal to increase the 6 percent sales tax to 7 percent, but adds a constitutional amendment -- subject to approval by voters -- to guarantee that half the revenue it generates over the next decade will go to property tax reform. And it makes raising that share above 50 percent a goal in future budgets. THE BREAKTHROUGH At noon, Corzine strode into Roberts' office in the Statehouse, heightening speculation that a deal was at hand. As details began to trickle out, some Assembly Democrats painted the proposal as a victory. "When we heard the (guaranteed) 10 years, we sat down briefly so he (Roberts) could explain what was being said," said Assemblyman Neil Cohen (D-Union). "There became a consensus that we'd moved the ball down the field." Others said the Democratic caucus was starting to show signs of a divide, fearful of an election backlash this fall. Assemblyman Jeff Van Drew (D-Cape May) disputed that contention, saying the question "was never about being afraid politically." But he said legislators knew it was time to move forward. "We were going to get to the point where people were literally not going to be able to pay their mortgages and their rents," he said. Republicans, who as the minority party were left to the sidelines during the dispute, couldn't find much to like about the compromise. Senate Minority Leader Leonard Lance (R-Hunterdon) said the proposal was overloaded with unnecessary taxes and spending. Others agreed. "When you talk to regular folks, they say they love Senate Democrats had sided with Corzine, but Codey played the role of negotiator between the governor and Assembly speaker. Codey acknowledged the compromise could have been reached 10 days ago, avoiding the showdown and the shutdown. "It's a fair criticism, but we struggled to find a new wrinkle to put into it, to make it attractive for the Assembly, to join on with us," he said. "That was the problem." 'UNFORTUNATE' Roberts, who became speaker in January, said he was gratified by the outcome and pleased that property tax reform became a cornerstone of the budget deal. "We should have all tried to resolve this earlier, and we clearly did try," he said. "It's unfortunate that it took this set of difficulties to get here, but I think this is a very, very fair resolution, good for the state and good for the taxpayers." Corzine said the outcome was not perfect. He called the deal "a halting first step" and said more changes are needed to prevent the crisis from recurring. "This absolutely must not happen again," he said. "Our budget process and procedure are flawed and we have an obligation to fix them." Staff writers Josh Margolin, Susan K. Livio, Tom Hester, Margaret McHugh, Kate Coscarelli and Dunstan McNichol contributed to this report. © 2006 The Star Ledger © 2006 NJ.com All Rights Reserved. |
