Gov Corzine

[Guest]

Paterson confronts problems head-on, NY likes it
ANNE MICHAUD | anne.michaud@newsday.com.
September 10, 2008

Conventional wisdom has it that we don't like to hear bad news from our political leaders. While President Jimmy Carter ruminated about the national malaise, Ronald Reagan heralded morning in America and beat him.

But weirdly enough, New Yorkers are lapping up every bit of bad news from Gov. David Paterson. The governor went on a three-day tour of the state in June to advertise out-of-control property tax bills. How did we react? According to the Siena College poll, 44 percent of New Yorkers said he was doing a good job, up from 30 percent the previous month.

Then in midsummer, Paterson told us the economy was in the tank, he froze hiring in state government, and he called the legislature back into session to cut $1.2 billion in spending. The result? His job approval soared to 52 percent.

This week, the governor tells us that legislators are "bloodsuckers" and is calling for a zero-growth budget next year. We won't know how that plays until Monday, when Siena College releases another poll. But poll spokesman Steve Greenberg offered a peek yesterday at the early results: "I see the trend continuing."



Not every governor gets so lucky. New Jersey Gov. Jon Corzine is slashing away at state debt as his numbers plummet. A Quinnipiac poll showed that only 42 percent of New Jerseyans approve of his work. And just 40 percent of Californians like Gov. Arnold Schwarzenegger's efforts to grapple with that state's epic budget deficit.

One big difference between Paterson and his peers is time in office. In 2004, the conservative Heritage Foundation said that governors of both parties had increased their popularity by cutting spending instead of raising taxes. Schwarzenegger, in office just one year, was the poster boy for this study, with a 65 percent approval rating.

Similarly, Corzine drew cheers after presiding over his first budget in 2006, when he shut down state offices for a week to force through austerity measures. But then news stories revealed that $300 million in pork had survived, and he lost voters' faith, says Patrick Murray, director of the Monmouth University/Gannett NJ poll.

"There's a level of public cynicism that he never recovered from," Murray says.

This year, Corzine achieved serious spending cuts but has been given little credit.

.............

http://www.newsday.com/news/opinion/ny-opmic105835970sep10,0,6341984.story

[James]

This article is the problem with the media in general. You have reporters in NY State unfamiliar with the issues in NJ looking at one piece of information and making comments.

The article doesn't touch on the Turnpike plan, the relatively non-existent property tax reform, increased sales tax, increased COAH obligations that will raise property taxes for the non-COAH homeowner, sales taxes on previously non-taxed items, the fact that medical insurance deductions are non-deductible on NJ taxes while they are deductible on a state and federal level, reduced aid to schools and municipalities, etc....Patterson is actually trying to make changes without costing residents more overall. Corzine is saying watch this hand while the other robs my pocket.

[Jersey Dad]

Corzine may be the single most destructive force ever to hit suburban New Jersey. Who would have thought anyone could make McGreevey look good?

[The Times]

Corzine calls economic forum after dramatic week on Wall Street
by Claire Heininger/The Star-Ledger
Monday September 22, 2008, 5:45 AM
Gov. Jon Corzine will convene a forum this afternoon to address the economic turmoil facing New Jersey and the country.

The closed-door event, which will take place in Newark at the New Jersey Institute of Technology, will include "a cross-section of business representatives and economic minds from throughout the state, with the goal of planning a comprehensive and immediate plan for action," according to the governor's office.


Tim Larsen/Governor's Office
Gov. Jon Corzine
Corzine called for the forum on Friday after a week of dramatic upheaval on Wall Street that he said could lead to job losses in New Jersey and affect the state budget.

"To stand still is to fall behind," the governor said in a statement. "We need action, and we need it now."

The governor's forum will follow a morning session by the Assembly Labor Committee, which will hear testimony on how the financial crisis will impact the Garden State.

"It is imperative that we ensure that there are programs and policies set in place here to protect our working families," said Assemblyman Joseph Egan (D-Middlesex), chairman of the Labor Committee.

The Senate Budget and Appropriations Committee has also scheduled a hearing for Oct. 6, according to its chairwoman, Sen. Barbara Buono (D-Middlesex).

New Jersey's unemployment hit a five-year high of 5.9 percent in August, and could grow worse as financial industry employees lose their jobs. The national rate unemployment rate was 6.1 percent last month.

http://www.nj.com/news/index.ssf/2008/09/corzine_to_hold_emergency_econ.html

[The Star Ledger]

Corzine's job growth strategy faulted
Critics say state economic czar fell short as region braces for fallout of the economic crisis
Sunday, September 21, 2008
BY CLAIRE HEININGER
Star-Ledger Staff
Soon after Jon Corzine was sworn in as governor in 2006, he created a high-profile job and filled it with an unfamiliar face.

Gary Rose, a former colleague at Goldman Sachs, became Corzine's economic czar -- overseeing every state panel dealing with economic growth and equipped with powers that convinced many Trenton insiders that he was a de facto lieutenant governor.

His charge was to create jobs, and his Wall Street pedigree set expectations high.

Rose left the administration in June, and as Corzine prepares to pick a replacement, lawmakers and businesspeople are divided over whether the approach paid off.

"The concept was a good one," former Commerce commissioner Gil Medina said. "(But) there's many other things that the state could do."

Critics say Corzine gave Rose an assignment too big for one person to handle, and together they failed to do enough to keep jobs and employers from leaving New Jersey.

Corzine and Rose defend their record, saying their moves streamlined the state's economic growth operation and boosted outreach to corporations. With the national economy in trouble, New Jersey is fighting for "every possible piece of business," Corzine said.

"I'm doing as much as any governor in the country on these issues, and Gary was a very, very able partner in that process. He will be missed," Corzine said. "We need to do everything we can to protect the economic well-being of New Jersey in the midst of probably the biggest financial crisis since the Depression."

When Corzine and Rose took over, they set a goal of 70,000 new jobs a year and said they'd settle for 40,000. The state came close in 2006, with a rise of 33,900 jobs. But it gained only 4,700 jobs in 2007, and has lost 16,000 in the first eight months of 2008.

Figures released by the state last week show unemployment at a five-year high of 5.9 percent. The national rate was 6.1 percent.

But when compared with other states, New Jersey is lagging, Rutgers economists James Hughes and Joseph Seneca wrote in a recent report. It ranked 46th out of 50 states in total job growth in the first half of 2008, even though its total employment base is the 11th-largest. The state was 21st in job growth in 2006 and 36th in 2007.

New Jersey could also face thousands of job cuts for the rest of the year following last week's collapse of Lehman Brothers, the sale of Merrill Lynch to Bank of America and the crisis on Wall Street.
...................................

Rose said he was not spread too thin to be effective. He counts among his accomplishments creating the state's first strategic plan on economic growth, establishing a multi-agency economic council and contributing to the state's energy master plan. Kirschner said steps that gave businesses a more immediate boost included rolling back some business taxes and creating a more user-friendly Web site.

"I'm used to juggling things. That's what I did for 25 years when I was at Goldman," Rose said. "If it doesn't work for the next person, then they'll either cut down the job or revise the job. ... This is a model that I think actually is a good working model."

The responsibility placed on Rose's shoulders also brought a spotlight. Senate Minority Leader Thomas Kean Jr. (R-Union) and Assembly Minority Leader Alex DeCroce (R-Morris) recently sent a letter to the governor's office demanding details of Rose's involvement in brokering the Xanadu bailout.

They asked whether Rose had a conflict of interest because he held stock in Goldman Sachs, which lent $1.1 billion to the corporation running the project in 2006, and an equity interest in Dune Capital, a hedge fund that was one of three investors to rescue the project.

Rose said his Goldman Sachs holdings were reviewed by the governor's chief counsel's office, and that he divested his stake in Dune when the company first expressed interest in Xanadu. He said he "was not involved in trying to seek a buyer" for the project and mostly worked at resolving legal issues between the companies, sports teams and state agencies involved.

Corzine, who sold his final shares in Goldman Sachs during his 2005 campaign for governor, said he also divested a stake in Dune when the company showed interest in Xanadu. Spokesmen for Xanadu declined comment. Daniel Neidich, co-chief executive of Dune and a friend of Corzine, did not respond to requests for comment.

Corzine would not say when he will name a replacement for Rose. Some wonder whether he should.

Senate President Richard Codey (D-Essex), who publicly clashed with Rose, said the task of creating jobs is too big for one person -- suggesting a "triumvirate" of the governor, the treasurer and a commerce commissioner. Corzine eliminated the state Commerce Commission in his latest budget.

"There's nothing wrong with having a jobs czar, but that's not what he was sent out to do," said Codey, who said Rose spent too much time as a "troubleshooter" for Corzine.

Joan Verplanck, president of the New Jersey Chamber of Commerce, said two people could direct economic growth: one to cut deals with those who can bring jobs, and one to work the state bureaucracy.

"Those are different skills," she said. "Gary was expected to have all of it. I think it really was too much to expect."

http://www.nj.com/news/ledger/jersey/index.ssf?/base/news-11/1221971167151950.xml&coll=1&thispage=1

[Guest]

[Guest]

First off, it was Corzine who as CEO of Goldman basically forced their hand into going public because of mismanagement and failure to retain the partners. No one hears about that, though that was one reason he was forced out.

He's failed business 101. When you are losing market share or trying to compete in an established market sector the easiest and quickest way is to find a price point and reduce your price to the point where you're making money, but also getting new customers. Instead of reducing taxes (prices) to encourage new buyers(employers) he's raised taxes and kept NJ unaffordable. PA is 5-6 billion under our budget.

If Corzine were smart he'd reduce corporate taxes knowing more employers would enter which means more revenue. More employers means more jobs which means more taxes. Instead he sticks to his mandate of higher taxes which means businesses leave.

[Star Ledger]

Corzine, business execs brainstorm on financial crisis
by Beth Fitzerald/The Star-Ledger
Monday September 22, 2008, 3:15 PM

While Congress considers adding foreclosure-prevention measures to the Bush administration's $700 billion bailout of the stumbling U.S. financial sector, Gov. Jon Corzine is convening a forum in Newark with 27 business executives and state government officials to "hear ideas from people who are living and working every day in the world of our real economy."

Jerry McCrea/The Star-Ledger
Governor Jon Corzine of New Jersey (center); speaks during an economic forum with NJ business leaders held at the NJIT campus in Newark. Corzine, speaking briefly to the press just before a 2 p.m. closed-door meeting at New Jersey Institute of Technology, said he's looking for ideas to "help us ease some of the dislocations that are pretty obvious: Main Street's got problems just as much as Wall Street does."

More coverage in the Star-Ledger Business blog.
The governor said he wants to know what steps government can take to ease the impact of the credit market crisis on New Jersey; what steps government and business can take together, "and how we can facilitate steps you might need to take on your own."

Corzine said he will make the case to Washington that the states "are going to be a negative factor in the economic well-being of the country if we are not part of the solution."

New Jersey's unemployment rate is rising, and Corzine said the state's Medicaid expenses rise $1.1 billion for each 1 percent rise in the jobless rate.

Over the weekend, Treasury Secretary Henry Paulson asked Congress for authority to spend $700 billion over the next two years to buy the mortgage-related securities now weighing down the books of banks and investment firms. These securities are plummeting in value as housing foreclosure and default rates rise and home prices sink, igniting a crisis of confidence in the U.S. financial system. Congress is expected to vote on a bailout plan this week.

According to a Corzine spokesperson, those attending the two-hour economic conference included Ralph Izzo, chief executive of Public Service Enterprise Group; Joseph Riggs, group president of the homebuilder K. Hovnanian Homes; Gus Milano, executive vice president of the commercial real estate firm Hartz Mountain Industries; Gil Medina, executive managing director of Cushman & Wakefield and a former New Jersey commerce secretary, and Caren Franzini, chief executive of the New Jersey Economic Development Authority.

http://www.nj.com/news/index.ssf/2008/09/corzine_asks_business_leaders.html

[Guest]

[Star Ledger]

Corzine urges public works spending to spur state's economy
by Beth Fitzgerald and Claire Heininger/The Star-Ledger
Tuesday September 23, 2008, 12:05 AM

Gov. Jon Corzine today proposed accelerating state spending on public works projects such as schools, roads and mass transit and encouraging the creation of new energy conservation jobs -- all in a bid to forestall the dire economic consequences of the Wall Street financial crisis.

Corzine also suggested New Jersey's bargain commercial real estate prices might attract jobs from New York's embattled financial services industry.

The governor spoke about the crisis on Wall Street following a two-hour meeting in Newark, where he invited 27 business leaders and state officials to discuss strategies for bolstering the state's economy. A $700 billion bailout package now being discussed by Congress not only should help financial institutions, but also should go toward keeping families from losing their homes, Corzine said. And he raised concerns about allowing huge compensation packages for Wall Street titans responsible for the current meltdown.

"How we pay people on Wall Street and in a lot of places needs serious revision," said Corzine, who entered politics after running the investment bank Goldman Sachs. "There needs to be 'clawback' considerations when people have not done well and it comes out after they have been paid. Executive compensation comes under the purview of the board of directors, and I don't think those boards have always done a good job."

Among the ideas that emerged form the brainstorming session was bringing New Jersey's smaller community banks together to form lending syndicates that, with backing of the state Economic Development Authority, could funnel capital to businesses caught in the credit crisis.

While Corzine was meeting with business experts in Newark, state lawmakers convened an emergency hearing in Trenton to gather ideas on what they can do to soften the economic blow to Garden State residents.

Testimony before the Assembly's Labor Committee covered a range of ideas, including raising the minimum wage, rolling back corporate taxes, investing in transportation infrastructure and doing nothing at all. Legislators did not immediately embrace any new policy prescriptions, though several interest groups used the occasion to renew calls for their respective favorite causes.

The first person to testify, Rutgers economist James Hughes, confirmed the grim possibilities facing the Garden State. "A sharp economic rebound is not in the cards," Hughes said. "We still have a lot of pain to go through."

Forty percent of New Jersey's income tax is paid by the wealthiest 1 percent of residents, Hughes said, and under the "worst-case scenario" the state could see its income-tax collection drop by 13 percent or so in the wake of Wall Street cutbacks. Retail sales are also likely to flatline or grow slowly, which will affect sales tax collections, he said. As for job losses, Hughes put the worst-case figure at 100,000.

Pressed on what steps the Legislature can take, Hughes said there are few actions at the state level that would create a turnaround. He said investment in transportation infrastructure could help create jobs, but "it takes a long time to kick in."

Other speakers also cited transportation projects as an area where the state could act, and committee chairman Assemblyman Joseph Egan (D-Middlesex) said following through on plans to build a new rail tunnel under the Hudson River should be a top priority. The tunnel is one of several projects that would be paid for with toll increases on the New Jersey Turnpike and Garden State Parkway under a plan now being considered by the Turnpike Authority.

Egan said he favors raising the minimum wage from $7.15 per hour, but that will probably not draw lawmakers' immediate focus, despite testimony from progressive organizations and labor advocates. They said a boost in the minimum wage would help keep people in New Jersey who would otherwise flee due to high housing costs, and pump money into the economy by allowing workers to spend more.

"Now is the time to invest in New Jersey's families, and not pull back," said Jon Shure, president of the liberal Trenton think tank New Jersey Policy Perspective. "We could have a race to the bottom--I'm not sure that's going to get us anyplace."

Business groups said a wage increase would be counterproductive and called for changes to the state's tax structure to make it more business-friendly.

John Rogers, representing the New Jersy Business and Industry Association, said the Legislature should also be prepared to pump more money into the Unemployment Insurance Trust Fund. The state put $260 million into the fund in June to avoid triggering a tax increase on businesses, but with unemployment rising -- it was at 5.9 percent in August, a five-year high -- the fund could soon be drained again, Rogers said.

http://www.nj.com/news/ledger/topstories/index.ssf/2008/09/corzine_urges_public_works_spe.html

[Historically Fiscal]

Its interesting how divergent strategies are being used by the NY/NJ Governors during this financial crisis. This week Bloomberg was cutting taxes for NY taxpayers, while Corzine was in emergency economic meetings with the largest land developers to justify how to spend his way out of this fiscal crisis. Is that what you would personally do? In our current economic situation, when prices are rising, gas is increasing, bills are pilling up, are you thinking of spending your way out like Corzine wants to do to NJ? I didnt think so, most are conserving and preparing for a rainy day, and its starting to pour out there isnt it?

It is this same kind of reasoning I belive that got us into this mess in the first place. I'm not a fan of the Bailout, but generally we need market stability so we need to intervene into the free market. But I am a proponent of free market, if you take on risky loans then live with the outcome.

The problem didnt start with greedy Wall Street, but started with the individual that ASKED/GOT a risky mortgage that they couldnt afford in the first place. Sure the Bank should have been regulated for this not to happen, but the GREED started at home first. If it wasnt soooo dam easy to sell that risky loan to other institutions like Fanny/Freddy/etc. then this rampant GREED would have been contained in the FREE MARKET. Its not about more regulations that will fix it and bigger government, but responsible rules that eliminate this type of risky business in banks that is at fault.

So I go back to my main point with NJ spending and getting into more debt, just like the individuals that are in middle of foreclosures because they couldnt afford the risky mortgages.

Should Corzine take out bigger NJ loans, bigger mortgages out on NJ and spend more of our NJ tax dollars to build these large development projects as the economic solution to our current fiscal crisis?

I'm very disappointed in my Governor as this is Corzine's current strategy and what his committee of economic advisors came up with in this week emergency economic meeting. Maybe its because most of those that are attending happen to be builders and developers themselves? The outcome should have been obvious to us all.

I wonder if Corzine even knows what the top business are in NJ, if he went onto Wikipedia he would know that land development doesnt even make the top 10 in NJ. But no one from Pharma, Finance, Agra, etc was even in this emergency economic meeting. So how is spending more of our NJ tax dollars helping me and my fellow NJersians prepare for harder financial times Gov. Corzine??

I'm very disappointed by Corzine, maybe we can get Bloomberg to come to NJ as someone else suggested on this forum. We can sure use his fiscally responsible judgement and cleanup NJ politics.

Bloomberg Orders $1.5 Billion in Cuts Sept 23rd
http://cityroom.blogs.nytimes.com/2008/09/23/bloomberg-orders-15-billion-in-cuts/index.html

Corzine's Emergency Economic Roundtable Sept 23rd
http://www.nj.com/news/ledger/topstories/index.ssf/2008/09/corzine_urges_public_works_spe.html

http://www.politickernj.com/bguhl/23781/mchose-chiusano-governor-corzine-s-economic-stimulus-plan-misses-mark

[Historically Fiscal]

[cranbury liberal]

[Guest]

As for executive pay, I believe one of the problems is that most people have their money in funds. Any type of pay increase automatically goes through approved by the board because no one (or very few) are actively watching to say "no". Tiaa-Cref was one of the few I have heard that tried to limit CEO pay. I think more people need to make their voices heard at shareholder meetings. But it is very time intensive, which creates part of the problem. Plus they need to stop giving CEOs golden parachutes for doing a poor job.

[Guest]

[

[cranbury liberal]

I don't think sub-prime mortgages as a category are entirely to blame for the problem. The problem is, first, that mortgage providers got more and more creative in offering exotic and special types of mortgages. These creative, risky loans vehicles were not mandated by Congressional acts. This was private companies getting more and more out of control in creating vehicles to spur more loans and refinancing. And by relying middlemen mortgage brokers to drive business they encouraged a system where brokers rampantly misrepresented the terms and risks of the mortgages they were selling to people not savvy or sophisticated enough to question them. Again, I am not relieving those individuals of responsibility for their own consequences. If all that went wrong was some sub-prime loans going bad, we wouldn't be in this situation. The pain spread because of prime loans that used variable rate financing, prime loans that were overburdened with second and third mortgages, speculators who bought investment properties with financing dependent on rapid appreciation, and most of all on the investment banks who leveraged themselves 30-times their available assets on the faith that they would never have a meaningful call on their assets. It is convenient to blame it on Congress or the sub-prime mortgage holders but they were not the drivers of the problem.