New Jersey Nightly News; New Jersey Nightly News Episode from 03/11/1982

Around. New Jersey and I can do with Don Torrance and can't get ahead. Good evening Governor Kaine formally floats his 6.4 billion dollar state budget to the legislature promising it will make things better. It supports Bill Perry has an eye to basketball the nets boxing and world championship figure skating and a giant step into the Information Age was made in New Jersey today. Like Waze communications. Governor Kaine formally presented his six point four billion dollar budget program to a joint session of the state legislature today. He said the pay as you go spending plan will Point New Jersey to a brighter future. It was standing room only as the governor made his way into the assembly chambers about 30 minutes later than scheduled to deliver his first budget message. The governor appeared relaxed as he told the packed chamber that the major goal of his spending plan is to improve and foster the state's economy and to balance the seven hundred thirty million dollar budget deficit he said he will not return to the use of fiscal gimmickry such actions in the past several years a larger standstill city chaotic condition

the state budget is the way we found. It would be wrong and I would not mortgage the future to satisfy the needs of the press. Governor Kaine said there is a need to improve the business climate in New Jersey. He's proposing a 25 percent reduction of the corporate net worth tax along with allowing businesses to take a $100000 deduction prior to calculating their tax. The governor also wants to reduce the business tax from 9 to 8 1/2 percent and he wants to increase transportation spending by one hundred seventeen point one million dollars. A 40 percent increase over the current fiscal year. The governor is also recommending a 46 million dollar increase for the corrections department 20 million of which will be used to renovate existing facilities to help ease jail overcrowding. This budget provides us with the money to start to rectify this problem and place state races in the state's case today where they rightfully

Thank you. Thank you. And in the area of education the largest increase by Sorry missed budget goes to public education. The money I have recommended the same increase in efficiency. The governor wants to increase aid to education by one hundred ninety three point two million for a total appropriation of 2 billion dollars. That's 65 million less than requested by the department. In addition the governor wants to spend seven point eight million to improve the state's image. And he recommended a 1.3 billion dollar appropriation for the Department of Human Services the largest in state government. The budget deficit is five hundred twenty seven million dollars inherited from the Byrne administration although the governor did not mention his predecessor by name. The remaining two hundred three million dollar shortfall is due to Governor Kaine's recommended increases in spending. The major sources of revenue to balance the budget under the new plan will come from a proposed 5 percent

sales tax on gas and cigarettes. The net money would be earmarked for transportation improvements in the state siphoning off 75 million of the one hundred fifty million utility tax revenue that traditionally goes to municipalities increasing college tuitions by 10 percent and increasing bus and rail fares by 25 percent. The governor concluded his budget message by challenging his opponents to present alternatives. He said his plan was not written in stone and he will remain open minded. He called his budget in effect event to the unparalleled growth of the state government with the emphasis on increased private employment opportunities. The governor's budget address will be broadcast in its entirety tonight at 8:30 on New Jersey network followed by an appearance with key Democratic leaders from the state assembly Don but immediately after the Cain address the Democrats held a news conference to give their reaction to what the governor wants. Senate President Carmen a wreck you know said the Democrats will take a stand although he gave no indication what that stand will be on the proposed business tax cut. He said the tax was based on profits of

corporations and that it would not stimulate the economy. It's mainly I think a bit of tokenism basically to respond to some commitments were made before the election that he was going to reduce corporate taxes having a so-called competitive edge of a half a percent. Over States to join this really is meaningless. And when I asked if the Democrats would support a five percent sales tax on cigarettes and gas Assembly Speaker Allen Carter turned the question around to one of Republican support for that tax. Certainly from our very cursory headcount. On that side of the aisle we don't do count we don't count heads as well on that side of the aisle as we do want to own son. But I would doubt if there are five to six votes for the governor's tax proposals one from with his own party. The Democrats would not be pinned down on any specific changes that they will recommend be incorporated in the

new budget plan. The state Senate today voted to replace or replace that is a permanent cap on budget growth of New Jersey's counties and municipalities. But a measure that would have provided some budget relief failed. That measure would have allowed counties and municipalities to extend the cap limit to six percent two times in a five year period and extend the cap limit to seven percent for the 1982 fiscal year. The cap law first an Act of 1976 restricts the growth of county and municipal budgets to 5 percent a year a figure many local and state officials say is too low. Senate Democratic leaders had hoped the two bills would be passed as a package but came up just two votes short of the cap extension all but another vote on that measure is expected soon. Supreme Court Justice William Brennan today suspended a lower court ruling that called New Jersey's new congressional districts unconstitutional. Today's ruling would allow the new districts to stay as they are until the case is heard by the entire court. New Jersey Republicans had to challenge the new districts on the grounds that they did not conform to the one man one vote doctrine. Earlier this month a three judge federal panel in Newark told the state

legislature it could not hold the election with the new boundaries as they were today suspension of that ruling would allow the election to be held. The Supreme Court might not hear the case until next fall after the election. Republican Congressman James corders says he doesn't plan to enter the GOP primary for the U.S. Senate race quarter outlined his reasons at a State House news conference. Diane doctor reports. Congressman James Corder the Republican 13th District representative since 1978 is staying out of the U.S. Senate race. Court had been considered a potential candidate for the GOP primary 5th District Republican congresswoman Millicent Fenwick and conservative Jeffrey Bill who was defeated by Senator Bill Bradley in 1988 have already formally announced their candidacies. Quarter said his decision was based in part on the strength of that opposition. The state has been vacant since last week when Harrison Williams resigned. The question for a quarter was whether he might still consider accepting a gubernatorial appointment to the seat for me.

You know I would like now to be appointed to the United States Senate. And I just made a statement that I'm not going to seek my party's nomination for the United States Senate. I think it's rather inconsistent I think my sights are now on other areas besides the United States Senate. The governor's office says courters name has not been removed from the list of candidates because the governor is still studying his options. Corridor also says he hasn't made up his mind whether to run for re-election to Congress. His indecision is partly based on the current uncertainty over the state's congressional districts. The Democrat sponsored redistricting plan was thrown out by a three judge federal panel and the Democrats are appealing that decision to the U.S. Supreme Court. Under the Democratic plan quarter and Seventh District Republican Marge Rocca would be forced to run against each other in a new fifth district. Quarter says he'll decide on his plan when the new district lines are firmly and legally in place in Trenton. I'm dyin doctor. A sixth Democratic candidate for that U.S. Senate seat will join the race tomorrow 58 year

old Frank Lautenberg of Montclair plans to seek the Democratic nod in the primary. A lot of Burgas Board chairman of Automatic Data Processing and a member of the Port Authority. He has never held elective office. Don the 11 branches of the United States savings bank opened this morning with a new name a new warden a new identity. As of today U.S. Savings has merged with Hudson City savings. It was the first federally assisted savings bank takeover in New Jersey. Sandra King has more. US Savings branches today look no different. The staff was the same except for two top officers and the US Savings signs were still in place. Only this notice on the banking floor show that something had changed. United States savings which suffered 15 million dollars in operating losses last year would be no more. It's 11 branches now outlets for Hudson City savings it's 570 million dollars in deposits. Now part of Hudson city's assets approvals for the precedent setting merger came from both the state department of banking

and the Federal Deposit Insurance Corporation made possible on an emergency basis by the supervisory merger legislation signed earlier this month by the governor. It allowed us savings banking services to continue without interruption while protecting its surplus and deposits. And the deal was sweetened by 65 million dollars in aid from the FDIC without the merger or U.S. Savings had seemed sure to fold. Took some tough decisions would have faced this the worst thing that would have happened had to liquidate the banks. Returning vets. Would have had to merge perhaps with a commercial bank or even worse an out-of-state bank were able to keep it in a Jersey institution by merging it with the help of the New Jersey institution just as thrift institution the country Harding has come up against some of this is a question of. How well they can weather the storm. And summer weather better than others. The present city has US Savings Bank could. Do that and. That is the picture at this point.

The merger won't affect touchin city's position as the second largest savings bank in the state but it will increase that banks are plus branches and deposits and all the merger is costing the FDIC 65 million dollars. If U.S. Savings had failed the FDIC would have had to pay one hundred sixty eight million dollars to U.S. Savings depositors. I'm Sandra King. I'll fight in a breakfast line led to the death of a 19 year old inmate of the Passaic County Jail yesterday. Floyd Nichols of Patterson was killed as a result of the fight that started when Nichols allegedly pushed 27 year old Julio edge of the area of the saying out of line. That's an area according to jail officials pushed back. Nichols fell and hit his head on a wooden bench breaking his neck. He was pronounced dead at a local hospital Passaic County Sheriff Edward Engle harch intended today meanwhile of the fatal fight was the direct result of overcrowding at the jail and the tension it has caused. The bribery conspiracy trial of suspended Camden County Superior Court Judge Peter Corish continued today in Toms River where the state's key witness began his testimony this

afternoon. Brenda Flanagan reports. Former Camden attorney Louis Caggiano today testified that Judge Caruso used him as a contact to set up an alleged bribe solicitation. He was arrested late last year and indicted on charges he accepted money for granting lenient jail sentences focusing on the case of convicted assailant Eugene but Charlie. Prosecutor Charles Buckley led Caggiano to describe how the alleged bribe was arranged. The judge rules he asked to get in touch with the celli family and offered to get Eugene but Shelley's five year term suspended in return for $20000. The judge mentioned to me. That man should be able to play. He had any competition property. He had money in the bank that he should pay $20000 Caggiano said he made the offer to the Charlie's brother Phil. But I told him. Not to be discussed if he was interested it would cost $20000 and it would be done.

Prosecutors say but Shelly agreed to pay $10000 and that judge Caruso subsequently suspended Eugene the celli sentence Caggiano allegedly served as the middleman in two additional bribery schemes. Lewis will take the witness stand again tomorrow when the prosecution plans to introduce some key evidence. Tape recordings of conversations between Caggiano and Judge Caruso the tapes say prosecutors will prove their case the defense hopes to soon begin cross-examination at the Ocean County Courthouse in Toms River. I'm Brenda Flanagan. There's a craps tournament underway in Atlantic City and the host hotel casino says it's the richest one in history. It's also only the second such tournament for Atlantic City but they may become a major marketing tool for the resort in years to come. Dan Hodgson reports. The first gambling tournaments were held in Las Vegas just four years ago. But well over a thousand people will put down a $250 entry fee and seven hundred fifty dollars to bet with over the next three weeks for what may turn out to be just one hour at the craps table. Players We talked with said the excitement of head to head competition was what they liked best. The two players

from each table with the most money left after one hour advance to the quarter finals. And if they survive two more rounds they play again for the first place purse of $75000. Our tournaments have proven that people like to have a new kind of fun in a casino and I repeat factor and our gaming tournaments around the country is 62 percent. Which shows you that. People enjoy themselves they come back again. Romero's international gaming promotions has contracted with Resorts International to put on seven more tournaments over the next two years. IGP could grow $500000 in fees alone in the next three weeks. And for resorts the incentive is in attracting people to come in and watch and what they win when tournament players spend two or three days at the casino. Besides the hour or two of competitive play. The players say when it craps you need first block. And then the right combination of superstition. I don't I don't throw dice before dice turning the bit after the sermon. It's all I do. I wear my

snake and look out for the right of a guy with a fat hand so bad again bet on. Why is it. They seem to have a soft touch and they can handle the bass a little bit better when the dice roll off the table. I take off on my bet. I take all four of the three rolls and then I go on again and seven out of 10 times. I believe that they seven out when they try to. If they get a new pair of dice I believe that they 7 out. Many players today won the right to advance to this week's quarterfinal round not by winning any money but just by losing less than the others at their table. But the more discerning players state tournaments competition provides a much more refined experience than normal table play except for one thing I think you ought to change the name to a 7-Eleven or something because you use a craps. It sounds like a dirty word in Atlantic City. I'm damn hot. Today marks a first for New Jersey and New telephone transmission system that uses Beings of Light went into service between Newark and New Brunswick today a lot of Watts has

more. The historic call was made between New Jersey bell president Rocco Marano and Edward Blaustein president of Russia. When our city heard in Iraq five times I regret meeting down there. It's perfect here there's no lightweight cables working great. This call was transmitted over the 28 mile area by pulses of laser light traveling through a hair Finch brand of glass fibers. The cable about the size of your finger can carry about 50000 calls at the same time. Bell officials predict the Lightwave system will eventually replace the copper cables because it's more efficient in both size and performance. This should give you a good idea of how much space is saved using the Lightwave system. It's also more efficient because it can carry more information than the conventional copper cable. It takes almost three of these to do the job of this one. And what is this new system mean for that monthly phone bill.

So to say that this will drive totally the cost of the service down I think would be a little far reaching because I don't know what inflation is going to be five or 10 years from now. But in terms of the technology that's used this will be the best than the cheapest. The laser light was invented in 1958 and is currently being used in 10 areas across the country. It will cost New Jersey bell 10 million dollars to set up the system in New Jersey. Although the newer two New Brunswick line is the only one working at this point. As you can see New Jersey Bell is already slated other routes as well they should all be finished within three years and just save the company 30 million dollars in Newark. I'm Rolonda Watts. And here's a look at the weather forecast tonight will be cloudy with a chance of showers the temperature in the upper 30s. Cloudy breezy and mild tomorrow with more rain likely. The high in the upper 40s and the outlook for Wednesday partly sunny and hot. Hello hello. We've got a mike check.

And tonight in our closer look segment Canton Bob Geary the managing editor of New Jersey reporter magazine will discuss Governor Kaine's first budget and the chances it has in the Democratic controlled legislature Don. Bob how does Governor Kaine's new budget stack up against what he promised during the campaign. Well he made some promises during the campaign that reminded me. Somewhat of the promises that Ronald Reagan made when he ran. President Reagan promised to. Cut taxes to increase defense spending to balance the budget. There was some incompatibilities among those three promises. Cain promised to cut business track taxes fairly dramatically. And not to increase other taxes to increase spending on transportation. And of course to balance the budget which is required by law. Now Reagan took two out of three and he has an unbalanced budget. Cain is at

the edges of his promises he's cut business taxes but not dramatically. He has increased taxes but not the income tax not the state's major tax and he has put additional money in the budget for transportation. So he has been able to uphold some of the promises but not all. And the Democrats have been critical of the budget plan it was released in drips and drabs last week to the press. And then there were some briefings later on in the week over the weekend and now today the formal message from the governor and the Democrats have been critical of the plan although they do have a little bit saying that they they don't know yet what they will suggest to be any different. But what would they have suggested or what would they have done if this had been their budget this year facing such a large deficit. What would the Democrats done differently. Well I think the Democrats are happy that Cain was forced into the position of. Asking for tax increases that's never a popular thing to do. On the other hand I don't think that they would have been able to avoid taking. A similar action. To avoid a tax

increase Cain would have had to make wholesale cuts in social service programs. He might have for example ended the homestead rebate. Program the checks that the homeowners get every October that would have saved him a substantial amount of money. But he doesn't want to do that politically it would be unpopular neither with the Democrats. And I think the Democrats budget would have been similar I think that they probably would not have asked for a cut in business taxes. But the demands of education funding and prisons of mass transit and. An across the board are real the deficit is real. I think the Democrats probably would have looked for increases in this in the same areas in the cigarette tax gas tax. Possibly depending on who the Democratic governor was if it had been Brendan Byrne for example an increase in the income tax. Year after year we hear the budget plan and year after year we hear of these large budget deficits. Why is there such a large budget deficit why can't the state run things a little more efficiently.

Well the state that has to do with the state's tax structure of the. Tax structure does. The structure of taxes is such that our revenues do not grow as quickly as the costs of programs grow. We rely heavily on so-called excise taxes flat cents per gallon taxes on gasoline cents per pack taxes on cigarettes and the revenues don't go up. Meanwhile inflation is pushing the cost of a program set a continuation level up. The only tax that the state has that really mirrors growth in the economy is the income tax. And it is a small income tax and a small proportion of overall state revenues so that every year as the as inflation pushes the cost of programs up. Revenues from the existing taxes don't rise as quickly and you have to fill in that gap by cutting programs or increasing. Can I just ask you very briefly because we are running out of time we'd like to speak about so much. Just briefly how will the Reagan budget cuts impact on this budget Bob. Well the big Reagan budget cuts are not made up by this budget they were in the seated jobs programs and welfare and food stamps. The governor has made up cuts in Medicaid in mass transit funding

and he's proposed a new jobs training program for people who've lost their jobs because of the CTA cuts or the working poor who are hurt by the welfare and food sank you very much Bob Geary the managing editor of New Jersey reporter magazine thank you for being with us. And we'll be right back with sports in just a moment. Bill Curry is back. He's up in New York in is tonight Sports Bill.

OK thank you Dan started out with basketball one New Jersey college remains alive the other has been eliminated from the NIIT field tonight rector's place produce second round game in West Lafayette Indiana records is 29 the Boilermakers 15 and 13 Friday St. Peters bowed out of the NICU losing at Syracuse 84 75 Syracuse said. Just too much fire power Tony Brown Eric Santa for each 1000 points that was brewing. Andre Hawkins dominated the board Syracuse led by 13 only then the peacock's reeled off 11 straight right here John true to a steal an a layup. Bill Jamieson nice feed from Tyrone Holloway. William Brown then hit it was 25 23 a ballgame but the Orangeman spurted Eric Santa for him to give Syracuse a 13 point halftime lead William Brown tried to keep the peacock's in it he had 24 Williams inside outside but we had 12 points 13 rebounds and 10 assists for Syracuse Orange when it 84 75 Bobcats Peacock's finish at 20 and 9 a fine season.

The game was a fast tempo and I think we didn't want to play that type of a game but it started out that way. And. It came kind of got out of hand. All right NBA now nets dropped a toughie yesterday to Seattle 98 97 that's a plus two in a row they are now 33 and 32 overall they lost yesterday on a referee's whistle Gus Williams led Seattle with 23 points the visiting Sonics lead throughout most of the first half year we are third quarter when Gus will get a 3 point play gave Seattle a 66 58 lead a 38 left but the nets came back led by their super rookie Buck Williams the nets rallied to tie it at 75 all buckets and then bucket again tied it at 77 all 49 seconds left in the third 20 but the real story occurred with time running out you will see Albert King hit with eight seconds left in the game give the nets a 97 95 lead. Then Seattle Center James Donaldson after a timeout tied it and he was fouled but he missed the free throw. And referee Barry Rogan ruled that Michael Coren followed Jack segment with two seconds left now watch it again OK look at Sigma.

It looked like he elbowed Len Elmore could have been a foul on sickness see it but got one of two free throws then Michael Coren tried it. Desperation shot at the buzzer. No good Nets lost it in 98 to 97. That's a tough one. Boxing in Atlantic City over the weekend yesterday first of all rocky Lockridge once a headliner in a top featherweight contender scored a fifth round knockout against Jose Mendez Saturday Mostafa Hamm show scored a unanimous decision over Curtis Parker middleweight action Hamm show screen right pushing Parker to the canvas the boxer Hampshire put to rest. Talk of his retirement and yesterday in the first 10 round fight of his career Irvington is James Green five for the little guy. Decision 5 10 Wilford Sippy in quite an upset since the end was the WBC the fifth ranked middleweight and Sabean not too pleased with the decision afterward says they robbed nice of the New Jersey boxing commission to not react too kindly to that and they suspended him. Comeback of the year. Paramus skater Hugh lane Zach overcame the fear of falling and won the women's World Figure Skating

Championship. The 16 year old Zach the heavy favorite to win the U.S. title last month fell three times in competition attempting a patented triple jumps. She finished third then last year she was the national champ and failing to defend the U.S. championship was a major disappointment well in the world held over the weekend in Copenhagen Elaine also fell trying her jumps in the short program. She went to the free skate and seventh the free skate is what the majority of the points in the overall scoring and Elaine skated in jump flawlessly. She vaulted from seventh place to first to win the World Figure Skating Championships sports inside tonight New Jersey network live at 8:00 o'clock I'll be joined by nets guard footsy Walker New Jersey network cosmos close up show tonight at 10:30 from spring training with the cosmos in the Bahamas but it's great to be back in Jersey. Let's. Take it to Trenton. Thank you Bill I think I got all that. Once again our top story Governor Kaine presented his budget to the legislature today asking for an increase in education corrections and transportation spending and a reduction in the corporate net worth tax the state business tax He also proposed a 5 percent sales tax on gasoline and cigarettes. And then.

You know from all of us here in New Jersey Nightly News Good night. If. You go to the legislature today asking for an increase in education correction and transportation spending and a reduction in the corporate net

worth tax in the state business tax. You also proposed a 5 percent sales tax on gasoline and cigarettes the governor did however ask the legislators to present. It.