NJN News; Monday April 20, 1998

How are you doing? Good. We all hear each other loud and clear. You can hear me. Thank you. The journey toward lower auto insurance premiums, the assembly takes on its version of reform. An estimated $8 billion is at stake in tomorrow's school elections. Children in rural Alloway, Salem County, are coping with the loss of one of their classmates

as a 19-year-old resident is charged in her murder. I'll have that story. The administration gets a grilling over the lack of minorities on the state police force. And Nets fans say they're ready for a second season tip off with the champion bulls and JN News for Monday, April 20th. Major funding for NJN News is made possible by grants from the Geraldine R. Dodge Foundation, which believes that an informed citizen relieves to a healthy democracy. The SCNG committed to serving customers strengthening the business community and investing in New Jersey's future. The first union serves the financial needs of individuals and businesses from Connecticut to Florida. HIP Health Plan of New Jersey dedicated to providing quality health care to employees of large and small businesses,

as well as individuals for two decades. And by Bell Atlantic, in partnership with public television, serving to form, we welcome you all to join us. From NJN, the New Jersey Channel, the Emmy Award-winning NJN News with Kent Manahan, Dick Forney with Business, and Jerry Henry with Sports. Good evening. After nearly five hours of debate today, the assembly passed its version of an auto insurance reform bill. It's on a collision course with Governor Whitman, as well as the Senate measure passed three weeks ago. Both bills call for mandatory 15 percent rate rollback, but the assembly bill contains one contentious difference. It ends the urban rate cap that has been protecting urban drivers for the last 15 years. Michael Aaron reports.

Assembly Speaker Jack Collins has been leading the charge to end the urban cap, which he calls an unfair subsidy being paid by suburban and rural drivers. A point his co-sponsor made today. Republicans say suburban drivers could save 30 or 40 percent if the cap is lifted, while conceding that urban motorists will have to pay more. That position has inflamed the debate. Democrats who represent urban areas say good drivers in the cities were promised reductions, just like everyone else. Those drivers may find themselves and will find themselves having to pay more for their insurance. This I do not think is good public policy.

Before the floor debate, the New Jersey Black Ministers Council issued a ringing rebuke of the assembly Republicans. Speaker Collins said he was not trying to hurt the cities. Well, he's not. This would almost kill the cities. A reporter asked if Jackson saw racism in the bill. Whether or not it's racist, I don't think it matters at all. The end result is the same. What it embraces is the idea of selfishness, the idea of divisiveness, the idea that we are not one New Jersey. The bill did have one Democratic co-sponsor, Lewis Greenwald, but many Democrats denounced it today. They warned that even the new so-called mini-policy will become exorbitant if the urban cap is lifted. And they argued that city residents subsidized plenty of rural services like state police coverage and open space preservation. Senate President Donald D. Francesco made a rare appearance on the assembly floor signalling his intense interest in the outcome. In the end, the vote was 55 to 23 in favor of the bill.

But Pete McDonough, Governor Whitman's communications director, said today the governor can't sign this version of the bill. That's because she promised all good drivers a reduction, regardless of where they live. So Collins may have scored political points through a wide swath of the state, but his version of auto insurance reform is likely to die in the cauldron of compromise. And Ken, our sources are saying that it's the governor's office that's going to be pushing to broker this compromise by the end of the week. Could be an interesting week ahead. Thank you, Michael. Lawsuits and school budgets are on the minds of both educators and property taxpayers this week. Tomorrow, voters statewide will choose new school board members and decide whether they support their local school budgets. Meantime, some middle income districts have launched a court challenge to the way New Jersey funds schools. Rich Young has details now on both stories for us. Rich? Well, Ken, more than two dozen middle income districts, as well as a group of parents, from around the state filed suit today in Mercer County Superior Court. At a state house news conference, they charged New Jersey's current school funding formula is unconstitutional.

They believe with millions of additional dollars going to the state's poorest districts, residents in the state's middle income districts are often left high and dry. And the only option for schools is to raise property taxes. The current formula used to allocate state aid to public school districts is totally and completely flawed. It severely penalizes those property taxpayers, unfortunate enough to live in high tax communities, and impacts most severely against middle income school districts. So as a result, the association of middle income districts is seeking one billion dollars in additional school aid. Money that would go to lower property taxes, they suggest using the budget surplus from next year. And property taxes will be a priority for many voters tomorrow. That's when New Jerseyans will give thumbs up, or thumbs down, to more than 500 proposed school budgets. Those budgets, of course, can translate into higher property taxes. We've visited the Hopewell Regional School District today,

where budget approvals are now the exception, rather than the rule, and they're felt in a very big way. Voting machines are now in place at the Tolgate Elementary School. Tomorrow morning, residents from Hopewell Township, Hopewell Borough, and Pennington will vote on a budget for this regional school district that could cause property taxes to jump anywhere from 7 to nearly 10%. Interim Superintendent Carol Roche says she understands the need to control property taxes, but she's also asking residents to consider what the proposed budget has to offer. I would hope that when people come out to vote, they will think less about the numbers if that's possible, and think more about what this budget means for schools, for children, for teachers. The problem for Roche is that voters have turned down three out of the four past budgets, and that's meant cutting programs. Roche thinks there are so many rejections, because school budgets are the one budget where the public can have a direct impact. Taxpayers do not vote on the national budget. They do not vote on the state budget.

They do not vote on the budget of the municipalities in which they live. They can vote on a school budget. So, if people are feeling frustrated and angry because of the increase in taxes, they can vote in the school budget. Roche is cautiously optimistic her budget will pass. Statewide last year, about 75% of school budgets were approved. This year, the New Jersey School Boards Association says the uncertainty comes from those upset about property taxes. The lack of state funding across the board is going to probably generate people to vote in a negative way. But I would hope that they were looking to long haul what that impact is going to be locally to their budgets. Well, voters in 553 of the 6002 local school districts will get to vote on their budgets tomorrow. On average, only about 15% of registered voters in the state turn out for school elections, but those votes can have a tremendous impact. So, can officials are encouraging everyone to get out and vote? Thanks, Rich. In other news, criticism tonight over a downturn in minority hiring by the state police. A report in today's Record of Hackensack has the Attorney General and state police superintended on the hot seat over the issue,

at a Senate Budget Committee hearing. A State House correspondent Jim Hooker reports administration officials are trying to turn the figures around, but they're facing difficulties. Is there a written procedure for promotions career pass? The whip administration came under fire for falling numbers of minority state troopers overall, with a mere 2% among the more than 400 officers who make up the top ranks of lieutenant on up. I am troubled by the direction. I think they're going backward instead of forward. And I think they should look at their methods of recruiting and promotion. Since the federal government relaxed its minority hiring demands for the state police five years ago, after a 17-year push to boost the numbers, the number of new minority recruits and troop strength overall has dropped. A report in today's Record of Hackensack shows the last five graduating trooper classes had 11% minority representation compared to 23% in the previous five. And overall, minorities have fallen from 17% of the force in 1995 to 14% last year, the latest figures available.

But the Attorney General says the administration is working to reverse the trend, noting that 25% of those who pass the first hurdle for next month's new trooper class are minorities. When you add female candidates, the combined minority and female applicants, the number of applicants was over 30%. So I'm encouraged by that progress now. But Vernero says there are still hurdles to overcome, including recruitment raids by agencies and private business outside state government. Once you sit for a state police test, you have a certain qualification about you that makes you very competitive in the marketplace. They become like a star, and not only are there's other law enforcement agencies, but also the private industry. I mean, it's a demand for good quality people. Lipman says she's not satisfied the state police are doing enough, particularly in the upper ranks. It's very dismal, and I think that more minorities and women ought to be put in place to be able to be promoted and make these high commissions.

Now Williams says minority representation in the upper echelon of the 2600 member force should improve as those who first started coming to the force in large numbers in the 1980s, gain more experience and time on the job. But still a couple of recent lawsuits by some minority troopers alleged racism in the division, something Williams and Vernero deny. Kent. Thanks Jim. There's more news ahead tonight on NJN news. The doctors are in in custody. That is the FBI arrests two Essex County physicians on charges. They bribed a former Newark school official. I'm Kent St. John. Residents in rural sale in County are mourning the brutal murder of a 10 year old little girl. I'll have that story coming up next. If you have a comment, call NJN News at 1-800-Jersey-1. Or our email address, NJN News at AOL.com.

A 19 year old Salem County man was a rain today charged with the weekend murder of a 10 year old girl. The community of Alloway Township is mourning the death of Crystal Carlson. Her body was found in a field she had been strangled and stabbed. Kent St. John is in Alloway Township now with more. Kent?

Well, I'll tell you, Kent. Residents of this small village of 2700 are coming together tonight to overcome the brutal slaying. And the many children here have a lot of questions on their mind as to why their seemingly quiet world has been shattered. William McPherson III was surrounded by police as he was led into court for his arrangement today. McPherson is charged with stabbing and strangling the 10 year old to death. Carlson lives around the corner from McPherson and police say as she was leaving school Friday, the fourth grader came across her attacker. Her body was found Saturday on a road five miles from her home by a farmer. Police arrested McPherson early Sunday. He was charged with four counts, the most serious being first degree murder. A way of a formal readable piece of information about it. And the head of a plea did not guilty on the head of my client. In the indictment, it says that McPherson admitted to the murder. So why enter a plea of not guilty? The fact that he defended supposedly allegedly made a confession does not mean that in fact he did admit to this particular crime under the circumstances as alleged by the prosecutor's office.

And the question, of course, always arises whether the confession meets constitutional requirements or not. Bell was continued for McPherson at half a million dollars as Crystal's parents Erica and Kevin Carlson looked on. Meanwhile, the flag up the alloy township school flew at half-stab as counselors help classmates cope with the loss. Well, I think the mood was somber, a lot of tears were shed and they asked a lot of questions. Why did it happen to Crystal? What makes someone big kill someone little? The community is pulling together around their children and those we talk to were relieved that police had someone in custody and say that counseling definitely helped. They just taught us to not don't forget her, keep her in our prayers. Everybody handling it well? School was quiet, real quiet today. You could hear people talking in the classrooms and today can hear them.

Sammy, he felt better that they caught him. I suppose we've always been concerned about the traffic but never anything like this. So we just have to remember Crystal and learn from it and go on. Now, can't a memorial service for little Crystal will be held at the elementary school behind me on Wednesday, excuse me on Wednesday at 7 p.m. And of course the funeral and the viewing for Crystal will be private at the request of her parents. I'm Kent St. John, live in Salem County, back to you in the studio. Thank you for that report. Kevin Zabowski's body was found but not an answer to why he died of exposure only yards away from a convenience store. Skiers found the missing railway man in Maine on Friday, not far from the lounge where he was last seen on New Year's Eve. The 21-year-old was discovered in melting snow behind a convenience store. His parents moved to Maine shortly after he disappeared to devote their full efforts to the search. And now they'll be bringing his body back home for burial.

Two Essex County physicians are charged with trading cash for medical referrals. According to the U.S. Attorney, Lewis Chitterelli and Donato Marucci, who share a practice in Bellville, paid thousands of dollars to the former head of workman's compensation for the New York Board of Education. In return, the doctors were paid more than a million dollars in fees for services performed. Officials say the alleged incidents took place between 1992 and 1996 before the state took over the district. Chitterelli and Marucci were each released on $100,000 bond. They will be arraigned within two weeks. It's the kind of thing that people dream about, winning the lottery. But when a New Jersey man won $10 million in the Texas jackpot in 1994, that state refused to pay, claiming the ticket was purchased illegally. Riverside Policeman Scott Winner made his purchase from an interstate ticket buying service. The high-tech service had obtained a court order allowing it to operate as the business. Today, without comment, the U.S. Supreme Court rejected the Lone Star State's claim that the ticket was gotten illegally.

So the way has been cleared for Officer Winner to have his day in court and maybe eventually his first installment of the winnings. Who knows? Dick's here to tell us a little bit about what's coming up in his business report. Well, persistence pays off at AT&T. Perhaps cost-cutting certainly has paid off for AT&T in its first quarter, but it sales disappoint Wall Street. And an AT&T competitor chooses a New Jersey company to repay its information superhighway in light. Stay with us. There was a time, Dick, when this company looked like it couldn't do anything wrong.

Yeah, that was only a couple of weeks ago, then the roof fell in. Percivity-based send-out is doing damage control that seems to be working with some investors. As we reported last week, send-dance stock price plummeted by more than 46 percent after it revealed, quote, accounting irregularities that caused it to restate its earnings as much as $100 million lower than previously announced. Well, today's send-dance, the former HFS corporation of franchising and direct marketing powerhouse, said it has appointed a new chief financial officer. The former CFO resigned under a cloud of suspicion just before send-dance announced its accounting problem. Today's send-dance stock recovered about 11 percent of its value. Well, the cost-cutting announced earlier this year by AT&T's new chairman seems to be paying off. Today, the basking Ridge-based company announced an 18 percent increase in first quarter earnings,

and a 1 to 1 and a third billion dollars. That figure beat Wall Street's expectations, but still troublesome as the fact that AT&T's first quarter revenue showed virtually no growth as competitors continue to eat into its long-distance business. Meantime, rival MCI today announced it will roll out a couple of new routes on its high-speed telecommunications network using fiber optic cable made by Murray Hill-based loosened technologies. No price tag on the deal was revealed by either company, but what makes it interesting is that loosened is formerly the Bell Labs unit of AT&T. Before its spin-off as an independent company, such a deal with an AT&T competitor would have been undoable. Trump hotels and casinos has gotten some relief from its fiscal squeeze in the form of debt refinancing. As part of the deal, Trump says its troubled Marina hotel and casino will get a $5 million infusion of capital. Trump says it will use part of that money. It will save from lower interest rates on its debt to launch a new ad campaign. He adds will tout its properties and the infrastructure improvements to Atlantic City, such as the New Convention Center,

and the Plan Gateway Project at the end of the Atlantic City Expressway. After the Dow gained about 170 points last week, today it was time for some profit-taking, but the selling was confined mostly to the big cap stock. The Dow fell 25 and 2-thirds to close at the 91-41 level, but the MX Composite rose. It's three-and-a-half, an ASDAQ Composite jumped 20-and-a-half and the S&P 500 etched up less than a point. Bonds were shaken by concerns about the dollar and the long bond fell. Fibates of a point in price its yield rose to 5.92%. And finally, financially struggling, Grand Union Corporation says the NASDAQ wants to kick it off that exchange. The Wayne Bay Supermarket Company says it has been notified by NASDAQ of the exchanges intent to delist it because Grand Union no longer meets its requirements. Grand Union has requested a hearing and says meantime its shares will continue to be traded. And Grand Union stock incidentally is worth about 31 cents, 31 cents, a share at the present time. All right, Dick, thank you.

Still ahead tonight to check of our forecast coming up for you. And Jerry, how about a sports preview for us? The NAS finally make it official there in the playoffs for the first time in four years. Their story next. When they had to do it, they did it. They did it. With all the injuries, it took the entire season but the New Jersey Nets have battled through a rash of injuries and made it to the playoffs for the first time in four years. And by beating Detroit yesterday and they did it with starters Jason Williams and guard Sam Cacell out with injuries. But veteran Kindle Gill stepped up and scored a season high 27 points. The win earned the Nets the right to play the bulls in the first round of the playoffs starting Friday in Chicago.

The eyes had had no business playing in this game played to help us win. So it was a terrific effort. We still got to shore up our defense going into this series with Chicago. But you know, just getting there now and now we'll focus on that a little later. Guys, we deserve this win and now we got it. So, you know, but it's not over yet. We got a hard task to hit us in the bulls. So we're looking forward to it. We just got to go out, you know, be free-spiriting, take on the defending world champs. You're going to be ready to go Friday? Yeah. So now that Johnson Chicago, a team that swept New Jersey in a regular season, the Nets fans who are giddy with playoff fever don't seem to mind. Well, I think if they didn't have the injuries that they had, they probably would have clinched it a lot sooner. But I'm proud of them for clinching it when they did. And I think that I don't think they'll beat Chicago, but I think they're going to give them a run for their money. I think they will maybe not win the series, but I think they'll win one or two games against Chicago. I think they're going to surprise a lot of people.

Even before making the playoffs, Nets Apparel has gotten to be more popular these days. This sporting good store in Chicago has had trouble keeping up. Yeah, when you don't have that magical crystal ball, it's hard to see what they're going to do for the season. And when they started to win so well, we did fall a little short, but we scrambled well. And we put a big presentation of Nets merchandise and all our stores. Everybody's stocking up. Game 2 is Sunday in Chicago, and it's back to the Metal Ranch for Game 3 on Wednesday to 29. And the NFL play, NHL play us get underway this Wednesday with the Devils hosting Ottawa in the first round more on that tomorrow than that sports. All right, Jerry. Thank you. What's up, everybody? We're going to have some complaints about today's weather. We saw sunny skies, a little windy. Temperatures mainly in the upper 50s and 60s. And at Echo Lake Park in Westfield, youngsters thought it was kind of a great day for monkey and around. As far as our pollution watch goes for tomorrow, moderate levels are expected throughout the state as sunny skies and warmer conditions cause ground level ozone to form. Sunny, with highs in the mid 60s.

In South Jersey tonight, clear skies, lows in the upper 30s. And tomorrow, sunny conditions with a high of around 70 degrees. And finally tonight, parts of Belmar are getting a spoozing up. Today, some schoolchildren, state and local officials and business leaders gathered on E Street, the one named for the E Street Band. Ground breaking began today on a new playground there to replace the littered vacant lots. Besides the usual slide and swings, the playground will also feature a greenhouse and a community garden. Very nice at this time of the year. E Street Band will bring them into play too. That's our news for tonight. I'm Kent Matahand for Dick and Jerry and all of us here at NJN News. Thanks for being with us, everyone. Good night. You

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