Budget moves closer to adoption

Presented by NextEra Energy Transmission: Your afternoon must-read briefing informing the daily conversation among knowledgeable New Jerseyans.

Jun 29, 2022 View in browser   By Jonathan Custodio Presented by NextEra Energy Transmission New Jersey's state budget for this coming fiscal year is one step closer to adoption. The Senate approved the $50.6 billion budget bill with a 25-15 vote, reports POLITICO's Carly Sitrin. The bill is expected to be approved in the Assembly and reach Gov. Phil Murphy's desk before the end of the week. State Sen. Vincent Polistina (R-Atlantic) was the only Republican to vote in favor of the bill. "I think this is the single greatest budget New Jersey's ever going to pass," Senate President Nick Scutari said just before the vote. The budget includes an unprecedented $6 billion surplus, $9.5 billion in school aid, $2 billion for Murphy's expanded ANCHOR Property Tax Relief Program and makes a second consecutive full payment to the state's infamously underfunded pension system. It also includes more than $2 billion in federal pandemic relief aid, $3 billion more for capital projects and money for the Legislature's usual "Christmas tree" pet projects, sometimes called pork by Republican opponents. Notably, lawmakers fell just short of fully funding the state's public school system by an estimated $530 million and failed to include a new dedicated funding source for NJ Transit. Compared to previous years that featured contentious budget processes, Murphy, Scutari and Assembly Speaker Craig Coughlin have led lawmakers through smoother negotiations this time around. Among the measures lauded by Senate Democrats include tax relief, investments made in school construction through $1.9 billion allocated for the Schools Development Authority and what Senate Budget Committee Chair Paul Sarlo (D-Bergen) called the "largest surplus in state history." Senate Republicans criticized the budget's lack of transparency and said it is littered with excessive spending that cannot be maintained in the long-term. They also said it failed to address what Sen. Michael Testa (R-Cumberland) called "rising economic anxiety," especially over inflation and high gas prices. Murphy spokesperson Alyana Alfaro-Post said "in the coming days Governor Murphy looks forward to signing the budget he negotiated with Legislative leadership."   A message from NextEra Energy Transmission: NextEra Energy is the world's largest generator of clean, renewable energy from the wind and sun.  We have unrivaled experience completing complex, large-scale energy projects, doing them on time and on budget while putting customers first, prioritizing the environment, and working with local communities to create jobs and limit disruptions. It's what we do and what we'll do for New Jersey.  That's because NextEra Energy Transmission is committed to empowering a greener New Jersey.    HAPPY WEDNESDAY AFTERNOON — Hi there, I'm Jonathan Custodio, your Playbook PM author. We're asking New Jersey political trivia and will shout out one person who correctly answers the question in the following day's edition. Today's shout out goes to Caitlin Mullooly for correctly answering that Barbara Buono was the first woman to be elected majority leader in the Senate. Today's question: Who is the first Latina to serve in  the State Assembly and who is the first Latina to serve in the State Senate? Send answers and tips to jcustodio@politico.com. We're here with the latest from Trenton and elsewhere as New Jersey moves ahead in the budget process. WHAT YOU NEED TO KNOW TODAY CAMPAIGN FINANCE — A bill to overhaul New Jersey's campaign finance laws — reducing the scope of the state's "pay-to-play" restrictions, doubling campaign contribution limits and shining some light on "dark money" political groups — stalled in the Legislature today. The 51-page bill, NJ S2866 (22R) , which was huge in scope and introduced less than two weeks ago by Scutari and Senate Minority Leader Steve Oroho, had made unusually rapid progress in the Legislature. But Coughlin had concerns about the bill's quick reporting of major campaign contributions, according to a source with knowledge of his decision, and he did not schedule it for a vote during today's voting session, which may be the last time the lower house convenes for the summer. Scutari pulled the bill from the Senate's agenda this morning, a spokesperson for Senate Democrats confirmed. The bill had been rushed through committees, winning approval by two in the Senate and one in the Assembly with no opposition and little discussion. But the lack of action today diminishes its momentum. Senate Democratic spokesperson Jen Sweet told POLITICO that "we're looking to do some more work on the bill," the dense provisions of which confused even some stakeholders. In a statement, Assembly Democratic spokesperson Cecilia Williams referred to a package of other election reform bills that are scheduled for votes in the lower house today. "The Speaker is focused on making key investments into New Jersey's election infrastructure, taking lessons learned from November, with the Assembly's bipartisan bill package that is being voted through the legislature today," she said. — Matt Friedman COVID NUMBERS — New Jersey reported 2,197 confirmed positive Covid-19 tests and 13 deaths from the virus today. The state's seven-day case average is up 8 percent from a week ago and down 40 percent from a month ago. ON THE BEATS HEALTH CARE — Department of Health staff is recommending the state deny the minority sale of CarePoint's Bayonne Medical Center, saying the Hudson County health system disregarded state regulators as it changed its ownership structure. The heart of the issue, DOH staffers wrote, is that CarePoint in May announced that its majority interest was converted from a for-profit company to a newly formed nonprofit entity after principal owner and CarePoint co-founder Vivek Garipalli transferred his ownership of the health system to the nonprofit. The conversion was done without health department approval and the ownership structure of the Bayonne hospital is now in question, staffers wrote. The change in ownership all but derails the pending deal to transfer a minority share of the Bayonne hospital to a new entity called BMC Hospital LLC, which is owned by the principals of the surgical center outfit Surgicore. The deal, which requires approval from the state health department, would have sold 39.1 percent ownership of Bayonne Medical Center to BMC LLC for $4 million, bringing BMC LLC to 49.9 percent ownership of the Bayonne hospital's operating company. While BMC LLC would like to own the hospital outright, it has been complicated by the fact that the owners of Hudson Regional Hospital own the land on which the Bayonne hospital sits. Hudson Regional wants to operate the hospital but has not been offered the chance to do so. Hudson Regional's ownership of the land means that to change majority ownership of the hospital, the landlord's signoff is required — and that doesn't appear to be happening any time soon. It's a shocking turn of events for CarePoint, which is looking to sell off its three hospitals in Bayonne, Jersey City and Hoboken. Before the conversion to nonprofit was announced, health department staff had recommended the sale move forward. The State Health Planning Board is scheduled to vote on the application on July 7. — Daniel Han   A message from NextEra Energy Transmission:   Around New Jersey NJ TRANSIT STATIONS TO GET UPGRADES — NorthJersey.com's Colleen Wilson: "Seven NJ Transit stations could receive $814 million for substantial renovations if a bill is passed through the Legislature Wednesday and signed by Gov. Phil Murphy. The bill would use a new $5.2 billion pot of money, known as the New Jersey Debt Defeasance and Prevention Fund. About $2.9 billion would go to the state Schools Development Authority for schools facilities projects and $230 million to the state Department of Transportation for Lincoln Tunnel Access Program projects, rebuilding the I-295 retaining wall that collapsed last year and engineering design work for a pilot multi-project program. The use of the remaining balance in the fund would be determined by a Joint Budget Oversight Committee, with input from the state treasurer." BANKING COMMISSIONER HEADED TO BENCH — New Jersey Globe's David Wildstein: "Gov. Phil Murphy is preparing to nominate Commissioner of Banking and Insurance Marlene Caride to a Superior Court judgeship, with Assemblyman Gary Schaer (D-Passaic) emerging as a possible candidate to replace her, the New Jersey Globe has learned. Caride and Schaer had been running mates in the South Bergen-based 36th district for six years before Murphy picked her for a cabinet post after the 2017 gubernatorial election. Highly-regarded in Trenton as a former chairman of the Assembly Budget Committee, Schaer has served as a legislator since 2006 and as a Passaic city councilman for the last 27 years, most of them as council president. He spent decades in the financial services industry." Odds and ends — A New Jersey fisherman just signed a deal for a Discovery Channel show. — A turtle tried to cross a road in Cape May County. Chaos ensued.  — Workers at Medieval Times are considering joining a union. — Jersey Mike's was fined nearly $25,000 for violations of child labor laws.    A message from NextEra Energy Transmission: NextEra Energy didn't become the world's largest generator of wind and solar power overnight. We've been building and operating large-scale energy projects across North America for decades and powering New Jersey for nearly a quarter-century. Our first solar farm in the Garden State was built in West Deptford. Yet, our contributions have gone far deeper—from counseling local businesses on how to reach clean energy goals and operating battery storage facilities to providing dozens of solar sites on buildings from Cape May to High Point and working to help New Jersey reach its offshore wind goals. We know how to get big, complex projects done on time and on budget. We power homes, neighborhoods, and entire cities, all while putting customers first, prioritizing the environment, and working with local communities to create jobs and limit disruptions. NextEra Energy Transmission is committed to empowering a greener New Jersey.     Subscribe to the POLITICO Playbook family Playbook  |  Playbook PM  |  California Playbook  |  California Playbook PM  |  Florida Playbook  |  Illinois Playbook  |  Massachusetts Playbook  |  New Jersey Playbook  |  New York Playbook  |  New York Playbook PM View all our political and policy newsletters Follow us

To change your alert settings, please log in at https://www.politico.com/_login?base=https%3A%2F%2Fwww.politico.com/settings This email was sent to rouf@idiot.cloudns.cc by: POLITICO, LLC 1000 Wilson Blvd. Arlington, VA, 22209, USA Please click here and follow the steps to unsubscribe.