Doing something “swift and broad” will be far harder in light of the coming mass exodus of big dollar taxpayers caused by the double whammy of Herr Trump’s corporate tax hand outs (paid for by blue state property tax payers) combined with Murph’s soak-the-successful tax plan. The iceberg has been spotted, NJ is closing in on it fast and they are running out of other people’s money.
If New Jersey were a corporation it would have declared bankruptcy years ago. Murphy want to “tax the rich” to raise only a fraction of what the state needs to meet its obligations. The Republican tax plan beats him to the punch by removing the deduction for state and local taxes which are already unsustainably high. Things will only get worse as the wealthiest individuals start to leave the state in greater numbers and the mess will be left to the middle class to clean up.
So, about those union pension payments, can we cut a deal on them now or would you rather we default on them later?
![Operation_Safety_Net_1[1]](https://theridgewoodblog.net/wp-content/uploads/2017/12/facebook_d1cc917631922dbfd2d2_Operation_Safety_Net_11.jpg "Attorney General Porrino Announces Arrests of 79 Alleged Child Predators & Child Pornography Offenders in “Operation Safety Net”")
December 5,2017
the staff of the Ridgewood blog
Trenton NJ, Attorney General Christopher S. Porrino today announced arrests of 79 child predators and child pornography offenders in “Operation Safety Net,” a nine-month, multi-agency child protection initiative led by the New Jersey Regional Internet Crimes Against Children (ICAC) Task Force. Partnering agencies targeted sex offenders who exploited the internet and social media, making arrests in every New Jersey county and deploying, for the first time, a new van equipped as a mobile cyber forensics lab, as well as a new canine trained to sniff out electronic devices, to assist in execution of search warrants.
Those arrested in Operation Safety Net included 10 “hands-on” offenders, including child predators in California and Indiana who allegedly tried to have children transported interstate from New Jersey by adult traffickers so they could have sex with the children; four men in New Jersey who allegedly sought to lure children for sex; a camp counselor who allegedly sexually assaulted a girl, 14, under his supervision; a youth minister who allegedly sent lewd photos of himself to a young girl; and a man, 24, who allegedly used a phone app to record underage girls performing sex acts on themselves. Those arrested also included numerous defendants, ranging in age from 14 to 75, who allegedly amassed and/or distributed large collections of child pornography, including a Trenton police officer, a swimming coach, a piano teacher, an IT professional from Morris County who allegedly had over 138,000 files of suspected child pornography (possibly over one million), a mechanic from Mercer County who allegedly had over 10,000 files of child porn, and three brothers in Cumberland County who allegedly had nearly 5,000 files of child pornography.
The operation was conducted by the ICAC Task Force, which is led by the New Jersey State Police and includes the New Jersey Division of Criminal Justice (DCJ), U.S. Homeland Security Investigations (HSI), all 21 County Prosecutors’ Offices, and many other state, county and local law enforcement agencies. Attorney General Porrino made the announcement at the Hamilton Tech Center with DCJ Director Elie Honig, Acting State Police Superintendent Colonel Patrick Callahan, Supervisory Special Agent Craig Vanderhoff of HSI Human Trafficking/Child Exploitation Group, Mercer County Prosecutor Angelo Onofri, Atlantic County Prosecutor Damon Tyner and representatives of other participating agencies. The Division of Criminal Justice exhibited its new cyber forensics van, and the State Police showcased its new electronics detection dog, Mega, both of which contributed greatly to the success of Operation Safety Net.
“The men we arrested lurked in the shadows of the internet and social media, looking for opportunities to sexually assault young children or to view such unspeakable assaults by sharing child pornography,” said Attorney General Porrino. “We set up a wide safety net in this operation to snare these alleged predators and to protect children, which remains our highest priority. With our new mobile forensics lab and electronics-sniffing dog, we’re even better equipped to uncover the evidence that will keep these offenders behind bars, where they cannot threaten or further exploit vulnerable victims.”
“I want to thank all of the many agencies and individuals who participated in this massive, unprecedented and highly collaborative effort to protect our children and communities in New Jersey and elsewhere,” Porrino added.
“We charged 10 men with hands-on predatory conduct against children, including attempted interstate trafficking of children for sex, sexual assault, luring, sending obscene images to a child, or manufacturing child pornography,” said Attorney General Porrino. “These cases highlight the fact that viewing child pornography is part of a continuum of deviant behavior that often leads to or drives other sex crimes.”
“The charges against Castillo reveal a dangerous child predator who went to great lengths in the belief that he was flying two very young girls to California so he could sexually assault them,” said Attorney General Porrino. “Had we not arrested him with our federal and California partners, the allegations indicate he would have continued to seek victims, including children as young as toddlers.”
“We’ve made these proactive child protection investigations a top priority by adding more staff for them at the state level and considerable new resources, including the mobile forensics lab and electronics detection dog,” said Director Elie Honig of the Division of Criminal Justice. “There’s no question that by collaborating across all levels of law enforcement and arresting these offenders, we protected innocent children who might otherwise have been sexually abused and exploited. We’ve also ensured that all these men who victimized children – or re-victimized them by viewing child pornography – will face justice.”
“The individuals who share this horrific material will not stop unless they are apprehended and removed from the public,” said Colonel Patrick Callahan, Acting Superintendent of the New Jersey State Police. “The nine-month investigation conducted by the New Jersey Regional Internet Crimes Against Children Task Force and partnering agencies has ensured that children throughout the country will not fall victim to the actions of these depraved individuals. These arrests should put anyone looking to engage in this behavior on notice that law enforcement will be relentless in our efforts to put them behind bars.”
In addition to investigating numerous cyber tips from the National Center for Missing and Exploited Children, the ICAC Task Force in Operation Safety Net conducted proactive investigations to apprehend offenders by monitoring peer-to-peer file-sharing networks and identifying the IP addresses of individuals sharing child pornography. Detectives also conducted undercover chat investigations on social media platforms, which led to arrests of alleged hands-on offenders and defendants attempting to lure children.
Two proactive investigations initiated by the New Jersey State Police extended beyond New Jersey’s borders – with assistance from other state and federal authorities – to apprehend defendants charged with allegedly attempting to arrange the interstate trafficking of young children for sex:
George Castillo, 36, of Inglewood, Calif., faces federal charges of transportation of a minor with intent to engage in criminal sexual activity and production of child pornography, as well as New Jersey charges including first-degree conspiracy to commit child trafficking. Castillo allegedly solicited an undercover New Jersey State Police detective – who pretended to be trafficking children – to fly a 4-year-old girl to Los Angeles so he could sexually assault her. He also allegedly solicited an undercover police detective in Washington, D.C., who posed as a father, to bring his “daughter,” 9, to Los Angeles for sex at the same time the undercover from New Jersey was expected to arrive with the other girl. He was arrested on April 4 at Los Angeles International Airport when he arrived to meet the girls and their adult escorts. The charges stem from investigations by the New Jersey State Police, New Jersey Division of Criminal Justice, U.S. Attorney’s Office for the District of Columbia, Metropolitan Police Department/FBI Child Exploitation Task Force in Washington, D.C., and, in Los Angeles, the U.S. Attorney’s Office for the Central District of California, U.S. Homeland Security Investigations, LAX Task Force, and Los Angeles Police Department. The undercover investigators identified Castillo in separate investigations targeting pedophiles using the internet and social media.
Joseph Donohew, 26, of Brownsburg, Indiana, is charged in Indiana with attempted child molestation. He allegedly offered money to an undercover New Jersey State Police detective, whom he met on an instant messaging platform, to have sex with a 9-year-old girl. The undercover represented that he had a daughter, 9, and Donohew allegedly sent him $100 as a down payment to bring the girl to Indiana for sex. Donohew was arrested on July 13 at a gas station in Indiana, where he allegedly was to meet the father and girl. He had purchased a nightgown for the girl depicting characters from a Disney movie he believed was her favorite. The New Jersey State Police worked with the FBI, Brownsburg Police Department, Indiana State Police and Hendricks County Prosecutor’s Office in Indiana.
Eight other defendants were arrested in New Jersey in Operation Safety Net on charges related to various types of alleged “hands-on” conduct, including sexual assault, luring a child, conveying obscene materials to a child, and manufacturing child pornography:
William Esker, 22, of Bayonne, N.J., was charged on Sept. 7 by the Hudson County Prosecutor’s Office with aggravated criminal sexual contact for allegedly engaging in sexual conduct with a girl, 14, over whom he had direct supervision as a camp counselor. He also is charged with providing obscene material to a child and endangering the welfare of a child.
Donald Beckwith, 34, of Browns Mills, N.J., is charged in Delaware with sexual solicitation of a minor and attempt to commit unlawful sexual contact with a minor. Beckwith, a captain in the Air Force stationed in New Jersey, met a girl, 14, through an online chat group for children and allegedly engaged her in sexual conversations, ultimately asking her to meet him in person. He allegedly met the girl twice in Delaware. The first time, he allegedly reached under her shirt and tried to touch her breast, and the second time he allegedly hugged her and repeatedly asked her to lie on a bed in the back of his vehicle and watch a movie with him. The New Jersey State Police arrested Beckwith on Aug. 16 in an investigation initiated by the Delaware State Police. Detectives allegedly found over 10 nude images of an underage girl on his phone.
Michael DeBlock, 22, of Hopatcong, N.J., a youth minister, was arrested on Oct. 10 and charged by the Sussex County Prosecutor’s Office with possession of child pornography and conveying obscene materials to a child. DeBlock allegedly exchanged sexual photos and texts with a girl, 14, including a photo of his penis.
Brandon Morris, 24, of Hammonton, N.J., was arrested on Oct. 17 and charged by the Atlantic County Prosecutor’s Office with manufacturing child pornography, endangering the welfare of a child by sexual conduct, conveying obscene materials to a child, and possession of child pornography. Morris allegedly engaged multiple underage girls in conversations on FaceTime, instructing them to perform sexual acts on themselves, which he recorded.
A 17-year-old student from Bergen County, whose name is not being released due to his juvenile status, was arrested on Aug. 17 and charged by the Bergen County Prosecutor’s Office with manufacturing, distributing and possessing child pornography, as well as invasion of privacy. The juvenile allegedly had over 1,000 files of suspected child pornography on his electronic devices, including video recordings he allegedly made by hiding his smartphone in a private bathroom in order to record underage boys who were nude, showering or urinating.
Craig Kirschner, 39, of Marlboro, N.J., was arrested on Aug. 21 and charged by the Hudson County Prosecutor’s Office with luring a child, attempted sexual assault of a minor, and conveying obscene material to a minor. Kirschner allegedly solicited an undercover detective, whom he believed to be a 15-year-old male, to meet for oral sex. The detective was monitoring a mobile app when he encountered Kirschner. After the undercover detective identified himself as a 15-year-old boy, Kirschner allegedly sent him photos of an erect penis, asked him to meet for oral sex, and stated “I can be generous for your trouble.”
Isaac Toney, 40, of Trenton, N.J., was arrested on July 17 by the New Jersey State Police and charged with luring a child. He allegedly used a mobile app to solicit an undercover detective, whom he believed was a 14-year-old male, for oral sex. He was arrested at Veterans Park in Hamilton, Mercer County, where he allegedly was to meet the “boy” for a sexual encounter.
Robert Elmi, 63, of Gillette, N.J., was arrested by the New Jersey State Police on Nov. 9 on a charge of luring a child. Elmi had placed an ad on Craigslist soliciting a relationship with a younger female. An undercover State Police detective responded, posing as a young girl and indicating to Elmi that she was 13. Elmi allegedly communicated with the “13-year-old” for several weeks by text and email, ultimately arranging to meet her at a diner. He allegedly told the “girl” he would take her back to his apartment, where they would drink, watch TV, kiss and perform oral sex on each other. Elmi was arrested by the State Police at the diner.
Forty-one defendants are charged with second-degree distribution of child pornography, which carries a sentence of five to 10 years in prison, and 66 defendants are charged with third-degree possession of child pornography, which carries a sentence of three to five years in prison. Out of the 41 charged with distribution, six are charged with distributing 25 items or more, and therefore are subject, if convicted, to a mandatory minimum sentence of five years in prison under the strict child pornography law signed by Governor Christie in August 2013. Out of the 66 defendants charged with possession, 25 are charged with possession of 100 or more items and are subject to a presumption of imprisonment under that law, even if they have no prior criminal record. More of the defendants may face those enhanced charges and penalties once full forensic examinations of their computers and electronic devices are completed.
On July 21, 2017, Governor Christie signed a new law which will take effect Feb. 1, 2018 and will further enhance penalties for possession and distribution of child pornography. The new law expanded the definition of child pornography to include child erotica. In addition, the new law makes it a first-degree crime to distribute 1,000 or more items depicting the sexual exploitation of a child, with a mandatory parole ineligibility period of one-third to one-half of the sentence imposed. The new law also makes it a first degree crime to possess 100,000 or more items of child pornography, and a second-degree crime to possess anywhere between 1,000 and 99,999. Under the new law, videos depicting the sexual exploitation of a child will count more heavily than still images, each counting for 10 images.
Eleven defendants arrested in Operation Safety Net would qualify as second-degree “super-possessors” under the new law to go into effect in 2018. Because it was not in effect when they were arrested, they cannot be charged under the tough new law, but these 11 arrests illustrate how offenders routinely amass huge collections of child pornography, which soon will make them subject to the enhanced penalties:
William Camargo, 48, of Millington, N.J., an IT professional , allegedly had more than 138,000 files of suspected child pornography, and possibly more than one million files (determination awaiting full forensic examinations of computer equipment);
Callen Kapschock, 55, of Hamilton, Mercer County, N.J., a mechanic, allegedly had more than 10,000 files of suspected child pornography;
Md F. Uddin, 43, of Elizabeth, N.J., an engineer, allegedly had more than 5,000 files of suspected child pornography;
Kody Knotts, 22, of Millville, N.J., along with his two brothers immediately below, allegedly had a combined total of nearly 5,000 files of suspected child pornography;
Alexander Knotts, 27, of Millville, N.J.;
Kyle Knotts, 23, of Millville, N.J.;
Laurence Duque, 42, of Dayton, N.J., allegedly had over 4,000 files of suspected child pornography;
Gregory Piszczek, 35, of Woodbridge, N.J., an IT professional, allegedly had over 4,000 files of suspected child pornography;
Kevin Groeger, 63, of Cranford, N.J., a postal worker, allegedly had over 2,000 files of suspected child pornography;
Pasquale “Charles” Albano, 75, of Point Pleasant, N.J., allegedly had over 1,000 files of suspected child pornography; and
Juvenile Male, 17, referenced above, allegedly had over 1,000 files of suspected child pornography.
Operation Safety Net made extensive use of two key new tools: an electronics detection canine and a mobile forensics van. Both contributed greatly to the success of the operation. As electronic devices become smaller and easier to hide, the importance of dogs trained to detect them increases. There are thumb drives available that are hidden in or disguised as cuff links, bracelets, LEGO blocks, coins and other everyday items. Throughout the operation, the canine was used at State Police and Division of Criminal Justice (DCJ) search warrant scenes. The canine was used for a preliminary walk-through and would identify devices and loose electronic storage media not in plain view. The detectives would then thoroughly search the area where that evidence was found to ensure all digital evidence was recovered.
Rapid triage of computers at search sites – also called forensic previewing – is a critical component of child pornography investigations. Such forensic previewing can result in the immediate arrest of individuals who otherwise might be left to continue direct illicit sexual contact with minors, preventing further abuse of victims. The previewing of computers at search sites has often had to occur in close proximity to the alleged perpetrator and often in potentially dangerous environments. As an example, in the last operation, two DCJ detectives were hospitalized after the suspect at the search warrant scene attempted to gain control of one detective’s handgun, resulting in a dangerous struggle. To maintain the integrity of the evidence gathering process, it is important for the forensic examiner to have the proper equipment to work with and the proper environment to work in. For these reasons, DCJ purchased a customized van, equipped with the appropriate desks and electrical and other equipment, which is used on-site for the forensic previewing of computers and computer-related equipment. This van enabled detectives in Operation Safety Net to safely examine suspected devices within the van and conduct more extensive previews at the scene, increasing the number of charges carrying enhanced penalties.
The following 58 additional men were arrested in Operation Safety Net on charges of possession and/or distribution of child pornography:
Paul Marinelli, 52, of South Brunswick, N.J., a Trenton police officer, charged with possession of child pornography.
James Cutrone, 54, of Hazlet, N.J., a youth swim coach, charged with distribution of child pornography.
Bryan San Andreas, 37, of Toms River, N.J., a piano teacher, charged with possession of child pornography.
John Parsons, 50, of Vineland, N.J., charged with possession of child pornography.
Donald Williams, 39, of Camden, N.J., charged with distribution of child pornography.
Kevin Wenng, 35, of Cliffwood Beach, N.J., charged with possession of child pornography.
Victor Kurynow, 58, of Bedminster, N.J., charged with attempted possession of child pornography and conveying obscene materials to a minor.
Paul Fuhs, 44, of Laurel Springs, N.J., charged with possession of child pornography.
Ryan Stemetzki, 26, of Maple Shade, N.J., charged with possession and distribution of child pornography.
Robert Ruff, 56, of Delran, N.J., charged with possession of child pornography.
Robert King, 63, of North Wildwood, N.J., charged with possession and distribution of child pornography.
Jason Locke, 42, of Manchester, N.J., charged with possession of child pornography.
Stephen Slawinski, 60, of Morris Plains, N.J., charged with possession and distribution of child pornography.
Herbert Ferreira, 43, of Dover, N.J., charged with possession and distribution of child pornography.
Joseph Maruca, 26, of Berkeley Township, N.J., charged with possession of child pornography.
James Gilbertson, 60, of Manchester, N.J., charged with possession of child pornography.
Christopher Todd, 49, of Lyndhurst, N.J., charged with possession and distribution of child pornography.
Alexis Gonzalez, 28, of Hackensack, N.J., charged with possession of child pornography.
Raul Rodriguez, 33, of Jersey City, N.J., charged with possession of child pornography.
Dhanendhran Govender, 32, of East Windsor, N.J., charged with possession and distribution of child pornography.
Luis Pacheco-Loja, 30, of Belleville, N.J., charged with possession and distribution of child pornography.
Robert White, 66, of Morristown, N.J., charged with possession and distribution of child pornography.
Jonathan Latiff 40, of Jersey City, N.J., charged with possession and distribution of child pornography.
Anthony Gerace, 43, of Egg Harbor Township, N.J., charged with distribution of child pornography.
Antonio Baang, 26, of Galloway Township, N.J., charged with possession of child pornography.
Richard Lake, 65, of Trenton, N.J., charged with possession and distribution of child pornography.
Federico Flores, 29, of Rahway, N.J., charged with possession and distribution of child pornography.
James Agin, 69, of Westwood, N.J., charged with possession and distribution of child pornography.
Fortino Rosales-Rodriguez, 22, of Oaklyn, N.J., charged with possession of child pornography.
Justin Saavedra, 22, of Clifton, N.J., charged with distribution of child pornography.
Daniel Braz, 39, of South River, N.J., charged with possession and distribution of child pornography.
Nelson Cintron, Jr., 54, of Collingswood, N.J., charged with possession and distribution of child pornography.
Michael Brown, 28, of Pennsauken, N.J., charged with possession and distribution of child pornography.
Erik Baez, 38, of Sicklerville, N.J., charged with possession and distribution of child pornography.
Larry Gonzalez, 45, of Elizabeth, N.J., charged with possession and distribution of child pornography.
Erik Johnson, 49, charged by Union County Prosecutor’s Office with possession and distribution of child pornography.
Marco Biason, 68, of Dover, N.J., charged with possession of child pornography.
Brian Neilson, 55, of Metuchen, N.J., charged with possession of child pornography.
Thomas Smith, 54, of Woodstown, N.J., charged with possession and distribution of child pornography.
Zachary Brawer, 31, of Paramus, N.J., charged with possession and distribution of child pornography.
Brian J. Gardner, 74, of Nutley, N.J., charged with possession and distribution of child pornography.
John T. Ruffner, 37, of Lumberton, N.J., charged with possession of child pornography.
John Skubiak, 62, of Deptford, N.J., charged with possession and distribution of child pornography.
Nicholas J. Novak, 66, of Ocean Township, Monmouth County, N.J., charged with possession and distribution of child pornography.
Eric MacAfee, 41, of Seaside Heights, N.J., charged with possession of child pornography.
Jeison Padilla, 29, of Somerville, N.J., charged with possession of child pornography and conveying obscene materials to a minor.
Justin England, 31, of North Plainfield, N.J., charged with possession and distribution of child pornography.
Eric Yourish, 61, of North Plainfield, N.J., charged with possession of child pornography.
Christopher Dunham, 22, of Rockaway, N.J., charged with possession and distribution of child pornography.
Justin Piccola, 23, of Randolph, N.J., charged with possession and distribution of child pornography.
Nicolas Bencze, 36, of Maywood, N.J., charged with possession and distribution of child pornography.
Michael Yosco, 70, of Garfield, N.J., charged with possession of child pornography.
Male Juvenile, age 14, of Bergen County, N.J., charged with possession of child pornography.
Julio Garcia, 29, of Bridgeton, N.J., charged with possession and distribution of child pornography.
Joseph Lawitz, 34, of Hamilton, Mercer County, N.J., charged with possession of child pornography.
James Livas, 22, of Hopatcong, N.J., charged with possession and distribution of child pornography.
Robert Fuscarino, 27, of Hopatcong, N.J., charged with possession and distribution of child pornography.
Donovan Roots, 19, of Pilesgrove, N.J., charged with possession and distribution of child pornography.
The charges against the defendants in Operation Safety Net are merely accusations and the defendants are presumed innocent until proven guilty.
December 1,2017
the staff of the Ridgewood blog
Here is the top ten states with the highest expenditures on public welfare. Note the enormous difference between California and New York and the rest of the country.
1. California – $103 Billion
2. New York – $61.4 Billion
3. Texas – $35.4 Billion
4. Florida – $27.2 Billion
5. Pennsylvania – $26.7 Billion
6. Illinois – $21 Billion
7. Ohio – $20 Billion
8. Massachusetts – $18.6 Billion
9. New Jersey – $17.3 Billion
10. Michigan – $16.3 Billion
Note that the top ten states listed above spend more on public welfare ($346.9B) than all of the bottom forty states (plus the District of Columbia) combined ($262.7B). Regardless of how populated any particular state is, you want to pay attention to these numbers because they foreshadow future budget problems. When you consider the fact that many states run operating deficits and have enormous debt problems, you begin to wonder if some of these numbers are sustainable for the long term.
file photo by Boyd Loving
November 29,2017
the staff of the Ridgewood blog
Ridgewood NJ, according to the Bergen Record ,Democratic Gov.-elect Phil Murphy said Tuesday that he is “confident” his proposal to increase taxes on New Jersey’s millionaires will go through, even as Democratic leaders in the Legislature have cooled on the idea in light of GOP tax plans being considered in Congress.
Murphy and his Democratic allies say that the bill would increase taxes on income over $1 million from a top rate of 8.97 percent to 10.75 percent. The Fantasy is that the new tax could generate up to $600 million for the state, which Murphy claims the state will use to increase funding for New Jersey’s public schools.
The are going to need it ,again according to the Bergen Record there will be $1.2 billion less revenue available next fiscal year than the current year. Specifically: $700 million in one-time revenues are in the current budget . The two largest being $300 million in legal settlements principally related to environmental claims and $321 million for sale of public broadcasting assets. And, the continued phase out of the estate tax, a decrease in the sales tax rate and exclusions/deductions in the income tax will result in $520 million less revenue from these sources.
The remaining tax base will yield $1 billion at best and that ‘s not sufficient to cover the lost revenue and address normal program growth. How to address this “squeeze” will be a challenge.
The current year or 2018 looks equally disturbing, the current budget has only a $409 million surplus that’s barely 1 percent of spending. There is no money in the Rainy Day Fund.
An none of this is taking into account greater outmigration according to Jordan Amin, a tax partner at EisnerAmper, “I think where some of these provisions that are affecting New Jersey harder than some other states — like the repeal of the state and local tax deductions — the incoming governor wants to increase the highest income tax rate in the state, currently 9 percent, to 10.75 percent, and I think that that may meet some opposition, now that some of the state taxes are not going to be deductible at the federal level. And we have all read about people supposedly fleeing New Jersey for other low-tax or no-tax jurisdictions, such as Florida. I think that there is some concern (the tax) … could cause a greater migration outward.”
November 27,2017
Murray Sabrin Professor of Finanace at Ramapo College
I sent the following letter to Tom Moran about his column. https://www.nj.com/opinion/index.ssf/2017/11/njs_millionaires_tax_hike_is_losing_support_moran.html
Your editorial today misses several points. If Murphy wants to spend more, then all New Jerseyans should pay higher taxes. Your support of his tax hike on upper income individuals and families is nothing less than “Willie Sutton” economics. In addition, I have been living in a Fort Lee 171 family co-op for ten years, about 25% of the shareholders leave for FL for half the year. They have been FL residents for many years, from what I gather. A higher top marginal rate will really accelerate the exodus.
Murphy’s tax and spending plan will face a fundamental economic reality, government spending does not boost an economy. Less regulations will make New Jersey more attractive to the business community as will lower marginal tax rates.
New Jersey should have one of the best state economies in the nation based on several factors. Instead, both Republicans and Democrats have implemented policies that in the final analysis have driven businesses out of the state in the 40 years I have been living here. In addition, New Jersey is far down on the list of companies that are looking to expand. The laws of economics and principles of finance cannot be overridden by statist politicians. In short, Murphy should check his premises about how an economy works.
November 27,2017
the staff of the Ridgewood blog
Ridgewood NJ, Murphy transition maintained a pretty low profile during Thanksgiving week, and the governor-elect himself made just one photo op feeding the down and out and less fortunate.
But there is plenty to be done behind the scenes: speeches to write, interviews to conduct, names to vet for jobs and Phil Murphy needs you to help out.
Phil Murphy rolled out his transition website, complete with a “Help Wanted ” sign and many job opportunities. Much like the official governor’s website, the transition site contains news and biography information for Murphy and his leadership team. But it was announced on Tuesday with a focus on finding people to fill out the functions of his administration.
“New Jersey’s greatest asset is its people,” Murphy said in a statement. “I call for all those interested in serving our administration to visit the Transition2018 website and submit their résumé for consideration. We will put an administration together that reflects New Jersey’s rich diversity of backgrounds and experiences, and we are committed to making those opportunities open to all.”
The website address is transition2018.nj.gov.
November 27,2017
the staff of the Ridgewood blog
Trenton NJ, according to Michael Lilley in the article New Jersey Public Unions, Ascendant https://www.city-journal.org/html/new-jersey-public-unions-ascendant-15568.html ,
“New Jersey’s public-pension system currently holds less than 38 percent of what the state owes its retirees, which amounts to a $135 billion shortfall. Adding to this unfunded liability, the state also owes retirees $67 billion for future health-care payments, and has set aside no money for that obligation. That’s a combined tab of $202 billion. The entire state budget, by contrast, is $35 billion. To fund its obligations properly, the state would have to put aside $4.8 billion a year, or almost 15 percent of the budget; those costs are expected to grow to $11.3 billion by 2027. Unreformed, the cost of these benefits is unsustainable. During his campaign, Murphy promised to fix the pension system by fully funding it, though he wouldn’t give specifics.”
A very ugly reality for the governor elect , but even uglier for taxpayers is the fact that ,” Murphy’s problem, however, is that his biggest allies, especially the teachers’ union, contributed mightily to the pension mess over the years by winning plush benefits, acquiescing to accounting gimmicks that made the system look well-funded, and fighting against cost-saving reforms. Murphy has already proposed $1.3 billion in new taxes, and without making the changes to the pension system that the unions oppose, the state’s taxpayers face years of additional tax increases and spending cuts to pay the pension bill.”
Lilley goes on , “Murphy’s pledge helped win endorsements from the NJEA and other public-sector unions. By law, public school teachers must join the NJEA or, if they decline, pay a so-called agency fee to the union representing 85 percent of dues. The money is deducted from their paychecks, which are largely funded by local property taxes. Last year, the NJEA took in over $120 million in union dues and agency fees. Since 1994, the union has collected $1.85 billion, and it has invested much of this money in New Jersey politics: since 1994, the NJEA has spent $874 million on political activities, or about 56 percent of its annual operational expenditures, an average of $38 million a year.”
A beholden bought ad paid for politician and a massive pension short fall can mean only one thing ,massive new taxes .
Ridgewood NJ, both former Mayor Paul Aronsohn and Ron Simincini were selected for the Murphy transition team.
Aronsohn in Human and Children Services and Simincini in Housing .
November 21,2017
the staff of the Ridgewood blog
TRENTON NJ, Attorney Christopher S. Porrino announced that a retired police officer who formerly served as president and state delegate of New Jersey Policemen’s Benevolent Association (PBA) Local 59 in Cape May was sentenced today for embezzling large sums from the union over a period of five years. The state’s investigation revealed that he stole approximately $105,000.
John Campbell, 49, of Cape May, a retired Cape May police officer, was sentenced to six months of home detention under the county’s alternatives to incarceration program, including electronic monitoring with an ankle bracelet, and five years of probation by Superior Court Judge John Porto in Cape May County. He also was ordered to serve 300 hours of community service, pay a fine of $5,000 and provide full restitution to the union of $105,000, which was paid in full today. Campbell pleaded guilty on Aug. 10 to a charge of third-degree theft by unlawful taking. In pleading guilty, Campbell admitted that he stole tens of thousands of dollars from PBA Local 59 from 2012 through 2016, while serving as the state delegate for the union, by using the union’s checking account and a business American Express card to make unauthorized personal purchases, expenditures and withdrawals that were unrelated to union business.
Campbell was initially arrested on July 13 as a result of an investigation by the New Jersey State Police Official Corruption Bureau and the Division of Criminal Justice Corruption Bureau. Deputy Attorney General Brian Uzdavinis prosecuted the case and handled the sentencing for the Division of Criminal Justice Corruption Bureau, under the supervision of Bureau Chief Anthony Picione.
“Campbell was entrusted with access to the credit and checking accounts of his PBA local, but rather than living up to his duties as a police officer and leader of this union, he corruptly chose to embezzle over $100,000,” said Attorney General Porrino. “This was a crass betrayal by a man who took an oath to uphold the law.”
“We have zero tolerance for people who use their positions of trust to steal from the organizations and people they were appointed to serve,” said Director Elie Honig of the Division of Criminal Justice. “We will continue to work closely with the New Jersey State Police to investigate and prosecute corruption aggressively.”
“Campbell made the decision to betray the trust of not only his fellow law enforcement officers but also the community which should have benefited from the funds he absconded with,” said Colonel Patrick Callahan, Acting Superintendent of the New Jersey State Police. “The consequences of his actions should serve as reminder that no one should consider themselves above the law.”
While serving as the local PBA’s state delegate from 2012 through 2016, Campbell used credit and debit cards issued to him by the union, and paid for with union funds, for a variety of unauthorized personal expenses unrelated to union business, ranging from modest purchases at convenience stores and gas stations to more exorbitant purchases involving time shares and home improvements.
Campbell’s thefts came to light after a change in leadership of PBA Local 59 in July 2016, when an audit was conducted and suspicious credit and debit card charges were discovered. The information was referred to the Cape May County Prosecutor’s Office, which in turn referred the case to the Division of Criminal Justice and New Jersey State Police.
The investigation revealed that Campbell made more than $70,000 in unauthorized personal expenditures through the American Express account alone, including, for example:
over $30,000 for time shares in Florida, the Caribbean and Mexico;
over $16,000 for utilities and services, including gas, electric, telephone and TV services;
over $5,000 for clothing and jewelry purchases;
over $7,500 for purchases of electronics, furniture and cabinets;
approximately $5,000 on various convenience store and gas station purchases; and
a $500 designer Christmas tree.
He used the PBA debit card to make additional personal purchases and obtained approximately $9,700 for his personal use through debit and ATM withdrawals, as well as unauthorized checks.
Attorney General Porrino commended all of the members of the New Jersey State Police Official Corruption Bureau and Division of Criminal Justice Corruption Bureau who worked on the investigation.
As a result of the investigation, additional alleged thefts were discovered that led to a charge against a second official of PBA Local 59, former treasurer Kyle Grossman, 39, of Lower Township, N.J. Grossman, who also was a Cape May police officer, was charged by accusation on Oct. 12 with third-degree theft by unlawful taking for allegedly stealing approximately $5,000 in union funds for his personal use. He waived indictment on that date, agreed to pay $5,000 in restitution, and forfeited his job as a police officer. He was admitted by Judge Porto into the Pre-Trial Intervention program. The charge against him will be dismissed if he successfully completes the program. Grossman agreed to enter a consent order under which he will be permanently barred from public employment.
Attorney General Porrino and Director Honig noted that the Division of Criminal Justice has established a toll-free Corruption Tipline 1-866-TIPS-4CJ for the public to confidentially report corruption, financial crime and other illegal activities. The public also can log on to the Division’s web page at www.njdcj.org to report suspected wrongdoing confidentially.
November 20, 2017
Joseph Bishop-Henchman
Ridgewood NJ, New Jersey has long been the punching bag of state tax scholars. The state has the worst state business tax climate of the 50 states and the third highest overall state and local tax burden (behind only Connecticut and New York). Any New Jersey resident knows they pay the highest property taxes in the country, but other taxes are also high: income taxes (5th highest top rate), corporate taxes (6th highest in collections), sales taxes (16th highest in collections), cigarette taxes (10th highest), and gas taxes (8th highest) are all high, and New Jersey is currently one of two states with both an estate and an inheritance tax (the estate tax half is scheduled to be repealed in 2019, but we’ll see if the new Governor changes this). The state has more outbound net migration than any other. One bright spot: you can drink away your sorrows, with a mere 12-cent per gallon beer tax, lower than 40 other states.
The state and local tax deduction considerably reduces the sting of New Jersey’s tax bill, and it’s no coincidence that four of thirteen Republican nay votes on the House tax bill came from New Jersey representatives. New Jersey Senate President Steve Sweeney and newly elected Governor Phil Murphy, both Democrats, had pledged to make a higher income tax on millionaires a key early priority in 2018.
Now, however (Politico):
“We’re going to have to re-evaluate everything” if a federal bill repealing the state and local tax deduction becomes law, New Jersey Senate President Steve Sweeney said Wednesday in Atlantic City. Just days before, Sweeney had said he would make passage of a millionaires tax his chief priority in the new administration. “I’m just saying that what’s happening in Washington is concerning the hell out of me,” he added.
The changes to SALT are likely driving the reassessment. As ITEP, a group that promotes millionaires’ taxes, has explained, the state and local tax deduction “makes state income tax hikes a good deal,” since “income and property taxes are effectively less costly to state residents than are sales and excise taxes.” Take it away and New Jersey residents must pay full freight for their state and local governments. That may explain the seemingly contradictory rhetoric that millionaires taxes won’t affect the economy but eliminating the SALT deduction will be terrible.
If federal tax reform prompts New Jersey to overhaul its tax code, it’s long overdue. There are 244 townships, 265 boroughs, 49 cities, 15 towns, 3 villages, and 677 school districts. The three-member board running Tavistock, NJ, is a majority of the borough’s 5 inhabitants. A 1912 article recounted the history of New Jersey tax administration, which is a seemingly unending tale of bloated local government, corruption, and inequitable assessment. In the 1960s, railroad scholar George Hilton noted that the state’s practice of loading its property tax burden onto interstate commerce had ruined the viability of every railroad crossing the state. A 2003 state report dryly observed that state revenues had grown 1,700 percent since 1970, compared to population growth of 19 percent and inflation growth of 483 percent. The state adopted a sales tax in 1966 and an income tax in 1976, both with promises that they would be used to reduce crushing property tax burdens. Today New Jersey still has the nation’s highest property taxes, but with high income and sales taxes as well. It’s probably time for a rethink.
November 19,2017
the staff of the Ridgewood blog
Trenton NJ,Attorney General Christopher S. Porrino announced today that New Jersey has filed an amended consumer fraud and false claims complaint against Insys Therapeutics, Inc. – maker of the powerful opioid-fentanyl drug Subsys – that adds as a defendant John N. Kapoor, billionaire founder of the company.
Insys and Kapoor are accused in the State’s complaint of endangering the public through a greed-driven, unlawful marketing campaign designed to exponentially increase sales of Subsys by making fraudulent claims and unlawfully incentivizing health care providers to prescribe Subsys to an inappropriately broad array of pain patients.
Subsys is only approved by the federal Food and Drug Administration (FDA) for treating breakthrough cancer pain in opioid-tolerant cancer patients.
Filed in Superior Court in Middlesex County, the State’s amended complaint notes that Kapoor not only founded Insys and is its principal shareholder, but also held executive management positions in the company including Executive Chairman of the Board of Directors, President and Chief Executive Officer.
Kapoor’s public claims that he was “not involved in day-to-day operations” concerning Subsys and that he was merely “an investor” in the company are contradicted by documentary evidence, the State’s amended lawsuit notes. The complaint charges that, in reality, Kapoor exercised “firm direction” and “close management” of the illegal push to have Subsys inappropriately – and dangerously – prescribed for patients with routine chronic pain.
“This individual (Kapoor) founded Insys and for all intents and purposes ran the company. We reject the suggestion that he had only a hands-off, observer’s role in the process of illegally expanding the off-label prescription market for his company’s flagship drug Subsys. And, as our amended complaint filed today makes plain, we believe that available evidence suggests otherwise,” Porrino said. “We allege that Mr. Kapoor was firmly at the controls as Insys coldly set aside any concerns about addiction and death, and forged full-steam ahead with a campaign to have more doctors prescribe Subsys to more patients, and to have doctors who were already prescribing the drug prescribe higher doses. Naming him as a direct defendant credits his alleged role in a calculated scheme to drive profits at the expense of human life, and allows us to look beyond the corporate veil and obtain a judgment against Mr. Kapoor and his personal assets.”
Among other things, the State’s amended complaint alleges that the greed of Kapoor and Insys put “hundreds” of lives in jeopardy and “led to the death of at least one New Jersey resident” – a 32-year-old Camden County woman who was prescribed Subsys for fibromyalgia. In addition, the suit notes that two New Jersey state employee health benefits plans paid a total of approximately $10.3 million to reimburse Subsys prescriptions between 2012 and the third-quarter of 2016, while the State Worker’s Compensation Program paid another $300,000.
The lawsuit includes three counts alleging violations of New Jersey’s Consumer Fraud Act and one count alleging violations of the New Jersey False Claims Act. The suit asks that Insys and Kapoor be assessed maximum civil penalties for each violation of the Consumer Fraud Act, and seeks three times the State’s actual damages for violations of the False Claims Act, per that statute. The suit also seeks to have Insys and Kapoor held responsible for costs and fees incurred by the State in bringing the case.
From the 2012 market launch of Subsys until the present, the drug has accounted for approximately 98 percent of net revenues for Insys, a Delaware corporation with headquarters in Chandler, AZ. Insys, which has raised the price of Subsys every year since its launch, sold $74.2 million worth of the drug in New Jersey between 2012 and the third-quarter of 2016.
The State’s complaint alleges that Insys’s corporate decision-makers – led by Kapoor – devised a strategy to expand what they recognized as a limited market for Subsys by aggressively pushing “off label” uses of the drug – even to podiatrists and other specialty practitioners who typically would have little call to treat cancer patients or prescribe powerful Schedule II painkillers. (Off-label use denotes use of a drug for purposes other than that for which it was approved by the FDA.)
photo Congressman Bill Pascrell, Jr.,Senator Bob Menendez, Nellie Pou, and Jose “Joey” Torres.
November 15,2017
the staff of the Ridgewood blog
Paterson NJ, Attorney General Christopher S. Porrino announced that Jose “Joey” Torres, the former mayor of Paterson, N.J, was sentenced to prison today for directing that city employees perform work at a private warehouse leased by his daughter and nephew while the employees were being paid by the city. Three former supervisors in the Paterson Department of Public Works also were sentenced today.
Torres, 59, of Paterson, N.J., was sentenced today to five years in state prison by Superior Court Judge Sheila Venable in Hudson County. Torres pleaded guilty on Sept. 22 to a charge of second-degree conspiracy to commit official misconduct. As a result of his guilty plea, he forfeited his position as mayor and is permanently barred from public office and public employment in New Jersey. He is jointly and severally liable with his co-defendants for paying restitution of $10,000 to the City of Paterson for payments, including overtime payments, made to city workers for the time they spent working at the private warehouse.
The following three co-defendants pleaded guilty on Sept. 22 to third-degree conspiracy charges and each was sentenced today by Judge Venable to a three-year term of probation:
Joseph Mania, 51, of Randolph, N.J., Supervisor, Paterson DPW Facilities Division;
Imad Mowaswes, 53, of Clifton, N.J., Supervisor, Paterson DPW Traffic Division; and
Timothy Hanlon, 31, of Woodland Park, N.J., Assistant Supervisor, Paterson DPW Facilities Division.
Those men also forfeited their jobs with the city and are permanently barred from public employment.
Deputy Bureau Chief Jeffrey Manis and Deputy Attorneys General Cynthia Vazquez and Peter Baker prosecuted the case and handled the sentencing for the Division of Criminal Justice Corruption Bureau. The defendants were indicted in an investigation by the Division of Criminal Justice Corruption Bureau and the New Jersey State Police Official Corruption Bureau North Squad.
“Joey Torres corruptly used his vast power as mayor of New Jersey’s third-largest city to serve his own selfish ends, when he should have been serving the residents of Paterson,” said Attorney General Porrino. “Torres thought he was above the law and is now on his way to prison. This prison sentence demonstrates that nobody is above the law, least of all public officials who brazenly abuse the authority entrusted to them.”
“By unlawfully using on-the-clock city workers to assist with a family business, Mayor Torres put his own interests ahead of the interests of city residents and compromised the integrity of his office,” said Director Elie Honig of the Division of Criminal Justice. “Public corruption takes many forms, but it always has the corrosive impact of undermining good government and public trust. We will continue to make these cases a top priority.”
“Torres betrayed many staff and colleagues who unknowingly believed in him, but his betrayal of the residents of Paterson, whom he was entrusted to serve, is by far the worst of all,” said Colonel Patrick Callahan, Acting Superintendent of the New Jersey State Police. “I commend the State Police Official Corruption North Bureau and their partners for bringing justice to the people of Paterson.”
The investigation revealed that, at Mayor Torres’ behest and under his supervision, Mania, Mowaswes and Hanlon performed work and/or assigned subordinate employees of the Department of Public Works (DPW) to perform work at a private warehouse facility at 82 East 15th St. in Paterson. The facility was leased by “Quality Beer,” a limited liability company formed by Torres’ daughter and his nephew. The tasks performed by the DPW workers included renovation, painting, carpentry, and electrical work. The work was performed on various dates between July 2014 and April 2015, while the three supervisors and other DPW workers were “on the clock” working for and being paid by the City of Paterson. The daughter and nephew intended to use the warehouse as a wholesale liquor distribution facility, but they ultimately terminated the lease after failing to obtain the necessary permits and license from the state.
The investigation further revealed that Mania, in his capacity as a DPW supervisor, caused false time-keeping records to be submitted to the city, including overtime verification forms and bi-weekly timesheets. These records falsely stated that Mania and other DPW employees were working overtime details on legitimate city projects, when, in fact, Mania knew that he and the other employees spent at least part of these overtime shifts working at the private warehouse. By submitting and signing off on these timekeeping records and authorizing the overtime details, Mania caused the city to make overtime payments to himself and other employees for hours spent performing private work for the mayor and his relatives, with no connection to any legitimate city business. Mania’s co-defendants, including the mayor, also were charged with falsifying these records as accomplices and co-conspirators.
Murray Sabrin
Professor of Finance at Ramapo College
Regarding “State senate president plans to push tax bill,” (Nov. 9, page 1A). The people of New Jersey spoke loud and clear on election night. They want state government to spend more of their money. Not really their money, just upper income folks who make up a small percentage of the population. And they want Trenton to expand its already overbearing micromanagement of the economy.
Senate president Stephen Sweeney announced that he will put a “millionaire’s tax” on the front burner when the legislature convenes after Governor-elect Phil Murphy takes office in January.
Raising taxes on millionaires is another example of why government is like Willie Sutton, the notorious bank robber who was asked why he robbed banks, he replied, “That’s where the money is.” Phil Murphy and Democrats are legal versions of Willie Sutton.
Higher taxes on upper income taxpayers will cause any out of state high-income individual, business owner, or corporate executive to think twice about relocating to New Jersey. In other words, we will never how many upper income folks will not move to New Jersey because of the highest marginal taxes Murphy is so hot to increase. In addition, how many people and businesses will leave New Jersey because of higher income taxes? We will soon find out.
The proposed tax increases on millionaires will eventually hit middle-income families, because that is how big government proponents operate—tax the smallest number of families first, then go after where the big bucks are, the middle class.
As H.L. Mencken remarked decades ago, “Democracy is the theory that the common people know what they want, and deserve to get it good and hard. “
November 10,2017
the staff of the Ridgewood blog
Ridgewood NJ, Following Democrat Phil Murphy’s victory in New Jersey’s gubernatorial election on Tuesday, marijuana legalization in the state could very quickly become a reality. The incoming governor, made cannabis legalization a key part of his campaign platform. Murphy has promised to legalize pot for Garden State stoners aged 21 and older within his first 100 days in office, with an eye on raking in an estimated $300 million a year in taxes.
Murphy’s “Pot” proposal would legalize the recreational use of marijuana across the state. Democrats now have full control of the state’s legislature, and are making the issue a key part of their agenda going into 2018. New Jersey Senate President Steven Sweeney told the Washington Examiner this week that he is confident that a marijuana legalization bill will be signed into law before April.
If New Jersey legalize the recreational use of marijuana it would become the ninth state in the country to legalize the recreational use of marijuana, and the first to do so through legislation instead of a ballot initiative.
Even though a New Jersey marijuana legalization bill could be signed into law in the first few months of 2018, it would still take a while to go into effect. Legal experts claim it could take up to 18 months after the bill passes before adults 21 and older could start consuming cannabis legally.
