Go Gov. Christie...

Hundreds of regulatory bodies under scrutiny by N.J. Gov. Christie

BY CLAIRE HEININGER

STATE HOUSE BUREAU

Governor Christie has set his sights on the hundreds of regulatory boards whose jurisdiction is scattered throughout the state.
They run airports and regulate charity bingo. They borrow money to build schools and try to ban bikini waxes.
They provide "soft landings" — complete with fat salaries and pensions — to allies of the politically powerful. And they spend billions of public dollars every year.
Now New Jersey’s 700 boards, authorities and commissions are being dragged from obscurity into the crosshairs of Gov. Chris Christie, who has slashed their spending and ordered a broad review that could put some out of existence.
It’s a mission as wide-ranging and complicated as the entities themselves, many of them unique kingdoms with their own budgets, structures and standards.
"I’ve been involved in local politics since the mid-1970s, and I don’t have an answer to why some authorities work efficiently and why some are just dumping grounds for political hacks," said Jim Freeman, a longtime member of the Plainfield Area Regional Sewerage Authority. "I wish I did know. I would have the answer to the biggest problem in New Jersey."
Christie is not the first governor to try to rein in the state’s "shadow government," and some reforms have been made after abuses were documented by watchdogs. But Christie broke new ground last week with an executive order limiting state authorities’ ability to hire lobbyists, offer employee severance packages and pay for travel and entertainment greater than $250.
Organizations ranging from the Atlantic City Convention & Visitors Authority to the South Jersey Transportation Authority are clamoring to show they are in compliance. And they’re bracing for what comes next: a cabinet-level review to decide whether each authority should continue to exist, and whether paid commissioners deserve any compensation.
While many boards are unpaid, others provide members with thousands of dollars in salary or stipends for simply attending meetings — often enough to enroll or keep an appointee in the state pension system. And there are 748 authority employees who earn more than $100,000 a year — led by the $313,000 salary for the head of the Passaic Valley Sewerage Commission, who is stepping down tomorrow amid the Republican governor’s wrath.
Meanwhile, the Democrat-controlled Legislature is considering bills to reform the pensions and health benefits of authority employees and to give the governor, who can veto the actions of some authorities, veto power over the rest, including the PVSC.
"These places have grown completely out of control, and under the radar screen," said Sen. Loretta Weinberg (D-Bergen). "We can’t just take them over, but what we need to do is make them much more accountable and much more transparent."
Radical solutions have been floated by Christie’s transition team, led by one of his closest advisers, Mike DuHaime. Among them: Consider abolishing the Sports and Exposition Authority and the Highlands Council, and folding several agencies into the Economic Development Authority.
"What we’re talking about now is a paradigm shift of proportions that the state hasn’t seen," said Kris Kolluri, who served on various authorities as Gov. Jon Corzine’s transportation commissioner and later ran the Schools Development Authority. "There’s no doubt that consolidation can and will yield efficiencies. If it’s done with the Legislature and done in a very thoughtful way, I think the results will be very positive."
Christie stressed the need for a careful approach — even in bringing all authority salaries in line with the governor’s $175,000. DuHaime’s report said at least 27 authority employees earn more. "You have to do a kind of case-by-case analysis on this," Christie said.
The same goes for how each board or authority could or should be abolished, he said, depending on how it was created. Some sprouted from the governor’s office, others from the Legislature or a department. The biggest authorities, such as the Turnpike Authority, were created with the ability to raise big money to finance their operations apart from the state budget — including through bond sales — and to decide how to spend it.
Shrinking or consolidating would raise concerns about how to transfer that power to borrow money, resolve labor contracts and smooth over cultural differences between agencies — "right down to the way we painted our trucks," said Tim McDonough, who was leading the New Jersey Highway Authority, which ran the Garden State Parkway, when it merged with the Turnpike Authority in 2003. He said the merger "was not easy" but saved money on equipment, purchasing and management costs.
At the other end of the spectrum are the smallest boards and commissions, catering to limited but enthusiastic constituencies. Some are professional licensing boards that also advise state departments — such as the Board of Cosmetology and Hairstyling, which became infamous last year for a failed proposal to ban Brazilian bikini waxes.
Others are an outlet to assure groups with a specific concern — for example, a particular disease — "that the government’s going to pay attention to this issue — not just at that moment, but continuing," said John Weingart, a Rutgers University professor who served on boards and wrote a study in which he called them "an unheralded success story of meaningful public participation in government."
Jim Florio was the last governor to enact meaningful changes when he eliminated about 20 percent of the commissions, Weingart said. Weingart added that Christie should be cautious when stamping out the smallest.
"There’s a noise council, and it may or may not do anything, but if you try to get rid of it, there are going to be people who say you don’t care about noise," he said.
Claire Heininger may be reached at (609) 989 - 0273 or cheininger@starledger.com.
Governor Christie has set his sights on the hundreds of regulatory boards whose jurisdiction is scattered throughout the state.
They run airports and regulate charity bingo. They borrow money to build schools and try to ban bikini waxes.
They provide "soft landings" — complete with fat salaries and pensions — to allies of the politically powerful. And they spend billions of public dollars every year.
Now New Jersey’s 700 boards, authorities and commissions are being dragged from obscurity into the crosshairs of Gov. Chris Christie, who has slashed their spending and ordered a broad review that could put some out of existence.
It’s a mission as wide-ranging and complicated as the entities themselves, many of them unique kingdoms with their own budgets, structures and standards.
"I’ve been involved in local politics since the mid-1970s, and I don’t have an answer to why some authorities work efficiently and why some are just dumping grounds for political hacks," said Jim Freeman, a longtime member of the Plainfield Area Regional Sewerage Authority. "I wish I did know. I would have the answer to the biggest problem in New Jersey."
Christie is not the first governor to try to rein in the state’s "shadow government," and some reforms have been made after abuses were documented by watchdogs. But Christie broke new ground last week with an executive order limiting state authorities’ ability to hire lobbyists, offer employee severance packages and pay for travel and entertainment greater than $250.
Organizations ranging from the Atlantic City Convention & Visitors Authority to the South Jersey Transportation Authority are clamoring to show they are in compliance. And they’re bracing for what comes next: a cabinet-level review to decide whether each authority should continue to exist, and whether paid commissioners deserve any compensation.
While many boards are unpaid, others provide members with thousands of dollars in salary or stipends for simply attending meetings — often enough to enroll or keep an appointee in the state pension system. And there are 748 authority employees who earn more than $100,000 a year — led by the $313,000 salary for the head of the Passaic Valley Sewerage Commission, who is stepping down tomorrow amid the Republican governor’s wrath.
Meanwhile, the Democrat-controlled Legislature is considering bills to reform the pensions and health benefits of authority employees and to give the governor, who can veto the actions of some authorities, veto power over the rest, including the PVSC.
"These places have grown completely out of control, and under the radar screen," said Sen. Loretta Weinberg (D-Bergen). "We can’t just take them over, but what we need to do is make them much more accountable and much more transparent."
Radical solutions have been floated by Christie’s transition team, led by one of his closest advisers, Mike DuHaime. Among them: Consider abolishing the Sports and Exposition Authority and the Highlands Council, and folding several agencies into the Economic Development Authority.
"What we’re talking about now is a paradigm shift of proportions that the state hasn’t seen," said Kris Kolluri, who served on various authorities as Gov. Jon Corzine’s transportation commissioner and later ran the Schools Development Authority. "There’s no doubt that consolidation can and will yield efficiencies. If it’s done with the Legislature and done in a very thoughtful way, I think the results will be very positive."
Christie stressed the need for a careful approach — even in bringing all authority salaries in line with the governor’s $175,000. DuHaime’s report said at least 27 authority employees earn more. "You have to do a kind of case-by-case analysis on this," Christie said.
The same goes for how each board or authority could or should be abolished, he said, depending on how it was created. Some sprouted from the governor’s office, others from the Legislature or a department. The biggest authorities, such as the Turnpike Authority, were created with the ability to raise big money to finance their operations apart from the state budget — including through bond sales — and to decide how to spend it.
Shrinking or consolidating would raise concerns about how to transfer that power to borrow money, resolve labor contracts and smooth over cultural differences between agencies — "right down to the way we painted our trucks," said Tim McDonough, who was leading the New Jersey Highway Authority, which ran the Garden State Parkway, when it merged with the Turnpike Authority in 2003. He said the merger "was not easy" but saved money on equipment, purchasing and management costs.
At the other end of the spectrum are the smallest boards and commissions, catering to limited but enthusiastic constituencies. Some are professional licensing boards that also advise state departments — such as the Board of Cosmetology and Hairstyling, which became infamous last year for a failed proposal to ban Brazilian bikini waxes.
Others are an outlet to assure groups with a specific concern — for example, a particular disease — "that the government’s going to pay attention to this issue — not just at that moment, but continuing," said John Weingart, a Rutgers University professor who served on boards and wrote a study in which he called them "an unheralded success story of meaningful public participation in government."
Jim Florio was the last governor to enact meaningful changes when he eliminated about 20 percent of the commissions, Weingart said. Weingart added that Christie should be cautious when stamping out the smallest.
"There’s a noise council, and it may or may not do anything, but if you try to get rid of it, there are going to be people who say you don’t care about noise," he said.