URGENT! - Monday S2063/A3102 the reorganization of Rutgers, Rowan , the University of Medicine and Dentistry
Joanne O'Neill
Excerpts from State Street Wire:
Higher-ed reorganization, bond issue in Assembly Budget Comm. Monday
TRENTON – A major piece of the budgetary and administrative puzzle for years to come, the higher education reorganization will be before the Assembly Budget Committee on Monday.
The massive makeover of New Jersey’s college landscape passed the Senate Budget Committee last Monday after undergoing numerous amendments. This coming Monday, the lower chamber committee will examine the bill whose costs clearly are in the tens of millions of dollars but whose true costs may not be known for years.
S2063/A3102 encompasses the reorganization of higher-education health facilities originally proposed by Gov. Chris Christie. The landscape of higher education in New Jersey involving Rutgers University, Rowan University, the University of Medicine and Dentistry and other facilities will change greatly if this effort moves forward.
The plan essentially breaks up UMDNJ:
* transferring all but one school that makes up UMDNJ to Rutgers University;
* Rowan University taking over the School of Osteopathic Medicine;
* establishing a governing body for University Hospital, which will remain separate from Rutgers University;
* a separate governing body for Rutgers University-Camden.
The plan, which Christie has insisted has to be in place by July 1, has undergone numerous tweaks, including guaranteeing Rutgers-Camden some degree of self-governance rather than having it disappear fully into Rowan’s envelope.
The biggest remaining issues are the costs, which some have said may not be known for years.
UMDNJ debt is about $660 million, with about $100 million of that related to University Hospital, and $50 million to $60 million related to the Osteopathic school.
Of UMDNJ’s total assets of $1.5 billion, the majority will go to Rutgers, except for the School of Osteopathic Medicine, which over time will go to Rowan University.
Bond issue
Of equal importance – for some colleges and universities maybe even greater importance – is the bond issue bill that also will be handled in committee.
A3139 would OK the issuance of $750 million in bonds so colleges and universities in New Jersey can do something they have not been able to do for decades: build state-of-the-art school buildings to stem the outward migration of the best teachers and students.
The bill stipulates that only buildings that increase “academic capacity” would be allowed: classrooms, libraries, laboratories. Dorms and administrative buildings as well as athletic facilities would not be allowed under this bond act.
The Assembly version being heard Monday has bipartisan co-sponsorship: Speaker Sheila Oliver and Minority Leader Jon Bramnick, so the bill’s future is bright.
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Weekly Advance: Week of June 25
TRENTON – Coffee and cots are likely to be a necessary staple at the Statehouse Monday.
Lawmakers are slated to move the state’s budget saga onto floors of the Senate and Assembly, and all the while the higher education merger and tax credits will be focal points.
Now the fun begins.
While both budget committees moved the Legislature’s $31.7 billion budget, this past week nine Democrats – led by Assemblyman Joseph Cryan – had presented their demand that the lower chamber hold the higher education reorganization bill until after the November election in exchange for their votes on the budget.
Cryan had been joined by Assembly Democrats Annette Quijano, John McKeon, Jason O'Donnell, Valerie Huttle, Connie Wagner, Tim Eustace, Linda Stender and Mila Jasey, and they had told Assembly Speaker Sheila Oliver in a letter signed by all that they planned to withhold their votes on the budget if their demands are not met.
The group – had it stayed intact – had the ability to deliver a major snag to the Democrats’ budget, but Eustace and Wagner ( both D's of Leg.Dist.38 ) broke ranks and are backing the budget, which means that barring any other roadblocks the budget on Monday will pass both the Assembly and Senate and head to the governor’s desk.
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Cryan: 'Our decision was based on principle'
With the news that leadership peeled off two of his allies to back the budget despite their initial vow to oppose it without a push back of the date for the legislature to vote on the reorganization of higher education, Assemblyman Joe Cryan (D-20) was grimly soldierly in gulping down the news.
"Our decision was based on principle," said Cryan in a statement. "The realities don't change, there is not enough information available for anyone to be able to vote yes on this merger proposal. We don't know short term or long term costs or what impact this will have on education in the state for decades to come and there is still no reason to force this vote. It's been stated already this wouldn't be implemented til July 1, 2013, so why are we rushing a vote with no information available? We should have hearings across the state and new jersey taxpayers should have the ability to hear what the impact of this proposal will be. I can only hope other legislators will come to their senses and allow this proposal to be properly presented so we can truly analyze it's impact."
Passing Christie's plan could have a long lasting effect on higher education in New Jersey for years to come and not having the complete picture of what the costs are and what are the expected results from the merger is far too risky an endeavor with tax payers money. Call your legislators and tell them there is not enough known to pass the merger proposal. To find your legislators click here: http://www.njleg.state.nj.us/districts/municipalities.asp
Christie's verbal impact study doesn't hold water, and we should demand a complete feasibility study be done before allowing this merger.
Tax credits
Democrats moved a budget out of committees that sets aside $183 million for property tax credits that would only go into effect in January if the state reaches the governor's revenue projections.
Does Gov. Chris Christie sign off on a budget that would delay tax credits pending a more than 7 percent revenue increase for the next fiscal year, or does he outright veto items and send lawmakers back to the drawing board?
One bill he will veto is the millionaire’s tax, if it gets to his desk. The Assembly Budget Committee passed the bill Friday, but Christie consistently has said that it is DOA.
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Excerpts from Democratic State Committee's week in review
The Record Agrees, the Democrats' Budget Plan for Tax Cuts Is A "Better Idea"
- Last week, Democrats hammered out a sensible plan for implementing tax cuts within the 2013 budget: property tax cuts could be implemented once we have a clearer picture about revenues for 2012.
- On Sunday, the Bergen Record agreed with Democrats that it is prudent to wait and see if the Governor's overly optimistic revenue projections prove true before implementing property tax relief, saying that Democrats are the "fiscally responsible ones."
- What else is in the Democrats' Budget Plan?
- Steady funding for New Jersey schools (a rejection of a Christie proposal to rewrite the school funding formula)
- $161 million for affordable housing funds (despite Christie's unconstitutional attempt to disband the agency unilaterally)
- $25 million for nursing homes (restoring cuts made previously by Christie)
- In all, the budget proposed by Democrats is $60 million less than the revised proposal from Governor Christie and $400 million less than his original proposal. So much for Republicans always claiming to be the fiscally responsible ones...
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Upcoming Schedule for this week:
Nominations
The Senate Judiciary Committee will hold a hearing on Monday morning on numerous gubernatorial appointments that will include the nomination of Christie’s former chief of staff, Richard Bagger, to be appointed to the Port Authority of New York and New Jersey.
Monday - Legislature
- Senate
10 a.m., Judiciary Committee, Rm. 4, Statehouse Annex, Trenton
12 p.m., Voting session, Senate chambers, Statehouse, Trenton
- Assembly
9 a.m., Budget Committee, Rm. 11, Statehouse Annex, Trenton
1 p.m., Voting session, Assembly chambers, Statehouse, Trenton
- Boards & Commissions
10:30 a.m., Delaware River Joint Toll Bridge Commission, 2492 River Road, New Hope, Pa.
- Daily Events
9 a.m., N.J. Food Industry Showcase, bottom floor, Statehouse Annex, Trenton
Tuesday - Nothing scheduled
- Daily Events
4 p.m., Lt. Gov.’s N.J. Resource for Business Growth Event, N.J. Chamber of Commerce, College of St. Elizabeth, Morristown
Wednesday - Nothing scheduled
Thursday - Legislature
- Senate
2 p.m., Voting session, Senate chambers, Statehouse, Trenton
- Assembly
TBA, Voting session, Assembly chambers, Statehouse, Trenton
- Boards & Commissions
10 a.m., Health Care Facilities Financing Authority, Building 4, Station Plaza, 22 S. Clinton Ave., Trenton
1:30 p.m., Governor’s School of N.J. Board of Overseers, Drew University, Room HS3, Madison
Friday - Nothing scheduled