Shocking News: NJ Tax Receipts Down

The Star Ledger today reported that New Jersey tax receipts are down:

From January through September, New Jersey collected $20.34 billion in taxes — a loss of one of every seven dollars collected in the same period in 2008.

The decline in New Jersey mirrored the experience of state governments nationwide in 2009, according to the census bureau’s report. Collectively, the states absorbed a 13 percent drop in tax collections.

This news should not be filed in the "breaking news" category for most normal people in the State of New Jersey. One of the more interesting parts of the article was a photo of Jon Corzine with the following caption:

New Jersey is on pace to end the year with the first drop in state tax collections since 2002. Gov. Jon Corzine, seen here in a November photo, has tried to address revenue shortfalls by using federal stimulus money, deferring pension obligations and raiding surplus accounts and dedicated funds to offset the losses.

It is in this caption that the Star Ledger really captures the problem both with Jon Corzine and Trenton's approach to serious issues. Notice that the "solution" per Democrats in our state was:

1. Use Stimulus money (thereby not stimulating)
2. Deferring pension obligations
3. Raiding any department left that is fiscally responsible by taking their surplus money

Notice that NOWHERE does it mention two simple words. Cut. Spending.

Five years ago, our state ran just fine with a 20 billion dollar budget. We could have paid for the entire budget by September even in this terrible economic situation if the budget was 20 billion dollars. That is the real issue impacting New Jersey citizens. And until our politicians GET IT, we will continue to have issues.

Read the Star Ledger article here.

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Corzine Lame Duck Appointments - A Slap at NJ Voters

John Corzine has decided to poison the well on his way out of office(WHYY):

New Jersey Governor Jon Corzine is defending the appointments he's making in the final weeks of his administration. Corzine lost to Republican Chris Christie in his bid for a second term.

Nearly 200 people, many of them well known Democrats, have been nominated by Corzine for a variety of government positions including judgeships and jobs on state boards and authorities.

There is no way a New Jersey voter can view Corzine's actions in a positive light. He lost the election by a significant margin. Worse yet, his percentage of the vote was 9 percentage points lower than his 2005 total and the worst performance by an incumbent in modern history. The citizens of our state soundly rejected his policies and him personally. So what does he do?

He chooses to stack every open position he can find with cronies and Democratic party hacks before the new governor takes office. Next time you wonder why New Jersey voters are apathetic and don't show up to vote - think of this moment. I can only suggest that if the Democrats of this state want to work with the new governor, they should first take a drink from their own poison well instead. The citizens of our state would have no objection.

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NJ Democrat Pols: Borrow more before Christie gets here!

Didn't we just listen to the Governor of New Jersey progress through a re-election campaign and claim that he was the fiscally responsible one after many years of irresponsible government? Of course, his rap was much less believable when he last responded to a Schools Construction Corporation (the NJ government agency that manages public school construction money) corruption scandal by borrowing $4.1 billion for the entity. New Jersey Democrats have long been hypocritical on borrowing-decrying Republican Christie Whitman while engorging themselves in debt once they moved into power. And now this:

Dec. 8 (Bloomberg) -- New Jersey, the third-most indebted U.S. state, will sell more than $200 million in bonds today to finance voter-approved capital projects a week after Governor- elect Christopher Christie said he opposed borrowing more money.

The state will issue $209.1 million of bonds, including $205 million of tax-exempt securities, the largest such competitively bid offering in the market today, according to Bloomberg data. Christie, a Republican who defeated Democratic incumbent Jon Corzine last month, said he opposed new bond sales after the state last week detailed $2.7 billion in borrowing it plans for the remainder of the fiscal year, which ends in June.

It appears that the last acts of the Corzine administration will be apply the maximum amount of long term financial damage to the citizens of New Jersey before they leave office.

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Democrats caught funding Daggett!!!

With Corzine's support stuck at no better than 42%, the candidacy of Chris Daggett has always been a bit too convenient. While we have not suggested that Jon Corzine has directly colluded with Daggett, we didn't rule out a connection between the two campaigns. Now the news comes out that Corzine's campaign paid for Daggett outreach to voters (from Instapundit and PolitickerNJ.com):

The Democratic State Committee now admits paying for a robocall to Somerset County voters that slams Republican Chris Christie and promotes independent gubernatorial candidate Christopher Daggett.

A Democratic spokeswoman says the party’s chairman, Joe Cryan, was not aware of the robocalls when he denied that the state committee had anything to do with them yesterday afternoon.

Cryan, who told PolitickerNJ.com yesterday afternoon that the Democratic State Committee had “absolutely” nothing to do with the call, could not immediately be reached for comment.

The call angered Republicans and further fueled conspiracy theories that Daggett is in cahoots with the Corzine camp. A disclaimer at the end says it was paid for by Victory ’09, “a project of the NJDSC” (Democratic State Committee), and gave the committee’s Trenton address.

Jon Corzine will say and do anything to get elected. And Team Corzine now admits to perverting this New Jersey election so that their inferior candidate who cannot win in a straight up fight can increase his chance of winning. And combined with the questions about absentee ballots, there is a pattern that does not bode well for the legitimate voters in this state.

Read the entire article here.

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NJ Saved or Created Jobs: 24,000 (at $728,197.75)

New Jersey was expecting to receive $17,476,745,987 from the $787 billion stimulus package passed by congress earlier this year. This morning, just in time for the election, it was reported by NorthJersey.com that New Jersey saved or created 24,000 jobs. We can be sure that Corzine will be trumpeting this number on the campaign trail this weekend. By my calculation, that means that the Federal government spent $728,197.75 for each job created or saved.

Apparently, if you are Jon Corzine, that is a good deal. It is certainly more than he paid Karla Katz or her brother for their silence on his ethical issues. I wonder if he counted his own job in the figures?

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NY-23 Shocker: Scozzafava out - Now it's Daggett's Turn

Politico has reported that Republican candidate Dede Scozzafava has suspended her campaign for the NY-23 House seat. From this article on the announcement:

Republican Dede Scozzafava has suspended her bid in next Tuesday’s NY 23 special election, a huge development that dramatically shakes up the race. She did not endorse either of her two opponents -- Conservative party candidate Doug Hoffman or Democrat Bill Owens.

The decision to suspend her campaign is a boost for Hoffman, who already had the support of 50 percent of GOP voters, according to a newly-released Siena poll, and is now well-positioned to win over the 25 percent of Republicans who had been sticking with Scozzafava.

The NY-23 race has been interesting due to the fact that the Republican party put up a candidate they thought could win who was well to the left of Barack Obama. And in reaction, local conservatives put up backed Doug Hoffman who has come from behind and as of last week was either in a dead heat or ahead of the Democratic party candidate Bill Owens. The net is that Scozzafava decided she could not win and dropped out of the race.

Fast forward to New Jersey. As we have said all along Chris Daggett cannot win despite his ardent campaign staff. He will likely net a total of something less than 10 percent of the vote, serving only to be a spoiler. And frankly, if his candidacy only serves to help Corzine eek out a win(and Corzine then subsequently does what he promised which is to continue to destroy the business climate in the state and raise taxes), not only will he be completely unelectable for statewide office, he might have a hard time getting elected dog catcher. Toxic would not be a strong enough word.

Daggett has run a strong campaign given his resources. If he really wants to make a difference in this state, he should drop out now and live to fight another day. Unless of course his real reason to be in this race is to siphon votes from one or the other candidate. And if that is the case, toxic would be the correct word.

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NJ Democrats Prepare for Election Theft!

One would think that here in New Jersey Democrats would not have to engineer election theft as was done in Minnesota and Washington State. With a clear advantage in voter registration and long standing tactics and techniques for encouraging voter fraud, New Jersey Democrats typically don't sweat elections that much. From the ongoing scandals in Atlantic City and Essex County, to the blatant campaign 'votes for cigarettes' stories we hear in every election, Democrat vote fraud is assumed part of the fabric of New Jersey election politics. But apparently, New Jersey Democrats are worried that with Jon Corzine's horrible reputation, old tricks will not be enough this year. From the Corner on National Review:

This year, New Jersey’s registered voters can request a mail-in ballot for any reason. Before 2005, voters needed to provide a reason for why they needed an absentee ballot. The state received about 150,000 absentee ballot applications this year.

On about 2,300 of those applications so far, the signature on the request form did not match the signature on the voter’s registration forms with the state.

In a development that is depressingly predictable, the New Jersey Democratic Party is asking the state to provide provisional ballots for all these voters. Those ballots, could, presumably, be used to overcome any narrow lead by Republican Chris Christie over Democrat Jon Corzine on Election Day.

I find it amazing how forward thinking these folks have gotten and how well it has paid off for Democrats around the country in the past few years. And now it has come home to New Jersey. I suppose that one piece of good news here is that the Democrats internals must be showing Corzine in serious trouble to have to resort to these formerly unnecessary tactics.

Read the entire article here.

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Corzine and Obama Billboard - Keep what going?

As I am driving to Trenton today to catch and Amtrak to DC, I notice a billboard with Barack Obama in the foreground and Jon Corzine in the background. In large bold letters the billboard reads "Keep it going". That made me start to think...what is Jon Corzine trying to tell me? To understand the billboard, you must understand how Corzine or Obama define IT.

Let's take a shot from Obama's perspective:

Keep IT Going!

- does he mean New Jersey politicians voting in lockstep with you regardless of the impact on the state?
- could he mean that he wants more Acorn volunteers working in Trenton, Newark and Camden hustling "voters"?
- maybe he means NJ should keep adding more and more citizens to the roles of public assistance as jobs are driven from the state
- how about, keep the unions in charge of the state

Or from Corzine's perspective:

Keep IT Going!

- keep New Jersey as the state with the worst business climate
- keep New Jersey as the state with the highest in the nation property taxes
- Democrats in New Jersey could keep filling up the federal corruption dockets and going to jail
- Citizens in New Jersey can keep electing politicians who do not listen to their concerns and see them as a unending piggy bank for special interests
- Jon Corzine could keep paying off cronies when investigators dig into his ethics violations
- keep leading the charge to drive productive business out of the state
- pushing more and more of our citizens to states with a more family friendly tax policy
- laughing with his Democrat buddies knowing that no matter how many Democrats are arrested and jailed for corruption, they will be more to take their place!

I guess I get it after all.

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PPP: 72% think Daggett cannot win

Despite the response from folks at the campaign when we wrote that Daggett cannot win, a poll released today from Public Policy Polling suggest that New Jersey voters see it the same way:



One point I would like to make. If the Corzine or Christie campaigns were anywhere near as attentive as the Daggett campaign, I don't think that this race would be perceived as negatively by the public. We have already commented on the "let them eat cake" attitude of Christie's (formerly McCain) campaign staff. And it has been clear all along that Corzine wasn't even going to run a real campaign. His scorched earth strategy has been about as enlightening as the cardboard cutout campaign run by Frank Lautenberg (hide out for 6 months showing up in public just to convince people he wasn't dead). At least the Daggett folks are out there trying to do the best for their candidate.

Read the poll results here.

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While Obama campaigns for Corzine: Afghanistan gets worse.

Many people are starting to question whether Barack Obama is delaying his decision on his Afghanistan strategy until after next weeks elections in New Jersey and Virginia. Whether or not you believe it is true, the lack of a decision is severely impacting the effort in Afghanistan as 8 more die today (from AP):

The deaths bring to 55 the total number of American troops killed in October in Afghanistan. The previous high occurred in August, when 51 U.S. soldiers died and the troubled nation held the first round of its presidential elections amid a wave of Taliban insurgent attacks.

President Obama is due in New Jersey on Saturday to campaign for Corzine having been here just last week. I would suggest that the President would be better served if he sat down and stayed in the Oval office and made a decision on this topic rather than run around campaigning. One of his advisers needs to tell him the role of the executive requires him to actually make decisions. Senators debate and discuss. Presidents decide.

If we no longer are committed to the mission, so be it. Remove the soldiers now. If not, so be it. Announce your strategy and start executing it now. The vacuum is helping no one. I am starting to worry that Hillary's famous campaign advertisement about the phone call in the middle of the night was off the mark. It wasn't a question of who was going to answer the phone. It was whether the President would answer it at all.

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Daggett can't win. So why is he in this?

I continue to struggle to understand the candidacy of Chris Daggett. He is an independent candidate for governor and he is polling between 5-17 percent depending on whose poll you are looking at. Of course, I will likely get a comment on this about how he is charging and is going to win the race (and the email of the commenter will be a link to the Daggett campaign). But we are now late in the race and he has no chance of winning. So why does he continue?

Does he have aspirations to run for another office sometime in the future? Not sure. This isn't like the national stage where a big run here will equite to a book and speaking tour. And increased awareness. But it doesn't make sense here. The minute he loses in November he is once again a nobody except among party faithful - oops, he represents no political party so that logic is out. Run for something else? Democrats aren't going to stick to him long and Republicans will brand him toxic for splitting the anti-Corzine vote. No future in that either.

So what is left? The nagging feeling I keep getting is that his candidacy only serves to help one person and one person only. Jon Corzine. To that end, I tried to review Daggett's election filings. They can be accessed here. The only obvious trend I was able to take from an analysis of his donors was that they significantly trend toward one industry - financial services. I checked Christie's donors to see if I could get the same trend however I didn't see the same thing there. Another thing concerned me about Daggett's donors. They haven't increased as his awareness has increased. As a matter of fact, his big ticket donors seem to have dried up. Contribution limits or something else?

Do I believe that Corzine has set up Daggett as a stalking horse in this race? I doubt it. But would I accept the notion that Corzine's people arranged for a third party candidate to receive enough funding to damage his opponent? You bet.

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More NJ Democrat Corruption: Funded by Jon Corzine

Another Democrat NJ politician is going to jail for corruption. From the Philadelphia Enquirer:

A federal jury has found former northern New Jersey political boss Joseph Ferriero guilty of fraud conspiracy.

The panel returned its verdict Thursday, the third day of deliberations after a 2 1/2-week trial.

Ferriero, the former head of the Bergen County Democratic Organization, was convicted on one count of conspiracy to defraud and two counts of mail fraud.

You sometimes wonder how our 'political bosses' in New Jersey maintain their hold on power? From this article at the Corner on National Review:

Guess how much money Jon Corzine and his family gave to Ferriero over the years?

$441,600.

Republican gubernatorial candidate Chris Christie held a conference call moments ago. Highlights:

I experienced a lot of these days and led the office when this case was indicted
. . . Joe Ferriero abused a position of trust and the position of trust of his co-conspirator in order to line his own pockets. His leadership of the Bergen County Democratic Organization was a disgrace . . . This should be a day of great joy in Bergen County.

So New Jersey, do you still believe that Christie is the one who throws his weight around? Corzine is concerned when Christie lends a friend money that gets paid back. Yet NJ voters don't care that everyone Corine pays off gets a cool half mil?

Sickening. You cannot fix corruption when you are funding it. Period.

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Shocking news: NY Times endorses Corzine

(Tongue placed firmly in cheek) In a breaking news development today, the New York Times has endorsed Jon Corzine. The endorsement is unique for its sophmoric cheap shots on Chris Christie and Christopher Daggett while attributing "pragmatic" ideas to Corzine. And for his small ideas, Corzine apparently deserves another four years.

Here is my issue with this endorsement and Corzine in general. Our state is sufferring from rot deep within the core. The political system is a patronage mill monolith that will not be changed by a get-along-to-go-along politician like Corzine. We already have seen the lengths he will go to coddle unions and spread money around to keep people quiet about the ethical lapses he perpetuated to get it done. In all, he is a small man, with small ideas and absolutely zero leadership.

As for issues, the state had financial problems during good times. And when the economy went south, the state has taken a hit FAR greater than it should have. New Jersey has been bleeding jobs for 10 years due to its practice of driving business out of the state to friendlier business climates. And what are the top issues being talked about by Jon Corzine? Abortion, Christie's weight, mamograms and George Bush. And the voters of the state let him get away with it.

I guess the bright spot is that at least in this election, the Democrats actually let their candidate campaign unlike the last senatorial campaign when Frank Lautenberg was not allowed to be seen or engaged in public.

The joke is on the average New Jersey voter because they keep letting Corzine and the Democrats get away with providing no plan, no leadership and mudslinging. I was thinking the other day that deep down given the current trajectory of the state, I know that my family has to leave New Jersey. It really isn't a question of whether but when. No responsible person would sit idly by while the Democrats continue their quest to turn New Jersey into Michigan.

This state needs something different. I don't know that Christie is perfect but he has shown leadership as Federal attorney taking on the rot. I KNOW that Corzine will not even try. He isn't a leader and never will be. The New York times is right:

Mr. Corzine is hardly the perfect politician. Most New Jersey voters find him astonishingly inarticulate, and his credentials as a former co-chairman of Goldman Sachs do not seem as impressive as they did before the financial meltdown in 2008. He has poured lots of his personal wealth into this race, far too much of it for biting — and sometimes juvenile — attacks on Mr. Christie.

Only in New Jersey would this represent a incumbent candidate's shining achievements worthy of an endorsement by the "paper of record".

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Star Ledged endorses candidate with 6% support.

In an amazing statement, the Newark Star Ledger endorsed Chris Daggett for Governor. While they are well aware that he only has about 6 percent support statewide, they still feel the need to make a statement. Their logic?

The newspaper’s decision is less a rejection of Gov. Jon Corzine and Republican Chris Christie than a repudiation of the parties they represent, both of which have forfeited any claim to the trust and confidence of the people of New Jersey. They share responsibility for the state’s current plight.

Interesting for the editorial board to lay claim to a moral stance regarding the state's political parties. But while they are correct that both parties are far too beholden to special interests, I wonder what they feel about their own support of the existing political system. Where was the Star Ledger when the mayor of Newark with no income aside from his government job acquired a yacht, a Rolls Royce and money to invest in properties around the city. Where was their investigative journalism?

Why do we not see the media in this state actually push the politicians to investigate anyone? For far too long, the media including the Star Ledger have acted as an arm of the corrupt New Jersey Democratic party.

What sounds more likely? The Star Ledgers editorial board really believes what they say about Daggett or they would like to split Chris Christie aka "the most disappointing candidate"'s vote thereby assuring the re-election of Jon Corzine. Sorry if I am going with the latter. It reminds me of The Philadelphia Enquirer endorsing Frank Lautenberg's opponent after allowing the senator to hide for 6 months.

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US News: Apologize and explain yourself Jon!

In an interesting article in the US News and World Reports, blogger Peter Roff sounded a refrain often heard here at NJTaxRevolution regarding Jon Corzine:

In a new attack ad the Corzine campaign began airing this week, Christie is shown in slow-motion, emerging from a sport utility vehicle as the announcer talks about how the former U.S. attorney once "threw his weight around" to avoid some traffic tickets.

Whether or not there is any truth to the underlying charge—and Corzine has his own problems where traffic law infractions, speeding, not wearing a seat belt and, for that matter, personal ethics are concerned—the ad clearly pokes at Christie's waistline as though that somehow disqualifies him to be New Jersey's next governor.

In Jon Corzine's New Jersey, the property taxes are the highest in the nation. The state is nearly bankrupt. Close to 50 elected officials of both parties we recently arrested as the result of a corruption probe. And Corzine himself has yet to explain how the actions he took while a Wall Street high flier as co-CEO of Goldman Sachs failed to contribute to the recent financial crisis.

Rather than address all or any of those things, or present a reasonable case to the voters as to why he deserves another four years in office, Corzine is asking them to choose between the fat guy and the thin(ner) guy.

Indeed. Read the entire post here.

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Corzine whopper: Will only consider taxes as a last resort. Huh?

In last night's Governatorial debate, Jon Corzine said this (from Bloomberg):

Corzine said raising taxes would be a “last resort” to balance the budget, and proposed encouraging towns and cities to merge and share services to control the state’s highest-in-the- nation property taxes.

Who is Jon Corzine kidding? Mr "I didn't take this job to be scrooge" has always consider new taxes as a FIRST resort. And the fact that Corzine thinks the public will believe this blatant lie just shows how little respect he has for the voters in New Jersey. Jon Corzine feels entitled to this job. He is a Democrat in New Jersey so it doesn't matter what he says or does, he should be re-elected.

It is about time he learns different.

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Corzine's Stature Problem - He's a Figment!

Jon Corzine has a problem. He is an incumbent Governor on a state that is a wholly owned subsidiary of the Democrat party and he is losing badly. He can spin it any way he wants but it won't change facts. As a conservative who still lives here, I can sympathize with his problem. He now wants to focus on turnout. But given his polling, there is no guarantee that turnout will go his way. People do not like the man. And you have to wonder why.

Jon Corzine's big problem is that he is a figment. From thefreedictionary.com:

fig·ment (fgmnt)
n.
Something invented, made up, or fabricated: just a figment of the imagination.

Everything he has done in politics has been image and nothing more. The problem with image construction (IE figments) is that when you poke them, there is nothing there. Corzine's history with Goldman Sachs and his spreading his personal wealth around got him the Democratic nomination for Senator. Because he was the last man standing when McGreevey became a gay American and our former Governor, he got the nod. And then he had to do something.

The result has been horrific. Governor "I didn't take this job to be scrooge" shepherded us to a complete mess BEFORE the economic downturn. And now he has to campaign on his record. And he doesn't have one. A figment.

I recently spoke to an acquaintance who regularly debates me on political issues and is frankly a typical reflexive NJ Democrat whether or not he admits it (he claims to be independent) . A scan of his voting patterns would tell the truth. But this person owns a very successful local business. He also is very active in supporting various charitable activities as his kids grow into more day to day responsibility of the family business. And he is looking at property in South Carolina. I was shocked. His answer: "We are all tired. I have written too many checks to the State of NJ in the past month. And at some point, it isn't worth it".

And so goes a state on autopilot with a figment in charge. We need a leader. Any while I have no idea whether Chris Christie will be that leader as his people don't respond to blogs like us. But I DO KNOW that Jon Corzine isn't a leader. He is a figment.

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Corzine runs from NJ 101.5 Debate

Jon Corzine announced that he was not going to participate in a governatorial debate being held by NJ 101.5. NJ.Com reports:

The campaign for Gov. Jon Corzine said he will not participate in a gubernatorial debate on the radio station New Jersey 101.5 FM during the final legs of the campaign, according to the station's website.

"Jon Corzine has now become the first candidate for statewide office in almost 20 years to turn his back on our one million listeners by refusing to appear on New Jersey 101.5 to talk directly to New Jersey voters about the issues that are important to them," said Eric Scott, news director for 101.5 FM.

The Governor decided instead to agree to debate on public broadcasting radio. Jon Corzine reminds me of Sir Robin from Monty Python's Holy Grail. He pretends to be a tough competent governor and then "bravely runs away" every chance he gets from making tough decisions, fixing the state and now even talking about his record.

While Senator Entitlement Frank Lautenberg was able to hide from the voters and not bother to show up for anything, I suspect Corzine will have a much harder time. Apparently his strategy is to hide until late in the camapaign and then send his vote stealers out to give out cigatettes to buy votes in Trenton, Camden and Newark. OR better yet, offer another $2,000,000 to hire "homeless and drug addicts" as part of his senatorial get out the vote efforts. Remmeber Governor? We do.

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It's official: NJ citizens Income Plummeting

In case you are wondering why Jon Corzine keep running away from his record as Governor of NJ...


From PolitickerNJ:

CONTRARY TO GOVERNOR CORZINE'S CLAIMS, NEW JERSEY IS NOT BETTER POSITIONED THAN OTHER STATES TO WEATHER TOUGH ECONOMIC TIMES
New Jersey's median household income declined by $7,214 from 2005-2006 to 2007-2008, the nation's largest dollar decrease, according to statistics released today by the United States Census Bureau.

"These Census statistics clearly refute the claim that New Jersey was better stationed to weather this economic storm that Governor Corzine and his allies in the Legislature kept telling residents this summer while embracing a budget that slashed property tax relief, raised taxes and simply ignored the state's dire financial situation," Assemblyman John DiMaio, R-Warren and Hunterdon, said.

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Corzine's silence on why he should be re-elected

We are back after some much needed rest, relaxation and contemplation over politics and the state of our state and the country. I tried successfully to avoid news of New Jersey politics as I was out of state. It was much harder to avoid the next saga of Obamamania as the national news was pre-occupied wiith Czars and children's educational propaganda. I also had a couple of long drives under my belt where I was not allowed to listen to news so I got some real thought time in.

One reflection I had was about our Governor. This has been an extremely strange election season. Why? Because Jon Corzine has not really given anyone a reason to vote for his re-election. It is almost as if he knows that his record is so poor that it wouldn't be worth trying to convince anyone otherwise. And his media people seem to agree with him.

So he is left trying to trash Christie. And maybe in a normal year here in NJ, that would suffice. The same state that allowed Frank Lautenberg to hide out for the entire last camapaign does not seem to be in the same mood this time. Two thousand people attended the tea party we recently passed on the word for those in North Jersey. This is a different year.

Sometimes silence is golden. Sometimes it is chrystal clear.

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Christie's 46k loan to a friend? And Corzine's 470k loan to a major union negotiator.

According to the New York Times, Chris Christie made a loan and failed to declare it on his campaign forms. From the Times:

A contrite Christopher J. Christie, the Republican former prosecutor running for governor on a platform of corruption busting and ethical reform, apologized Tuesday for failing to report a $46,000 loan to a top aide on his tax returns and financial-disclosure forms.

Christopher J. Christie, the Republican candidate for governor, on Tuesday.
“When I make mistakes, I’m going to admit them,” he said, adding that he had already amended some of those filings and would finish the rest by Friday. “It was certainly nothing that I was trying to conceal or hide.”

Ok. I suppose that he is guilty of some administrative violation and maybe poor judgement in helping a friend. But let's balance that against Jon Corzine's 470,000 loan to Carla Katz his alleged girlfriend and a major union representative from the states top union. Remember this?

Senator Jon S. Corzine provided a $470,000 mortgage to the president of a union that represents thousands of New Jersey state employees in late 2002, then forgave the debt two years later.

Senator Jon S. Corzine with Carla Katz at a ball in the Pierre Hotel in 2002 .
The union president, Carla Katz, was Mr. Corzine's girlfriend at the time. The senator said on Wednesday that an investment company he owns gave her the mortgage, then canceled it in December 2004, several months after they had stopped dating.

So he made a loan and forgave it for ten times what Christie has allegedly done. And this loan and other communication is at the heart of ethics charges against Corzine. And Christie is still collecting on the loan to a friend. Seems like Corzine has picked chosen an outrageously stupid bone to pick.

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NJ bond outlook lowered to NEGATIVE

From Marketwatch this morning:

Moody's Investors Service lowered its outlook on the State of New Jersey, reflecting challenges to the state's financial operations and repeated use of nonrecurring revenue to plug budget gaps. The outlook was lowered to negative from stable. The outlook affects about $2.5 billion in outstanding general obligation bonds and $28.5 billion in annual appropriation debt. The revision comes as the state plans to sell $200 million in school-construction bonds in the coming week, rated A1 by Moody's. The state's GO rating is Aa3. Moody's also noted the state has one of the highest debt burdens and, like many states, has depleted its reserves. "It is anticipated that economic recovery in New Jersey will be at a slower pace than the nation as a whole," Moody's said in a release late Monday.

When a State continues to avoid addressing key fiscal issues and instead pursues a policy of tax and spend, this is what happens. The result will be increased interest on borrowing which will eventually create problems all its own. Remember when Corzine said he was cutting the budget and we documented here at njtaxrevolution that he was actually increasing borrowing by 3.9 billion for school construction? Well guess what, the cost of that just went up.

Congratulations Jon! You have one again demonstrated your fiscal prowess.

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NJ New Liquor Tax Starts Today - Buy in Delaware instead!

The Philadelphia Inquirer reports that another tax goes into effect today in New Jersey:

New Jersey's tax hike on wholesale wine and hard liquor goes into effect today, and those in the business say customers will most surely pay more than the fraction of a cent per drink that the extra 25 percent levy on spirits amounts to for distributors.

Gov. Corzine proposed the 25 percent increase and the Legislature approved it on wine and liquor - but not beer - as one of many measures to help balance the budget in a recession year. The extra tax is expected to raise about $22 million a year.

When you really think about it, purchasing liquor and wine are not exactly last minute impulse items and can be planned. Given that a significant portion of our state border other state, my suggestion is to go to PA, Delaware or NY to buy. I know that this suggestion is bad for business in New Jersey but until businesses in this state stop just accepting asinine policies from or dysfunctional state government.

Due to pricing policies in our surrounding state, Delaware is the place to go if you want to save money. And for those of you concerned about the legality of transporting liquor into our state, here are the rules from the Attorney General's office where they will make sure you go to jail for buying fireworks in NJ but not if you are a public official and accept bribes for your vote:


8 Are New Jersey consumers permitted to order alcohol from a catalog or via the internet and have it delivered to their homes?

New Jersey residents are not permitted to purchase beverage alcohol via telephone, mail order or the Internet from producers and retailers in other states. These sales, commonly known as “mail order sales,” are illegal because they bypass the State’s regulatory system for controlling liquor. Some of the problems caused by mail order sales involve the delivery of alcoholic beverages to underage persons, loss of tax revenue and the fact that entities, not licensed in New Jersey, are delivering and selling alcohol in this State. Most states in the country prohibit mail order sales for these and other reasons, and in some states, violations are treated as a criminal offense.

A person may personally purchase alcoholic beverages in another state and transport them into New Jersey only if (1) the alcoholic beverages are intended to be used solely for personal use and (2) the alcohol is personally transported in a vehicle into New Jersey. The amount of alcoholic beverages transported into New Jersey for personal use cannot exceed l/4 barrel or one case containing not in excess of 12 quarts of beer and one gallon of wine and two quarts of other alcoholic beverages within any consecutive period of 24 hours. If a person wishes to transport alcohol for personal use in excess of the above amounts, an application must be made to the Director, who if satisfied of the good faith of the applicant, and upon payment of a $50 fee, may issue a special permit permitting the transportation of alcohol into New Jersey in excess of the amounts listed above.

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Corzine won't tolerate corruption...except when he does.

The Washngton Post today had an article discussing this week's corruption arrests of mostly Democrat politicians and reached into Corzine's cabinet. From the article:

Corzine has not been implicated in the investigation, but the scandal did reach his Cabinet; Joseph Doria, commissioner of the Department of Community Affairs, resigned after FBI agents raided his home and office Thursday. Doria has not been charged.

Corzine was close to Hoboken Mayor Peter Cammarano III, 32, one of the three mayors arrested. The governor lives in Hoboken and attended Cammarano's inauguration ceremony on July 1. Cammarano, a former Hoboken council member, is accused of taking $25,000 in bribes from an FBI informant posing as a building developer who needed expedited zoning approvals and permits.

All of this has been business as usual with politics in New Jersey. But the real howler is this Corzine comment:

Corzine said he was "sickened" by the arrests and called on all those public officials to follow Doria's lead and resign, even though none has been convicted. "I will not tolerate even the hint of corruption," Corzine said.

Ah, come on Governor...you have tolerated massive corruption in your ranks since you entered into politics. Your Senate colleague from New Jersey was the center of a major corruption investigation that precipitated Lautenberg's return. Your girlfriend was considered so honest that the union she worked for while dating you (only a major public employee union with a direct conflict of interest for you) dumped her after you negoiated significant contract. And how about those emails you won't share Governor? And why did your opponent the Federal attorner convict 128 of your Democrat friends for corruption versus 0 for your state Attorney General.

I know Governor Corzine. You don't tolerate corruption. Except when you do. Which is always.

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Christie. Corzine and Democrat Corruption

Reviewing the new Corzine add that shows Chris Christie leaving a congressional committee convened to attack him for alleged no bid contracts. The humorus past of this add is that it almost seems to have been prepared and filmed BEFORE Christie was "invited" to the House committee hearings. Does it not bother anyone that this heharing was convened to assist Corzine in attacking Christie.

Let's review:

1. The House has no interest in investigating Charlie Rangel accused of several tax violations and abusing housing rules intended for poor families.
2. The House has no interest in investigatiing Jack Murtha's bribe steering to his son, trashing and pre-judging our troops in Iraq and continual person of interest in a major corruption scandal.
3. The House has no interest in investigating Nancy Pelosi's accusation that the CIA lied to congress desppite evidence that it is Pelosi who lied.

But they do have time to bring in a New Jersey Federal Prosecutor who is running for Governor and also put away 128 of their friends. Curious.

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Corzine's Palin Problem - and each NJ Citizen's $60,656 bill

A spokesman for Jon Corzine was quoted in the Associated Press attempting to use the typical New Jersey bogeyman argument against Christie by invoking Sarah Palin:

For their part, Democrats in both New Jersey and Virginia were eager to link their rival GOP contenders to Palin.

"Her positions are certainly consistent with where Christie's been," Corzine spokesman Sean Darcy said. "They would both deny a woman the right to choose and they oppose new gun control legislation. And like Palin, Christie's staked out Conservative right-wing positions on rejecting the federal stimulus money, which would create thousands of jobs."

The first thing about this quote is that it is so trite that it boggles the mind that any intelligent human being could believe it. However, that clearly doesn't represent a lot of people in New Jersey because they routinely fall for this drivel. Let's get something straight. Two of three topics referred to in this quote (gun control and abortion) are federal issues. The governor of this state really has little say in the matter and therefore their position amounts to mere window dressing for partisans.

As for "rejecting federal stimulus" money, I think that a large number of New Jersey residents would like to hear in detail what stimulus money is coming to our state. Along with that, we would love to hear what the corresponding debt load assigned to our residents would be especially since the citizens of this state receive roughly 61 cents for every dollar we send to Washington (from the Tax Foundation). So, following that reasoning, the Congressional Budget Office estimates that the average citizen now owes $37,000 dollars because of the stimulus that didn't stimulate. Given New Jersey's productivity in government contribution, that equals a debt load of $60,656. Sure, let's talk about that Mr Corzine.

But all of this is really silly. Talk of abortion and gun control is just changing the subject and may be fine during the good times. But these aren't good times. And frankly, we have plenty to talk about. Namely, Jon Corzine's record. He can trash Christie all he wants but he now has a real record and interestingly enough, that is the last thing he wants to run on.

He doesn't want to run on his ethically challenged relationships while negotiating multi-million dollars contracts with unions. He lies to the people about saving money this year in the budget which is far more than the last budget Gov Codey submitted. He doesn't want to run on the massive debt he has added to our state and its choking debt service. And he doesn't even want you to see him in person because he only looks and sounds halfway decent after an ad agency touches up his photo, voice and adds music. This man inspires no one. He has not led this state and has been and utter and complete failure. His claim to fame of being a successful businessman has been thoroughly debunked by his complete lack of business sense. That is the record we should be discussing.

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Corzine gets EPA for premission to turn NJ in California

From Nj.com:

The Environmental Protection Agency today gave the go-ahead for 14 states, including New Jersey, to adopt stricter auto emission standards to curb green house gases.

Our Governor wants to continue to make his mark in destroying the state New Jersey. You probably remember his insistence on government funded stem cell research after taxpayers rejected his proposal. His new agenda is to make New Jersey just like California:

Gov. Jon Corzine in his tenure has pushed several environmental initiatives, including passing the Global Warming Response Act to reduce greenhouse gas emissions to 1990 levels by 2020, and setting the goal of having New Jersey produce 1,000 megawatts of power by wind by 2013 and 3,000 megawatts by 2020.

I wish I was a rich guy like Jon Corzine. As politicians go, he is completely dull but in this state he doesn't have to do anything but buy commercials that make him look if not statesmanlike, marginal. The last time he excited an NJ resident she was under his payroll clearly in opposition to state ethics laws. But someone needs to make this guy stop. I can't take any more Corzine prescriptions. They always cost me money and do nothing for the state. Corzine wants NJ to be just like California on this issue. And we now know how that turns out.

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New NJ Budget Tax Increases

As predicted here, Corzine's budget that passed this week including a partial restoration of the property tax rebate program due to increase tax amnesty collections of 500 million dollars. Rebates have continued for Seniors and are restored for those making up to 75,000 dollars per year(at a 2/3 rate). It does eliminate the rebate for renters which I never understood anyway.

From the Burlington County Times:

The recession-year budget raises $1.3 billion in new taxes on liquor, cigarettes and the wealthy. It extends a 4 percent surcharge on the corporate business tax that was to expire, and realizes $500 million by suspending rebates to renters and higher income homeowners. Republicans say all that amounts to $2.8 billion in tax increases.

The article goes on to note the increased tax on residents earning over 500,000 dollars per year. In addition, to those making over 250,000 per year, next year you cannot deduct your property taxes. For those under 250,000 per year, your property tax deduction is now capped at 5,000. Check out your tax bill, I bet many of you out there are about to get a tax increase and you don't even know it.

What is missing from this budget is cuts. Real cuts. And that is why Corzine is still doesn't get it. The only people who will get it from this budget is the citizens of New Jersey. And they are going to get it in ways they never imagined.

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Christmas in June for Corzine - prepare for the rebate scam

I was reading the New York Post editorial today referring to a larger than expected revenue collection from the NJ Tax Amnesty program. I read that New Jersey politicians were calling it Christmas in June. From the Daily Record:

It's Christmas in June, but it also upsets the apple cart," said Senate President Richard Codey, D-Essex.

The real question is "When did Corzine and cronies know about this windfall?". Was it before they submitted the budget and planned to REVIVE the property tax rebate just in time for Corzine's re-election in the fall?

If that is the case, I actually hope New Jersey voters fall for it. Because that would cement the utter and complete bankruptcy in this state and Corzine's responsibility for it. The rebate program has long been a scam to avoid fixing the state's financial programs and Corzine appeared for the first time to show some courage. But he didn't really. It was all a sham because he knew he would revive it at election time. And he knows what we all know. NJ voters will go along because apparently none of them take the time to read or understand what is going or act even if they do.

Status quo will continue here. Until we become Michigan. Most of us will be forced to leave by then.

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Responsibility: Obama and Corzine

President Obama makes a habit of blaming everyone in the past(Bush, Clinton, Reagan) every time he wants to ram through some massive spending plan. For example, Bush was at fault because he ran a deficit. However, Obama's projected deficit over the next 10 years based on the budget he passed, the stimulus he rammed through and the spending he is proposing will be more than the deficits of EVERY President before him added together. Now the President is losing sleep over it:

President Barack Obama said on Tuesday that worrying about US finances "keeps me awake at night" but defended increasing government spending to prevent the recession from worsening.

Fast forward to Jon Corzine. He refuses to take any responsibility for the explosion in new taxes and spending on his watch, the increase in the state employee roles while private sector jobs collaps and his crowning glory, New Jersey's highest tax burden of any state. Click here to see the numbers.

Corzine says he is dealing with what has occurred. Noone told him to spend like he has the past several years. Noone told him to borrow long term to pay today's operational shortfalls. The voters told him they didn't want state funded Stem Cell research but he tried to do it anyway. And is was Corzine that said the he "didn't take this job to be scrooge".

It's time for Jon Corzine to go. And if the next guy is scrooge, so be it. This state needs a penny pincher because we haven't had one in some time.





/a>

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GOP: Governor Deficit's (aka Jon Corzine) Budget

PolitickerNJ.com ran an article based on the GOP criticism of Jon Corzine's budget scheduled to be debated this week. The article listed Corzine's ill conceived "time bomb", or bad decisions for today that we will pay for horribly tomorrow:

The Corzine Pension Deficit -- Governor Corzine's budgets have underfunded the pensions off teachers, police officers, and other government employees. The total during his administration, including for fiscal 2010: More than $7.5 billion. This includes $6.5 billion in unpaid state contributions, and incredibly irresponsible legislation this year that allows municipalities to defer more than $1 billion in payments to the funds.

The Corzine Federal Aid Deficit – Governor Corzine has relied on $2.2 billion in one-time federal stimulus aid to create the illusion he is cutting that much in spending. He didn't cut this spending. He merely used federal aid to pay state bills. Next year, that federal money will not be available. The governor hasn't provided an answer on how he will fill this $2.2 billion addition to next year's deficit.

The Corzine 'Temporary' Tax Deficit – The governor is relying on more than $1 billion in tax increases this year that he is labeling "temporary." He is raising the income tax and eliminating the deductibility of property taxes for many middle class residents. Again, the governor hasn't told legislators what he plans, if anything, to eliminate this $1 billion hole next year.

The Corzine Property Tax Rebate Deficit -- More than 1.7 million New Jersey homeowners who got rebates in the past will not get them. The governor says the cancellation of rebates is temporary. He doesn't say where he will find the $1 billion needed to restore them.

The Corzine Unemployment Fund Deficit – Governor Corzine will borrow $1.6 billion from the federal government because of past raids on the unemployment benefit fund. He has no announced plan for how he will pay this loan back.

The Corzine Debt Service Deficit – The governor will skip $450 million of payments on bonds next year. He hasn't said one word on how much extra this will cost taxpayers over the long haul, or where he intends to find the money to pay for the borrowing in the future.

The Corzine Biden Buyoff Deficit – The governor has promised a 7 percent pay increase to state workers, half that will come 12 months from now and the other half in 18 months. This will cost the state $350 million. Again, the Governor has committed to a plan that will cost taxpayers for decades without finding a way to pay for the expense.

The sad thing about the Governor's budget is that while he is getting creative in kicking the can down the road, he once again does not make a single difficult decision. He has not cut people, he has not cut patronage, he has not cut back over generous services that the state can no longer afford and he has not decreased any part of the budget in a meaningful way. This is the same cowardice he has shown during every budget cycle.

President Obama keep harping on the failure of the financial industry which has hurt every segment of our economy. Jon Corzine was one of the people who became rich during that time and we now see that his enrichment was not based on competence. I wonder when we will hear President Obama criticize Corzine and his destructive greed and incompetence?

Crickets chirping....

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Primary Election Day! Get out and Vote!

Today is Primary Day for the Gubernatorial elections in New Jersey. This election cycle is beginning the most important election for Governor in the state for 20 years. Don't sit idly by and complain.

Get out and VOTE!!!!

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Lonegan goes back to purely negative campaigning...

While driving back from an aborted trip to New York this morning due to train issues, I heard a new Lonegan ad attacking Chris Christie and accusing him of assorted violations of something or other. The problem with this ad is that it is just like the sea of other negative ads Lonegan unleashed. This one got a job, that one got a job...blah blah blah.

This negative ad is exactly what has been wrong with Republicans in the state for too long. Instead of competing with ideas, Lonegan is throwing mud. Does he not know that this didn't against Menendez, or Corzine or anyone else lately. To become Governor, each of these candidates needs to describe why and how they will be different than Corzine. However, Lonegan's attack ads just sound like more losing Republican strategy from the same losing Republican NJ strategists.

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State deficit - Corzine says everyone is doing it!

Jon Corzine made a comment meant to suggest that New Jerseys fiscal woes a the same saying "almost every state is in the same situation". Do the facts back him up(from CBPP)?




So, while many states have deficits, they all do not. And while many states are revising their numbers (these were prior to most states evaluating their revenue collection for 2008), it is not all states. As a matter of fact, 29 states have budget deficits. 21 do not. And 7 states have a deficit in excess of 10 percent of their budget, New Jersey being one of them.

So maybe Governor Corzine should say "7 states have completely failed in their fiduciary responsibility to the taxpayers and we are one of them". That would be a lot more accurate.

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Lonegan versus Christie

I have made a point not to comment on the emerging challenger's race for New Jersey Governor. The reason is that I like both candidates for very different reasons and I would like to see them trully highlight their ideas and plans. But, as this is New Jersey, that is apparently not going to happen.

Down in the polls since the beginning, Lonegan has been running a slew of negative attack adds against Christie. He also seems to have support from some very thinly veiled front organizations that have a small list of achievements but great attention to this race-including running negative adds on Lonegan's behalf.

My gut feeling right now is that Lonegan is a real turn off. His polling may tell him he is doing the right thing but as a conservative, he is showing a liberal's complete lack of class. Instead of attacking Corzine and the mess that Democrats have created in this state, he is firing at Christie and firing in typical Jersey low form. And now Christie is replying in kind.

Note to Chris and Steve: Clean it up. Direct your fire at Corzine. And let's hear the meat, not mudslinging.

UPDATE: Jake here. I couldn't agree more. I respect Lonegan, but he needs to clean up his act and stop using scare tactics that will hurt conservative efforts down the road.

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Chavez gift to Corzine - Marsy dotes, and doesy dotes...

Some comical news impacting the state of New Jersey:

Venezuela's U.S.-based oil company is donating an island in the Delaware River to the state of New Jersey to be turned into a wildlife sanctuary.

Alejandro Granado, president of Houston, Texas-based Citgo Petroleum Corp., said the donation of Petty's Island shows a commitment by President Hugo Chavez's government to environmental conservation.

New Jersey Gov. Jon Corzine welcomed the move in a statement Wednesday, saying "Earth Day is a fitting time to consummate the donation of this special place."

I find it hilarious how often Democrat politicians in this country have no issue cozying up to dictators. And yet, these same policians would never speak civilly to Americans they do not agree with on politics. It just shows how there are no stateman left in today's Democratic party. Dictators ok. US citizens who do not share my view-evil.

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Corzine's answer to budget shortfall? In-state tuition for illegals.

I sometimes don't even know how to respond to New Jersey politicians and their incessant desire to spend our money on their latest pet project. We have documented here the tendency among new assembly members to immediately run to the floor to support raising taxes to add benefits with someone else's money (see our April 2008 archives on Paid Family Leave act).

Now our Governor, Jon "I didn't take this job to play scrooge" Corzine, has a new idea destined to close the budget gap. In-state tuition for illegal immigrants. From the New York Times:

Champions of a proposal to allow illegal immigrants in New Jersey to pay in-state college tuition could be forgiven for believing, after years of frustration and defeat, that their cause may finally have momentum.

A blue-ribbon panel convened by Gov. Jon S. Corzine to study immigration matters unanimously supported the proposal in a report issued last month, and the governor has also endorsed the idea. Meanwhile, a new, more liberal wind blows in Washington.

I would like to be clear. I am a major supporter of immigration to this country. I think that EVERY citizen of the world that WANTS TO BECOME AND AMERICAN and is willing to get in line and do it the right way should be supported and welcomed to our country. I do NOT support people coming here illegally, keeping their allegiance to their home country (thereby NOT desiring to become US Citizens other than to gain rights they are not entitled to) and taxing our infrastructure, health care system and criminal justice system.

I also believe that the companies who systematically recruit these illegals outside of the rules are criminally liable. Why? Because these companies are avoiding paying a fair wage and fair benefits to their people by bringing in cheap labor. I am not speaking about agricultural jobs which are frankly done legally via various migrant worker rules. I am talking about hotels, construction, restaurants and lawn maintenance firms.

You see, the only reason there are jobs "Americans won't do" are because employers will not pay competitive wages. Our kids used to mow the lawns in our neighborhoods. Now illegal Mexican immigrants do. The savings generating these firms profits are because the rest of us subsidize their illegality by providing healthcare in emergency rooms, educating their children and providing other social support services that should rightfully be paid by the employer.

But the net of this post is that Jon Corzine needs to wake up and start paying attention to what really matters. Stop trying to add on more spending line items because it makes you feel good. Stop promoting your latest pet project by bringing in some poor person who has been aggrieved and the State needs to correct it. We have several million aggrieved taxpayers in this state right now. How about addressing their concerns?

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Announcement - Another Tea Party - AFP Piscataway

Our loyal readers have been asking for more tea party info. Here is another event guaranteed to be solid turnout. From American's For Prosperity:


AFP-NJ Announces Taxpayer Tea Party to Protest Gov. Corzines’s Tax Hikes, April 15

New Jersey citizens urge Corzine to reduce spending, reject stimulus money



Join AFP-NJ along with grassroots activists across the country on April 15th at 5PM for a Taxpayer Tea Party to protest Governor Corzine’s proposed tax hikes.
NJ has the worst tax climate in the nation, and yet Governor Corzine continues to rely on tax revenues to support the state’s overgrown budget. This tradition has left us poorly positioned to deal with the economic recession.
Even with the so-called stimulus funds that are coming to New Jersey-- totaling $2 billion-- Governor Corzine has introduced a FY 2010 state budget with a $7 billion deficit, and massive tax hikes to go along with it.
Governor Corzine continues to increase taxes—it is the same mistake over and over again. Taxpayers have carried the burden of these mistakes long enough-- It’s critical to fight back against this proposed budget and its tax hikes!
Urge Governor Corzine and state legislators to take the first step in mending this $7 billion deficit by cutting the size of the state budget and planning for New Jersey’s financial future.

What: Taxpayer Tea Party
Who: Americans for Prosperity
When: Wednesday, April 15, 5:00pm
Where: Johnson Park ( River Road, Piscataway Township)

For more information or to register, click here or call 201-487-8844.

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The Corruption of NJ's Supreme Court

Let me state up front that I find the entire legal discussion over the Governor's email with his former girlfriend and the lawsuits regarding their disclosure to be a bit of a joke. The fact that Corzine allowed himself to get into this situation is more indicative of his mettle (or lack thereof) than the result of this political legal action. These are details that the public in this state do not get.

But here is what REALLY bothers me. The Governor of this state negotiated with the head of a union (that happened to be his girlfriend). The Union fired her for conflict of interest (they thought something was fishy). Corzine said everything was on the up and up. And the NJ Supreme Court said none of it was relevent. This smells really bad. And again, no one cares.

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Corzine's (and the Democrat's) Budget Problem

Jon Corzine just submitted his version of a budget this week with apparent lukewarm support only from his Democrat cronies in the legislature. This budget is likely to dramatically decrease Corzine's approval in the state due to the dire situation of the state's finances. Corzine in his budget address on March 10 claimed that he is a champion of cutting the budget:

To that purpose, the budget I am proposing for FY 2010 totals $29.8 billion - that's $1 billion less than the first budget I presented in 2006. Stop and think about it, since 1947, every governor before me has grown spending over their four years.

With this proposal, we will have reduced spending two years in a row and will literally spend less than in the first budget I presented in 2006. This isn't a matter of debate or nuance. It's a fact.

Let's examine this statement. He compared his drop in spending to the budget he submitted in 2006. For those of you who believe that facts should trump malarkey (I used that word in preparation for St Patrick's Day), here is the budget statement for the budget he submitted in 2006:

Governor Jon S. Corzine’s proposed Fiscal 2007
Budget seeks to restore fiscal integrity to the State
of New Jersey. This $30.9 billion Budget is an
important first step in a multi-year process to
reestablish prudent fiscal management. A
fundamental principle reflected throughout this
Budget is that we, as a State, must pay the bills for
the current operations of State government. We
cannot continue to defer the costs of our decisions
to future generations, or even until next year. This
simple practice of matching current expenditures
with current revenues has been missing from State
budgets for too long.

So, truth check one is on track. But what about the budget that acting Governor Codey submitted in 2006? Shouldn't that have some relevance on "Governor Spending Cut"? This is from the Budget brief for 2006:

Acting Governor Codey’s $27.4 billion proposed Fiscal
2006 Budget is an honest and responsible budget that
has State government living within its means and meets
the challenge of reining in government spending while
at the same time not recommending any increase in the
sales tax or income tax rates. Despite nearly a billion
dollars in increases for mandatory entitlements, the
proposed budget is $614 million, or 2.2%, below the
$28 billion budget enacted in fiscal 2005. In contrast,
the Fiscal 2005 Budget actually increased spending by
17% from the year before. In fact, the reduction
proposed for fiscal 2006 is the largest spending cut in
State history, both on a percentage basis and in its
amount.

So the real facts are that Governor Corzine is proposing spending 2.4 Billion dollars more than the budget that Codey submitted before he became Governor. And those were much better times than today. So Corzine while claiming the mantle of a spendthrift, is lying through his teeth. He raised spending 3 billion dollars his first year in office and now pats himself on the back for not getting anywhere near what Codey did as temporary Governor the year before he took office. I cannot consider this rhetoric or nuance, Mr Governor. You are dishonest.

Another dishonest portrayal is the claims about how the prior Republican Governor ran the state into the ground. Here is Christie Todd Whitman's final budget brief:

The total budget recommended by the Governor for
fiscal 2001 is $21.253 billion, an increase of $1.278
billion, or 6.4%, over the current year. Over the
seven budgets of the Whitman Administration, the
annual growth in appropriations has averaged 4.5%.
This compares to 6.3% in the prior administration.

Let's summarize what we have gotten from Corzine and McGreevey and their Democratic counterparts. Budgets that have grown from 21.2 billion dollars to 30 billion dollars. That represents growing the budget of this state 150% in the 8 years they have been in office. Our taxes are out of control and the only thing that has grown in the state are corruption arrests for New Jersey politicians (mostly Democrats) and the state workforce.

This Governor and legislature could have made an effort to get spending under control. They could have created a rainy day fund in good times to protect the state from economic downturn. They could have exhibited at least a semblance of fiscal self control. But they haven't. And we continue to pay for it.

And now, as the Governor tries to claim that flat lining spending increases will balance a budget devastated by the personal misfortune of many Wall Street "Rich People" that Corzine likes to point to when he is ginning up his class warfare act, he is being dishonest once again. And guess who is going to pay the price?

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I work in software marketing, so a substantial chunk of my paycheck comes from commissions. Can you imagine if I went to my boss and said, "Gee, Gerry, our commissions are down. So instead of X% per million dollars, you need to give me X+3% per million so I can stay revenue-neutral." He'd laugh in my face.

But that's exactly what Governor Corzine is doing. Tax revenues are down, so he's going to raise taxes: by a billion dollars or so!

Meanwhile, he's cutting less than 10% of spending (about 3 billion from a budget of, what, about 33 billion last year). And by the way, some of that so-called cut is rebates and deductions -- in other words, he's cutting back on letting us keep our own money.

Even when he's cutting spending, he's raising taxes.

And you'd be able to see that clearly if we had a budget to look at. But we don't.

For that matter, we can't see anything clearly. What are your priorities, Jon? You gave us some ideas in your budget address, but I can't tell how sincere you are. I can't tell whether my dollars are going to, say, Planned Parenthood (even though they had a surplus) or stem-cell research (even though the voters have given that idea a resounding "no").

So should he now get to hide behind an opaque wall until people actually have to vote on his budget? Should there be no debate?

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When he ran for governor, people talked about his financial savvy. If we had known then where the Wall Street Warriors would get us, maybe we wouldn't have been surprised that he's less than he's cracked up to be.

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I keep thinking about the budget as if it were weight. Putting on 60 pounds is a lot easier than taking it off, and you're better off not putting on the pounds; but if your weight is a problem then you have to figure out what habits made you heavy, fix those habits, overcompensate until you're down to a normal weight, and then start maintenance.

As a state, we've gotten fat on taxes. We shouldn't have increased spending as much as we did, but since we have, we should find out where the increases have gone to, how many are mandatory vs. discretionary, and what the real benefit is: how our quality of life has improved.

Then we should start remedial efforts. We'll have to strip out unnecessary stuff, even stuff we really like. We'll argue among ourselves about what's discretionary vs. what's mandatory. It won't be fun.

And then we'll have to keep off the weight.

Much easier said than done, of course.

Comment from Dennis: Jake, I think we miss the fact that Corzine is following the same script that Obama has followed at the Federal level. Gin up the crisis, use urgency to eliminate debate and pass a poor bill without appropriate review. We all know the stimulus went through under the "urgency" banner yet Obama waited 5 days to sign it into law. That was a scame pure and simple. Corzine has never had any new ideas so it is not surprising that he will do the same with NJ's budget. Message to the voters: Suckers!

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Corzine Tax Increase on All of NJ

The Governor announced his budget plan yesterday. He made a point to be Obama'esque by citing the global economic condition rather than his own mismanagement for the poor state of NJ's economy. As a matter of fact, he tried to balance the "i inherited the problem (from his Democrat counterpart?) with the economic situation. He proudly spewed Obama by announcing tax increases on those making more than $500,000 per year as if everyone didn't expect there was more to his populist pap.

Well there was. He quietly announced a proposal to not only eliminate the rebate program for everyone but seniors thereby increasing taxes on most of the homeowners int he state, he also announced the elimination of the deduction for mortgage interest in income taxes. I caught this last night and alerted Jake but I didnt get a change to do the research before the folks at NJ.com did commenting on the budget.

That could translate into a double whammy for non-senior homeowners earning between $75,000 and $150,000. Not only would they lose their rebate, they would also miss out on hundreds of dollars in savings from the deduction.

A homeowner earning $95,000, for example, would not only lose a $1,000-plus rebate. Scrapping the property tax deduction would take away another $350 or so, according to state figures.

But that isnt all:

According to income tax data from 2006, the most recent available, there were 469,300 tax returns in the $80,000- to $150,000-income bracket. Those taxpayers had an average savings of $356 from the deduction. The average savings was $175 for the 258,500 tax returns in the $50,000 to $70,000 range.

The proposed budget would offer rebates averaging $900 for non-seniors earning less than $50,000 annually, and checks averaging $700 for non-seniors making between $50,000 and $75,000.

Last year, Corzine's budget included rebates averaging $665 for households earning $100,000 to $150,000. Households earning up to $100,000 received checks averaging $1,115.

So guess what all of you New Jersey resident who voted for hope and change and a new way of doing things? You voted for a middle class tax cut that apparently amounts to $13.00 per month for most people. Review this post and you will realize that thanks to your Obama loving Governor, you are already in the hole by quite a large margin. You thought it was the OTHER GUY who was going to be taxed.

You were wrong.

Read the entire article here.

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Will NJ Property Tax Rebates be cut?

This just in from Newsday:

Gov. Jon S. Corzine said Friday that he is considering suspending property tax rebates next year as New Jersey faces a multi billion dollar budget gap.

The governor said all options are on the table for his 2010 budget proposal, which he plans to present to state lawmakers on March 10. State budget makers are looking for ways to close an estimated $6 billion deficit. That figure doesn't include federal stimulus money the state expects for budgetary relief.

It was just a matter of time that the Governor would notice that the state cannot afford the homestead rebate program. Last year, he tried to take it away but only pared things back a bit:

New Jersey residents get about $1.7 billion in property tax rebates annually.

Some homeowners saw their rebate checks cut or canceled last year. Those making more than $150,000 got no rebate, and those earning $100,000 to $150,000 saw their rebates decline by an average of $295.

While he said he is considering suspending the property tax rebates for some or all homeowners, Corzine on Friday would make no promises or predictions about next year's budget.

My issue with this program starts with the entire concept. If rebates are needed because property taxes are too high, the state should actually look at why. They would find that the unfunded mandates from Trenton and the wasted suctioning of school funds from non-city school districts into the inner city has put too much of a strain on local municipalities. That in addition to the fact that the state frankly has too much government. Too much local government. Too much county government and too much state government. I have mentioned before in this blog that I have lived in several states and New Jersey extracts more money for the least services of any state that I have lived.

So the underlying motivation for the rebate is to ignore the fundamental problem and patch it by sending out checks to homeowners. This is a kick the can strategy that does nothing to solve the problem, just postpones it to another day. And if that were the only issue with the rebate it would be bad, and irresponsible of our politicians and a demonstration of sheer government incompetence, but it would at least be understandable.

There is a built in bias in the rebate system against people who actually pay taxes in our state. This program has morphed into a giveaway program designed to put out checks ahead of elections to Democratic constituencies. This program provides checks to citizens that DO NOT EVEN PAY PROPERTY TAX. And it has continued to exclude the highest property tax contributors in the state due to income. Sort of a double progressive tax (you pay more for your taxes on income and then pay more for your property tax).

Now, I have heard from people who make the case that property taxes are built into rents but most studies will tell you that the market and location determines rental prices. Frankly, if you are going to make the indirect argument, retail shoppers pay a higher premium on property taxes as local prices for goods sold in retails shops are much more sensitive to property tax costs than rental units.

But the main point is that this program is no longer affordable. My suggestion would be to look closely at the Senior citizens impact and retain the program for SENIORS WHO PAY PROPERTY TAXES. They are often impacted severely for growth in their community. For seniors who rent, no rebate.

It's time for the adults in the room to eliminate their political pay-for-vote schemes and look toward helping New Jersey come out of this fiscal situation a stronger and more vibrant state. The alternative is that we can become Michigan. And that is not a pretty sight.

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Corzine's budget folly

Governor Corzine gave his state of the state speech yesterday. The most interesting part of the Governor's speech is the complete lack of real content and ideas for changing New Jersey's fiscal situation.

From the start, it was clear that this was not a business speech, it was purely politics. Shortly into the speech, Corzine alternated from patting himself on the back to throwing out some anecdotes to citizens hard times and his trip to Iraq. One should note here that while Iraq is may be a good topic for a speech on military families or military spending or securing our bases in New Jersey, it is a distraction in the state of the state address. And it represented just one of 10 stories designed to avoid the real topic and addressing it with any substance.

While Corzine called the economy priority #1, #2 and #3, he immediately switched to Bush bashing. And then spending. And then more spending. He went from patting himself on the back for saving 800 million dollars in spending last year and then proceeding to borrow 3.9 BILLION. He also mentioned 3 times that he cut spending by 1.4 million this year but doesn't once mention what he actually cut.

He touted the following accomplishments:

These highlighted achievements and work in no way describe the entirety of our agenda and activities.

Keep in mind:

We enacted a family leave insurance program, the second in the nation

A completely anti-business program that will not help anyone with real family issues as we have commented on previously.

We strengthened our worker’s compensation system
We continued reform of our public pension system

What strengthening? You made it harder for businesses to hire and keep workers employed? And when and where did the public pension reform occur. I follow his every move and I have not identified anything substantial.

We appointed record numbers of women and minorities to the bench
We created the office of supplier diversity

Wouldn't it be nice if we felt these appointments were about awarding excellent individuals and minority companies rather than political correctness. I would love this governor to say that he helped give 100 kids from Trenton the wherewithal to get a law degree. But he won't say that because he didn't do anything to really help minorities in this state. This is pure drivel.

We built and dedicated a long-overdue World War II memorial
We reformed the Charity Care funding formula to better protect health care for our most vulnerable, especially in our urban areas

Sorry if I am underwhelmed by these achievements.

We created an inter-agency Council on the Prevention of Homelessness
We finalized the Highlands Master Plan

What would we do without commissions and plans. I wonder how many new state jobs it took to do these projects?

We built and participated in a regional auction system for carbon credits
And, we delivered a nationally recognized Energy Master Plan as well as a Greenhouse Gas Reduction Plan

Hey Governor? Didn't you hear? Global warming is on hold due to the impending ice age.


He finished up with a plan of caps, and projections and hopes that Obama will bail the state out. But not one concrete plan. Not one.

If you would like to read the text of the speech in its entirety, you can access it here.

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Corzine Sued - Is the state operating illegally?

It has been clear for some time that New Jersey has been spending way beyond its means. And the Governor ("I didn't take this job to be Scrooge') continues to ignore the fiscal calamity facing the state. But with all of his fiscal scams, I thought he was intelligent enough to either change the rules or come up with a technicality around New Jersey's leaky laws regarding public funding and spending.
Apparently not.

Governor Corzine has failed to respond to an open records act request from Senate Republicans regarding the states budget. From Politicker:

The complaint notes that there is a constitutional requirement that the expenditures of the State not exceed its revenues and that Governor Corzine has acknowledged drops in revenue that meet or exceed the planned surplus for the current fiscal year. At the same time, the Governor has continued to sign new appropriations into law, without indicating how those appropriations will be funded.

Could it be that our Governor knows that the state is spending far outside the revenue it is taking in right now? I would bet on it. Otherwise, why would the governor refuse the request which would put him squarely in violation of the state constitution.

See the complaint here.

Read the Politicker article here.

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Q: What's the worst way to start a crash diet?

A: Run out of food.

At his end-of-the-year press conference today, Governor Corzine gave a pessimistic view of the next year in New Jersey and committed to cutting spending. This is gonna hurt. We've been gluttons for too long, and as we tighten our belts we will be in more pain because of it.

(Fortunately, for most of us, this is just a metaphor; that said, please remember the "We Can't Let This Bank Fail" food drive.)

It's a shame that it will hurt this much. Some of this was avoidable, even with the financial sector's plummeting fortunes.

Think about one aspect of the pain: cutting the government's budget will mean lost public-sector jobs. Transitioning from a government job to a private-sector job is hard -- and it's made even harder when private-sector unemployment is high. People with "safe" government jobs will feel more pain than if we had reduced our budget earlier, increased private employment in the state, and thereby encouraged them to get private-sector jobs.

Don't get me wrong: a bad economy always hurts. But this one will hurt more because of our dependence on the Nanny State.

And we will only be making this particular dependency (government jobs) worse if we pretend that feeding the government is an economic stimulus. Go to war with Connecticut? Maybe that would stimulate the economy. Pour more money into government contracts for road building? Not so much.

I don't only blame Governor Corzine. As WBGO reports, "His most recent plan to delay pension payments floundered in the Senate." But I do worry about him; he needs to follow through on this promise:

Let’s actually get in front of the curve as opposed to staying with it and waiting for some other shoe to fall, to drop, to get to a conclusion. I feel very strongly about that. It’s not exactly a love fest with regard to those issues.

We should have done that already. We shouldn't have a 33-plus-billion-dollar budget. Yes, we should have encouraged municipalities to merge or share services -- something I heard Corzine claim on WBGO this morning, but that isn't included in their write-up -- but we also should have made them less dependent on the state in the first place.

Governor Corzine, State Assemblymen, State Senators, now is the time. Yes, this is going to hurt, but the time will not come again in which people are this willing to regain control on spending. Tightening the belt will hurt, yes, but you have to do that anyway. Ratchet it tighter than you feel comfortable with, because normally the ratchet works only one way, and you can't tighten it at all. Get ahead of the curve.

Don't play games: don't claim that you've made deep cuts when you're only going back to 2006 funding levels, don't claim that you're only borrowing for "required expenditures" when every penny borrowed or spent represents a choice to go further into debt, don't posture as a deficit hawk while promising bailouts and stimulus packages for big government projects.

Do your job: get the state's finances in order.

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Random Bailout and Stimulus Thoughts

My creativity has been a bit off lately with too much going on at work to really think about the political and financial tsunami around us. Or maybe it is more about avoidance. Either way, it's time for some randomness....

The NJ Governor signed legislation today that has been reported(here) as a business inducing change in the state's taxation rule. What strikes me as strange is that while we have had a stampede of business unfriendly legislation (increased taxes, paid family leave, increased rules and regulations etc) that have had an absolutely direct impact on revenues and/or costs, this legislation represents some esoteric rules changes that will frankly only do something for the companies who apparently lobbied someone. You want to stimulate business in New Jersey? Give a three year tax holiday for any company that hires more than 250 people in the next three months. Stop with the lame pretend improvements.

The state Minnesota has spent millions to get to a foregone conclusion. That a clownish Democrat will somehow procedurally be declared a senator. The same team(read here) that accomplished a similar overturn of an election in Washington state is on the job. And Minnesota will only begin to be embarassed should Franken get away with it.

New York woke up recently to the announcement of their Governor's plan to tax everything that moves. I commented on the Patterson's plan here at njtaxrevolution. Then I read this opinion piece in the Inquirer. And main thrust of the argument is that at least NJ and PA are not in New York's situation. The joke of that argument is that when the economy was much better, New Jersey already enacted the same pack of clownish legislation taxing everything that moved. And look where it has gotten us. We still have outrageous deficits and the only reason it isn't more obvious in the news is that New York already knows that they are in trouble. Our state leaders haven't done the math yet.

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