Jersey City—Invoking “Fiscal Responsibility,” and led by Hudson County Democratic Organization members, a majority of City Council members voted 6-3 to kill an ordinance authorizing a proposed bond transaction devised by the administration to provide tax stability years into to future. Ironically, the proposal, nine months in the planning, had been praised by the State’s Local Finance Board and the Treasurer of the State for its fiscal responsibility. A detailed description of the proposal including graphics is available Online.

By defeating the ordinance council members knowingly added a bare minimum 60-day delay before any alternate plan could be put into action. The time element was carefully explained to council members during the meeting by City Clerk Robert Byrnes, who detailed necessary steps to introduce new authorizing legislation. Those steps, including a special council meeting, Sunshine Law compliance, and meeting again with another proposal with the Local Finance Board would stretch into at least February, explained Byrne.

Business Administrator Carlton McGee explained earlier that savings to the City under the plan would decline with each passing month as the year wore on. Currently, McGee pointed to tables showing $18Million in savings available during the month of December, declining to $9.5Million in February, a loss of $8.5Million. Council members also acknowledged that they were aware that interest rates had been steadily creeping up over the last few months, also adding to the cost of any financing the city might contemplate.

Council members have also heard in numerous presentations that the city would face a $20Million deficit in the spring of 2004 without available funds to cover the obligation, raising the specter of a possible default without the financing.

Mayor Glenn Cunningham, made his second council meeting appearance in as many weeks, and asked Council members to put aside political differences and consider the financial well-being of tax payers and city workers including firefighters and police officers who would be laid off if the measure did not pass. But Council opposition members, led by William A. Gaughan, who could be plainly seen prompting responses and directing remarks of other council members, voted the ordinance down 6-3. Only Council members Viola Richardson, Steven Lipski, and Jeremiah Healey voted in support of the debt-restructuring plan.

The meeting became voluble as council members, in turn, explained their votes on the plan to outcries from onlookers who packed the Council Chamber to standing room only. Mostly onlookers were City workers concerned about possible layoffs if the debt restructuring measure were voted down. Each negative vote from opposition council members drew jeers and catcalls from the crowd and murmurs of “Recall,” as negative council votes were cast.

The opposition to the debt-restructuring plan comes from political opposition to the Cunningham administration by members of the City Council aligned with the Hudson County Democratic Organization. Boss of the council opposition bloc is William Gaughan, Chief of Staff to the County Executive at an annual salary of $95,000. Under Gaughan is Council Member Mariano Vega with a County salary of $93,000, Junior Maldonado, at a County salary of $88,000, and Peter Brennan at a County salary of $60,000. Gaughan could been seen making gestures and facial expressions directing the others, providing cues, in dialogue leading up to the vote. Gaughan is also Chairman of the Jersey City branch of the Hudson County Democratic Organization.

County government has for years been dominated by the Hudson County Democratic Organization who has bitterly opposed Cunningham’s administration almost from the beginning. With these council members literally getting their livelihood from the political opposition, Cunningham’s administration has had difficulty obtaining council cooperation for any initiatives requiring council approval, such as the ordinance enabling the debt-restructuring plan. Cunningham’s political adversary, Congressman Robert Menendez, said to be the third ranking Democrat nationally, dominates the Hudson County Democratic Organization. Cunningham laid the council defeat of the bond measure at the feet of Congressman Menendez following the vote. “This is the work of Bob Menendez,” Cunningham said. “It is all totally political. But I can tell you the one thing that will not happen is a tax increase, no matter what. The people of this City have been carrying enough of a burden already.”

Now, says Business Administrator Carlton McGee, a budget will be drafted and put before the council within a week that will provide draconian cuts in the city’s work force to overcome the $20 Million structural deficit looming in the spring of 2004. In addition to the workforce cuts, said McGee, the administration is also looking at some other measures to relieve the coming cash bind, but would not specify what those were.

Follow Ups:

• Fiscal Responsibility .. Throw da UTN bums out !! Chakotay 12:12:08 12/04/03 (3)
  • Re: Fiscal Responsibility .. Throw da UTN bums out !! Bergerman 19:00:19 12/04/03 (2)
    • Re: Fiscal Responsibility .. Throw da UTN bums out !! Ring dang doo 19:23:45 12/04/03 (1)
      • Re: Fiscal Responsibility .. Throw da UTN bums out !! Bergerman 22:32:13 12/04/03 (0)