The Xanadu saga continues

Senate Republican Press Release:

O’Toole: Where is Corzine as Sports Authority, Xanadu Spiral Toward Point of No Return?

Does Governor Still ‘Like the Revenue Projections?’

Senator Kevin O’Toole issued this statement after reading reports that the New Jersey Sports & Exposition Authority is “effectively operating at a deficit” and that the long-delayed Xanadu project will not open until at least next year.

“The Sports & Exposition Authority, once a source of pride and generator of revenue for the state of New Jersey, now sounds as if it’s overleveraged, losing money and at risk of bankruptcy,” Senator O’Toole said. “One can’t help but wonder how much of this fiscal crisis is due to eight years of shameless political wheeling and dealing over bungled arena, stadium and Meadowlands development projects.

“Governor Corzine has asked the public to trust him as he poured ever-more public money into projects to prop up the teetering Xanadu development,” Senator O’Toole said. “Yet he has never provided all the details about the significant conflicts of interest that he and his adviser, Gary Rose, have had involving Xanadu’s developers and Wall Street investment bank Goldman Sachs, where Corzine was once the chairman and chief executive.

“Just last year, when Xanadu was scheduled to open, the governor toured Xanadu, said he was impressed and liked ‘the revenue projections’ for the 4.8 million square-foot retail and entertainment project. The governor should say if he still likes the revenue projections now that Xanadu’s opening has been delayed again until at least next year.”

According to published accounts, Goldman, the Manhattan-based investment bank where both Rose and Corzine were partners, loaned Xanadu developer Mills Corp. more than $1.1 billion. Investors feared the money could be lost as an accounting scandal sent Mills veering near bankruptcy in 2006. At Corzines behest, Rose engineered a Xanadu bailout that included Dune Real Estate, a hedge fund. Rose owned an equity interest in Dune. Corzine later also disclosed that he had close ties to Daniel Neidich, Dune’s CEO and a former Goldman partner.

No man’s land

Remember ballot question #3 in the November 2007 election when the state proposed to borrow $200 million to preserve open space, farmland, and historic sites? The passing of this ballot issue added over $15 million a year to our state debt for thirty years. Did you vote yes because the vision was to have easily accessible recreation, maybe owning a piece of the bigger picture and to increase your quality of life in hectic New Jersey? Here is what was approved.

Green Acres, Farmland, Blue Acres, and Historic Preservation Bond Act of 2007

Shall the “Green Acres, Farmland, Blue Acres, and Historic Preservation Bond Act of 2007,” which authorizes the State to issue bonds in the amount of $200 million to provide moneys for (1) the acquisition and development of lands for recreation and conservation purposes, (2) the preservation of farmland for agricultural or horticultural use and production, (3) the acquisition, for recreation and conservation purposes, of properties in the floodways of the Delaware River, Passaic River, and Raritan River, and their tributaries, that are prone to or have incurred flood or storm damage, and (4) funding historic preservation projects; and providing the ways and means to pay the interest on the debt and also to pay and discharge the principal thereof, be approved?

INTERPRETIVE STATEMENT

Approval of this act would authorize $200 million in funding for Green Acres, farmland, Blue Acres, and historic preservation projects through the sale of State general obligation bonds. The Green Acres program preserves open space, including parks, fish and wildlife habitat, flood prone or affected areas, and lands that protect water supplies. It also funds park improvements and facilities. Of the total sum authorized: (1) $109 million will be used for Green Acres; (2) $73 million will be used for farmland preservation purposes; (3) $12 million will be used to fund a new “Blue Acres” program by which the State may purchase from willing sellers, for open space preservation purposes, properties in the Delaware River, Passaic River, and Raritan River basin floodways that are prone to or have incurred flood or storm damage; and (4) $6 million will be used for historic preservation purposes.

Here is a brief history of the Green Acres program created in 1961 from the Department of Environmental Protection (DEP) web site.

To achieve, in partnership with others, a system of interconnected open spaces, whose protection will preserve and enhance New Jersey’s natural environment and its historic, scenic, and recreational resources for public use and enjoyment.

The Green Acres Program was created in 1961 to meet New Jersey’s growing recreation and conservation needs. From 1961 through 1995 New Jersey’s voters overwhelmingly approved nine bond issues, earmarking over $1.4 billion for land acquisition and park development.

On November 3, 1998, New Jersey voters approved a referendum which creates a stable source of funding for open space, farmland, and historic preservation and recreation development, and on June 30, 1999, the Garden State Preservation Trust Act was signed into law. The bill establishes, for the first time in history, a stable source of funding for preservation efforts.

Proposed reductions of $8.8 million to the State Park Service are outlined in this document from the DEP park site. It includes a list of which parks and respective services will be affected.

The backers of this bill and those who voted “yes” have been bamboozled. It is unfortunate that the state cannot be trusted with our money, and holds the ultimate power to exercise loopholes and redistribute our money as they see fit. I remember this fact every time I push the “no” button. Yes voters may not have know about bigger plans the state under Gov. Corzine had on their agenda.

In October 2006 Gov. Corzine announced the design competition winner for the new urban state park, in our state capital of Trenton. This extravagant park will cost a bundle to build. Funding for this project will come from various sources. The Division of Parks and Forestry under the DEP has a ton of information about the Capital City State Park.

The state is arrogantly ignoring that the taxpayers in NJ have sacrificed a large amount of money to fund our parks, and many before us had their homes taken. Numerous businesses built their customer base and rely on parks and recreation for their survival. More NJ businesses and jobs down the tubes.

This is a bait and switch program where NJ is exercising excessive power and control to change the rules of the land in order to maintain funding with false promises. What will happen to this ‘no man’s land’ without funding?

I vividly remember the words of Steve Lonegan, Executive Director of Americans for Prosperity (AFP). Vote “No” on all ballot questions. If you have finally reached your limits and desire to become proactive for citizen’s rights consider attending the AFP New Jersey State Summit in Trenton on May 29^th-30th.

 

Greenies gone wild

In yesterday’s National Review, Phil Kerpen wrote a mind-blowing editorial on the effects that global warming regulations will have on our economy. A Federal bill co-authored by Senators Joseph Lieberman and John Warner will be debated in June before he US Senate. America’s Climate Security Act of 2007 (S2191) will have top to bottom effects on our financial stability.

A jointly commissioned study by The National Association of Manufactures (NAM) and the American Council for Capital Formation (ACCF) analyzes what expected distress this bill, if enacted, will have at both a federal and 50 state levels.

Below is a synopsis of the potential economic impact will be on New Jersey. It isn’t pretty.

New Jersey job loss:

Job losses will be incurred from lower industrial output resulting from increased energy prices, high costs of emission regulation compliance, and greater competition from global manufacturers.

By 2020 – 31,154 - 46,863 less jobs

By 2030 – 74,132 - 98,681 less jobs

 New Jersey Gross Domestic Product (GDP) loss:

By 2020 - $ 5.4 - $ 7.5 billionBy 2030 - $19.9 - $23.4 billionDisposable Household Income decrease:

Higher energy prices will also mean higher manufacturing, trucking, and retail prices for citizens. Taxpayers will have to also pay more to support government entities usage of higher priced energy and supply purchases.

 

In 2020 - $1,381 - $ 4,478 less

In 2030 - $5,854 - $10,675 less

The anticipated by 2030 household energy increases:

Gasoline 74% - 143%

Electricity 78% - 113%

Natural Gas 93% - 133%

Impact on low income families:

Those with average incomes of $17,156 will spend between 16% and 18% of their projected income just for energy needs. The elderly and others on fixed incomes will be disproportionately affected.

Of course our state has to be in the top 3 in all levels. The crusade on global warming is no exception. Here in New Jersey there are 11 departments and agencies working on the Energy Master Plan (EMP). Governor Corzine said, “I’m proud that New Jersey is one of the first among a handful of states that are leading the nation to combat global warming and I hope more states will follow in our model.” The Star-Ledger has written a news report about what we may expect from the 72 page EMP.

There is a lot of evidence that the current global cycle is unrelated to human activity. In reviewing history it is a fact that our earth has an ever-changing climate since creation. Suddenly, in our current climate cycle some proclaim it is the fault of humans. Have the greenies gone wild?

You can view a Glenn Beck YouTube video about the controversy on global warming below.

Looting the value of our roads

The Public Benefit Corporation (PBC) that Gov. Corzine refers to is described as an independent non-profit organization. Here are a few exerts from Gov. Corzine’s January State of the State address.

“The new PBC will have its own independent, non-political Board of Directors. Just like the Turnpike and the Parkway do today … the PBC will borrow funds based on the identified and dedicated revenues of tolls… just as is commonly practiced for toll roads and ports all across the globe. Let me be clear… PBC borrowing isn’t state borrowing. The bonds issued are not State debt - in any way, shape, or form. — Any future payments above and beyond operating costs and capital needs of the roadway will be reinvested in transportation improvements across the state.”

Relate these statements to my prior post “Evading the Taxpayers”. Doesn’t this sound like another type of self-fulfilling state agency that will feed their coffers and have the authority to borrow? What incentive would there be for the PBC (independent agency) to have any profits to flow back to the public? And it is already growing our State’s bloated government expenses and public employment.

Could it be that the Gov. is so arrogant that he has already picked his board of directors or his second panel the “citizens’ oversight board”? The Governor just spent more of our taxpayer money with these new high caliber appointments. The Star Ledger article states “the first 17 members”. This means there are more to come.

This PBC deal has all the ingredients to put our State in financial ruins. We need absolute guarantees form the gargantuan borrowing scheme outlined by Corzine. And, I don’t see any. What I see is yet another scam being presented to the taxpayers. Another agency of sorts set up which will be open for political looters to thieve the present and future value of our roads.

All efforts of our Governor and Legislators should be concentrated on ways to economize and cut spending. Instead, Corzine leads the way wasting valuable time, resources, and nerves of us taxpayers.