The governor's office just released video and transcript of the signing ceremony this week of the hotly debated property tax cap. Notably absent, as she was during the agreement announcement headlined by Sen. Steve Sweeney and the governor, was Assembly Speaker Sheila Oliver. John McKeon stood in representing the Assembly. Here's the video. Transcript is after the jump.
As you may know, I live in Steve Sweeney's district. I was surprised recently to see some campaign mailers in my mailbox because it's not campaign season. It turns out the mailer was from Reform Jersey Now. Here are the scans:
I haven't heard of people in other districts getting such mailers.
(I'd like to say I did the opposite of what they wanted, but as it turned out, Sweeney reached a deal averting a constitutional amendment before I got around to it.)
At the start of the Independence Day weekend, Senate President Sweeney and Gov. Christie stood at a podium and announced an accord on their very different property tax cap proposals. Notably absent was Assembly Speaker Sheila Oliver who said during the final hours of negotiation that she wasn't part of any closed-door deal. And in fact, she actually left the state house before Christie and Sweeney's joint press conference. That left a lot of people wondering what she might say or do when she came back to Trenton.
But this afternoon, Oliver now says she won't "stand in the way" of the agreement to lower the property tax cap from its current 4% to 2%.
Oliver also talked about why she ditched the much-heralded press conference Saturday. It was because the two men had already hammered out a deal before consulting her:
Why should I participate in a photo op for something I know nothing about? [snip] I wasn't upset. I won't call it upset. I just felt that the General Assembly as an institution ... should have been afforded a little more recognition in terms of the protocol of how government works.
How does that make you feel about Trenton, Blue Jersey?
This Saturday, Governor Christie and Senate President Steve Sweeney held a press conference to announce a deal on a property tax cap. The agreement is a 2% cap on property tax increases with only four exceptions: (i) rising pension and health care costs, (ii) debt payments, (iii) rising school enrollment and (iv) states of emergency.
Two facts quickly emerged from this press conference. First, Assembly President Sheila Oliver is not on board yet. This is a deal between the Governor and the Senate President only.
Second, this compromise allows municipalities to increase property taxes for pension and health care costs. Which is a big win for public employee unions, who are now free to negotiate contractual increases without the limitation imposed by a hard cap. Which is why everyone's attention now turns to the "tool kit," which will strengthen the hand of municipalities in negotiating with unions.
So it seems that Chris Christie may have fallen into exactly the trap forseen by the Wall Street Journal on its editorial page this weekend:
"One temptation for Mr. Christie would be to settle for too little reform when his political capital is at its highest, which was Arnold Schwarzenegger's original mistake in California. When Arnold proposed more far-reaching reforms later, the public mood had changed and he was routed. Mr. Christie's best reform opportunity is now, and taxpayers everywhere should hope he succeeds."
So what we have is an odd form of political theatre. The Governor wanted to announce a deal before people started showing up for 4th of July fireworks that had been cancelled. So we have a cap that has a hole big enough to drive a union contract through and a deal with half of the legislature.
What this means for the Governor who was building a national reputation as a union buster, or for the taxpayers, remains to be seen. But, from my viewpoint, it is a shocking reversal of position for the Governor, who has been making teachers the scapegoat for the State's fiscal problems for some time now. Without a hard cap, the "tool kit" better include a sledgehammer.
I wouldn't be surprised if the Governor was once again faced with a revolt from within his own party. And if I were Sheila Oliver I would hold out for $7.5 million for women's health before agreeing to anything.
Governor Chris Christie, LG Kim Guadagno, and Senate President Steve Sweeney have just finished a press conference to announce an agreement on the property tax cap agreement reached this afternoon. Also at the podium were Senate Minority Leader Tom Kean, Jr. and Assembly Republican Leader Alex DeCroce.
Notably absent was Speaker Sheila Oliver, who all day via a spokesman signaled her distance from the agreement, including a release today saying she was "not part of any closed door deal." In fact, to a reporter's question about the Speaker's absence from the kumbaya moment - if indeed it really was one - the Governor said she had left the state house.
The agreement, announced at the Governor's office, is being called a "hard cap," but there are exemptions: health care costs, pension costs, debt service and capital expenditures, and emergency allocations. I'm also told that increase in school enrollment is exempt. Local voters can overturn and exceed the cap by 50% plus one vote - a simple majority vote.
Here's the way they're going to get there: Sweeney's own 2.9% cap legislation, the already passed S-29, will be the starting point. There will be a conditional veto of that by the Governor and the rate will be statutorially capped at 2%. Sweeney will post the Governor's conditional veto for a vote in the Senate on Thursday, July 8.
Local officials who budget beneath the cap would be able to "bank" the difference for three years. All other exemptions in the current 4% cap law would be eliminated under the new legislation.
An avalanche of press releases began arriving even before the press conference ended, with the jubilant Republicans definitely speaking out first. I'll post some of the statements in Comments, below.
Speaker Oliver will apparently be meeting with her caucus. Nobody wants to infer more drama than there actually already has been. But I imagine there may be shoes yet to drop.
There was a good deal of activity in Trenton today as the Governor called the Legislature in for a special session. At the beginning of the day, Governor Christie was demanding a 2.5% constitutional cap and the Senate wanted him to address them separately. By the end of the day, the Senate showed up for the Governor's speech and Christie was ready to go along with a statutory cap with less exemptions than Democrats proposed, rather than the constitutional cap. You can see 6 ABC's report on the day:So as the day ended, the question was what's next? Sweeney said that the Senate and Assembly will hold budget hearings tomorrow, but he would not call the full body into session:
"We're going to work very hard through the summer - through the summer, all through the summer. We're looking at every Thursday being in, bringing experts in, talking about real policy issues and how we can make New Jersey better," Sweeney said.
"We fulfilled our requirement constitutionally by being here, and he addressed us. The budget committee will be here tomorrow. If he wants, I'll be here Saturday, Sunday. I don't have a life. Honestly, I'll hang out with him in Trenton if he wants. But we're not calling our full Senate in over the weekend," Sweeney said.
"We believe the governor's constitutional authority means when he calls a session of the Legislature, that means the full Legislature. And he can do that as many days as he sees fit," Drewniak said.
"We would hate at this stage, given that we recognize the importance of the spirit of cooperation, to have to bring this to the attention of the attorney general and sue the Legislature to get them to meet their obligation," Drewniak said.
Senate President Stephen M. Sweeney Wednesday night sent the following letter to Gov. Chris Christie:
Dear Governor Christie:
I am in receipt of your letter dated Monday, June 28, 2010, directing the Legislature to meet in special session on Thursday, July 1, 2010, for the purpose of undertaking discussion related to property taxes, including on the measures that constitute your "tool kit" for municipal and school administrators and a proposed cap on property taxes.
I appreciate your willingness to convene further consideration of options to control property taxes in New Jersey. It is my hope that you will sign the legislation recently approved by both houses that will significantly lower the current statutory cap and eliminate the waivers to this cap. But I recognize that all options require due consideration, deliberation, and compromise.
To that end, I am directing the Senate to meet at 3 p.m. Thursday to begin immediate discussion on your proposals as well as other proposals members on both sides of the aisle have to address our state's property tax crisis.
I would welcome you to the Senate to deliver remarks at approximately 6 p.m.
Property taxes and the state's fiscal integrity are matters of great concern to all New Jersey residents. This Legislature will confront these issues in a manner that will ensure fairness to the taxpayer and preserve the quality of life for all New Jerseyans. The residents of New Jersey deserve nothing less.
On the Record has Michael Aron talking about property tax caps with Senate President Sweeney and Senator Kyrillos
Over on Reporter's Roundtable we have Michael Aron and the panel the Legislature state budget votes, the battle over property tax caps and family planning funding cuts.
This weeks panel included Lisa Fleisher of the Star-Ledger, Josh McMahon for NJNewsroom.com, John Mooney from NJSpotlight.com and John Reitmeyer with The Record of Bergen County
You can click on the images to watch the stream of each show. Below the fold I'll put another recent interview between Senator Sweeney and Assemblyman DiCicco over the tax cap issue.
With the news that Cory Booker will stab his fellow Democrats in the back by supporting a 2.5% property tax cap constitutional amendment, http://www.politickernj.com/ma... , it seems pretty clear that those in a position of leadership in Democratic state politics are the most conservative lot since the 1950s. They are DINOs/Republicrats.
This not a first for Cory Booker, aka, the Brett Schundler of Newark:
In addition to Mr. Lesniak, the bill enjoys the support of Newark Mayor Cory Booker, a Democrat, who is appearing in a commercial promoting it this month.
The bill being, the diversion of public funds to private and parochial schools bill. Pushed by another Republicrat, Ray Lesniak. Who held a rally, masquerading as a hearing, in favor of it. Where opponents were shut out. Just as he did with S-1, the Repeal Mt. Laurel bill, which is Lesniak's pride and joy. Yet, this miscreant has the nerve to say, in the WSJ article quoted above:
Lesniak, who calls himself the "most liberal Democrat" in the Senate
If by liberal, he means conservative, then he might be right. But he'd have to compete with Senate president Steve Sweeney, who might be the most anti-union elected official who holds a union card since Ronald Reagan. His war against, and demonization of, state workers has been going on for quite a while now.
You also have the Essex County executive, Joe DiVincenzo, last seen holding hands with Chris Christie.
And last heard declaring that he agreed with Christie 95% of the time.
The only statewide or county leader to represent Democrats, as opposed to Republicrats, is Shelia Oliver. Yet, no one ever heard of her before last year, when she was picked out of obscurity to be speaker, in a rancid political deal between Sweeney and Lesniak to dump Dick Cody (remember him?). She is not a legislative heavyweight, and carries little weight, at least so far, in the media.
This is the depressing landscaping facing Democrats, especially progressive Democrats, in this state. Perhaps it's time for a progressive version of the teabaggers to let the Democratic leadership in Trenton and elsewhere know that we are not happy, and that they are not safe in their seats.
This diary produced a lot of comments - 24 so far - and those comments include a referendum on Steve Sweeney, Cory Booker, Sen. Ron Rice, caps hard and soft, North v. South, marriage equality advocates, and anonymous posters like firstamend07. Where do you come down on all this, Blue Jersey? Anything here you want to agree with? Tear your hair out over? Excoriate? - promoted by Rosi Efthim
Governor Corzine had a good idea when he set up a cap on Property taxes. Something had to be done.
Christie took that idea and by once again being a demagogue has tried to set up an unrealistic,unworkable hard cap of 2.5% that will only cause chaos and hardship.
Enter Senate President Sweeney. Once again ,bring the voice of moderation and realism , he looked at Corzine's Cap idea and looked at Christies Cap idea and came up with a realistic ,workable Cap plan that is rooted in real world problems.
Is his plan perfect ? Of course not. But leadership is about reviewing problems ,listening to people, and coming up with a workable plan.
This is how Sweeney works. That Is why this State has a high minimum wage.That is why this State has a Paid Family Leave Act. That is why this State enacted fair and responsible Pension Reform .
Like the guy or not he is a leader and he gets things done.
The State Supreme Court heard the case regarding the Tea Party attempt to recall Senator Menendez. JRB called in to comment on the makeup of the courtroom on Blue Jersey Radio last night, as this was the first case without Justice Wallace, giving us this photo of where he once sat:
We wrote earlier about how Governor Christie is trying to eliminate the independent State Commission of Investigation, which is a part of the legislative branch and move it's responsibilities to the Office of the Comptroller, an Executive branch department. Senate President Steve Sweeney is not ready to go along for this ride and quips that it may be a slippery slope:
"We have a lot of things to fix and I am going to work with Christie . . . but this isn't one of the ones that's broken. So, we're not going to fix this. It is the Legislature's investigative arm. If I let him do this, maybe he will eliminate the Legislature next."
In a shorter time than it would probably take you to name the millionaires in Chris Christie's tight circle of advisors, the Governor has vetoed the Democrats signature legislation, the 'millionaires' tax' on taxable income above $1 million to direct funds to benefits for NJ seniors.
Two minutes, from the time Senate President Steve Sweeney certified passage of the tax passage Christie vetoed the bills. The Assembly passed the bills this afternoon, swiftly followed by the Senate. Sweeney walked the bills from the Senate chambers to Christie's office, and handed them over to a waiting governor.
As described by Star Ledger's statehouse staff, the Governor's spokesman Michael Drewniak was also waiting:
"What took you so long ?" asked Christie spokesman Michael Drewniak.
The paper's account makes no mention of it, but I'm 100% certain there was a snigger involved.
To override, the Democrats - and today's voting was along partisan lines - Democrats need a two-thirds majority in both the Assembly and Senate.
Consider Saturday's rally at the state house in Trentonair support ground support for legislative challenge to Gov. Christie. Come if you can. I still maintain that only if New Jerseyans across a wide spectrum show up in addition to organized labor support, will the rally have impact. I don't know if there are legislators on the fence on this issue - it's hard to imagine there are - if there are, a crush of angry New Jerseyans may have some impact. Right now, we're playing Christie's game.
Updated 3:51pm to include statements by Sen. Frank Lautenberg and NJDSC Chair John Wisniewski.
Following is text of Democratic leaders' response to Gov. Christie's budget fix announcement today that he would eliminate his proposed cuts to state pharmaceutical programs for seniors and the disabled.
(For another perspective on this, here's a diary by Bill Orr.) Senate President Stephen M. Sweeney (D-Gloucester/Cumberland/Salem)
The Governor may be applauded for listening to the voices of senior citizens from across New Jersey, but this in no way ends the very important debate the Senate will still take up tomorrow.
For someone who famously criticized Trenton for its Alice In Wonderland budgets, the Governor has apparently been staring into the same looking glass. While Democrats have identified a solid revenue source to protect our elderly and disabled, the Governor is cobbling together a mishmash of what-ifs and maybes from the federal government and the pharmaceutical industry.
Countless seniors are still facing property tax increases that threaten to drive them from their homes while the richest New Jerseyans are still going to get a massive income tax cut. Just like the Queen of Hearts, this budget still yells 'Off with their heads!' to too many.
The Governor may be trying to write a new chapter, but it still reads like the same old story.
Assembly Speaker Sheila Y. Oliver (D-Essex/Passaic)
It's about time Gov. Christie started coming around to our point of view on protecting senior citizens, and we welcome him to this discussion sparked by the Democratic Legislature.
The governor's plan still shoves at least a $1,295 property tax increase onto senior and disabled residents, and that's unacceptable.
We'll evaluate the governor's proposal, but our plan provides the means through true shared sacrifice to ensure senior citizens get the prescription drug help and property tax relief they need. We will move forward with it as planned to guarantee property tax and prescription drug help is on the way to our most vulnerable residents.
Senate Majority Leader Barbara Buono (D-Middlesex)
I am pleased that Governor Christie reversed his course in response to mounting pressure from the Legislature to restore cuts to prescription drug programs for seniors. There is so much need as a result of these unprecedented economic times.
However, I seriously question the likelihood we will achieve the savings the Governor predicts will pay for this restoration.
The issue remains why half-a-percent, or 16,000 taxpayers, who earn over a million dollars shouldn't be made to sacrifice a little so that others don't have to sacrifice so much.
Assembly Majority Leader Joseph Cryan (D-Union)
While I'm pleased to see the governor begin moving toward the Democratic plan to protect senior citizens, I see no reason for anyone to trust this new plan on face value. This is, after all, a governor who has so far only kept one campaign promise - protecting a tax cut for the rich.
The governor's latest plan still pushes a massive property tax increase onto seniors and is based on questionable assumptions.
Our plan guarantees property tax relief and health care assistance for senior citizens while ensuring everyone joins in the shared sacrifice. I look forward to its passage and hope the governor continues to move in our direction to provide senior citizens with reliable prescription drug and property tax relief.
Senator Frank Lautenberg
Today we see how President Obama's health care reform law is already working to deliver tangible benefits for New Jersey's seniors. Thanks to the health care reform law, New Jersey's seniors will be shielded from the budget ax that threatened to make their prescription drugs more expensive and less accessible. The new health care reform law will soon bring even more benefits to millions of New Jerseyans.
Under the new Health Care Reform law, people with pre-existing conditions can no longer be denied coverage by an insurer, and insurance companies will no longer be able to drop people's coverage when they get sick and need it most. In addition, the law will create a Health Insurance Exchange to provide people who don't receive coverage through their employment to choose among affordable health care plans. It will make health insurance policies more affordable and improve access to quality, affordable health care for children and vulnerable populations. The new health care reform law also strengthens Medicare by phasing out the prescription drug coverage "donut hole," and extending the solvency of the Medicare Trust Fund. Starting June 15, 2010, seniors who reach the Medicare prescription drug coverage gap or "donut hole" will receive $250 payments to assist them with their drug costs.
NJDSC Chair John Wisniewski
I applaud Governor Christie for finally recognizing that his warped vision of shared sacrifice, when applied to our older residents, would have forced many of them to do without important medicine that enhance and preserve their quality of life. Today Chris Christie, bowing to pressure from Democrats, announced he was reversing course on huge cost increases for seniors in New Jersey's PAAD program. I hope instead of trying to act like a heroic convert, he thanks who is truly responsible for the 'found money'. Most of the funding cited by his office today comes as a result of the passage of the historic Health Care Reform passed by Democrats in Congress and signed by President Obama.
So while he refuses to stand up to his many Republican colleagues in the legislature pushing him to sue the federal government to stop health care reform, he has no problem taking credit for the benefits from the bill."
Hopefully Governor Christie will also come around on our plan to restore property tax rebates to hundreds of thousands of senior and disabled homeowners.
Three decades ago, a relative of mine became one of the Reagan Democrats because his stupid union union told him to vote that way. He was so proud. Until the day he found out that Reagan cut veterans' health benefits. He said, "I voted for him because he was going to cut the special interests. How can veterans be a special interest?"
Illuminating, right? Same thing's going to happen to Christie-loving high-fiving parents who find out Junior's band teacher, and AP classes are no more, and baby sister's SOL for after-school care so Mom 'n Dad can work. Unions are organized. But it's going to be interesting to see how many civilians show up. For this rally to leverage power and provide backbone & support for legislators standing up to Christie, it cannot be all organized union labor. Like it or not, Christie will swat that away. So I'd say it depends on librarians, parents, college professors, bus & train riders, homeowners, people who need parks, disabled people, students, athletes, librarians, musicians & artists, hospital administrators ...
The Wing Nuts are coming to South Jersey! The Lonegan Tea Party wack jobs will be picketing State Senator Steve Sweeney's Office in West Deptford on Tuesday May 18 at noon.
They are going to voice their opposition to the State Senator's constitutional right of "Advise and Consent" on Justice Wallace.
Lonegan and Christie do not like it when other people read the State Constitution.
The freedom to assemble goes both ways.
True Democrats and true Americans support the idea of "seperation of powers" .
The original Tea Party members were against a Monarchy. Now they support King Christie.
Lonegan and his wackos will be a better show than the circus!
We have 3 diaries - so far - dealing with today's announcements - this by Hopeful, one by Hetty Rosenstein, another by me. Makes sense to link them together. - Rosi Efthim
This statement, which is from Sweeney, Oliver, Buono, Cryan, Sarlo, and Greenwald, has a lot of digs, though it promises some cooperation if the Governor will meet them partway:
"We always welcome ideas to try to control government costs and property taxes, but we expect a reasonable, intelligent and in-depth discussion based on facts.
"Our success in working with the governor earlier this year on pension reforms shows how the best results come from bipartisan teamwork.
"But the fact is that this so-called tool kit, if enacted today, would do nothing to stop the property tax increases and fee hikes on senior citizens and the middle-class that Gov. Christie has proposed in his budget plan.
"Our focus right now is on saving senior citizens from Gov. Christie's plan to increase their prescription drug costs while slashing their property tax relief. Protecting senior citizens from these unfair and brutal cuts is our emphasis.
"We will examine the governor's plan, take what's in it and try to make it better, and we will do so with a thoughtful and thorough approach. Based on his flawed executive orders, Gov. Christie certainly knows first-hand the problems that occur when policy is rushed, so we are hopeful he is willing to work with us."
You'll note that they are insisting on their plan that Rosi discussed to be addressed first.
3 diaries here dealing with today's announcements - one by Hetty Rosenstein, one from Hopeful, and this from me. Makes sense to link them together. - Rosi Efthim
Tying a new millionaires tax - with a higher threshold - to restoration of property tax rebates and prescription drug benefits, both for seniors, Democratic leaders are daring the Governor to choose rich people over old people. It's also a challenge to Christie's pledge not to raise taxes in the coming year's budget. It's a cheeky move. And it's going to move fast: Sweeney and Oliver plan to have the legislation heard during Thursday committee hearings, and posted for floor votes May 20.
Said your Governor: "It's a cute idea, but their math doesn't work." Christie also accused the Dems of "pandering" to seniors.
At a press conference late this morning, Senate President Steve Sweeney, Assembly Speaker Sheila Oliver and Senate Majority Leader Barbara Buono announced a plan to save seniors from some of the harshest whammies against New Jersey's elders. The plan protects what they call "New Jersey's most vulnerable residents" by restoring a 1-year income tax surcharge on the 16,000 New Jerseyans with taxable incomes of at least $1 million.
That's a millionaire's tax - one the Dems say will raise $637M - but one that sets the bar higher than the $400,000 yearly income level of the previous surcharge. Echoing a standard GOP canard, Christie has complained that a tax on earners at $400K amounts to a tax on small businesses, as if all high earners are running Mom & Pop establishments. This shields small business owners, say the Democrats. Nevertheless, the idea of a surcharge is popular with most NJ residents.
It's enough to pay to maintain last year's level of senior rebates, and return the prescription drug funding Christie's plan eliminates. For seniors living on fixed incomes or struggling financially, Christie's plan is a disaster, raising the co-pay for brand-name prescription drugs from $7 to $15 and adding a $310 deductible annually.
An analysis prepared last month by the nonpartisan Office of Legislative Services reported that under the Christie plan, a retired couple living on a fixed income of $40,000 would see a $1,320 increase in taxes while a family making $1.2 million would receive a tax cut of $11,598. That's bananas, and the OLS figures don't even include the out-of-pocket for the higher prescription drug costs, which NJ Foundation for Aging estimates costing the average senior an extra $430/year. Buono:
Asking seniors and the disabled to pay thousands of dollars in higher property taxes and prescription costs while providing a huge windfall to the extremely wealthy is simply unconscionable. Today we renew our promise to seniors and the disabled that their quality of life is our priority.
Sweeney, on their more "compassionate plan":
From day one, the Governor's plan to protect the rich from the any of the pain being delivered by his budget has flown in the face of both common sense and common decency. This plan re-centers our priorities.
My first reaction when I heard about this was annoyance at raising that threshold on NJ's wealthiest 2.5 times to a literal million per year. But tied the way it's tied to prioritizing our elders, I think Christie's going to have a hard time swatting this away. It's like the grownups have arrived and a sensible adult hand has hit the reset button - or at least one of them - on a game gone nuts.
"What I told the governor personally is that 'I'm advising you and that I don't consent,' "...
"The courts have to maintain their independence, period," Sweeney said. "If I put this nominee up, I'm part of politicizing this court."
Christie's actions are said to be "within his rights" but it's quite clear he has violated the "unwritten constitution" of traditions and interpretations that governed for generations. Once such parts of the "fabric of societ" were a concern of conservatives but those days are long gone. To be a conservative today is to be a radical.
"Regardless of her qualifications, she's not going to get a hearing," said Senate Judiciary Committee Chairman Nicholas Scutari (D-Union), whose committee is responsible for vetting the governor's nominees.
Senator Lesniak offered these comments on the current standoff:
Lesniak says he, Sweeney and Scutari agree that the nomination won't be heard until the appointment comes up in two years, when he says they will judge that nominee on the merits. If the standoff isn't resolved by May 20, Chief Justice Rabner can fill the seat for the duration from the ranks of the Appellate court or retired Justices. For now though, the rhetoric on both sides continues to build.
"The Governor has fulfilled his constitutional duties by making a judicial nomination; the Senate's constitutional duty is to provide 'advise and consent' through a hearing for the nominee, followed by an up-or-down vote in the full Senate. That's all we ask. So, we would be surprised if the Senate President is willing to simply abandon the New Jersey Constitution and refuse to consider a qualified judicial nominee. That would truly be a historic and unfortunate precedent.
"Also, the Constitution clearly states that all justices of the Supreme Court are appointed to an initial seven-year term - not automatic lifetime tenure. The framers of our state Constitution did that for a reason, and we have to believe that the Senate President understands and respects that."
Does anyone find it ironic that after making the unprecedented decision of to not renominate a sitting Justice, that now all of a sudden they are going to worry about setting precedent?
