Will Salary Cuts Plug The Budget Hole?

By Art Gallagher

Yesterday afternoon on the LaRossa and Gallagher radio show I asked Assemblyman Declan O’Scanlon how the $790 million dollar hole in Governor Christie’s proposed budget would be filled.  Christie’s budget assumed $300 million in savings during the coming fiscal year from healtcare reform.  The legislation likely to be passed in the Assembly only yields a savings of $10 million this year.   Last month the State Supreme Court ruled that the state must spend $500 million more than Christie budgeted on Abbott district school spending.

O’Scanlon pointed to increased revenue projections and to yet to be determined savings from the new healthcare deal, but acknowledged that he and the other legislators crafting the budget have tough choices to make between now and June 30 when the budget must be passed.

June 30 is the deadline for the state budget to be enacted.  June 30th is also the expiration date of the current union contracts for 48,000 state workers.  Once the pension and benefits reforms are passed by the Assembly tomorrow, there will be an intense sprint to meet those deadlines in one week.

Mark Magyar, a former deputy policy chief in the Whitman administration and the policy director for the 2009 Daggett for Governor campaign,writing at NJ Spotlight, raises the possibility that Governor Christie could impose a new contract on the state workers.

The 1968 public employee collective bargaining law gives the governor and mayors the power to impose contracts on non-uniformed employees.  Christie would be the first governor to use that power.

Magyar says that negotiations with the unions started late and have been on hold while Christie and the legislature worked on the pension and health carereforms.  Christie has proposed a 3.5% pay cut.

I’ve been scratching by head trying to figure out why Christie and the Republicans in the legislature have been celebrating the health care reforms that only yield $10 million, rather than $300 million, in savings while the Democrats are waging a civil war over the deal.

O’Scanlon says the health care deal agreed to is not Reform In Name Only, that they will produce real savings over time.  That might be true.  But it seems like another kick the can down the road.

If Christie exercises his executive power to reduce the cost of government now by imposing union contracts that recover the savings given up the the health care deal we would know that we got real reform. Not delayed reform.  That would be turning Trenton upside down.

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Trenton Twilight Zone

Republican Governor Chris Christie proposed pension and benefit reforms that would have resulted in a $300 million budget savings in the coming fiscal year and that actuaries said would have corrected the system.

Senate President Stephen Sweeney and Assembly Speaker Sheila Oliver, Democrats, gave Christie a “compromise” that results in a $9 million budget savings in the coming year and that actuaries say doesn’t go far enough.

Christie and the Republicans in the legislature are celebrating.  The media is calling the bill a landmark reform.

The Democrats and their union benefactors are having a civil war.

There is a fifth dimension, beyond that which is known to man. It is a dimension as vast as space and as timeless as infinity. It is the middle ground between light and shadow, between science and superstition, and it lies between the pit of man’s fears and the summit of his knowledge. This is the dimension of imagination. It is an area which we call The Twilight Zone.

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LaRossa and Gallagher Radio Show, 5PM-6PM Tuesdays, WIFI AM 1460

Former Senator Richard LaRossa and I have two terrific guests lined up for our weekly radio hour this week.

John Andrews is the Director of the Centennial Institute at Colorado Christian University and Chairman of the Backbone America Citizens Alliance.

Andrews served in the Colorado State Senate from 1998 through 2005.  He was the minority leader and led the GOP back to majority control.  As Senate President, he helped pass bills establishing education vouchers, expanding charter schools, extending tort reform, cutting the capital gains tax, reducing union control of state employees, requiring parental notification when a minor seeks an abortion, and restoring the Pledge of Allegiance in classrooms.

Andrews will be with us for the first half hour of the show, 5-5:30.

Assemblyman Declan O’Scanlon will be joining us for the second half hour.  O’Scanlon has represented the 12th legislative district since 2008.  His hometown of Little Silver is part of the new 13th district which he will represent if reelected in November.

O’Scanlon is Republican Budget Officer and Policy Co-Chair.   He will be giving us extremely timely insights into the State budget and the pension and benefits reform bill.

You are invited and encouraged to call into the show with your questions and comments.  The call in number is 609-447-0236.

The show can be heard on WIFI AM 1460 or here on your computer or smart phone.

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Student Survey Bill Update: So Far, So Good

By Art Gallagher

The bills scheduled to be voted on in the State Assembly this Thursday have been listed.  As of now the Student Survey Bill is not on the schedule.

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AARP Whining Needs To Stop

By Thomas Stokes, Middletown

I am really getting tired of these “AARP Volunteers” and so-called “officials” who continuously spout drivel in their attacks on Republicans.

It was the AARP who supported Obamacare and the $500 BILLION cut in Medicare, which will negatively impact many seniors seeking medical treatment.

Of course, I am sure it had nothing to do with the sale of AARP sponsored health insurance plans (which, as a result of Obamacare, may reap a windfall in profits for AARP). Even AARP had to raise the health insurance premiums of their employees as a result of Obamacare. And quite a few “favored friends” received “waivers” from Obamacare.

Now, we read that the AARP is “open” to reforming Social Security, with the AARP legislative policy director David Certner saying that Social Security needs a “package of revenue and benefit adjustments … to make it solvent.” Of course, the solution they seem to favor is increasing the payroll taxes on every worker and employer.

The fact is, Social Security and Medicare are facing a fast approaching financial crisis. The simple truth is that with the increasing life expectancy, and the baby boom generation starting to retire, the growth of the population receiving these benefits is outpacing the growth of active employees – making the sustainability of outlays extremely dubious. Trustees of the Social Security and Medicare Trust Fund recently warned the Social Security Trust Fund will be exhausted in 2036 and under current law, seniors would then face a 23 percent across-the-board cut in benefits.

Here are the grim statistics right from Social Security (http://www.ssa.gov/history/ratios.html).

In 1945, there were 46,390,000 covered workers. There were 1,106,000 receiving Social Security benefits. The ratio of worker to retiree was 41.9.

In 2010, there were 156,725,000 covered workers with 53,398,000 receiving benefits. That is a ratio of less than 3 to 1 (actually 2.9 workers for every retiree).

These facts are clear. The current trending has placed these programs on a fiscally unsustainable path. There can be no doubt as to the ultimate outcome.

Unless something can be done to expand job growth, to begin to address the imbalance of workers to retirees, Social Security (and Medicare) will collapse, leaving current seniors and those close to retiring out in the cold.

Whether you agree with the solution as proposed by Congressman Paul Ryan on the Medicare issue or not, Congressman Ryan must be congratulated for daring to touch the so-called third rail of American politics. It is critical that these issues be raised and addressed in a fashion to protect the future of America’s current seniors and those closing in on retirement age. Nonsense as spouted by so-called self appointed (or anointed) representatives of seniors does nothing to solve the problem.

We have raised retirement ages in the past; it seems clear that, with increasing life expectancy this will need to be addressed again. Perhaps Medicare age should also tie in with the Social Security age. Ultimately, we need to get our country’s economic house in order so that we may create job growth.

With a 9.1 % unemployment rate, it is clear that Obamanomics has now failed. Even the Democrat National Chairperson, Debbie Wasserman Schultz , now says about the Democrats, “We own the economy” (6/15/2011). Blaming Republican President Bush and the past Democrat Congress solves nothing.

It’s time to stop political games and begin to work together to turn this country around. The Democrats, who controlled Congress the past few years, and still control the Senate, failed to even propose a budget last year. Why? Where is the President in leading his party? He seems to be an absentee leader, preferring the golf links to resolving issues.

The problem is not that Americans are under-taxed, it is that our politicians are addicted to spending. Yes, taxes need to be addressed (the best solution would be to throw out the entire tax code and start with a simpler, fairer, income tax and perhaps even a consumption tax), but we do need to cut spending first. Perhaps then we can start to grow our economy out of the doldrums we find ourselves in.

Perhaps seniors should be made aware that there are other senior organizations they could join instead of the AARP. These include: Alliance for Retirement Prosperity Association, PO Box 3678 Warrenton, Virginia 20188 and 60 Plus Association, 515 King Street, Suite 315, Alexandria, Virginia 22314.

Competition is always a good thing.

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Student Survey Bill Watch

From Carolee Adams:

Note that A3242 may become more commonly known by its Senate Bill Number: S1696. Don’t let that confuse you. If you lose track of the numbers, refer to it simply as the Student Survey Bill.  Please thank Asw. Angelini ([email protected]) for withdrawing her sponsorship and encourage her to vote NO when/if it comes before the Assembly. Keep calling Gov. Christie (609.292.6000) to ask him to veto this Student Survey Bill if it passes the Assembly. Reasons why: dishonors parental rights; it’s an invasion of student privacy; it will cost taxpayers – and possibly in added lawsuits; how will this help academics when the state educational system is already experiencing such unrest; the old bill was a good bill. Why fix what ain’t broke?!

Further, consider this Bill is being pushed by a powerful, influential lobby that wants more taxpayer funded “health” programs in schools. Think recent legislation about bullying for a clue…

These Surveys are a sneaky means for schools to get at the pot of gold in the taxpayer funded CDC to create more “health” programs. (Try and track the spending, though!) However, the federal Protection of Pupil Rights Act should still be honored. I don’t believe this new NJ bill meets that.

I’ve been told none are on the Assembly Board List yet for a vote. However, I’ve also been guided that that could change the calendar day before the Assembly votes. Further, Bill numbers have been known to change, and/or Speaker Oliver could force it during quorum on Monday – even without another Education Committee meeting. Such despicable maneuvers would add weight for Governor Christie to veto.

In case you missed it, the Student Survey Bill would give school districts the authority to administer surveys that ask students intimate personal information about themselves and their families, without parental consent.  The information authorized includes sexual behavior and attitudes, mental health and psychological problems, political affiliation, the names of doctors, lawyers and ministers, income, and social security number. 

Informed parental consent to these surveys was required by a law signed in 2002.  The current bill would amend the law to allow the surveys to be administered if parents are notified and do not respond to the notification.

MMM first reported on this bill last Tuesday evening.   Opposition to the bill spread through other blogs and social networking sites resulting in Assemblywoman Mary Pat Angelini withdrawing her sponsorship of the bill.  The Assembly Education Committee pulled the bill from its scheduled hearing calendar last Thursday.   MMM received a tip that proponents of the bill are working to circumvent the normal legislative process by persuading Assembly Speaker Sheila Oliver to post the bill for a vote before the full Assembly without a committee hearing.

The full Assembly meets today for a Quorum call at 1PM.  It meets again for a voting session on Thursday.  The bills to be voted on have not been posted yet.

Opponents of the bill are encouraged to bombard their representatives with phone calls and emails urging them to vote no on the Student Survey bill should it come up for a vote.   Urge your friends and families to do the same.

Contact information for all members of the Assembly can be found by clicking here.

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Happy Father’s Day

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Gooch Steps Down As Two River Times Publisher

Diane Gooch has stepped down as publisher of the Two River Times in order to focus her efforts on her philanthropic and political activities, according to an article in the weekly newspaper that she owns with her husband Mickey.

“Serving the community is my passion,” said Gooch. “Doing so by publishing The Two River Times™ has been an honor, a pleasure, and a learning experience. I am proud of the journalism we created since I took over as publisher. Helping serve our loyal readers and advertisers has enabled me to grow intimately familiar with the concerns of our neighbors and small business owners. I look forward to continuing to fight for our beautiful corner of New Jersey through my philanthropy and advocacy work.”

The Gooches have hired Ellen McCarthy of Fair Haven to shepherd the newspaper they purchased from Geraldo Rivera in 2004.

McCarthy’s journalism career dates back to 1987 and includes positions with The Asbury Park Press and The Star Ledger.

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Stuck At the Airport

STUCK from Joe Ayala on Vimeo.

Professional photographers Joe Ayala and Larry Chen found themselves stranded overnight at the Dallas Fort Worth Airport recently.  The video chronicles how they passed the time.

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DEP Decision On Holmdel Sewer Service Mapping Shatters Public Trust

By Monmouth County Freeholder Lillian G. Burry

Whether it has been leading the fight to clean up a “superfund” site, preserve an historic building, protect open space, conserve farmland, expand parks, roads or libraries, I have always had one unifying goal, and that is to protect and enhance the quality of life for the people I am sworn to serve.

Having the trust of the people is essential for meeting this commitment. That doesn’t mean always having their full agreement, but it does mean having their faith that you will deal with them openly and honor agreements that are made.

The Wastewater Management Plan for Monmouth County is the product of years of effort on the part of many individuals and government agencies, including the state Department of Environmental Protection (DEP), the Monmouth County Planning Board and its staff, the municipal governments of all 53 towns and eight sewerage authorities as well as many other public and private interests.

The process has been a long one. It has required many meetings and a great deal of patience on all sides. It has always been a process that was open, inclusive, collaborative and consensus-building and in almost every case produced an outcome agreeable to all parties. There is a great deal of good in this plan and it must be acknowledged along with the efforts of all who were involved.

Not long ago I had expected that my remarks would end at this congenial point. That is no longer possible. The DEP, acting within its prerogatives, directed Monmouth County to change sewer service area mapping in Holmdel Township.

This is an issue that had been a source of great contention and disagreement throughout the process. It necessitated special meetings and discussions with landowners, the municipality, the sewerage authority and members of the public.

Throughout this long open process, my own thoughts have always been guided by a few specific principles:

First, I look to municipal intent as expressed in master plans and zoning ordinances as well as the stated position of the governing bodies;

Second, I looked to the broader world of land use policy as embodies in the Monmouth County Growth Management Guide, the State Development and Redevelopment Plan and the Wastewater Management Plan itself, and Third, I looked to the ability of landowners to secure their options through the Monmouth County Planning Board Amendment Review Committee, which is the mechanism by which changes to the plan can be accomplished as disagreements with the municipality are resolved. What I found is this:

There is a consistent concern for protecting drinking water supplies in Monmouth County. A very important element of this is protection of the Swimming River Reservoir, part of a system serving more than 340,000 people, and the watershed that supports it. The southern slope of Holmdel Township is part of that watershed. Holmdel is committed to limiting sewers there.

More than 25 years ago, the Monmouth County Planning Board adopted, as part of its Guide Plan, a document that calls for this protection. The State Development and Redevelopment Plan uses locations within a water supply watershed as the basis for designating land as Planning Area 5 – Environmentally Sensitive. This proposed wastewater plan identifies eight Monmouth County water purveyors as being in potential deficit for water supply and finds there is virtually no reserve in the confined aquifers from which their water allocations are drawn.

Installing sewers not only facilitates the expansion of impervious cover, which increases storm water runoff, but also transfers wastewater out of the drainage basin and discharges it into the Raritan Bay and Atlantic Ocean. Both of these things reduce groundwater recharge essential to preserving base flow in streams that support the reservoir.

The Monmouth County Planning Board Amendment Review Committee remains an effective mechanism for amending this plan that is available to all landowners that secure municipal approvals requiring expanded sewers. All of these facts argue against the action directed by NJDEP.

My final concern goes beyond these objective and technical issues. It is the matter of public trust I spoke of earlier.

When a process where the greatest care has been taken to build consensus among the parties and protect the rights of all involved is effectually overturned at the 11th hour, the trust of the public is shattered. And when it is done to accomplish something that could as easily be achieved through normal administrative means, it is particularly troubling.

In my experience, one of the most important things about having authority is knowing when not to use it. This is the kind of action that can color relationships with the DEP well into the future and make both individuals and agencies question whether they should see the DEP as a trustworthy partner.

This would be unfortunate; the DEP is a great resource. But once public trust is lost, it is very hard to regain.

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