Tag: Craig Coughlin

In New Jersey, It’s Phil Murphy vs. the Political Machine

New Jersey Senate President Steve Sweeney opposes a “millionaires tax” and has been instrumental in stalling legislation to legalize marijuana. But sure, the state doesn’t have enough money and needs to raid public workers’ pensions. (Photo Credit: Lbiswim/Wikipedia/CC BY-SA 4.0)

In politics, corruption is often presumed to be so much of a tradition and so pervasive that at times we become inured to it. As my father is wont to say, “They’re all crooks,” before summarily ending all seeing of, hearing about, and speaking about politics until further notice like the three wise monkeys of lore.

As it frequently manifests itself, the political response to alleged malfeasance on the part of one or more public figures involves members of the opposing party decrying these heinous acts and demanding accountability. The hubris! The outrage! This is unacceptable! That is, until one of the party’s own is caught with his or her proverbial hand in the cookie jar. Then, as the saying goes, all bets are off.

In my home state of New Jersey, meanwhile, even with understanding of a tradition of backroom deals and other less-than-transparent arrangements, one set of circumstances involving misuse of the state’s economic resources is shocking if only because of the breadth of the scandal. Moreover, the resulting war between factions of the same party is striking for its rancor.

At issue are millions of dollars in tax incentives included as part of more than $11 billion facilitated by the New Jersey Economic Development Authority under Gov. Chris Christie. An audit of the EDA by the state comptroller published earlier this year found that “New Jersey’s lavish corporate subsidy programs operate with little oversight and no evidence of spurring economic growth.” Of particular issue, especially as the news has grabbed headlines from local outlets and even national publications like Politico, are the findings that businesses and individuals linked to insurance executive and Democratic Party boss George Norcross benefited disproportionately from the tax breaks authorized by the NJEDA.

As this opinion piece from the New York Daily News editorial board explains, Norcross is South Jersey, “controlling just about everything in and out of sight. One of his brothers is a congressman; another is managing partner at a big law firm. A solid bloc of loyal state senators are always ready to bend the family’s way.” In other words, Norcross has connections—to put it mildly.

That he would leverage his influence to steer economic benefits to those personal connects is, while again not terribly surprising, nonetheless remarkable for its brazenness and its magnitude. An investigation by WNYC and ProPublica found that of the $1.6 billion in tax incentives greenlit for capital investment in Camden, Norcross’s hometown, $1.1 billion went to Norcross’s insurance brokerage, his affiliated businesses and charities, and clients of his brother Philip’s law and lobbying firms. Camden also received better than four times as many tax breaks as the combined benefits provided to other designated “growth zones.”

With all due respect to the city of Camden, New Jersey’s poster child for the ravages of income and wealth inequality and thus a city in legitimate need of investment, this reaping of the lion’s share of the EDA’s incentives seems excessive with respect to the way in which it was achieved. It’s especially egregious when considering claims by activists and community developers that the employees coming to work in Camden from the suburbs aren’t really contributing to the local economy. They’re not living there. They’re not spending there. They’re out by five each day, effectively rendering downtown Camden a ghost town. This does not appear to be what the NJEDA’s designs are all about.

In response to findings of abuse of its programs, Gov. Phil Murphy, Christie’s successor, created a special task force to investigate the New Jersey Economic Development Authority. This prompted George Norcross, the good Democrat that he is, to do the logical thing: sue. That’s right—Norcross alleges in a suit that Murphy “unlawfully empowered the task force with powers he did not possess and authorized the retention and payment of New York lawyers who proceeded to commence and conduct an investigation in violation of multiple provisions of New Jersey law.”

To the degree Norcross’s case has any merit is beyond me. From the outside looking in, the aspect of the task force’s lawyers allegedly not being able to practice law in the state of New Jersey could be problematic. There are also questions about what the task force is able to legally do (according to Norcross’s legal team, it can’t issue or enforce subpoenas) and who it can investigate (Norcross and Co. claim that because he isn’t a public official, he is out of bounds). In addition, the plaintiffs in the case have stated they have “made an enormous investment in the revitalization of Camden” and have been “falsely” accused of misconduct.

Norcross’s and his cronies’ purported innocence notwithstanding, their protestations strike one as weak sauce. Realistically, their arguments against Murphy’s task force involve technicalities such as legal standing, not a resounding repudiation of their guilt. And if Norcross’s motives seem petty or suspicious related to this lawsuit, what do we say about fellow Democratic politician Stephen Sweeney, president of the New Jersey Senate since 2010 and someone backed by Norcross?

Sweeney, born in Camden, has been instrumental, for one, in stalling marijuana legalization legislation which appeared to be on its way to being voted on by if not passing the Senate and Assembly prior to the bombshell revelations of the WNYC/ProPublica report as well as a whistleblower’s account of her employer lying about its relocation plans to secure a tax break. Sweeney also formed a tax incentive committee called the Senate Select Committee on Economic Growth Strategies that has its sights set on the very task force created to investigate misappropriation by the EDA. Which, if it supplements the work of the task force is great, but otherwise looks like nothing more than political retribution.

And this is before we get to other criticism of Sweeney for his steering of the state Democratic Party as one of its leaders. Doing a 180 from his position during Christie’s tenure as New Jersey governor, Sweeney has backed off his support of a millionaires tax now that Murphy is in the governor’s seat, echoing Republican talking points. To boot, his proposed “Path to Progress” initiatives have been slammed by public workers who stand to see cuts in their health care and pensions to pay for them while the pensions of other public workers (notably firefighters, law enforcement, and judicial employees) are evidently sacrosanct. That Sweeney has few qualms about bypassing Gov. Murphy to achieve these goals would only seem to speak volumes about dysfunction among New Jersey Democrats.

In all, these events paint New Jersey politics, already murky in its expression, in a harsh light, not to mention they cast a pall over a key victory for Democrats in the Trump era in Gov. Murphy’s triumph over Chris Christie’s lieutenant governor Kim Guadagno. On top of this, they underscore a more global tension between establishment politicians and progressives who are new to the political process or otherwise can be characterized as “outsiders,” a divide which tends to get played up for effect by news media to generate sales and clicks but one that does exist and which shines a spotlight on the roadblocks leftists face from actors on both sides of the political fence in advancing their ideals.

It’s a conflict worth fighting, though everyday voters are still caught in the middle, chiefly poorer New Jerseyans, women, and people of color, distinctions which recognizably aren’t mutually exclusive of one another. If we’re assigning blame, however, the best place to start might be with the persons of George Norcross and Steve Sweeney. After all, they’ve been playing this game for a longer period of time.

It admittedly feels strange to talk about Phil Murphy as the “progressive” politician of the bunch here given that his track record leading up to becoming an elected official wasn’t exactly a grassroots organizer’s dream. Murphy, a Goldman Sachs alum, bought his ticket to the gubernatorial general election by opening his personal checkbook and donating generously to the various county wings of the Democratic Party in New Jersey.

Before that, as a prominent Democratic Party donor, his finances were also key to his securing an ambassadorship to Germany under Barack Obama, a tenure that saw him have to weather a diplomatic storm after his negative comments about Angela Merkel and other German officials were made public as part of WikiLeaks’s U.S. diplomatic cables leak. With the memory of Jon Corzine, another ex-Goldman Sachs who ended his run as governor at a mere 33% approval rating, fresh in the minds of New Jerseyans, there was every reason to be wary of Murphy. Especially when his campaign strategy appeared to be little more than running against Donald Trump, not his actual competitor in the gubernatorial race, and his ads involved repeated promises that he “doesn’t owe the insiders anything” and that he’s “got our back”—all delivered with a cheesy smile.

Heretofore, though, the results have been better than perhaps many would’ve expected. Murphy signed a bill banning offshore drilling in state waters. He has also signed into law legislation to automatically register voters at Motor Vehicle Commission offices and other agencies, to close the gender pay gap, and to raise the minimum wage to $15 per hour by 2024, among others, and his Cabinet has been the most diverse in the state’s history.

As with any administration, there has been room for criticism. Murphy has taken a lot of heat from environmentalists for his failure to more strongly oppose the construction of a proposed natural gas power plant in the Meadowlands amid a push for a more robust commitment to renewable energy sources. In addition, Murphy’s administration met with scandal after Al Alvarez, one-time chief of staff of the Schools Development Authority, was accused of rape by fellow Murphy campaign staffer Katie Brennan (now chief of staff of the New Jersey Housing and Mortgage Finance Agency) but officials couldn’t (or wouldn’t) say who had hired him or how he was allowed to remain on the payroll for months after the accusations. Not a highlight of Murphy’s tenure, to be sure.

By and large, however, Gov. Murphy has been a marked improvement over Gov. Christie, who, like Gov. Corzine, ended his governorship in ignominy. Going back to the New York Daily News‘s editorial on his spat with George Norcross, too, if their opinion is any indication, it’s the latter who is the fly in the ointment. From the piece:

Phil Murphy is the elected governor of New Jersey and he’s asking crucial questions about who got what in tax breaks from the state Economic Development Authority.

Norcross doesn’t like it one bit, but he can go suck an egg, because the people’s money demands an honest accounting.

That’s really the crux of the matter. Murphy is an elected official accountable to taxpayers. Norcross is not and has materially benefited from the public’s contributions. This is a serious subject deserving more than Norcross’s legal team’s attempts at an end-around and warnings by Camden mayor Francisco “Frank” Moran that Murphy is not welcome in the city until he stops “attacking” it. Think about that. He’s the governor of New Jersey and you’re telling him to stay out. That’s quite a show of chutzpah from South Jersey Democrats toward a member of their own party.

Ditto for Steve Sweeney. He has protected himself better in terms of public opinion relative to Norcross, but as progressives might argue, he’s playing hardball with the budget and advocating for cuts for certain public sector employees in the name of “responsibility” when significant approval exists for raising taxes on the state’s wealthiest residents and legalizing marijuana, potentially viable sources of revenue. Sweeney is making a power play here, seeking to take advantage of Murphy’s rising disapproval from moderate voters. But he is out of step with public opinion on these issues and risks overplaying his hand in advance of a possible state government shutdown this summer, particularly when considering his past support for such a tax during the Christie era.

Political figures should be held accountable regardless of experience and party affiliation. This applies to Phil Murphy, at the top of the New Jersey hierarchy, but equally so to “power brokers” like George Norcross, Stephen Sweeney, and Assembly Speaker Craig Coughlin. In an age in which people-powered solutions to political dilemmas are in increasing demand, we don’t need a political machine dominated by a few to dictate our future.

The Bob Menendez Conundrum

menend-itis
For a candidate with superior legislative experience and supposedly stronger “Jersey values,” Bob Menendez is awfully compromised by his ethical failings. That fellow New Jersey Democrats rallied behind him so quickly after his criminal trial speaks to a dysfunctional political process in his home state and with the Democratic Party at large. (Photo Credit: Benedikt von Loebell/World Economic Forum/Flickr/CC BY-NC-SA 2.0)

Though you probably don’t need a reminder, in 2016, Donald Trump won the U.S. presidential election. Despite getting fewer votes than Hillary Clinton overall, Trump won enough states—and the right states, at that—to secure victory under the current system. In the minds of many voters, Trump’s lack of experience in public office, his moral failings, and his platform predicated on demonization of “the other” were negligible next to their dislike of Hillary Clinton and her perceived corruption.

Pundits and average voters alike (rightly) have criticized this viewpoint in the endless postmortem dissection of the election to follow. But the notion remains that Americans, jaded about the country’s politics and/or susceptible to political rhetoric, viewed these candidates on par with one another. This, despite Clinton’s obviously superior comprehension of D.C.’s workings and her message—however genuine—that “love trumps hate.” Trump’s triumph seemed to be a clear signal to establishment politicians that voters are fed up with the status quo and are willing to roll the dice on an unpolished outsider, even if it risks further damaging the institutions they regard as broken.

It’s 2018 now and the midterms are fast approaching. As evidenced by the race for Bob Menendez’s seat in the Senate, though, little has changed in the Democrats’ approach to winning elections. At a time when winning back the House and/or Senate is a priority for the Democratic Party, it bears wondering whether history will repeat itself and the Dems will find themselves on the losing end once more, even with apparent momentum.

First, a little background re Menendez. Back in June, in a piece for The Intercept, journalist Glenn Greenwald wrote about how Menendez was set to garner the Democratic Party nomination for New Jersey’s Senate seat up for grabs this November, and how his nomination serves as a symbol of how “calcified” the party really is. For Greenwald and numerous New Jerseyans, the issue with Menendez, who is seeking a third term in the Senate and is a veteran of Congress of 26 years, is his—how shall I put this?—questionable attention to ethics.

As Greenwald details, the public integrity unit of the Obama administration’s Justice Department began prosecution of Sen. Menendez in 2015, bringing him up on a dozen federal corruption and bribery charges. Allegedly, Menendez accepted lavish gifts and donations from friend and supporter Salomon Melgen, a Florida-based ophthalmologist,  in exchange for helping Melgen resolve disputes with federal health agencies, secure contracts, and obtain visas for three of his female “associates.”

Ultimately, the case against Menendez was dismissed because of a hung jury, but as Greenwald characterizes this situation, the New Jersey senator benefited from federal bribery statutes diluted “to the point of virtual impotence” by the Supreme Court over the years. Without the presence of a “smoking gun,” as several jurors in the case cited in their refusal to convict, convictions of public officials are “close to impossible to obtain.” The Trump DOJ, as apparently litigious and vindictive as it is, opted not to re-try Menendez. All of this occurred amid Menendez receiving a public admonishment by the Senate Ethics Committee for accepting and failing to disclose gifts, effectually bringing discredit to a legislative body that hasn’t been all too credible of late, especially in the minds of everyday Americans.

And yet, as Greenwald explains, Menendez’s fellow Democrats, including Chuck Schumer, Cory Booker, then-governor-elect Phil Murphy, state senate president Steve Sweeney, then-incoming State Assembly president Craig Coughlin, and influential party leader George Norcross, were quick to rally around him. Thus, with an advantage in party support and finances, any primary challenge was all but a non-starter.

It bears highlighting that Greenwald criticizes more than just Menendez’s ability to skirt convictions owing to lax bribery statutes, and that his fault-finding is indicative of larger reservations about the Democratic Party on a national level. For one, as chair of the Senate Foreign Affairs Committee, Menendez is an influential and outspoken Iran hawk, and during George W. Bush’s tenure, he voted with Republicans to authorize the Bush-Cheney Military Commissions Act, which later would be deemed unconstitutional. Menendez also has been a staunch supporter of the American Israel Public Affairs Committee, and for his trouble, has received donations from AIPAC supporters and officials, including significant sums for the costs of his legal defense.

Greenwald sums up his case against Menendez thusly:

This is how calcified the Democratic Party is: They even unite behind an incumbent who is drowning in sleaze and corruption, who was just “severely admonished” by the Senate Ethics Committee, whose legal defense was funded by far-right figures, and who has used his senior leadership role to repeatedly join with the Bush-Cheney and right-wing GOP factions against his own party’s supposed positions. Not only do they unite behind him, but they ensure that no primary challenge can even happen — they deny their own voters the right to decide if they want Menendez — by making it impossible for any such challengers to raise money from funders who rely on the largesse of Democratic officeholders and who thus, do not want to run afoul of their decreed preferences.

Whether New Jerseyans outside the progressive vanguard are fully aware of Bob Menendez’s profile as a U.S. senator is a matter of debate. His very public corruption charges, on the other hand, are fresh in the minds of voters, and likely explain why Menendez performed relatively poorly against Lisa McCormick, a virtual unknown, in the Democratic Party primary. It also likely explains to a large extent why a recent Stockton University (GO OSPREYS!) poll has the race between Menendez and his Republican opponent Bob Hugin essentially in a dead heat.

So, who is Bob Hugin? Hugin grew up in Union City, NJ, and attended Princeton University as an undergraduate, later earning an MBA from University of Virginia. He also served as an active duty infantry officer in the 70s and 80s, and a reserve officer after that. In terms of his professional life, Hugin has worked at J.P. Morgan, and most recently, spent close to two decades with Celgene Corporation, a biotechnology company which manufactures drugs for cancer and other chronic illnesses.

As for Hugin’s positions on the issues, among other things, he supports the move of the United States Embassy in Israel to Jerusalem, increased domestic production of oil and natural gas, opposing “sanctuary cities” and securing our borders, enhancing our vetting process for immigrants, increased military spending, school choice, extraditing Assata Shakur/Joanne Chesimard as part of relations with Cuba, and accountability for North Korea given any denuclearization agreements. Much of Hugin’s platform, meanwhile, lacks specificity, particularly when, say, addressing New Jersey’s finances or the state’s health care. While he may appear more socially moderate than someone like Donald Trump, his stances are, on the whole, generic conservative Republican.

Moreover, Hugin is not without unsavory elements in his past. At Princeton, he fought antidiscrimination protection for gays, and later opposed making an all-male eating club co-ed, describing a lawsuit at the time to overturn the gender exclusivity policy as “politically correct fascism.” Hugin says his views have “evolved” since then. Additionally, as CEO of Celgene, Hugin oversaw significant price increases in cancer drugs. Hugin and the company have defended these increases as necessary to offset expenses, but consumer advocates have accused them of “gaming the system” to prevent generics from reaching the market and artificially keeping revenues high. In an era when executive behavior is under increasing scrutiny, this is not a good look.

For all Bob Hugin’s baggage, however, given how ethically compromised Bob Menendez is perceived to be, it’s hard for him to connect in his attacks on Hugin’s character in a meaningful way. How can one point fingers about the other’s greed when he himself was accused of accepting lavish gifts? Even the indignation about the excesses of Big Pharma seems misplaced considering Menendez has received over $900,000 from the pharmaceutical industry over the course of his legislative career. These monies include 2012 donations from Celgene employees; Menendez was third-highest in Congress in donations from Celgene employees that election cycle. Bob, meet Bob. Pot, meet kettle.

It is no surprise that nearly all of the content of the political ads between Hugin and Menendez has been negative, attack-oriented fare rather than substantive reasons to vote for either candidate. As it concerns the latter individual, the strategy seems to be a shrug and a “take me as I am” attitude, much as it was with Hillary Clinton and the outrage about her E-mails and other scandals, however disproportionately they may have figured into the 2016 election. For most Democratic voters this election cycle, it means biting the proverbial bullet and casting their ballot for Menendez or staying home and risking losing a Senate seat to the Republicans. Electorally speaking, it’s the equivalent of being caught between a rock and a hard place.

In making allusions to Clinton vs. Trump, I recognize that different factors were in play than with Menendez vs. Hugin. Though Hillary and her supporters might’ve been quick to accuse her critics of sexism, gender bias almost certainly had an impact on the race. There also hasn’t been anything close to the magnitude of what happened with James Comey and his fateful letter to Congress—though it’s still early, mind you. Plus, there’s the obvious contrast in the levels of the races being run; Clinton/Trump was a national race for the presidency, while Menendez/Hugin is a state race for a seat in the U.S. Senate. For what it’s worth, Bob Hugin (thankfully) isn’t Donald Trump, to boot.

Differences aside, the essence of the conflict for potential Democratic voters is the same: as with Clinton and Trump, an experienced Democratic Party politician may lose to a Republican with no history of holding public office who touts his ability to create jobs (which he had to do as a function of running a business) as a crowning achievement. In Bob Menendez’s case, it’s particularly bad given a) New Jersey tends to vote “blue,” b) the president, a Republican, is largely unpopular, and c) the state just lived through two terms of Republican Governor Chris Christie, also largely unpopular.

I’m not suggesting it should be a walk-over for Menendez necessarily, and you may well dispute the predictive accuracy of the Stockton University poll or any similar poll. As some observers might argue, however, Menendez and his campaign waited a while to get into the fray with political advertisements, allowing Bob Hugin to strike first. In a blue state like New Jersey, Bob Menendez would be expected to have a lead, even if slight. An effective tie is vaguely embarrassing, and is downright disturbing to those leaning left with visions of “flipping” the House and Senate.

I’m also not suggesting Democrats, independents, and others with qualms about Menendez should necessarily choose otherwise or just stay home either. While I might strongly suggest that my fellow New Jerseyans not vote for Hugin, their vote is their business. Should Hugin end up as the victor, though, blame should be placed primarily on the shoulders of Bob Menendez and his campaign, not his constituents. The onus should be on the candidate to make the case to voters why they should choose him or her, rather than accusing or shaming voters for their choices. Sure, greater turnout should be encouraged. Pointing the finger at average voters who have to work and/or may not have much concern for politics seems like a poor tack to take, meanwhile, notably when both parties are yet more unpopular than individual politicians.

At any rate, voters in New Jersey and other states deserve better than to feel forced to cast their ballots for candidates they feel hard-pressed to endorse without meaningful and robust primary challenges and without room for serious debate. And they shouldn’t have to worry they are giving their implicit consent and reinforcing the bad political strategy of the major political parties with their vote. In the grand scheme of things, Bob Menendez is just one candidate in one race. But his situation is representative of a larger dysfunction within American party politics that beckons substantive reform.