In The Lobby

GOV. JON S. CORZINE -- OR SHOULD WE SAY, MCGREEVEY-LITE?

July 24, 2008

By JONNY B. GOODE

It is about the time when we can make realistic comparisons between the administrations of Gov. Jon S. Corzine and former Gov. James E. McGreevey as we approach the fourth anniversary of that fateful day of August 12, 2004 when McGreevey resigned his office in a gay sex scandal.

Corzine has had 31 months in office as McGreevey did when he resigned. Has he been better? Worse? The same?

Had McGreevey stayed, would he have had a better chance at re-election than Corzine at this point?

(To read more about Jonny B. Goode's comparison of Govs. Corzine vs. McGreevy, read his guest column here.)

MIXED BAG FOR LAUTENBERG, ZIMMER

July 24, 2008

If you just look at headlines, the latest Monmouth University/Gannett poll looks like great news for Sen. Frank Lautenberg.

He’s up by 11 over Republican Dick Zimmer among registered voters, and by 8 among likely voters.

But there are plenty of indicators that show that Zimmer – if he had the money, and a message – could make this race much more interesting.

"Right now, more than half the voters in the state either can't decide on a candidate, or their initial choice is subject to change before the November vote. A lot of things are up in the air. Lautenberg has definitely not sealed the deal with voters that he deserves another term in Washington," said Patrick Murray, director of the Monmouth University Polling Institute.

First up, this poll shows Zimmer taking just 64 percent of the Republican vote, with 15 percent undecided, 10 percent looking at a third-party candidate, and 10 percent voting for Lautenberg.

Whether those figures are anomaly of this poll, fallout from a primary where Republicans had trouble coalescing around a candidate, or betray a lack of enthusiasm for Zimmer remain to be seen.

But considering that 70 percent of those surveyed said that they didn't know enough about him to make an opinion means that Zimmer is still an unknown quantity among voters. Even with that, Zimmer is currently leading among independents: 31 to 26, with 21 percent undecided and 20 percent wanting a third-party candidate. It gives Zimmer an opportunity to make up ground – but he needs to start with his home base first.

Lautenberg’s favorability ratings were also mediocre; his approval ratings were 45-33; his favorables were 34 to 27. That would indicate there isn't a wellspring of firm support for Lautenberg -- and gives an opening to Zimmer, if he gives voters a reason to throw out the incumbent.

Working against Zimmer is the state's blue roots: If Obama wins the state by a comfortable margin, Lautenberg will likely get swept back into office with him. Lautenberg's money advantage may also allow him to define who Zimmer is to an electorate that knows little about the Republican. This poll also found less concern with Lautenberg’s age than previous polls: only 31 percent agreed that the 84-year-old Lautenberg was too old to be an effective senator; 54 percent disagreed.

One point that bears noting: Of those surveyed, 42 percent were Democrats, 33 percent independents, and 25 percent Republicans. But the state has more registered independents than either Democrats or Republicans: As of June, there were 2,238,209 unaffiliated voters, vs. 1,682,352 Democrats and 1,030,142 Republicans – which at least raises a question about why the poll surveyed a larger percentage of Democrats than independents, and whether that affected the results.

SCARLET LETTER

July 23, 2008

Now we understand why Rutgers’ nickname is the Scarlet Knights.

Although we think they should modify it to the Scarlet Reds.

As in Scarlet Red for embarrassment.

So desperate were they to keep their football coach that they gave him a “Get out of New Brunswick” card if their super-duper football stadium wasn’t built on time, according to the Star Ledger.

Which explains their mass hysteria to get the stadium built, even in the face of higher costs.

Which explains their single-minded determination to get the stadium built, even if it impacts academics at the university.

(We wonder if the governor knew there was an escape clause. Could that be why he and Sen. Ray Lesniak agreed to raise an additional $30 million to help get the stadium built?)

The fact that there was an escape clause doesn’t say much for Greg Schiano, or his commitment to Rutgers.

But it says even less about Rutgers President Richard McCormick, who kept this Scarlet Letter secret.

Like he kept that additional $250,000 payment to Schiano from a university vendor – on top of Schiano's $1.6 million salary – secret.

The only reason to keep all this hidden is if Rutgers was embarrassed by its deals with Schiano. They should be embarrassed: At the same time they’re raising tuition, fees and board by 6.5 percent, they’re doing everything they can to keep a football coach on their payroll.

Yes, it’s nice that Rutgers has a winning football team. But what’s more important to Rutgers: diplomas, or varsity letters?

Are there more secret deals? Do they involve tax dollars? Maybe, instead of scrambling to find money to feed Rutgers' football dreams, Corzine and Lesniak should call on the university to come clean -- and make sure there are no other secret deals that the university hasn't told us about.

It’s past time that McCormick and those other Rutgers boosters in Trenton stop being blinded by those would-be stadium lights, and remember what they are supposed to be doing: Educating their students. And it's past time that someone in Trenton take a harder look at exactly how Rutgers is spending those tax dollars.

It's not unreasonable to wonder if this obsession with football, and keeping Schiano, could have impacted how Rutgers spends the state aid dollars it receives. Unfortunately, by keeping deals secret, Rutgers has shown that it is willing to lie to the public by omission.

Too bad McCormick and company were more worried about football, than they were about the example they were setting for their students.

ON THE ROAD AGAIN

July 23, 2008

So while he’s touring Israel and visiting with some business leaders, do you think Gov. Corzine is getting the news from back here in the Garden State?

Do you think he noticed that toll revenues are down on the Parkway and Turnpike and that there are fewer cars riding on the toll roads?

Do you think it’s occurred to him that they might drop even further if he goes ahead with a plan to raise tolls to pay for road repairs?

At the start of what used to be known as the summer driving season, toll revenues were down 4.3 percent at the Parkway and 4.8 percent at the New Jersey Turnpike in the month of June, according to the Asbury Park Press. Over the first six months of this year, revenues were off by some $11.4 million.

And what is the cause of the drop?

Turnpike authority officials blamed high gas prices, a downturn in the economy and lower than projected income from investments for revenues.

And here’s a scary line from the Press: “Experts said that further revenue decreases could trigger a toll increase to cover the authority's debt. Authority officials said that an automatic toll increase would be triggered if the agency's earnings fall below a certain ratio of its debt, a number officials said is based on a variety of factors, including revenues.”

In other words, tolls may have to increase because there aren’t enough people driving on the toll roads to make enough money to pay back the bonds that have already been issued.

And that's before Corzine unveils whatever plan he has to raise tolls to pay for road repairs. So New Jersey drivers could be facing a toll hike on top of another toll hike.

What do you think happens to revenues then?

If they raise the tolls to pay back the investors, it’s not a huge leap to assume that there will be even fewer drivers on the road than there are now.

And what do you suppose will happen if Corzine goes ahead and raises tolls on top of that to pay for infrastructure road repairs?

Could that mean another toll hike just to pay back investors of the new bonds Corzine wants to issue to pay for bond repairs?

None of this should be a surprise. People don’t go out of their way to spend more money than they have to. There’s no doubt that high gas prices have altered our driving habits: a recent AAA survey found that 78 percent had changed their driving routine; of those, 81 percent were consolidating trips, and 74 percent said they’re driving fewer miles.

What do you think will happen if you add higher tolls to the mix?

And here’s another scary thought: if there are fewer cars on the road, then tolls may have to increase even more than originally thought on the drivers who remain in order to make up the difference.

Which may mean even fewer cars on the road. And less revenues.

Which could trigger another automatic toll increase.

Do you suppose the governor has a contingency plan for that?

MISSED OPPORTUNITY?

July 22, 2008

The governor has finally made his long-awaited trip to Israel for a trade mission, and we noticed something was missing.

Where were all the New Jersey companies who usually travel with a governor to try and strike deals and take advantage of the high-level meetings and open doors that such trade missions usually bring?

Apparently, there are none.

The governor traveled to Israel with his girlfriend, Sharon Elghanayan – he is personally paying for their expenses on the trip – along with chief of staff Bradley Abelow, a state commerce official and a security detail.

As former Gov. Christie Whitman noted in the Star Ledger today, her “trade missions sometimes included ‘days where there would be 100 meetings going on’ between companies and state officials, (and) questioned whether Corzine's one-on-one approach could be ‘quite as effective.’ "

Abelow told the Ledger that “Corzine's reputation and relationships make New Jersey ‘well-represented.’ “

That may well be. But a governor can’t strike export deals on behalf of individual New Jersey companies – and won’t necessarily see a business opportunity that a New Jersey business otherwise would.

And, given the news today that Roche is moving its headquarters out of New Jersey, the state needs all the business deals it can get.

But the governor is expected to attend business presentations by Israeli business leaders and academics today on science, technology and infrastructure, as well as a briefing at Ben Gurion Airport, according to the Ledger.

On Monday, Corzine met with Israeli Prime Minister Ehud Olmert, President Shimon Peres and Likud Party chief Benjamin Netanyahu, and apparently spent part of the meeting vouching for Democratic presidential hopeful Barack Obama.

We’re sure he vouched for New Jersey as well, and that he promotes the state in his meetings with business leaders. It just seems his message would have been more effective if he had brought along New Jersey companies to back him up.

QUESTION ZONE

July 22, 2008

We’re all in favor of saving taxpayers money here at In the Lobby.

So, at first blush, a proposal that would save taxpayers $2 million a year sounds intriguing. The state plans to accomplish this by purchasing auto supply parts for its 15,000 state vehicles through a new government-purchasing cooperative called U.S. Communities Government Purchasing Alliance.

Under this alliance, New Jersey will now purchase its auto parts supplies solely from Memphis, Tenn.-based AutoZone, which has an auto parts contract with U.S. Communities. The state says the two-year contract will save about 20 percent a year, or $2 million.

But the 135 New Jersey-based suppliers are crying foul, saying the state’s decision will not only ultimately result in higher prices, but will mean layoffs and lost business for their companies. And, since many local governments often piggyback off the state contract, these companies may lose that business as well.

One firm has told Gannett that AutoZone is buying brake pads from them for $27 and reselling them to the state for $75. Others report that their former clients are complaining about AutoZone parts “not fitting, costing more, arriving late or being what is known in the trade as ‘white box,’ meaning a knockoff or an off-brand,” according to Gannett.

State Treasury spokesman Tom Vincz counters that he hasn’t heard of complaints, and notes that 45 former independent suppliers who have asked to become AutoZone franchises.

So who’s right?

The New Jersey companies’ chief complaint is that they weren’t given a chance to bid on the contract. Since the AutoZone agreement was made through a cooperative purchasing contract, no other company had a chance to compete for the business. (Administration officials, note, however, that U.S. Communities initially selected AutoZone via a competitive process.)

It would seem to us that the goal of the state should be to save the most money possible. If the AutoZone deal can deliver $2 million in savings, great. But what are the guarantees that such a savings will occur – especially since AutoZone doesn’t have to worry about being underbid by any other company? And, since the award was made without a competitive bid, how does the state know that the AutoZone contract was the best deal it could have gotten?

According to the U.S. Communities Web site, the Auto Zone was originally obtained by Mecklenburg County in North Carolina. The contract states that AutoZone will provide parts based on a fixed percentage discount, which the contract list identifies as being between 5 to 20 percent. The percentage appears to be based upon the total combined U.S. Communities net sales for the products; the greater the sales, the greater the discount.

But assuming the state of New Jersey qualifies for the 20 percent discount on all supplies, the question for taxpayers is whether this contract offers the best possible price – and the best deal – for their tax dollars.

There is a way, it seems to us, that the state can guarantee the lowest price. There is nothing in the U.S. Communities regulations that forbids government agencies from using more than one contact. In fact, on the company’s FAQ page, it specifically states, “all U.S. Communities public agency contracts are non-exclusive.” That means the state is not required to solely use the U.S. Communities contract in order to achieve the purchasing alliance discounts.

Therefore, it would seem to us that it would make more sense for the state to consider using both – take advantage of the discounts offered through the U.S. Communities purchasing alliance, while, at the same time, also go out for competitive bids – especially with contracts that have multiple purchases of a variety of items. That way, the state guarantees that it is receiving the best possible price – and state agencies and local governments can choose the option that is best for the taxpayer. It also offers local businesses the chance to compete for the business.

In other words, let the company with the best taxpayer-friendly price win.

CHRISTIE�S PROBE OF KATZ MAY CAUSE HIM MORE HARM THAN GOOD

July 21, 2008

By MICHAEL SHAPIRO

The conventional wisdom is that the recently announced federal probe into the dealings of former Corzine friend, Carla Katz, with the local CWA which she had led, will score United States Attorney Chris Christie political points with Republicans, Independents, and some anti-Corzine Democrats. Governor Corzine has been battling to keep emails between Katz and himself from becoming public and Katz is already under investigation by the national CWA for alleged improper conduct. Christie’s federal investigation promises more negative Katz headlines, more unfavorable publicity for the Governor, and positive publicity for Mr. Christie. However, Mr. Christie’s possible gubernatorial ambitions may actually be undermined by this probe.

{To read the rest of Michael Shapiro's take on the federal investigation of Carla Katz, read his guest column here.)

BUT WE HAVE OUR STADIUM!

July 18, 2008

Well, if we ever had any doubts, we understand now why Rutgers is the state university.

It’s because the apple doesn’t fall far from the state government tree.

Yes, our state university, which can find millions to pay the $200,000-plus salaries of some of its staff – not to mention tens of millions to fund a new super-duper football stadium, is once again wailing the “I don’t get enough tax dollars blues.”

And so, they lament, they have no choice but to raise tuition by 8.5 percent, and overall, they hiked tuition, fees and board by a whopping 6.5 percent.

And that means that if you’re a New Jersey resident, you will now pay $21,482 to attend Rutgers, making it one of the costliest public colleges in the nation.

$21,482 to attend Rutgers? Seriously, has the world gone mad?

“The university has unavoidable obligations for our faculty and staff," University President Richard L. McCormick said. "Like everybody else we are facing the inflation of fuel and other costs. And as an institution we are determined to continue forward progress."

Notice he talked about “unavoidable obligations for faculty and staff.” In other words, Rutgers’ bloated salaries can’t be touched. But asking students – and their families – to pay more? Not a problem.

Any one think that might be a reason why Gov. Corzine and Sen. Ray Lesniak are having such a hard time finding donors to come up with that $30 million they promised? That the rest of the world sees the absurdity of a university that has no problem spending more than $100 million on the House that Greg Built, at the expense of student fees, tuition and board?

There are 77 employees at Rutgers University who make more than $200,000. That alone is absurd. This is a state university, not a Wall Street bank.

But Rutgers will ask its customers – its students – pay more. McCormick was lamenting how the state cut state aid by $36 million.

But $102 million for a football stadium? Not a problem.

The only rationale person on Rutgers board seems to be George Zoffinger.

"When is enough enough? We must do more on the board to constrain our spending," Zoffinger said.

Where is the outrage in Trenton? Or has everyone there drunk the Scarlet Kool-Aid?

By the way, Rutgers officials are warning that there will likely be additional cuts in courses, staffing and services.

But the football stadium will open on time and on budget!

We keep forgetting: Is Rutgers supposed to be an institution of higher learning, or a booster club? The way they’re acting lately, it’s hard to tell.

A TROIKA OF TROUBLES

July 17, 2008

There were three stories in the news today that caught our eye.

Individually, all were interesting. But taken together, they form the outline of obstacles that face Gov. Corzine as he heads into his re-election campaign year.

First up, the economy. New Jersey lost another 4,000 jobs in June, for a total of about 14,000 since the year began. A Rutgers economic forecast report is predicting that New Jersey is heading into a mild recession that will last until 2010, and will result in a loss of some 31,000 jobs over that time period. Housing prices are also expected to drop another 10 to 15 percent, for a total of 30 percent off their peak.

That means that Corzine will likely be campaigning for re-election during a recession, presiding over an economy that continues to lose jobs. Add that to New Jersey’s already documented woes of high taxes – combined with whatever proposed toll hike or other asset monetization scheme the governor comes up with to pay for infrastructure repair – and it doesn’t add up to a rosy scenario for re-election.

Next up, judgment. The governor’s relationship with union leader Carla Katz has always been problematic – and he hasn’t helped matters much by his often evasive and not-fully-complete answers to questions about Katz, whether it’s the mortgage he paid for, the reported millions he gave her when they broke up, the help he gave her brother-in-law, or the e-mails he exchanged with her during contract negotiations.

But the news today that the feds have now opened an investigation into Katz, by subpoenaing records from the CWA national headquarters, isn’t helpful either. The prospect of continuing news about the investigation (which is being conducted by the organized labor unit in U.S. Attorney Chris Christie’s shop) throughout 2009 will only remind people about Corzine’s relationship with Katz – and gives reporters reasons to keep writing about their past – and them.

Finally, there’s ethics reform. Corzine came to Trenton promising to be a reformer, but he has yet to deliver. In his column today, Charlie Stile recounted the 80-person, $1,000-a-person fundraiser that former Sen. Robert Torricelli hosted on his farm on Corzine’s behalf.

(By the way, we assume that Torricelli arranged clearance with the FAA for George Norcross to land on his farm.)

But we keep remembering what Corzine said last September, when he promised that he would tackle ethics reform right after the November election in the lame duck. He made that pledge right after the feds rounded up another 11 public officials, when he told then-Star Ledger columnist Tom Moran, "If the Legislature and myself don't have passion about trying to do something about combating the breakdown of the public trust," he said, "I will be in despair."

Ten months later, and still no action. There are those who say that the public will have forgotten all about the corruption trials by the time the election rolls around.

But our bet is the public hasn’t gotten over it. And if, in the meantime, something comes out of this Bergen County investigation, or during the trials of former Sens. Wayne Bryant or Joseph Coniglio, they’ll be reminded again how the governor has taken no action.

And then the governor can explain to voters how he got over his “despair.” Perhaps it was while he was noshing on appetizers and collecting $1,000 checks from lobbyists at Torricelli’s farm.

WHAT'S THE FREQUENCY, KENNETH?

July 16, 2008

Sometimes, politicians seem to forget that their job is to attract votes, not repel them.

And, when you’re the mayor of a Jersey Shore town that lives and dies on tourism, it would be helpful not to forget that you should be trying to gain new visitors, not antagonize existing ones.

Unless, of course, you happen to be Belmar Mayor Kenneth E. Pringle.

The good mayor is the publisher and author of the weekly Summer Rental News, a weekly newsletter he writes about the exploits of the summer renters in his town.

He claims it’s tongue-in-cheek. Others say its offensive.

You be the judge.

Here are two excerpts from the July 4 edition, courtesy of the Asbury Park Press (which also has a link to the entire newsletter on its site):

"The call of the Guido is bellowing, and frequently slurred, invariably starting with the sound "Yo,' followed all too often by some creative variation on an expletive beginning with the letter "F.' "

"Journalistically speaking, "SI woman punches other woman' is right up there with "Dog bites man.' But here's the twist: As the Staten Island girl was pummeling the Boonton girl's face, she used the hand she was still holding her drink glass in. Now, we're not sure if the glass was stuck to her hand cause of all the hair spray or if this is a technique Staten Island girls learn in Brownies, but we are thankful she left her brass knuckles and straight razor in her other purse."

Yes, this comes from the pen of Pringle, who also described “Guidos” as “as a kind of rare bird: they flock to our shore towns during the warm months, and are as welcome as, oh, Canada Geese. They’re always tanned to the color of coconut shells, and easily identified by their plumage: satin shirts and short skirts on the females; Armani Exchange T-shirts and artfully distressed jeans on the males.”

Pringle insists his newsletter is not meant to offend, but to illuminate. He says he wants to “show renters how year-round residents perceive their conduct and to educate the renters about local laws on everything from ‘animal houses to trash pickup.” He even delivers it to the summer rentals in town, and helpfully posts it on Belmar’s web site.

"They come here thinking that they can get away with all this stuff and no one will bother them," Pringle told the Press. "The newsletter is a way to repeatedly drum into them . . . what the rules are."

What Pringle has apparently managed to do, however, is drum into would-be tourists that they’re not welcome in town.

"The impression I now have is that the leader of this community is a misogynistic racist," said one blonde Hunterdon County resident, who objected to a story about two clueless women that was headlined “Let us guess … They’re blonde.”

"Is that really the picture he wants to paint of a community that depends on tourist money from the people he's insulting?" she asked.

Meanwhile, Gov. Corzine, Sen. Robert Menendez and Rep. Frank Pallone were all on the Belmar boardwalk with fellow Democrat Pringle last week, urging President Bush not to lift the executive ban on offshore drilling.

Question: How many Democratic politicians will be seen with Pringle between now and Election Day?

We bet you don’t need to be a “Guido,” an “SI girl,” or even “blonde” to figure that one out.

UPDATE: The mayor now says he's sorry.