Beck, Oroho Submit Legislation to Stop Simultaneous Collection of Pensions, Public Paychecks

Trenton— Senators Jennifer Beck (R- Monmouth/Mercer) and Steve Oroho (R- Sussex/Hunterdon/Morris) have submitted legislation aimed at ending abuse of the state’s pension system. The bill, S-2716, would prohibit retired public employees that return to government service from collecting pension payments while on payroll.

“Pension payments should only be collected by those who have left the government payroll,” said Senator Beck. “Public employees who game the system by collecting a paycheck and a pension check simultaneously commit the worst kind of double dipping. New Jersey’s taxpayers are tapped out, our pension system woefully underfunded, and neither can tolerate this sort of abuse. Nobody should be able to line their pockets in this manner at public expense.”

The bill prohibits any public employee in the state retirement system from collecting a pension if he or she resumes public employment and is compensated more than $15, 000 annually. Those returning to service after retirement would not accumulate additional pension credits. The bill applies to all state pension plans.

“We must protect New Jersey’s pension systems and it is critically important that we protect the qualified status of those pensions, as well as end any unnecessary strains on the funds,” Oroho added. “There are a variety of good reasons retirees may wish to return to the workforce. However, for the purposes of collecting a pension, and to protect the qualified status of the plans, retired means retired.”

• Tweet

Kyrillos Calls for Firing of CWA Workers in ‘Sick-Out’ That Left 174 Disabled Residents Stranded

Middletown-  In response to an apparent ‘sick-out’ staged by Monmouth County SCAT bus drivers, Senator Joe Kyrillos (R- Monmouth/Middlesex) called for the immediate firing of the 17 CWA workers involved:

“It is outrageous that 174 disabled and elderly clients who depend on SCAT were stranded by what appears to be a coordinated effort by employees to disrupt service without notice,” said Kyrillos.  “The actions of these workers is completely unbecoming of any public servant, and should make every taxpayer in Monmouth County furious.  CWA, the union representing these employees, needs to denounce their members for putting the well-being of these vulnerable individuals at risk, and the employees in question should be fired.”

Seventeen SCAT workers, including fourteen bus drivers for the developmentally disabled and senior citizens, took sick leave with no notice on Friday, February 25th- the same day as a coordinated demonstration organized by labor leaders at the State Capitol.  Service was disrupted for 174 clients who take SCAT buses to medical appointments or work.

“The rights of workers to demonstrate, protest, and take appropriate leave from work for personal purposes are not disputed,” Kyrillos stated.  “However, it is not their right to abuse sick leave and disrupt a system many people have come to rely on.  In fact, it is a breach of contract and should be punished to the fullest extent possible.  This type of behavior not only hurts the people SCAT serves, it harms the reputation of all public workers.”

• Tweet

Oceanport Task Force Comments on Decision to Seek Requests for Proposals for the Private Operation of Monmouth Park Racetrack

The Governor’s announcement today that the New Jersey Sports and Exposition Authority would issue, in the near future, a Request for Proposals for the lease of Monmouth Park, including assignment of additional off-track wagering operations, comes as no surprise to the Oceanport Task Force. Any operating lease must protect the Borough’s tax payment as this small community of 6,000 works diligently to overcome the approaching closure of Fort Monmouth (September 2011); reinvents local government in response to the Governor’s 2% cap law; and works cooperatively with its largest taxpayer, Monmouth Park.

We believe the Borough and the Thoroughbred Horsemen have similar goals for Monmouth Park and that both have much at risk as the transition takes shape for horse racing. Horse racing is an important and vital cog not only Oceanport’s economy and the economy of Monmouth County, but for the entire State of New Jersey.  Horse racing contributes 7,000 jobs, $110 million in federal, state and local taxes, and 57,000 acres of working agricultural landscape and open space to our “Garden State”.  

• Tweet

Governor Christie Moves Horse Racing Closer to a Self-Sustaining Model with Legislation to Expedite Off Track Wagering

Trenton, NJ – Governor Chris Christie today moved forward with his commitment to making horse racing in New Jersey a self-sustaining industry by signing legislation to expedite the establishment of off-track wagering facilities in New Jersey. Another step forward comes early next week, when the New Jersey Sports and Exposition Authority will issue a request for proposals to bring a long-term solution to Monmouth Park through private operation. 

On December 17, 2010, Governor Christie announced a break-through agreement to end public subsidies of operations and purses for Standardbred racing at the Meadowlands Racetrack through the lease of that facility to the Standardbred Breeders and Owners Association (SBOA). Governor Christie is looking forward to similar progress with Monmouth Park and Thoroughbred racing there with the RFP for a private operator. 

“We were successful in the Meadowlands, and we can do the same for Monmouth Park to the benefit of New Jersey taxpayers,” Governor Christie said.  “I want to see a vibrant but self-sustaining horse racing industry in New Jersey, but that can be accomplished without tens of millions of dollars in taxpayer subsidies every year.” 

Assembly Bill 1705, which Governor Christie conditionally vetoed on January 31 and the Legislature subsequently amended to include the Governor’s recommended changes, removes barriers to the establishment of OTWs by permitting persons other than racetrack operators to run OTW facilities, making OTWs a permitted use in all municipal land use zones, and increasing the accessibility to liquor licenses for OTW operators. 

Despite enactment of an original OTW law nearly a decade ago, only three of the 15 facilities allowed by law were established. Governor Christie’s conditional veto was necessary to preserve the NJSEA’s ability to transfer licenses in connection with the sale or lease of the state’s racetracks.  It also eliminated a 1 percent fee on OTW operators, but expressly noted that the Administration will work with the Legislature to find an alternative source of revenue for OTW host municipalities

• Tweet

Menna Supko & Nelson LLC Wins Turnpike Bid Protest

Forces Rescission of Pre-Qualification Previously Granted By Authority In
Relation To Extra Heavy Duty Towing and Recovery Services Contract

On February 23, 2011, Menna Supko & Nelson LLC attorneys Brian M. Nelson and Michael P. Supko, Jr. won a bid protest before the New Jersey Turnpike Authority (“the Authority”) on behalf of our client, B&L Towing & Recovery of Carteret, which had bid on a highly valuable contract to provide extra heavy duty towing and recovery services on one of the busiest sections of the New Jersey Turnpike.
 
There is a very difficult burden to overcome in such proceedings.  Not only must the Authority essentially admit error in accepting unqualified contractors or bids, but the law provides the Authority extraordinary discretion in making determinations interpreting its own bid specifications and needs.  Nevertheless, through a hearing conducted by the Authority in which its own witnesses testified against our client’s position, we were able to demonstrate that the Authority overlooked important written interpretations of its own specifications resulting in a determination that our client’s primary competitor was not qualified to bid.
 
The New Jersey Turnpike is one of the most heavily travelled roadways in the nation upon which millions of dollars in interstate commerce takes place every day.  To keep things moving when accidents occur, the Authority privately contracts for extra heavy duty towing and recovery services that must be provided on a 24/7/365 basis by only the most experienced contractors with millions of dollars of specialized equipment that can quickly and safely remove large tractor-trailers and their loads from the roadway.  Accordingly, the Authority drafts highly detailed pre-qualification and bid specifications to ensure that only the most highly qualified contractors with the proper equipment are pre-qualified to bid on such contracts.
 
Like many pre-qualification or bidding proceedings, there is a period for written questions to be submitted with written answers being provided by the contracting entity that become part of its specifications.  Frequently this valuable process is overlooked by both bidders and contracting entities, which can use it to their competitive advantage to clarify vague or ambiguous specifications.  While contracting entities have significant discretion, they must still play by the rules they are subject to and the specifications they establish. Further, all too often government entities and private bidders fail to conduct adequate due diligence regarding the growing body of laws and regulations governing public bidding processes. Specifications are also frequently overlooked and merely copied from other entities without a complete understanding of the terms and conditions contained therein that reduce competitiveness or cause other problems, outdated or inapplicable forms are used, and most State and local pay-to-play regulations continue to be misunderstood.
 
New Jersey has hundreds of public entities, authorities and commissions that have been subjected to increased scrutiny recently by the State Comptroller, which has through numerous reports now, highlighted poor or improper bidding practices by many governmental entities.
 

• Tweet

The Lincoln Club of New Jersey is Launched

Newly Constituted Political Club Plans Greater Engagement and Relevance

• Tweet

Governor Christie Releases Fiscal Year 2012 Budget Proposal

Trenton, NJ – Advancing his vision for a New Normal in state budgeting, Governor Chris Christie today presented a $29.4 billion budget for Fiscal Year 2012 that cuts real spending for a second consecutive year. The Governor’s Budget proposal includes $200 million in focused tax cuts, provides additional property tax relief, increases school aid and funds a reformed state pension system, while preserving or increasing funding to protect our state’s most vulnerable citizens. The Fiscal Year 2012 Budget marks a departure from the Trenton tradition of budgeting to meet deficit projections that embrace wish-list spending by legislators and assume continuous funding increases that irresponsibly ignore actual revenue sources and the fiscal health of the state. 

The Governor’s Budget – which reduces real spending by 2.6 percent from the current fiscal year – hits the reset button on the state budgeting process and starts with the refreshing assumption that budgeting and spending must be reality-based and zero-based. The New Normal means developing a bottom-up approach – establishing priorities and funding them based on revenue that is actually available and predictable versus the old approach of assuming every line item and program will automatically be funded at the same or higher level than prior years.

“The old way of budgeting and thinking must be stricken from our collective minds if we are to successfully emerge from this fiscal crisis with permanently reformed budgeting and spending habits,” Governor Chris Christie said.  “This is a new paradigm for state government – a New Normal – that cuts and spends responsibly, incentivizes our local governments to do better with what our taxpayers entrust to them, and causes businesses to feel welcome and want to stay and expand or relocate to our state.” 

The Governor’s Budget proposal adheres to necessary spending and budgeting discipline, but also meets New Jersey’s most vital spending priorities.  Among those priorities in the budget:

·         Increases education aid to every school district in New Jersey by a total of $250 million;

·         Fulfills the statutory commitment to make a $506 million payment to a reformed state pension fund, representing the first funding to the defined benefit plans since fiscal year 2009;

·         Provides $200 million in job-creating, strategic tax cuts that are responsible and sustainable;

·         Doubles funding for the Homestead Rebate to provide direct property tax relief in the form of a property tax credit under the newly named Homestead Benefit program;

·         Protects municipal aid and keeps funding at fiscal year 2011 levels to help towns meet the new 2 percent property tax cap (while decreasing by 10 percent the category of Special Transitional Aid to cities, in keeping with the Governor’s pledge to end cities’ reliance on the aid as they adopt best-practices budgeting to improve fiscal and management reforms); and

·         Increases and secures New Jersey hospital funding by a total of $20 million, and increases funding for student financial aid by the same amount.

The Governor’s Budget takes all possible steps to maintain the safety net for New Jersey’s most vulnerable and at-need individuals and families.  From prescription drug aid for seniors to helping low-income tenants stay in their homes, the Governor’s Budget includes billions of dollars and:

·         Preserves critical spending and fully funds the fiscal year 2011 increases to the Pharmaceutical Assistance to the Aged and Disabled (PAAD) and Senior Gold Prescription Assistance Programs without increases in co-pays or eligibility – keeping it one of the most generous such benefit programs in the nation;

·         Allocates $20.4 million to help the developmentally disabled lead richer, happier lives through new community placement and services, and funds day programs and other services; similarly, the budget continues and expands funding for the requirement that the state expand the number of residential and community settings for New Jersey’s mentally ill;

·         Preserves the current level of support for higher education, after years of cuts, while increasing student aid programs by $20 million and providing $15 million for capital improvements at community colleges;

·         Provides resources to keep 4,300 low-income citizens in their homes and apartments, including $25 million from the New Jersey Affordable Housing Agency Trust Fund and $9 million from the Housing and Mortgage Finance Agency; and

·         Avoids an increase in NJ Transit fares and expands bus service to select growth markets.

The damage caused by years of fiscal mismanagement, coupled with the lingering effects of the national recession, will continue to restrain state spending for years to come. The reality is that the New Normal of the current economic and fiscal climate necessitates more painful choices in how the state allocates finite taxpayer dollars.  Facing up to those realities, the proposed budget continues on the path of making difficult, often painful choices in nearly every department.  Funding in even worthwhile, popular programs is reduced or eliminated in order to fund priorities.

Governor Christie will continue to insist that the shared sacrifice be spread among state employees as well, including in payment of a fair share of medical costs.  By increasing co-payments and premiums to levels still below what federal employees pay, the state will save $323 million that will be used to pay for other critically important programs – and prevent increases in some of the highest sales, income and property taxes in the nation.

Finally, to pave the way for the best possible outcome for our state and its people as we deal with the New Normal and emerge from recession, the Governor intends to better position our businesses and attract new ones with tax cuts, reform and incentives to spur job growth and business expansion. To that end, he proposes a comprehensive but phased-in program of $2.5 billion in job-creation incentives over the next five years.  As part of the program, Governor Christie is proposing for Fiscal 2012  tax cuts and reforms resulting in approximately $200 million in savings for businesses. 

The package outlined by the Governor increases the state’s competitiveness in a responsible and sustainable manner by providing critical tax reform and incentives across a variety of tax-policy areas, including: loss carry-forward relief for small businesses, a reduction of the S-corporation minimum tax, increasing the credit allowed for research and development investments, exemptions for business software technology reinvestment, increasing funding for economic development programs, and the phasing-out of the Technology Energy Facility Assessment to provide needed relief from New Jersey’s already-high energy costs.

Governor Christie has committed to only putting in place tax cuts and incentives that are paid for within the context of a Constitutionally-balanced state budget.  By providing for a phase-in of the program, the fiscal impact rises with the expected expansion of the state’s economy while minimizing the impact on the state budget each year.

The budget proposal, a representation of the Governor’s commitment to maintain fiscal discipline, also outlines a bold reform agenda to take on the big issues facing New Jersey, including the Governor’s comprehensive reform plans to restore fiscal sanity to out-of-control pension and health benefits systems, make 2011 the Year of Education Reform to bring the opportunity of a high-quality education to every child, and the pro-growth, responsible package of tax reforms and incentives to create Jersey Jobs and increase New Jersey’s competitiveness, as outlined above.

• Tweet

Governor Christie Releases Recommendations for New Capital Program for SDA Districts

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.

• Tweet

With county roads clear, crews assist state

County, Manasquan OEM rescue dozens stranded on Route 18

FREEHOLD, NJ (December 28)– With Monmouth County roads showing blacktop one day after the snow stopped falling, county road crews have been deployed to assist the state. This afternoon, four county tandem trucks with snowplows and heavy equipment began clearing beleaguered Route 18.

Meanwhile, the county Office of Emergency Management (OEM) and Manasquan OEM rescued about two dozen motorists who had become stranded on Route 18. A convoy of Army trucks Manasquan normally uses for tidal flooding was dispatched Sunday night and rescued 12 to 18 people. The same convoy was deployed last night and picked up another 11. Route 18 had not been plowed.

On Sunday and Monday nights, county snowplow operators also cleared roads assisting Jersey Central Power & Light Co. personnel who were responding to power outages.

“County roads such as Routes 524, 537, 547 and many others are showing blacktop today as a result of the work county road crews have been doing since 10 a.m. Sunday morning,” said Freeholder John P. Curley, liaison to the county Department of Public Works and Engineering. “The county’s public works and engineering crews do an excellent job keeping county roads safe and drivable.”          

Monmouth County’s Public Works crews have been working since 10 a.m. Sunday morning when they began applying salt brine to county roads in advance of the predicted snowfall. The salt brine helps prevents snow and ice from bonding to the road surface, making plowing that much easier after the snowfall. As a result, most county roads showed blacktop today.

Monmouth County is responsible for about 1,000 lane miles of roads in the county. The county has 115 trucks outfitted with spreading and plowing capabilities. About 200 personnel were working to clear the snow from roadways as a result of this storm.

“One of the challenges with this storm has been the wind,” said John W. Tobia, director of the county’s Department of Public Works and Engineering. “The one-two punch of the steady 10 to 15 mph winds and gusts of more than 40 mph have been undoing some of the road work, but we have been diligent and have cleared the county roads – most of them are down to blacktop.”

“We began gearing up for this storm on Saturday,” Tobia added. “We opened up our snow room to monitor the storm’s progress and we began dispatching crews from the county’s nine highway districts on Sunday morning.

At that time crews began applying the liquid salt brine. Then, before the snow actually started falling, the crews began applying rock salt treated with magnesium chloride.

“The key was to keep the ice and snow from bonding to the road surface,” Tobia said. “Some lanes were slushy instead of iced over. That’s generally the first step before the plows come by and push it all aside.”

According to the National Weather Service, snow and windy conditions began in Monmouth County late Sunday morning and produced a higher than average snowfall overnight Sunday into Monday morning. Acting Gov. Steve Sweeney declared a state of emergency in New Jersey due to the blizzard that moved through the state during that time.

Monmouth County concentrates its efforts on county roads first and then works to assist municipalities with their plowing needs. Through shared service agreements, county road crews helped clear roads in Howell, Wall and Upper Freehold townships. They also helped plow the National Guard Armory in Red Bank. The towns reimburse the county for any resources used.

A number of towns also purchase magnesium-treated salt from the county at a lower cost.

This is the third year the county has been using the salt brine combined with magnesium chloride-treated rock salt. The salt brine and a pre-application of treated rock salt prevent the snow and ice from bonding to the roads, and the treated rock salt is environmentally friendly. It does not burn the grass or other roadside vegetation nor does it corrode the trucks or the steel bridge spans.

The new rock salt is much more efficient than the old rock salt, which was very corrosive to bridge structures, roadside vegetation, the roadway itself and trucks and equipment, Tobia said.

“We have found that magnesium chloride-treated rock salt is much more effective and, therefore, there is a savings in man hours and material,” he said. “We use approximately 30 to 50 percent less material and reduction in spreading trips, depending on the snow event, for the same result. By reducing the number of trips, we are reducing costs and greenhouse gas emissions.

As a result, there have been far fewer telephone calls from local police departments about trouble spots, Tobia said. Typically, when police dispatchers call to report icy conditions – usually on bridges or curved roadways – the county dispatches additional trucks to perform some spot treatments.

“County highway personnel set the standard and example on snow and ice control operations,” Curley said.      

• Tweet

Road Crews Working Around the Clock to Clear Snow-Covered Roads

 Mayor Declares Local State of Emergency

Township road crews continue to battle one of the most severe snow storms in recent memory with a goal of reaching all township roads by midnight on Tuesday, said Mayor Gerard P. Scharfenberger.

• Tweet