DeSeno On FoxNews.com Live This Morning

Tommy DeSeno will be appearing on FoxNews.com Live this morning at about 11:15.

DeSeno will be commenting on the GOP Presidential nomination race and Congressman Paul Ryan’s looks.

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Overtime pay “flows like water” at Port Authority

New York State’s top auditor said that overtime pay “flows like water” at the Port Authority of NY/NJ, according to a report this morning in The Record.

Port Authority paid $85.7 million in overtime to 5,360 of its 6,977 employees, with many doubling their base salaries and earning over $200K per year.

“Management has no clear strategy” for meeting its own cust cutting goals, The Record quotes NY State Comptroller Thomas DiNapoli as saying.

At a press conference last week Governor Christie blamed past mismanagement for Port Authority’s fiscal woes. 

Port Authority’s leadership should do Governors Christie and Cuomo, as well as all residents of the region a favor and withdraw their toll and fare increase proposal.  Rather, they should announce that they are embarking on a overhaul of the agency’s operations to eliminate waste and excessive spending before they seek any more money.

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Quinnipiac: New Jersey Voters Don’t Want Toll Increases, Want More Women In Elected Office, OK With Muslim Judge

It seems weird to me that a pollster would release a study with issues as diverse as voters attitudes to Port Authority’s proposed toll and fare increases, the sexual proclivities of office holders and whether a Muslim Judge can do his job, but that is exactly what the Quinnipiac University Polling Institute did this morning.

New Jersey voters do not support Port Authority raising tolls.  The only surprise here is that even people who don’t use the Hudson River crossings or Path Trains don’t support the tolls any more than the people who pay the tolls.  17% of voters favor the toll increases, 38% do not, and 43% haven’t heard enough about them. 

54% of New Jersey voters think there should be more women office holders.  80% think that male office holders are more likely than women to be involved in sex scandals.  We needed a poll for that?

71% of voters were unaware that Governor Christie appointed a Muslim to the bench in Passaic County Superior Court. 65% think Judge Mohammed’s religion will not effect his job performance.

If Quinnipiac asked if Muslim male judges are more or less likely to be involved in sex scandals than non-Muslim male judges, they didn’t report the results.

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Slots Would Boost Tourism and Save Horse Racing, Open Space

The news that Perretti Farms, New Jersey’s largest horse breeder located in the 609 area of Monmouth County, is winding down its operations and closing in two years is an indication that future of New Jersey’s horse racing industry is bleak.  

Perretti is not alone.  HorseClicks.com has over 100 New Jersey horse properties for sale at bargain prices. What kind of developments will end up on those farms?  Will the only open space left in New Jersey be government owned or subsidized open space?

Governor Chris Christie was right to end state subsidies of the horse racing industry and to privatize the operations of the Meadowlands and Monmouth Park .  However, to hamstring those operations by continuing the ban of slot machines at tracks is short sighted and will likely lead to the failure of the industry.  The failure of the industry will literally change the landscape of New Jersey.

Christie wants to protect Atlantic City and its monopoly on gambling.  But Christie’s authority does not extend to Pennsylvania, New York , Delaware and Connecticut.   Slots in New Jersey’s track’s won’t take business away from Atlantic City.   Slots at our tracks will keep gambling dollars in New Jersey and attract out of state dollars to our state.

Advocates of the horse racing industry have long called for slots at the Meadowlands.  I say open up the competition even more and allow slots at all New Jersey tracks, what’s left of them.

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U.S. Justice Department Investigating Standard & Poor’s

The New York Times is reporting that the Justice Department is investigating Standard and Poor’s role in the melt down of the economy due to the AAA ratings the agency bestowed on sub-prime mortgage backed securities. 

Justice wants to know if the rating agency’s analysts wanted to downgrade the mortages only to be overruled by S&P business managers who collected handsome fees for favorable ratings.

The investigation is said to have started before S & P downgraded U.S Treasury Debt.  Of course it did.  However the news of the investigation coming out now is purely polticial retribution on the part of the Obama administrations Justice Department looking to discredit the agency.

Justice should also investigate Fannie, Freddie and Frank.  As in Barney Frank.  But it won’t.

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Fitch Downgrades New Jersey’s Debt

On the heels of Ambercrombie paying “The Situation” not to wear their clothes, Fitch has downgraded New Jersey’s credit rating.

From the credit rating agency:

Fitch Ratings-New York-17 August 2011: Fitch Ratings downgrades the State of New Jersey’s outstanding general obligation (GO) bonds to ‘AA-‘ from ‘AA’.

Fitch also downgrades to ‘AA-‘ from ‘AA’ the rating on the Garden State Preservation Trust’s open space revenue bonds.

Additionally, Fitch downgrades to ‘A+’ from ‘AA-‘ the ratings on the state’s appropriation-backed debt and other related debt, which is detailed at the end of this release.

The Rating Outlook for all affected bonds is revised to Stable from Negative.

KEY RATING DRIVERS

–The downgrade of the state’s GO rating to ‘AA-‘ from ‘AA’ reflects the mounting budgetary pressure presented by significant and growing funding needs for the state’s unfunded pension and employee benefit liabilities, particularly in the context of a weak economic recovery, a high debt burden, limited financial flexibility, and persistent structural imbalance.

–Despite recent, significant action to contain future growth in the state’s accumulated pension liability, continued funding level deterioration is projected through the medium term as full funding of the actuarially required contributions is phased in, resulting in sizeable increases in annually required contributions. Fitch believes that meeting the requisite increases in pension contributions will be challenging and is likely to conflict with other long term challenges, such as property tax relief, school funding, and infrastructure needs.

–Management has proactively responded to past revenue weakness, and growth in state spending has been contained. Nevertheless, the state’s budget remains structurally imbalanced inclusive of unfunded pension contributions. Reserve balances are expected to remain narrow, offering limited flexibility to absorb unforeseen needs.

–New Jersey benefits from a wealthy populace and a broad and diverse economy. The state’s recent economic performance has been weak and the state is expected to lag the nation in recovering from the recent recession.

–New Jersey’s debt position remains high, and the state’s long term pension and employee benefits obligations are very significant.

SECURITY

The bonds represent general obligations of the state, with faith and credit pledged.

CREDIT PROFILE

The downgrade of New Jersey’s GO bond rating to ‘AA-‘ from ‘AA’ reflects the mounting budgetary pressure presented by significant and growing funding needs for the state’s unfunded pension and employee benefit liabilities, particularly in the context of a weak economic recovery, a high debt burden, limited financial flexibility, and persistent structural imbalance. The credit rating, at the current level reflects its high wealth levels and broad economy, offset by a high debt burden and a multitude of spending pressures, including continuing capital needs, as well as significant unfunded pension and employee benefits obligations. Despite the recent passage of pension and benefits reform legislation, which will restrain future growth in the state’s accumulated liabilities, continued pension funding level deterioration is projected through the medium term as full funding of the actuarially required contributions is several years off, resulting in sizeable increases in annually required contributions. Fitch believes that meeting the requisite increases in pension contributions will be challenging and is likely to conflict with other long term challenges, such as property tax relief, school funding, and infrastructure needs.

The fiscal 2011 budget as adopted last year addressed a $10.9 billion current-law funding gap without broad based tax increases and with significant spending reductions, though a large portion of the gap was closed by forgoing the state’s $3.1 billion pension contributions, a source of budget relief the state has repeatedly relied on in recent years. The budget assumed overall revenue growth of 1.5%, despite the sunset of a temporary personal income tax increase, while appropriations across all funds declined by 1.7%. Revenue expectations for fiscal 2011 were revised upward in February and again in May, primarily due to stronger personal income tax performance. Net of proposed supplemental appropriations, prepayment of fiscal 2012 school construction fund debt service, and lapses, the state projects an ending balance of $696 million, providing limited financial flexibility representing just over 2% of fiscal 2011 revenues.

Budgeted appropriations for fiscal 2012 are 1.2% above the estimated fiscal 2011 level, though this percentage will increase slightly once a supplemental appropriation for local aid is passed. While spending across most departments is reduced, local education aid grows by $832 million, inclusive of additional court mandated funding for certain urban districts, and increased funds for property tax relief and pay-go transportation capital funding are incorporated. Projected revenue growth of $1.1 billion (4% above revised 2011 levels) and an increase in the prior year surplus expectation provide an offset to the loss of federal stimulus support ($879 million for fiscal 2011) and revenue forgone due to $185 million in tax relief. The use of one-time measures, inclusive of balance draws and expected debt restructuring, is down from the prior year, though this figure excludes the statutorily reduced pension contribution appropriated at only one-seventh of the actuarially required contribution for fiscal 2012. While it is encouraging that the state has been holding down spending growth, structural balance has not been achieved and the continued deferral of funding for the state’s significant long-term liabilities will negatively impact pension funded ratios and pressure future budgets. The state’s financial cushion at year end is expected to remain narrow at approximately $640 million.

State employment growth during most of the last decade lagged the national experience and remains weak. New Jersey’s non-farm employment levels declined by 0.7% in 2008 and by 3.9% in 2009, levels consistent with national declines, though the 2010 decline of 1% was slightly higher than the 0.8% contraction seen nationally. New Jersey’s employment remains weak, with June 2011 employment was 0.4% below June 2010 levels, comparing negatively to a U.S. gain of 0.9% for the same period. State unemployment of 9.5% for June 2011 is above the national level of 9.2% for the same month. New Jersey’s wealth levels are high, with 2010 per capita personal income of $50,781 equaling 125% of the national level, ranking third among the states. Personal income growth in 2008 totaled only 68% of the national level, and the 2009 decline was sharper than that experienced nationally. For 2010, the state’s personal income growth of 2.6% lagged the 3% growth experienced nationwide.

New Jersey’s debt levels are high and ongoing capital demands for school construction and transportation projects remain large. The debt burden as of June 30, 2011 equaled 8% of 2010 personal income. Excluding bonds issued for pension funding, outstanding debt as of June 30, 2011 totaled 7.5% of 2010 personal income. State residents approved in November 2008 a constitutional amendment that requires voter approval for future debt authorizations that do not carry a dedicated repayment source, which limits growth in debt levels. As of June 30, 2010, the state’s portion of pension liabilities, adjusted to reflect recent pension reforms, was 65% funded on an aggregate basis, an improvement from 56% before the reforms were implemented. System-wide funding levels for the PERS and TPAF systems, using Fitch’s more conservative 7% discount rate assumption are weak at 61% and 59%, respectively. While pension and employee health benefit reforms have been implemented and are expected to slow the growth in liabilities, the state’s plan to phase in full funding of its annually required pension contributions over a seven-year period in will likely reduce funding levels in the near term and add stress to the state’s operating budget.

As noted above, Fitch downgrades the ratings to ‘A+’ from ‘AA-‘ and revised the Outlook to Stable from Negative on state appropriation-backed debt through issued through the following authorities:

New Jersey Transportation Trust Fund Authority
New Jersey Economic Development Authority
New Jersey Health Care Facilities Financing Authority
New Jersey Educational Facilities Authority
New Jersey Sports and Exposition Authority
New Jersey Building Authority

Additionally, Fitch downgrades the following ratings to ‘A+’ from ‘AA-‘ and revises the Rating Outlook to Stable from Negative on the following:

State of New Jersey certificates of participation.

The program ratings assigned to New Jersey Municipal Qualified Bonds and bonds secured by the New Jersey School Bond Reserve (New Jersey School Credit Enhancement Program).

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Jonathon Alter: Sources say Christie is conducting focus groups in prep for presidential run

Journalist Jonathan Alter tweeted that sources have told him that Governor Chris Christie is conducting focus groups in preparation for a 2012 run for president.

The Governor’s office is referring requests for comment, confirmation or denial to Mike DuHaime, Christie’s political strategist.  DuHamine has not yet responded to MMM’s inquiry.

UPDATE

NJ.com is reporting that Christie’s trusted friend and advisor Bill Palatucci denied that there are focus groups being conducted for a Christie presidential run.  Alter issued another tweet saying he has a better source that contradicts the first.

Much ado about nothing.

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Beck, O’Scanlon and Casagrande Voice Opposition To Toll Hikes

12th District Legislators Senator Jennifer Beck, Assemblyman Declan O’Scanlon and Caroline Casagrande today announced their opposition to the massive toll hikes proposed by the Port Authority.

“With so many of our own residents here in New Jersey unemployed, adding another undue burden, a 150% toll hike on working families is not the right course of action,” Beck said. “This is another battle in the fight for our State to remain an affordable place for our families. New Jersey has already lost residents who’ve left the State for more affordable places to live and another toll increase is counter-productive to New Jersey’s economic recovery.”

“Senator Beck, Assemblywoman Casagrande and I completely oppose these massive toll hikes, and we support Governors Christie and Cuomo in their efforts to derail them,” said O’Scanlon. “To nearly double the tolls and PATH fares in a time of economic difficulty makes no sense. This will be one more barrier to economic activity in the tri-state area, and a tax increase on people who already having a hard time making ends meet.”

The Port Authority is holding several hearings today at 8am and 6pm, often in difficult to reach places. Casagrande said that was not a coincidence.

“We saw the same thing for the Corzine toll hikes on the Parkway and Turnpike. They hold the hearings at a time when the very people who would be affected by this – commuters – are on their way to or from work so they can’t attend. They’re not interested in hearing or considering the public’s opinion, because if they did, their ears would be burning. This is an outrageous burden to put on people who have to drive into the city or to visit loved ones in the New York area.”

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Bob Ingle With The Real Jersey Guys

Dick LaRossa and I spent a great hour on the radio with Bob Ingle yesterday afternoon.

In the free wheeling and wide ranging conversation we discussed The Soprano State book and movie, corruption in New Jersey and the lack of prosecutions under our new U.S. Attorney, the demise of the Jersey Guys show on 101.5 FM,  education reform, Abbott districts, racial segregation in New Jersey schools, former Governor McGreevey, the proposed Port Authority toll and fare hikes, Governor Christie and the likelihood, or lack thereof, that Christie will run for President in 2012.

The Soprano State movie will likely be released again this fall in New York and Los Angeles in order to be considered for an Oscar nomination.

If you missed the show or would like to hear it again, here’s a recording:

The LaRossa and Gallagher: Real Jersey Guys On The Radio is sponsored by Repatriot Radio.  It is broadcast every Tuesday from 5pM-6PM on WIFI AM 1460 and on the Internet here.

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Quinnipiac Poll: Christie Up, Obama, Sweeney and Oliver Down

New Jersey Has A Huge Gender Gap

By Art Gallagher

A Quinnipiac poll released this morning indicates that Governor Chris Christie’s approval numbers have rebounded since their June 21 poll. Today New Jersey narrowly approves of the Governor’s performance, 47%-46%.  In June Christies’s approval rating was upside down, 44%-47%.

“By a 50-35 percent margin, New Jersey voters like Gov. Christie as a person,”  said the Quinnipiac release.  

As opposed to what?  An alien? A pet? A superhero?   Christie did not have to provide a copy of his birth certificate to earn that popularity.

Obama in trouble

President Obama’s approval ratings have taken a huge 10 point negative swing in New Jersey since the June 21 Quinnipiac poll. 

In June New Jersey voters approved of the President’s performance, 50-46 percent.  Today New Jersey voters disapprove of how the President is doing his job by 52-44 percent.  These are Obama’s worst numbers ever in New Jersey.

Unless Obama’s New Jersey numbers improve, Senator Robert Menendez’s reelection prospects are in jeopardy.  Menendez’s numbers have been anemic and are declining.   In June only 45% of NJ voters approved of Menendez vs 38% who disapproved.  Today 39% approve vs 42% who disapprove.  Only 41% say Menendez deserves to be reelected vs 43% say he does not.  Yet, by a 45-39 percent margin voters say they would back him over an unnamed Republican.   Republicans need to nominate a named candidate.

Senate President Stephen Sweeney and Assembly Speaker Sheila Oliver should thank the Lord that their positions are not subject to a statewide ballot.

Sweeney’s numbers are 23% approve to 40% disapprove.  He has suffered a 10 point drop since June.

Oliver fares better only because 54% of New Jersey voters don’t know who she is.  21% of voters approve of the Speaker’s performance and 25% disapprove.  Oliver has suffered a 6 point drop since June.

Gender Gap

Men approve of Christie 58-36 percent while woman disapprove of him 55-37 percent.

Women approve of Obama 51-44 percent. Men disapprove 60-37 percent.

MMM accepts responsibility for the gender gap.  According to the web tracking site alexa.com, MMM’s audience is overwhelmingly men with children and graduate degrees.   We need a female writer or two.

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