June 2,2018
the staff of the Ridgewood blog
Trenton NJ, Governor Phil Murphy’s administration put New Jersey’s state agencies on notice Friday that they should prepare for another state government shutdown if a state budget isn’t signed by the June 30 deadline.
In a letter to Murphy’s cabinet members, the Governor , asked them to update shut down contingency plans for their departments.
The letter : https://www.documentcloud.org/documents/4491799-GovtShutdown-MEMO.html
June 2,2018
the staff of the Ridgewood blog
Trenton NJ, State Treasurer Elizabeth Maher Muoio on Friday directed all state cabinet and agency heads to immediately freeze all hiring, promotions and discretionary spending until further notice in order to ensure General Fund resources are adequate to support essential state operations.
“I have repeatedly made it clear that we face extraordinary fiscal challenges due primarily to the structural imbalance in our General Fund. Given the uncertainty about bringing Energy Tax Receipts on budget before the close of the fiscal year, we have to reserve all available resources in order to ensure we close out the General Fund in a positive position.
“Because the General Fund accounts for roughly 55 percent of state funding, it is essential that we freeze all discretionary spending to ensure we can support the crucial functions that keep the state operating – everything from caseworkers for children in foster care to the operation of our developmental centers to the safety and protection provided by State Police.
“To that end, I have sent a letter to all cabinet and agency heads today ordering them to freeze all hiring, promotions and non-salary operating and discretionary funding,” said Muoio.
file photo by Boyd Loving
June 1 2018
the staff of the Ridgewood blog
Ridgewood NJ, a recent poll published in the Ridgewood blog found that barely 50 percent of New Jersey residents thought the state was a good place to live. The state has the worst business climate in the nation, and residents pay the highest average property tax bill.
For his part Governor Phil Murphy’s first executive budget promises to make the state even more unwelcoming by crushing Jersey families and businesses with over $1.5 billion in new taxes and fees.
That figure totals more than 4 percent of the state budget. It will be a mammoth tax increase on people who cannot afford it.
The $1.5 billion-plus tax hike facing New Jerseyans includes:
$765 million millionaire’s tax hike.Increasing tax on income over $1M from 8.97 percent to 10.75 percent . A millionaire’s tax would be added, just as the Governor complains about new limits on state and local tax deductions hurting wealthy residents – a reminder he’s concerned about milking these folks for revenue, not about reducing their tax burden.
$581 million sales tax hike. Sales tax increased to 7 percent. Adding sales tax on Uber, Lyft, and Airbnb Expanding Internet sales tax beyond New Jersey’s borders.
$59 million from new tax on vaping products, and hike on tobacco products.75 percent wholesale tax on e-cigarettes. Increasing wholesale tax on tobacco products to 68 percent
In a $100 million carried interest money grab , the Murphy budget also includes a “fee” (actually a tax) on carried interest. There is no carried interest “loophole”, but either way that is a debate about the federal code, it’s not a state issue. It’s an insult to peoples’ intelligence to sell them on a tax hike with inaccurate “loophole” talk.
Yesterday Murphy even reintroduced the failed individual mandate tax for New Jersey as Murphycare .
And of coarse just in time for the summer driving season an increase in the gas tax is on the table .
file photo by ArtChick
June 1,2018
the staff of the Ridgewood blog
Trenton NJ, With the unofficial start of summer less than a week away, the New Jersey Office of Homeland Security and Preparedness (NJOHSP) has announced a new summer initiative designed to keep New Jersey’s residents safe this season.
NJOHSP’s “Secure the Shore” Initiative is a specialized subsection of the State’s larger, year-round “See Something, Say Something” campaign that encourages the reporting of suspicious activity. Through suspicious activity awareness, reporting, and information-sharing, critical infrastructure owners and operators, law enforcement, and the public at-large prove invaluable to initiating investigations and preventing potential attacks.
“After the Seaside Park bombing, it was tips from New Jersey residents that led to the arrest of the bomber, Ahmad Khan Rahimi,” said NJOHSP Director Jared Maples. “Engendering this level of suspicious activity and reporting awareness is paramount to preventing future attacks and developing strategic plans for both short- and long-term solutions to emerging and evolving homeland security concerns.”
The “Secure the Shore” Initiative will focus on Monmouth, Ocean, Atlantic, and Cape May counties, and municipalities within these counties along the coast, with an emphasis on towns that attract mass gatherings. In coordination with local, county, state, and federal law enforcement, NJOHSP has deployed a security strategy to prepare shore communities of the emerging threat to public venues with limited security and free movement.
NJOHSP investigators will deploy to the shore towns and various special events throughout the summer. NJOHSP will conduct visits to the boardwalks and businesses, and will work with local, state, county, and federal partners to aggressively investigate all leads in a timely manner. NJOHSP, with the help of law enforcement partners, will also conduct trainings for lifeguards and beach patrol personnel on how to identify and report suspicious activity.
The New Jersey Office of Homeland Security and Preparedness encourages all residents to remain vigilant while enjoying themselves this summer. If you “See Something, Say Something,” by calling 1-866-4-SAFE-NJ or emailing [email protected].
May 31,2018
the staff of the Ridgewood blog
Ridgewood NJ, in a new survey, certified public accountants (CPA’s) in New Jersey believe the spending plan put forth by Gov. Phil Murphy would be bad for the Garden State.
Nearly 75 percent of the 786 NJCPA members responded to the survey conducted earlier this month said New Jersey’s economy would either get “significantly worse” (31 percent) or “marginally worse” (44 percent) over the long term under Governor Murphy’s proposed budget plan.
Ralph Albert Thomas, the CEO and executive director at the NJ Society of CPAs, says when members were asked about Murphy’s budget proposal “and the impact it would have on the economy going forward, an overwhelming 74 percent said that it would get worse, and 31 percent said it would get significantly worse.”
Meanwhile just 14 percent of respondents said Murphy’s proposed spending plan would help the Jersey economy.
May 31,2018
the staff of the Ridgewood blog
Trenton NJ, Governor Phil Murphy today conditionally vetoed Senate Bill No. 122, the Garden State Film and Digital Media Jobs Act, which provides corporation business tax and gross income tax credits for expenses incurred as part of the production of certain films and digital media content.
The bill is often referred to as the Reality TV Full Employment Act . The Governor wants a more diverse make up of New Jersey TV shows and to spread the wealth of TV production to more communities .
The question remains ,is not one The Real Housewives of New Jersey or Jersey shore enough for everyone , we guess not. Making New Jersey look like a garbage is big business . If we cant do anything right in New Jersey we can always make ourselves look like fools and make money off of it.
The Governor went on; “I want to thank the Legislature for passing the Garden State Film and Digital Media Jobs Act, which will help revitalize the film and media industries in New Jersey,” .“Filming movies and TV shows in New Jersey creates good-paying jobs, generates economic growth, and centers our state as a home for 21st-century growth industries.”
“This is why I’m eager to work with the Legislature to strengthen the legislation by adding incentives for diverse hiring in the film industry and extending eligibility for certain reality TV shows that invest in New Jersey’s economy and promote tourism to the Garden State.”
“A vibrant TV and film industry in New Jersey will create jobs, spur economic activity and bolster the State’s cultural identity,” said Senate Majority Leader Loretta Weinberg. “I was happy to work with the Governor on this important legislation because we all recognize the value of the film industry to New Jersey, and I believe that his suggested changes will advance our shared goals of supporting and promoting an industry that is important to New Jersey.”
“The Governor has taken an excellent piece of legislation and made it even better,” said Michael Uslan, Chairman of the New Jersey Motion Picture and Television Commission.
“Thousands of union members employed in the film and television industry work in New Jersey and this is the incentive program they have been hoping for,” said David Smith, Vice Chairman of the New Jersey Motion Picture and Television Commission. “It allows them to work in their home state.”
May 30, 2018
the staff of the Ridgewood blog
Trenton NJ, Governor Phil Murphy signs NJ individual mandate healthcare legislation raising taxes once again and offering nothing in return . New Jersey already has a very high cost healthcare system and pushing statewide the failed Obamacare agenda is nothing short of a total disaster.
78% of New Jersey households hit by the Obamacare mandate tax make less than $50,000 per year.
According to the IRS, the Obamacare mandate tax hit 188,570 New Jersey families and individuals in the most recent year of available data. 146,910 of these taxpayers made less than $50,000 per year – 78 percent of those impacted by the mandate.
38% of New Jersey households hit by the Obamacare mandate tax make less than $25,000 per year. That’s 70,830 New Jersey households.
New Jersey households paid a total of $93,342,000 in Obamacare individual mandate taxes in the most recent year of available data.
MURPHYCARE is here, in November 2017, Better Choices, Better Care NJ released a 15-point plan to improve health care in the state of New Jersey. The plan lays out why these issues were selected, how leaving them unresolved negatively impacts New Jerseyans and what specific remedies are needed to fix them. The report can be viewed at: “Moving New Jersey To Affordable, Quality Health Care.”
Among the issues laid out in the plan to help reduce costs are: having the state create its own individual mandate, so that premiums do not skyrocket as low-risk individuals leave the market; moving behavioral health aspects of Medicaid from a fee-for-service to a patient centered care model; moving behavioral health and substance use disorder services to the Medicaid Managed Care Program; and having transparency guidelines across all sectors and facets of health care, especially when it comes to consumer pricing.
This all sounds great till the bill comes, high bills ,less choices ,more mandates , time to move .
May 30,2018
the staff of the Ridgewood blog
Trenton NJ, To re-ignite the promise of New Jersey’s innovation economy, Governor Phil Murphy today announced two initiatives – the STEM Loan Forgiveness Program and the NJ Career Accelerator Internship Program – to encourage individuals in STEM fields to make a long-term commitment to building and maintaining a career in New Jersey. The initiatives were part of the Governor’s Fiscal Year 2019 budget message.
“The catalyst to reclaiming New Jersey’s innovation economy is our ability to attract and retain the scientific talent New Jersey businesses require to succeed in a 21st century economy,” said Governor Phil Murphy. “By implementing these two STEM initiatives, we’re making a critical investment in human capital – one that will fuel the growth of innovation at businesses across the Garden State and recapture New Jersey’s reputation as a pre-eminent leader in science and technology.”
The STEM Loan Forgiveness Program will encourage those in high-growth STEM occupations to work in New Jersey by reducing their student loan obligations.
After certification that an employee has worked for at least four years in a designated high-growth STEM occupation in New Jersey, the New Jersey Higher Education Student Assistance Authority (HESAA) will redeem eligible student loan expenses for up to four years. The State would provide eligible employees with $1,000 annually to defray outstanding loans and employers would be required to at least match this award – or otherwise partner with the State – to provide a total benefit worth at least $8,000.
Eligibility requirements for the STEM Loan Forgiveness Program include:
Being a resident of the State of New Jersey and maintaining residency during participation in the program;
Having a degree from an approved STEM degree program;
Working full-time in an approved high-growth STEM occupation at a New Jersey employer for a minimum of four years before applying to the program;
After applying for the program, working for an additional one to four years of employment in an approved high-growth STEM occupation at a New Jersey employer;
Receiving annual certification from his or her current employer to attest the employee is working in an approved high-growth STEM occupation,
Having an outstanding balance with a State or Federal student loan program and not being in default on any student loan.
To support current students, Governor Murphy also announced the NJ Career Accelerator Internship Program, a paid internship program to be administered through the New Jersey Department of Labor and Workforce Development. The Department will target first-time interns enrolled in New Jersey high schools, colleges, and universities with offers in STEM industries such as IT/Software, Life Sciences and Healthcare, and Energy. Participating employers will be reimbursed for up to 50 percent of wages paid to new interns for up to $1,500 per student.
Over time, internships have become a necessary credential for employment and are essential to learning an industry’s relevant skills.
“Stevens Institute of Technology enthusiastically supports Governor Murphy’s proposal to reclaim New Jersey’s innovation economy through a multi-faceted suite of initiatives including a STEM loan forgiveness program to attract and retain top talent in fast-growing technology-based occupations in the State,” said Nariman Farvardin, president of Stevens Institute of Technology. “The unprecedented pace of technological advancement in fields as diverse as artificial intelligence and cybersecurity to biomedicine and finance demands a multi-pronged approach to stem the ‘brain drain’ from New Jersey to other states. Governor Murphy is to be commended for taking bold action to build and retain a highly-skilled, technology-savvy workforce upon which our State’s economy depends.”
“I am very excited and encouraged by the Administration’s strong focus and efforts to reignite the innovation economy here in New Jersey, and truly believe initiatives like the STEM Loan Forgiveness proposal and STEM internship grant program will provide for significant movement toward that goal,” said WorkWave CEO Chris Sullens. “As one of the state’s fastest growing technology businesses, WorkWave needs a rich pool of technology-savvy employees to choose from to fuel continued rapid growth. Providing incentives for New Jersey students to choose STEM majors through internship grants and pairing that with a loan forgiveness program that helps them better afford that education and provides an incentive for those students to stay in New Jersey and apply that knowledge in one of the growing technology companies will pay dividends for the state in both the short and the long run while helping revitalize the critically important innovation economy here in New Jersey.”
“Fidelity supports the Governor’s efforts to grow the state’s economy and attract a highly skilled workforce from which we can draw the quality talent needed to continue to drive our commitment to innovation,” said Natalie Brathwaite, Fidelity Regional Director of Public Affairs. “Innovation begins with the employee experience, so we provide benefits and programs designed to help people thrive in and out of Fidelity. As part of our approach to tackling the growing student debt issue, Fidelity is proud to be one of the first employers to offer our own student loan benefit as well as develop solutions and education for our workplace clients to help address their employee’s student loan debt concerns.”
“As a New Jersey-based technology employer, Cognizant appreciates these efforts to spur New Jersey’s innovation economy and to address the STEM skills gap,” said James Lennox, Executive Vice-President & Global Chief People Officer, Cognizant Technology.
“We see great value in the Governor’s efforts to incentivize individuals to pursue STEM professions as it aligns with the EY purpose of building a better working world,” said Jackie P. Taylor, EY’s Government & Public Sector Leader for the State of NJ.“Creative efforts to address skill gaps in the market, foster innovation and increase employee retention are the levers that will ultimately differentiate New Jersey’s workforce. The heightened focus should also increase student interest in STEM related studies and strengthen the pipeline of talent amongst graduates entering the workforce. This will be helpful to EY, and many of our clients, who frequently hire individuals with solid backgrounds in Science, Technology, Engineering and Math to support our organizations.”
The STEM Loan Forgiveness Program will be contingent upon State lawmakers passing legislation to implement the initiative.
may 29,2018
the staff of the Ridgewood blog
Trenton NJ, Attorney General Gurbir S. Grewal and the Division on Civil Rights announced today the settlement of two separate disability discrimination cases – both involving disabled New Jersey residents who were denied permission to keep medically-prescribed support dogs by the governing boards of their respective housing complexes.
In one case, Harbortown Sail, a residential complex located in Perth Amboy, agreed to pay a condominium renter $10,000 to resolve allegations it unlawfully discriminated by denying the woman’s request to keep a support dog that her prescribing physician told the Division would lessen her reliance on opioid pain medications.
In the other case Landmark East Corp., corporate owner of a housing complex in Ridgefield Park, paid a resident $16,000 to resolve allegations it unlawfully discriminated by denying the man permission to keep a medically-prescribed support dog that his treating physician described as “necessary” for his health.
“These are fair settlements that resolve troubling cases – cases in which residents with a documented disability were treated in ‘hardball’ fashion by governing boards that apparently did not recognize the distinction between a pet and a clinically-prescribed emotional support animal,” said Attorney General Grewal. “These cases should serve as a message to landlords – as well as the governing boards of condominiums and cop-ops across the state – that the New Jersey Law Against Discrimination (LAD) was created to protect the rights of people with disabilities, including those who require service dogs and emotional support animals. We are committed to upholding the LAD.”
Harbortown Sail, a townhome-style condominium community, allows unit owners to keep one domestic pet, but maintains a “no pets” policy for renters. In July 2015 a husband and wife signed a one-year lease – the wife suffers from multiple medical conditions including lupus, diabetes and neuropathy – and began occupying a two-bedroom unit, along with the wife’s support dog.
The wife – identified only as “T.D.” to protect her medical privacy – was advised by Harbortown’s management in August 2015 that as a renter she could not keep the dog. In response, T.D. submitted a letter from her treating physician opining that she “meets the definition of disability” and needs a support dog to help her cope with multiple illnesses. Harbortown’s Board rejected the doctor’s letter and denied permission for T.D. to keep the dog because the letter was not written on an authorized physician’s prescription pad.
The Board then followed up with a certified letter to T.D.’s husband advising that the couple’s lease was being terminated, and that they must vacate their rental property by January 31, 2016. Only after T.D. got rid of her support dog and advised the Board of its removal – in mid-January 2016 – did management rescind the lease termination.
During the Division on Civil Rights investigation, T.D.’s treating physician told an investigator she suffered chronic pain in her arms and lower back and the support dog helped T.D. cope better with her pain, and therefore use less opioid pain medication. The doctor also said he’d deliberately used his own office stationary in writing a letter on her behalf to the Harbortown Board, because prescription pads can be stolen.
In addition to the $10,000 settlement payout to T.D., Harbortown must revise its policy for reviewing and processing requests for exemption from its no pets rule.
Among other changes, the Board must eliminate its requirement that medical documentation be submitted only on a prescription pad. The revised policy must “acknowledge that there is a distinction between a service animal, such as a service dog, and an emotional support animal.” The updated policy also must recognize that, under the LAD “service dogs are not considered pets and shall be entitled to full and equal access to all housing accommodations.”
As part of the settlement, T.D. can submit a future request for permission to keep a support dog in her unit at Harbortown, and the Board must be guided by its revised policy. The Board also must arrange training on federal and state fair housing laws for all of Harbortown’s employees and managers.
In the Landmark East case, resident H.G. suffers from anxiety and depression. Three weeks after he moved in, H.G. wrote to Landmark East requesting permission to have a five-pound terrier live with him as an emotional support animal. A letter provided by his clinical psychologist noted that H.G. required an emotional support dog to help him cope, function more normally on a daily basis, and to “mitigate the symptoms he is currently experiencing.”
In response, Landmark East’s attorney sent a letter to H.G. indicating that the Board of Directors was “extremely disturbed” by his request to keep a service dog, and also accusing him of having acted “fraudulently” by signing a “no pet/sublet” letter when he obtained his housing unit.
H.G. then obtained a second letter from his treating physician explaining that an emotional support animal is “necessary for his emotional/mental health.” H.G. did not formally submit the letter to Landmark East, however, because he was unable to obtain a “physician’s verification request form” that he was told must accompany the submission. In fact, no such form existed.
On August 19, 2015, Landmark East sent a Notice of Violation to H.G. stating that he was in breach of the complex’s no pets restriction, and that his account would be fined $25 per week while the dog remained in his unit.
Landmark also threatened to terminate H.G.’s ownership interest in his unit within a week and sell his shared at public auction. After H.G. sought recourse through the Division on Civil Rights and incurred thousands of dollars in legal fees, Landmark East decided that his support dog could stay.
Under the settlement announced today, the Respondent must arrange for anti-discrimination training of its property managers, and “develop policies and procedures consistent with the agreement, with the goal of ensuring compliance with the Law Against Discrimination.”
Landmark East Corp. must submit to Division monitoring of its housing practices for two years and provide anti-discrimination training for its employees, managers, board members and agents. Landmark East is also subject to a $5,000 suspended civil penalty.
AG Grewal to IRS: Stop “Playing Politics” with SALT Tax Guidance—or Face a Legal Challenge
May 27,2018
the staff of the Ridgewood blog
Trenton NJ, Attorney General Gurbir S. Grewal today urged the U.S. Internal Revenue Service (IRS) to drop its “misguided” plan to enact a new rule designed to undermine a recent New Jersey law. That law – signed by Governor Phil Murphy earlier this month – allows residents to receive property tax credits when they make charitable contributions to their local governments.
The Trump Administration enacted a tax overhaul in December 2017 that placed, for the first time, a $10,000 cap on the federal deduction for state and local taxes (SALT). In response, New Jersey, New York and other states passed laws allowing residents to instead make deductible charitable contributions to their local governments, and to receive partial tax credits when they do so. “But in an unprecedented move,” Attorney General Grewal explained, the IRS just yesterday “announced plans to end the deductibility of such contributions.”
In a letter to IRS Commissioner David J. Kautter, Attorney General Grewal points out that the New Jersey tax credit law is similar to 100 laws enacted in more than 30 other states, and is consistent with longstanding IRS guidance and numerous court decisions that such contributions remain deductible. So “the IRS’s plan will upend over 100 state programs in a single rule—a nightmare for both states and the IRS.” Yet the IRS has given “no reason for [its] sudden about-face.”
“The IRS should not play politics. Instead, it must confirm its longstanding interpretation of federal law,” Grewal explains in his letter. “Should the IRS and Treasury Department continue down this path, New Jersey will have no choice but to challenge the new rule in court.”
Attorney General Grewal’s letter notes that the New Jersey law authorizes municipal and county governments and local school districts to establish “charitable funds for specific purposes” and to permit residents to gain partial property tax credits for donating to those funds. Across the states with similar programs, charitable funds “run the gamut” from those designed to aid natural resource preservation efforts to funds that help provide financial aid for college-bound children, support shelters for the victims of domestic violence and many other programs.
The Attorney General contends that the IRS’s decision runs counter to the federal Tax Code, which makes plain that deductions are permissible for “any charitable contribution … payment of which is made within the taxable year.”
“The statute is explicit that such contributions include gifts given to state governments and their political subdivisions,” Grewal notes. “The only remaining issue is whether such gifts are deductible if the contributor gets a tax credit in return.” While the IRS has previously “answered that question resoundingly in favor of laws” like New Jersey’s, the latest guidance “suggests that the IRS plans to tell states and taxpayers alike the answer is no.”
“I ask you to think twice before going down that misguided road,” Grewal warns the IRS Commissioner. “The IRS’s longstanding approach, supported by precedent and policy, supports what New Jersey has done.”
May 22,2018
the staff of the Ridgewood blog
Ridgewood NJ, , In a new report, Moody’s Investors Service described New Jersey’s April income tax collections, which were down 1 percent from last year, as an outlier and “weaker than expected.” NJ Treasurer Elizabeth Muoio told the Assembly Budget Committee on Monday. “A reality check on the urgent need for new revenues.”
Both Democrat and Republican leadership in both houses of the state Legislature say they’re opposed to those tax hikes, and they’re now firmly in the position of having to come up with $1.5 billion in cash or slashing as much to keep the budget in balance.
The ugly reality is that increases taxes ill continue to erode the already shrunken tax base in New Jersey .
While the Murphy Administration has promised a wild spending spree with no visible budget cuts anywhere else and the pace of taxpayer exodus from New Jersey has quickened ,Holly Schepisi , New Jersey State Assemblywoman for District 39 , “While wanting to create programs such as free community college, expansion of financial programs and aid, raising salaries and providing retroactive pay increases may be laudable progressive goals of Governor Murphy, New Jersey is in a real financial crisis necessitating a combination of budget cuts, large scale reforms to our pension and health system and a restructuring of our entire tax code and school funding mechanisms. Our legislature must work in a bipartisan manner and have the intestinal fortitude to do what is needed in order for our State to become fiscally healthy. Then, and only then, should conversations regarding the Governor’s proposed increases in spending take place.”
May 11,2018
the staff of the Ridewood blog
Ridgewood NJ, according to the The Mercatus Center at George Mason University ,New Jersey is dead last in fiscal health based on its fiscal solvency. At the end of the year, it is a toss up to whether or not New Jersey has enough money to pay its bills. These high costs are unsustainable and we need reform to get New Jersey back on a better path.
#50 | Ranking the States by Fiscal Condition: New Jersey
Eileen Norcross , Vice President of Policy Research
Olivia Gonzalez ,Research Associate
Summary
On the basis of its fiscal solvency in five separate categories, New Jersey is ranked 50th among the US states for its fiscal health. On a short-run basis, New Jersey has between 84 percent and 211 percent of the cash needed to cover short-term obligations. Revenues cover 91 percent of expenses, and net position decreased by $678 per capita in FY 2015. On a long-run basis, New Jersey’s metrics are dire. A net asset ratio of −2.92 points to a heavy reliance on debt and large unfunded obligations. Long-term liabilities are 360 percent of total assets, or $16,821 per capita, which is the highest among the states. Total primary government debt is $44.23 billion, or 8.3 percent of state personal income, far above the average for the US states. Unfunded pension liabilities, on a guaranteed-to-be-paid basis, are $224 billion, or 42 percent of state personal income. OPEB is 15 percent of state personal income, the highest ratio in the states.
Key Terms
Cash solvency measures whether a state has enough cash to cover its short-term bills, which include accounts payable, vouchers, warrants, and short-term debt. (New Jersey ranks 37th.)
Budget solvency measures whether a state can cover its fiscal year spending using current revenues. Did it run a shortfall during the year? (New Jersey ranks 49th.)
Long-run solvency measures whether a state has a hedge against large long-term liabilities. Are enough assets available to cushion the state from potential shocks or long-term fiscal risks? (New Jersey ranks 50th.)
Service-level solvency measures how high taxes, revenues, and spending are when compared to state personal income. Do states have enough “fiscal slack”? If spending commitments demand more revenues, are states in a good position to increase taxes without harming the economy? Is spending high or low relative to the tax base? (New Jersey ranks 24th.)
Trust fund solvency measures how much debt a state has. How large are unfunded pension liabilities and OPEB liabilities compared to the state personal income? (New Jersey ranks 39th.)
For a complete explanation of the methodology used to calculate New Jersey’s fiscal health rankings, download the full paper and the dataset at mercatus.org/statefiscalrankings.
To read all our work on New Jersey, go to mercatus.org/states/newjersey.
May 9,2018
the staff of the Ridgewood blog
Trenton NJ, while you been buy on the local election campaign Governor Murphy just handed out a nice payback to the unions that got him elected .Governor Phil Murphy said at the time he doesn’t know the cost to taxpayers of raises he gave to 35,000 New Jersey state workers, members of a union that supported his candidacy.
Assemblywomen Holly Schepisi said , “Maybe these raises are warranted, maybe they aren’t, but how could our Governor authorize them without having some idea of what they would cost the taxpayers of New Jersey???
P.S. it’s over $148 million ”
UPDATE: Below please find today’s press release from the Governor’s office which discusses preliminary increased costs of $149 million.
State of New Jersey
Murphy Administration Releases Total State Cost of Contract Settlement with the Communication Workers of America, AFL-CIO
Trenton – Today, the Murphy Administration released the total projected state cost of its recent contract settlement with the Communication Workers of America, AFL-CIO:
The total projected state cost of the contract is approximately $148.9 million.
Of this total, $78 million is related to the unprecedented suspension of step increments and clothing allowances by the Christie Administration dating back to FY 2016.
A fiscal year breakdown of the projected costs may be found below. Retroactive payouts for FY 2016 and FY 2017 are assumed in the Fiscal Year 2018 adjusted appropriation:
FY Payout Total
FY16 Retro $24.0 million
FY17 Retro $34.7 million
FY18 Retro $41.4 million
FY 19 Projected $48.8 million
Grand Total $148.9 million
Because of the duration of the retroactivity and the details of the contract negotiations, final totals will not be available until programming is completed.
May 8,2018
the staff of the Ridgewood blog
Trenton NJ, Attorney General Gurbir S. Grewal announced that a prominent Ocean County attorney who hosted a radio show and taught seminars on elder law was indicted today on charges that he stole approximately $1.9 million from elderly clients. The victims generally did not have close relatives to guard their interests and in some cases suffered from dementia.
The Division of Criminal Justice Financial & Computer Crimes Bureau obtained a 10-count state grand jury indictment charging Robert Novy, 66, of Brick, N.J., with the following crimes:
Theft by Unlawful Taking (2nd Degree – Two Counts)
Misapplication of Entrusted Property (2nd Degree – Three Counts)
Theft by Deception (2nd Degree – One Count)
Money Laundering (1st Degree – Two Counts)
Money Laundering (2nd Degree – Two Counts)
The charges are the result of an ongoing investigation by the Division of Criminal Justice Financial & Computer Crimes Bureau, assisted by the New Jersey Division of Taxation Office of Criminal Investigation. The case was referred to the Division of Criminal Justice by Ocean County Surrogate Jeffrey W. Moran. Novy also was investigated by the New Jersey Office of Attorney Ethics, which issued an ethics complaint against him on Jan. 26, 2016, and assisted the Division of Criminal Justice.
As an expert in elder law, Novy hosted a bi-monthly radio program “Inside the Law,” which focused on topics of concern to senior citizens. He was arrested on Oct. 18, 2016. Detectives executed a search warrant at his firm, Novy & Associates, on Ridgeway Avenue in Manchester, seizing billing records and other evidence. The Attorney General’s Office obtained court orders freezing over $3.5 million in assets held by Novy and his firm and appointing a trustee to oversee the firm’s business operations.
“Novy allegedly stole nearly $2 million from vulnerable clients, preying on seniors who were frail and isolated and who trusted him as their attorney to guard their life savings,” said Attorney General Grewal. “It is hard to imagine a more callous personal and professional betrayal.”
“We allege that Novy systematically drained his clients’ assets, laundering funds through various bank accounts and charging unauthorized fees to enrich himself and his firm,” said Director Elie Honig of the Division of Criminal Justice. “We urge anyone with relevant information about Novy and his handling of client funds to contact our office.”
The indictment alleges that from 2009 through 2016, Novy stole approximately $1.9 million from six elderly clients. The investigation is ongoing, and the Division of Criminal Justice is looking at numerous additional suspicious financial transactions involving funds of other clients of Novy.
The investigation revealed that Novy allegedly stole funds from elderly and deceased clients who often did not have a close relative to claim their estate or challenge Novy’s actions. He allegedly used the stolen funds for his own benefit, paying personal and business expenses. Novy gained control through wills, powers of attorney, and trust documents, making himself the sole financial decision-maker for the clients. When clients had sizeable assets in the form of an annuity or life insurance policy, Novy allegedly directed insurance companies to redeem the policies and send the money directly to him. In some cases, when challenged by trustees or relatives about particular funds that had been withdrawn from client accounts, Novy claimed they were “administrative errors” and repaid the funds.
The indictment alleges that Novy engaged in three different schemes by which he stole funds from the six clients:
In one scheme, Novy is alleged to have simply transferred funds from his clients’ personal bank accounts or from his clients’ liquidated personal assets into his own bank account. Novy allegedly stole $322,342 from four of the six victims through this criminal scheme.
In the second scheme, Novy allegedly transferred funds from his clients’ personal accounts or liquidated assets into IOLTA (Interest on Lawyer Trust Account) sub-accounts that he controlled. The powers of attorney executed by the victims legally required Novy to place their assets into independent trust funds selected by the victims that would manage their assets, so the act of placing the funds into accounts that he controlled constituted a theft by Novy. It is alleged that Novy stole $929,026 from three of the six victims through this criminal scheme.
In the third scheme, Novy allegedly transferred client funds from various accounts – including the clients’ personal accounts, the clients’ IOLTA sub-accounts, or the firm’s attorney trust account – into the firm’s operating and disbursement accounts. Novy allegedly excessively billed the clients for power of attorney fees without any supporting invoices. Novy allegedly stole $659,457 from three of the six victims through this criminal scheme.
The money laundering counts allege that Novy engaged in transactions involving the stolen funds and the various accounts – primarily his attorney trust accounts and/or attorney business accounts – through which he concealed the source of the stolen funds and used them to promote his criminal activities.
Novy allegedly stole $1.9 million from the following six victims – all residents of Ocean County, N.J. – and/or their estates:
Brick Township woman who died in 2015 at age 88. Alleged theft: approximately $738,457.
Manchester Township woman who suffered from dementia and died in 2014 at age 87. Alleged theft: approximately $650,700.
Brick Township woman who suffered from Alzheimer’s disease and died in 2013 at age 85. Alleged theft: approximately $242,305.
Manchester Township woman who currently is 98. Alleged theft: approximately $130,000.
Point Pleasant woman who suffered from dementia and died in 2015 at age 87. Alleged theft: approximately $103,843.
Waretown woman who died in 2013 at age 85 (and her husband who died in 2011 at age 92). Alleged theft: approximately $45,520.
The indictment was handed up to Superior Court Judge Mary C. Jacobson in Mercer County, who assigned the case to Ocean County, where Novy will be ordered to appear in court at a later date for arraignment.
file photo by Boyd Loving
May 3,2018
the staff of the Ridgewood blog
Trenton NJ, With New Jersey’s legislature weighing new tax hikes during budget season, the New Jersey Business & Industry Association released an analysis today that finds the Garden State already ranked last in the region for business climate competitiveness.
“This analysis should serve as an opportunity to reclaim our competitiveness and to improve the state’s economy through comprehensive planning, not excessive taxation,” said NJBIA President and CEO Michele Siekerka. “There is no better time than now to recognize the growing challenges of doing business in New Jersey and our competitive disadvantage with neighboring states.”
NJBIA tracked six individual business costs—minimum wage rate, top income tax rate, top corporate tax rate, sales tax rate, property taxes as a percentage of home value, and the top unemployment tax rate – and compared New Jersey’s rates with those of Connecticut, Delaware, Maryland, Massachusetts, New York and Pennsylvania.
Applying a scoring system to the most and least competitive regional rates, New Jersey finished last of the seven states by a considerable margin.
New Jersey currently ranks last out of all states in the region in top income tax rate (8.97 percent), sales tax rate (6.625 percent) and property tax paid as a percentage of home value (2.16 percent). New Jersey is also sixth out of seven states in top corporate tax rate (9 percent). The Garden State has the third lowest minimum wage rate in the region at $8.60 per hour and, more positively, has the lowest top unemployment tax rate in the region of 5.8 percent.
However, it’s foreseeable that New Jersey’s overall regional business climate could further decline with discussions of a minimum wage increase to $15 per hour, proposals to raise the top income tax rate for those making more than $1 million, and consideration of a Corporate Business Tax increase. These are in addition to the added costs brought on by the mandatory paid sick leave bill signed into law and the proposed sales tax increase to 7 percent.
“It’s important to recognize that New Jersey businesses are already paying their fair share when it comes to tax rates and the additional cumulative costs that are being discussed and proposed could result in stagnation of our businesses, reduced staffing and hours or automation, according to our members,” Siekerka said. “We need tax and regulatory reform to address structural deficits in our economy, such as public pension and health benefits costs, and school funding. We cannot tax our way out of these challenges.”
Using data compiled by NJBIA policy analyst Nicole Sandelier, NJBIA scored the regional rates from 1 (most competitive in the region) to 7 (least competitive). New Jersey’s cumulative regional business climate score was 31 after totaling the six rates. Delaware has the best regional score at 17, followed closely by Maryland at 20. Pennsylvania (23) and New York (24), New Jersey’s largest outmigration states, finished third and fourth, respectively.
