In New Jersey, It’s Phil Murphy Vs the Political Machine
Political figures should be held accountable regardless of experience and party affiliation.
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.