NJN News; Thursday May 2, 2002

NJN News is made possible by PSENG, serving customers, strengthening the business community and investing in New Jersey's future. First Union, serving the financial needs of individuals and businesses from Connecticut to Florida. Verizon, communication solutions designed for the people and businesses of New Jersey. Horizon Blue Cross Blue Shield of New Jersey, making healthcare work for New Jersey's businesses and individuals. The New Jersey Education Association, people who care about your kids and by the Geraldine R. Dodge Foundation. Governor McGrevy kills his plan to end the so-called No Tax Agreement with Pennsylvania.

The ousted head of the Turnpike Authority testifies about the Easy Pass controversy. The personnel commissioner continues to defend layoffs and early retirement plans to help save the state money. Why hundreds of immigrants rallied at the state house? And New Jersey joins in a national day of prayer. NJN News, for Thursday, May 2nd. The McGrevy administration has killed a controversial budget balancing proposal that opponents said would have resulted in income tax increases for thousands of South Jersey residents. Governor McGrevy now says he won't break the tax compact with neighboring Pennsylvania. That would have resulted in the border tax hike. Statehouse correspondent Jim Hooker has the story. McGrevy gathered a number of Democratic lawmakers from South Jersey into his office to give them credit for coming up with an alternate revenue source to the $37 million he planned to take in by charging Pennsylvania's who work in the Garden State, the New Jersey income tax rate. He would have done that by breaking a longstanding compact with Pennsylvania.

A compact he did not need legislative approval to get out of. The problem as many in South Jersey saw it was if Pennsylvania responded in kind as threatened tens of thousands of South Jersey residents would see their income taxes rise $1,000. More if they worked in Philadelphia with its 3.9% wage tax. The recommended initiative set forth here today most readily replaces the monies that would have been garnered by virtue of ending the Pennsylvania New Jersey compact. That approach involves ensuring income taxes are paid by partners in limited liability and certain other corporations. As the governor and Democratic lawmakers explain the proposal, it involves ending what is now essentially an honor system for payment of income taxes against profits and dividends. This in favor of deducting those taxes before profits and dividends are paid out. This is a great day for celebration.

State Senator Wayne Bryant is a South Jersey Democrat who also co-chairs the Senate Budget and Appropriations Committee. In recent weeks he had warned publicly that the administration's plans to break the compact with Pennsylvania could be a deal breaker on putting through a state budget in an evenly divided Senate. There are other states who do withhold that tax and guarantee that money to stay in a state treasury. And it started to look like something that had actually meet on the bones. This is democracy at its best, which is the exchange of ideas, which we've had the ability to do with this administration and the treasurer who's been outstanding. In a statement, Republican State Committee Chairman and Mammoth County Senator Joe Carillo syndicated the alternate revenue source identified by Democrats was really from the billion dollar pot of money, McGrevy envisions from closing corporate tax loopholes. It is disingenuous to tell the public that you have found a new revenue source, Carillo says in the statement, when it is contained within a proposal that has already been identified to fill a different budget hole. Republican Senator Diane Allen said in a separate statement, quote,

as every hardworking family in New Jersey knows, even the governor can't spend the same money twice. Senator John Mathieson, who's in a three-way primary race with Allen for the U.S. Senate, and who also opposed ending the compact, sees partisan politics behind today's state house maneuver. The governor has made announcement in a partisan way that he's going to end it. The people in South Jersey aren't partisan. The people in South Jersey are just concerned that money is going to be taking from them in a way that was different than other people around the state. Democrats said the alternate plan they proposed today, which needs legislative approval, was not part of the administration's corporate loophole plan. They said the idea came in part from a New York Times article on tax avoidance, published last month, Jim Hooker, and JN News, the state house. The man who oversaw the installation of the easy-pass system, conceded today that the program was oversull to the public. Former Turnpike executive director Edward Gross told an assembly committee that 1998 press releases saying the system would cost taxpayers nothing where a mistake. Still, he defended the program. Michael Aaron reports.

The committee chairman wanted to know whose idea it was that the $500 million system could be financed largely by fines collected from toll violators. Gross, the top man at the Turnpike for seven years until Governor McGrevy ousted him, said former Transportation Commissioner Frank Wilson and the Turnpike's chief engineer at the time pushed the idea. The poor results, Gross, said, were because the collection system was late getting started and has never been fully implemented. So it seems, at least from my perspective, abundantly clear that at a fairly early stage, 1998, that this was not likely to work out as planned. Gross said the three toll road agencies always knew that if violation revenues were not sufficient, they'd have to come up with the balance themselves in 2008, and the meantime they saw a great system taking shape, one that has brought convenience to many motorists. So long as there is progress, as you see, we see progress, we are better continue having continuity than stopping the project. But the violation projections were off by 900%. The system is now $300 million in deficit, a number that's growing.

Gross blamed 200 million of that on easy passes popularity. Instead of a projected 35% market penetration, 55% of the motoring public has signed on. Committee Democrats weren't satisfied with that. Recalling old press releases that promised a self-financed system. And when you have a projected revenue of $450 million in your release, and we're operating at a $300 million deficit, that's a debacle. Gross agreed the Whitman Administration's press release overstated the benefits. I think that was a mistake. But defended the program itself when another Democrat asked if any other state has relied solely on violation revenue. It was both creative and a lot more work to try to rely upon those that are dishonest, to pay for as much of the system as possible, than doing a traditional work. Creativity is good in art, creativity is good in lots of things, but I'm not so sure creativity is good in financing to this level.

Michael Aaron, NJN News, Trent. Personnel Commissioner Ida Castro told the Assembly Budget Committee today how the governor's early retirement incentive program will help save the state $46 million next year. But as Marie DeNoia reports, assembly members had questions about the details. According to the nonpartisan office of legislative services, the state now employs 67,252 people, not counting higher education and county court staff. That's 3,000 more state employees than last year. Today, state personnel commissioner Ida Castro told the Assembly Budget Committee the administration has laid off 350 workers. More than 100 employees now under review, and she explained the hiring of more than 900 direct line service providers. There are now nearly 900 additional employees who have been hired to provide direct services where it counts.

Despite this increase, we still reduce the size of the executive branch workforce by 100 positions. This year, some 17,000 state workers would qualify for the governor's early retirement package proposal. And Castro says the state is counting on a small percentage actually taking the option. If we backfill about half of that, and if we do so at 65% of the cost that we currently incur, we will have a net savings of $46 million. The administration's early retirement incentive program must first be approved by the legislature before it can be enacted. Today's Assembly Budget Committee offered a glimpse of some of the issues lawmakers will be looking at. Unfortunately, that proposal does not include teachers. Could you please tell us why teachers are not included?

There is such a teacher shortage that it's reaching crises proportions. But committee members on both sides of the aisle said they'd considered giving municipalities the chance to decide if offering the package to local teachers would benefit their budgets despite the teacher shortage. We believe this could be a win for them at the board of education level, at the municipal level and the county level. Why don't the state give the option to the local level so they can realize some real property savings? Castro asked the committee to consider that the last time the state offered early retirement in 1993, it learned an expensive lesson. Before municipalities in good faith came forward and said, we believe we can do this. The truth of the matter is that they weren't able to. The truth of the matter is that there's a liability of about $167 or more million dollars. Marie DeNoia and JNUs, the state house.

Hundreds of immigrants marched on the state house today. The group wanted to draw attention to what they say is one of their biggest problems, obtaining a New Jersey driver's license. Jerry Henry reports. They were mostly Latino or Spanish-speaking immigrants who took their concerns to the streets with the support of labor unions and clergy. The group points to the events of September 11 as the reason why it's become more difficult for immigrants, especially those who are undocumented to get a New Jersey driver's license. For example, before September 11, immigrants could go to any DMV office for a license. Now there are four, all directly connected to INS. However, they say it creates wrong weights and sometimes days to get processed. You go into a motor vehicle and send you from line to line to line. You look like a pinball machine. You can stay there for hours. You got to go to Wayne or Trenton. There's lines at four o'clock in the morning just to get in in some places. Sometimes you're not even attended to that day. And the people who come here to Trenton, all the way from North Jersey, Elizabeth or areas, they have to take a train here, a bus here just to get here and sometimes they don't even take care of the business on that day.

The Jersey's assistant secretary of state knows that don't got to was a descendant of immigrants was a guest speaker at the rally. Don't got to work for the hotel employees union in Atlantic City. She says she's familiar with the problem. September 11 was a tragic day for all of us. And it's even more tragic now for these immigrants who, especially this group that's here, who are here all they're trying to get is their respect and their piece of the pie and unfortunately because of the tragic events of September 11. When the country was moving towards Amnesty before September 11th, now it's going to be a little more difficult for them to be able to have their cause heard and have something done about it. And if you look at this just for security reasons, there's supposed to be 10 million undocumented workers in this country. That's too many people running around that the government don't know about. For me, what are we going to do, throw them all out? Let's document them. The group is also calling on lawmakers to provide services and languages other than English and state agencies. Jerry Henry, NJN News, Trenton. There's more to come on NJN News. New Jerseyians take part in a national day of prayer.

I'm Sarah Lee Kessler, a medical milestone for Middlesex County Hospital as it celebrates its 100th birthday. I'll have the story. If you have a comment, call 1-800-Jersey-1 or our email address. NJN News at NJN.org. Rariton Bay Medical Center is marking a big birthday. It's one of two dozen New Jersey hospitals to reach the century mark. In tonight's health watch, what sets this hospital apart from so many others?

Health and medical correspondent Sarah Lee Kessler has the story. It's not the hospital's sleek looking exterior. Lots of hospitals can boast that. It's not the centennial signs or welcome banners. It's the hospital's fiercely independent spirit and commitment to its local residents. There's been a great deal of emphasis on everybody being university hospitals, being medical centers, and we are indeed a Rariton Bay Medical Center. But I think what we are basically at heart is the community hospital. And I think these pictures, these books demonstrate that. That's been the mission of this institution from its beginning. On May 2nd, 100 years ago, the hospital opened its doors with seven doctors, a slightly larger nursing staff, and operating rooms lit by gas chandeliers. Take it from here. This 88-year-old hospital volunteer remembers the early days fondly. Adeline Smith was treated for a fractured ankle here six decades ago.

So they put me in the ward and what you call a ward is about 20 beds close to each other with a nurse's station. You don't see that anymore. Today, Rariton Bay is licensed for 501 beds, making it one of the largest hospitals in the state. Artists Francis McGinley, who created this mural, celebrating the hospital's centennial and historic links to Perth Amboy, says the Medical Center is the mainstay of this city. You will find people that are generated to it. They come to it. They look for help here. It's not just, oh well, there's a hospital here. It still functions the way it did years ago. If you pause to read the early minutes and letters dating back to the 1920s, one of the most fascinating things you notice is that the things doctors complained about and were concerned about back then. Well, some of those things sound pretty fresh even today.

Who does what? When? Who's eligible to do what? This so fascinating has been this hospital's steadfast determination to stand alone when the merger fever of the 90s spawns 17 hospital systems in New Jersey. Of the state's 108 hospitals, it's one of only 46 independence. We want to be in our state of the yard, but our goal is very local. It's to deliver care and commitment, one patient at a time. Sarah Lee Kessler, NJN News, Perth Amboy. New Jerseyans joined the rest of the country today in observing a National Day of Prayer. The declaration dates back to 1775 when the Continental Congress asked the colonies to pray for wisdom in forming the nation. Ken St. John reports on some of the prayer services around New Jersey. The theme of the 51st Annual National Day of Prayer is America United Under God. Governor McGreevy issued a proclamation in response to this day that marks the eight years in today a prayer New Jersey bill was signed into law.

The day takes on heightened significance as Americans try to heal from the tragedies of September the 11th. Fortify all who aren't resisting the inhumane and cruel societal attacks in their determination to survive and prevail in the midst of terror and wanton destruction. Our president, praise God, have sent you this day. Our governors have sent you today and all the officials have sent you this day. It's beautiful just to be American. Amen. Praise God. There are hundreds of events observing the day of prayer across the state like here in Melbourne, Essex County, where some 60 people gathered at the first Baptist Church to pray for everything from protecting our troops overseas to strengthening families. Intrented in front of the state house steps, approximately 50 people gathered to pray and hand out literature. The Interfaith Service also included some state legislators who stressed the need for world peace and continued prayer. Finally, at some 50,000 communities nationwide at noon, organizers read the prayer for America by Dr. Lloyd Ogelby, the U.S. Senate chaplain.

We commit ourselves to be faithful to you as the sovereign of this our land. And as our personal Lord and Savior, amen. Kent St. John, NJN News, Vineland, Cumberland County. Rich is here now with the preview of what's ahead in his business report. Rich? Coming up some good news for thousands of natural gas customers, one utility will be putting checks in the mail. And when you dial MCI, get ready to pay more. Details are next in business. Business news, a new rebate for thousands of gas customers in New Jersey. South Jersey gas received state approval today to give a credit to gas customers.

The BPU approved the utilities plan to refund more than $17 million. That's about $58 per residential customer. Rebates for commercial and co-generation customers are even higher. The rebates come as a result of the warm winter and lower wholesale gas rates. South Jersey gas provides service to about $290,000 residential commercial and industrial customers in seven counties. Higher rates, however, are headed down the line for millions of MCI customers. The company is raising long distance rates. The nation's second largest long distance provider is increasing per minute rates, monthly minimum charges and Sunday rates from 10 to 20 cents a minute. It's also charging more for directory assistance calls, $2.49 each.

And I'll say the company is trying to get people to enroll in one price long distance plans. Most of the rate increases take effect June 1st. The number of companies announcing plans to cut jobs was higher in April. American companies announced plans to slash 112,000 jobs last month. That's according to the Outplacement firm Challenger Gray and Christmas. It's up about 10,000 for March. The organization says more than a third of the announcements came from the telecommunications industry. Keep in mind these are plans to cut jobs, not actual job reductions, which often take several months. Economic news today involving the nation's labor market. The government says the number of American seeking jobless benefits fell by a seasonally adjusted 10,000 last week to 418,000. The lowest level since March 23rd. Another mixed close on Wall Street for the second day in a row, the blue chips and the plus column, the tech sector retreated better than expected report on factory orders helped somewhat. The close, the downed Austrials rose 32 points to 10,091 among the broader markets. The IMX added seven NASDAQ lost 32 points.

S&P 500 gave back two in the credit market. The 10 year note is up 12 30 seconds. It's yielded at 5.11%. Okay, that's business. Thank you, Rich. Still ahead on NJN News. How the closing of a Northern New Jersey Boys and Girls Club is affecting hundreds of youngsters. The story when NJN News continues. A boys and girls club in Paseyek has been forced to shut down temporarily due to financial constraints. The closing has left many children with working parents in the area no place to go after school. Desiree Taylor has the story.

The abrupt closing of this Paseyek Boys and Girls Club, the oldest in the state, has many parents concerned where their children will go for safe recreation and fun. Yesterday was raining, the kids had no way to go. You know, it's terrible. To me, it's basically a tragedy. They stay out of trouble, they get help tutoring, and they don't want to run around these crazy streets. Thomas Kobelars, the president of the Boys and Girls Club of Paseyek, says they were forced to shut down Monday night when they could no longer afford to pay the five member staff's workman's comp insurance. We're trying to do a job on the very severe adverse financial conditions. You know, and we serve, you know, we serve like 2,000 kids a week. Mayor Sammy Rivera says the closing is unfortunate, but he says the organization's officials could have done more to secure funding to prove his point. The mayor presented NJN News with a copy of a letter he says was sent to the organization's president in March, detailing thousands of dollars in block grant money that is available to them in the city council's 2001 budget. Once their financial records have been audited. He's always sad to leave it to have a program stop.

But I believe that the Boys Club failed to do their part in securing funds for the program. Mayor Rivera says he questions the management of the Boys and Girls Club, claiming they're sitting on more than $133,000 in grant money that hasn't been used. But Boys and Girls Club officials say even if they do get access to those funds, it won't help keep them afloat because they say the funds are allocated for specific projects and cannot be used for operating expenses. Yeah, there is some funding available, like I said, but because we are not able to pay our auditors, you know, we can't get access to the CDBG money. With 23 affiliated Boys and Girls Clubs of America around the state, Kobe Lars says competition for funding is tough. However, the organization Central Office in New York says of all their New Jersey affiliates, only the Pasey Club is facing serious financial hardships. Kobe Lars says one solution would be to take in another tenant in the building to bring an additional steady income.

And although the future is uncertain, he says he's optimistic they will persevere, like they have so many times in the past during the course of the club's 96-year-old history, Desiree Taylor and JN News Paseyik. And that's NJN News. I'm Kat Madaghan for Rich and all of us here. Thank you for being with us. We look forward to seeing you again tomorrow. You You

You You You

You You You

You You