Top-to-Bottom Reform Leads to Responsible Planning, Spending of Public Dollars
Trenton, NJ – Governor Chris Christie today announced a complete revamping of the Schools Development Authority construction program and the first-ever statewide prioritization of SDA school construction projects to bring accountability to the spending of hundreds of millions of taxpayer dollars annually for school improvements and expansion. The new program embodies the fundamental reforms taken at the SDA since Governor Christie took office. The recommendations will be presented to the SDA Board of Directors in the coming weeks for their review and approval.
The new approach is the result of a comprehensive review conducted over a six-month period by an internal working group consisting of SDA and Department of Education officials and reflects a wholesale strategy shift from the SDA’s earlier 2008 Capital Plan. The changes reflect a commitment to the efficient and proper use of public funds, an objective prioritization of statewide educational needs and the advancement of sound design and construction principles. For the first time ever, the reforms will allow the Authority to responsibly advance each project in the most efficient, cost-conscious manner – unlike the wasteful, hands-off-the-steering-wheel approach of the prior program.
“We all know that the prior program was associated with the absolute worst kind of government waste, mismanagement and lack of supervision, where much was promised, too much was spent, but too little was returned,” Governor Christie said. “I could not responsibly or in good conscience let that history repeat itself at this agency. We will move forward smartly and deliberatively to deliver value to the school districts and to our taxpayers.”
“The completion of the Capital Plan Review marks a new day for school construction in New Jersey,” said CEO Marc Larkins. “With a statewide prioritization in place, new project delivery processes planned, and a full understanding of the SDA’s capacity, the Authority is poised to move forward with an efficient, responsible school construction program that will address the needs of our students and communities statewide.”
Highlights of the 2011 Plan include:
·A carefully considered, objectively prioritized Capital Program rather than merely a list of 52 projects
·An annual selection of projects to be undertaken – starting with 10 in 2011
·A strategic approach to standardization in school projects, allowing for design replication on multiple projects, resulting in estimated savings of nearly $4 million per project over less efficient prior project delivery methods
·Allocation of $100 million for the advancement of additional emergent projects in the SDA Districts
·A statewide Prioritization Plan to be reviewed annually, providing a framework for project advancement so that only those projects most needed and most efficient will proceed into construction
The new approach and reforms represent a shift away from design excess, costly change orders and mismanagement, and will allow the SDA to responsibly advance each project in the most efficient manner. The present review evaluated all projects using the same factors, where prior reviews showed a bias in favor of certain types of projects, including, for example, early childhood centers.
The comprehensive review resulted in the recommendation to advance the following 10 projects in 2011, representing a state investment of almost $584 million:
·Bridgeton – Cherry Street Elementary School
·Elizabeth – Academic Magnet High School
·Long Branch – Catrambone Elementary School
·Jersey City – PS 20 Elementary School
·Jersey City – Elementary School 3
·New Brunswick – A. Chester Redshaw Elementary School
·Newark – Oliver Street Elementary School
·Paterson – Marshall & Hazel Elementary School
·Paterson – PS Number 16 Elementary School
·West New York – Harry L. Bain Elementary School
The SDA review yielded a consistent and fair analysis of projects statewide with all districts and all projects rated for the same factors. For the first time, the SDA considered total project cost, cost per student and efficiency of construction. Using the same uniform process and selection criteria, the SDA will identify the next group of school construction projects for 2012.
Governor Christie directed a comprehensive review of the SDA early in his administration. In addition, the State Auditor heavily criticized the SDA’s 2008 Capital Plan in June 2010. Among the criticisms raised by the State Auditor was the requirement that every SDA District receive a project and that certain projects included in the 2008 Plan had never been properly evaluated.
Since Governor Christie vetoed a change order proposed by the SDA in January of 2010 and Larkins was named CEO in March of last year, the agency has seen sweeping reforms. The highlights of the reforms are improvements in handling change orders, with a renewed emphasis on protecting state resources, and a structural overhaul of the agency. The new change order process affords more Board oversight of agency operations, and the new organizational structure moves away from a departmental model to a “team-based” approach. The SDA has also reduced staffing by almost 20% and made other operational changes, reducing the organization’s budget by more than $4 million per year.
With the completion of the Capital Program and the organizational structure needed to support the program in place, the SDA will continue to implement strategies to execute projects more efficiently. Through the annual advancement framework, the Authority will promote design standardization leading to design replication on multiple projects. In addition, the SDA will continue to identify alternate methods of project delivery including design-build, which allows for overlapping of design and construction schedules leading to faster project delivery.
Beginning in March last year, with Larkins’ appointment as CEO, the SDA has undergone a sweeping reorganization. The new structure moves away from a departmental model for the delivery of school projects to a “team-based” approach. This structure provides for greater continuity, better communication and supervision throughout the life cycle of a project. In short, the Authority can now deliver projects more efficiently and with the strictest adherence to cost controls.
The Authority fully funds and manages new construction and modernization of school facilities projects in SDA Districts. Other SDA District projects for which the Authority is responsible are renovations and repairs deemed emergent by the DOE due to health and safety reasons.
The SDA also makes grants available to the 574 Regular Operating Districts (RODs) throughout New Jersey for projects approved by the DOE. These grants fund at least 40 percent of eligible project costs, with the remaining share coming from local communities, contingent on budget or voter approval. The SDA portfolio contains more than 1,000 active ROD grants, 388 of which have been advanced since May of 2010, and total more than $126 million.
The Chris Christie for President buzz just won’t go away, no matter how strongly the governor declares he’s not running. Pretty soon the state police will consider putting Christie on a suicide watch.
Ann Coulter’s comment at CPAC…that the GOP either run Chris Christie or Mitt Romney will be the nominee and lose…has reignited the smoldering Christie for President banter.
In cable TV and radio interviews today, Coulter has said Christie is the only Republican who can defeat President Obama, and the governor would have her support even though she questions how conservative he is.
From the left, we have Star Ledger columnist Tom Moran, who helped make Christie a national figure with the famous, “You should see me when I’m really pissed” video. Moran wrote a piece for Sunday’s paper/website which was essentially a white flag of surrender from New Jersey’s Democratic establishment.
After comparing Christie to Oprah, detailing the powerful Democratic support Christie has won over in Hudson and Essex counties, and explaining how hopeless it has become for Trenton Democrats to oppose Christie’s reforms, Moran himself endorsed the Christie agenda:
He’s winning this argument because he’s right on the core issue — New Jersey has promised more than it can deliver. Governors all over the country, in both parties, are moving in the same direction out of necessity.
If Christie can win over Moran, maybe Coulter is right.
Perhaps the question should not be, “Is Chris Christie ready to be president?” as he repeatedly protests that he is not. Perhaps the question should be, “Is Kim Guadagno ready to be governor?”
On Tuesday February 8 it was reported in the Asbury Park Press, http://www.app.com/apps/pbcs.dll/article?AID=2011110208042 , that the Governor vetoed a proposal to build a liquefied natural gas port facility 17 miles off the coast of Asbury Park. This decision is bad for New Jersey business and consumers and the Governor should be urged to reconsider this decision.
Natural gas in its liquid form is not stored under pressure and is not flammable or explosive. When exposed to the environment it quickly evaporates. It therefore cannot result in a slick if it is spilled. The vapors when mixed with air are not explosive in an unconfined area.
Natural gas:
creates less carbon dioxide per BTU than any other carbon based fuel
is easily transportable
burns without soot or sulfur dioxide
is the very plentiful and therefore very inexpensive compared to other fuels
does not pollute soil or groundwater if released
These facilities operate all over the world. This is not a new or unproven concept. Massachusetts already has two of these facilities. The building of this facility would have created no environmental or safety risk to New Jersey and does not constitute a risk to our tourism industry.
Building of this facility would create good paying jobs for New Jersey residents. It would lower energy costs for consumers and businesses. The Governor wants to attract business to New Jersey and create jobs and this project would do both
This reason this proposal was opposed by environmental groups was because it involves fossil fuels. The unrealistic goal of those opposing the facility is to put fossil fuels out of business. They do not want anything built that would provide low cost fuel to consumers because then expensive inefficient alternative energy sources can not compete.
No matter what your position is on global warming and fossil fuels the fact is that fossil fuels are not going to be replaced by solar and wind power anytime soon. A proper weighing of the economic benefit versus risk of this project leaves no doubt that it should be allowed to move forward.
As a counter to these misguided environmental lobbyists the Governor needs to hear from the people who would get jobs from this project and the businesses and consumers who would benefit from lower energy costs. We need to urge the Governor to reverse his position. He needs to hear from the people who would benefit from this project rather then the misguided special interest groups who currently have his ear.
Governor Chris Christie called an Corzine era law that would help low income seniors and the disabled pay their cable TV bills “a dumb idea.”
“It was a dumb idea in my opinion,” Christie said. “To have the taxpayers of New Jersey pay for cable TV, I mean seriously, has cable TV become a constitutional right now we are going to pay for, in this time of budget constraints?
The Corzine administration implemented the tax on cable bills to fund the program, but never got around to implementing the distribution of the funds. The Christie administration used the $9.2 million generated by the tax to plug the budget deficit last year.
Legislation marks key step in Christie Administration’s comprehensive plan to renew regional economy
Trenton, NJ – Today, Governor Chris Christie signed into law sweeping legislation to enact his reform plans to revitalize the ailing gaming and tourism industries in Atlantic City, and set the region on a new course for economic growth, job creation and prosperity. Recognizing the significance and importance of Atlantic City’s regional economy to the state as a whole, Governor Christie put forward a comprehensive, bold reform plan in July aimed at turning around the deep and unprecedented challenges facing Atlantic City’s gaming and tourism industries.
The bills signed by Governor Christie today, S-11 and S-12, represent critical steps in following through on his commitment to the tens of thousands of New Jersey families whose livelihoods depend on the regional economy, and will set the stage for Atlantic City to once again be a world-class destination resort and an engine of job creation and economic growth. S-11 authorizes the creation of a tourism district within Atlantic City, with the charge of improving public safety, public health, marketing and infrastructure projects and improvements; S-12 provides for the reform and modernization of New Jersey’s casino regulatory structure.
“The challenges faced today by the Atlantic City tourism and gaming industries have been a long time in the making, and significant steps are needed to stop the decline and set a new course of economic growth, job creation and return Atlantic City to the ranks of the best destinations in the world. But, it can and must be done for the economic health of New Jersey as a whole,” said Governor Christie. “Since we announced our plan for reform just over six months ago, we have already taken steps to secure that future – to stabilize the City’s finances and create jobs through new business investment. Today, we are going much further to signal to businesses, to the public and to the people who call Atlantic City home that a new, brighter and more prosperous future is coming again.”
The signing took place at the site of the Revel casino resort, a 53-story, 6.3 million square foot, 3,800 room hotel and casino that, upon completion, will be the biggest such property in Atlantic City. Governor Christie also announced the approval of $260 million in tax-increment financing by the New Jersey Economic Development Authority that will support much needed infrastructure improvements in the South Inlet neighborhood adjacent to the Revel development and pave the way for completion of the $2.5 billion project and thousands of new jobs. The project estimates the creation of 5,500 permanent jobs, 2,600 construction jobs, 1,100 manufacturing jobs, 400 vendor/supplies jobs and 250 professional/consulting jobs. Along with job creation associated with ancillary utility and infrastructure improvement projects, total job creation for the Revel project is estimated at more than 10,000 jobs.
The New Jersey Economic Development Authority also today approved a new policy requiring as a condition of any tax increment financing package of $50 million or more, including the Revel financing approved today, that the state receive success reimbursement payments from the project commensurate with the extent of state financial participation.
S-11 implements several critical elements of Governor Christie’s revitalization plan for Atlantic City. The bill authorizes the Casino Reinvestment Development Authority (CRDA) to establish a tourism district within Atlantic City. Within the territorial limits of the tourism district, CRDA will be authorized to establish land use regulations, implement a tourism district master plan, promote public health and safety initiatives, advance commercial development, undertake redevelopment projects and institute infrastructure improvements. The bill also provides for the merger of the Atlantic City Convention and Visitors Authority into CRDA. CRDA will also enter into a public-private partnership with a not-for-profit consisting of a majority of New Jersey casino licensees, through which they will commit funds totaling $30 million annually for the development and implementation of a marketing program aimed at promoting Atlantic City. In October, the Casino Association of New Jersey announced the formation of such a non-profit and the commitment of the casino industry to contribute at least $30 million annually to promote Atlantic City and support the tourism district.
S-11 directs the Attorney General and Superintendent of State Police, in consultation with the Mayor of Atlantic City and municipal law enforcement officials, to develop a public safety plan for Atlantic City to be implemented by a District Commander appointed by the Superintendent. The plan will include the development of law enforcement best practices, the procurement and deployment of new technology and equipment, and the development and implementation of a coordinated law enforcement strategy to address public safety concerns both inside and outside of the tourism district.
S-12 reforms the state’s regulatory structure for casinos by modernizing, streamlining, and eliminating duplication in the regulatory statutes, many of which were authored more than 30 years ago. Under the bill, the Casino Control Commission (CCC) is assigned the lead role in initial casino licensing matters as well as in adjudicating regulatory disputes. The Division of Gaming Enforcement (DGE) is charged with focusing on the day-to-day regulation of all casino operations. These changes move away from the duplicative and overlapping investigative, oversight, and regulatory functions previously held by the two-bodies and creates a more well-defined system of regulatory authority by the entities.
In addition, S-12 accounts for the significant technological advancements that have taken place since the inception of the regulatory statue by eliminating the current requirement that the Casino Control Commission be continuously present, through inspectors and agents, at all times during the operation of a casino. The bill provides for registration as opposed to licensure of certain casino-related employees and removes certain periodic license renewal requirements. The bill would, however, add a requirement for designated information to be provided periodically by licensees to the CCC and DGE in order to verify ongoing compliance with all legal requirements.
Finally, the bill makes various other changes to state law to remove impediments to efficient and productive casino operations and provide additional flexibility in their operation.
On July 21st, Governor Christie welcomed and endorsed the recommendations of the New Jersey Gaming, Sports and Entertainment Advisory Commission chaired by Jon F. Hanson. The actions taken today fulfill many of the goals outlined in that report, and move forward Governor Christie’s commitment to ensuring the growth and success of Atlantic City’s economy, and the state’s gaming and tourism industries.
Pension reform needs to happen by April or it won’t happen this year
During his Town Hall meeting in Middletown yesterday, Governor Chris Christine laid the blame for inaction on his pension reform package right in the laps of the Democratic legistlative leaders; Senate President Steve Sweeney, Assembly Speaker Sheila Oliver and Senate Minority Leader Barbara Buono. Christie read quotes from the statements each Democratic leader issued when he released his pension reform proposal last September.
The governor laid out the legislative calendar and asserted that is the reform agenda is not passed by the legislature by April, it won’t happen this year as the legislature will focus exclusively on the state budget in May and June and then leave on July 1st to launch the election campaign. All seats in the legislature are up this year.
What Christie didn’t say is that if the legislature fails to deliver his reform agenda before they recess, that the campaign will be about the agenda.
Maybe that’s the campaign the Democrats want. I hope so, because a campaign like that, a referendum on Chris Christie’s reform agenda , could very well lead to a Republican controlled legislature and more conservative reform measures, rather than these compromise measures.
The Governor is disappointed that the President did not address the “big things.”
By Art Gallagher
There was no classic “YouTube moment” confrontation at Governor Chris Christie’s Middletown Town Hall meeting today. But if any of Christie’s statements today are to “go viral” or make national news, this is probably it.
Christie reminded the crowd of over 200 who came out in the snow that he broke from tradition in his State of the State address. Rather than an address that “strokes the erogenous zones of every constituency,” the governor said quoting columnist George Will, Christie said his address was designed to deal with “big things;” fiscal discipline, government employee pension and health care benefit reform, and education reform.
Christie said he noticed that President Barack Obama invoked a similar theme in his State of the Union address last night. Christie said that he was flattered that the President was imitating him.
Christie didn’t say it, but I will, maybe Vice President Biden wrote that part of Obama’s speech.
At about 2:20 in this clip, Christie says that he is disappointed that Obama did not address the federal “big things,” entitlements, in the State of the Union address. Christie said that federal entitlements are analogous the pension and employee heath care reform on the state level, and the President “never mentioned boo about it last night”
In the remainder of the clip, Christie made his case for doing the “big things.” He said he didn’t run for governor to be somebody, that he already was somebody. He said he came to do something.
Christie’s not running for President. He is running for another term as governor. He said he “guaranteed” that there will be somebody on the ballot opposite him in three years promising the easy way. He said that his way will return New Jersey to prosperity and that the easy way would lead to economic ruin.
Governor Chris Christie was in great form this morning as he met with over 200 residents who came out in the snow for a Town Hall meeting in Middletown.
About 40 minutes into the meeting Christie turned to the residents for questions. The first questioner, a councilman from a town with a large regional high school, asked the governor if there was a way that students who drive themselves to school could sign a waiver giving up their school busing privileges to that the district could save money on transportation costs.
Note the reactions of the three lawyers sitting directly behind the governor.
InTheLobby and Capitol Quickies report that Governor Chris Chrisite told a statehouse rally of pro-life demonstrators, “I stand with you,” adding that he stands “with each and every one of those precious human lives.”
Our old Monmouth County friend Bob Jordan, now a statehouse reporter and blogger, quoted Christie on Capitol Quickies as follows:
“What we need to do each and every day is to live our lives in a way that encourages everyone to understand why this cause is so important,” Christie told those gathered. ”To show that we respect the life of every human being, and that every human being is one of God’s creatures and deserves the love and respect that God gives to all us.”
I was immediately reminded of the last time a governor stood on the statehouse steps and said “I stand with you.” That was back on June 19, 2006, five months into Jon Corzine’s term as governor. It was 11 days before Corzine and the Democratic legislature shut down the government.
That day, Corzine joined a rally of 10,000 public employees and declared, “I’ll stand with you for your pension rights …”
Maybe Trenton really has been turned upside down.
Governor Christie had quite a day today. In addition to his unequivocal remarks at the pro-life rally, the governor conditionally vetoed COAH legislation that failed to reform how affordable housing is provided in New Jersey and increases the unnecessary burden on the State’s municipalities.
In a statement announcing the veto, Christie said:
“If the goal of this legislation is to replace an already broken system for providing affordable housing with a common sense, predictable and achievable process, then this bill sorely misses the mark,” said Governor Christie. “The Senate has presented a considerably different version of the legislation I originally supported in June – one that was simple and sufficiently close to the recommendations contained in the March 19, 2010, report of the Housing Opportunity Task Force. This version perpetuates the Council on Affordable Housing (COAH) nightmare by placing further burdens on municipalities and the environment while creating rather than eliminating additional bureaucracies in order to satisfy the needs of special interests. I believe this bill should be amended to return it to its original, beneficial form as passed by the Senate in June.”
The original version of S-1 passed by the Senate in June 2010 called for:
eliminating COAH and the arbitrary affordable housing numbers it assigned to municipalities
requiring that 1 out of every 10 newly constructed housing units be designated as affordable (towns with no growth would have no further affordable housing obligation other than to inventory and rehabilitate its existing affordable housing stock)
limiting State review of municipal housing plans
protection against builder’s remedy lawsuits for municipalities
elimination of commercial development fees, though residential development fees were permitted to be charged if a developer chose not to build affordable units on-site and decided to pay the residential development fee instead
In its current, unacceptable form, S-1:
requires 10% of all the housing units in every municipality in the State to be affordable
necessitates that 25% of the affordable housing obligation be met by inclusionary development, legislating sprawl by increasing the amount of mandated new housing by 500% to 700%.
creates a new regulated entity to review a municipality’s housing plans
causes towns to have to pay for two planners – one to draft the plan, and the other to certify it meets the requirements of the bill
provides no meaningful protection against builder’s remedy lawsuits
requires towns in the Highlands, Pinelands, Fort Monmouth and Meadowlands districts to have 15%to 20% of all new construction as affordable
As if that were not a full day’s work, Christie held a Town Hall Meeting in the Camden County borough of Chesilhurst this afternoon where in touted his pension and public employee health benefit reform package.
The highlights of the Governor’s “fiscal sanity” package are as follows:
Christie Reform Agenda for Public Employee Pensions – At a Glance
The current pension system is underfunded by $54 billion and, unless reforms are enacted, that number will grow to $183 billion by 2041, even if the taxpayers make all statutorily required pension fund contributions.
·Governor Christie’s reforms will reduce total pension underfunding from $183 billion in 2041 without reform to $23 billion in 2041, and
·Increase the aggregate funded ratio from the present level of 66% to more than 90% in 30 years.
A PDF of Governor Christie’s Reform Agenda proposal for pensions is attached to this release.
Christie Reform Agenda for Public Employee Health Benefits – At a Glance
Today, New Jersey’s unfunded liability, or future costs expected in the health benefits system, is $66.8 billion. New Jersey spends $4.3 billion annually on public employee and retiree health care costs, and the problem is only getting worse.
The cost for operating the health care benefits program for public employees and retirees is slowly sapping New Jersey’s budget to the point where it is becoming impossible for state and local government to fund critical priorities and bring rising deficits into line.
·Without immediate action, costs will increase by more than 40 percent over the next four years. By contrast, the average cost to an active public employee will increase by less than 10 percent over the same period.
·The cost of health benefits, as a percent of New Jersey’s annual budget, has grown from 4.5 percent in 2001 to more than 9 percent today.
Governor Christie’s reforms will restore fairness to the system by:
·Transitioning the cost-sharing in the system to a more realistic model,
·Offering more options for employees to choose from, and
·Switching to a system requiring employees to pay a percentage of their premium rather than a percentage of their salary.
Personally, I don’t think the pension reforms go far enough, but that will be the subject of a future post. For this post, I just appreciate how far we’ve come in one year under Christie’s leadership.
Governor Christie will be holding a Town Hall meeting in Middletown on Wednesday morning, 11 AM, at the VFW on Route 36. The doors open at 10:30. Seating is first come, first seated.
Governor Chris Christie will attend a Rally for Life on the steps of the statehouse in Trenton today.
The rally, sponsored by NJ Right to Life, is scheduled for 11:00am through 1:00PM.
Thanks to the MMM reader who pointed out how the Star Ledger chose to frame the news of the rally and Christie’s participation. Rather than refer to NJ Right to Life and Christie as “pro-life,” they said both are “anti-abortion rights.”
I’ve been following the governor pretty closely for the last two years. I never heard him say, “I’m anti-abortion rights.” I have heard him say, “I am pro-life.” I heard him tell of how he became pro-life during one of his wife’s pregnancies. Perhaps this is a matter of semantics. The Ledger’s choice of words is revealing.
Since the Roe vs Wade decision 38 years ago the “life question” has been at the heart of political and cultural divisions within our great country. The Supreme Court defined human life based upon “viability” outside of the womb. The court found, or invented, “privacy rights” in the U.S. Constitution, and declared that a life that is not viable has the unjust power to violate a woman’s privacy rights by growing inside of her, but that once it becomes viable, based upon an unscientific timetable, the rights of the unborn exceed the privacy rights of the mother.
As medical technology has advanced over the last four decades, the “life choice” has become less and less abstract. Technological advances have made the choice to terminate or nourish less a matter of faith or morality. It is a matter of science. The choice is ultimately no longer a matter of lifestyle, economics or convenience. It is a choice of life and death.
