Supreme Court set to consider $9.9b borrowing law – Politico

Good Wednesday morning!

Republicans are squaring off with Democrats in the state Supreme Court today. The debate will surround the new law allowing the state to borrow up to $9.9 billion.

Gov. Phil Murphy signed the controversial law earlier this month to make up for plunging revenues during the pandemic. After the law was signed, several Republicans immediately filed a lawsuit challenging its constitutionality.

Whatever the court decides will have a huge impact on the state’s finances. Republicans fear that the law will saddle future generations with piles of debt. Democrats say that without the ability to borrow, they won’t be able to fund critical government services.

There are also potential implications for the governor’s race: Republican State Chairman Doug Steinhardt, a likely candidate, filed the suit. Republican candidate Jack Ciattarelli sought to be a co-plaintiff, but the court denied that motion. Instead, he can argue as amicus curae, or friend of the court.

PROGRAMMING NOTE: I’m filling in for Matt this week while he is taking some time off. Please send tips to me at [email protected].

QUOTE OF THE DAY: “At first it sounded like death … There was no wind rushing, and it got deathly quiet. And then it sounded like a train.” — Marilyn Sussman, after a tornado touched down near her home in South Jersey

WHERE’S MURPHY?: Giving a coronavirus press briefing in Trenton.

CORONAVIRUS TRACKER: Another 416 new positive cases of Covid-19, bringing the total caseload to 182,970, and 11 more deaths, pushing the death toll to 13,982.

JUST ANOTHER DAY IN 2020 — “When will my power be restored? Expect multi-day recovery with 1.3M out, N.J. power companies say,” by NJ Advance Media’s Brent Johnson and Matt Arco: “New Jersey utility companies are still assessing the power outage damage from Tropic Storm Isaias on Tuesday, with nearly 1.4 million customers remaining in the dark as of late afternoon and the state’s largest power provider calling it ‘among the strongest storms to hit our service territory in recent years.’ In some areas, gusty winds remain too mighty for bucket trucks used to repair lines. Meanwhile, downed trees throughout the state are blocking roads and making some damage inaccessible. The three major utility providers in the state are already expecting the recovery in some areas to be a multi-day effort in the wake of a storm that brought heavy rain, wind gusts of up to 75 mph, flooding, and even isolated [tornadoes].”

YEEZUS WALKS (AWAY) — Kanye West drops bid to get on New Jersey ballot in run for president, by POLITICO’s Katherine Landergan: Kayne West dropped his bid to get onto the general election ballot in New Jersey as an independent presidential candidate just hours before a scheduled court hearing challenging the validity of his nominating petitions. At 11:40 p.m. Monday, West’s campaign sent an unsigned email from “[email protected]” to the courts. “As you know, the Kanye 2020 campaign has not requested a hearing in this matter and is not challenging the Secretary of State’s decision that it cannot certify the petition,” the email said. “At this time, Kanye 2020 has no further option than to regrettably withdraw from New Jersey and cease further efforts to place Mr. West’s name on the New Jersey ballot.” The message officially ends West’s short-lived attempt to get on the New Jersey ballot. The acclaimed artist and billionaire filed 1,327 petition signatures with the state on July 27. The signatures were immediately challenged by Democratic lawyer Scott Salmon, who described them as “egregiously bad.” Some signatures were missing required information and many appeared to have similar handwriting.

FUNDRAISING — ELEC: Fundraising by county political parties drops dramatically, by Katherine: County political parties in New Jersey reported the lowest six-month fundraising collections in two decades, according to a new analysis from the New Jersey Election Law Enforcement Commission. Through June 30, county parties had raised $1.9 million, according to the ELEC analysis. That’s less than any half-year period dating back to 2001. This is largely because of a drop-off in fundraising in the second quarter. Fundraising dropped by 50 percent when comparing the first and the second quarters of this year. The first quarter brought in $1.3 million, whereas the second quarter brought in $648,729. Jeff Brindle, ELEC’s executive director, said in a statement that the low haul can be attributed to the pandemic, combined with a downward trend in county political party power. It’s also worth noting that second quarter fundraising this year by the two state parties and four legislative leadership committees also dropped by 36 percent.

RACIAL INEQUITY — “In two years, NJ wrote only one ‘racial impact statement’ to study criminal justice disparities,” by The Record’s Ashley Balcerzak: “Criminal justice bills in New Jersey are supposed to include a public analysis of how the legislation would affect communities of color, after former Gov. Chris Christie signed a bill creating what are known as ‘racial impact statements.’ But since the bill (S-677) went into effect two years ago, legislative staff members have crafted only one such analysis, for a proposed constitutional amendment legalizing marijuana that New Jerseyans will vote on this November. And that analysis — though distributed to lawmakers before they voted, according to the Senate Majority Office — is not posted online, as required. ‘Especially during this time, with the racial unrest we’re facing, we should definitely be taking advantage of these statements to make sure Black and Brown communities are at the center of our conversations,’ said Assemblyman Benjie Wimberly, D-Passaic, a sponsor of the bill.”

— “Black leaders call for an anti-racist state budget | Opinion.”

GUESS WHO’S BACK. BACK AGAIN. — Rhode Island added to tri-state quarantine order, Delaware removed, by POLITICO’s Nick Niedzwiadek: Travelers from 34 states will need to self-quarantine for two weeks upon arriving in New York, New Jersey or Connecticut after Rhode Island was added to the tri-state list on Tuesday and Delaware was dropped. Washington, D.C., was also removed from the quarantine advisory on Tuesday after being added last week. Puerto Rico was added last week and remains subject to the order. The list of affected states is updated weekly. Rhode Island’s addition is notable as it imposed a strict quarantine order against New York in March when the state was the epicenter of the coronavirus pandemic, creating a spat between two Democratic governors. The governors of New York, New Jersey and Connecticut have each imposed the quarantine order on travelers to their respective states.

PRIVATE SCHOOLS — “Millions in federal aid went to elite N.J. prep schools. Public districts couldn’t even apply,” by NJ Advance Media’s Riley Yates: “In New Jersey, 576 private, religious and charter schools were approved for Paycheck Protection Program loans, according to an NJ Advance Media analysis of data released last month by the Small Business Administration. That poured as much as $478 million into those schools as they dealt with unprecedented challenges as they closed their classrooms and shifted to online learning. But some of those PPP loans are not without controversy, as critics question whether it was appropriate to provide relief to prestigious and well-heeled schools like Dwight-Englewood, The Pingry School and The Hun School of Princeton when mom-and-pop businesses have been devastated over the past five months. In total, dozens of high-end private schools received money.”

— “8 more N.J. Catholic schools will close or merge as enrollment drops ‘dramatically’”

LAUNCHING TODAY: Governors have never mattered more to the future of the nation. They are making decisions that shape our everyday lives. Their policies may decide who lives and who dies. They must address a national reckoning on race. They need to help the country dig out of a recession their own public health policies created. The early months of the pandemic made national stars of some governors, boosting approval ratings to record highs. But the political capital they built up his perishable and the problems they’re facing mountainous. Their old agendas have become pleasant memories. “I didn’t run for governor thinking I was going to spend every day now for six months focused on the most basic thing of all, which is keeping people alive,” says Illinois Gov. J.B. Pritzker. These may be the best and worst of times for America’s state leaders.

The Fifty — a new series from POLITICO that examines the roles mayors and governors are playing amid pandemic, economic crisis and a national reckoning on race — launches today with a story that looks at how the men and women charged with leading each state are dealing with the moment. We also talked with Michigan Gov. Gretchen Whitmer about these issues in her state. The Fifty collects our best reporting on the governors and mayors shaping policy and driving politics and looks at the people and power players outside of Washington. See the page here: politico.com/fifty

UNEMPLOYMENT — “With $600-a-week benefit gone, millions face financial peril,” by NJ Spotlight’s Jon Hurdle: “Shaquaza Williams made ends meet with a lot of help from $600 a week in federal jobless benefits after losing her job as a trainee manager in a sports bar when the coronavirus pandemic hit in March. But now the payments have ended, her expenses exceed her income, and she doesn’t know what she will do. With the expiration of the federal money on Friday, Williams, a single mother of two from Paterson, is left with just $190 a week in state unemployment benefits, and that doesn’t match the approximately $200 a week that it costs for food, clothes, transportation and other items for herself and her children, 12 and 4. After being laid off, Williams was evicted from her apartment for nonpayment of rent. She first went to live with an elderly relative but that person became ill, so the family moved to a hotel, whose charges she was able to pay because by that time she was getting the $600 a week from the federal government.”

REST IN PEACE — Shirley Rice, the wife of Sen. Ron Rice, died suddenly this week. In his daily press briefing, Gov. Murphy said that the two met while she was working as an administrator at University of California, Berkeley “and the two were devoted to each other from that moment onward.” She later worked in New Jersey as the dean of Students at Essex County College, he said, “leaving a tremendous impact on the lives of countless students.”

HEARTBREAKING — “17 nuns from Sisters of Charity in Convent Station have died during coronavirus outbreak,” by The Record’s Terrence T. McDonald: “Sister Margaret Ellen’s death in Cedar Grove on Wednesday represented a grim milestone for the Sisters of Charity of St. Elizabeth. She was the 17th sister from the order to die since New Jersey’s coronavirus outbreak began in March. The Sisters of Charity does not say on its website that any of them died after contracting COVID-19, and their obituaries do not list causes of death. Most of them died in two long-term care centers, the types of facilities that have seen almost half of the state’s total COVID-19 deaths. The remaining three died in hospitals.”

HIGHER ED — Report: Majority of first-time college students in New Jersey attend school in-state, by POLITICO’s Carly Sitrin: A majority of first-time college students in New Jersey attend school in-state, according to a report released Tuesday, even though the Garden State continues to export more students than any other state. State officials say keeping students at home, particularly during the pandemic, will go a long way to helping the state in its economic recovery. “Covid-19 has made it more important than ever for New Jersey to nurture our home-grown student talent right here,” state Labor Commissioner Robert Asaro-Angelo said in a statement. “While the pandemic has shuttered many businesses, it has also created new workforce opportunities.” The report: The state, in partnership with the John J. Heldrich Center for Workforce Development at Rutgers University released the report on college student migration trends. According to the report, 64 percent of New Jersey‘s first-time degree-seeking students attend one of the state’s 19 community colleges or 26 four-year higher education institutions. In 2018 — the most recent year data was available — approximately 45,500 New Jersey high school students who graduated within the previous year remained in the state to pursue a college education. What’s more, those students stuck around after conferring their degree. According to the report, 70 percent of New Jersey college graduates worked in the state.