Unemployment Compensation Abuse, Taxpayer Abuse

By Art Gallagher

This is one of those stories I thought twice about writing because I don’t want to give “the bad guys” any smart ideas.  I’ve always thought journalists who reported a crime, particularly a financial crime, and then described in detail how the crime was committed were being irresponsible.  I decided to run with it in order to faciliate the end of the abuse.

Two Middletown former employees who retired in the spring of this year have applied for unemployment compensation and been granted the weekly checks by the Department of Labor and Workforce Development, in addition to their pensions, over the objections of Middletown Township, according to Administrator Anthony Mercantante.  A third retiree who retired in late 2010 has been collecting unemployment compensation for most of this year.

Unlike private sector unemployment compensation whereby the employers pay a percentage of their payroll as an “insurance premium”  to the Department of Labor, Middletown in being billed by DOL for the entire amount that the “unemployed retirees” are collecting, according to Mercantante.  Thus Middletown taxpayers are paying these former employees not to work and paying their pensions.

This is an offensive new twist on double dipping. 

Mercantante said that the Department of Labor informed the township that the unemployment compensation was granted to the retirees because they claimed they would not have retired had the township not announced a layoff plan.

No one from the Department of Labor and Workforce Development was available to comment when I called this afternoon.  I will follow up with them on Monday. 

In the meantime, officials from other municipalities that have confronted the same situation are encouraged to use the comments section of this post to report the abuse.  Readers who are members of the Christie administration, legislators and members of the media, please take note.

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Politics doesn’t have to be a blood sport

By Art Gallagher

I was in Maryland on business this afternoon when I received the news of Alex Desevo’s arrest.    Someone was calling me with a scoop.  Word of the arrest had made it to the holmdel-patch police blotter and the sordid details were leaking out.

My first reaction was sadness.   A member of my community, someone I know by name and who knows me by name, was in the middle of a personal, family and career crisis that was about to become very public and very humiliating.

That Desevo is “on the other side” didn’t even occur to me until my friend who called with the scoop said, “do you know what they would be doing it if was one of us?  They made stuff up about our guys and called their employers trying to get them fired.”

“True, but we’re not like that,” I said.  The truth is some of us are like that.

Within an hour I was receiving more calls.  The APP had the story. Desevo’s professional head shot was on the front page of the paper’s website.   The APP beat me to the sordid details and salacious implications that I wasn’t relishing reporting.

Desevo was not the only Middletown resident charged with possession of a controlled dangerous substance by the Holmdel police on June 18.  He was the only one who became front page news.  That is part of the price one pays when you’re a proverbial big fish in a small pond.

Sometimes, especially on a local level, I think it is appropriate to relate to each other and to both good news and bad news  not as us and they but as we.   

There is no point piling onto Desevo.   He won’t be a candidate much longer. His arrest should not be a campaign issue, assuming he resigns his candidacy.  He needs to get help and do some serious work on himself.  His career is likely in shambles.  His family must be under a lot of stress.

Desevo’s problems are not Democratic problems or Republican problems.  They are  human problems. 

Desevo does not deserve our sympathy, as he brought this upon himself.  Nor is his plight a cause for celebration or scorn.  Concern is appropriate.  Holding to account is appropriate.  Support of his recovery is appropriate.

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Shadow Lake Cleanup Clears Budget Committee

Funding Measure Now Heads to Full Senate

Middletown—Senator Joe Kyrillos, co-prime sponsor of legislation establishing New Jersey’s landmark Environmental Infrastructure Trust (EIT), is pleased to announce that special financing for the cleanup of Middletown’s Shadow Lake has cleared the Senate Budget and Appropriations Committee today:

“It has been a very long fight for the residents of this community,” said Kyrillos. “I am thrilled that the financing for this project is finally nearing approval. The Environmental Infrastructure Trust was established for just this purpose- to restore contaminated natural treasures and improve the environmental quality of our communities.”

If approved by the Legislature, the bill appropriates $2.7 million in low interest financing for the Township of Middletown to dredge the Shadow Lake in order to remove contaminated sediments at the bottom of the lake. The dredge spoils will be transported to a properly licensed facility off site.

“Thanks to the efforts of Senator Kyrillos the residents of the communities surrounding Shadow Lake can rest easier knowing that a project more than a decade in the making is nearing reality,” said Middletown Mayor Tony Fiore. “In addition to the Senator’s efforts in helping secure financing for this project, he has assisted the Township with the NJDEP to find a qualified site outside of Middletown for disposal of the dredge spoils.”

The legislation now heads to the full Senate for consideration.

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EUROPEAN DIPLOMATS TO ATTEND THORNE SCHOOL WW II BATTLE OF THE BULGE SURVIVOR’S REUNION

When over 60 surviving members of World War II’s Battle of the Bulge reunite on May 26, 2011 at Middletown’s Thorne Middle School, they will be joined by representatives of Belgium and Luxembourg.  Thorne School Principal, Mr. Thomas Olausen, announced today that Mr. Francois Knaff, Consul General of Luxembourg, Mr. Herman Portocarero, Consul General of Belgium and Lieutenant Colonel Patrick Eeecloo, Deputy Military Advisor of the Belgium Permanent Mission to the United Nations, would be attending the event.

The reunion will take place as the World War II Battle of the Bulge Monument, which is presently located at Fort Monmouth, is relocated and rededicated at the Thorne Middle School. 

“It is so very appropriate that these diplomats, representing the countries where the Battle of the Bulge took place, be on hand as we honor these survivors of the battle”, Mr. Olausen noted.  The Thorne Middle School is named for Corporal Horace “Bud” Thorne, Congressional Medal of Honor recipient, who was killed in December 1944 during the battle that the monument commemorates.  Surviving members of the Battle of the Bulge, from different parts of the country, will be in attendance.  Principal Olausen further stated: “It is a wonderful honor for us to be able to host these members of the Greatest Generation and their families as we rededicate this symbol which honors the sacrifices made by so many.  It will be a lasting and productive educational tool for our students as well.”

The event will commence at 9 AM in the school auditorium and the Middle School students will read essays especially prepared for the occasion.  The Corporal Thorne Award will be presented to an 8^th Grade Student who exhibits the attributes of Pride, Respect, Integrity, Determination, and Excellence, which are the standards of Thorne Middle School’s Character Education Program.  The school’s Chorus and Band will participate in the event. The monument will then be rededicated in an outdoor ceremony.  Following the ceremonies there will be a reception at VFW Post 2179 in Port Monmouth.  Special awards will be given to all of the surviving members of this historic battle who are in attendance.  All World War II Battle of the Bulge survivors and their families are encouraged to register for the event.

The Thorne Middle School is located at 70 Murphy Road in Port Monmouth.  VFW Post 2179 is located at 1 Veterans Lane, also in Port Monmouth.  For more information and to register for the event please contact (732) 233-9443 or (732) 747 0160.

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Middletown Settles With Superior Officers, Saves 4 Police Officers. Mayor Hopeful That PBA Deal Will Avoid Layoffs

By Art Gallagher

The Middletown Township Committee came to an agreement with the Superior Officers Association that prevents the demotion of four officers, which saves the jobs of four patrolman.

The SOA agreed to pay the greater of 1.5% of their salaries or 25% of the premium of their current PPO health insurance plan or to switch to the Township’s HMO plan and contribute 1.5% of their salaries to those premiums.

The SOA will receive raises for 2011 of 1.5% in October, with no retroactive pay, and 2% per year for 2012, 2013 and 2014.

Mayor Tony Fiore said he is hopeful that the Township will settle with the PBA at their meeting tonight, and thereby save the jobs of 6 additional officers.   Fiore said that the PBA’s representative informed the committee that the union voted to accept the township’s proposal, the details of which are not yet public, over the weekend.  Pending  review today of the documents submitted by the PBA, it appears that police layoffs have been avoided in Middletown.

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Brightbill Not Running For Reelection In Middletown

Middletown Deputy Mayor Pamela Brightbill will not be seeking a third term on the Township Committee, according to a statement released by the Middletown GOP today.

Zoning Board Member and Housing Authority Commissioner Stephanie Murray will be Mayor Tony Fiore’s running mate.  Fiore is seeking his second term on the Township Committee.  The candidates filed their nominating petitions today.

“While my commitment to public service is no less no than it was six years ago, I feel that it is the right time to pass the baton to another active member of our community, which is why I am pleased to support Stephanie Murray for Township Committee,” said Brightbill. “I know Stephanie will make and excellent addition to the Committee and help preserve the quality of life we all enjoy in Middletown.”

In addition to serving as a member of the Zoning Board and Housing Authority, Murray has also served as a member of the Township’s Parks and Recreation and Open Space Committees.  She is the founder of the community group known as “Middletown Mornings” which is an open forum for residents to meet with their local public officials.  Murray holds a B.A. from Fordham University and runs a small publishing company.

Fiore said of Murray, ” I know Stephanie Murray will serve the taxpayers of Middletown well based on her record of service on the Zoning Board and as a Commissioner on the Housing Authority.  Stephanie is not only a tireless member of our community, but also a dedicated wife and mother to three children whose family has lived in Middletown for 10 years.”

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Middletown Introduces Budget With Nearly $4 Million In Spending Cuts

Conforms With 2% Cap Levy Law Absent Needed Tool Kit Reforms

MIDDLETOWN – The Middletown Township Committee anticipates introducing its 2011 municipal budget that is $3.87 million (5.9%) less than the Township’s 2010 budget.

“Middletown’s proposed municipal budget is very austere and in full conformance with the new 2% cap levy law despite the Legislature’s continued failure to enact the Governor’s tool kit reforms that would empower the Township to make further cuts,” said Middletown Mayor Tony Fiore.  “We are hopeful to continue to rein in spending through ongoing negotiations with the Township’s collective bargaining units with a focus on decreasing the Township’s health care costs.”

“Cuts in the proposed budget include the layoffs of 26 employees, including 10 police officers, and the third consecutive year of salary freezes for the Township’s managerial employees,” continued Fiore.  “Middletown will continue to focus on core governmental functions while seeking other ways to continue to reduce costs though interlocal agreements and the Township’s solar initiative that is currently under way.”

Proposed Budget Data and Facts

·         The proposed 2011 municipal budget is $61,114,285 compared to the adopted 2010 budget that was $64,979,576.

·         The proposed budget represents an actual decrease in spending of $3,865,291 (5.9%) from the 2010 budget.

·         The largest cost drivers offsetting the Township’s $3.87 million in budget cuts are tax appeal refunds, State-mandated pension contribution increases of 22%, and costs associated with deferred charges due to numerous retirements last year.

·         The proposed 2011 budget anticipates an increase in the total tax levy of $1,357,855 which complies with the new 2% cap levy law and will cost the average Middletown homeowner approximately $5 per month.

·         The municipal budget makes up only approximately 22% of the average property tax bill, the remaining portion relates to the school and county tax levies.

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Middletown Budget Will Meet 2% Cap Despite No “Tool Kit”

By Nicole Gough

Middletown, March 21- Mayor Anthony Fiore announced that the township committee will introduce a budget that complies with the 2% property tax cap.  He thanked the library board for contributing $500 thousand to the township budget.

Fiore stated on Monday that there would be a budget proposed at the April 4^th meeting despite concerns over the extensive paperwork involved in the $500 thousand from the Middletown Library surplus.

Fiore expressed gratitude toward the library board, saying that he was grateful that “reasonable minds came together” in terms of returning 1/2 million dollars of a $1.2 million surplus.  Fiore also acknowledged that this type of occurrence is not unique to Middletown.  Fiore noted that the township has been under stress in regards to the budget, and the money from the surplus would relieve some of that stress.

“The library still has a good surplus,” he said. 

In response to concerns over whether the .5 million would be included in the April 4 budget, Fiore said that papers were already being prepared in order to maintain expediency. 

 “We will propose a budget on April 4 that will be in full compliance with the 2% property tax cap,” said Fiore. 

 Committeeman Gerry Scharfenberger urged citizens to support the governor’s toolkits, stating that “they will give us the tools we need to operate more efficiently.” 

In response to Scharfenberger, Fiore said the toolkits “make sense for us,” as they “provide mayors like myself the opportunity to do more with our budget.”

Even without the toolkit, Fiore was confident that the budget would move forward.

“We will provide a budget without a toolkit,” he said. “We will move forward, as difficult as it is.”

The Township Committee also addressed concerns regarding the paving project initially included in the library surplus.  Because of the returned portion of the surplus, the project would need to be put on hold. 

 Committeeman Kevin Settembrino, who spoke about parking bundling at a library board meeting, responded, saying the project could continue next year if the board had the money, and “they won’t have to incur interest charges.”

Apart from the library initiative and budget legislation, the meeting also focused on promoting volunteer groups and the Live Where You Work program, which rewards citizens who live and work in Middletown and meet certain income requirements.  Committeeman Steve Massell encouraged citizens to advocate the program and inform others whom they thought might qualify.

 Fiore commented on the solar initiative, noting that it will be expanded to include both the library and the sewer authority.  Fiore said Middletown would not only be the greenest town, but “also the one to generate more bang for buck for our taxpayers.”

Fiore also read a proclamation recognizing March as Developmental Disabilities Month and highlighting the contributions of the Arc of Monmouth.

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Middletown Mayor Addresses Library Concerns

Middletown Mayor Tony Fiore sent the following message to the approximately 6000 Middletown residents who have subscribed to the township’s website and electronic communication program.  The Mayor’s message about the library is also posted on the Middletown website.

Dear Township Residents:

I felt it was necessary for me to respond to the recent flurry of comments and emails regarding the Middletown Township Library. It is unfortunate that some have chosen to engage in the spread of completely false information with regard to the Township Committee’s request of the Middletown Library Board. So let me set the record straight.

First let me make it very clear that neither I nor any member of the Township Committee has ever suggested or proposed closing any library facility in the Township. We would simply not do such a thing.

The situation the Township finds itself in is not unlike that being faced by towns throughout New Jersey. With revenues sharply down due to the economic downturn we remain in and with state-mandated costs ever on the rise, we are now faced with an extraordinary fiscal challenge. This includes the potential for the layoff of a number of employees and even possibly police. Be assured that we do all we can to avoid layoffs and we take the matter very seriously.

The Library budget is different from the Township budget in that state law specifies how much must be allocated to the library each year, whether it is needed to operate the library or not. The result of this is that the library now has a surplus of $1.2 million. While some portion of this surplus is needed for ongoing support of library programs and initiatives, the vast majority is not needed for continued operations. I personally met about two weeks ago with the Library Director and the Board Chairman and asked that they bring back to the library board a request to transfer approximately $700,000.00 – $800,000.00 of their surplus to the Township’s budget. This would be used to offset layoffs and to help fund the continuation of many vital Township services and help to offset the impact of over $4 million in tax appeals.

The Township Committee is fully aware that the library board cannot be forced to do this. However we are asking that they work with us in a unified effort to help all of the residents and taxpayers of the Township. I would note that the Township Sewerage Authority dedicated a portion of its surplus to the Township last year and we anticipate them doing the same again this year.

Many people have expressed concern that the Township Committee is seeking to transfer operation of the library to the Monmouth County Library System. Let me be clear that the Township Committee has taken no action to do this. Such a move would be an absolute last resort, but without the transfer of some of the library surplus it may become a fiscal necessity. Not an option, a necessity. Should this action have to occur, the library would not close, it would simply move under the umbrella of the county and the staff would become county employees rather than be Township employees. Again, we do not want to make this move. We would like to see our library continue as the great Township facility it is. Our hope is that we can work with the Library Board as a team with the best interests of the Township as the goal.

Sincerely,
Anthony P. Fiore, Mayor

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Christie: “I Stand With You”

By Art Gallagher

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.

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