LEGISLATIVE REPORT
The new ‘ summer ’ normal for Trenton
Sizing up Chr
If uncertainty and high-stakes politics is normal for Trenton , then the past few weeks have been routine at the State House . It wasn ’ t always that way . In the past , the required passage of the state budget by the end of June signaled the start of a quiet summer for lawmakers .
Even under this governor there was a routine . Democrats would pass the budget , and
ROB NIXON bills to support it , and the governor would veto what he didn ’ t like as expected . Most people would then turn their attention to the Shore and barbeques , and the action at the Capitol would slowly start up again after Labor Day .
But those times apparently are long gone . In a matter of a few days , it became clear that this would not be a peaceful summer in Trenton . And unlike most serious policy debates , there isn ’ t just one fight going on , but several .
It isn ’ t surprising that the Transportation Trust Fund ( TTF ) has become complex and political . Several months ago , the governor made clear that he wouldn ’ t support new taxes for road work without offsetting savings elsewhere . So a bipartisan group of Democrats , Republicans and labor and business leaders spent weeks cooperating to develop a proposal that would cover the TTF and cut a variety of taxes .
The Fund was saved and taxes were to be cut . Problem solved . Then enter the governor , who at the last minute decided the deal cut the wrong taxes and he killed the plan . His proposal , worked out with Speaker Prieto that would roll back the sales tax to 6 percent , was immediately declared DOA by the Senate . Even Senate Republicans balked at the idea . Then , the governor left the country on vacation , leaving legislative leaders and the construction industry with few clues how to resolve the stalemate .
But if that weren ’ t enough to worry about , the governor then once again took aim at public employees in a move that is harsh even by Trenton standards .
As most PBA members know , Chapter 78 and the courts gave the power over health benefit plan design and cost savings to a 12-member committee split evenly between employers and employees . Contrary to misinformation , the employee members of the Plan Design Committee have a vested interest in lowering health care costs since higher costs lead to higher premium and out of pocket expenses . The employee members , including Kevin Lyons of the NJ State PBA , have identified hundreds of millions in savings that would lower costs and improve the delivery of healthcare to public employees .
The governor , however , wants $ 250 million in “ savings ” but wants it to come from employees and not from the provider-hospital-pharmaceutical company-insurer-doctor side of the equation . The employee Plan Design Committee members believe there are hundreds of millions to be saved there . The governor ’ s plan is to once again cut benefits .
Since the Plan Design Committee cannot act without the support of the employer members ( appointed by the governor ) and since some of the savings require legislative action , the bulk of the initiatives remain undone . This level of policy change takes time and there have been ongoing discussions and negotiations for months . Sadly , instead of allowing that process to continue in good faith , the governor decided by “ Executive Order ” to make local governments , nonprofits and public services feel the brunt of his frustration of not getting what he wants .
The governor ’ s order embargoes state spending equal to the savings he identified he wanted on health benefits by cutting aid , mostly to struggling , urban municipalities . While in normal negotiations , a proposal that creates $ 250 million or more in savings as requested would be seen as a win , but in 2016 Trenton , normal means ensuring that one side must lose and not be seen as a partner .
So if employees aren ’ t losing benefits , then local governments will lose money needed to stay afloat because cuts in aid will lead to cuts in services and jobs , so it is a move designed to choke employees into capitulation . It is also an unnecessary move since there are plenty of savings to be had to reduce the price of healthcare from the delivery side of the equation .
And as if that weren ’ t enough to deal with , the proposed pension funding constitutional amendment has passed the Assembly and is awaiting Senate action . Whether it moves has a lot to do with these other issues .
We also can ’ t forget that there is an election for President going on at same time and Governor Christie remains in the middle of the action behind the scenes . Donald Trump has already named the governor the head of his White House Transition Team , which essentially gives him wide influence over the policy , jobs and personnel of a future Trump Administration .
Mr . Trump has stated that the governor will have some role in his Presidential administration , and as this goes to print he is on the short list as a potential Vice-Presidential candidate . There can be little doubt that the decisions the governor is making on all these major issues is involved in some part of the political calculus of his current and future place in national GOP politics .
None of this is normal , but this year it is normal for Trenton . d
12 NEW JERSEY COPS ■ JULY 2016