Re: Details of Bryant projects released
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Corzine said this week that his lawyers found problems with the way money was distributed, but uncovered nothing criminal. He said his lawyers were concerned over whether the legislative and executive branches had retained their separation of powers, as required by the Constitution.
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THIS WEEK??? It's October 2008. Where was he in 2004 and 2005 before the Republicans sued?
HIS lawyers? Oh, THAT gives ya the warm and fuzzy doesn't it?
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Newsday.com
Documents show how NJ grants program worked
By ANGELA DELLI SANTI
Associated Press Writer
October 17, 2008
TRENTON, N.J
Newly released documents detailing a controversial and now-defunct $128 million New Jersey state grants fund show a pattern of unchecked spending.
They show Democratic lawmakers directing large pots of money, funds apparently were approved before organizations formally applied for money and dozens of grants went unclaimed because the preapproved recipients never applied for their money.
The state Treasurer's Office released hundreds of pages of documents related to the Property Tax Assistance and Community Development Grants program late Friday, to comply with an Open Public Records Act request by Republican Sen. Tom Kean Jr. and Assembly Leader Alex DeCroce. Republicans said it was their fourth request for documents, and they threatened to sue if the state did not comply.
The program, which Republicans refer to as a slush fund for the majority party, operated in 2004 and 2005 before newly elected Gov. Jon S. Corzine froze the fund with $26 million remaining in 2006, after a Republican sued. Corzine later shut the fund down permanently after an internal review.
Corzine said this week that his lawyers found problems with the way money was distributed, but uncovered nothing criminal. He said his lawyers were concerned over whether the legislative and executive branches had retained their separation of powers, as required by the Constitution.
New questions about who controlled the fund and how the money was distributed arose during the ongoing political corruption trial of former state Sen. Wayne Bryant, who chaired the powerful Senate Budget Committee in the years these grants were allocated. Rousseau testified that Bryant and then-Senate Majority Leader Bernard Kenny each directed $4 million, while Senate President Richard Codey directed $12 million.
Bryant is accused of steering millions in grants to the University of Medicine and Dentistry of New Jersey in exchange for a low-show job that padded his pension. Bryant has denied wrongdoing.
Republican lawyer Mark Sheridan said the grants program was fundamentally flawed. He said it's up to the legislative branch to appropriate the funds, while the executive branch administers the money according to the Legislature's instructions. Violations of the Constitution are not criminal, however.
Lawmakers even had a nickname for the fund: MAC account, a play on ATM cash machines.
Codey, who doubled as governor in 2005, said Friday he would not block release of the grant program documents by invoking executive privilege. He said this week the state grants-making process has since been revised and is now among the most transparent in the country.
The documents released Friday include a list of grantees grouped by the senator who proposed them and memos discussing grant allocations, including some between Codey and then-Deputy State Treasurer David Rousseau. Also included was a list of grants that would not reach their intended recipient because no application was ever filed.
A 2005 letter from Rep. Donald Payne to Codey seeks $275,000 in grants to four organizations, three of which Payne said he was on the board of and one where he was an adviser. All the programs served urban youth in Essex County, the 10th District congressman said.
An e-mail from Rousseau to Adrienne Sneed Byers, Payne's district director, instructs the congressman to pare his suggested grantees to $200,000. Rousseau notes that the Boys and Girls Clubs of Newark and Vicinity, one of the suggested recipients, was already in line for a $50,000 grant "from one of the Assembly members in Essex County," and Payne cut it from his list.
On a $100,000 Lawrenceville Scholarship program grant, a notation shows "grant approved, application will be sent out shortly."
A listing of grantees from Codey's $12 million share shows various senators and assembly members associated with portions of those funds, though some are listed only by their first name, "Pete," or by first name and last initial, "Joe F." The names of members of Codey's staff appear alongside other grants, though any link between the staffer and the grant is unclear.
The documents show the Assembly also gave out grants, with one 10-page listing of $70.5 million in allocations divided up into "Senate" and "Assembly" grants. Another list shows $20 million in grants controlled by the Assembly.
The documents show checks continued to be written through March 2006, when Corzine froze the fund. That left 350 community organizations without grant money they had been promised.
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How groups got funding at the whim of Trenton
by Ted Sherman and Robert Schwaneberg/The Star-Ledger
Sunday October 19, 2008, 8:24 AM
The document was simply titled, "Norcross Grants."
Among the grants listed was money for the Lawrenceville Scholarship Program. The notation said "$100k grant approved, application will be sent out shortly."
There was a formal application process for the millions of state dollars once doled out by the leadership of the New Jersey Legislature to favored projects, towns and groups with need, but confidential documents released Friday tell the real story. It took a call to someone with pull to get money, and the decisions over where those public funds went were made before any applications were even filled out.
George Norcross, for example, was never a member of the state Legislature. The Camden County Democratic power broker held no elective office. But he remained the de facto voice of the South Jersey legislative delegation and he secured $305,000 in grants in 2005. They ranged from $100,000 for the scholarship fund for disadvantaged students at the Lawrenceville School to $20,000 for the Lupus Foundation.
Norcross, in a statement issued through his lawyer, William Tambussi, said he had recommended the grants at the invitation of Senate President Richard Codey (D-Essex) in late November 2004. At the time, Codey also was acting governor following James E. McGreevey's resignation and was considering a run for a full term. Codey and Norcross have long been political rivals.
"Acting Governor Richard Codey called me to tell me that he had authority over a substantial amount of discretionary funds and that I could recommend $500,000 of funding to worthy causes," Norcross said. "I was delighted to recommend several deserving causes."
Codey could not be reached for comment yesterday, but his spokeswoman, Jennifer Sciortino, said Codey remembers events differently.
"Senator Codey only recollects one conversation he had with George Norcross, and it was about a grant to a school for a scholarship program for economically disadvantaged students," Sciortino said. "He doesn't recall any other particular requests for grants. However, he did look over the list of grants that Norcross received and they appear to be for worthy causes."
Others far from Trenton, notably Rep. Donald Payne (D-10th Dist.), also got a piece of the pie. A series of e-mails from the district director for the congressman from Essex County to state Treasury officials pressed for a list of causes Payne wanted funded. The congressman was eventually asked to whittle his list down to $200,000, and did.
The documents were released late Friday in response to demands by Republican lawmakers to open the books on the secret deals behind $100 million in discretionary legislative grants paid out during the 2005 and 2006 budget years.
While the money by and large went to worthwhile groups and needed projects, the way it was distributed showed the funding was part of the political grease used to secure votes or support from Democrats, select Republicans, and those who might help them all get re-elected.
Sen. John Adler (D-Camden) unsuccessfully sought a $110,000 grant for the Silver Care Center, a nursing home and rehabilitation center in Cherry Hill, copies of e-mails show. The president of the Silver Care Center, Marc Silver, contributed $7,800 to Adler between 1998 and 2007, according to records maintained by the state Election Law Enforcement Commission.
Silver Care's grant application was withdrawn at Adler's request, according to Jim Manion, a spokesman for the Senate Majority Office.
"When he found out it was a for-profit entity, he agreed it should be canceled," Manion said.
Before that happened, however, bureaucrats in the Treasury Department explored an alternative. One wrote in an e-mail July 7, 2005: "Do we direct funds to a nonprofit who can then contract with Silvercare to achieve the intent of this grant which per the data sheet is to acquire 7 new ventilator beds for Silvercare, or do we lapse the funds?"
Adler is in a too-tight-to-call race for the House seat being given up by Rep. Jim Saxton (R-3rd Dist.). The Republican candidate, Medford Mayor Chris Myers, said, "The documents released last night prove that Trenton politician John Adler tried to improperly direct $110,000 in taxpayer money from his Trenton slush fund to a campaign contributor's for-profit company."
Adler's campaign manager, Mark Warren, said: "This latest attack is just another desperate attempt by Myers to distract the voters from the choice they face on November 4th the choice between continuing George Bush's failed economic policies with Chris Myers or turning our country in a new direction with John Adler."
Republican lawmakers yesterday said the documents spell out in black and white what they had long suspected: There were clear fingerprints showing who sent what money where. And they dismissed Democrats' defenses -- that both parties had participated in the "Christmas tree" process, that the money went to worthy causes, that the system has since been reformed -- as "an unbelievable spin job," in the words of Sen. Kevin O'Toole (R-Essex).
"It was never the 'causes' that we questioned," said Assembly Minority Leader Alex DeCroce (R-Morris). "It was the process. It's not about who got the money, but how they got the money and why. ... The entire sorry spectacle stinks."
Democratic Party state chairman and Assemblyman Joseph Cryan (D-Union) said Republicans were being hypocritical, having engaged in similar practices when they held power.
"The Republicans played Santa more often than the Salvation Army," Cryan said. He added that the Democrats' grants went overwhelmingly for "good programs, property tax relief, infrastructure, things everyday New Jerseyans use."
MAJORITY'S DISCRETION
Details about the Property Tax Assistance and Community Development Grant Program, as it was formally known, began emerging earlier this month during the ongoing federal corruption trial of former senator Wayne Bryant (D-Camden), who is accused of steering grants to the state medical school in return for a job that required little work and boosted his pension. Bryant insists he is not guilty.
During the 2005 and 2006 budget years, the program had $128 million available and paid out $100 million before it was frozen. State Treasurer David Rousseau testified earlier this month that of the $40 million in grants for the 2006 budget, Codey controlled $12 million, Bryant controlled $4 million and then-Majority Leader Bernard Kenny (D-Hudson) controlled $4 million. He said unnamed Assembly members controlled the $20 million balance.
With the program's constitutionality facing a court challenge, Gov. Jon Corzine shut it down in early 2006. Codey later instituted a system he calls "one of the most open and transparent in the country." It requires lawmakers requesting grants to sign their names, which are posted on a state website.
Legislatively directed spending, known as "the Christmas tree," has long been a kind of spoils system for the party in power. In 2001, when Republicans controlled the Statehouse, they refused to share any of the $149 million in baubles hung on that year's Christmas tree, drawing protests from Democrats.
"I learned about this Christmas tree, but I never knew it was only lit on one side," said Assemblyman Albio Sires (D-Hudson), who also was mayor of West New York in 2001 and is now a congressman. The new documents show West New York benefited once Sires became Assembly speaker, getting $7 million over two years. Unlike the Senate documents, the Assembly's do not reveal which lawmaker requested specific grants.
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