HOLY COW – PIGS REALLY DID FLY! Corzine’s Fiscal Restructuring Agenda: Shift From Near Dead “Toll Hike”, To Budget Reduction

The governor conceded Thursday that his toll road plan has little support and that he may have to settle

According to three lawmakers, Tuesday’s Budget presentation is going to call for a $250 million budget reduction in likely response to the Governor’s “almost dead” toll hike scheme (Trenton finally heard our LOUD VOICES!!!)

READ IT HERE

Beck and Scanlon Reaching Out With Town Hall Meetings Of Ther Own

Seeking input from us taxpayers on alternatives for fixing the budget crisis

Read the article by clicking NJCommunity.blogspot right here

Corzine’s Public Benefit Corp all but dead thanks to “A Different Road”

Corzine says the state is nearly broke: Wisniewski challenges that statement head-on:

“New Jersey maintains an “AA-’ bond rating on Wall Street. “Goldman Sachs, who everybody would acknowledge is a world-class financial operation on Wall Street, shares exactly the same financial rating as the State of New Jersey,” Wisniewski said. Corzine used to run Goldman Sachs.

Corzine’s Public Benefit Corp is likely all but dead thanks to Assembly Transportation Committee chairman John Wisniewski’s recommended plan.

Although the 18 cents gas tax hike may not be the ultimate answer, it does have a much more reasonable moderate Toll increase schedule and he does have the Trenton Legislators buzzing about it. The problem as I see it however, is that IT DOES NOT ADDRESS THE ROOT CAUSE. In other words, there’s nothing in the plan that calls for CUTTING spending (only freezing). Some Republican legislators, (preferably a newly elected official(s) like Scanlon/Casagrande/Beck?) need to submit another alternative that may incorporate “a modest” gas tax with across the board cuts.

Wisniewski’s plan would not cut state debt, which is a key element of Corzine’s proposal to raise tolls by roughly 800 percent by 2022 and by inflation from then on. Corzine has said reducing debt could save the state $1 billion a year in interest payments over the next decade.

But Wisniewski said his plan would more fairly spread the costs among all motorists.

“An 800-percent toll increase was going to fund transportation. I find that unacceptable,” Wisniewski said.

He said Corzine’s proposal would unfairly hit seven counties, including Middlesex, Monmouth and Ocean, that rely on the state’s toll roads while asking much less of the rest of the state. Wisniewski’s alternative would roughly double tolls by 2018 and would direct the money raised back to projects on the toll roads.

Corzine’s proposal would halve the state’s $32 billion debt, at least temporarily, and fund up to 75 years of transportation projects.

Under Wisniewski’s plan:

• The gasoline tax would grow by 18 cents, with inflationary increases following to fund transportation projects.
• On the Parkway, tolls would grow from 35 cents now to 75 cents in 2018. Corzine’s plan would raise the same toll, in four installments, to $2.70 by 2022.
• The Turnpike would see three 25-percent toll hikes in place of Corzine’s four increases of 50 percent plus inflation. That means today’s $1.20 average trip would cost $2.35 in 2018 under the Wisniewski proposal, compared with the $9.85 by 2022 called for by Corzine.
• A 50-cent Expressway toll would become $1 by 2014, compared with $4.05 by 2022 under Corzine’s plan.

Wisniewski also endorsed the same spending controls as Corzine, and even tighter restrictions on new borrowing.

“The governor is pleased that an active dialogue has emerged on how to put New Jersey on the path to fiscal responsibility while also recognizing the need to fund critical, long-term infrastructure improvements,” Corzine spokeswoman Lilo Stainton said.

Other lawmakers react

A Democrat whose support is key to Corzine’s plan, Sen. Raymond Lesniak, D-Union, applauded Wisniewski’s approach. Lesniak, who is sponsoring the Corzine proposal, said it will be much easier to convince toll-road drivers to support fee increases if they see the funding coming back to the highways they use.

“The governor trying to do everything all at once in one big bundle; that’s too complex to do it all in one way,” Lesniak said.

(That’s Trenton talk for: I’m not supporting Gov. Corzine’s plan any longer)

He said that once the state finds a source of transportation funding, a separate debate can begin on reducing debt.

But Senate Majority Leader Stephen Sweeney, D-Gloucester, said talk of a gas-tax hike is premature.

“Right now, there’s no reason to talk about a gas tax, there’s no reason to talk about toll increases until (Corzine) presents his budget,” Sweeney said.

Corzine is scheduled to lay out his plan Tuesday, and Sweeney, like other lawmakers, has called for reduced spending to alleviate the state’s financial problems.

Wisniewski disputed Corzine’s assertions that the state is nearly broke.

“Bankrupt really means that you’re insolvent, that you can’t pay your bills. That’s not a situation where New Jersey is at. We can pay our bills,” Wisniewski said.

He said New Jersey maintains an “AA-’ bond rating on Wall Street, similar to most other states.

“Goldman Sachs, who everybody would acknowledge is a world-class financial operation on Wall Street, shares exactly the same financial rating as the State of New Jersey,” Wisniewski said. Corzine used to run Goldman Sachs.

New Jersey’s debt costs the state $2.6 billion in payments each year, and growing pension and health care liabilities cost another $2.2 billion a year, according to the administration. Corzine has said those payments severely restrict the state’s ability to pay for needed programs and repairs.

Corzine’s Toll Road Plan in the Works for Years

From our friends at Millenium Radio:

If you think Governor Jon Corzine’s Financial Restructuring and Debt Reduction proposal is an entirely new plan, think again. A look back to the year 2005 reveals Corzine has been mulling the idea of doing something on a very grand scale for a very long time.

In July 2005, then-United States Senator and candidate for Governor, Jon Corzine was talking about ways to replenish the fiscally struggling Transportation Trust Fund. He said, “Selling long-term assets for a long-term acquisition of additional assets, capital assets, is a strategy that I think makes some sense.” He was asked if increasing tolls should be explored as well. Corzine answered, “I would like to look at other means of finding the way to fund this Transportation Trust Fund without making New Jersey even less affordable…..I guarantee you we will find a way to do that and the last resort is the gas tax. It’s going to be a complicated resolution of a problem, but we can make it happen.”

A “Corzine for Governor,” press release dated July 11, 2005 reads, “Given the recent spike in oil and gas prices that are squeezing family budgets, we must find other alternatives to raising the gas tax. As this report clearly highlights, we cannot simply enact stop-gap solutions that just buy time until the next crisis. We need fundamental reform. For example, we must explore new ideas such as repositioning assets, including state-owned land adjacent to train stations and major state highways to allow us to make critical transportation investments.”

Under the Governor’s current plan there will be no toll increases in 2008 or 2009, the year before and the year of the next gubernatorial election. In 2010, tolls will be hiked 50% plus the rate of inflation for 08 and 09. The tolls will be increased by 50% every four years after that while also factoring in the rate of inflation.

The Corzine Administration uses $1.21 as the average a toll road commuter pays per day. Under the plan, in 2010 that would go up to $2.05. In 2014, the total would be $3.46. In 2018, it will be $5.84 and in 2022, the final year of the scheme the total will be $9.86. That means a toll road commuter will be paying more than eight times what he or she is paying today to take the same ride in 2022. Tolls would continue to be increased at the combined rate of inflation every four years until the 75-year life of the plan is over.

Corzine wants to pay at least half of $32 billion in state debt and fund transportation projects for 75 years by creating a nonprofit corporation to manage toll roads and borrow up to $38 billion.

The Governor has been hinting at deep and painful spending cuts which he vows to unveil in his Budget Address next week. Last week, Corzine warned that if the State doesn’t get its fiscal house in order, property taxes could skyrocket, college tuitions could soar and hospitals could close. New Jersey has long suffered with chronic financial woes and it is reasonable to surmise Corzine knew of these problems in 2005 as well, but that hasn’t stopped State spending from rising with him at the helm.

Corzine inherited a State Budget of $27.9 billion when he took office in 2006. His first spending plan totaled $30.8 billion and the current budget stands at $33.5 billion. That’s a 20.1% increase under Corzine’s watch. He now insists the State must slash $2.5 billion just to freeze spending at the current $33.5 billion level.

Jersey Towns Could Be Ready to Speak Out Against the Corzine Toll Hike Plan

Millennium Radio 

As Governor Corzine presses ahead with his proposal to increase tolls 800 percent, he may soon be faced with an unexpected problem.

Last week Toms River passed a resolution strongly opposing the plan, and other towns all over Jersey could soon follow suit.

Bill Dressel, the Executive Director of the Jersey League of Municipalities, says his group does want to work with the Governor to improve the State’s fiscal situation, “but we’re not prepared at this point to sign off on this proposal – because I think this proposal is in a state of flux – I think it’s going to have to be changed…it’s difficult for us to be able to come up with a conclusion that this specific proposal is the right proposal at this point.”

He says he’s heard concerns from Mayors and other local leaders that raising tolls 800 percent would be unfairly burdensome for certain communities, and there are also fears about more trucks diverting off the Turnpike onto local roads – so “there may be a combination of revenue raisers that might have to be considered – but first and foremost, before we get into that discussion, we’ve got to see what the budget is going to bring on the 26th.”

The Governor has indicated he will present his proposed budget at the end of this month, and he says it could include budget cuts that might be very unpopular in certain circles.

The Corzine Cosa Nostra hard at work: Governor enlists wealth of lobbyists who could gain from toll-hike plans

The 54 people hand-picked by Gov. Corzine to promote his toll-hike plan include lobbyists whose clients could gain from the project and 10 people linked to a construction advocacy group promoting opportunities to network with state leaders.The panel’s chairman and two other members work for the state’s three top lobbying firms, The Record of Bergen County reported for Sunday. They represent engineers, financial companies, resorts, and utilities, all industries with the potential to benefit if the governor’s multi-billion-dollar financial restructuring plan is approved.

Ten of the appointees are connected to the construction advocacy group Alliance for Action. Three others are top executives with Verizon, Trump Entertainment and Public Service Electric and Gas Co., businesses that have benefited from prior laws.

“There’s not a common denominator beyond wanting New Jersey to be a better place,” said Corzine spokeswoman Lilo Stainton.

Corzine’s financial restructuring plan includes sharply higher tolls, the revenues from which will be used to pay down state debt and fund transportation projects. Tolls on the Turnpike, Parkway and Atlantic City Expressway would be affected.

Critics complain that Corzine’s panel lacks regular highway commuters.

Michael Riccards, executive director of the Hall Institute, a public policy group, suspects varying motives among committee members.

“There are people who are genuinely concerned and believe the governor has given them a plan to get out of the wilderness,” said Riccards. “There (also) are people who are looking to make a buck off this.”

Corzine & Lautenberg’s Toll hike opposition: “This has electoral consequences”

…said Brigid Harrison, a political scientist at Montclair State University. “The strength of the relationship between Corzine and Lautenberg was important. Now there’s this kind of one-upmanship. It’s surely going to be escalating.”

Article in today’s Ledger:

Lautenberg facing fury of a governor scorned

BY JOSH MARGOLIN AND DEBORAH HOWLETT

U.S. Sen. Frank Lautenberg’s opposition to Gov. Jon Corzine’s highway toll plan has opened a rift between the two men that could affect the senator’s re-election bid.

The senator announced last week that he would not support Corzine’s call for higher tolls as part of a plan to restructure the state’s finances. The statement came after all three Republican candidates for Lautenberg’s seat came out against the toll plan.

Lautenberg’s announcement was a surprise and led one senior Corzine aide to tell top Democrats that the governor would retaliate by ceasing his fundraising efforts, and canceling a Manhattan fundraiser to be held next month at the home of a Corzine friend.

In an interview yesterday, Corzine declined to comment on the aide’s threat. Asked about Lautenberg’s opposition to the toll plan, the governor said: “I don’t agree with his judgment on this particular situation. We see it differently.”

The governor’s top political adviser, Tom Shea, said the governor “will continue to assist in (Lautenberg’s) fundraising efforts,” and added that the March fundraising gathering would still be held.

“But it is safe to say,” Shea said, “that it will be more difficult to raise money from the governor’s strongest supporters in light of (Lautenberg’s) statement on the governor’s plan.”

Lautenberg campaign manager Brendan Gill said the senator had no comment.

State Senate Majority Leader Stephen Sweeney said Lautenberg’s announcement last week was not “helpful” to the governor, especially because the senator needs Corzine’s assistance in his campaign.

“It causes a problem if the governor doesn’t push people to help and donate,” Sweeney (D-Gloucester) said. “If his heart’s not in it, of course, it’s going to be a problem. Fundraising stinks to start with.”

Lautenberg, a four-term incumbent, is facing a potentially tough and expensive race this fall. Though no one in the GOP field is as well-known as Lautenberg, one of the Republicans, Anne Evans Estabrook, is a businesswoman whose personal wealth alone could make her a formidable challenger.

READ THE REST HERE

I told you YOUR VOICE COUNTS, NJ Community; The Tide is turning against toll hike plan

Entire legislative GOP, Adler, Lautenberg announce opposition

BY DUNSTAN McNICHOL AND TOM FEENEY Star-Ledger Staff

Gov. Jon Corzine’s plan to cut state debt and fund transportation projects by sharply hiking tolls ran into deep political trouble yesterday, with every Republican in the Legislature and a key Democratic senator vowing to oppose it.

The flurry of announcements from legislative leaders came hours before the Democratic governor made his latest pitch directly to the people at a town hall meeting in Atlantic County, where a crowd of more than 750 gave him a mixed reception. It was the 10th such forum hosted by Corzine, who plans to visit all 21 counties.

Yesterday’s developments leave Corzine with little margin for error if he is to win approval of the toll- hike plan, which he calls critical to righting the state’s shaky finances.

He needs 21 votes to secure passage in the 40-member Senate. Without any GOP support — and with the opposition of Sen. John Adler (D-Camden) — the governor has no more than 22 votes, and even they are not assured.

Last night, Senate Democratic leaders conceded that the Corzine plan, as presented, will not have enough votes to pass.

That does not mean, however, the proposal is dead, Senate President Richard Codey (D-Essex) said. Codey said he is confident the governor and lawmakers will reach a compromise that can win approval in the Senate.

“I would say that the issue of the toll hikes is far from decided,” Codey said. “We’re going to do fis cal restructuring, certainly, in some manner, and I expect a large por tion of the governor’s program to be enacted.”

Senate Majority Leader Steve Sweeney (D-Gloucester) said there is a “willingness” among skeptical Democratic senators to negotiate with Corzine.

“He has to present something that’s somewhat of a change from where it is,” Sweeney said. “But I think that’s the process. I think he’s willing to make changes.”

Corzine has more breathing room in the Assembly, where Democrats hold a 48-32 edge.

CONTINUE READING IT HERE

…and therein lies Jon Corzines problem…

Two months after we the people rejected Corzine’s little $450 million in new borrowing for his stem-cell initiative, he stood before the state legislature and informed that the state was in a deep financial crisis – that NJ borrowed much more than it can pay back and something must be done…

SO: if in January, he “fesses up to the obvious”, why two months earlier is he pushing to borrow another $450 million???

Very interesting read from our friends at inthelobby.net

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

After his successsful sneak attack on Pearl Habor, Japanese Admiral Isoroku Yamamoto is said to have lamented, “I fear all we have done is to awaken a sleeping giant and fill him with a terrible resolve.”

Fast-forward 66 years, and you have to wonder: Does Jon Corzine suspect that he may have done the same thing?

Call it what you will, but something is happening in the New Jersey electorate. It started in November, when voters who were smarter than their government rejected $450 million in new borrowing to pay for the operating costs of stem cell research centers that the state had already agreed to borrow $270 million to build.

Corzine, who sunk at least $100,000 of his own money into a pro-stem cell advertising campaign, was stunned when it didn’t pass, after pollsters and pundits and his own sensibilities had assured him it would.

Two months after that defeat, he stood before the state Legislature and solemnly exclaimed that New Jersey was in a deep financial crisis. The state had borrowed to the point of excess; debt service was eating up the budget, and something must be done.

His plan, as we all now know, was to turn control of the toll roads to a Public Benefit Corporation, which could sell bonds off the toll roads and raise tolls by 800 percent.

So here’s a question Corzine’s never answered: If he knew that the borrowing was eating the New Jersey budget alive in 2007 – as he surely did – why in the world was he out there promoting the sale of another $450 million in bonds?

And therein lies Jon Corzine’s problem.

He may not have connected the dots, but the public does. Corzine is no different than other politicians when it comes to spending our money on programs he thinks we should have — even if we can’t afford it.

That point became even clearer after his administration admitted that they also plan to go out and bond for another $2.5 billion in school construction – even though the state had already wasted more than $6 billion with very few schools to show for it the first time around.

For all his talk about putting the borrowing to the public, he doesn’t mean it. How can he? Corzine has given every Trenton politician a “Get Out of Jail” card when it comes to borrowing. As long as they declare that the bond issue would be paid for by an existing tax stream, it doesn’t have to go before the voters.

And that will stop borrowing how?For all his talk, Corzine’s vaulted promise that all future borrowing would go before the voters isn’t worth the paper it’s printed on.

Trenton politicians – heck, all politicians – want what they want when they want it. Corzine wanted to be a player in stem cell research. He wants to build new schools. The state doesn’t have any money, but why let that stand in the way of his legacy?

Only one problem. The voters said no to stem cell research.

He won’t make that mistake again. That’s why he says the school construction doesn’t need to go to the voters. And why he won’t put his massive $38 billion toll hike scheme before the voters.

Technically, he says it’s because they’ll both have dedicated funding (taxes on school construction, toll hikes on the toll roads.) The reality, however, is much simpler.

He can’t trust us not to say no.

When he went into the belly of the beast this week – Monmouth and Ocean counties, two areas that will be hurt the most by the toll hike plan – Corzine was likely not expecting the level of anger he heard from the residents.

And he was probably stunned that they knew all about his inconsistencies: agreeing to raises for judges, despite the state being broke; shouting down his attempts to say that any cuts in the budget would result in hospitals closing; and generally demanding that the government cut itself, before he asks them for any more money.

We love how whenever the governor is questioned on why he is forcing the state’s burden on such a small segment of the population, he pipes up with how frequent commuters could get a discount of 20 to 25 percent.

As if turning an 800 percent toll hike into a 600 or 660 percent toll hike somehow makes it fair or acceptable.

The real reason that Corzine wants commuters and those who drive the toll roads to pay an 800 percent increase is purely political: it affects fewer people than an overall hike in the gas tax, combined with significant spending cuts, would.

Want proof? Check out this map developed for the Asbury Park Press by City University finance professor Jonathan Peters. It shows where the highest concentration of E-ZPass users live in New Jersey.

Three guesses what counties appear hardest hit – Monmouth, Ocean, and Middlesex. The bulk of the counties don’t have significant numbers of E-ZPass drivers, according to this map.

It’s the same reason he’s putting off the toll hikes until the year after he and the state Legislature stand for re-election.

But Corzine couldn’t be that cynical, could he?

What the governor underestimated – as he underestimated in the stem cell research vote – is that New Jerseyans aren’t stupid. Their rising property tax bills have ended whatever complacency they once had.

They love their state, but they either can’t afford to live here, or are afraid they won’t be able to in a few years.

There’s a reason why more people are leaving New Jersey than coming in.

The people of New Jersey recognize that the politicians who are running their state government don’t understand that the status quo no longer works. That government spending is not the answer to their problem; it is the source of their problem. That government’s efforts to protect the bureaucracy are harming their families.

They understand that an 800 percent toll hike will mean all New Jerseyans will pay more for food, clothing and goods. That businesses like shipping and warehouses and distribution may move to other states, and take their jobs with them.

They know that families in New Jersey are forced to make hard choices every day in order to make ends meet, and government should have to make those same hard choices – before they go to the people and ask them for more.

A larger government will not make the lives of New Jersey families any better. A larger paycheck, and fewer taxes – and tolls – will. New Jerseyans are willing to make some sacrifices in order to fix the fiscal mess, but they’re not willing to be the only ones –and they want the government to be cut down to size first. Otherwise, the people know that despite what Corzine says, the government will go on, spending money it just doesn’t have.

Corzine’s already doing it – his new school funding formula expands government by mandating preschool education for low-income students, without identifying how he’s going to pay for it.

Whatever hopes the governor had that he could rush this plan of his through the Legislature has fallen wayside to the anger of the public. Tomorrow, there will be a rally at noon at the Statehouse, sponsored by NJ101.5 radio, to show voter discontent. The only way Trenton will listen is if they fear the wrath of the voters. A large crowd will make them notice.

In 1941, it was bombs over Pearl Harbor that awakened the anger of America. In 2008 New Jersey, it may well be pigs flying over the Statehouse.

Either way, New Jersey is awake. Let’s see how many politicians in Trenton start paying attention.

Ah Gov. Corzine’s “Thing Of Ours”: Toll plan consultants paid $7.3 million, so far

TRENTON — Gov. Jon S. Corzine’s administration has already spent about $7.3 million of taxpayer funds preparing his toll road plan, according to the Treasury Department.

The amounts include $3.9 million for law firm Skadden, Arps, Slate, Meagher & Flom, LLP, $1.6 million for engineering consultants the Halcrow Group, nearly $900,000 to Steer, Davies, Gleave, which studied traffic flow, and about $800,000 for lawyers at Hawkins, Delafield and Wood, LLP, Treasury spokesman Tom Vincz said Friday.

Up to $380,000 more could be spent on professional services if his plan goes through.

(And don’t forget the “roughly” 1% fees related to the actual offering – and yes: we’re talking roughly $380 million – and that’s a conservative “1%”) 

Corzine hopes to raise up to $38 billion, through sharp toll increases, to halve state debt and fund decades of transportation projects. The costs of borrowing that much money could be up to 1 percent of the final deal, although Corzine aides have said they hope to keep it lower, possibly down to one-quarter of 1 percent. (too bad Governor Corzine has no credibility)

The toll plan could last up to 99 years under the draft legislation unveiled by Corzine’s office Monday. The 80-page bill says the deal, which would give control of the toll roads and toll revenue to a new, independent, nonprofit organization for 75 years to start, could be extended for up to 24 years more.

The plan calls for sharp toll hikes starting in 2010 and continuing every four years through 2022, and then inflationary increases later. The inflationary bumps would be at least 2 percent a year and capped at 5 percent a year, under the proposed legislation.

Corzine has proposed the deal as part of a large fiscal restructuring proposal. He has also called for limiting government spending and giving voters’ more oversight on public borrowing.

Assemblyman Richard Merkt, R-Morris, said, over time, the plan could give the new independent agency control of $196 billion in toll revenue. Merkt, citing an analysis by the nonpartisan Office of Legislative Services, said giving up control of so much money amounts to “stealing from future generations.”

“Given the enormous amount of money involved, the opportunities here for massive political corruption, fraud, waste, and mismanagement are unprecedented,” Merkt said in a news release.

Corzine has said there would be tight controls over the toll revenue collected by the new “public benefit corporation” that would run the roads. After the PBC pays its debt service, operational costs and funds projects on the toll roads, any excess money would come back to the state for other transportation needs, keeping “profits” in public hands, Corzine has said.

(Two thoughts: School Construction Corp., Transportation fund: both loaded with cash at the start, and close to bankrupt – with nothing to show for it) 

Corzine and his aides have said there would be state oversight of the spending, some of which is spelled out in the bill. The PBC would be subject to federal accounting laws. Any information it gave to the state would be subject to public disclosure laws. Most types of contracts would be publicly bid. It would have 10 to 15 directors and would be subject to fines for failing to meet state-imposed standards.

Government would not have a direct hand in running the PBC, but a citizens’ oversight board, with seven members from government and eight from the private sector, all appointed by the governor, would vote on the directors of the PBC, giving some indirect say in how it operates.

Also Monday, Republican U.S. Senate candidate Anne Estabrook and Steven Lonegan, executive director of the conservative Americans for Prosperity, each announced advertising campaigns opposing the toll road plan.

On the other side, Corzine picked up his second endorsement from a sitting congressman as Rep. Rush Holt, D-Hopewell, backed the plan.

(Senator Holt – you’re next to go. Enjoy your last term!) 

Jonathan Tamari: jtamari@gannett.com