The Many Faces of Jon Corzine
Yesterday, I attended the Mercer County public hearing on the Governor’s toll plan. In my view, press accounts have not portrayed the complexity of the issues, the process, or the people involved. Bowing to the yahoo “pigs fly” faction of NJ 101.5 talk radio, media accounts have failed to honor or convey the dignity of the democratic deliberations (at least the hearing in Mercer). As they say, a picture is worth a thousands words – photo’s convey more subtle meanings lost in the dominant media narrative.
(Full disclosure: while these photo’s and captions may appear partisan or support the Governor, readers are advised that I oppose the toll scheme and other elements of the Plan and have been a strong critic of the Governor.)
The Governor’s staff opened the hearing, forcefully set the tone and established expectations: respectful, thoughtful and civil dialogue.
The Governor immediately reinforced the message showing respect, humility, and sincerity.
Democrats representing the Mercer County area spoke with constituents before the hearing began. Their presence reinforced the seriousness and lent gravitas to the proceedings. They avoided partisanship. (from left: Assemblywoman Greenstein (D/14); US Congressman Holt; Assemblywoman Watson Coleman (D/15); Mercer County Executive Hughes)
The finest and most uplifting spirit of citizenship was alive and contributed to a dignified conversation.
Elected Republican representatives of the area tended to be partisan, divisive, and offered several misleading criticisms. Freshman Assemblyman O’Scanlon (R/12) was taken to task by Corzine.
Senator Jennifer Beck (R/12) speaks. Corzine strongly objected to her misleading analogy comparing the plan to paying off deb with a credit card.The Governor made a forceful presentation. He listened to critics, revealed vulnerability and some sense of humor, and showed many complex faces. Here are a few:
As an athlete, in the big games, you strive to leave it all out on the field.To his credit, the Governor left it all out on the field yesterday.
Hi Wolfe,
Nice pictorial essay. I love the picture of the woman asking her question. My husband went to the Passaic County hearings on Thursday and said the tone there was a little different,. A lot of the folks had not gotten the memo that this was about his toll plan–they showed up to gripe about Passaic County issues that had nothing to do with the monetization program. Interestingly, a former Republican freeholder candidate and borough councilman from Ringwood tried to take on the Gov. on the toll plan numbers. The Governor dispensed with him quickly by pointing out that the naysayer was only looking at the expense side of the ledger, and finished him off by pointing out that his talking points had come from a certain Republican Assemblyman’s brochure opposing the monetization plan.
I don’t know enough about his proposed plan to offer an informed opinion, but in general I don’t like the idea of privatizing things like this.
Keep up the good work of keeping us informed!
So they ran a nice meeting with photo ops.
What about the real presentation?
The pension enhancements of 2001 were not a reduction in the retirement age but a change in the benefit formula.
$25 billion as the pension underfunding is way off and any actuary not on the NJ payroll will tell you it’s closer to $50 billion.
$58 billion for health benefits was up from $45 billion the governor
quoted (to me actually at a town hall meeting in Union) last year.
They’re wilding guessing on this number too.
Absolutely no thoughts or comments on the how much money will be
lost through raising the tolls. This is a marketing issue and you’d can’t say double tolls and expect revenues to double as well.
Put away the camera and take out the calculator.
Wolfe, you aspiring photo-journalist!
Some great shots here. Thanks for keeping us up-to-date visually as well as mentally – would have loved to have heard the Corzine/Beck exchange, as I too feel we are borrowing against our own souls for this plan.
What’s so wrong about a simple gas tax increase, so long as it is strictly dedicated to transportation and nothing else? We are, after all, the third (or so) lowest gas tax in the nation, and FAR behind neighboring states. I’ve always felt “user taxes” are a fairer means to deal with this type of need, and it would also encourage better mileage, carpooling, use of mass transit, etc.
Corzine comes to my world next Saturday, can’t wait to see the dog and pony show in person – I’m sure Alison McHose will fill in the Jennifer Beck parts just fine. (But Beck is way hotter!)
Keep up the good work, Wolfe!
Wolfe, I’m not quite sure what to think about your photo presentation. Sure seems like you are looking for sympathy for Corzine in spite of your disclaimer. Maybe if he started to cry like Clinton has been doing……
Let me take the comments in reverse order:
1. ggibsco – I’m not sure what to make of them either, that’s why I posted them for readers. I don’t know if the photo’s convey this, but I can tell you that I saw a man who was honestly struggling. I have compassion for and respect that – far more than I respect the formal office of Governor. You should not confuse compassion and respect with sympathy. And the Clinton crying is a irrelevant cheap shot (I do not support Clinton).
2. bryamaniac – I do aspire to take quality photos (these are low quality – I am learnign to use the equipment I have and about to purchase higher quality equipment). I agree with you on the gas tax and would expand that to include a broader fuels or carbon tax. Tolls are the LEAST efficient and MOST inequitable revenue mechanism now on the table.
3. jbken – I agree with you that there4 is lots of quanbtitative materail on the table given teh presentation. I promise to write about that, as I am not initimidated by
Let me take the comments in reverse order:
1. ggibsco – I’m not sure what to make of them either, that’s why I posted them for readers. I don’t know if the photo’s convey this, but I can tell you that I saw a man who was honestly struggling. I have compassion for and respect that – far more than I respect the formal office of Governor. You should not confuse compassion and respect with sympathy. And the Clinton crying is a irrelevant cheap shot (I do not support Clinton).
2. bryamaniac – I do aspire to take quality photos (these are low quality – I am learning to use the equipment I have and about to purchase higher quality equipment). I agree with you on the gas tax and would expand that to include a broader fuels or carbon tax. Tolls are the LEAST efficient and MOST inequitable revenue mechanism now on the table.
3. jbken – I agree with you that there is lots of quantitative material on the table in the presentation. I promise to write about that, as I am not intimidated by data or analytical arguments.
I had completely different objectives in this post – that were to convey the human aspects; portray the positive aspects; to take issue with the media coverage; and begin push back on the yahoo faction.
Fair enough.
to nohesitation: would be glad to see information on the health benefit
cost numbers. They were $45 billion last year and are now $58 billion.
As to pensions, I’ve got that covered and hope to have something up here on NJVoices this week.
But in questioning the numbers I ask you to recall when Corzine in his presentation said the increase in benefits in 2001 was due to a reduction in retirement age from 60 to 55. As a pension actuary this floored me. Not even my thickest client could be led into such a bonehead misinterpretation.
The change was in the benefit formula cutback which was changed from 60 years to 55 for the 100% of pay benefit. You can check the PERS handbook (July, 2005), page 11 and the Service Retirement Age is 60.
Incidentally, I found out about this benefit change when I was doing a divorce present value calculation for a state employee. Nothing in the mainstream media about that ‘enhancement’ being enacted, much less considered.
The many faces of Jon Corzine was an excellent start. Remember the face of Jon Corzine when he was running for election. He promised to cut wasteful spending and get the states financial house in order. His next face as Governor was “I don’t see a bond issue I don’t like”.
I had hoped that a Governor with a strong financial background would be good for the state. I was so wrong. The state budget has gone up, borrowing increased and now a plan based on financial trickery will put the state deeper into debt.
His “Dummy Corporation” will be a front for the largest debt issue the state has ever seen. He plans to borrow $38 billion to pay off $16 billion in state debt. Any second grader knows if you take 16 from 38 you get 22. That’s $22 billion of our money he plans to blow on more spending. His new Dummy Corporation will require a host of new employees with bloated salaries, pensions and benefits, all paid for with our money.
The current budget which he plans to freeze for “one year” already requires $3 billion in borrowing just to cover current expenses. The $16 billion in the so called debt reduction will be eaten away in less than six years.
We were warned by his former wife who said, “don’t believe him, he will say anything to get his way”. God bless her, she was right, to bad more people didn’t listen to her.
Our great great grandchildren will remember his face when they are paying enormous tolls and are stuck with a monstrous debt to pay off.
Remember Elmer Gantry – You could say the same about him. Corzine is pushing a failed strategy because that what he and his set of insular advisors know how to do. In 1993, at Goldman Sachs & Co. Corzine helped to invent a security that offered Enron Corp. and other companies an irresistible combination. It was called Monthly Income Preferred Shares (MIPS) It was designed in such a way that it could be called debt or equity, as needed. For the tax man, it resembled a loan, so that interest payments could be deducted from taxable income. For shareholders and rating agencies, who look askance at overleveraged companies, it resembled equity. We know how it worked out for Enron. We are know seeing how the rest of Wall Street inventions are working as the world credit markets are imploding. Also can’t discount the fact that about a billion in fees will be paid out if this deal goes through. That’s enough to buy the endorsements of allot of ex-government officials who are in the business of collecting fees. If Corzine were smart he’d get rid of the tolls, and raise the gas tax . He’d be popular for unburdening harried commuters of the toll hassle and he could sell the gas tax as an incentive for conservation. He might not get reelected but he will have done the right thing and not sold of New Jersey’s assets.
jswamp – man, you’re right on point again.
Here’s some alternatives I posted yesterday on Corzine’s “No easy way out” editorial post:
Posted by nohesitation on 02/10/08 at 2:47PM
Gov – your title plays off a Tom Petty favorite of mine (“there ain’t no easy way out”), but lets hope you don’t share the sentiments of the rest of that song, i.e.
“Gonna stand my ground – and I won’t back down”
There’s still plenty of room too manuever within the 5 alternatives you laid out. Right now, I see a lose/lose scenario unfolding, where draconian state budget cuts are traded for support of the toll plan. This pits toll payers against state workers adn those dependent on state services.
There is a way out of this divisive dynamic: There are additional options as well that you did not lay out, such as.
1) share the burdens more equitably – on both the revenue increase and expenditure cuts. I will lay out several options;
2) Abandon the road expansions and shift funding towards mass transit and fix it first;
3) abandon the tolls, and instead pledge to eliminate toll booths over 5 year period and replace toll and transportation infrastructure investment revenue with a fuels tax;
4) make globalization work for NJ – look to the Port as a source of revenue – on a cargo containers or value shppied basis;
5) Levy surcharges on windfall oil company profits
6) Make energy deregulation work for NJ – levy surcharges on windfall profits by NJ energy. Prohibit pass through to consumers in light of skyrocketing energy rates.
More to follow.
Wolfe
TomTallTree – the “public benefit corporation” has not been explored.
Corzine emphasized multiple levels of transparency, accountability and public oversight.
But he also said that democratic control over the finances would be a “del breaker” for Wall Street.
So there is an obvioous HUGE contradiction that no one is focusing on.
FANNIEMAE adn SALLIEMAE are public benefit corporations, but few would argue that they aserve in the public interest of the intersts of low income or needy students.
Mangers manage in the interest of managers. Non profit does not mean anything.
o.
‘Bowing to the yahoo “pigs fly” faction of NJ 101.5 talk radio”
Could have been said 250 years ago about another protest for excessive tax act:
“Bowing to the yahoo “Boston Tea Party” faction of the Sons of Liberty”
Don’t think people weren’t standing in Boston harbor laughing their butts off about a few folks dressed like Indians causing some mayhem.
And look where that go them.
Dear KalNJ
Yea, you’re the new suburban revolutionaries! Right!
Please, to compare you selfish ass with the real thing is despicable.
And if you really want an historical example, its not the Boston Tea Party, it’s Shea’s Rebellion.
Is Steve Lonagan about to pledge his “Life, Fortune, and Sacred Honor”?
Which one of you has the courage to stand and pay a price for your convictions?
Dear Mr. Wolfe,
I compared the act, not the situation and you, Mr. high-and-mighty–I-got-my-own-column, took my words out of context.
By the way of the “selfish ass” remark – Resorting to name calling and personal bashing only reflects on your low IQ, inability to hold a coherent conversation, inability to conjure a valid point and your infantile character.
Dear KalNJ
I apologize -n youb are correct.
No need for persoanl attacks.
I went over the line.
Some things are so egregious they make my head explode.,
Okay guys,relax…..Just want you to know that living here and dealing with these politicians in NJ is making my head EXPLODE. And I thought getting out of New York with that state’s sick, twisted, insane executive/legislative branches of government would be an improvement……..Well, color me quite the genius, huh?
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