Don’t Be Lulled By Low Gas Prices

By  Michael M. Shapiro

It was only six months ago that gas prices were setting records in the United States, topping off near $4.00 per gallon.  In recent weeks, they have steadily and significantly decreased to the point that gas is now hovering near $1.65 per gallon.  Credible explanations for this steep price cut are hard to find.  

The most common explanation being offered is that given the economic turmoil in the United States and elsewhere, OPEC realizes $4.00 per gallon is simply unaffordable.  However, it appears that the real reason for the sudden drop in cost is that, given the high price of fuel and the slumping economy, the American people had finally begun to coalesce around the idea of supporting alternative sources for their energy needs.  The gas producers, recognizing that their future was in jeopardy, slashed their prices to maintain their market share and lull the American people into believing that skyrocketing gas prices are a thing of the past.  

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A Hypothetical Corzine v. Christie Matchup: Battle of the Titans

By Michael M. Shapiro

Will Gov. Corzine decide not to seek re-election and instead serve in the Obama administration in some capacity?  Will Chris Christie decline to seek the governorship or will he lose in a Republican primary?  A betting man would say that Corzine and Christie are the most likely candidates to run in the general election for governor of New Jersey a little less than a year from now.  Given this hypothetical scenario, one thing is certain:  It will be a battle of the titans.

On the side of Gov. Corzine, there is his near-infinite ability to spend his own money to win re-election.  He has the Democratic powerbrokers and ground game, including the unions, which have the facility to mobilize massive amounts of voters.  He also has the benefits of incumbency, including free publicity for the rest of his term, wherever he travels, whatever he says.  

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New Jersey Democrats In Trouble

By Michael M. Shapiro

New Jersey Democrats are basking in the glory of a solid national Democratic showing; however, closer to home, the prospects for this coming election are currently not looking rosy. They have good reason to be concerned.

Millions of people throughout our nation have unrealistically high expectations for President-elect Obama. A panacea where partisanship becomes a thing of the past will, in all probabilities, simply not occur. While Obama will try to tackle the problems facing our nation, there is no easy fix to the majority of them. The choices are painful and the American people will not be happy when these difficult decisions are made by the President and the Congress. Furthermore, a significant number of our most pressing issues, from the economy to healthcare to the environment to terrorism, will not be solved in a year and are most likely to get worse before they get better.

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DeCroce Allegations: Serious and Irresponsibly Late in Coming

By Michael M. Shapiro

Assembly Minority Leader Alex DeCroce (R-Parsippany) recently stated that Senate President and former Acting Governor Richard Codey (D-West Orange) attempted to strong arm him into discontinuing his efforts to investigate a legislative slush fund that was responsible for the now-infamous “Christmas Tree” grants currently under federal investigation.

He claimed that Senator Codey offered him state grant money and threatened him so that DeCroce’s pursuit of information about the slush fund would be stalled. DeCroce agreed to a lie detector test to ‘prove’ his assertions; as of this writing, Codey has not. If DeCroce’s allegations are true, they are not only damaging to Senator Codey and the Democratic Legislature politically, but they have serious legal implications, as well. DeCroce had a responsibility to alert the proper authorities to these allegations when they occurred, not two years after the fact; the public should have been informed in due time, as well.

The issue of the “slush fund” was first brought to the public’s attention approximately one month ago during the trial of former state Senator Wayne Bryant. A Democratic legislative aide testified that some legislators were allowed to spend millions of dollars of the state’s budget at their whim from a fund that required competitive merit-based applications. Codey was acting governor when he proposed the “slush fund” and the Democratic-controlled Legislature approved it while he was serving in the role of senate president.

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Who’s Going To Bail Us Out?

By Michael M. Shapiro

The federal government’s proposal to spend approximately $700 billion to bail out financial institutions drowning in the sub-prime mortgage mess raises the issue of whether such a bailout should be taking place.   It would seem that without the aid package, the major banks/investment firms in our nation would go under, causing disaster and triggering a rapid sequence of events that would impact all Americans and perhaps lead to an economic depression. 

To prevent such an occurrence, the bailout would appear to be justified.  However, it is troubling that American taxpayers are likely going to have to foot a very large bill because our financial institutions took investment risks and lost.

Millions of Americans have mortgages and investments.  If they lose their jobs, they still have to pay their mortgages.  If they can’t pay them, they lose their homes.  Similarly, if their investments lose money, the federal government does not make up the difference.  This leads to the obvious question of fairness.

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Toss Up: Corzine or Christie?

By Michael M. Shapiro

Gov. Corzine may have an upside down 40%-51% approval rating; however, he is still in a dead heat with current United States Attorney for the District of New Jersey, Chris Christie, in a hypothetical matchup for the 2009 gubernatorial election. 

This disclosure is not new.  In August, a poll showed that Christie would defeat Gov. Corzine by only 1% in a theoretical race.  Given the governor’s low approval numbers, it should give him comfort that his strongest Republican challenger can only muster a tie despite all of the problems facing the New Jersey and the shockingly low approval ratings of the Democratic legislature.  

Christie, a former freeholder and fundraiser for President Bush’s initial campaign for the White House, has made battling corruption his top priority.  During his tenure, a number of high-profile politicians have been indicted and convicted, including Newark Mayor Sharpe James. 

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Who Are The Real Losers In The Rutgers Stadium Debacle?

By Michael M. Shapiro

The private fundraising effort to pay for a $30 million shortfall in the financing of a $102 million stadium expansion for Rutgers University has been a debacle.  Less than $2 million has been raised since the governor and state Sen. Raymond Lesniak (D-Union) announced the initiative nearly a year ago.  Gov. Corzine, who is leading the effort, has donated $1 million, the vast majority of the funds obtained to date.  Meanwhile, even the strongest supporters of the idea, like Sen. Lesniak, now say that the drive will result in far less than $30 million and more like $10 million, leaving a gaping $20 million shortfall in funding.  Interest-bearing short-term commercial loans are currently subsidizing the stadium expansion, creating further indebtedness.

Currently, the Rutgers Board of Governors is discussing how to make up the shortfall but the ideas on the table, including raising ticket prices, hiking tuition, and taking stadium revenues from other athletic programs, will likely not cover the shortfall and worse, will cripple the Rutgers athletic program and the university itself since fans are already balking at the increase in ticket prices this year and students are disturbed about the steep tuition hike last year. 

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Pension Reforms Delayed!

By Michael M. Shapiro

On June 23, the New Jersey State Legislature enacted several reforms to the state’s pension system which are still awaiting Gov. Corzine’s signature to make them into law. The reforms include raising the retirement age from 60 to 62, prohibiting public employees from counting time spent working in other states towards the 25 years of work required to quality for lifetime New Jersey health benefits, and eliminating Lincoln’s Birthday as a state holiday. They were recommended by a pension reform task force two years earlier and could save the state’s taxpayers $300 million over 15 years.  

Unfortunately, Gov. Corzine has refused to give the green light to implement them.  Had he signed the legislation directly after the June vote, the reforms would have been effective Aug. 1, affecting all new public employees hired after that date.  Hundreds of employees have been hired since Aug. 1, and more continue to be placed on the state payroll each day while the legislation awaits his signature.

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The Olympics Masked China’s Disdain for Human Rights

By:  Michael M. Shapiro

The Beijing Olympics will be remembered for the stellar performances of Olympic athletes, from Michael Phelps to Usain Bolt.  It will also be memorialized for its top-flight athletic facilities and venues.  What may not be remembered, however, is the Chinese government’s disdain for basic human rights.  While there was wall to wall coverage of the games, there was only a small fraction of that coverage reserved for discussion of the Chinese government’s policies.  Particularly noteworthy, China’s “re-education” program has barely registered in recent news. 

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New Jersey’s District 3: A Democratic Pick-Up?

By Michael M. Shapiro

Much of the talk in New Jersey regarding contested Congressional seats this Fall has centered around District 7, where Democratic Assemblywoman Linda Stender is running against Republican State Senator Leonard Lance to fill the House seat vacated by retiring Republican Congressman Michael Ferguson (R-7).

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The Wounded Warrior Workplace Initiative

By Michael M. Shapiro

Assemblyman Bob Straniere, a conservative Republican running for the 13th Congressional District seat in New York, recently announced the Wounded Warrior Workplace Initiative, a proposal to encourage the hiring of wounded veterans or their families by members of Congress and congressional candidates. As part of the Wounded Warrior Workplace Initiative, Mr. Straniere has created The Straniere Pledge, to hire wounded veterans or members of their immediate family for at least one-third of his congressional staff.

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Will Councilman Hsing Decide the Seventh District Race?

By Michael M. Shapiro

The Seventh Congressional District in New Jersey is one of the most hotly-contested races in the state and throughout the country this year. This is due, in part, because Assemblywoman Linda Stender narrowly lost to Congressman Mike Ferguson in 2006, and Ferguson announced he would not seek another term. Stender now faces Republican State Senator Leonard Lance in the upcoming general election, and Michael Hsing.

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It’s The Secrecy, Stupid!

By Michael M. Shapiro

Rutgers is, once again, making news; however, this time it is not favorable. The Star-Ledger recently reported that Rutgers head football coach, Greg Schiano, negotiated a number of side deals which would induce him to remain committed to the university.

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A Troubling Sign For New Jersey’s Economic Future

By Michael M. Shapiro

The New Jersey Policy Research Organization, the think tank of the New Jersey Business and Industry Association (NJBIA), recently released a study of New Jersey’s business climate. The study included a telephone poll of 249 business leaders as well as interviews of 29 New Jersey and out-of-state business and government leaders. It also provided 37 policy recommendations for New Jersey based on other states’ best practices. The results of the study are a troubling sign for New Jersey’s economic future.

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A Victory For “Pay to Play” Reformers

By Michael M. Shapiro
Last month, the Appellate Division of the Superior Court of New Jersey issued a decision in In the Matter of the Appeal by Earle Asphalt Company, a case involving the owner of a road construction business and his political contribution to the Monmouth County Republican Committee in June 2007.

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