Several states, including Republican states, have decided to raise taxes this year to cover budget shortfalls. But a new study suggests that the states might find themselves in worse financial shape after the money starts rolling in.
According to the latest ranking of states by the Mercatus Center at George Mason University, the most fiscally sound states in the nation are all low-tax, GOP strongholds, while the 10 least-solvent states are almost all high-tax and heavily Democratic.
The rankings in the fourth-annual “Ranking of the States by Fiscal Condition” report, which was released this morning, are based on a review of audited financial statements for 2015 covering five measures that gauge the states’ ability to pay bills, avoid budget deficits, and meet long-term spending needs and cover pension liabilities.
Cash solvency, for example, measures a state’s ability to pay immediate bills. Budget solvency focuses on whether states will end the year with a surplus or deficit. Service-level solvency gauges a state’s ability to meet a demand for increased spending. Long-run solvency looks at a state’s ability to meet longer-term spending commitments. Trust-fund solvency looks at the states’ unfunded pension liabilities and state debt.
There were several changes in the rankings from last year. Florida moved from sixth place to first, while Alaska dropped from first place last year to 17th this year, driven mainly by the fall in oil prices. Idaho moved into the top 10.
At the bottom of the heap, Louisiana and West Virginia both dropped down in the 10-worst list, while Hawaii greatly improved, going from 45th place last year 27th this year. Connecticut, Maine and New York also climbed out of the bottom 10 list. But New Jersey fell to dead last from last year’s 48th place.
The report also includes rankings for each individual measure of fiscal solvency, in addition to the overall ranking. Some states do well on some measures, and bad on others. New Jersey, for example, is last on long-run solvency and second to last on budget solvency, but ranks 24 on service-level solvency.
Nearly bankrupt Illinois is in the bottom in all but one of the five individual measures — service-level solvency.
Trenton NJ,due to the state shut down government services such as state parks and Motor Vehicle Commission offices will be closed.
Today, Governor Chris Christie signed the following Executive Order:
Executive Order 228 – Declaring a state of emergency and maintaining that essential state government services continue operating for the people of New Jersey, as the failure of the Legislature to act on a Fiscal Year 2018 State Budget by tonight’s constitutional deadline forces the closure of state government.
“This order is necessary to maintain the protection, safety and well-being of the people of New Jersey while I attempt to convince the Legislature to send me a fiscally responsible budget that I can sign and re-open New Jersey’s government, ” said Governor Christie. “This was completely avoidable. But Assembly Speaker Vincent Prieto needlessly stalled the budget process, forcing the closure of New Jersey government and inconveniencing everyone living in and visiting our state.”
Included among the essential functions that will remain in operation: State Police, state correctional facilities, key child welfare services, state hospitals and treatment facilities, NJ TRANSIT, and operations linked to the health, safety, and welfare of the public, including certain environmental and health monitoring. The state closure also will NOT impact the State Lottery, casinos and racetracks. For details on non-essential services that will be closed as well as operations that will remain open, check the website of that department or agency.
Links to many major state agencies and a brief description of services impacted are provided below.
Department of Environmental Protection:All state parks, recreation areas, forests, and historic sites, including Island Beach State Park and Liberty State Park, will be closed; all public events within state parks and historic sites will be cancelled. The following will also be closed: permitting offices for Air, Historic Preservation, Land Use, Site Remediation, Solid Waste, and Water Supply; Green Acres and Blue Acres offices; Office of Dispute Resolution; Office of Permit Coordination; most of the Division of Fish & Wildlife (Wildlife Management Areas and on-line services will not be impacted); NJ Geologic Survey; and Rebuild by Design projects.
Department of Transportation: Construction will continue, as will emergency repairs and some roadside safety services. The rest areas on I-295 in Deepwater, Salem County and on I-80 in Knowlton, Warren County, will be closed.
New Jersey Motor Vehicle Commission: All MVC agencies and inspection stations will be closed. Online services will still be available.
Department of Law & Public Safety: Juvenile Justice Commission operations, State Medical Examiner Offices, and other public safety operations will continue, but some administrative offices will be closed.
Department of Health: The public will not be able to obtain copies of birth and marriage certificates, or copies of adoptees’ original birth certificates. No new certifications or renewals will be issued for EMTs, paramedics or Certified Nursing Assistants.
New Jersey Department of Labor:Unemployment Insurance and disability determination services will remain operational. Temporary Disability Insurance claims, Wage and Hour claims, and Family Leave Insurance claims may be filed, but they will not be processed. One Stop Career Centers (state not county services) will be closed; Workers Compensation Courts will be closed. Division of Vocational and Rehabilitation Services will be closed.
Department of Children and Families:Child abuse hotlines, protection services and response teams will continue to operate. Schools for children with special needs will remain open.
Department of Military and Veterans Affairs: Veteran’s Haven North and South will remain in operation and National Guard will remain on call.
Department of Banking and Insurance: All offices will be closed except the IURO (health insurance internal appeals program).
Department of Community Affairs:Inspections related to construction codes, fire safety, fairs and fireworks displays will continue, however some public services will not be available.
Department of Corrections: Prisons and halfway houses will remain operational, although some inmate services will be impacted.
Department of Education:Katzenbach School will remain open. Phone help desks, customer service, and all other related staff-based assistance functions will be unavailable and all core public functions will be closed.
Economic Development Authority: EDA will not process any payments to businesses from any program (such as the Business Employment Incentive Program) which funding source needs to be authorized by the FY 2018 Appropriations Act.
Department of State: The travel and tourism welcome centers will be closed.
Department of the Treasury: July 1 pension checks have been processed and mailed. Taxation call centers and walk-in facilities will be closed. The Division of Risk Management will be closed, however the scheduling of medical appointments, treatments and services for injured workers will remain ongoing. The Division of Pensions and Benefits will be closed, although it will continue payment of health provider claims and life claims, and continue to process changes to family status for health benefits.
Lakewood NJ, Ocean County Prosecutor Joseph D. Coronato and State Comptroller Philip James Degnan announced today the first of multiple ongoing arrests within Lakewood, New Jersey by the Ocean County Prosecutor’s Office for defrauding Medicaid and government assistance programs. The investigations initiated by the Federal Bureau of Investigation’s Red Bank Office and the New Jersey Office of the State Comptroller – Medicaid Fraud Division, were expanded to include the US Social Security Administration, New Jersey Department of the Treasury – Office of Criminal Investigation, and the Ocean County Prosecutor’s Office – Economic Crimes Unit. Today’s initial arrests include charges of collecting $1.3 million in illegal benefits.
Prosecutor Coronato stated, “Financial assistance programs are designed to alleviate family hardships for those truly in need. My office gave clear guidance and notice to the Lakewood community in 2015 of what is considered financial abuse of these programs. Those who choose to ignore those warnings by seeking to illegally profit on the backs of taxpayers will pay the punitive price of their actions.”
OCPO detectives/prosecutors, along with its collaborating agencies, began the first phase of the operation by arresting two married couples. Mordechai, 37, and Jocheved, 35, Breskin of Blue Jay Way in Lakewood, were arrested and charged with 2nd Degree Theft by Deception for wrongfully collecting approximately $585,662 in Medicaid, SNAP, HUD and SSI benefits between January 2009 thru December 2014. Zalmen, 39, and Tzipporah, 35, Sorotzkin of Olive Court collecting approximately $338,642 in Medicaid, SNAP, HUD and SSI benefits between January 2009 and April 2014. A Detention Hearing is scheduled for 1:30 pm today at Ocean County Superior Court.
The nature of the criminal events investigated and basic charges allege that the defendants misrepresented their income, declaring amounts that were low enough to receive the program’s benefits, when in fact their income was too high to qualify. The investigations revealed that the defendants’ received income from numerous sources that they failed to disclose on required program applications. As a result, they received benefits that they were not entitled to under these programs for themselves or family members.
“This operation highlights the success of federal, state and county cooperation in New Jersey’s effort to combat Medicaid and other government benefits fraud,” State Comptroller Degnan said. “My office will continue to ensure that only individuals and families truly in need of benefits receive them, and that those who choose to steal from New Jersey taxpayers are referred for prosecution.”
The Ocean County Prosecutors Office is prosecuting the above arrested individuals at the state level. The Federal Bureau of Investigations arrested four additional individuals as a part of its’ role in the comprehensive review of financial assistance programs. Information regarding the FBI facilitated arrests continues below:
Rachel Sorotzkin, 32, and Mordechai Sorotzkin, 35, are charged by complaint with one count of conspiring to steal government funds. Yocheved Nussbaum, 40, and Shimon Nussbaum, 42, also of Lakewood, are charged in a separate complaint with one count of conspiring to steal government funds. The Sorotzkins and the Nussbaums, all of Lakewood, are expected to make their appearances this afternoon before U.S. Magistrate Judge Douglas E. Arpert in Trenton federal court.
According to the complaints:
From 2011 through 2014, Rachel and Mordechai Sorotzkin applied for and received Medicaid health insurance benefits for themselves and their children. After being approved for Medicaid benefits in August of 2011, the Sorotzkins received significant windfalls – including a lump sum payment of $1 million from Rachel Sorotzkin’s business in April of 2013 – which they failed to report to Medicaid officials. Despite earning in excess of $1 million in each of the 2012 and 2013 calendar years, the Sorotzkins continued to use their Medicaid cards, ultimately defrauding the government of approximately $96,000 in taxpayer-funded medical care.
In a separate scheme, Yocheved and Shimon Nussbaum applied for and received public benefits for themselves and their children from 2011 through 2014, despite their significant income. In the years prior to and during the conspiracy, the Nussbaums created a variety of companies that were nominally run by relatives but were actually controlled by the Nussbaums.
They opened various bank accounts in the names of these companies and used funds from these accounts to cover personal expenses.
In applying for Medicaid, Section 8 housing, and SNAP food benefits, the Nussbaums grossly underreporting their true income by failing to include the income from these business accounts. Despite annual income of up to as high as approximately $1.8 million in 2013, the Nussbaums continued to receive taxpayer-funded health, housing and food benefits through August of 2014, ultimately defrauding the government of approximately $178,000.
The conspiracy counts each carry a maximum potential penalty of up to five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense.
Acting U.S. Attorney Fitzpatrick in his press release credited special agents with the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark; the Ocean County Prosecutor’s Office, under the direction of Ocean County Prosecutor Joseph D. Coronato; the New Jersey Office of the State Comptroller, under the direction of State Comptroller Philip James Degnan; the New Jersey Department of the Treasury – Office of Criminal Investigation; under the direction of Special Agent in Charge Charles Giblin; Social Security Administration – Office of the Inspector General, under the direction of Special Agent in Charge John Grasso; and criminal investigators of the U.S. Attorney’s Office with the investigation leading to today’s arrests.
The government is represented by Assistant U.S. Attorney Molly S. Lorber of the U.S. Attorney’s Office Criminal Division in Trenton.
The investigation by all the participating agencies is continuing and additional arrests are forthcoming. OCPO and our prosecuting partners may add additional relevant charges (ie. Tax charges) as each case proceeds through the legal process. Anyone with any information is asked to contact Sergeant Mark Malinowski of the Ocean County Prosecutor’s Office at (732) 929-2027.
The media and the public are reminded that criminal charges are only allegations and that each defendant is presumed innocent unless and until proven guilty in court. See Photos below courtesy the Ocean County Jail:
BRESKIN, MORTECHAI DOVID
BRESKIN, JOCHEVED ALIZA
SOROTZKIN, ZALMEN
SOROTZKIN, TZIPPORAH
Ocean County Prosecutors office announced on June 28th that, along with its collaborating agencies, continued Monday’s operation by arresting the following three married couples. Hearings are scheduled for 1:30 pm today (6/28) at Ocean County Superior Court.
Yitzchock, 33, and Sora, 39, Kanarek of Brisk Lane – charged with 2nd Degree Theft by Deception for wrongfully collecting approximately $339,002.56 in Medicaid, SNAP, HUD, and SSI benefits between January 2009 and July 2014.
Chaim, 40, and Liatt, 39, Ehrman of Twin Oaks Drive – charged with 2nd Degree Theft by Deception for wrongfully collecting approximately $185,692.22 in Medicaid, SNAP, HEAP, and Sandy benefits between January 2011 and December 2015
William, 45, and Faigy, 40, Friedman of Leigh Drive – charged with 2nd Degree Theft by Deception for wrongfully collecting approximately $149,842.28 in Medicaid, SNAP, HEAP, and HUDbenefits between January 2011 and December 2015.
The media and public are reminded that criminal charges are merely accusations and the defendant is presumed innocent until proven guilty. Follow the Office of the Ocean County Prosecutor online at Twitter and Facebook. The social media links provided are for reference only. The OCPO does not endorse any non-governmental websites, companies or applications. For additional information visit our website at www.oceancountyprosecutor.org. Please send all press inquiries to Al Della Fave 732-288-7616 (OFFICE) 732-814-7347 (CELL) and [email protected].
New Jersey’s next governor and Legislature must make cuts to retiree health care costs and raise several taxes to diffuse the “fiscal time bomb” created by inadequate payments to the public worker retirement system, according to a new policy report released Wednesday.
The report, “New Jersey’s Prosperity Depends on Immediate Fiscal Reforms,” was produced by The Fund for New Jersey and is aimed to shape the debate during this election year, with the governor’s office and all 120 seats in the Legislature open. The report largely focuses on the huge gap between what the state sets aside each year for pensions and retiree health care and what those obligations actually cost.
Trenton NJ, New Jersey Governor Chris Christie wants to force the state’s largest health insurance company to dole out $300 million for a drug addiction treatment program for the poor, an egregious cash grab that media outlets call a “shake down” and “extortion.” Judicial Watch has launched an investigation into the Republican governor’s outrageous targeting of a nonprofit healthcare provider, Horizon Blue Cross Blue Shield, that functions as a tax-paying health services corporation with nearly 4 million policyholders.
Here’s some background before getting into the New Jersey Open Public Records Act (OPRA) request filed by Judicial Watch last week; months ago, Christie launched a peculiar campaign to dig into Horizon’s multi-billion-dollar surplus to fund addiction programs as part of an effort to crack down on the state’s opioid epidemic. The unusual plan has encountered fierce opposition from a multitude of sources, including Democrats and Republicans, not to mention Horizon and the insurance industry in general. Christie has kept pushing, insisting that legislation be introduced to force Horizon to fund his dubious addiction experiment. A local newspaper reported that New Jersey Assembly Speaker Vincent Prieto refuses to support such a measure, calling it a “bad bill”
The same newspaper article said that “Christie’s push to get some money from Horizon included a news conference on Wednesday to spotlight $15.5 million in citations against Horizon over its Medicaid contract compliance with the state, which the governor says predates his effort to use their surplus. He said the citations show that his proposal, which also includes adding board members and requiring the insurer to post information online, is needed.” However, Christie refused to reveal the citations and when the media tried to obtain them through the Open Public Records Act, the governor’s office asserted that “contractual obligations” prevented the release of the documents. Information involving the mysterious multi-million-dollar fine levied against Horizon is among the records Judicial Watch has requested from the Office of the Governor.
When disclosing the citations didn’t work, Christie threatened to withhold school funding unless state lawmakers pushed through legislation giving him $300 million from Horizon and power to add four political appointees to its board of directors. A local news report said Christie threw “an 11th-hour grenade” into state budget negotiations and called his Horizon cash grab a “raid.” This week a state Senate committee voted to allow the governor to control how much surplus Horizon may keep. “The state could require this extraordinary amount of control because Horizon’s charter would be changed to say it “shall have a charitable mission … to fulfill its obligation as an insurer of last resort in this state,” a local newspaper article states. The Assembly would still have to approve the measure and that seems unlikely according to the speaker’s public comments.
Many wonder what is really driving this issue for Christie. Why is the governor hitting a nonprofit healthcare provider with an excellent rating and modest reserves? Sources with firsthand knowledge of the situation tell Judicial Watch that the real story involves New Jersey insurance magnate George E. Norcross, who is chairman of the board of Cooper University Hospital in Camden and owns a piece of AmeriHealth, a small money-losing New Jersey insurer. Norcross is also Executive Chairman of Conner Strong & Buckelew, one of the nation’s premier insurance, risk management and employee benefits brokerage and consulting firms. He’s been trying to force Horizon to buy the ailing AmeriHealth firm, sources tell Judicial Watch, but Horizon has refused. Christie’s former chief of staff, Kevin O’Dowd, works for Norcross at Cooper University Hospital. His official title is senior executive vice president and chief administrative officer. Judicial Watch’s public-records request asks for all communications between Christie, his current chief of staff, Amy Cradic, Norcross and O’Dowd concerning Horizon from June 2016 to date. This includes records regarding, concerning, or related to the following: The activities, operations, and/or management of Horizon Blue Cross Blue Shield of New Jersey, Inc; The activities, operations, and/or management of AmeriHealth Insurance Company of New Jersey, Inc; The activities, operations, and/or management of Cooper University Hospital and/or Cooper University Health Care; The activities, operations, and/or management of Conner Strong & Buckelew; The $15.5 million fine recently levied against Horizon Blue Cross Blue Shield of New Jersey, Inc; Any proposed legislative or regulatory changes that would significantly impact Horizon Blue Cross Blue Shield of New Jersey, Inc.’s operations. This includes, but is not limited to, the proposals to alter the composition of the company’s board of directors and to reallocate a portion of the company’s financial reserves for public use.
Trenton NJ, An effort by Senator Jennifer Beck (R-Monmouth) to force a vote on legislation she sponsors to forfeit the pensions of corrupt public officials (S-1557) was immediately blocked by Senate Democrats at today’s session of the New Jersey Senate.
A third attempt by Sen. Jennifer Beck to force a vote on legislation she sponsors to forfeit the pensions of corrupt public officials was immediately blocked by Senate Democrats today. (SenateNJ.com)
This marks the third time Democrats have voted to block the consideration of the pension forfeiture legislation. Previous motions by Beck to move the bill were immediately tabled by the majority on February 6 and February 13.
“Time and again, Senate Democrats have voted to protect the pensions of corrupt public officials,” said Beck. “It’s inexplicable that they would continue to choose convicted officials over the taxpayers they represent.”
An investigation by the Asbury Park Press last year found at least 40 convicted criminals collecting state pension checks of up to $83,000 per year.
“The APP found a million dollars of taxpayer money going to corrupt public employees, including some found guilty on federal corruption charges,” added Beck. “Those are just the people they found, there are probably dozens more. If you violate the public trust, you don’t deserve a cushy retirement at taxpayer expense. Why is that so hard for Democrats to understand?”
Updated on June 18, 2017 at 8:19 AMPosted on June 18, 2017 at 8:15 AM
BY CRISTINA ROJAS
For NJ.com
TRENTON — Trenton will lose out on $3.3 million in federal block grant funding over a three-year span — the result of years of mismanagement and sloppy recordkeeping under the city’s previous two administrations.
The funding cut approved earlier this month represents the city’s only recourse to repay Community Development Block Grant money that officials say was improperly used between 2007 and 2013.
A series of audits by the U.S. Housing and Urban Development found that $3,322,313 in costs for the block grant program were unsupported, unallowable or unreasonable and required repayment. But because the city can’t afford to reimburse HUD with non-federal funds, the amount it owes will be deducted from future block grants, beginning with the 2016 funds that have not yet been released.
New Jersey’s largest teachers union has endorsed the Republican candidate challenging Senate President Steve Sweeney, the top elected Democrat in state government.
The New Jersey Education Association’s political action committee voted unanimously on Friday to endorse Fran Grenier, the chairman of the Salem County Republican Party, for the state Senate seat in the 3rd District.
New Jersey state treasurer says Gov. Chris Christie’s fiscal year 2017 budget is expected to be about $527 million shy of expected revenues.
| May 16, 2017, at 6:50 p.m.
TRENTON, N.J. (AP) — New Jersey state treasurer told lawmakers Tuesday that Gov. Chris Christie’s fiscal year 2017 budget is expected to be about $527 million shy of expected revenues.
Ford Scudder told the Democrat-led Senate budget committee that the Republican administration will account for the shortfall by spending less than expected in a number of programs. He also said it will divert $50 million from the Clean Energy Fund and defer homestead benefit payments to towns across the state.
The shortfall is smaller than in previous years when Christie at one point in 2014 faced a $3 billion gap across two fiscal years and was forced to slash payments to the state’s public pension to make up for the missed revenue projections.
Scudder also told legislators that revenue projections for the 2018 budget, which begins on July 1, are expected to be $191 million higher from those made earlier this year.
Scudder’s estimates contrast with the nonpartisan Office of Legislative Services, which has estimated a $687 million gap to close over the two fiscal years. The legislative analysts said they expected the 2017 revenues to dip by $274 million compared to earlier estimates and by $413 million for 2018.
These are Christie’s final two budgets as governor, as he is term-limited and expected to leave office in January. He’s proposing a $35.5 billion spending plan for 2018, which lawmakers are considering.
TRENTON — State officials are counting on stepped-up enforcement and better responsiveness from its Taxation Division to bring in a few hundred million dollars extra in the budget that Gov. Chris Christie will hand off to his successor.
At a budget hearing Wednesday, state Treasurer Ford Scudder lowered projections of how much in revenue the state will collect over the next 14 months by $336 million. It would have been about $200 million greater if not for the efforts to “modernize” the state Division of Taxation.
Scudder said the state will issue tax bills earlier with follow-up reminders about overdue bills similar to those used by credit card companies, plus make its website easier to use and understand.
WASHINGTON, DC – Today, President Donald J. Trump announced the issuance of an executive order forming the bipartisan Presidential Commission on Election Integrity. The President also named Vice President Mike Pence as Chairman and Kansas Secretary of State Kris Kobach as Vice-Chair of the Commission.
Five additional members were named to the bipartisan commission today:
Connie Lawson, Secretary of State of Indiana
Bill Gardner, Secretary of State of New Hampshire
Matthew Dunlap, Secretary of State of Maine
Ken Blackwell, Former Secretary of State of Ohio
Christy McCormick, Commissioner, Election Assistance Commission
“This action by President Trump fulfills another promise made to the American people,” said Vice President Pence. “We can’t take for granted the integrity of the vote. This bipartisan commission will review ways to strengthen the integrity of elections in order to protect and preserve the principle of one person, one vote because the integrity of the vote is the foundation of our democracy.”
The Commission on Election Integrity will study vulnerabilities in voting systems used for federal elections that could lead to improper voter registrations, improper voting, fraudulent voter registrations, and fraudulent voting. The Commission will also study concerns about voter suppression, as well as other voting irregularities. The Commission will utilize all available data, including state and federal databases.
Secretary Kobach, Vice-Chair of the Commission added: “As the chief election officer of a state, ensuring the integrity of elections is my number one responsibility. The work of this commission will assist all state elections officials in the country in understanding, and addressing, the problem of voter fraud.”
Additional Commission members will be named at a later time. It is expected the Commission will spend the next year completing its work and issue a report in 2018.
Stripped of its tax-exempt status and plagued with apparent conflicts of interest, the NJSPCA spends far more money on legal fees than on animal care, according to its own tax records
This is the first in a two-part series investigating the NJSPCA, the New Jersey Society for the Prevention of Cruelty to Animals, which has come under scrutiny in recent years for not filing income taxes and for loss of its status as a charitable organization. Follow this link to read the second story.
The New Jersey Society for the Prevention of Cruelty to Animals (NJSPCA), a private organization with a 100-plus-year-old charter from the state, has been the focus of controversy for almost 20 years. Charged with protecting animals, the group’s senior members are given the power of arrest, carry guns, and have little state oversight. Now, the society is in trouble, losing its charity designation after not filing tax returns for three years. Despite this, it accepted public donations without informing donors that their contributions were no longer tax-deductible.
TRENTON NJ, Attorney General Christopher S. Porrino today announced two new initiatives to fight public corruption, including a reward program offering up to $25,000 for tips from the public, as well as a program that offers lower-level defendants in a corruption scheme the potential to avoid prosecution if they reveal the crime to the Attorney General’s Office so more culpable defendants can be prosecuted.
New Jersey has tough anti-corruption laws that provide mandatory minimum terms of imprisonment and parole ineligibility for people who commit crimes that touch upon their public office or employment. The Attorney General’s Office has utilized these laws in recent years to prosecute major cases involving elected officials, government employees and companies receiving public funds. A critical challenge, however, is securing the initial leads that allow such crimes to be uncovered and prosecuted. The new programs are designed to encourage those with information on corruption to come forward.
“It’s a troubling reality that along with the many public officials and employees who carry out their duties with integrity, there are some who abuse their authority and corruptly exploit their positions for personal gain,” said Attorney General Porrino. “We know these bad actors are out there, and we’re casting a wide net to catch them with these two new programs. For members of the public who have personal knowledge of corruption and are fed up with it, we’re offering an added motivation for them to turn their anger into action.”
“Our whistleblower program strategically allows secondary players in corruption schemes to come clean and avoid prosecution,” Porrino added. “Whether we’re talking about a skilled public worker assigned to act as a personal handyman for his boss, or a contractor asked to pay bribes to a local code inspector, or a corporate employee pressured by executives to make illegal political contributions, we’re offering a way out of such predicaments for those who come forward first and are less culpable.”
“These new programs offer strong incentives for people to come forward confidentially and help us root out public corruption, whether they’re tipsters from the public seeking a reward, or public workers or others seeking to extricate themselves from a corrupt scheme,” said Director Elie Honig of the Division of Criminal Justice. “By offering the programs for a limited time, we’re looking for swift results, and we will vigorously pursue every lead.”
“By implementing the Anti-Corruption Reward and Anti-Corruption Whistleblower Programs for a relatively short time frame, we are hoping for quick and decisive action by anyone with knowledge of public corruption by elected officials and government employees,” said Colonel Rick Fuentes, Superintendent of the New Jersey State Police. “The goal of the initiatives is to encourage those to come forward with information that will eventually lead to the prosecution of anyone who engages in these corruption schemes.”
Attorney General Porrino announced the following programs to promote reporting of corruption cases:
Anti-Corruption Reward Program
The Attorney General’s Office is offering a reward of up to $25,000 for tips from the public leading to a conviction for a crime involving public corruption. The reward program will be funded by the Attorney General’s Office using criminal forfeiture funds.
Individuals applying for this reward must provide information about a crime that has not previously been revealed to law enforcement and they must not have participated in the crime.
The reward limit for any case is $25,000. In most cases, only the person who first reports the crime will receive the reward. However, where two or more people provide different information that is material to successfully prosecuting the case, the reward may be apportioned.
The reward is not available to government employees who learn of the crime in the course of their employment if they have an official duty to report such crimes.
Anti-Corruption Whistleblower Program
This program encourages eligible individuals or corporations to self-report their involvement in criminal activity, in return, in appropriate cases, for an agreement by the Attorney General’s Office to waive prosecution of the whistleblower.
Individuals interested in participating in the program can choose initially to report information anonymously and/or through an attorney to determine whether they are a likely candidate for waiver of prosecution under the program. They can then decide whether to proceed with the formal application.
The program is restricted to lower-level participants in a crime who provide information that enables the Attorney General’s Office to charge higher-level defendants. The whistleblower must provide truthful and complete information and must cooperate as required by investigators.
An individual will not be eligible for the program if he or she is an elected official, had a controlling role in the criminal scheme, or enlisted another party to participate in the scheme.
The whistleblower may be subject to forfeiture of public employment depending on the circumstances.
Corporations may apply for the Whistleblower Program only where the criminal activity at issue was committed by employees of the corporation, without the knowledge, acquiescence or participation of the high-level employees, officers, directors or shareholders seeking waiver of prosecution for the corporation, and only where the corporation took prompt action to terminate the illegal activity or report it to law enforcement once it was discovered.
The programs are intended to encourage individuals who have information on public corruption to come forward promptly, so they will be open for a limited time. Both programs will expire on Aug. 1, 2017.
The Attorney General’s Office will keep the identities of applicants to the programs confidential to the fullest extent possible, subject to any statute, rule of court, or judicial decision to the contrary which may require disclosure to certain parties, including, in certain circumstances, a criminal defendant. Applicants to each program may be interviewed by detectives at the discretion of the Division of Criminal Justice. The applicant may also be required to give his or her verbal statement under oath and sign a written memorialization of his or her statement.
Additional information about the two programs can be found posted with this press release on the Attorney General’s Office website: www.njpublicsafety.com.
Individuals may report information and apply for the Anti-Corruption Reward Program or Anti-Corruption Whistleblower Program by one of the following methods:
Call the DCJ hotline 866-TIPS-4CJ to speak with corruption detectives 24 hours/7 days a week;
Visit www.njdcj.org to submit an online report;
Write directly to DCJ at the following address:
New Jersey Department of Law and Public Safety
Division of Criminal Justice
25 Market Street
P.O. Box 085
Trenton, NJ 08625-0085
Attention: Anti-Corruption Reward Program OR Anti-Corruption Whistleblower Program.
Paying for the past instead of investing for the future? Explains much of why NJ’s economy is in the toilet. Will.be an interesting test case on what to do as the state spirals down into oblivion. New legislation will be needed to resolve the liabilities, many of the needed federal & state laws haven’t been written yet, but states like NJ and Illinois will provide the necessary precedents. Current employees certainly won’t have it as good as current retirees, which is why some posters above are defending paying for the past and ignoring investment in the future. This is generational warfare, and the retiring baby boomers are winning, big time
Unlike the city of Detroit, the state of New Jersey cannot declare bankruptcy. Federal bankruptcy laws don’t allow it.
“It’s not provided in the federal bankruptcy laws. There is a provision for municipalities and any other kind of organization in the state to go bankrupt, but not the state itself,” said Professor J. Fred Giertz, an economist who is director of the University of Illinois’ Institute of Government and public Affairs.
And although there has been some talk of changing federal law to permit states to reorganize their financial obligations through bankruptcy, it hasn’t gone far.
“In the United States we have a federal system where the states have powers that are protected from the national government, so there’s a real question about supremacy and whether the federal government can impose bankruptcy rules on the state, which is supposed to have powers that are protected from the federal government,” Giertz said. “I don’t think there’s any likelihood it’s going to be approved by Congress anytime soon.”
• The state itself cannot file for bankruptcy under the U.S. Bankruptcy Code.
• Municipalities cannot file for bankruptcy under the U.S. Bankruptcy Code without approval of the state (See N.J.S.A. 52:27-40).
• The state has in the past made it clear that they would not approve such a filing by a municipality. There are red flags under state law that identify when a municipality is experiencing financial difficulty. Such a municipality must appear before the Local Finance Board with a financial recovery plan.
• It is unclear, at best, whether the major costs affecting municipalities for unionized contractual obligations can effectively be terminated, changed or even renegotiated by virtue of Chapter 9 of the U.S. Bankruptcy Code. These obligations seem to be the driving force behind bankruptcy filings by local governments in other states, but they do not appear to have been successful in creating leverage in such contractual negotiations. The lack of ability to reorganize or dissolve that enables private corporations to bring their creditors to the table for serious negotiations as leverage may not exist under Chapter 9.
