Voters say ‘no’
to more borrowing, but
Dems just won’t stop

Less than 24 hours after the last ballot was cast Tuesday, Trenton Democrats sent a strong message to New Jersey voters: your vote doesn’t count.

One day after voters rejected plans for the state to borrow hundreds of millions of dollars to support stem cell research grants, Democrats returned to the State House intent on pushing through millions in bonding for stem cell research facilities. Only after Republicans objected did the Democrats decide to cancel a hearing they had scheduled for Thursday to approve that borrowing.

But despite the cancellation, Governor Jon Corzine and Senate President Richard Codey, both avid supporters of stem cell research, said the state will move forward with its plans to build stem cell research facilities throughout the Garden State, ignoring the voters' mandate to cease borrowing.

The Joint Budget Oversight Committee (JBOC) was set to sign off on borrowing $26 million for "predevelopment" construction costs at its scheduled meeting Thursday. That meeting was postponed without explanation late Wednesday after Republicans objected to the planned vote.

"It’s hard enough to get people to go to the polls because many feel their vote doesn’t make a difference," said Assembly Republican Leader Alex DeCroce, R-Morris and Passaic. "If the JBOC gives the green light to proceed with facility construction, that’s exactly the message they are sending."

"The voters spoke loud and clear Tuesday when it came to the issue of state debt, and it would be a mistake for the Legislature to ignore the will of the voters on this issue," added Assembly Republican Budget Officer Joseph Malone, R-Burlington, Ocean, Monmouth and Mercer counties. "What we saw at the polls Tuesday is that New Jersey voters – regardless of their views on the merit of stem cell research – do not want the state to incur any more debt at this time."

In 2006, the Legislature authorized the issuance of $270 million of bonds by the New Jersey Economic Development Authority (NJEDA) to pay for construction costs for stem cell facilities. The JBOC was set to approve $26 million of that amount at its Thursday meeting. On Tuesday, however, voters overwhelmingly rejected a referendum to borrow $450 million in bonds for research grants.

"The fact that the committee released its agenda early Wednesday, just hours after the voters overwhelming defeated a plan to put the state further into debt, with the resolution still on the table makes it clear that the Democrats have very little regard for what the people of New Jersey are saying," said DeCroce. "When it comes to spending and issuing more debt, Democrats refuse to take 'no' for an answer. The resolution may be off the table for now, but rest assured we have not seen the last of it."

Corzine and Codey both made that very apparent. With next year’s fiscal budget already facing a $3.5 billion deficit, Corzine said Wednesday the state has more than $10 million in this year’s operating budget to fund stem cell research grants. Codey also told the Asbury Park Press, "I would move ahead. That’s not new money, money spent on capital construction."

Assemblyman Louis Greenwald, D-Camden, the JBOC vice chairman, also told the Asbury Park Press that construction might proceed but cautioned, “We need to be respectful of the voters and not come off as looking arrogant as if we know more than they do."

"Who do they think they are kidding?" asked DeCroce. "This is the epitome of arrogance. New Jersey voters made it very clear on Tuesday they do not want to incur additional debt by moving forward on stem cell research. Yet it’s quite apparent the governor and Democrat leaders have once again turned a deaf ear to what the taxpayers are saying."

"We are facing another large hole in next year’s budget, $37 billion in state debt and more than a $60 billion unfunded liability in our pension system," said Malone. "The voters understand that the time to stop borrowing money is now, and the Legislature would be wise to heed that warning."

Assemblywoman Amy Handlin, R-Monmouth, added, "We need to slam on the brakes. The public has spoken loud and clear and I’m sorry that the governor and Senate president don’t seem to have heard that message."

Merkt: Codey needs to explain brokerage deal, huge state grant increase to Paterson

Noting that public confidence in the New Jersey Legislature has plummeted in the wake of the recent arrest or indictment of four state legislators, Assemblyman Richard A. Merkt has called upon Senate President Richard Codey to explain the details of his insurance brokerage firm’s relationship with the City of Paterson, as well as the rationale for a huge spike in special state grants to Paterson while Codey was governor.

"With four legislators already indicted, and more looking over their shoulder, the New Jersey Legislature already has a growing credibility problem," noted Merkt, R-Morris. "Now comes a news article reporting that Senate President Dick Codey owns an insurance brokerage firm that has some kind of sweetheart deal with the City of Paterson, and then we learn that Paterson got a huge increase in special state aid while Codey was governor. What’s the public to think?  Dick Codey should explain what’s going on and pronto, for his own good, as well as the state’s."

Merkt pointed out that Paterson does not pay Codey’s insurance brokerage firm, Olympic, directly, but added, "You can bet your bottom dollar that the insurance company is paying the broker a back-door commission that comes out of the premiums that Paterson pays. It’s highly unlikely that Codey’s firm is providing brokerage services for free."

"Any time a public official is making money off a public entity," asserted Merkt, "the public has a right to know the details, no matter how cleverly the deal is structured to hide the facts. If this deal is on the up and up, Dick Codey should have no reason at all to keep the details secret. In fact, it would benefit his credibility, as well as that of the entire Legislature, for him to lay the whole story out before the public."

Even more troubling, said Merkt, is the sudden and massive increase in state aid to Paterson that took place while Codey, D-Essex, was governor. In one year, so-called "special distressed city" aid to Paterson spiked from less than $4 million to nearly $40 million. Only a handful of cities get this discretionary funding, which is doled out without any objective rules or guidelines.

Merkt warned such a massive increase in discretionary aid to a city that turns out to be a client of a business owned by the governor raises obvious red warning flags and demands public explanation without delay.

"We live in an environment in which, unfortunately, not a few public officials have corrupted their public offices to enrich themselves," observed Merkt. "In such a world, the Senate President – who is first in line to succeed the governor – must be like Caesar’s wife, that is, above suspicion.

"This is why I urge Dick Codey to disclose immediately to the public and the media all the details of how much money his firm makes from brokering insurance services for the City of Paterson, and why his administration approved a 900 percent increase in special state aid to his firm’s client while he was serving as governor.”

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