Senator Jennifer Beck says Fox should not be leading the BPU

State Senate Judiciary Committee Member Furious Over Plan to Keep Jeanne Fox as President of the BPU

The good news is that Fox must be confirmed by the committee to be re-appointed

A member of the State Senate Judiciary Committee is strongly criticizing Governor Corzine's decision to re-appoint Jeanne Fox to a new six year term as President of the Board of Public Utilities.

Senator Jen Beck says Fox should not be leading the BPU because she's under investigation for "taking some 83 million dollars off-budget, and using that money to hand out grants to what seemed to be politically connected people…both the Feds and the State are investigating this - they've had some difficulty because she shredded many of the record that were associated with that grant giving."

Beck says another problem with re-appointing Fox is that "she's in the middle of a whistle blower lawsuit, and she has been politicizing the BPU with a number of patronage jobs."

A spokeswoman for the BPU says "unfortunately, Senator Beck appears to be unfamiliar with the BPU's accomplishments under President Fox's leadership, and to have relied upon factual errors to form her opinions…President Fox looks forward to speaking directly with the Senate Judiciary Committee on her full record of achievement, answering any questions on that record, and talking about why she is a prudent choice for shepherding New Jersey's utility policies."

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

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

With the almost universal rejection of Gov. Corzine's plan to raise tolls by up to 800 percent, few who attended a forum Thursday led by two harsh critics of the proposal thought the session was going to be a love fest.

But of the more than 100 people who came to Mahala F. Atchison Elementary School for the two-hour session — led by state Sen. Jennifer Beck and Assemblyman Declan O'Scanlon, both R-Monmouth — several said they came searching for better solutions to the state's budget crunch.

Veronica Cozzi, a borough resident, wanted to know why the state couldn't sell New Jersey's horse racing tracks to private corporations. And Christopher Cast, also a borough resident, just wanted to know how he could continue to drive 40,000 miles a year on New Jersey's toll roads without going broke trying to make a living.

Beck and O'Scanlon said they have a solution: no increase in the state budget this year, make cuts in future budgets and restructure the way government business is done.

"If we do these three things, we think, we're going to come real close to solving our problems," O'Scanlon said.

In a presentation lasting about an hour, the lawmakers outlined their plan, which includes a two-thirds reduction in 1,300 "non-essential, political personnel" from the state's payrolls. That move would save an estimated $50 million, they said.

Beck and O'Scanlon also propose eliminating cost-of-living pay increases for state workers making more than $80,000, for an estimated savings of $116 million, and eliminating a sick leave injury program for state workers. Beck called the program redundant because those employees already are covered by worker's compensation laws. That move would save $2.5 million, according to the proposal.

Pension reforms

Beck and O'Scanlon also propose radical changes to the state pension system, such as eliminating benefits for part-time employees and allowing full-time employees to receive a pension from only one job. The pair estimated savings from those reforms could put $4 billion back into the state's coffers.

It was a message that was well received by those who attended.

"I think you're right on the mark with the spending cuts," said Duane Morrill, a Tinton Falls councilman, echoing the remarks of many who addressed the legislators. "We're all trying to do more with less. Why can't Trenton?"

Corzine wants to raise tolls to cut the state debt in half and fund transportation projects.

The governor's plan calls for forming a public benefit corporation to run the Garden State Parkway, New Jersey Turnpike and Atlantic City Expressway. The corporation would increase tolls up to 800 percent, according to a schedule that would allow the state to borrow between $32 billion and $38 billion against toll revenue.

Of that, $16 billion will be used to pay off half the state debt and the rest to fund transportation projects and replenish the transportation trust fund, which runs out of money in 2011.

Corzine offered toll discounts of 20 to 25 percent for frequent drivers, funding commuter rail service to interior Ocean and Monmouth counties and widening and upgrading Route 9 as benefits.

"It will kill me," Cozzi said. "It'll hurt. It really will."

Zero support

But Bob Kelly of Oceanport isn't worried. With the entire Republican minority in the Legislature against the plan and no Democrats so far casting their lots with Corzine, the plan is nearly dead already, he said.

"The governor's plan is going to flop, flat out," Kelly said. "It's going to fail."

Earlier this week, both the Tinton Falls Board of Education and the Borough Council passed resolutions opposing Corzine's toll plan, adding to a growing number of municipalities lining up against it.

"The state needs to stop coming up with creative ways to tax us and start looking for new ways to cut spending," said Council President Michael Skudera during the forum.

Some lawmakers have suggested lesser toll increases, gasoline tax increases, massive spending cuts and not paying off state debt with toll money.

Cast, who spends a good amount of time on New Jersey's toll roads for his job, said the jury is still out on the plan outlined by Beck and O'Scanlon. But they were on the right track.

"If it involves cutting spending, I'm for it," Cast said.

NEXT TOWN HALLS:

Wed. Feb27th:

Hightstown HS 7:30 - 9:30

25 Leshin Lane, Hightstown NJ 08520

Tues Mar 4th:

Freehold Twp Senior Center 7:00 - 9:00

116 Jackson Mills Road, 07728

Keith Brown of APP reported on this story

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.

Public Benefit Corp: The Few, the Privileged, the “Corzine Cosa Nostra”

Does this governor has credibility? NO

Do you think that this governor has our best interest in mind when creating this piggy bank for “the few, the privileged, the Corzine Cosa Nostra”? NO

Do you trust him? NO

Will you vote for him (should he attempt to ever run for any office) again? NO

Will you vote for any legislator that goes along with him? ABSOLUTELY NO

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

This is in the App: (highlights and comments are my own)

Gov. Corzine would bar the public from examining the inner workings of the toll-road corporation that he wants to create to raise $32 billion, even though it would employ thousands and spend billions of dollars, according to his proposed bill.

Under Corzine’s draft legislation for the toll-road monetization plan, the proposed Public Benefit Corp., which would operate more than 334 miles of state roadways and could increase tolls by as much as 800 percent in the next 14 years, would not be subject to the state’s Open Public Records Act. By failing to put the PBC under the open records law, it would omit from public scrutiny broad swaths of records from an organization that would have an initial toll revenue of about $900 million.

Not opening the PBC up to full public inspection would be “unconscionable,” said state Sen. Jennifer Beck, R-Monmouth, who opposes the monetization plan.

“I’m stunned. This entity would be in control of a significant public asset, and controlling multiple billions of dollars, and billions of billions over the next 99 years,” Beck said. “To me, it must be subject to (the Open Public Records Act), so there is transparency for the citizens.”

Under Corzine’s plan, the state would lease its three toll roads to the nonprofit corporation for up to 75 years, with a 24-year optional extension.

In exchange, and through a complex bond deal, the state would receive $32 billion to $38 billion that would be used to help the state cut its debt and provide more money for transportation needs, according to the plan.

The plan has generated strong opposition in public opinion polls and from all Republican members of the Legislature. U.S. Sen. Frank R. Lautenberg, D-N.J., and state Sen. John Adler, a Democrat running for Congress, also oppose the toll-hike plan.

Corzine, a Democrat, wants the Legislature, controlled by his party, to approve the plan this spring. The agency would control the New Jersey Turnpike, Garden State Parkway and Atlantic City Expressway.

The Open Public Records Act, or OPRA, was signed into law in 2001 following a campaign by Gannett New Jersey newspapers and other open government advocates to allow easy access to such routine documents as payroll lists and bills. Until the law was adopted, many agencies withheld such records from the public.

“The PBC is being formed under nonprofit law and would be treated as a conventional nonprofit, none of whom are subject to OPRA,” Tom Vincz, spokesman for the state Department of Treasury, said in an e-mail response to questions from Gannett.

He did not respond to questions about why the PBC would not be covered by OPRA, or if payrolls, bills and other items commonly accessible under the law would be available in the future.

Nonprofit organizations must provide limited public financial disclosure, such as the salaries of the top five employees and basic budget data, to the Internal Revenue Service once a year.

Under Corzine’s proposal, the PBC would have to produce reports to its oversight agency, including annual budgets, capital expansion and maintenance programs. Such documents would then be public under the public access law.

Vincz said that the PBC’s operating contract would also “create a long series of other reporting including maintenance reports and traffic data,” that would become public records once the oversight agency obtained them.

Under the bill, the PBC would be required to conduct independent audits of its financial statements, Vincz wrote.

Elizabeth Mason, president of the New Jersey Foundation for Open Government, said to excluded the PBC from the records law is the opposite of what the state should be doing.

“What is the rationale for the government to do this? What is the rationale for the government to hide this information from the public?” she asked.

(I keep saying it over, and over again… it’s called THE CORZINE COSA NOSTRA - that’s the reason)

Thomas J. Cafferty, general counsel for the New Jersey Press Association, a newspaper trade group, said that neither he nor the association has finished reviewing the proposed legislation.

But he said that just because the bill does not require the PBC to fall under OPRA doesn’t mean that the proposed bill can’t be changed in the Legislature. The courts could also require the PBC to disclose its records, “given the extent of the public involvement in this entity,” he said.

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James W. Prado Roberts: (732) 643-4223; or jwr@app.com